Governatives

The exit of Britain from the EU would trigger a ” prolonged period of high uncertainty ”, with negative consequences for economic growth of the country, this is the summary of the IMF report presented in London by the Director Christine Lagarde.

Among the consequences ” negative and substantial ” which listed Lagarde there are the depreciation of the pound, the decline in investment, market volatility, with direct repercussions on employment. ” In any country have gone in the past six months, all the leaders have asked me about the economic consequences of a Brexit ”, Lagarde said, stressing that the Fund does not intend to enter the political debate on the referendum.

Replying to a question in a letter to Democratic Congressman Brad Sherman, Janet Yellen, president of the US central bank said the hypothesis of negative rates can not be ruled out entirely, but that should be carefully studied. "Although not completely rule out the use of negative interest rates in some future scenario extremely adverse, you should consider a wide range of issues before you use this tool in the United States, including potential unintended consequences," as reported in the letter.

Yellen, optimistic about recovery, explained that if economic conditions deteriorate, "the Fed will adjust its policy appropriately to support progress towards its goal of long-term maximum employment and stable prices."

Prices for imported goods rose for the second straight month in April, a sign firming oil prices could be pushing up inflation pressures in the U.S.

As measured by the US Bureau of Labour Statistics, import prices rose in April by 0.3%, after + 0.3% in March and revised -0.5% in February. The figure is worse than expected by analysts which estimated a more marked rise of 0.5%. On an annual basis, there was a 5.2% fall in prices.

Net oil imports the import prices recorded a 0.1% rise, representing an annual decline of 2%. The recovery of agricultural and non-agricultural prices has had a positive impact on the price index for exports which rose 0.5%, after remaining unchanged in the previous month, after falling 2.3% in February.

The Brazilian Senate has voted in favor of impeachment of Dilma Rousseff, 55 votes to 22. The suspension from office of the first woman president goes down, after 13 years, even the leadership of the Workers Party, which began with the election of Inacio Lula De Silva. Suspended from office for 180 days, period within which will be processed, Dilma Rousseff will be replaced immediately by Vice President Michel Temer. That in the event of dismissal of Rousseff and if not you will go to early elections, will complete the presidential term will end January 1, 2019.

The verdict came after a lengthy parliamentary debate that lasted 16 hours without interruption. The charges against Dilma Rousseff are based on the alleged irregularity of some fiscal measures the government between 2014 and 2015.

In Venezuela, the economic situation is near collapse: the lack of basic necessities has become so serious that in recent days there have been several outbreaks of violence, starting from the state of Cabobo, where some demonstrators blocked for hours and for second consecutive day, the highway accesses that connects Valencia to Puerto Cabello to ask, first of all, that the national government to restore the drinking water supplies. Only the intervention of the National Guard allowed to remove roadblocks.

The conditions of the Japanese economy even worse, as indicated by leading indicators, summary indicator of the state of the Japanese economy.

According to the preliminary estimate by the Cabinet Office, the figure for March is expected to be 98.4 points down 0.5% compared to 98.9 points in February. The figure, revised up from the previous estimate of 96.8, was higher than market expectations were for 96.4.

In the same period, the coincident index is estimated to rise to 111.2 points from 110.7, confirming an improvement of the current conditions, while the deferred index (lagging index) is expected to fall to 112 from 113.8 and indicates a deterioration in the outlook for the next 12 months.

For most investors, Pakistan is not an investment destination being considered in their investment process. But soon MSCI, the biggest index provider globally, may bring that to a sudden change. On June 14th, MSCI will announce its decision whether to upgrade Pakistan from the current frontier market classification to emerging market classification or not. In the case of a positive decision, emerging markets funds with an estimated 40x the capital of frontier funds will be forced to have a look at the 180 million population nation on the border between Asia and the Middle East.

The Eurozone takes time on the subject of Greece, being the EU, subject to the test of the crisis of migrants and the risk of a ‘Brexit’ in late June. However, the situation is not simple: Greece is still lagging behind the partner requests and the extraordinary meeting ends with virtually a stalemate, by updating to May 24. But some progress there: after Athens approved the pension reform and a new round of cuts and taxes, the ministers begin formally to discuss the rescheduling of the Greek debt, while continuing to exclude a reduction and by subordinating everything to the completion of the measures provided for in the Memorandum.