Highlights US labor-market disappointments notwithstanding, the global recovery being propelled by real GDP growth in the world's major economies is on track to be the strongest in 80 years. This growth will fuel commodity demand,…
Highlights We continue to recommend that dedicated EM equity portfolio investors overweight Korean equities. Overweighting the KOSPI within an EM equity portfolio is in line with our long-term theme of favoring global industrial…
Chinese producer prices surprised to the upside in May, jumping to a 13-year high of 9.0% y/y from 6.8% y/y, above the expected 8.5% y/y. Meanwhile, inflationary pressures were much more muted for Chinese consumers. The 12.0%…
Highlights In the near term, the RMB against the US dollar has ceased to be a one-way bet. Market sentiment will re-focus on economic fundamentals, which are less supportive of further RMB appreciation. In the longer term, the…
China’s trade surplus widened for the second consecutive month in May, rising to $45.5 billion from $42.9 billion. Exports decelerated to 27.9% y/y from April’s 32.3% y/y, while imports accelerated to 51.1% y/y from…
Highlights Asset Management Regulation (AMR) represents a critical and successful structural reform that is defusing risks in the most hazardous parts of China’s credit system. This bodes well for long-term sustainability of the…
Highlights Political and corporate climate activism will increase the cost of developing the resources required to produce and deliver energy going forward – e.g., oil and gas wells; pipelines; copper mines, and refineries. Over…
The PBoC announced on Monday that it will raise the reserve requirement ratio rate for FX deposits at financial institutions –the first FX deposit RRR rate hike in 14 years – effective on June 15. The RMB fell by a…