Can Trump stop the Fed?
Only two months ago, Bank Negara Malaysia (BNM or the central bank) painted a sanguine picture on Malaysia’s growth outlook. In the recent policy meeting, however, BNM surprised markets by cutting interest rate by 25bps to 3.00%, apparently on growth concerns. What prompted this change?
read moreAvoiding Turkey Contagion
Developed economies do not have much to fear from the troubles facing Turkey, as economic and financial linkages are relatively weak. However, some emerging markets are being caught up in the contagion.
The basic way to avoid the risk of contagion is to run your economy well. Large current account deficits, high inflation, excessive external borrowing or over-valued exchange rates create a vulnerability that can be exposed when rising US interest rates create uncertainties over access to funding.
read moreYou can bank on it!
Good set of second quarter results; guidance is still positive
Despite trade tensions and the risk-off mode in the market, the three local banks reported a relatively good set of 2Q18 results. More importantly, the guidance is still fairly positive as all three banks expect loans growth to come in around the mid-to-high single-digit level.
read moreSingapore: Manufacturers tip slower growth in 3Q
Moderating momentum for manufacturers
Only a net 7% of manufacturers in Singapore anticipate a more favourable business prospect in 2H18. This is lower than the 13% seen a quarter ago.
A difficult year for Emerging Markets debt
Overall economic backdrop is sound while valuations for Emerging Market High Yield (EM HY) now appear compelling
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