MADRID | By J. J. Fernández-Figares | According to Eurostat, the US became by far the largest foreign investor in the European Union (EU-28) during 2013, with a figure that triples 2010 data. For its part, the second largest foreign investor in 2013 was Brazil, with €21bn.
LONDON | By Barclays analysts | The Japan macro trade has been off the radar in 2014, but that should change (for better or worse) in the coming few months. US yields have likely bottomed, while the effect of Japan’s VAT increase appearsmanageable. More important, PM Abe has unveiled more details of his 3rd Arrow (the structuralreform program), including a long-anticipated cut in the corporate tax rate.
MADRID | By Donato Ndongo-Bidyogo | For the last weeks Nigeria has made big headlines due to the kidnapping of more than 200 girls by the Islamist terrorist group Boko Haram. Most of the victims remain missing, as the first African economy faces systemic issues that compromise next year elections.
Amid an important devaluation of its currency, and with its central bank rapidly losing reserves, Argentina is entering a critical stage as it attempts to avoid a new economic crisis. In November 2013, Argentine President Cristina Fernandez de Kirchner decided to limit her public appearances and delegate to new ministers. Economy Minister Axel Kicilloff and Chief Minister Jorge Capitanich were tasked with revising the economic course of a government that is starting to show weaknesses. Today, not only is the Argentine public worried, but so too is the international community.
MADRID | By The Corner | The Federal Reserve cut its asset purchase plan by $10,000 million more, as expected. Experts at Bankinter Broker point that from now on the FED will buy $20,000 million in treasury bonds and $15,000 million in MBS every month.
MADRID | By Luis Arroyo | Experts at Afi made an analysis of the US’ labour market to forecast a possible turn in the economic policy. The answer is that such market is yet far from standardization. We can see three different moments according to the standard deviation in the chart above.
By Ray Kwong | After Virgin Galactic hurt the feelings of the Chinese people earlier this year by banning Chinese nationals from its space flights, prospects looked dismal for mainland space freaks. Perhaps that’s why 305 buyers signed up within minutes last Thursday when Taobao (yes, the online bazaar where you can truly buy anything) opened up registration for trips to outer space with the Dutch firm Space Expedition Corp. (SXC).
MADRID | By Luis Martí | You’ll probably know by now that the Court has turned down the Argentinian request to hear an appeal of a lower court decision. The decision established that the unwillingness of Argentina to pay defaulted holdouts, while duly servicing restructured debt, violated the spirit of the pari passu clause. Well, there’s a lot to be said for this interpretation, and a lot against.
WASHINGTON | By Pablo Pardo | Maybe central banks and market participants are giving too much weight to the unemployment rate when trying to gauge future inflation. Instead, they should look at the short-term unemployment rate, because the long-term unemployed risk becoming economic pariahs.
MADRID | By The Corner | The International Monetary Fund (IMF) revised downwards its growth forecasts for the US from 2.8% in April 2014 to 2%, and maintained 2015 outlook in 3%. Furthermore, the institution believes that the country will not achieve full employment before 2017.