The Turkish Central Bank raised interest rates drastically on January 28, re-setting the one-week bank lending rate at 10 percent, up from 4.5 percent, and hiking its rate on overnight lending to banks from 7.75 percent to 12 percent. The move has ramifications for America’s influence in the world. In Turkish politics, […]
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.
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.
Global Markets were shorting US futures after the results of US national elections, where the Republicans gained control of the House of Representatives, and made gains in the Senate – though Democrats are still in control. The Markets are looking ahead to Fed QE policy and the G-20 meeting in South Korea later this week.
Political and sovereign debt risks in Spain, conflict in the Korean peninsula and US economic uncertainty send global markets tumbling in May.
Although most projections show a continuation of positive growth in 2010, questions about the strength and sustainability of the recovery remain. To provide an economic outlook for the new year, the Carnegie Endowment on 5 Jan, hosted a distinguished panel of the heads of the economic forecasting unit at their respective organizations.
Ian Bremmer, President of the Eurasia Group, a political risk advisory firm, provides a ‘bird’s eye’ overview of the impact of the Obama foreign policy agenda — the “New Era of Engagement” doctrine — on the world, on U.S. corporate competitiveness and on global markets.
As European & Canadian companies retreat from NYSE listings, Emerging Market companies change complexion of U.S. stock markets, and thereby drive performance of U.S. market performance.
A synopsis of U.S. Economic Foreign Policy issues on the agenda as global leaders gather for the 64th U.N. General Assembly; and kudos to Foreign Policy & the Global Economy from the NYT’s ‘The Caucus’ blog.