Starbucks in China: Prices Are as Plain as Black Coffee
BEIJING | By Qiao Xinsheng at Caixin | Why is a latte more expensive in Beijing than London? Because China is an emerging economy forcing hidden costs on companies and Britain isn’t.
BEIJING | By Qiao Xinsheng at Caixin | Why is a latte more expensive in Beijing than London? Because China is an emerging economy forcing hidden costs on companies and Britain isn’t.
NEW YORK | By Junheng Li at Forbes via Caixin | The assumption that China’s housing market is out of control ignores many facts, most importantly that homeowners are not deeply indebted.
LONDON | By Barclays analysts | EM markets are likely to enjoy supportive conditions over the next few weeks. The resolution of the US government shutdown, expectations of QE tapering pushed further into 2014, the emergence of some EM re-coupling to stronger global manufacturing and still-attractive EM valuations should all be helpful factors. Liquidity considerations are likely to become a less important market driver, and higher-yielding EM assets, particularly in EM credit, should attract further support where bottom-up fundamentals allow.
BERLIN | By Claus Christian Malzahn at Die Welt via Presseurop | If allegations US intelligence services bugged German Chancellor Angela Merkel’s mobile phone are proved true, it will prove the worst fears a reality. After revelations of US spying on other countries, this could be the final straw in relations between Europe and the United States.
LONDON | By Barclays analysts | Investor expectations have been slow to incorporate the improvement in global business confidence, and the persistent pessimism presents an opportunity to be long assets that will benefit from an acceleration in global growth.
By David Brunat (LATAM CORRESPONDENT) | The main economic oddity in Cuba is on its way to become a memory of the past. The Communist regime announced through its official newspaper Granma that it will be taking the first step toward eliminating a two-currency system, which symbolizes the uncomfortable inequality in the island. After the reform is completed, the Cuban peso (CUP) will remain the only authorized currency, while the Convertible peso, or CUC, pegged to the US dollar, will no longer exist. What will happen to the black market or the checking accounts held by foreign companies on the island remains unclear.
MADRID | By Alex García and @elbaronrojo
LONDON | By Barclays analysts | We now expect Fed to taper in March 2014. The September payroll report was on the soft side, with nonfarm payrolls rising 148k and private payrolls rising only 126k. These numbers were below our (200k) and consensus (180k) expectations for headline payroll growth. In light of the moderate tone of the September employment report, we have pushed out our expectation for the first Fed tapering in the pace of asset purchases to March 2014 from December 2013.
SAO PAULO | By Marcus Nunes | It is a common occurrence with sports idols and some teen idols to be demonized in the next stage of their lives. But among Fed Chairmen, Alan Greenspan surely gets the ‘honor’ of being the first.
NEW YORK | By Ana Fuentes | We’ll probably need to wait until November to see any obvious effects of the U.S. government shutdown in the employment data. The last jobs report released on Tuesday show 11.3 million workers who wanted a job and were looking couldn’t find one in September. Payroll employment increased (+148,000), but unemployment rate changed by very little (7.2%).