Markets

The main theme in Asia and Europe has been a somewhat heavier dollar tone, against the major and emerging market currencies.  There has not been much of a fundamental driver as perhaps a bit of caution in a stretched-market ahead...

The broad economic conditions have been shaped to a large extent by the different policy responses to the Great Financial Crisis.  For reasons that need not concern us here, the US and UK policy response was relatively stronger than the...

1) USD/HKD traded at its highest level since May 2012.2) Russian officials confirm that capital controls are not on the cards.3) The Turkish central bank started to push bank against currency weakness – albeit slightly.4) Dilma’s chances of re-elections increased...

This seems to be the first time in several months that ECB President Draghi has been rather anti-climactic.   The disappointment or the "sell the rumor buy the fact" scenario we suggested is, in fact, unfolding, and the euro is...

With more than half of the global population now living in urban areas, some in abject poverty, the path to sustainable development must pass through cities. In a meeting in July, the Working Group for the UN’s Sustainable Development Goals...

The ECB meeting and details about the asset purchase plan is the key event of the day.   However, there is something else happening.  A string of disappointing US data and the sell-off in equities have sparked a bond market...

The European Central Bank meets tomorrow.   The focus is on the details of the asset-backed securities and covered bond plan that was announced last month. There are three key issues related to this new initiative:  What instruments will be purchased,...

With the ECB meeting and US jobs data the key events of the week, it is understandable the August US trade balance, due out Friday, is not drawing much attention.   However, the combination of the growth differentials, favoring the...

Before his election to India’s prime ministership, Narendra Modi was persona non grata in the United States because of his alleged complicity in the ethnic violence in Gujarat of 2002 in which 790 Muslims and 254 Hindus died, 2500 people...

Increasing the GDP growth rate will be a major task for India’s new government. GDP growth will be critical for eradicating poverty and improving the living standards of India’s population. The economy also faces the daunting challenge of providing employment...

The US dollar remains in a consolidative mode as participants await fresh incentives.  The bulls have been denied fresh excuses to push the trend that has carried the US Dollar Index higher for an unprecedented ten consecutive weeks.  The US...

If Australia’s property bubble bursts, the consequences would be disastrous for an economy dominated by oversized banks. But Government policies aimed at propping up the market are simply making the bubble bigger. And bigger.  If Australia’s property bubble bursts, the...

On Independence Day 2014, India’s Prime Minister Narendra Modi launched his financial inclusion plan to provide a bank account to every Indian household. His ‘Jan-Dhan Yojana’ (Scheme for People’s Wealth) — which, in typical Modi vernacular, plays on rhyming words...

The launch of the new 4-year lending facility by the European Central Bank was disappointing.  Participation was light.  Some 255 banks (of 382 eligible institutions, which represent more than 1300 entities) borrowed a total of 82.6 bln euros.  The consensus...

The  Scotland vote today is the main event, and as important as a "yes" vote would be, it is not the only event today.  And there is not much more to add to the discussion.  While the polls remain a...