Markets Archives - Page 522 of 782

U.S. Economy Worsens Before GDP Report

The Federal Reserve is seeing worsening economic conditions in the United States shortly before the government releases its latest report on the country’s GDP.

The Dallas Federal Reserve announced a decline in manufacturing activity and a lower outlook for economic growth in Texas, with general business activity hitting negative territory for the first time in almost two years. That index fell to -4.4 in January, down 7.9 points from the prior month and 9.4 points year-over-year.

Well-healed Meet and Discuss Well-being in Davos

Last week, the 0.1% met at World Economic Forum annual gathering in the Swiss mountain resort of Davos. While the official excuse to go there is to discuss and shape the global agenda – the theme dominating this year being inequality – we know that it is more about networking, socialising, fine dining and, new for this year, a chance to improve your wellbeing.

Chinese SOE Reform has Attracted a lot of Attention

The further reform of China’s state-owned enterprises has attracted a lot of attention and triggered debate since it was discussed last year at the third plenary session of the Chinese Communist Party’s 18th Central Committee (the Third Plenum). Three areas need to be addressed if reforms are to be meaningful and comprehensive: reforming the property rights system of SOEs by developing a ‘mixed ownership economy’; shifting from managing state assets to managing state capital; and promoting a modern corporate system.

Japan’s Allies Have Big Bets on Shinzo Abe’s Success

After a decisive election victory on 14 December, Japanese Prime Minister Shinzo Abe would seem to be in an extremely sweet spot to deliver on both his main domestic and international policy agendas.

Can Japan’s LDP depend on Komeito’s Cooperation?

Shinzo Abe’s second term as prime minister of Japan, unlike his first, was a modest success through till 2014. But he will have to bring real and tangible outcomes for Japan and the Japanese economy if it is to succeed the third time round.

A Preview of the Emerging Markets

Emerging markets seem to be on a slightly better footing after a few turbulent weeks. Many EM currencies were able to appreciate against the dollar in the wake of the ECB’s QE announcement, despite most major currencies depreciating. Meanwhile, EM fixed income markets were able to benefit from the trend lower in yields and equity markets were buoyed by the global rally and the stabilization in energy markets. We doubt that weakness in EM is entirely behind us, but it appears as if we are entering into a stage of greater differentiation.

Has the Australian Dollar Depreciated Enough to Positively Impact GDP?

The Australian dollar depreciated significantly in the second half of 2014, losing around 14 percent of its value against the US dollar and almost as much against the Chinese renminbi. Nevertheless, the Australian dollar needs to devalue by a further 15 percent in the coming years if the Australian economy is to continue operating at close to full employment.

Emerging Markets Status Update: Central Bank Surprises

Over the last week, Hungary (+8.8%), Russia (+7.2%), and Chile (+5.7%) have outperformed in the EM equity space as measured by MSCI, while the Philippines (-0.9%), Czech Republic (-0.6%), and UAE (-0.1%) have underperformed. To put this in better context, MSCI EM rose 3.6% over the past week while MSCI DM rose 2.2%.

The Philippines Appears Poised Economic Growth in 2015

The economy of the Philippines hit some rough patches in 2014. The outlook for 2015, on the other hand, is fairly strong.

The Dynamics of a Slower Growth China

The Chinese economy is widely perceived to have entered a ‘new normal’ — annual GDP growth has slowed to between 7 percent and 7.5 percent from the double-digit levels of previous years. This was something that policymakers expected: an inevitable result of economic restructuring.