China Data Response Trade & Inflation (Oct.) Over-invoicing continues to distort both China's exports and its imports, but the underlying picture is of healthy foreign demand and subdued demand at home. Meanwhile, the inflation data have... 10th November 2014 · 1 min read
India Economics Update Falling commodity prices to keep inflation subdued The recent sharp falls in local food and global oil prices are likely to have kept both consumer and wholesale price inflation subdued in October. This would strengthen our view that the RBI is likely... 10th November 2014 · 1 min read
Japan Economics Focus Does Japan need to worry about “Hollowing Out”? Rather than harming the domestic manufacturing sector, outward investment by Japanese firms has boosted domestic activity and exports. Accordingly, the growth of offshore investment should not be... 10th November 2014 · 1 min read
Canada Economics Weekly Upward revisions to historical GDP don't improve outlook Although the level of GDP over the past three and a half years has been revised noticeably higher, the more recent growth rates of GDP were left largely unchanged. Moreover, the expenditure breakdown... 10th November 2014 · 1 min read
Canada Data Response Labour Force Survey (Oct.) The stronger than expected employment gain of 43,100 in October, following a massive 74,100 rise in September, is the most encouraging sign yet that the economy may have shifted into a higher gear... 7th November 2014 · 1 min read
Commodities Update What are China’s copper demand indicators saying? Concerns about demand, notably from China, have been one of the key factors cited by commentators to justify recent copper price falls. However, not all indicators of demand are flashing red. As such... 7th November 2014 · 1 min read
Europe Economics Weekly What will trigger ECB QE and when? The ECB suggested last week that preparations are finally underway to launch full-blown quantitative easing. It seems that action will be triggered by either of two factors: evidence that existing... 7th November 2014 · 1 min read
US Economics Weekly Rising wage growth confirms labour slack is shrinking Several factors determine how currency weakness affects firms in different export sectors. Over the past two years, the chemical industry and the car industry have seen the biggest gains in export... 7th November 2014 · 1 min read
UK Economics Weekly Inflation Report set to reaffirm low rate outlook This week’s Inflation Report should confirm that the majority view on the Monetary Policy Committee remains that the economy is still some months away from justifying higher interest rates. Indeed... 7th November 2014 · 1 min read
Japan Economics Weekly Which sector is gaining most from the weaker yen? Several factors determine how currency weakness affects firms in different export sectors. Over the past two years, the chemical industry and the car industry have seen the biggest gains in export... 7th November 2014 · 1 min read
Latin America Data Response Mexico Consumer Prices (Oct.) The pick-up in Mexican inflation from 4.2% in September to 4.3% in October probably marks the peak for this cycle. We expect it to edge down over the rest of this year and think it could reach the... 7th November 2014 · 1 min read
US Data Response Employment Report (Oct.) Although the 214,000 gain in non-farm payrolls in October was slightly below the consensus forecast of 235,000, this was still, on the whole, a strong employment report. In particular, a 638,000 surge... 7th November 2014 · 1 min read
Global Economics Update Is there a case for another Plaza Accord? Although co-ordinated exchange rate intervention is taboo at present, it has been attempted in the past and could, in principle, be tried again in future. Admittedly, both the political and economic... 7th November 2014 · 1 min read
Asia Economics Weekly How big a threat is the weak yen to Korea? The latest increase in asset purchases by the Bank of Japan has caused another weakening of the yen, and created anxiety around the rest of Asia over rising competition from Japanese exports. Given... 7th November 2014 · 1 min read
Latin America Data Response Brazil & Chile Consumer Prices (Oct.) The larger-than-expected drop in Brazilian inflation last month will come as a welcome relief to policymakers but is unlikely to prevent interest rates from rising further over the coming months... 7th November 2014 · 1 min read
