The world spotlight is firmly on Brazil nowadays, with the country hosting the world’s two largest sporting events inside two years. Yet trouble is brewing: the economy once touted as a future star performer, is dragging while the government uses a time-honoured method in an attempt to drag the country back up.
Just before last night’s announcement was made, I was asked what the Fed could do that would shock me. I answered that three things would surprise me: that it would be decisive, show leadership and communicate clearly.
The Fed’s base rate has been touted to rise for a while now. But, with the latest policy decision expected in the next 24 hours, the question is not only “will it go up?” but “how?” Today I’ll look at what the Fed’s choices are and tomorrow I’ll analyse their decision.
It seems that all the financial news over the last couple of months has been about China. The dramatic crash brought international focus on the world’s second largest economy: yet as the media vans pack up and head off, the problems haven’t gone away and the government seems to be up to some funny tricks.
Monday 24th August apparently saw the most volatile session ever in the almost 120 years of the DJIA (in terms of the successive point swings). The next day was the biggest reversal since 2009, as the markets’ putative rally turned sharply and headed south.