ZINIO logo
Bloomberg Markets Magazine

Bloomberg Markets Magazine February - March 2020

Bloomberg Markets is the best kept secret in the financial industry. Get Bloomberg Markets Magazine digital subscription today and learn what many Hedge Fund and Portfolio Managers already know. Bloomberg Markets is the must have guide to what's happening now, and what will happen in global finance.

Read More
United States
Bloomberg Finance LP
Back issues only

in this issue

1 min
the trade issue

Freddie Noe is bourbon royalty, an eighth-generation distiller from the family behind Jim Beam. So when you’re pondering 43,000 gallons of sour mash and he invites you to “waft it in,” you do as he says. Even after he’s told you his late grandfather, whiskey legend Booker Noe, used to have visitors do just that so he could giggle as they succumbed—briefly—to the rush of carbon dioxide. Nobody fainted this time, but I can testify to the acrid punch a whiff of bourbon mash delivers. I took one for the team while reporting “Whiskey & Tariffs Don’t Mix” (page 64). For this special issue, Bloomberg Markets and Bloomberg Economics collaborated on an extensive examination of how trade, and the wars over it, are causing monumental shifts in the global economy. For…

1 min
markets almanac

Feb 21–26 Carnival Rio de Janeiro Colorful public celebration precedes the Christian observance of Lent 23 Emperor Naruhito’s birthday Japan The new emperor’s 60th birthday will be observed with a holiday on Feb. 24 To see public holidays in Japan, go to {CDR JN <GO>}. Type the word “calendar” in the command line of your terminal to pull up more calendar options. Mar 2 Guyana election Voters in the world’s newest petrostate choose a new government 3 Super Tuesday U.S. Democrats in 14 states select about a third of the delegates awarded in the presidential primaries {W #FFM 10 <GO>} brings up a poll dashboard. {ELEC <GO>} provides a special report featuring news, charts, videos, and more. 10 Holi India The ancient Hindu festival celebrates the arrival of spring 11 U.K. budget unveiled London Chancellor of the Exchequer Sajid Javid has committed to cutting taxes and increasing borrowing Apr 15 South Korea…

8 min
have we reached peak globalization?

THE LAST DECADE has been a sharp rebuke to the idea of a more integrated, and increasingly frictionless, global economy. Borders, nationalism, tariffs, and even trade wars are back in fashion. So we asked economists, business leaders, and other experts whether this reversal is permanent or whether a new era of globalization can take hold. Some were more optimistic about the future of economic integration than others, but all agreed that if we see globalization reemerge, it won’t look the same as before. World trade intensity rose until around the time of the financial crisis, at which point it stalled. Cross-border financial flows peaked in 2007. On the other hand, people flows, remittance flows, and digital flows have not peaked, at least not yet. Is this a natural evolution—a peak desire…

8 min
globalization’s bleaker future: rise of the robots, march of the migrants

IN THE YEARS following the fall of the Berlin Wall in 1989, many Western policymakers assumed that globalization was irreversible and would lead to rising incomes for all. In 2005, then-U.K. Prime Minister Tony Blair encapsulated part of this complacent view: “I hear people say we have to stop and debate globalization. You might as well debate whether autumn should follow summer.” The Western world’s experience in the more recent past suggests that Blair was wrong. Slower growth, a financial crisis, and, in some cases, rising income inequality have triggered a globalization backlash. The U.S. no longer seems willing to sponsor 21st century versions of the post-World War II institutions that helped set the international rules of the game. Instead, the White House places more emphasis on “America First” than on…

1 min
china connection

HONG KONG’S PORT has played a crucial role in connecting China’s economy to the world. That relationship is changing fast. Stiff competition from rival Chinese ports—along with slowing global demand, shifting supply chains, and rising protectionism—is eroding the status of a port that was once the world’s biggest. While a U.S.-China trade deal offers near-term relief, the big structural issues aren’t going away. One example: Hong Kong’s role as a trading entrepôt for China could be collateral damage if U.S. lawmakers try to hold Beijing accountable for its response to Hong Kong’s political unrest. None of this is to suggest that Hong Kong’s port is about to sink without a trace, but it does underscore the perils of being caught in the geopolitical equivalent of a no man’s land. For…

7 min
find out which currencies are fundamentally over- or undervalued

HOW COMPETITIVE IS an economy in international trade? It’s an extraordinarily complex question that encompasses exchange rates, natural resources, demographics, innovation, and many other matters—some of which feed back on one another in nonlinear ways. To get at the foreign exchange dimension, one important economic concept is the real effective exchange rate (REER). For a particular economy, a REER better indicates the macroeconomic effects of currency levels than any single bilateral rate. WHAT IS A REER? A nominal effective exchange rate (NEER) is an index of an economy’s bilateral exchange rates, in which each constituent rate is weighted by a measure of trade flow. A REER takes the next step, adjusting each of the NEER’s component rates by a measure of relative price changes such as consumer price indexes. REERs serve several purposes. They…