Emerging Markets: India’s Central Bank Governor blames US taper for financial turmoil
The Reserve Bank of India governor Raghuram Rajan claimed that the tapering of financial stimulus that the Federal Reserve accelerated this week has caused turmoil to emerging markets’ currencies. Rajan also said that emerging markets were the drivers of the economy in the crisis years and asked the Fed to remember this, as The Guardian has reported.
Japan: Manufacturing PMI at 8-year high
As reported by Reuters, Japanese manufacturing activity grew in January at the fastest pace in nearly eight years as new orders for goods expanded at a record rate, a sign of robust domestic demand before an increase in the sales tax in April.
Philippines: Five reasons to be positive on the Philippines
CNBC reports that GDP growth of 6.5% in Q4 was higher that expected despite the impact of Typhoon Haiyan. Moreover, the Philippines appears to be in a strong position for continued growth. A large current account surplus, high foreign exchange reserves, strong fiscal position, and favorable demographics all play in favor of the Philippines.
United Kingdom: U.K. Consumer Sentiment Rises to Highest Since Northern Rock Run
Bloomberg reports that consumer confidence in the UK reached the highest level in more than six years, in January. In the full year 2013, a measure of Britons’ assessments of the general economic situation in the country rose 6 points to minus 20. This is good news for the Prime Minister David Cameron who needs a consumer revival to win a second term in May next year.
China: The impact of reform on growth
Yet another brilliant article by Michael Pettis, in which he argues that the proposed reforms by Chinese authorities will certainly unleash greater productivity. Reforms also eliminate the mechanisms that had previously turbo-charged economic activity, but they will also cause a sharp deceleration in economic activity.