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looking beyond borders

foreign policy and global economy

Archive for the tag “equity markets”

Li Says Resilient China Remains Source Of World’s Growth

Premier Li Keqiang says that China’s economy remains a source of the world’s growth thanks to people’s zest for innovation, entrepreneurship and stronger international cooperation. China’s confidence is well-grounded and not “blind optimism,” the premier said in a speech at the World Economic Forum’s event in northeast China’s Dalian, known as Summer Davos.

Read Here – Xinhua

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A False Alarm About China

China’s growth has slowed largely as a result of changes in its fundamentals: less favorable demographics, a shift in emphasis from exports and public investment to the service sector and domestic consumption, and lower demand from advanced economies. But China’s past success also contributed to this slowdown, in the form of higher wages, which narrow the scope for rapid growth based on low-cost labor and technological catch-up.

Read Here – Project Syndicate

China Stock Plunge Hits World Stocks, Dollar; U.S. Stabilizes

World stock markets plunged on Monday, after a near 9 percent dive in China shares and a sharp drop in the dollar and major commodities sent investors rushing for the exits. After dropping more than 1,000 points, or almost 7 percent, at Wall Street’s open, the Dow Jones industrial average eased losses but was still off more than 1 percent at midday. The Standard & Poor’s 500 index was down by a similar margin after the U.S. benchmark earlier dropped nearly 10 percent below its record.

Read Here – Reuters

Who Blew Up China’s Stock Bubble?

In China, the invisible hand of the market sometimes needs help from the iron fist of the state. That’s certainly true after a meltdown vaporized $3.5 trillion in the value of shares traded on the Shanghai and Shenzhen exchanges.

Read Here – Bloomberg

China Tries Japan’s Approach to a Stock Bubble – Bloomberg View

Is Iraq The New Investment Magnet?

For Grant Felgenhauer, a money manager whose hedge fund owns $110 million of Iraqi equities, the 15 explosions that rocked the country on a single day in mid-January weren’t a reason to stop buying.

Read Here – Businessweek

How Much Longer Before The Fed Cracks?

The U.S. unemployment rate fell to 7 percent in November, the lowest since November 2008, raising questions about how much longer the Fed will keep fueling the economy with monetary stimulus.

Read Here – Businessweek

Let It Ride – The Economist

The BRIC Breakdown

Is the decade-long BRIC dream over?

Bloomberg reports that capital flight from Brazil, Russia, India, and China has sent their bonds, currencies, and stocks down together for the first time since 2006.

Read Here – Businessweek

The Emerging Markets Look More Like Submerging Markets

The ascendance of the emerging markets was supposed to be brought into sharp relief as the world recovered from the financial crisis. But since they peaked in late 2007, the BRICs—Brazil, Russia, India, and China, the supposed core of the emerging-market dynamo—have on a total-return basis vastly underperformed the U.S.’s Standard & Poor’s 500-stock index.

Read Here – Bloomberg

Whiff Of Economic Recovery Raises Interest In Markets

With a whiff of global recovery in the air and central bank liquidity abundant, investors in 2013 are packing their bags for China, fellow ‘BRICs‘ Brazil and Russia, long-dormant Japan and even some Mediterranean sun.

Of course, seeking consensus on the top country destinations for the year ahead is hardly an exact science.

Often the simplest game is to avoid what did best the previous year, look at the subdued valuations of laggards and bet on a catch-up depending on the economic cycle. Rank underlying economic growth rates, factor in policy shifts and you’re away.

Read Here – Reuters

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