Markets Archives - Page 494 of 782

A Preview of the Emerging Markets

EM has started the week on a weak footing. The results of the Turkish elections knocked the lira down over 3% and the BIST down nearly 6%. More broadly speaking, the uncertainty surrounding the Greek situation along with the risk of another leg higher for yields in Germany and the US will keep EM assets on the defensive. On Wednesday, the Brazilian lower house votes on one of the elements of the fiscal adjustment, and any sign of backtracking there could hurt the government’s credibility.

China’s Economy Shows More Signs of Contraction

China’s imports fell for the seventh month, including a shortfall in exports. Experts expected a 10-percent fall in imports, but imports dropped 17.6 percent year-on-year.

Is Thailand’s Article 44 a Catch 22?

Thailand’s military-led government has invoked Article 44 of the interim constitution to replace martial law. The controversial article vests complete power and authority with Prime Minister General Prayut Chan-ocha in his capacity as head of the National Council for Peace and Order — Thailand’s junta that has governed through martial law for over 10 months so far. The replacement of martial law with Prayut’s absolute authority yields several immediate implications.

An Emerging Markets Status Update

1) Political risk is rising in Colombia, 2) Petrobras issued debt for the first time in six months, 3) The Russian central bank suspended some FX auctions, stepping up measures to counter RUB strength, 4) Tensions between Ukraine and Russia are escalating again, 5) Hungary’s central bank has changed its policy tools, 6) China took another important step towards interest rate liberalization, 7) In a highly unusual development, the Thai government started to argue for less central bank easing

Are Crash Theorists in the West Using China as a Scapegoat?

For a quarter of a century, China’s economic crash theory has been a lucrative cottage industry in the West. However, there is a reason why certain times favor the doomsayers. At the turn of the millennium, Gordon Chang’s The Coming Collapse of China (2001) exemplified the economic crash theory. In reality, that is when China became a member of the World Trade Organization and growth soared to double digits until the West’s financial crisis in 2008-09. Therefore, any investor who took the theory seriously lost big time.

Congo Economy Looks Poised to Undergo Growth Surge in 2015

According to data from the International Monetary Fund, the Democratic Republic of Congo’s economy could grow 9.2 percent in 2015. Congo’s growth is mainly attributed to copper and gold mining.

The government is more optimistic than data from the IMF, expecting the economy to grow 10.3 percent in 2015, and data from Moody’s suggests that Congo could undergo the second fastest growth rate in the world throughout 2015 and 2016, growing at around 10 percent. Congo is one of the wealthiest regions in Africa, containing gold, diamonds, zinc and other precious minerals.

You’ve Got to Have Faith (In the EU)

The media often depicts a European Union that is unraveling. The financial crisis, high unemployment, and demands for austerity for as far as the eye can see have undermined confident in the European project. Syriza and Podemos from the Left and the likes of the National Front and the Northern League on the right are squeezing the center in a pincer movement.

Close Ties between Australia and Japan are Good for the Region

Japan–Australia security ties are now stronger than ever. Both countries have a long history of cooperation in multilateral contexts such as peacekeeping missions or regional institution building but recently this has been strengthened to include more direct bilateral and trilateral defence cooperation, such as that with the United States. Since 2007, bilateral and trilateral military exercises have been conducted fairly regularly and they include combat operations, anti-submarine warfare and tactical manoeuvres.

Is Chinese Production Too Efficient for Global Economy?

China’s economy grew on the back of its impressive manufacturing capabilities. Just over a decade ago, as China sought ways to expand its economy, it turned to manufacturing and exporting, and the investment paid off. For years, Chinese economic growth has been among the best in the world, and China now has one of the most influential economies on the Planet thanks to its highly efficient production facilities, abundant human capital, and low price points for its finished goods.

Australia GDP Rises Despite Disinflation Woes

Australia saw GDP growth accelerated to a 0.9% rise in the first quarter of 2015, above expectations, although incomes have stagnated and economists fear the country is facing a disinflationary trend that is unfamiliar to the country.