Global Economy

GST and De-stocking: Where’s the proof?

A key argument offered as an impact of GST on economic growth has been in terms of the de-stocking effect. The idea here is that as the GST was to be implemented, producers and sellers of goods decided to get rid of their excess stocks first, which were priced as per earlier tax rates, in Q1 2017-18. Only once the GST was implemented was another batch of fresh stock expected to enter the markets. 

Read More...

China – Leading Indicator? Stocks, Credit Policy, Rebalancing and Money Supply

Chinese bond yields have reached their highest since October 2014. Chinese stocks have corrected despite the US market making new highs. The PBoC has introduced targeted lending to SMEs and agricultural borrowers. Meanwhile, money supply growth is below target and continues to moderate.

Read More...

Bull Market Breather or Beginning of The End?

Stock markets have generally taken a breather during November. High yield and corporate bond yields have risen, but from record lows. Since April, the Interest Rate Swap yield curve has flattened far less than Treasuries. Global economic growth forecasts continued to be revised higher.

Read More...

Millennials and Climate Change

Millennials are a generation with a list full of endowments. Web, cinema, gender-identification, feminism and technology have come of age at the same time as they have. No generation of mankind has ever witnessed as many empowering changes in the world they inhabit.

Read More...