Markets Archives - Page 417 of 782

Philippine’s Duterte needs to Spend Political Capital Wisely

The Philippines has concluded its elections with Rodrigo Duterte coming from out of nowhere only to gallop passed better-known political figures and snatch the presidency. Duterte was a long-serving mayor of Davao City and, except for a brief tenure as a member of the House of Representatives, has not been a national political figure. Unlike other candidates who have long cherished the job, Duterte didn’t appear to harbour presidential ambitions until only a few months before the national elections in May 2016.

India’s Middle East Policy 2.0

India has revamped its Middle East policy. Prime Minister Narendra Modi has laid the foundation for strategic interdependencies with the region by focusing on counterterrorism cooperation, deeper economic and security ties, and by engaging the large Indian diaspora.

Experts: Don’t Panic, it’s Just One Jobs Report

Editor’s note: The U.S. economy added a disappointing 38,000 jobs last month, the smallest number in more than five years, according to seasonally adjusted figures from the Bureau of Labor Statistics. The weak numbers suggest a June interest rate hike – which the Federal Reserve had recently hinted is possible – is now off the table. We asked two of our experts to give us their quick takes on the report.

We need a credible plan for the economy

Emerging Markets Pop off US Jobs Data, May not Last

EM ended the week on a firm note after the US jobs shocker. While we view the weak reading as a fluke, shifting market perceptions of Fed tightening risk should keep EM bid near-term. However, we think the July FOMC meeting is still very much alive. That and the upcoming Brexit vote are potential pitfalls for EM in the coming weeks.

U.S. Job Market Suffers a Disaster

A new report on the job market in America is being called a “disaster” by several economists, as weak job growth and discouraged workers contribute to a bleaker economic outlook.

Do Emerging Markets Have You Sea-Sick?

In the past year, investors have seen emerging markets thrive, plunge, re-emerge and re-decline. Despite the volatile short-term story, the fundamentals of the emerging market assets remain strong.

Last fall, the Wall Street Journal reported that rich nations were “losing emerging markets motor.” Reportedly, the woes of developing economies were ricocheting back to advanced ones and hurting their fragile recovery.

India’s Rajan Wants to Step Down; Brazilian Politicians are Forced Out

In the EM equity space, China (+4.1%), Brazil (+3.0%), and Hong Kong (+1.8%) have outperformed this week, while Poland (-2.6%), Russia (-2.1%), and Qatar (-1.9%) have underperformed. To put this in better context, MSCI EM rose 1.4% this week while MSCI DM fell -0.1%.

Cheers to Australia’s GDP

It is hard to find any bad news in the latest quarterly GDP result. GDP growth of 1.1% for the March quarter (0.9% trend) puts annual growth just over 3%.

The Federal Budget and subsequent Pre-election Economic and Fiscal Outlook (PEFO) forecast for 2.5% for the current fiscal year 2015-16 looks likely to be comfortably exceeded. The figures indicate that, for the moment at least, the economy is tracking at or above its potential.

Africa Union Strives for Political and Economic Integration

This year’s Africa Day message from African Union Commission chairperson Nkosazana Dlamini-Zuma affirms the organisation’s commitment to political and economic integration among member states. It cites the free movement of people, goods and services as among its flagship projects for 2016.

OBOR’s Success and the Link to the Chinese Diaspora

A multitude of views have coloured the understanding of China’s One Belt, One Road (OBOR) strategy. Some view OBOR through the lens of geopolitical competition and are wary of China’s rise. Yet, the OBOR vision has intrinsic value beyond fears of Chinese geopolitical ambitions. This is especially so in regards to people-to-people connections in which the Chinese diaspora are inexorably involved.