Manufacturing Crashes to Crisis-Level Lows
Manufacturing in the United States has turned significantly weaker, hitting its lowest point since 2009. In May, manufacturing activity fell because of weak new order growth and poor inventories.
Category: Markets
OECD Tells Canada to Cool Off Housing Markets
The Organization for Economic Cooperation and Development (OECD) fears that Canadian home sales may be ramping up to a bubble. According to the OECD, the Canadian government needs to cool off the overheating housing markets in Toronto and Vancouver.
Otherwise, external economic hardships coupled with favorable buying conditions could cause real estate prices to increase disproportionately, create a bubble, and then devastate the Canadian economy when it bursts.
BRICS Need to Act Their Age
The rise of non-Western emerging powers like Brazil, Russia, India and China is a reality that has shaped South Africa’s foreign policy under President Jacob Zuma.
Foreign policy under Zuma has been characterised by his country’s growing closeness with these four countries. The leaders of these countries meet more often than they did in the past. This is the case in the context of their bilateral relationships as well as part of the Brazil, Russia, India, China, South Africa (BRICS) grouping.
No Brexit Vote for You
A decision by judges in the Supreme Court has finally put an end to the legal challenge of two British citizens claiming to be unfairly excluded from voting in the EU referendum. They were campaigning against the law , which disenfranchises people who have lived outside the UK for 15 years or more.
A New Cultural Revolution is Out, and so is Liberal Democracy
This month marks 50 years since the official beginning of China’s Great Proletarian Cultural Revolution. On 16 May 1966, the Central Committee of the Chinese Communist Party issued an internal circular denouncing ‘revisionists’ in the Party leadership. Prepared by Chairman Mao Zedong, the circular was a warning to Party cadres not to challenge his leadership.
June Interest Rate Preview: Uncertainty Mounts
Investors are reconsidering earlier expectations that the Federal Reserve will increase interest rates in June. After several speeches from regional Fed presidents strongly suggesting a rate hike was imminent, Federal Reserve president Janet Yellen struck a more conservative tone late last week, hinting that the Fed might wait a little longer before raising interest rates.
Emerging Markets Vulnerable to FOMC, UK Referendum Outcomes
EM ended last week on a soft note. The icing on the cake was Yellen’s speech Friday afternoon, which confirmed the more hawkish stance seen in the FOMC minutes and other recent official comments. We warn that with the FOMC meeting and Brexit vote next month, markets are likely to remain volatile and that risk assets (such as EM) are the most vulnerable.
More Warnings on Britain Exiting the EU
More experts are weighing in on Britain’s upcoming referendum on its membership in the EU. A flurry of warnings from bankers, economists, politicians, and experts have bombarded Brits in recent months, with daily discussions at the BBC, The Times, the Telegraph, and other major British publications urging British citizens to vote to remain in the EU.
Treasurer vs. Shadow Treasurer: Fight!
While watching the debate between the Treasurer Scott Morrison and Shadow Treasurer Chris Bowen today at the National Press Club one would not find much in the way of new information, compared to what has been outlined during the budget and debated in the course of the subsequent election campaign.
Meanwhile, one would wonder if the two contenders for the top economic management job in Australia live in the same country.
Fixing Sri Lanka’s Mess
Sri Lanka’s balance of payments is in dire straits. The country’s mounting foreign and domestic public debt, a huge fiscal deficit and a severe foreign exchange shortfall have led to potentially calamitous economic circumstances. Sri Lanka has not yet secured the means to meet its upcoming foreign loan repayments — US$4.5 billion is due over the next year, to be followed by another US$4 billion in the subsequent year.
