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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.
US EUROPA1

World economy 13th January 2016

What To Make Of Divisions In The West

Marc Chandler via Caixin | Lenin and Kautsky once debated the future of imperialism. Kautsky saw a trend toward a global ruling class. Lenin argued that despite such tendencies, inter-imperialist rivalries would prevent the emergence of global ruling class. The so-called West was never as homogenous as the cold warriors pretended. There were asymmetrical perceptions of the threat posed by the Soviet Union until its dying days. Only now do the United States and Europe contemplate a free-trade pact.

Reminbi

World economy 13th January 2016

China Big Surprise In 2016: RMB To depreciate by 5% against the USD

UBS | 2015 saw China’s growth slowing further but the government’s intensified policy support helped to prevent a hard landing. The equity market was very volatile and the world was surprised by China’s modest but perhaps ill – timed currency move. For 2016, we expect growth to grind lower with further policy easing, corporate restructuring to accelerate, and RMB to depreciate by another 5%. However, there could be some big surprises too on property destocking, SOE reform, RMB exchange rate and financial markets.

yuan2

World economy 12th January 2016

Tapped For SDR Basket, Yuan Reform Goes Global

Wang Liwei and Huo Kan via Caixin | Advocates of financial reform consider the International Monetary Fund’s plan to add the yuan to its special drawing rights (SDR) currency basket as momentous as the World Trade Organization’s welcome in 2001.

basel

In Europe 11th January 2016

The End Of The Zero Risk Weight For Sovereigns?

BBVA Research | A significant review of the prudential treatment of sovereign risk , as a result of which it may lose its privileged status of zero risk weight, has started at a global level. The Basel Committee is already working on this issue, but no formal outcome is expected before the second half of 2016. In Europe, this topic is beginning to gain importance although no measure s are expected in the short term.

osborne

In Europe 11th January 2016

George Osborne: I’m Proud Of You Today!

James Alexander via Historinhas | In a “currency war” it pays to be the loser. If you need an expansionary monetary policy, like most currency blocs today, don’t let anyone undercut with dirty devaluations. So, when a big baby like China decides to lower the value of its currency versus the biggest baby of all, the USD, make sure you are not caught in the cross fire.

wealth

World economy 10th January 2016

Alarm Bells Sound Over Wealth Management Products

Caixin | As we start 2016 hoping for a better economic outlook, regulators must address certain financial problems, particularly risks associated with wealth management products that led to many defaults last year. China weathered several major financial storms over the past decade because of a towering pile of savings that provide banks with ample liquidity to prop up the market during times of trouble. But now depositors are using their money to snap up financial products offered by trust companies promising high returns.

oil pricess

Markets 9th January 2016

The Geopolitics Of Cheap Oil

John Feffer | The market was supposed to save the planet. That, at least, was the argument of many economists grappling with the problem of climate change. As fossil fuels became scarcer, they pointed out, the price of oil and natural gas would go up. And then other options, like solar and wind, would become cheaper, particularly as investment flowed into that sector and drove down the cost of new technologies.

Spains labour market

Spanish economy 8th January 2016

Spain’s Strong Labour Market Dynamics In 2015

BARCLAYS | 2015 was a surprisingly strong year for the Spanish labour market. Social security affiliations increased by 533k while the number of unemployed fell by 354k, according to figures released by the Ministry of Employment. December delivered another sizeable drop of 55.8k in registered unemployment and an increase of 85.3k in social security affiliations relative to November.