Emerging Markets Wait for FOMC Meeting

EM ended the week on a soft note, as the dollar reasserted broad-based strength against most currencies. The FOMC meeting this week could see the Fed push back against the market’s dovish take on policy, in which case EM would be likely to remain under pressure.

An Emerging Markets Status Update

The New York Times reported that the US is preparing to seize $1 bln in assets tied to 1MDB, S&P downgraded Turkey a notch to BB with a negative outlook, citing political uncertainty, Turkish President Erdogan declared a three-month state of emergency, The Nigerian Naira weakened above 300 per dollar for the first time, and Brazil’s central bank signaled a longer wait until it cuts rates

A New, Small Wave of Italian Migration to Australia is not Feeling Valued

Increasing numbers of young Italians are following in the footsteps of previous generations in migrating to Australia, but up to 40% report feeling exploited at work, and found it difficult to have their skills recognised, new research has found.

Any suggestion that there is a new exodus of Italians to Australia is probably overblown. In broad terms, the Italian share of the Australian Temporary visa program between 2004 and 2015 was a very small 1.5% of the national total.

Taking Steps Toward Inclusive Growth in Asia

Asia’s successful economic performance has lifted millions out of poverty. Because the region’s high population countries such as China, India and Indonesia grew particularly fast, poverty declined substantially for the region as a whole. Nineteen out of 33 economies more than halved their extreme poverty rate in the same period.

The EU Poverty Bar is Moving Higher

Brexit caps off a turbulent decade for the EU. Many in the Eurozone will be hoping that it does not cause further economic turmoil, as it is becoming increasingly clear that the financial crisis of 2008-09 led to a substantial increase in poverty across the continent.

Not only did poverty intensify within those nations that were hardest hit during the crisis and required bailouts, but there has also been a dramatic change in the geography and types of poverty in Europe over the last decade.

We're Japan, and We're Here to Help

Foreign aid is a key instrument of international engagement in Japan’s foreign policy toolkit. Although Tokyo is no longer the world’s top aid donor that it once was in the 1990s, it still was the world’s number four aid donor in 2015 with close to a US$10 billion annual budget.

It is not just the size of the aid budget that has changed. So has Tokyo’s thinking behind foreign aid.

Making Sure All Indians Participate in Economic Growth

India is set to become the world’s fastest-growing major economy this year. However, as the nation of 1.2 billion grapples with how to achieve rapid and sustainable economic growth, it must also ensure that such growth is inclusive — a task that will require much-needed reform.

Australian Poverty Drops, but Income Stagnates

Poverty in Australia has declined, welfare reliance has stabilised and long-term poverty is becoming rare - but overall economic wellbeing is no longer improving, and households’ wealth has remained static, despite rising property prices, according to Australia’s most respected longitudinal study of economic wellbeing.

And there is a rapidly growing wealth divide between generations, with median wealth increasing by 61% among people aged 65 and over, compared to just 3.2% among people aged 25 to 34, since 2001.