Benjamin Cole | Japan has put together a string of five straight quarters of real growth, along with declining unemployment and minute amounts of inflation. Some have recently termed Abenomics “a big success.”
Brazil has written a new page of corruption. President Michel Temer was allegedly caught on tape authorizing businessmen to bribe former House Speaker Eduardo Cunha. This new political instability could have the potential to derail ensuing recovery.
Gavin E.L. Hall | After the WannaCry cyber-incident of May 12, comments focused on whether the attack was preventable and if it presents increased vulnerability for public sector organizations. Such analysis does, however, gloss over an essential question: What do we want the role of the government to be?
Should we be worried by the fact that the Fed is reducing its balance sheet? David Buckle from Fidelity is one of those who think not; moreover, he believes that it won’t have any impact on the financial markets.
Hu Shuli via Caixin | U.S. President Donald Trump’s ambitious proposal to cut corporate and individual taxes is adding to the external uncertainties affecting China’s economy. It follows projections of a faster-than-expected pace of interest rate hikes by the U.S. Federal Reserve.
The IMF’s last report on Mexican Economy praises the quality of the general framework of its economic policy and its execution, encourages maintaining the principles of fiscal consolidation with the aim of keeping debt under control – the federal budget normally closes in the red – and reiterates the importance of transforming PEMEX into a profitable organisation.
Steve Keller via Atlantic Sentinel | What is the essence of Donald Trump? Is he an aspiring strongman? Or is he just a plain old bumbler? These two schools of thought have been in competition ever since we started to take Trump seriously. The answer: He’s both. After the firing of FBI director James Comey on Tuesday evening, this has been made astoundingly clear.
The commodity complex continues to soften with oil prices sliding below USD 50 per barrel and Chinese heavy industry commodities rushing lower. The resource reflation tide recedes with benchmark indices such as the Bloomberg Commodity Index trending towards last year’s levels. Commodity prices revert towards fundamentally reasonable levels on supply rather than demand trends.
After two days in Washington DC meeting with politicians and policymakers, BoAML analysts conclude that energy “is a policy cornerstone, together with tax reform, in this Administration”
Despite quantitative easing and 3 years of more synchronised developed economy growth, it is not clear that inflation has really got any traction. Technology, globalisation, unemployment and changes in working practices have all contributed to the lack of inflationary pressures and still do.