Tag: fiscal cliff

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. Continue reading »

The US still has a few days to avert the fiscal cliff, but a prominent Chinese ratings agency is not waiting around. Dagong has already served notice of what failure might mean, putting the US sovereign rating on its negative watch list.

It is tempting to dismiss the Dagong statement as a publicity stunt, its latest in a long line of downgrades and warnings directed at the US. But Dagong’s criticism is a good reflection of views that are commonly expressed in Beijing. And given that China is the biggest foreign holder of US government bonds, these views deserve a hearing. Continue reading »

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? Continue reading »

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? Continue reading »

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