BEIJING | By Caixin Magazine | Global opinion on China economic prospects appears to have soured of late. Credit ratings agency Fitch downgraded the country’s long-term local-currency rating from AA– to A+ last month, followed by Moody’s lowering the country’s credit outlook from “positive” to “stable.” Are market bears right? For many, this means Beijing must put reform back on its agenda.
NEW YORK | Obama acted as Mediator In Chief this Monday. Like some kind of a high level marriage counselor, the US president asked Britons to be “patient” so reforms in the EU achieve their results before “making any decision”, adding that it was sensible to try to fix what’s wrong with a relationship before breaking it off. But, at the same time, he supported Cameron’s intention to renegotiate membership conditions for the UK.
By Anoop Singh | Spending differently and more efficiently can go a long way. In several Asian emerging economies and low-income countries, subsidies—which are often a distortion and not well targeted to the poor—take up a higher share of total government expenditure than in peers in other regions.
NEW YORK |The Federal Reserve is perhaps one of the most important political factors behind the slow but steady US economic recovery -the country is growing at a 2.5% pace a year despite Europe’s recession and China’s slowdown-. But also, and here comes a problem, America’s central bank could be behind the crazy Wall Street rally.
By Alex Biddle | Generalised austerity doesn’t work. Austerity politics is being driven by the fear of inflation, which is not the underlying problem to the current economy.
With the great amount of debate, chatter, and serious analysis about the EU’s financial rescue of Cyprus from insolvency and potential departure from the eurozone, many wonder if the EU policy emerging from the Cypriot “bail out” will have a lasting impact on the political and economic integration of the Europe. In John Sydney Hopkins view, the EU rescue of Cyprus will be seen as a milestone event with a lasting impact on the EU’s ability to manage the process of integration.
BEIJING | Caixin Magazine | A ripple of skepticism recently hit prices of the yellow metal, but gold remains the ultimate hedge on inflation, as former Morgan Stanley’s Chief Economist for Asia Pacific Andy Xie explains. The global economy has already entered into stagflation with a growth rate of 2 percent and inflation at 3 percent. The inflation rate is likely to rise above 4 percent in 18 months while the growth rate will remain stuck in the same range. With inflation twice as high as the growth rate, the global economy will slip deeper into stagflation.
The European interchange fees reduction project is very similar to the measures adopted by the Spanish Government in 2005. However, several studies show that measures adopted to reduce interchange fees have finally harmed consumers, as French site Bursorama points out. Is there any ideological agenda behind it?
VALENCIA | Mètode magazine | By Lucía Sapiña | The mass media play a major role in defining public attitudes towards cancer: unfortunately, the media coverage of cancer is quite frequently of poor quality, an Time was a case in point.
MADRID | By Tania Suárez | Director of financial analysis at Profim EAFI, Jose Maria Luna Morales, argues that austerity measures in the euro zone were “necessary” but adds that “some privileges of many public institutions can still be reduced”. He also notes that although “Europe still may suffer months of stagnation”, that does not imply “a long period of stagnation'” for the EZ as a whole.