Foreign Policy Blogs

Trade & Economics

Africa Welcome China's 'Solidarity' Investments

Africa Welcome China's 'Solidarity' Investments

China has made significant sacrifices in trying to help African countries lift themselves out of poverty, including the deaths of more than 700 Chinese workers in aid projects, Vice Commerce Minister Fu Ziying told reporters. He said accusations that Beijing’s foreign aid to Africa was targeted at securing resources were “nonsense.” Fu was briefing the press on a report on China’s foreign aid released last week by the State Council Information Office. The report, the first of its kind, said China’s budgeted foreign aid swelled nearly 30% a year since 2004 and totaled 256.2 billion Yuan ($39.2 Bn USD) from 1950 through 2009.

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S&P Downgrades US Sovereign Debt

S&P Downgrades US Sovereign Debt

Standard & Poor’s (S&P), one of the big three global ratings agency, on Monday followed the data, too, by downgrading its credit outlook from ‘stable,’ to ‘negative’ for United States sovereign debt – better known as US Treasury notes. The decision by S&P’s sovereign debt analyst, Nicola Swann – known cynically by some traders as the new ‘Black Swann’ – to downgrade US sovereign debt outlook roiled Global Markets, underscoring the growing view that America is a superpower in decline.

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BRICS Challenge Western Economic Hegemony

BRICS Challenge Western Economic Hegemony

The emergence of Brazil, Russia, India, China, and now South Africa to compose the so-called BRICS Summit met in Hainan, China (Apr 14-15, 2011) to discuss global economics, trade cooperation and developments in Japan and Libya. The emergence of this economic bloc could become an alternative voice on the world stage to Western dominated world finance and politics.

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The US Economy: 'We Are Losing Our Way'

The US Economy: 'We Are Losing Our Way'

The U.S. has not just misplaced its priorities. When the most powerful country ever to inhabit the earth finds it so easy to plunge into the horror of warfare but almost impossible to find adequate work for its people or to properly educate its young, it has lost its way entirely. Nearly 14 million Americans are jobless and the outlook for many of them is grim.

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Markets Muted On Military Action in Libya

Markets Muted On Military Action in Libya

President Obama did what should always be done: namely, he used the sanction of International law by seeking a UN resolution to enforce a No-Fly Zone. By building MULTI-lateral support with all the stakeholders

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The Emergence of 'Bamboo Capitalism'

Continuing coverage on the Rise of State-sponsored Capitalism” href=”http://globaleconomy.foreignpolicyblogs.com/2009/05/09/the-rise-of-state-sponsored-capitalism/” target=”_blank”>I’ve written about frequently here in my Global Markets blog — namely the Chinese state’s spin on capitalism. Though there were many critics early on — and still are in many quarters — who argued that China’s state-managed version of capitalism was unsustainable, it seems the long-term sustainability of so-called ‘State Capitalism‘ has been proven, and is even gathering steam in unlikely places — India, Cuba, Vietnam and the Middle-East to name a few — with great success. It’s a trend that Western financial centers should be attuned to, nor should it be dismissed as the global financial architecture continues to evolve following the global financial crisis.

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Choose your Headline: A. WTO Rules Against the US. B. WTO Rules in Favor of China C. WTO Makes a Reasonably Sensible Ruling D. Showdown at the WTO: China 1, USA 0

Choose your Headline: A. WTO Rules Against the US. B. WTO Rules in Favor of China C. WTO Makes a Reasonably Sensible Ruling D. Showdown at the WTO: China 1, USA 0

The World Trade Organization announced the Appellate Body’s ruling on Friday, which essentially bars counties from imposing the “double dipping” duties in retaliation for dumping. The Appellate Body also affirmed that when a state had majority ownership of an enterprise this made it necessarily a “pubic body.” Long story short, While the US is not happy, both […]

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Links from Around the Web

Below are some interesting Global Trade related links: PRI’s The World: An Alternative to the Panama Canal – They’ve been talking about making these “dry canals” for years. Doesn’t seem to make a whole lot of sense, but neither did the Panama Canal. NYTimes: Maersk Line Orders 10 Container Ships With Options to Buy More – […]

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US Dollar's 'Safe Haven' Global Status at Risk

US Dollar's 'Safe Haven' Global Status at Risk

Long viewed as a safe investment in times of economic turmoil, the US dollar, also known as ‘Greenbacks,’ may be losing its safe haven appeal as it suffers strong downward pressures resulting from rising oil & commodity prices, high Federal budget deficits, soaring national debts and economic uncertainty in the aftermath of several financial crises.

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Rising Oil Prices Pose New Threat to Economic Recovery

Rising Oil Prices Pose New Threat to Economic Recovery

Rising oil & food prices, unrest in the Middle East, declining house prices and a slew of other variables threaten to hamper a fragile US economic recovery.

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German Bourse Acquires NYSE in $10Bn Deal

German Bourse Acquires NYSE in $10Bn Deal

Deutsche Börse AG, owners of the Frankfurt Stock Exchange, and exchange operator NYSE Euronext have agreed to a merger, creating the world’s largest trading platform as the exchange industry enters a period of global consolidation. The German Bourse will be the parent company, and the newly merged company will be incorporated in the Netherlands.

Under the terms of the deal, Deutsche Börse shareholders will own 60% of the newly merged company, with NYSE shareholders controlling 40%. One Deutsche Börse share will be exchanged for one share of the new company’s stock, while each share of NYSE Euronext will be swapped for 0.47 share of the new company stock.

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Unrest in Egypt Unsettles Global Markets

Unrest in Egypt Unsettles Global Markets

Investors have largely shrugged off several of these unexpected developments recently, including the sovereign debt crisis in Europe, but the situation in Egypt has the potential to cause more widespread uncertainty in Global Markets, especially if oil and other commodities keep surging or the unrest spreads to more countries in the Middle East.

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UPDATE: Egyptian Markets Tumble as Protest Fears Escalate

UPDATE: Egyptian Markets Tumble as Protest Fears Escalate

UPDATE: Violent protests continue to rock Egypt this week, with demonstrators demanding the ouster of the country’s longtime autocratic president, Hosni Mubarak. The tension increased today when Mohammed El-Baradei, a former top official at the UN’s nuclear watchdog agency and a high-profile Mubarak opponent, who had returned to Cairo in a bid to provide a […]

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Japans Sovereign Debt Downgraded, US Next

Japans Sovereign Debt Downgraded, US Next

Standard & Poor’s, a leading credit ratings agency downgraded Japan’s long-term sovereign debt Thursday, a sharp reminder of the heavy financial obligations plaguing one of the world’s largest economies.

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Davos 2011: World Economic Forum Begins

Davos 2011: World Economic Forum Begins

The 2011 annual gathering (Jan 26-30) of the World Economic Forum (WEF), which brings together hundreds of business, political, and finance movers & shakers from around the world, began today in Davos, Switzerland, a renowned winter ski resort for the wealthy and connected.

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