Markets

The main drivers of demand for agricultural products are population growth, urbanisation, economic growth and changing diets. Population growth brings greater demand, urbanisation leads to more people buying food rather than producing their own, economic growth increases purchasing power while...

There has been a great deal of soul-searching about Prime Minister Shinzo Abe’s statement on the anniversary of the end of the Pacific War. On 15 August 1945, Emperor Hirohito made his ‘jewel voice broadcast’ of surrender to the Allied...

Japan reported a smaller than expected June current account surplus.  Seasonally, June tends experience deterioration from May.  In fact, only twice in the past ten years has the current account improved in June over May.  On the other hand, investors...

EM is starting the week with a mixed tone.  EM currencies are on the weaker side but EM equities are generally firmer, especially in China as weaker data spur calls for more stimulus.  Stabilizing commodity prices are also helping sentiment,...

1) Poland’s lower house unexpectedly voted on a new legislation that would increase the burden of FX-linked mortgages losses to banks.  2) The popularity of the Chilean and Brazilian presidents continue to tumble. 1) Poland’s lower house unexpectedly voted on...

The main event of the day is the start of a new era at the Bank of England.  Until now, at the conclusion of the MPC meeting, the decision would be announced, but no press conference was typically held.  A...

China has accepted that its newfound economic clout as the world’s largest economy (in purchasing price parity terms) comes with responsibilities for economic leadership. Within two years, the Asian Infrastructure Investment Bank grew from a proposal put on the table...

The fluctuations of the oil prices, the Fed’s policy rate and the U.S. dollar are intertwined. In fall 2015/spring 2016, the Fed’s impending rate hikes will cause substantial turbulence in emerging markets. Until recently, oil prices were recovering. However, after...

Share of SMEs in the Thai economy Small and medium-sized enterprises (SMEs) play a significant role in the Thai economy. In 2012, there were 2.7 million SMEs in Thailand (see Figure 1) comprising 98.5% of total enterprises. In the same...

The world’s second largest economy, China made headlines when it became a part of two new banks in the Asia-Pacific region. The two new banks are a five member initiated BRICS-bank called ‘New Development Bank’ (NDB) and Beijing-led bank called...

EM again starts the week on the back foot, but losses are (for now) concentrated in the commodity currencies.  With commodities (except for iron ore) already under pressure again, this trend looks set to continue.  US jobs data Friday is...

The Canadian dollar is the worst performing major currency over the past month.  It has lost nearly 4.5% against the US dollar.  That brings its year-to-date loss to almost 12%.  The Canadian dollar is the worst performing major currency over...

Japan is at a momentous turning point. On 16 July 2015, the government of Shinzo Abe used its big majority in the House of Representatives to override objections from opposition parties and pass legislation permitting collective self-defence (CSD). However, this...

Bougainville went to the polls in May 2015 for the third Autonomous Bougainville Government election since the signing of the Bougainville Peace Agreement in 2001. The election was a significant political milestone for the region, marking the beginning of a...

1) S&P revised Brazil’s BBB- rating from stable to negative, 2) Banco de Mexico announced changes to its FX intervention program, which had been rumored since last week, 3) The Russian central bank has halted its daily USD purchases and...