A Review of the Emerging Markets
1) Indonesia’s recently elected President Jokowi is facing his first major popular challenge2) Turkey raised the daily dollar auction amount from $20 mln to $40 mln3) There are signs of some growing concern over currency weakness in Mexico 4) Brazil...
Hong Kong, Macao, and Taiwan Should Address Structural Reforms
The old growth engines of Hong Kong, Macao and Taiwan are decelerating. The new ones are predicated on deeper economic ties with China.Recently, the governing Kuomintang suffered a landslide defeat in local elections in Taiwan, China; the worst electoral setback...
A 2014 Health Report on BRICS
In 2001, the term BRIC was coined by Jim O'Neill, formerly with Goldman Sachs, who had used the acronym in his thesis on emerging markets of Brazil, Russia, India and China. With inclusion of South Africa in 2010, BRICS was...
Calls for Abe to Raise Japan’s Consumption Tax
Japan’s Prime Minister Shinzo Abe dissolved the lower house of the Diet on 21 November and called a snap general election on 14 December. At the same time, Abe announced that he would postpone the second hike of the consumption...
Joko Widodo’s Great Opportunity for Indonesian Economic Policy Reform
Economic performance in post-Suharto Indonesia has been inferior to that achieved during the previous three decades, with economic growth slower and income inequality increasing. With the recent election of a new president, now is a good time to focus on...
Will Japan Seize a Demographic Opportunity?
Japan is ageing; shrinking population will cause serious problems for the country throughout the 21st century. Although the fertility rate has recovered to 1.39, this is still very low by international standards. Current official projections estimate that Japan’s present population...
U.S. Policy Supports Freedom of Navigation in the South China Sea
The South China Sea is not the central strategic element in the overall US–China relationship. It was clearly not a centrepiece of the November 2014 Obama–Xi summit in Beijing. Climate change, North Korea, Iran, Taiwan, trade, intellectual property theft and...
Prime Minister Narenda Modi’s Diplomatic Path within India
India’s Prime Minister Narendra Modi is seeking new ways to enhance India’s global diplomacy. Modi is pursuing two paths largely overlooked by analysts of India’s foreign policy: to connect with the Indian diaspora and to encourage links with subnational governments...
This Week in the Emerging Markets
Falling commodity prices and better US economic data are the biggest macro drivers for EM, overriding just about all idiosyncratic variables – perhaps with the exception of the weaker yen for Korea. We note that aside from the huge fall...
Some Things to Think About in the Coming Week
Developments in the week ahead will be understood within the context of last week's developments. The most important of these are the strength of the US jobs report and cuts in growth and inflation forecasts by the European Central Bank...
The Dollar, ECB, Yen, and Oil Remain Firmly Entrenched in the News
The US dollar changed little against most of the major currencies but is taking another step up against the yen. The failure of the Democrat Party of Japan to mount a serious challenge to Abe, despite the quite divided public...
An Emerging Markets Review
1) Some EM policymakers are becoming more worried about weak currencies 2) The PBOC failed to drain liquidity for the past three sessions, fueling speculation of a cut in reserve requirements 3) The Reserve Bank of India keep rates unchanged, but indicated...
India’s Bilateral Investment Treaties Leave Room for Abuse
In December 2013, despite an ongoing official review of its existing agreements, the Indian government signed a bilateral investment treaty (BIT) with the United Arab Emirates. Information on the deal was recently made public by the Ministry of Finance after...
Expectations Met by ECB Inaction
The ECB has not announced any new initiative. It stands ready to do more next year, but there was no specific mention of sovereign bond purchases. There was no tweaking of the second TLTRO which will launched next week. ...
Key EU Members’ View of the European Economic Crisis
Europe's economic crisis is slowly but steadily eroding the political systems of many countries on the Continent. New actors are emerging and threatening the supremacy of the traditional players. Alliances and events that seemed impossible only a few years ago...