This year has been full of surprises. Commodity prices kicked things off with a steep and unexpected drop before steadily rebounding. Then Brexit happened – or the vote did, at least. The political pandemonium has been prolonged since, with Donald Trump closing in on presidential rival and early-favourite Hilary Clinton.
D. Salvatore, Distinguished Professor of Economics and Director of the Global Economic Policy Center at Fordham University (New York), will examine the prospects and policies for United States, Europe, Japan, China , India, Brazil and Russia to overcome recession and return to rapid growth.
It has been a quite difficult year for stocks markets so far. Despite the barely positive performance of the Standard & Poor’s 500, a modest 4% since January, the European indexes still show an average loss of -7%. Japan is registering a double digit loss, just compensated by a rise in the currency that turns into neutral its performance when calculated in US dollars. The good surprise of 2016 comes from the emerging markets, usually very volatile and vulnerable to global uncertainties. After underperforming for years, the emerging markets are in good shape, in the middle of a bull trend that has started from the major bottom of last January. Since the beginning of 2016, the MSCI Emerging market index, total return in US dollars, has grown 15%, a much more consistent 33% when measured from the January’s low.
Swiss bank UBS plans to incorporate its Mexico banking operations as part of efforts to improve the distribution of resources and reduce costs, according to an internal document seen by Reuters.
Brokerage UBS Casa de Bolsa will assume responsibility next year for operations that are made now by UBS Bank Mexico, according to a memo sent to employees on September 30.
Argentina opened books on a dual-tranche euro-denominated bond, maturing in January 2022 and January 2027 The 10-year issue is being marketed around 5.625% and the 5-year at a yield of 4.5% area.
The issue is managed by BBVA, BNP Paribas and Credit Suisse. Sovereign debt is rated B3 (stable) by Moody’s and B- (stable) by Standard and Poor’s.
Algeria is changing its economy and opening up a market system, the state-owned banks will be listed on the stock exchange and therefore funded by private capital and foreign capital.
The North African country is thus implementing a clear change of direction than in the past, when the organisation was based on a state-run and centralized system since its independence from France and the economy was at 60% on profits derived from petrodollars, ie the proceeds from the sale of oil, which was strictly public.
China is creating the second largest steel group in the world.
According to Chinese media, it could be announced in the week the takeover by Baosteel Group, government-company, China’s second giant of the sector, which would incorporate Wuhan Iron and Steel Group. The two companies are currently in fourth and eleventh place in the world ranking of steel producers and, according to figures by the World Steel Association, combined annual capacity of the two companies in 2015 was around to 60.7 million tons, behind only to Luxembourg-based ArcelorMittal.
The new Brazilian government headed by Michel Temer announced a plan of economic reforms to groped to revive the economy hit by the crisis without increasing public spending.
Temer announced a privatization plan: from the sale of four airports and two harbours to a series of projects such as the construction of new buildings and roads up to the creation of new mines to be entrusted to private companies. "The State can not do everything," the president said during the presentation of the reforms.
