News of a last minute-agreement in the US fiscal cliff negotiations to avoid $600bn of government spending cuts and tax increases on Tuesday was greeted by a stock market rally. While markets in the US and Europe jumped, the news was equally well received key emerging markets – with stock exchange charts heading up rather down a cliff as relief filtered through. Read more
As budget negotiations in Congress drag on towards the end of year deadline, questions are being asked about the global ripple of the US falling off the so-called fiscal cliff.
Should Asia investors be losing sleep over it? Read more
Manuel Sánchez, deputy governor of Mexico’s central bank, has been musing about the potential impact on the Mexican economy should the United States fall off its “fiscal cliff”.
In a conversation with US bankers, Sánchez highlighted the near-umbilical link between the economies of the US and Mexico “in terms of industrial integration, trade and investment.” About 80 percent of Mexico’s exports go the US, he added.
But is Sánchez right to be worried? Read more