Markets Archives - Page 480 of 782

Measuring the Gig Economy Down Under

When policy think tank the American Action Forum tried to put a number on the gig economy last month, it triggered considerable debate on just how much the sector is really contributing to jobs growth.

Workers in the “gig economy” are employed on a particular task or for a defined time, with little connection to their employer. Indeed, the concept of “employer” has little meaning to these workers since they are better regarded as self-employed selling a service in much the same way as a greengrocer sells apples.

Australia’s Yuan Worries

The decline in the yuan is not very large, and the way in which it happened is not very nefarious. The Chinese central bank normally intervenes heavily in the currency market and they have historically kept it closely linked to the US dollar while smoothing out day-to-day fluctuations.

‘Made in America’s’ Resonance in China

News that the People’s Bank of China, the country’s central bank, changed its formula for calculating the reference rate of the yuan (RMB) prompted the currency to fall to a four-year low.

An Emerging Markets Status Update

1) China has changed its FX regime, 2) No coalition likely for Turkey; elections in sight, 3) Moody’s downgraded Brazil one notch to Baa3, but did not assign a negative outlook, 4) Baxico sounded a bit more hawkish, at least cosmetically, 5) Markets have welcomed the cabinet reshuffle in Indonesia, 6) Vietnam widened its currency trading band after China’s devaluation, 7) China’s devaluation reduced the value of Argentina’s FX reserves

Does China’s Economic Engine Continue to Slow?

After many decades of driving regional growth, the economy of the People’s Republic of China (PRC) is now slowing down, and this is likely going to have a noticeable effect on the world economy and especially globally integrated economies in developing Asia.

On the other hand, countries like India, which is less integrated in the global economy for the moment, will likely remain insulated from the slowdown.

Malaysian Economy Grows at Slowest Pace in Two Years

According to government data, Malaysia’s economy expanded at a slow rate of 4.9 percent in the second quarter, amid such factors as political instability and a stagnant currency, according to AFP. The country has also suffered from drops in exports and private consumption.

The world economy has not been kind to Malaysia, especially when it comes to the issue of lower oil prices. The Southeast Asian country relies a great deal on energy exports to maintain a prosperous economy, but the nation’s devalued currency has hit exports across the board.

Stuck in the Middle with You – and Indonesia

Indonesia became a middle-income country in 2004. Indonesia’s growth rates — while superior to those of most developing countries — remain below those of East Asia’s most dynamic economies. So why hasn’t the country grown faster still and why does growth appear slower in the democratic era than that of Suharto?

Emerging Economies Winter Olympic Hurdles

Recently, the International Olympic Committee (IOC) awarded the 2022 Winter Games to Beijing, in a joint bid with the city of Zhangjiakou, the capital’s “northern door” adjoining mountains with ski resorts.

In the West, the response has been apprehensive, presumably because of concerns about cost and environment.

“Plug-and-play” Olympics

China Devaluates the Yuan with Multiple Effects

Chinese officials surprised the market by instituting a mini-devaluation of the yuan. Announcing the highest dollar fix in two years signaled the 1.9% move. Officials indicated that this was a one-off move in response to the appreciation of the real exchange rate. At the same time, it injected CNY50 bln through a seven-day repo operation, which offset part of the CNY85 bln of maturing repo and bills.

Africa’s Population is Expected to Double by 2050, and They Will Need to Eat

The main drivers of demand for agricultural products are population growth, urbanisation, economic growth and changing diets.

Population growth brings greater demand, urbanisation leads to more people buying food rather than producing their own, economic growth increases purchasing power while changing diets implies that people are opting for diverse, and sometimes healthier, consumption.