Economics

There are two events this week that will shape the investment climate potentially for the rest of the year.  The first is the Bank of England meeting. The following day is the US employment report.  There are two events this...

The US dollar is mostly firmer, with the dollar-bloc under-performing.  Month-end flows appear to be favoring the euro though the Swiss franc is also firmer.  While the dollar is within yesterday's ranges against the euro and yen, it is firmer...

American economic growth rose at a 2.3% annual rate in the second quarter of 2015, far below expectations. Economists had expected a 2.9% increase, with strength from resurgent consumption leading the growth. While personal consumption expenditures (PCE) did post a...

After 10 years of negotiations and the official signing in June 2015, the Australia–China free trade agreement (FTA) still is not a done deal. A coalition of Australian trade unions is seeking to ‘stop the China FTA’ at the final...

The ASEAN Economic Community (AEC) is set to arrive at the end of 2015. It is a significant step forward and could be a crucial turning point for ASEAN. However, without a strong central authority and mandate, ASEAN integration will...

The ECB's Economic Bulletin neatly summarizes some interesting trends in Eurozone trade patterns.   There are four main points. First, through the early 2000s, most of the trade was between EMU countries.  Since then, however, trade outside of EMU has increased,...

In a world with an increasing focus on the importance of environmental protection, many nations have acknowledged the need to link economic and economic reform measures. Unfortunately, according to the Organization of Economic Cooperation and Development (OECD), most countries still...

The US dollar is broadly firmer in the wake of the FOMC statement, but there are some notable exceptions. The market appears reluctant to sell sterling ahead of next week's MPC meeting, where hawkish dissents are likely.  There will also...

The Federal Reserve provided limited forward guidance in today's statement.  It said that it "anticipates that it will be appropriate to raise the target range for the Fed funds rate when it has seen some further improvement in the labor...

If you like to take long walks in Shanghai, this may have been the first summer when you detected something new in the air: the scent of marijuana. It is a sad experience that leaves one apprehensive. Rising threat The...

Representatives from 12 nations in the Americas and the Asia-Pacific region are meeting in Hawaii this week to finalize negotiations for the Trans-Pacific Partnership (TPP). If all goes to plan, they may reach a deal by Friday. Many consider the proposed...

While the markets wait for no man, the FOMC is a different story.  Janet Yellen expects to lead the Federal Reserve into taking the first step toward normalizing monetary policy in the coming months.  Although the statement she crafts is...

The US dollar is mixed.  It is recouping some of yesterday's losses against the euro and yen but it is heavier against the other major currencies.  Short covering in the dollar-bloc that began yesterday extends, and the 0.7% preliminary increase...

The Bank of Japan is engaged in the most aggressive asset purchases, and yet it has largely failed to lift inflation.  National consumer prices for June will report at the end of this week.  The headline rate expects to fall...

The largest hurdle for the 12-member Trans-Pacific Partnership (TPP) agreement — the US president’s ability to get Trade Promotion Authority, or fast track — is now clear. Many people think that the TPP can wrap up in a few months....