From 1985 Plaza Accord to 2017 'Trump Tower Accord'?

♠ Posted by Emmanuel in , at 11/30/2016 05:29:00 PM
Like Macaulay Culkin, foreign exchange markets circa 2017 may need some direction from Trump. Too strong a US dollar is not usually good for the rest of the world economy, but that's what we have at the moment with widespread expectations that the United States will hike interest rates faster with a "President Trump." As growth is expected to ramp up through pump priming, the dollar has strengthened accordingly. A casualty since the November 8 election result has been emerging markets--currencies, bonds, stocks...you name it. Not only do they have to deal with an increasingly more attractive US market, but there's also...
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Life at Samsung's Vietnam Factory After Galaxy Note 7

♠ Posted by Emmanuel in , at 11/23/2016 06:00:00 PM
No thanks to Galaxy Note 7, it won't be a very merry Christmas in these parts. The recall of Samsung's Galaxy Note 7 worldwide for its battery catching fire has damaged any number of things including Samsung's sales and profits, Samsung's reputation (though some would say less than you think) and...Samsung's hiring of local workers at its Vietnam assembly plant[s]. Nearly a third of Samsung's assembly operations are now being handled in the lower-cost Southeast Asian destination. Obviously, hopes were high that business would pick up at year end when retail demand is highest for the Christmas season. However, what we instead...
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Korea, Japan Try to Save Their Shipping Industries

♠ Posted by Emmanuel in at 11/21/2016 04:53:00 PM
It's better to merge than to fade away: the tale of global shipping. It is no big secret that the global shipping industry is currently encountering difficult conditions. The bankruptcy of Korean shipping giant Hanjin points out how overcapacity--too many ships have been built in expectation of rising shipping demand worldwide in recent years that didn't materialize--has dented the fortunes of this industry. Supply exceeds demand, and correcting the oversupply has not been a pleasant process for those involved. Given its crucial place in ensuring that goods manufactured in East Asia get to consumer markets elsewhere,...
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Economic Folly: Thai Rice Subsidies Never Die

♠ Posted by Emmanuel in , at 11/19/2016 05:13:00 PM
The importance of rice production to the Thai economy cannot be overstated. In the past, I have discussed [1, 2] the current ruling junta's efforts to punish the overthrown Yingluck Shinawatra for her abuses in overpaying for rice to buy the favor of those in rural communities. Appallingly, however, the same junta is now planning to implement another rice subsidy program. This while it is busy pursuing the prosecution of Yingluck Sinawatra. The junta's calculations are aimed at regime survival. With rice prices at multi-year lows and the recent death of longtime figurehead King Bhumipol, it needs to prop up its domestic...
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Will Apple Supplier Foxconn Make iPhones Stateside?

♠ Posted by Emmanuel in at 11/18/2016 11:56:00 AM
If Apple supplier Foxconn starts assembling iPhones Stateside, Tim Cook may not need to visit China anymore. Despite the US stock markets rising since the election of Donald Trump due to expectations that he will inject massive amounts of stimulus into the economy, a notable laggard has been Apple. Like other technology companies with supply chains that are extensive in Asia, Trump's protectionist rhetoric has been of concern to investors. That is, will punitive tariffs be applied to practically all the things Apple sells since most of it is made in the Far East? (Is that now the Fear East?) The Nikkei Asian Review has...
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Trump Makes America #1 Environmental Rogue Regime Again

♠ Posted by Emmanuel in , at 11/13/2016 05:32:00 PM
Welcome to the coalface, circa 2016 in TrumpWorld. As a lover of conspiracy theories, Donald Trump famously said that climate change is a hoax perpetuated by the Chinese (nevermind that they're now the world's largest carbon emitters, but hey, what's logic gotta do with it?) What are the consequences of this belief? Initially, Trump may withdraw the United States' participation in the Paris Agreement. Oddly enough, the Chinese--once the most obstructive of countries on dealing with the issue--are now cautioning Trump on junking the agreement at the ongoing UNFCCC Conference of the Parties in Morocco: In a sign of how far...
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To *Really* Escape Trump, Yanks Should Move to Bhutan

♠ Posted by Emmanuel in at 11/11/2016 11:01:00 AM
Americans fleeing TrumpLand are well-advised to consider splendidly isolated and beautiful Bhutan (pop. ~760k). While the election of Donald Trump as US president was as shocking to me as it was to the rest of the world, something else struck me as equally baffling: Americans unhappy about this turn of events--his opponent won more votes overall, remember--began crashing websites for immigration to Canada and New Zealand. I presume that they were looking for Anglophone nations to move to with generally liberal social orientations. However, consider that these countries are part of the "Five Eyes" intelligence consortium,...
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Beautician 1, Brexit 0: EU's Turn to Stop It

♠ Posted by Emmanuel in , at 11/03/2016 03:45:00 PM
The pound flies after the court decision was released requiring parliamentary approval of Brexit. A few months ago I featured a story on the legal challenge mounted by British hairdresser Deir Dos Santos concerning the need for UK parliamentary approval to commence on the process of exiting the European Union. In EU jargon, this is known as the Article 50 process. Today, the ruling was issued in favor of Deir Dos Santos and against Prime Minister Theresa May who intended to serve Article 50 to the EU by March of 2017. My belief is that this is not a mere "technicality" on the road to Brexit. Instead, requiring parliamentary...
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