Investors Embrace China’s Big Belt, Risky Road
BEIJING | June 18, 2015 | By Huo Kan, Wang Ling and Wu Hongyuran via Caixin | A Chinese initiative to strengthen business ties abroad has sparked enthusiasm and risk warnings for companies and banks.
World economy
Debt now a key risk in the emerging world
HONG KONG | June 18, 2015 | By Alicia García-Herrero via Caixin | Brazil’s economy is burdened by debt and China is leveraging at an unsustainable level, situations that could be exacerbated by Fed tightening.
Trade is good, but not for everyone
Not everyone wins in trade, and winners have to compensate losers who might end up selling sex or worse to survive.
Chinese ODI: Where does it all go ?
HONG KONG | June 17, 2015 | BBVA Research | Chinese ODI flows in 2013 may have been overstated due to the presence of round tripping, challenging previously held assumptions that the country is close to becoming a net exporter of FDI.
Is China knocking on deflation’s door?
BEIJING | June 16, 2015 | By Yu Hairong and Wang Liwei via Caixin | Economists are divided over whether deflation in China is endangering the economy or whether it is even a problem.
India’s pollution is causing lower labor productivity
India is experiencing an economic surge after Prime Minister Narendra Modi entered office in 2014. Investors see India as a growth opportunity. Last year, capital expenditure projects attracted $23 billion of foreign investment. Yet the country’s potential is clouded by environmental problems, which have been caused by pollution.
Myanmar is the latest destination for fast fashion producers
As Myanmar opens up after decades of isolation, cheap labor is drawing a rush of garment manufacturers to the former pariah state.
Will Turkey elections mark an inflection point? – Market pricing in status quo
June 6, 2015 | UBS | Turkey holds general elections tomorrow. In our view there are two key uncertainties: 1) whether HDP, the Kurdish Party, will be able to cross the 10% hurdle required to qualify for parliament, thereby securing 55-60 seats mainly at the expense of the ruling AKP 2) whether the AKP is able to secure enough seats (276) to form a single-party government. Market seems to be pricing in the maintenance of status quo.
The ‘liquidity trap’ with Chinese characteristics
BEIJING | June 2, 2015 | By Xu Gao via Caixin | Unless obstacles blocking the flow of capital to the real economy are cleared, the financial market will continue to be trapped.
How hawkish really is the IMF on Greece?
MADRID | May 29, 2015 | By Ana Fuentes | German bund futures spiked higher on Friday after traders cited comments by IMF’s Christine Lagarde to the Frankfurter Allgemeine Zeitung that a Greek exit from the euro zone was a possibility. As Ms Lagarde’s words heated the debate worldwide, the IMF insisted the German paper mistranslated her as too hawkish on Grexit. The print version of the interview published today is slightly different (see screenshots above).