Emerging Markets Status Update
Over the last week, Hungary (+2.1%), Mexico (+1.9%), and Malaysia (+1.9%) have outperformed in the EM equity space as measured by MSCI, while Russia (-2.1%), Colombia (-1.9%), and Turkey (-1.2%) have underperformed. To put this in better context, MSCI EM...
The Complexities of Law over China’s Nine-Dash Line
Suggestions that China could claim historic fishing rights within the nine-dash line misinterpret international law. While Sourabh Gupta’s arguments, outlined in a recent Forum article, relating to the UN Convention on the Law of the Sea (UNCLOS) Articles 62 and...
Trading Latency to Stop a ‘Flash Crash’
Ask people on the street what mental image they associate with the words “stock exchange,” and you’ll likely hear about a large imposing building in the middle of New York or Chicago. Inside the building there is a huge space...
Malaysian Inequality Pits Official Figures Against Public Perception
Is inequality in Malaysia going up or down? Answers differ. Official statistics unambiguously show household income inequality going down in the past decade, but almost everyone seems to think it has gone up. So what’s going on? Is inequality in...
China’s Banking Industry and Associated Risks
Banking activity is growing rapidly in China’s $30tn banking system and even though the country faces a sluggish economy, its banking system consists of some of the largest banks of the world. The combined value of Industrial and Commercial Bank...
Is this a U.S. Economic ‘Deflategate’?
US prices are falling. The 0.7% decline in US consumer prices was the largest monthly drop since December 2008. Consumer prices in January fell 0.1% from a year ago. The last time the year-over-year CPI was negative was when the...
The Pilot Free Trade Zone Should Assist China’s Transition to Slower Growth
Since September 2013, China has been operating a new form of free trade zone (FTZ) based in a small area of Shanghai, called the China (Shanghai) Pilot Free Trade Zone (SPFTZ). Only 28 square kilometres in area, the SPFTZ is...
The BJP’s Declining Political Fortune
The tale of the recent February Delhi assembly elections shows how quickly political fortunes can decline. Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) recorded a landslide victory at the 2014 national elections and won a majority of seats in...
Can Modi’s Plan for India Survive Past the Post-Election Honeymoon Period?
When India opted for constitutional democracy in 1947, few gave it much of a chance. India’s diversity was overwhelming and it was home to some of the world’s poorest. But India’s democracy has succeeded beyond the expectations of even the...
Japan’s Inward FDI is Extremely Low Among Developed Nations
Japan’s inward foreign direct investment (FDI) is extremely low in comparison with that of other developed countries and even its Asian neighbours. Japan’s inward foreign direct investment (FDI) is extremely low in comparison with that of other developed countries and...
Does Australia Have to Choose Between China and the U.S.?
Will it be China or the US? One is Australia’s largest trading partner, the other its traditional security ally. But what happens if Australia is forced to choose between them — will economics or history win out?Malcolm Fraser, the former...
Indonesia’s Poverty Reduction Strides During Decentralization were Offset by Rising Inequality
How effective was Indonesia in addressing poverty and inequality in the decentralisation period?In the first decade of the decentralisation period, from 2001–10, Indonesia’s GDP grew at an average annual rate of only 5.4 percent. This was significantly slower than during...
A Heavy Economic Data Week in the Emerging Markets
With some of the big near-term uncertainties gradually being cleared up (Greece and Ukraine), we think EM assets could get some traction this week. That said, EM FX will remain vulnerable and liable to selloffs should the dollar bullish-trend resume...
Jokowi’s High Risk, High Reward Strategy for Indonesia
No more ‘business-as-usual’ is the Jokowi government’s message in the 2015 budget. Cut fuel subsidies, ramped up infrastructure spending, and rising revenues. These three steps deliver a 1.9 percent fiscal deficit, down from 2.2 percent in 2014. This leaves space...
Asian Pop Culture Captures Vietnam’s Heart
An endless line of water that starts from a shallow stream, grows into a big river, and then flows into the ocean. That’s how Vietnam’s former deputy prime minister, Vu Khoan, described the progress made by Vietnam and South Korea...