BoAML| The emerging market rally of the past six months appears to have paused and needs another theme to resume: we think the exchange rates will be the key issue. Since end-January, emerging market assets have rallied on a compression of excessive cred it risk premiums that were created by the oil and China induced panic.
The stagnation in European productivity is serious, a tragedy. Labour productivity is the result of dividing the product obtained (some of components of GDP) by the number of hours worked. It can also be calculated dividing by the number of employees, although the different kinds of contracts (part-time, construction contracts etc.) create distortions. The more GDP expands, the more productivity increases. And the more employment rises, the less productivity increases.
Julius Baer Research | Alongside the G20 summit, China and the United States informed that they both ratified the Paris agreement on climate change. The treaty was negotiated and signed under the lead of the United Nations in Paris last December and will go into effect once countries in sum representing at least 55% of global greenhouse gas emissions ratified the agreement.
J.L. M. Campuzano (Spanish Banking Association) | Low growth, huge inequality and the slow progress with structural reforms: these are the three problems which cause the most concern for IMF Managing Director Christine Lagarde. And the issues which she would like tackled at a global level in a forum like last week’s G20 meeting.
*Foto: Steven Cutts
Money in circulation (M2 in the US, M3 in the Eurozone) is not created by the central bank, but by the private banks when they lend. These loans are the fundamental countepart of M2 and M3. Loans are converted into deposits which provide the liquidity for us to function.
By W. Xinyi, L.Rongde and X.Yuanyuan via Caixin | China plans to set up seven new free trade zones, mostly in inland regions, to attract foreign investment amid the national economic slowdown.
J. L. M.Campuzano (Spanish Banking Association) | Fed deputy chairman Fisher said last Tuesday that any future decision on interest rates will depend, in the end, on the data. The market is now awaiting the US August jobs figures, due out tomorrow. This will be the key indicator anticipating a September rate hike. They say that more than 150,000 new jobs will be a sufficient trigger for the Fed to take its decision this month. And the necessary condition? That the rest
Peter Drysdale via Caixin | China has a lead role to play at the Hangzhou G20 meetings on opening up global trade, investment, deeper financial reform
BBVA Research | After providing a grand finale to the Rio 2016 Olympic Games, the first ever to be held in Latin America, Brazil is now back to reality: a political crisis which is the prelude to the definitive removal from office of President Dilma Rousseff and an economic crisis which has pushed the country into recession.