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World economy 2nd July 2014

China: Banks start using new loan-to-deposit ratio

BEIJING | By Huo Kan and Wu Hongyuran via Caixin | Starting July 1 banks in China are using a new method of calculating the loan-to-deposit ratio, a change that the regulator and analysts say will allow for more loans to be extended.  The China Banking Regulatory Commission (CBRC) announced on June 30 the new set of rules for figuring the ratio, which is capped by law at 75 percent, meaning that banks cannot lend out more than three-quarters of the deposits they accept.

Youth unemployment in the Middle East and North Africa

World economy 29th June 2014

Whose Job Is Youth Employment in Africa?

SAN FRANCISCO | By Atul Singh via Fair Observer | With 61% of its population under 24, Africa’s greatest challenge is finding jobs for its youth. The continent needs to provide employment to 200 million people aged between 15-24. As per the World Bank, youth account for 60% of Africa’s unemployed. The African Economic Outlook records extensively how the young fare in labor markets. Lack of demand for labor, absence of meritocracy, and lack of proper training are the top three barriers to getting a job.

This article was originally published on Fair Observer.

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World economy 28th June 2014

Bankinter expects 3Q vertigo in sound cycle

MADRID | Bankinter Analysis | 3Q Perspectives. Economic cycle speeds up and, mostly, gains soundness and reliability. Global growth will consolidate in 2014/2015 by +3%/+4% with positive news for developed countries and less favorable surprises in emerging markets. Japan and India are the exception to this rule. Spain will also amaze and main economic risk will lie in regional regional integrity issues whose aftermath may be undervalued, regardless the final scenario.

Global growth

World economy 26th June 2014

The world’s disappointing recovery

SINGAPORE/LONDON | By UBS analysts | Global growth has disappointed in the first half of this year. As a result, we have steadily marked down our forecasts for 2014. We now forecast global growth of 3.0% in 2014 and 3.3% in 2015 after 2.5% in 2013. At the turn of the year we forecasted 3.4% global growth for 2014 and 2015.

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World economy 26th June 2014

Curbing corruption requires more than just politics

SHANGHAI | Via Caixin | To root out the graft that has seeped into every aspect of the society and economy, China must build institutions that put power under scrutiny. No one is off-limits in the government’s campaign against corruption. CCTV financial news channel director Guo Zhenxi was put under investigation late last month, three months after the sacking of security vice-minister Li Dongsheng, who also worked for the state broadcaster.

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World economy 26th June 2014

Crude oil: It’s a turning point

LONDON | By Kevin Norrish at Barclays | What’s all the fuss about? On many occasions over the past few years, oil prices have spiked higher only to fall back rapidly into the prevailing trend of narrow range trading and steadily falling volatility. So is the recent pickup in oil prices anything more than just another blip?

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World economy 25th June 2014

World Cup: Samaras shoots, Samaras scores!

ATHENS | By Nick Malkoutzis via MacroPolis | “Samaras rescues Greece” – it’s the headline the prime minister and many in his office would have cherished. But Giorgos Samaras, the striker without a club, has beaten premier Antonis to the title of saviour thanks to his injury time penalty on Wednesday, which ushered Greece into the second round of the World Cup for the first time in its history. 

spain FDI

World economy 25th June 2014

Spain, largest European FDI receiver in 2013

MADRID | The Corner | As global confidence revives and money is in the air, more deals are expected. Foreign direct investment (FDI) inflows, which grew year-on-year to $1.45tn in 2013, will rise to $1.6tn in 2014, $1.75tn in 2015 and $1.85 tn in 2016, according to the last U.N. economic think tank UNCTAD report. Spain is one of the EU’s most benefitted recipients attracting $39 billion from vulture funds, venture capital, billionaire families, pension plans or even sovereign funds.

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World economy 25th June 2014

Emerging economies show weakness signs

MADRID | By Francisco López | Ben Bernanke’s warning about a posible withdrawal of Fed monetary stimulus a year ago prompted a notable rise of premium risks and general drops in global stock markets, but deeper in emerging economies. And it indeed hit the so-called BIITS (Brazil, Indonesia, India, Turkey and South Africa). Today, stocks have recovered and stand at levels prior to the taper shock, although some collateral damages are there.