Markets

Since the mid-2000s, Chinese corporate debt has risen sharply as a proportion of GDP — from around 100 percent to 164 percent in 2015. By comparison, this ratio is 67 percent in the United States and 103 percent in Japan....

Americans have a saying about an 800-pound gorilla in a room.  It refers to a person or organization so powerful that it can act unilaterally.  The British have an expression about an elephant in a room.  It refers to a...

The 1Malaysia Development Berhad (1MDB) scandal in Malaysia, which has recently become the subject of a high-profile lawsuit by the United States Department of Justice’s asset recovery initiative, highlights the problems with state-ownership in the Malaysian economy. To prevent such...

The Japanese government is delivering the other half of its fiscal policy today.  Earlier, Abe decided to postpone the sales tax hike for the second time.  Today, the cabinet approved a JPY28 trillion (5.6%) of GDP package. The Japanese government...

Assuming no surprises in the second half of the year, China’s growth in 2016 will remain near the target of 6.5 percent reflecting structural transition in the mainland, secular stagnation in the West and post-Brexit tensions globally. In mid-July, China’s...

Women in Japan voted and stood for office for the first time on 10 April 1946. It was the country’s first postwar election and the first election after the Japanese government amended the Electoral Law to include women. Of the...

China has had remarkable success in alleviating poverty. According to World Bank statistics, over the past several decades China has accounted for more than 70 percent of reductions in global poverty. The poverty-stricken population in China has plunged from 770...

Vietnam has transformed from one of the world’s poorest countries to a lower middle-income economy in just 25 years. Beginning in 1986, Vietnam undertook key structural reforms in various areas, including state-owned enterprise (SOE) reform, private sector development, financial reform,...

EM ended last week on a firm note, helped by the weaker than expected US Q2 GDP report as well as the small bounce in oil.  With the RBA and BOE expected to ease this week, the global liquidity backdrop...

In the EM equity space as measured by MSCI, Turkey (+4.8%), India (+1.4%), and Qatar (+1.3%) have outperformed this week, while Colombia (-6.4%), Mexico (-3.2%), and Singapore (-2.9%) have underperformed.  To put this in better context, MSCI EM rose 0.6%...

What will happen now that the rains have come to many parched beef lands of Queensland? Current high cattle prices and renewed pastures suggest optimism, even good times. Perhaps record exports from the world’s largest beef exporter? If only if...

In the past few weeks, protesters brought Beitbridge, the busiest inland border post in sub-Saharan Africa, to a standstill for several hours. The main concern was the banning of some goods from entering Zimbabwe. In the past few weeks, protesters brought Beitbridge, the busiest inland...

The failed July 15 coup in Turkey has prompted a tsunami of responses by the government that is likely to have a lasting impact on all aspects of politics and society, including the economy. The failed July 15 coup in...

Last week the US Department of Justice (DoJ) announced that it was taking action to seek ‘the forfeiture and recovery of more than US$1 billion in assets’ related to 1Malaysia Development Berhad (1MDB). This action will likely start the process...

China is unusual in that it is a developing country that has emerged as a major investor. China itself is an important destination for foreign direct investment (FDI), and opening to the outside world has been an important part of...