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Venezuelan Economic Slump To Deepen As Economy Is Crashing 9% And Inflation Over 1,000%: Barclays
The situation in Venezuela is bad, and things are going from bad to worse — as we have highlighted and warned about repeatedly — amid the tumble in the price of global oil, a plunge in the nation’s currency and reserve currencies, consumer goods shortages, hyperinflation, a selloff in emerging markets, a global market selloff. You get the picture. Last … Continue reading
De-Dollarization: Russia Wants Firms To Default On Western Loans, Ban Firms From Using FX/FX Loans
By Pepe Escobar Let’s start with some classic Russian politics. Finance Minister Anton Siluanov is drawing up Russia’s economic strategy for 2016, including the government budget. Siluanov – essentially a liberal, in favor of foreign investment – will present his proposals to the Kremlin by the end of this month. So far, nothing spectacular. But then, … Continue reading
Venezuela: Risks Of Default And Social Unrest Grow Amid Hyperinflation
In Venezuela, things are going from bad to worse amid a tumble in the price of global oil, a plunge in the nation’s currency, consumer goods shortages, and hyperinflation combined with a social and political upheaval which could undermine the country’s willingness or ability to pay its external debt, Jefferies warns. Venezuela relies heavily on oil, as it accounts for … Continue reading
Despite Elections, Argentina’s Economic Trajectory Is Set
Regardless of election outcomes in October, Argentina’s next government will begin liberalizing its economy, potentially loosening restrictions on the repatriation of funds, reducing the enforcement of price controls and reducing subsidies. Despite slight changes to Argentina’s regulatory framework, the government will continue to bar some investment and businesses to stem capital flight and to maintain … Continue reading
A Look At The World’s Riskiest Sovereign Debt
Here is a look at the world’s riskiest sovereign debt in a map courtesy of Bank of America Merrill Lynch (BoA-ML) in a publication titled “Transforming World Atlas“. The map by BoA-ML uses the prices of Credit-Default Swaps (CDS), which financial contracts which measure the risk of default on sovereign debt; the higher the spread, the greater the risk of … Continue reading
A Rush Before The Fed — Why Have EM’s Issued So Many Bonds In Foreign Currencies?
By Erik Feyen, Swati Ghosh, Katie Kibuuka, and Subika Farazi In the wake of the Global Crisis, various developed economies pursued unprecedented, extraordinary monetary policies (EMPs) to rekindle domestic economic growth and battle disinflationary pressures. This was done mainly via (promises of future) ultra-low policy rates and large-scale asset purchasing programmes (LSAPs) designed to lower long-term … Continue reading
In Argentina, The Sun Is Finally Setting On The Kirchner Era
Argentina’s open presidential primary is over, and the stage is now set for the election in October. With the current president, Cristina Fernández de Kirchner, constitutionally barred from running again, the autumn poll looks set to be a fight between Argentina’s two main political coalitions. On the left is Daniel Scioli, the current governor of … Continue reading
Greek Crisis: Why The Athens Stock Exchange Plunged On Reopening The 3rd Of August
After five weeks of closure, the Athens Stock Exchange reopened on Monday and immediately the trend went sharply down. Investors do not believe that a recovery of the Greek economy could occur soon. Greece’s stock market reopened after five weeks to the most savage wave of selling in decades, underlining a crisis that’s crippled the … Continue reading
Puerto Rico Defaults On Debt For The First Time In Its History
Puerto Rico has defaulted on its debt obligation for the first time in its history. On Monday, Puerto Rico paid a mere $628,000 toward a $58 million debt bill that was due to creditors of its Public Finance Corporation (PFC) in a risky move that will intensify pressure on creditors for a broader debt renegotiation, and will likely make future … Continue reading
Greek Manufacturing Industry Collapses In July
The Greek manufacturing industry fell at a record pace and collapsed in July amid capital controls and as uncertainty grows over the country’s future relationship with the Eurozone. A manufacturing gauge by Markit Economics, known as the Purchasing Managers’ Index (PMI), showed that Greek manufacturing plunged to an all-time low of 30.2 in July, from 46.9 in … Continue reading
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