EM assets are starting the week off on a firmer footing. Sentiment has been helped by optimism over a Greek compromise, as well as perceptions of a less hawkish Fed. Both of these factors could turn negative very quickly. Besides the global backdrop, idiosyncratic risks within EM argue for continued differentiation by investors. We remain most optimistic on Asia as a region, while Latin America and EMEA remain most vulnerable in the current environment.
The Egyptian government recently took steps that have led to labeling football fans as terrorists. The arrest and detention of alleged members of the Ultras White Knights (UWK), a highly politicised supporters group associated with Cairo club Al Zamalek SC, has marked renewed attempts by the government to curb the influence of some fans on Egyptian society and politics.
Japan is coming under increasing scrutiny as the 70th anniversary of World War II approaches and Prime Minister Shinzo Abe moves to reform Japan’s defence policy. Recent concerns over hate speech and the right-wing nationalistic rhetoric of revisionist groups like Nippon Kaigi (Japan Conference), Sakura Channel, and Zaitokukai (The Association of Citizens against the Special Privileges of the Zainichi — that is, the resident Korean population) have led commentators to conclude that Japanese people are becoming more nationalistic. However, is this really the case?
1) The EU sanctions on Russia will be extended for another six months, 2) Lawmakers in Hong Kong voted down a Beijing-backed plan to change the political system, 3) Argentine presidential candidate Scioli of the ruling alliance has picked Zannini as his Vice Presidential candidate, 4) Malaysia‘s opposition alliance has collapsed, 5) Brazil’s corruption investigation is heating up again
Emerging from last year’s recession, many in the financial industry were curious about the Japanese government’s take on its own recovery programs. While these programs included a substantial stimulus package, they also included increases in sales tax and capital expenditures. However, based on a recent statement issued by the Bank of Japan, the nation apparently feels quite positive about its recovery progress; a fact signaled by its announcement of plans to maintain the Bank of Japan’s massive stimulus program.
Talk of the demise of Australian coal production is largely political, not economic.
The problem for the countries that presently mine and burn coal is that there are currently few low cost alternatives. Most countries in the world today are focused on trying to ensure their citizens have access to electrical power. This is difficult without low cost base load electricity production and at present, coal provides an affordable solution.
President Joko Widodo (popularly known as Jokowi) has affirmed giving special attention to the Papua region, comprising the two provinces of Papua and West Papua. The region has endured a low-level guerrilla insurgency from a militant Papuan independence movement since 1969. Under the nationalist Trisakti doctrine, the new policy will focus on bolstering greater security capabilities in the conflict-prone outermost areas of Indonesia, such as Papua.
Turkish President Recep Tayyip ErdoÄŸan received a rapturous reception in his early days in power, but a series of political errors has sullied his public image and undermined his power.
Since his Justice and Development Party (AKP) attained power in 2002, Recep Tayyip ErdoÄŸan has dominated Turkish politics. However, discontent about his erratic leadership is intensifying. There is a widespread perception that power has gone to his head and his political decisions are now more about aggrandizing his ego than doing the best for Turkey.
South Korea has been contending with an outbreak of Middle East Respiratory Syndrome (MERS) for several months. Economists fear the disease could harm the South Korean economy just as it has shown strong signs of recovery from the Global Recession of 2008.
Few know much about Sri Lanka beyond its prominent location on the map off the southeast coast of India. However, it may be time for more investors to take notice of this small, developing nation. In the first quarter of 2015, the Sri Lankan economy grew by 6.4 percent. This matches Q4 2014. Sector by sector, the economy has a few notable standouts, as well, with manufacturing up 6.5 percent and services up by 7.5 percent.
