Markets Archives - Page 426 of 724

South Korea Economy Slows amid Drought and MERS

South Korea quarterly growth slowed to its lowest level in over two years, partly due to MERS, otherwise known as Middle East Respiratory Syndrome, and a severe drought that affected the nation’s agriculture sector, according to the Associated Press. The virus has so far killed 36 people since May. Service spending and private consumption also fell, which are both attributed to the MERS crisis. Aside from Saudi Arabia, South Korea has suffered from the second largest MERS outbreak.

China Presses Vietnam with Oilrig Redeployment

The redeployment of a Chinese oilrig in the South China Sea (SCS) shows an inconsistency in the rhetoric and practice of China’s policy in the disputed waters. Together with its mass land reclamation activities, these actions are part and parcel of coercive diplomacy. It affirms China’s territorial ambition in the highly strategic sea. But is it likely to escalate into regional conflict?

The Forgotten Montagnard, Degar, and Other Minorities of Vietnam

Twenty years after the post–war normalisation of Vietnam–US ties, the two nations are increasingly close. This process has sped up with China’s moves in the South China Sea since 2014, although a number of issues still hold the relationship back: Vietnam wants the embargo on weapons sales gone and the United States wants to see an improvement in human rights.

Confounding Decisions on Combatting Climate Change by the UK Government

The new Conservative government is letting slip its commitments to renewable energy and climate change mitigation. The bad decisions keep coming, and do not add up to a policy strategy consistent with the UK’s emissions and efficiency targets, and more generally with fighting climate change.

Analyzing China’s Cloaked Currency Reserves

China has amassed one of the largest pools of capital. It was in the form of central bank reserves. At its peak, it was around $4 trillion. The composition of these reserves is a closely guarded secret. However, if the yuan is going to be including the IMF’s SDR, it is anticipated that China report will have to report the currency allocation of its reserves. China would not necessarily publish these though IMF would include them in its aggregations process that it publishes quarterly.

China’s Government Proves it Cannot Defy Market Forces

The economic progress of China over the past 40 years or so has been remarkable. Part of that success has been due to the role that the state has played in creating a stable, long run environment for business to grow and flourish, able to take advantage of the globalisation of economic activity.

The Chinese government has just seen confirmation that it is far harder to marshal the competing forces in financial markets.

The Debt-Deflation Trap Facing China

At a time of slowing economic growth and massive corporate debts, a deflationary spiral would be China’s worst nightmare. In addition, the risk is mounting. The producer price index (PPI) has been in negative territory for 39 consecutive months, since February 2012.

The growth of China’s consumer price index (CPI), though still positive, has also been falling steadily, from 6.5 percent in July 2011 to 1.2 percent in May 2015. If experience is any indication, China’s CPI will turn negative very soon.

Can Malaysia’s Najib Razak Survive the Allegations Against Him?

Malaysian Prime Minister and Finance Minister Najib Razak face explosive allegations of embezzlement, corruption, and electoral manipulation that go to the very core of his leadership and the legitimacy of his government. United Malays National Organisation (UMNO), Najib’s political party, and Malaysia itself have been plunged into yet another crisis.

How SOE Reform in China can Lead to Greater ODI

The rapid rise of China’s outbound direct investment (ODI) in the past decade is a significant economic phenomenon — one met with a lot of resistance in some destination countries, particularly due to the abundance of state-owned enterprises (SOEs). However, despite concerns over SOEs’ motivations and political connections, the recent round of SOE reform brings good prospects for further Chinese ODI.

China’s Fight Against Illicit Drugs Needs a Good Closer

On the International Day Against Drug Abuse and Illicit Trafficking, Chinese President Xi Jinping announced that the Communist Party and the Chinese people would stand firm and defeat illicit drug use through a ‘people’s war’. Xi, not shy about hyperbole, stressed that thousands of generations in China would benefit from a zero-tolerance drug policy. Disappointingly, although Xi frequently advocates for fair adjudication of all cases, he failed to mention how — or whether — due process will figure in China’s war on drugs.