BEIJING | Alberto Lebrón | When the Asian crisis began in 1997, there were some countries which thought they were unjustly treated. For example, South Korea. Today, nearly twenty years on, the same pattern is being repeated, although the principal actors involved are much better prepared than they were then. But, are the Asian countries ready to face a restrictive monetary cyle imposed by the U.S.?
HowMuch.net | The countries with the highest debt-to-GDP ratios are Japan (230%), Greece (177%), Lebanon (134%), Jamaica (133%), Italy (132%), and Portugal (130%). This isn’t necessarily a huge problem. As long as countries are using borrowed funds to successfully stimulate their economies, they will be able to pay back their debts on time.
What really shocked the markets was not the Fed’s decision to maintain zero interest rates for a few more months, but the statement that accompanied it.
With all the talk of an imminent interest rate hike, there are likely to be winners and losers.
LONDON | BNP Paribas | Even after a very dovish FOMC meeting…the USD reaction has been muted. BUT the USD has strengthened against the EM currencies…
The FED not only held unchanged its rates in its last FOMC meeting last week. It plunged investors into utter disarray by delivering an extremely dovish message on future action. The prospect of a hike this year loses steam while bewildered markets pull back to the waiting game.
Barclays | We expect the Fed to remain on hold at its September meeting, deferring rate hikes while it assesses renewed risks to the outlook.
By Peter Lundgreen via Caixin | The turmoil on world financial markets has more to do with global changes that need to be noted than recent volatility in China’s stock exchange.
The Fed’s wavering over addressing the matter of its announced rate hike has badly affected the markets, increasing their volatility. It should act now, curbing any further speculation, and disregard recent calls from the IMF and the World Bank to further delay this move.