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Special Report China is trying to export its way out of its economic slowdown while the US has already formed a hawkish consensus on foreign policy and trade. Investors should take cover as global financial markets are underrating the new phase of…
  Several economic releases out of China disappointed in April. Retail sales decelerated from 3.1% y/y to 2.3% y/y and fixed asset investment growth slowed from 4.5% YTD y/y to 4.2% YTD y/y. Both were expected to accelerate.…
  According to BCA Research’s Geopolitical Strategy service, Indian Prime Minister Modi is on track to be reelected for his third term, with the latest polls in April averaging 385 seats for the National Democratic Alliance,…
Special Report Modi and the BJP are at or near the peak of their political dominance, and their third term will be challenging as they must deal with harder reforms amidst a slowing domestic and global economic environment. In the long run, however…
  Chinese aggregate financing, a broad measure of credit, declined on a YTD basis, from CNY 12.9tr to CNY 12.7tr in April, disappointing expectations that it would grow to CNY 13.9tr. Moreover, new loan growth missed expectations (…
Special Report Mexico’s election and the US election pose short-term and potentially medium-term risks to Mexican financial assets. But unless the ruling party wins a double supermajority, we remain structurally overweight Mexico relative to global…
  Chinese investable stocks have rallied on a combination of investors’ hopes for stimulus, revival in the global manufacturing cycle and cheap valuations. The MSCI China index and the Hang Seng have both gained close to 15%…
Investors should prepare for economic data to weaken even as policy uncertainty and geopolitical risk skyrocket ahead of the US election.
  According to BCA Research’s European Investment Strategy service, US and Euro Area growth will likely converge in the next 12 months. Fiscal policy differences were the most visible headwind to Eurozone growth last…
  The IMF’s latest fiscal monitor report highlighted the dangers that rising sovereign debt alongside rising deficits pose to advanced economies. The United States, in particular, is at risk. The IMF projects that fiscal…