Emerging Markets: The 3 culprits behind the emerging markets rout
CNBC discusses three major factors behind the shakiness in emerging markets: fears over a slowdown in the Chinese economy, Argentina’s decision to stop intervening in the foreign exchange market in order to preserve international reserves, and ongoing fears over the impact of Fed tapering.
Japan: Japan reports record annual trade deficit
According to the BBC News, Japan registered a record annual trade deficit. After the nuclear crisis in the aftermath of the tsunami and earthquake that took place in 2011, Japan has seen its imports of energy increasing. The strong expansionary monetary policy that the Abe administration is putting in place, the weakening of the yen is making imports more expensive, helping the trade balance to reach record deficits.
Thailand: Thai Election Commission suggests minimum one month vote delay
Reuters reports that Thai Election Commission suggested that the elections planned for 2 February should be delayed at least one month due to the ongoing violet protests. However, on 27 January the commission will meet the Prime Minister to discuss the election day.
China: China Averts Mega Default of a Shadow Trust Loan
China Credit Trust Co. has reached an agreement to restructure a CNY 3 billion (USD 500 billion) loan investment trust loan, which had sparked concerns about the health of the country’s financial industry, Caijing reported.