Has the Brexit Been Good for the UK Economy?
We’ll have to wait to see the medium- to long-term economic impact of the Brexit. You should also take a look at other macro (ACWI) variables before making any investment decision.
After the Brexit decision, services were a positive factor, while production ended up to be a drag on GDP.
On October 27, 2016, the UK Office for National Statistics released its preliminary estimate of GDP for the third quarter. The results were a positive surprise.
Saudi Arabia has also been involved in the sale of US Treasuries. The country is the 15th-largest holder of US Treasury bonds in the world.
Oil is critical to Saudi Arabia. The country is the largest exporter of petroleum, with 18% of the world’s proven petroleum reserves.
The plunge in oil’s price since mid-2014 has had a direct and negative bearing on Saudi Arabia’s public finances.
On October 20, the government of Saudi Arabia raised about $17.5 billion in an international bond issuance, marking the emerging market’s first foray into the international bond market.
The most visible impact of the ECB (European Central Bank) claiming that it had neither discussed extending its asset purchase program nor any tapering of it was on the euro (FXE).
ECB chief Mario Draghi had nothing to say about either tapering or extension of the bond buying program.
The ECB (European Central Bank) released its latest monetary policy statement on October 20, 2016.
Immediate-term bonds (ITM) are better placed since investors take less of an interest rate risk.
With a longer duration of the intermediate bonds rate curve, ITML is best suited for investors who are uncertain about the movement of interest rates in the near future.
As of September 30, 2016, ITMS has all of its investments in US dollar-denominated bonds with a credit rating of “A” or higher, thus ensuring lower risks.
In September 2016, VanEck introduced two new ETFs that provide exposure to intermediate-term municipal bonds.
The IMF expects the economy of Brazil to fall 3.3% in 2016, following its 3.8% decline in 2015.
In its October World Economic Outlook, the IMF projected that India’s economic growth would reach 7.6% in both 2016 and 2017.
The IMF noted that emerging markets and developing economies need to avoid being financially vulnerable and to ensure that growth won’t reverse course.
The IMF expects Japanese economic growth to be 0.5% in 2016—the same as in 2015—and to tick up to 0.6% in 2017.
In its October 2016 WEO report, the IMF forecasts that the Eurozone will grow by 1.7% in 2016 and 1.5% in 2017—up from its prior forecast of 1.6% and 1.4%.
Due to the primarily low inflation environment, advanced economies have little choice but to continue with their accommodative monetary policies.