Salient to Investors: William Pesek writes: Asia sits on almost $7 trillion in currency reserves, much of it in dollars as its central banks engaged in a kind of financial arms race after a 1997 crisis. Asia now has more weapons against market unrest than it knows what to do with
READ MORE... →Salient to Investors: William Pesek writes: Najib kept his Malaysian coalition in power with a giant spending spree that included smartphone rebates for youths, household electricity subsidies and higher wages for civil servants. Fitch said Malaysia’s public finances are its key rating weakness. It will be difficult to achieve the 3
READ MORE... →Salient to Investors: William Pesek writes: Concerns that China is heading into a turbulent period are soundly based. No one knows if China is cascading into a crisis, not even Premier Li Keqiang. In July, the Broad Group broke ground on the world’s tallest building, expecting to build it in 90
READ MORE... →Salient to Investors: William Pesek writes: Abe’s economic plans draws heavily on Reaganomics: welfare-spending cuts, debt-swelling tax reductions for the wealthy and corporations, deregulation, a lowering of trade barriers, and reforms that make it easier to fire workers. As in the US, these reforms could hollow out the middle class and
READ MORE... →Salient to Investors: William Pesek writes: Rampant political dysfunction has stopped India’s progress cold. India is in a self-destructive pattern of relenting on the big issues, then killing would-be investors with the details. The lack of transparency and reliability makes it virtually impossible to consider long-term investments in India. India is proving
READ MORE... →Salient to Investors: William Pesek writes: Japanese economists and cheerleading media now seem to realize they bought into Abenomics too hastily We are a long way from knowing if China Premier Li has the skill or political will to put China onto a more sustainable growth path, led by domestic
READ MORE... →Salient to Investors: William Pesek writes: Japanese voters seem ready to hand Abe one of the bigger blank checks in memory, so may be setting themselves up for buyer’s remorse. Japan has a fast-aging population, the world’s biggest public debt, a skyrocketing energy bill, and a pension time bomb. The idea of unfettered competition
READ MORE... →Salient to Investors: William Pesek writes: The best way to approach China’s GDP figures is ignore them – they are much worse than they appear. Industrial production rose just 8.9 percent in June versus 9.2 percent in May, anemic for an export-addicted, developing economy, and will crimp consumption and income growth in half2
READ MORE... →Salient to Investors: William Pesek writes: Thailand has 5.3 percent growth, a young and expanding population, and a surprising level of political stability. Yet Thailand has subsidized rice prices, provided handouts to car buyers and favored mega projects that will enrich the politically connected – all at the expense of long-term
READ MORE... →Salient to Investors: William Pesek writes: Tadashi Yanai has become Japan’s richest man largely because of his success at expanding abroad. Japan Inc. has traditionally failed to excel at taking risks and speaking English when going global. Conservative forces still dominate Japan, Inc. Enough top executives have successfully challenged the
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