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China kills two birds with one stone
Weekly investor research
24 November 2014
If inflation is slowing because a government is undertaking serious structural adjustment there are grounds for being optimistic.
This is China today. If inflation is slowing because a government is unable to undertake much needed structural adjustment
you have a problem. Add in a major debt overhang and you are in big trouble. This is Europe and Japan today. This week we
discuss China’s rate cut and interest rate liberalisation, subsidy cuts in Indonesia and Malaysia, the Russian economy plus the
usual snippets. The discussion of the global backdrop focuses on ECB President Mario Draghi’s dovish comments and
Japanese Prime Minister Shinzo Abe’s decision to call early elections. Finally, we put the latest US CPI print into context ahead
of the 19 December FOMC meeting.