The Bank of England has entered the EU referendum debate. Its report, along with comments from Governor Mark Carney, emphasise the benefits that membership of the EU brings the UK. Carney says membership makes the UK more dynamic, giving it greater potential for growth, and more resilient to shocks. However, he also warned of the need to safeguard the UK against further Eurozone integration.
Conservative Prime Minister Stephen Harper was voted out of office during October elections, including many Parliament officials. Liberal Party leader Justin Trudeau, a former teacher and seven-year Parliament member, was elected prime minister. Members of his party won 184 national seats, comprising a new majority in Parliament.
The haze enveloping Singapore since June 2015 highlights the significance of its bilateral relationship with Indonesia. Just as Singaporeans cannot escape the devastating health impact of ‘slash-and-burn’ deforestation in Sumatra, emerging trends in Indonesia will have an impact on Singapore.
The UK has rolled out the red carpet for Chinese president Xi Jinping on his five-day official visit. He gets the royal treatment, including a stay at Buckingham Palace, a ride in a state carriage along The Mall and several banquets. The trip will also include plenty of time with the British Prime Minister, David Cameron, who is keen to discuss the trade and investment that the UK hopes to secure from the visit.
Despite growing concern over America’s economic growth, above expectations housing starts and bullish forecasts for holiday retail sales indicate underlying strength in consumer demand.
In early 2015, Japanese companies, Panasonic and Toshiba, announced that they would stop producing television sets in China. As Japan continues to decrease its investment in China, the two multinational corporations’ partial exit seemed to underscore an overall trend of Japanese firms withdrawing from China. On 23 February 2015, Nikkei News reported that Citizen Watch Company had suddenly closed down its parts factory in Guangzhou, laying off all 1000 employees there.
Earlier this year, during the Prince Phillip knighthood debacle (dubbed #knightmare by Twitter) we speculated how Tony Abbott could make Malcolm Turnbull his treasurer, in place of the hapless Joe Hockey, and thereby save his prime ministership. Furthermore, we said if he did not, Malcolm Turnbull might go one better and take the top prize instead.
Africans have long engaged in capitalist economic transactions. However, the type of capitalism introduced by colonialists does not always align with the needs of Africans. It remains overly informed and driven by agendas set outside the continent.
Under President Xi Jinping, the Chinese Communist Party is using the Seven Prohibitions to shut down discussion about liberal constitutional reform. In comparison, constitutional deliberations in Vietnam appear open, vibrant and far-reaching — prompting some commentators to speculate on whether Vietnam is a model for post-socialist institutional reform. However, do all types of constitutional discourse translate into institutional reform or are some types of discourse more potent than others?
The week began subdued for EM, but selling pressures continue for the most part. The dollar is mixed against majors and with the decision about the timing of the first Fed hike still up in the air, it’s hard to see how investors will commit a lot of capital into year end. The softer tone in commodity prices is also not helping EM. Still, it seems like the panic sentiment towards EM has subsided, opening the door for more differentiation amongst markets and bottom picking in assets that have been aggressively sold.
