What does any nation with a significant amount of trade with China want? Probably many things, but a free floating renminbi exchange rate would be high on the list.
Each week QFINANCE.com brings you some of the biggest news stories from 10-15 May in finance and business – essential reading to keep you up to date with the latest topics.
There is a grim inevitability about the way in which analysts pour over every utterance from senior figures at the European Central Bank, weighing every phrase for its dovish or its hawkish qualities. At the time of writing, more than a week has passed since the ECB decided to try to stimulate the flagging EU economy by cutting its main refinancing rate to a record low of 0.5%. Banks and analysts had been on tender hooks wondering which way the ECB will go.
Take a lackluster, nay, flat to falling economy in Europe and under-performance in the US and match that with record highs for the S&P, which hit a new all time high on 28 March and may well do so again before this blog appears in print, and you are not alone if you find yourself scratching your head and wondering what, exactly, is driving things? It can't just be all that new money being created, surely?
Rather than “flat-lining”, the British economy has been regaining momentum since late 2011. This trend is obscured in official GDP statistics by various special factors – North Sea production weakness, an extra bank holiday and the Olympics. Adjusting for their effects, the quarterly change in output has risen from -0.1% in the fourth quarter of 2011 to 0.0%, 0.1%, 0.2%, 0.2% and 0.3% in the first quarter of 2013 – a clear upward trend.
Russia's attempt in the 1990s to "leap with one bound" from a Soviet style "ownership of the means of production" to a modern, capitalist, private ownership model for major assets was a huge success, if by success one means the transfer of some state assets at ludicrously low prices to former party bosses and apparatchiks, with the inevitable result of transforming the lucky few into billionaire oligarchs.
Each week QFINANCE.com brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.
In its "Global Economic Prospects" report for January 2013 the World Bank has some very interesting figures on the extent to which the hunt for yield in developed markets is opening up the capital markets to even the third tier of developing countries. One has to wonder, with the catastrophic consequences of the last major hunt for yield still vivid in the mind, if this is the start of another binge party that is going to end in tears.
As the European Union mulls another year of economic stagnation and the United States a year of lackluster and uncertain economic recovery, will emerging markets take the lead in global economic recovery?
The phrase "currency war" is undoubtedly an emotive one and the G20 at its February 17th/18th meeting, along with IMF chief Christine Lagrange and the European Central Bank president Mario Draghi, has been doing its best to wrestle this particular bone away from the media and to portray the wild swings in the FX markets seen over the last months as merely the result of domestic governments pursuing domestic issues, no war at all, in fact.