Asia’s corporate debt exceeds the US and UK, and global consultancy McKinsey has warned on the growing risk of an Asian debt crisis.
Benign short-term prospects for the global economy should not disguise the problems in store caused by the recent build-up in sovereign borrowing, according to Indosuez Wealth Management’s research head.
China has been under scrutiny the past few weeks, and it seems industry sources have a growing concern over the government’s economic reform efforts.
China’s recent move to weaken the currency was not to boost exports but to address the governments worries over deflation, according to Momentum Global Investment Management.
HEAD-TO-HEAD. The global fixed income market is undergoing a period of high volatility. While the European authorities are in final negotiation stages to save Greece from a potential default, the US looks set to hike interest rates sometime this year.
Current market volatility is due to uncertainty around the start date, Rieder said. He disagrees with conventional opinion that all emerging markets will be under pressure once the US Fed moves to hike rates later this year. Rieder believes a 25 basis point rate rise will come in September and further hikes will be cautious […]
The lack of savings can be attributed to both demographics and a surge in consumption that preceded the value added tax rate hike in April 2014, said Govinda Finn, head of global strategy. Japan’s population is burning through savings as they enter retirement age, and the average savings rate for age 65 and older is […]
Popular mis-characterisations of debt, deflation and QE result in a distorted picture of macroeconomic investment risks, said Kevin Gardiner, global investment strategist at Rothschild Wealth Management.