Germany: CDU/CSU reach coalition agreement with SPD
As Bloomberg reported, German Chancellor Angela Merkel and the Social Democrats reached an agreement on a coalition that would introduce a national minimum wage and increase spending on pensions and infrastructure, without raising taxes.
Brazil: Brazil’s Economy Stumbles Towards 2014
The Rio Times highlights the successful auction of Rio’s Galeao airport last week as a bright spot in an otherwise highly disappointing year for the Brazilian economy. Decreased foreign investment, delayed infrastructure projects and widespread popular upheaval have dragged on economic growth in 2013. Political uncertainty regarding the 2014 presidential election has added to the concern and forecasts for the year have been downgraded, despite the boost expected from the World Cup.
Thailand: Thailand Unexpectedly Cuts Rate as Protests Crimp Outlook
Bloomberg reports that the Bank of Thailand unexpectedly decided to cut its base rate from 2.50% to 2.25%. The decision comes amid ongoing anti-government protests which can threaten domestic demand as well as investors’ confidence.
China: Edging local governments out of the land market
Yet another interesting article by Chine Economic Review on the expected land reform in China and its effects on regional government finances. The process of opening rural land to the market must be a delicate one: Tenacious enough to better the lives of farmers while not pushing local governments deeper into debt.
China-USA: U.S. B-52 bombers buzz China’s expanded airspace as dispute with Japan escalates
The Washington Post reports that two unarmed B-52 bombers flew over China’s newly-declared Air Defense Identification Zone, rising tensions in the region.