Last Week in the Global Economy (03 Aug – 10 Aug)

(Syndicated with permission from Frontier Research

News

Asia’s MSCI Asia Pacific Index rose 3% for the week as better US economic data and Chinese stimulus hopes spurred investor confidence, the S&P 500 also rose slightly by 1.1% on similar hopes. The European Stoxx 600 increased by 1.6% on better than expected corporate earnings and stimulus hopes for the region. Meanwhile, geopolitical concerns and North Sea supply constraints induced Crude oil prices to rise for the week with Brent Crude gaining 3% to end at $112.95 a barrel.

Views

What are the implications of Pakistan’s political instability to regional security? (With nuclear weapons thrown in the mix)

The US drought has begun to affect food prices globally with corn surging 60%, dangerous for Asia and Sri Lanka in particular as it battles the affects of high inflation and economic volatility.

The RBI is unable to use monetary policy to boost the economy due to mismanagement of India’s government finances. Sri Lanka itself faces higher inflation, and questions as to whether it is capable of meeting its deficit reduction targets

Monsoon trouble has seriously affected Indian cotton crops, which will in turn affect cotton prices globally and impact Sri Lanka’s number one export item; garments

Standard Chartered Bank came under a spate of accusations of laundering Iranian money.

The Eurozone still flounders, not a good prospect for near term Sri Lankan exports to the region, meanwhile, ideas for possible solutions to the area’s problems are still being thrown around.

The Big (Global) Business that is the MBA

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1 comment
  1. Deshan said:

    Rauff Hakeem Must Apologise for His Religious Bigotry

    Posted on August 9th, 2012

    Najmudeen Mohamed

    It is almost incredible to think that Mr. Rauff Hakeem is Sri Lanka’s Minister of Justice. Here is a man who is supposed to represent the epitome of fairness and an advocate of peace and harmony, and yet the words that emanate from his mouth bear all the hallmarks of hatred and ill will. Other right thinking Sri Lankan Muslims – notably Minister Faiszer Musthapha – have already publicly taken Mr Hakeem to task over his blatant attack on religious harmony in the country. Mr Hakeem’s accusation that all Buddhist monks are terrorists is no different to the bigoted portrayal in the western media of all Muslims as terrorists that are hell bent on destroying the world.

    What is even more appalling is that Mr Hakeem appears to be playing the religious card to gain votes at the eastern provincial council elections which are to be held soon. In doing so, Mr Hakeem is placing religious and ethnic harmony on the tip of a sharp blade. Sri Lankans are all too aware of how politicians in the past have used the ethnic card to cause mayhem in the country, and it is extremely disturbing to see this taking place after the end of the war, and that too at the hands of a government minister who is supposed to be responsible and a representative of the Muslim community.

    What is not surprising, however, is the way that Mr Hakeem has behaved over the years in Sri Lanka’s political landscape. Jumping from party to party and chasing power, the good man has shown very little integrity in his behaviour and has certainly deviated from the teachings of Islam that he proclaims to follow. Islam promotes peace and harmony while Mr Hakeem seems to be promoting division and hatred. Muslims all over the world are fighting against being stereotyped, yet Mr Hakeem has no problem stereotyping fellow Sri Lankans. His callous words cannot and must not be construed as being representative of the Sri Lankan Muslim community.

    We can only hope that Mr Rauff Hakeem will see the error of his ways and apologize to the country for his crude attempt at using the religious card to divide Sri Lankans and win votes by fostering hatred. It would certainly be the Islamic thing to do. But unfortunately, Mr Hakeem’s very un-Islamic behaviour so far leaves very little hope in this regard. What we as Sri Lankans can do is stand against the sort of extremism and bigotry that Mr Hakeem seems to be promoting. Such men must understand that they have no place in Sri Lankan society and they ought to be be cast out of our political space until they mend their ways.

    http://www.lankaweb.com/news/items/2012/08/09/rauff-hakeem-must-apologise-for-his-religious-bigotry/

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