Three factors are driving risk perceptions among financial investors and undermining the stability of the Turkish lira (TRY): 1. Public debate over economic theory A public disagreement between economists and political authorities over the relationship between interest rates and inflation…
The Surging US Dollar & What it Means for Emerging Markets
Emerging market economies from Turkey to Indonesia were rattled last year as investors worried about the impacts of the U.S. Federal Reserve tapering their quantitative easing (QE) program. Now a similar story is playing out following the US Federal Reserve’s…
Even Good Monetary Policy Cannot Solve Europe’s Problems
Mario Draghi, ECB President (Image: Mario Vedder/AP) After the European Central Bank (ECB) cut interest rates into negative territory in June, we asserted that central banks act when expectations miss to the downside. Once again, today was the rule and not…
If China Slows: Prepare for Disruption in EMEA Business
The dragon’s breath is losing steam – increasing wages, mounting social tensions and unprecedented political transformation are all putting strains on the Chinese economy. GDP growth figures for 2014 have fallen from 7.5% to 7.3%, with downside scenario forecasts for…
Emerging Markets View: What Our Analysts Are Reading
Emerging markets are caught between the rebound in risk appetite and an appreciating dollar, according to Business Insider. Sam Osborn, Practice Leader for FSG’s Global Analytics, agrees with the article’s sentiment. “The catalysts of global currency volatility are primed to…
Urgent Needs for Talent Management in ASEAN
Talent-related Challenges are on the Rise in ASEAN Numerous reports consistently highlight skill deficits as a major ASEAN concern. The Economist Intelligence Unit (EIU) also noted that the lack of labor and talent was causing significant issues for employers in…
Trouble in Portugal reminds us that the eurozone’s woes are far from over
Executives should be wary of headlines for recovery in Western Europe, and prepared for the heavy downside that Europe’s fragile political and economic order could experience. Although news media highlight positive aggregate growth (the eurozone is forecast to grow 1.2%…