Top Trump or Trump Top

In his first speech to the US Congress, US President Donald Trump lamented that many foreign companies pay almost nothing when they ship their products into America. This is a hint that Mr Trump may impose a border tax adjustment (a tax on imported goods to US), so as...

Mrs Watanabe is exuberant when Abe and Trump are BFF

Yen carry trade has returned in a big way with the DollarYen currency climbing 17.3% to its recent peak of 118.66 from its November low. This has unleashed a rally in equities especially among the Developed Markets. Within Asia, Japan Nikkei Index was the top...

New China vs Old China

The long-awaited Shenzhen-Hong Kong Stock Connect (SZ Connect) will be launched on 5 December where a two-way trading link between the two exchanges will be established. More stocks will be available for trading for investors in the 2 cities. For Northbound investors,...

Soft-lending for soft-landing in China

The Chinese government is aiming to achieve a soft-landing in its economy by bringing down corporate leverage via innovative reforms such as the debt-for-equity swap (DES) policy. The reform is similar to “soft lending” where bad loans are exchange for equity. We...

Is Janet Yellen’s job safe?

While there has been much talk about automation and robots taking jobs away, we attempt to throw a playful analysis as to whether Janet Yellen’s job as the current Chair of the Federal Reserve is safe – a job presumably no robots will be able to replace easily (for...

Markets are Fed-up: Hawks vs Doves

The recent global markets selloff was triggered by increased uncertainties surrounding Fed’s policy stance. There have been conflicting viewpoints among Fed officials whether a rate hike is necessary in the upcoming FOMC meeting on 20-21 September. Each time a Fed...

Is “Lie-bor” lying?

The 3-month London Interbank Offered Rate, LIBOR, has surged to a seven-year high of 0.825%, up 21 bps this year. It has been climbing steadily since the Federal Reserve raised interest rates last December. At the end of June, the BREXIT trigger further aversion to...

Greenback to Redback

We all have our favourite colours. But some colours symbolise different meanings in China and US. For instance, Red symbolises prosperity in China in contrast to the meaning of danger in US. Colours also have different associations for the financial markets. In China,...

Candy Floss Money

Monetary policy has taken centre stage since the Great Financial Crisis in 2008. This has resulted in a tidal wave of liquidity into the financial markets. The exaggerated form of liquidity is “candy floss money”, a term coined by Financial Times to describe how...