Mexico stands to be greatly impacted by a Donald Trump victory in the 2016 US presidential election. Renegotiating NAFTA would impact a variety of industries in Mexico, especially the auto industry.
The MSCI Emerging Markets Index has delivered positive Election Day returns only twice out of the seven presidential elections that have been held since the index was created. The 1996 and 2004 elections—in which incumbent presidents were re-elected—saw 1.4% and 6.1% returns.
Equity markets in BRIC countries mostly rose. Only Russia (RSX) posting a small decline in October.
China (FXI) (MCHI) is another economy drawing much investor interest. With a stock market crash, currency devaluation, and talks of a leadership shuffle, the economy has experienced it all. It could…
The oil price plunge, which started in mid-2014, has been causing much havoc across financial markets. Around the world (ACWI) (VTI), the price of crude oil (USO) has plummeted from a…
US GDP recorded the biggest gain in 3Q16 since 2014—it rose 2.9% in 3Q16. It’s better than the market’s expectation of 2.5% growth.
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 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.
Russia’s suspension of nuclear energy–related pacts with the US (IWD) is a definite step back from the two economies cooperating in nuclear disarmament.
The Russian government expressed its willingness to get back at the US. The economy’s growth has been impacted by trade and economic sanctions.
On October 3, Russia suspended a treaty with the US relating to cleaning up weapons-grade plutonium. The agreement was signed in 2000.
It’s no secret that Raghuram Rajan, the former RBI (Reserve Bank of India) Governor, was not given another term due to his differences with the political establishment on the direction…
Monetary policy transmission refers to the translation of monetary policy actions into the financial system via banking and trading channels. By changing the short-term interest rate—like the repo rate in…
Indian equities rose on October 4, 2016, the day of the RBI’s (Rerserve Bank of India) latest monetary policy announcement. The central bank’s cut of its repo rate had a…
The CSO (Central Statistics Office) is India’s official statistics agency, and it releases information on the CPI (consumer price index) on a monthly basis. Along with the CPI, it also…