In The News

David Francis March 4, 2013
Investors are less intent on pursuing cross-border profits, investing in overseas endeavors. A McKinsey Global Institute report measured money in the global financial system before and after the 2007-2008 financial crisis: In 2007, $11.8 trillion in investments and loans crossed borders; the figure for 2012 is $5 trillion. “McKinsey hedges the report by saying that some of the capital removed...
Niveen Wahish February 15, 2013
A thriving national economy requires a political system that’s supported, or at least tolerated, by citizens. Political instability is threatening the Egyptian economy, driving inflation and deterring foreign investment. Currency woes contribute to shortages of basic commodities that could add to more unrest. “People needing to change hard currency into Egyptian pounds are now going to the black...
Haroon Bhorat, Morné Oosthuizen, Anne Kamau February 1, 2013
Labor unrest does not attract foreign investment. South Africa must subdue strikes in its mining industry before unrest spreads to other sectors while addressing the challenges of a high unemployment rate and dire poverty, argue researchers Haroon Bhorat, Morné Oosthuizen and Anne Kamau. South Africa is the world’s biggest producer of gold and platinum. The strikes are both reducing gold and...
Jamil Anderlini, Gwen Robinson January 28, 2013
A gas pipeline extending from the Indian Ocean through Myanmar to Southwest China is scheduled to begin pumping before summer. “At present, about 80 per cent of China’s crude oil imports are transported through the strategically important Strait of Malacca, but the new oil pipeline is expected to reduce China’s reliance on that route by about one-third,” report Jamil Anderlini and Gwen Robinson...
Russ Koesterich January 21, 2013
The gridlock in US Congress, its reliance on last-minute, short-term fixes for well-documented problems, is reducing confidence, threatening credit ratings and low interest rates for borrowers, worrying investors and decreasing tax revenues. So far, opposing parties in Congress refuse to compromise on substantial reform of the US tax code or costly entitlement programs, especially costly health...
Anna Beth Keim, Sulmaan Khan January 18, 2013
China and Turkey are taking steps to reinvigorate their relationship and role as strong bookends to the Asian continent while encouraging new connections along the routes of the ancient Silk Road network. The two countries aim to boost bilateral trade to $100 billion by 2020, and plans are underway to connect Ankara and Beijing by rail. But there are complications, too. Turkey, NATO member, also...
Deepak Gopinath October 24, 2012
China aims to be more than an assembly line. The government is actively rebalancing its economy to exit industries dependent on raw materials and labor, and that provides great opportunity for China’s neighbors in two ways, explains Deepak Gopinath, global markets director for Trusted Sources, an emerging-markets consulting firm. Neighboring economies can pick up the slack in low-value industries...