World Archives - FINANCIAL POST

22Apr

By Mike TrudellNo Comments

World

Stupid, it’s the economy.

James Carville, Bill Clinton’s political advisor famously said that when it came to elections it was the economy, stupid. This year’s presidential election is likely to prove no exception. Six months before that election, a constellation of economic risks is building both at home and abroad that could shake markets and cause another inflation spike. It could also precipitate a financial crisis as occurred on the eve of the 2008 election with the Lehman bankruptcy. Last week’s unprecedented and massive Iranian missile and drone attack on Israel underlines the risk that the Middle East conflict could widen in the run up to the presidential election. The war with Gaza is far from over and Hezbollah, an Iranian proxy, keeps firing rockets at Israel. A broader Middle East war could reverse ...

29Mar

By Mike TrudellNo Comments

Asia, World

Why the US Economy Is Booming While China’s Is Collapsing

“Every so often, a grand thesis captures the world’s imagination,” began an article in the The New Yorker in 2008. “The latest … is that America’s time of global dominance is finished, and that new powers, such as China, India, and Russia, are poised to take over.” There has been no shortage of optimism about China since, like a 2011 Foreign Affairs headlined the “The Inevitable Superpower” and a 2018 piece from The Economist that “The Chinese century is well under way.” What a difference the past few years have made. Conventional wisdom that China’s economy would eclipse the U.S. in a decade—maybe even sooner—is looking uncertain. The view that China was the emerging geopolitical power, with developing nations tucked under its wings, is looking similarly shaky. It is now unclear wheth...

In Asia, Where Digital Banks Can Make An Impact

29Mar

By Joe RodriguezNo Comments

Asia, World

In Asia, Where Digital Banks Can Make An Impact

Digital banks have sprung up across Asia in recent years. In many cases, they are having little impact on the overall banking market. Affluent societies like Singapore, Hong Kong, Japan and Taiwan are not lacking banking options. Even middle-income countries like Malaysia and Thailand have limited financial inclusion needs. Yet in certain countries that are less affluent, and where the financial system is still underdeveloped, digital banks can play an important role in boosting financial inclusion. This is the case in several Southeast Asian and South Asian countries. The Biggest Southeast Asian MarketIn a population of more than 275 million, Indonesia is estimated to have well over 100 million people who are unbanked or underbanked. Further, the unique island geography of the coun...

China Will Lead Global Economic Recovery, According to a Senior Communist Official

28Mar

By Walter ParezNo Comments

China, World

China Will Lead Global Economic Recovery, According to a Senior Communist Official

Brushing off domestic economic headwinds, a top Communist Party official said Thursday that China aims to drive the world’s recovery this year by pushing forward reforms and making tech innovation a new point of growth. The remarks from Zhao Leji, who chairs the Standing Committee of the National People's Congress, come as foreign investment in the country is falling and it grapples with issues that include high youth unemployment, ballooning debt and a crisis in the property market. Speaking to businesspeople and other leaders at the Boao Forum for Asia, Zhao said China welcomes "all countries to board the express train of China's development." Zhao said tech innovation, particularly through green technologies, would be a key point of economic growth. He also said that China ...

China’s economy is undergoing a great transition rather than a great decline.

27Mar

By Michael SmithNo Comments

Asia, World

China’s economy is undergoing a great transition rather than a great decline.

China's near-term challenges and long-term uncertainties are plentiful, but the widespread pessimism towards the Chinese economy and markets feels excessive. We think the country's in a necessary transition rather than in any long-term decline. Understanding the challenges and timescale is key for investors China's economy has reached an important crossroadsChina's economy has reached an important crossroads after undergoing one of the most impressive growth miracles of modern history. In rapidly moving financial markets, participants are understandably focused on short-term trends and developments. But it's crucial to sometimes take a step back and look at a longer time horizon when it comes to formulating a big-picture strategy, not least in terms of asset allocation. The short-te...

26Mar

By Michael SmithNo Comments

Asia, World

Is Pakistan in Danger? The condition of the country’s economy, democracy, and ties to the US

In this episode of Need to Know, we focus on Pakistan's political and economic situation, as well as its relationship with the United States. Michael Kugelman, Deputy Director of the Wilson Center's IndoPacific program, covers topics such as the health of democracy in the wake of the recent election, the country's ongoing economic crisis, and the value of US support for democracy and human rights. Kugelman highlights the challenges and complexities facing Pakistan and provides insights into the current state of affairs. Pakistan's democracy is facing challenges, with increasing crackdowns on the opposition and concerns about electoral irregularities.The country is dealing with a severe economic crisis and is seeking a loan from the IMF to stabilize its economy.US support for democracy ...

Pakistan wants an extended IMF bailout to repair its damaged economy.

25Mar

By Michael SmithNo Comments

Asia, World

Pakistan wants an extended IMF bailout to repair its damaged economy.

Prime Minister Shehbaz Sharif's coalition government has its work cut out as economic turmoil forces it to tackle deep-rooted structural problems. Pakistan has long been in a state of grave economic turmoil. Political instability, corruption, mismanagement, the COVID-19 pandemic, a global energy crisis and climate change-induced natural disasters have all taken a heavy toll on the economy. Prime Minister Shehbaz Sharif's newly-formed government is currently seeking another bailout from the International Monetary Fund (IMF) to tackle the country's acute balance-of-payments crisis. "We couldn't survive without yet another IMF program," Sharif told a meeting in the Pakistani capital, Islamabad, last week that was broadcast live. His comments came a day after the IMF agreed a p...

22Mar

By Brian ThompsonNo Comments

Asia, World

The Growth of Banks in Indonesia

The sector has made a roaring recovery since the doldrums of the Asian Financial Crisis of the late 1990s. In the late 1990s, during the Asian Financial Crisis, the Indonesian banking sector essentially collapsed. The crash of the rupiah pulled back the curtain and revealed that the balance sheets of many banks were stuffed with bad loans. Many of them went under, or had to be rescued and recapitalized by the government. Four such failing state-owned banks were merged into a new entity in 1998, which was re-named Bank Mandiri. Today, Bank Mandiri is the largest bank in Indonesia with $138 billion in assets and net income in 2023 of around $3.9 billion. Indonesia’s banking sector is dominated by state-owned banks and has rebounded pretty well from the doldrums of the Asian Financial ...

China strengthens laws governing consumer credit firms

19Mar

By Michael SmithNo Comments

China, World

China strengthens laws governing consumer credit firms

The measures announced by the National Financial Regulatory Administration on Tuesday will come into effect April 18.The new rules stipulate that firms eligible to provide consumer loans — excluding those for home and car purchases — need to have a minimum registered capital of 1 billion yuan ($139 million).It comes at a time when Beijing is tightening its grip on the financial sector. China has tightened the screws on consumer finance companies, raising the capital limit for non-bank financial firms which provide small personal loans. The measures announced by the National Financial Regulatory Administration on Tuesday will come into effect April 18. It comes at a time when Beijing is tightening its grip on the financial sector. The new rules stipulate that firms eligible to ...

The Range (and Boundaries) of China’s Economic Power

18Mar

By Brian ThompsonNo Comments

China, World

The Range (and Boundaries) of China’s Economic Power

Economic interdependence in the Asia-Pacific and beyond has facilitated China’s use of economic statecraft – the manipulation of trade or investment ties for political purposes. Beijing has become more active at using both coercion and inducements in attempts to shape the actions of governments as well as companies. While China’s economic statecraft has altered the strategic calculations for many countries and could have far-reaching implications for the trajectory of great power competition, Chinese influence is not a foregone conclusion. Beijing has encountered considerable pushback and often shot itself in the foot, suggesting that U.S. policymakers need not be overly concerned about undue influence. At the same time, the diffuse lure of economic interdependence remains a powerful d...

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