Markets Archives - Page 547 of 782

Japanese Economy Hit by Higher Taxes and a Pitiful America

Recently published statistics have shown that Japan suffered a decline in its exports during August of this year. Shipments to the United States began to contract, adding to existing concerns surrounding their economy. Japan has been worried about potentially pitiful growth taking place in the third quarter of 2014, after suffering a deep drop throughout April-June.

Well, what do you expect when you have high taxes and a socialized health care program?

Jobless Claims Fall to Lowest Level Since 2000

Surprising economists and investors who expected deflation and constrained growth from falling oil prices, unemployment claims cratered to their lowest level in nearly a generation.

Unemployment claims fell to 264,000, down 8% from the prior week’s level, which remained unrevised. The Department of Labor reported that unemployment claims fell far below expectations, bringing the four-week average of unemployment claims to 283,500, the lowest level since June 2000.

An Update on the Emerging Markets

1) OPEC members have started a price war even as their oil output climbed to the highest level in over a year

2) Recent inflation data out of India came as a much welcomed relief, and a fuel subsidy reduction is in sight

3) Bank of Korea cut rates again, negating their forward guidance of a “one and done” move back in August

4) The ruling party in Hungary, Fidesz, scored another resounding victory

5) The Russian central bank announced a $50 bln repo agreement running through 2016 to help support the ruble, even as continues to lose ground

U.S. Economic Suspicions are Proving Correct

The market is a fickle mistress. At the end of September, and at the start of this month, we pushed against the hawkish read of the Fed’s dot-plots. We resisted talk of a Fed hike in Q1 15. We explained that the Fed’s policy signal emanates from the Troika of leaders, Yellen, Fischer and Dudley. We warned that the US economy had lost some momentum at the end of Q3 and into Q4. We had wrongly anticipated a softer employment report, but our larger economic suspicions are proving correct.

Vietnam Middle Income Trap Could Happen with a FDI-based Economy

The Vietnamese economy has experienced a downturn in growth since 2008. In the past five years, the growth averaged about 5.5 per cent a year and is not expected to be much higher in the coming years. For a country of per capita income of about US$2000, that rate of growth is low. Increasing the rate of growth to somewhere in the vicinity of 8 per cent a year is imperative if Vietnam is to avoid the so-called middle income trap.

Thailand’s Poor Exports Point to Economic Issues

Recently, exports in Thailand fell by their largest amount since the flooding of 2011 paralyzed the economy. Exports, which equal over 60% of the Thai economy, dropped approximately 7.4% from a year earlier in comparison to a forecast of a 3.6% decline. During the summer of this year, shipments dropped around 0.85%, and the recent data has shown that Thailand’s essential exports are not bringing in the growth the area needs. At the same time, consumption remains weak, leaving many economists to wonder how growth will be generated.

China is Coming Out on Top in the Global Economy

Economic Overview

China is the second largest Asian country and for some time now, boasts the world’s second largest economy, which has grown rapidly since the government reforms in 1978. China is one of the biggest exporters and importers of manufactured goods, and is a major player in global financial investment. Agriculture continues to be a major force on the country’s economy, with China leading the world in the production of rice, soybeans, tea, and cotton.

Economic costs of Ebola rising as people shun human contact

The World Bank says the disease’s economic cost could be US$32 billion over two years, with the mining sectors badly hit. But many of the most damaging effects are on a microcosmic scale as citizens in Liberia, Sierra Leone and Guinea, shun their families, friends and communities.

Is the ASEAN Economic Community Making Enough Progress?

Launched as a political bloc and security pact in the aftermath of the Vietnam War, ASEAN has evolved to embrace an ambitious economic agenda. Its latest project is to establish the ASEAN Economic Community (AEC) by 31 December 2015. But is this likely? The blueprint for achieving the goal envisages the AEC standing on four pillars and meeting the deadline depends on progress on each of them.

Indonesia’s Jokowi Could be Plagued by the Red and White Coalition

Many commentators assumed following Indonesia’s 9 July presidential election that members of defeated candidate Prabowo Subianto’s six-party ‘Red and White’ coalition would not want to be locked out of government and would seek to realign themselves with president-elect Joko Widodo (‘Jokowi’). Nearly three months later, however, the losing coalition remains remarkably intact and Jokowi’s Indonesian Democratic Party of Struggle (PDI-P), which hasn’t governed nationally since 2004, has been quiet in the political horse-trading.