Donald Trump is unstoppable in his advance towards protectionism
US president Donald Trump is continuing along the path towards protectionism, positioning himself to take advantage of more beneficial trade conditions for the leading global economy.
In the World
The Economy of Digital Money
By issuing digital money, the central banks could provide an answer for the substitution of jobs by robotization, or solve the problem of excessive public debt, easing the increasing pressure on finances from burdens like pensions.
Gold In Times of Boom And Bust
If and when interest rates keep edging up, the ongoing boom can be expected to come to a shrieking halt, running the severe risk of turning into a bust. From the investor’s viewpoint, gold can be considered a sound currency, as the “ultimate means of payment”.
Spain Multinationals Expect To Obtain Better Results In Latin America Than In Spain In 3 years
Some 68% of Spain’s multinationals and 47% of SMEs present in Latin America expect to generate more revenue in the region than in Spain in a period of three years,
Emerging Markets: Standing Up To Higher Volatility
During the second most significant repricing in U.S. Treasury bond yields since 2013, emerging markets debt, especially local currency bonds, has so far significantly outperformed equity, oil and U.S. Treasury beta. PIMCO’s analysts believe this resilience in EM reflects the resolution of most balance-of-payments issues over the past few years.
Bullish Powell Fuels Higher Rates
In his first congressional testimony, Jerome Powell delivered an upbeat appraisal of the US economy. In his own words, headwinds have turned into tailwinds. While avoiding any commitment on the plausible monetary stance, markets have discounted a faster pace in rate hikes, pushing bond yields to fresh highs.
Vietnam & Cambodia: Asian Frontiers On The Front Foot
In the mind of many investors, frontier markets are a black box of uncertainty, characterised by unstable leadership, volatile currency, and questionable corporate governance. However, broad investor aversion has created some of the most compelling bottom-up investment opportunities of any asset class.
US, Australia, Japan And India Discuss ‘Belt and Road’ Alternative
Coco Feng via Caixin | The U.S., Australia, India and Japan are discussing formation of a joint regional infrastructure-building initiative, attempting to counter similar Beijing-led efforts aimed at boosting developing market economies, according to an Australian media report.
US Means Over 50% Of Global Market Cap, But Not 50% Of The Opportunities
The collapse in the “greed index”, the exchange traded note XIV that was an inverse of the VIX, was behind the speed and magnitude of the drawdown in equities over last weeks, but was simply amplifying an existing fragility that has grown out of the post GFC obsession with low volatility. This is just “market mechanics”, as explained by Mark Tinker Chief Economist at AXA IM Framlington Equities Asia in one of his last notes.
Savings, Investment, Interest Rates: The Increasing Gap Between The Euro And The US
After twenty years of similarity between 10-year rates in the US and Germany, for the last six years there has been a growing decoupling of the US rate, reaching a spread of 2%. So what are the macroeconomic differences justifying such behaviour? Germany’s huge savings play a big part.