NEWS FLASH

UPCOMING WEBINAR - AND NOW FOR SOMETHING COMPLETELY DIFFERENT: BRAZIL...

The STF confirms the constitutionality of Central Bank autonomy, and Pres. Bolsonaro calls for Congress to vote against the measure prohibiting judges, policemen and the military from running for office for 5 years after leaving their posts
BRAZIL POLITICS · Report · 27 Aug 2021

There were 8 votes in favor of the constitutionality of the law that provides for the autonomy of the Central Bank and 2 votes against. It is an important win for the Ministry of the Economy. It is still uncertain whether Bolsonaro will submit a second impeachment request against Minister of the ...

​GULF WEEKLY: Gulf facilitates Afghan evacuation, UAE royal visits Qatar, vaccination rates rise
GULF COUNTRIES · Report · 27 Aug 2021

A skimmable summary overlaid with our analysis and links. Headlines: * The UAE’s Sheikh Tahnoun visited Qatar’s Emir in a potential breakthrough in the bilateral feud. * Qatar, UAE, Kuwait and Bahrain are hosting Afghan evacuees, and Gulf states are contemplating relations with the Taliban. ...

Looking up
CENTRAL AMERICA · Report · 27 Aug 2021

The Guatemalan economy will recover more quickly than that of other Central American countries, with a more favorable outlook for the next 18 months. The evolution of the international economy, the improvement in domestic expectations and a rational handling of economic policy will be crucial to ...

The Covid infection curve is turning steeply upwards
HUNGARY · In Brief · 27 Aug 2021

Daily new Covid infections in HungaryNote: 7-day averages between May 31 and August 27 of each year; Source: worldometers.infoThe foregoing chart speaks for itself. The local 4th wave of Covid is knocking at the door quite loudly: as of this morning, the 7-day average of daily new infections rose...

DR Central Bank receives SDR allocation for USD649.05 m
DOMINICAN REPUBLIC · In Brief · 26 Aug 2021

As a result of the decisions of the IMF Board of Directors of August 2, 2021 that assigned DEG456.56 b with the purpose of strengthening the balance of payments of the member countries in the framework of the COVID-19 crisis, the Central Bank from the Dominican Republic has received USD649.05 m. ...

Nord Stream 2 faces legal setback
RUSSIA / FSU POLITICS · In Brief · 26 Aug 2021

On August 25 a German court held that the pipeline must comply with the EU's Gas Directive. This might require the company that operates the pipeline - a Swiss registered entity called Nord Stream 2 AG - to sell half of its capacity to third parties. Gazprom will still own the pipeline but not op...

“Common prosperity” recognizes that the underlying problem is the distribution of income
CHINA FINANCIAL · Report · 26 Aug 2021 · 3 responses

Special points to highlight in this issue: * “Common prosperity” is Beijing’s new buzz phrase. It is already being applied to so many policy announcements that it is hard to grasp its meaning and to differentiate it from previous buzz phrases like “rebalancing” and “dual circulation”. * I...

Essential CIS Politics: August 2021
RUSSIA / FSU POLITICS · Report · 26 Aug 2021

* The Taliban's taking Afghanistan has worried the former USSR and led to more Russian troops' going to Central Asia. * Russia’s economy is growing steadily, although inflation is still a problem. * Russia and China held joint military exercises as Russia unveiled new weapons systems. ...

Pacheco rejects Bolsonaro's impeachment request against Minister Moraes, the STF resumes trial of the ADI against the autonomy of the Central Bank, and the energy crisis continues
BRAZIL POLITICS · Report · 26 Aug 2021

It is uncertain whether Bolsonaro will submit another impeachment request against Minister Barroso. Minister Lewandowski voted against the constitutionality of the law that provides for the autonomy of the Central Bank, and Minister Barroso voted in favor. Minister Nunes Marques will be the first...

​Russian industrial growth seemingly losing steam
RUSSIA ECONOMICS · In Brief · 26 Aug 2021

Rosstat reported that the industrial output was up by 4.4% y-o-y in 7M21, while the same 4.4% y-o-y growth was reported for 1H21 a month ago. In July alone, the industrial output was up by 6.8% y-o-y, while in May and June, this growth was double-digit. Strong base effects affected y-o-y statisti...

Delta has a rendezvous with Dr. No in Jamaica
JAMAICA / BAHAMAS · Report · 25 Aug 2021 · 2 responses

Jamaica probably has the world’s tightest fiscal policy on an effort basis. As Delta drives cases past previous COVID peaks, and Tropical Storm Grace grazes Jamaica, the question is whether this be sustained even by the country's very determined Finance Minister, Dr. Nigel Clarke.

Augusto Aras’s appointment was confirmed in the Senate yesterday, the STF will adjudicate the ADI against the law that provides for autonomy of the Central Bank, and Lira plans to vote on the income tax bill next week
BRAZIL POLITICS · Report · 25 Aug 2021

Senators asked Davi Alcolumbre to schedule the confirmation hearing for André Mendonça’s appointment to the STF but he did not respond. Only two votes have already been cast in the ADI in the STF. Minister Lewandowski voted in favor of the ADI and Minister Barroso voted against it. The government...

Russia gives USD 7 billion to pensioners and military personnel
RUSSIA / FSU POLITICS · In Brief · 24 Aug 2021

On August 24 Putin told deputies of the United Russia party that money should be paid to senior citizens and those serving in the armed forces. USD 135 will be paid to each pensioner and USD 200 to each person in the military regardless of rank. In September 2021 parliamentary elections will take...

The MNB appeared to really mean it today
HUNGARY · In Brief · 24 Aug 2021

The MNB made two important decisions at their August rate-setting meeting today, both in the direction of significant tightening:- They raised the base rate by another 30 bps to 1.5%, the same way as they also raised the interest rate corridor by the same amount, to 0.55-2.45%, and as they will r...

Delta variant interrupts economic performance
CHINA · Report · 24 Aug 2021

COVID’s Delta variant and extreme weather have been hitting the economy for the past month, but their effects will be temporary. Industrial output was up 6.4% y/y in July, and up 11.5% from July 2019, with an annualized growth rate of 5.6% y/y, down 1 ppts from Q2 2021. Investment was up 10.3% y/...