The Economist (August 30)
“If Germany, France and Italy cannot find a way to refloat Europe’s economy, the euro may yet be doomed.” With inflation “perilously low” at just 0.4%, “the euro zone stands (or wobbles) in stark contrast with America and Britain, whose economies are enjoying sustained growth.”
Chosun Ilbo (August 29)
“Korea’s birthrate hit a record low last year due to a declining population of women of childbearing age and as a growing number of women married later in life.” Japan may be lamenting its own ultra-low birthrate of about 1.4%, but things are even worse in South Korea where the birthrate is just 1.187%. Unless the rate increases, South Koreans will die out by 2750. Based on similar projections, the Japanese are expected to last an additional 261 years before disappearing in 3011.
Tags: Birthrate, Childbearing, Japan, Marriage, Population, Projections, South Korea
Institutional Investor (August 28)
“Chinese companies are the new force in global M&A.” With $51 billion of outbound M&A, China has surpassed both Japan ($37 billion) and Germany ($49 billion) during the first eight months of 2014. Though it still trails the U.S. ($174 billion), “mainland firms are stepping up the pace of foreign acquisitions, increasingly targeting technology and consumer plays in developed countries.”
Tags: Acquisitions, China, Consumer, Developed countries, Germany, Japan, M&A, Technology, U.S.
Bloomberg (August 28)
With all of Japan’s nuclear plants off line, many now expect the first restart won’t occur until 2015. “Delays are prompting a reassessment of Japan’s nuclear outlook. JPMorgan cut its forecast in a July 28 report to 31 reactors to restart by 2019, down from 42. Two-thirds of Japan’s pre-accident fleet may never resume due to damage, seismic conditions that don’t meet NRA guidelines and local opposition.”
Tags: Damage, Japan, NRA, Nuclear, Opposition, Outlook, Reactors, Restart, Seismic conditions
New York Times (August 27)
The talks between Ukraine President Poroshenko and Russia’s Putin produced little. “The problem is that Ukraine has little interest in a cease-fire now, and Russia is pretending that it is not in the fray. Ukraine is steadily gaining ground against the Russian-backed rebels, and knows they would use a pause in fighting to rearm and consolidate.”
Tags: Cease-fire, Poroshenko, Putin, Rearm, Rebels, Russia, Talks, Ukraine
Financial Times (August 26)
“China’s tottering property market presents one of the greatest threats to the global economy.” The reverberations would be felt around the globe, particularly by nations reliant on natural resource exports. “The size of China’s property boom–and therefore the fallout from any crash–is awe-inspiring. In just two years, 2011 and 2012, China produced more cement than the US did in the entire 20th century.”
Tags: Boom, Cement, China, Crash, Exports, Fallout, Global economy, Natural resources, Property market, Threats, U.S.
Euromoney (August Issue)
“Mexico’s strategy of diversifying its investor base is succeeding… following the sovereign’s multi-tranche samurai transaction which was priced on July 15 and included a 20-year tenor,” the first of any Latin American country. The highly oversubscribed placement also marked “the first emerging market sovereign to place a 20-year bond in Japan’s domestic market since 2008.”
Tags: 20-year tenor, Diversification, Emerging market, Investor base, Japan, Latin America, Mexico, Oversubscribed, Placement, Samurai bonds, Sovereign, Strategy
Forbes (August 22)
Steve Forbes urges India’s new Prime Minister Narendra Modi to first create a “sound and stable currency” through disciplined monetary policy that initially includes a dollar or euro peg. Among his other tips: “Simplify the tax code with a low-rate flat tax” and “Be extremely cautious in attacking subsidies, especially those that benefit the poor, until the economy is in a true boom.”
Tags: Currency, Dollar, Economy, euro, Flat tax, India, Monetary policy, Narendra Modi, Peg, Poor, Steve Forbes, Subsidies, Tax code
Institutional Investor (August Issue)
Several years ago Switzerland adopted a currency floor to stem the Swiss franc’s appreciation against the euro. “Last November, the Czech Republic followed suit, threatening to intervene in the currency market if the ikoruna strengthened.” Now, with the euro poised to continue depreciating, some are wondering whether Sweden will be the next to “follow Switzerland’s lead by adopting a currency floor?”
Tags: Appreciation, Currency floor, Currency market, Czech Republic, Depreciating, euro, Franc, Ikoruna, Sweden, Switzerland
Washington Post (August 21)
“With each day, the barbarism of the Islamist extremists terrorizing Syria and Iraq becomes more evident—as does the need for the United States and its allies to act more vigorously to block their rise.”
