August, 19 2016 by lsr team

In previous notes we have stressed how important supply-side rebalancing is for the success of China’s demand side revolution. Beijing’s longer-term intention is clear: it aims to proceed with supply-side reforms.  But what would happen to the labour market if Beijing went for a full blown, Austrian-style rebalancing of the supply side? What if they allowed failures to go under and ailing firms to restructure in a market-oriented way? How many jobs would be under threat from such a process? Click above to watch the full video or below for the full report...

August, 19 2015 by lsr team

Emerging markets are grappling with deficient global demand, souring domestic fundamentals, a strong dollar and potentially higher US real rates. A lower yuan creates a ‘perfect’ storm for most EMs, at least in the short term.  Our analysis has consistently highlighted Malaysia as one of the more vulnerable Asian economies and the sharp depreciation of the ringgit validates our concerns. The collapse in the global oil price, a sharp increase in leverage and poor FX reserves ammunition are some of the reasons. Besides, idiosyncratic risks have esc...