Economics

The number of vehicles is growing worldwide and as a result the number of tyres is increasing too. Hundreds of millions of tyres are discarded each year. The number of vehicles is growing worldwide and as a result the number of tyres is increasing too. Hundreds of...

There is a general consolidative tone in the capital markets as the week draws to a close.  The US retail sales report may offer a brief distraction, but it is unlikely to significantly shift expectations about the trajectory of Fed...

US LIBOR continues to rise.  LIBOR may not be what it was before the Great Financial Crisis, or before the scandalous revelations.  However, it remains an important benchmark.  Three-month LIBOR rose from around 25 bp before last December's Fed hike...

As the world’s largest emitter of greenhouse gases, China is under the spotlight in the global climate regime. In recent years, the country has become increasingly active in international climate negotiations, announcing ambitious mitigation goals. However, with its slowing economic...

In July, the much anticipated Permanent Court of Arbitration (PCA) decision on the South China Sea was delivered in favour of the Philippines. While Chinese propaganda machines were in full gear denouncing the ruling and the PCA, there is so...

The Eurozone finance ministers have accepted the EC's recommendation that Spain and Portugal not be fined for their fiscal excesses.  A few weeks ago, the EU Commissioner for Economic Affairs, Moscovici explained that punitive actions would strengthen anti-EU sentiment.  However,...

The robust US jobs report at the end of last week had arrested the down draft seen the previous week in response to the disappointing Q2 GDP report.  The mostly sideways movement has given way to a broader pullback today. ...

The Permanent Court of Arbitration’s (PCA) ruling in the South China Sea case filed by the Philippines has been labelled a ‘sweeping victory’ against China. It concluded that China has no legal basis to claim historic rights within the nine-dash...

After hesitating for several years, South Korea decided to let the US-made Terminal High Altitude Area Defence (THAAD) anti-missile system be deployed in North Gyeongsang Province. Seoul and Washington say the deployment is only targeted against North Korea, but the...

Former Fed Chair Bernanke keeps a blog at Brookings.  His latest post offers insight into how to think about Federal Reserve, and in particular, Fed officials' understanding of the US economy.  Former Fed Chair Bernanke keeps a blog at Brookings. ...

In an otherwise uneventful foreign exchange market, sterling's slide for its fifth consecutive session is the highlight.  It was pushed below $1.30 for the first time since July 12.  Initial resistance for the North American session is seen near $1.3020,...

Investors favor risk assets today.  Global stocks are moving higher in the wake of the pre-weekend US rally that saw the S&P 500 close at record levels.  Bond yields are mostly firmer, again with US move in response to the...

The drip-feed of high frequency economic data from the major economies slows in the week ahead. The data that is reported is unlikely to have much impact on the expectations of policy going forward. The state of play is fairly...

The Republican and Democratic National Conventions have confirmed that each presidential candidate has very different foreign policy outlooks. At the heart of each platform are different fears, threat perceptions and understandings of the United States’ place in the world —...

The market's angst over the underlying trend in the US labor market eases with the help of the second consecutive robust report.  The 255k rise in non-farm payrolls was well above expectations, and the details were mostly favorable. There were...