The First Few Weeks Of The Modi Administration
INDIA · Report · 11 Jun 2014

Executive Summary The new BJP government has done better than expected in some respects and worse in others. It is now possible to start understanding how this new arrangement will work. Cabinet Formation Expectations were sky-high about the Modi administration doing better on cabinet formation. ...

New threats to stability: ISIS and PKK
TURKEY · In Brief · 10 Jun 2014

I’m shocked beyond belief! 1.500 ISIS (Islamic State of Iraq and Syria, or Levant) militants took control of Iraq’s second largest city Mosul within a day, and now there are unconfirmed reports that the biggest Turkmeni city, Tuzhourmatu, has also fallen under their control. In Turkey, the shooti...

Rodolfo Marco Torres replaces Jorge Giordani on the BCV board
VENEZUELA · In Brief · 10 Jun 2014

Today, 10 June 2014, the Official Gazette reports the appointment of Rodolfo Marco Torres, minister of Finance, as member of the board of the BCV as member of the Cabinet. Marco Torres replaces Jorge Giordani, who was a member of the board throughout his tenure as minister of Planning. (According...

Cyclical Gains, Structural Pains
TURKEY · Report · 10 Jun 2014

Today’s Q1 growth data surprised slightly on the upside, coming in at 4.3%, y/y versus expectations of around 4%, us included. The quarterly growth rate (seasonally- and working day-adjusted) was puzzlingly strong, at 1.7% (corresponding to an annualized rate of over 7%), but we take these quarte...

PRD: More than a Leader at Stake
MEXICO · Report · 10 Jun 2014

Executive Summary Leadership elections have historically been among the most difficult hurdles to manage for the Party of the Democratic Revolution (PRD) and have often been a huge embarrassment for the organization. It is as yet unclear whether this year’s contest will produce similar controvers...

Six-point Growth & Productivity Plan
MEXICO · Report · 10 Jun 2014

Executive Summary Without a doubt the most surprising economic news out of Mexico last week was Banco de México’s announcement that it was lowering its overnight interbank lending rate by 50 basis points to a new record low of 3.0%. It was a move that caught financial markets and analysts entirel...

Ex-mediamagnat appointed Head of President Office
UKRAINE · In Brief · 10 Jun 2014

Boris Lozhkin, ex-owner of UMH media group, was appointed Head of President Office today. In fact impression about this first personnel decision of Poroshenko is quite mixed. Boris Lozhkin is a successful businessman who made his fortune by creating best journals and magazines at the country. And...

Brazil Presidential Election
BRAZIL POLITICS · Report · 09 Jun 2014

Dilma Continues Her Slide in Polls and Reinforces Polarization between the PT and PSDB On Friday, June 6, the Datafolha Institute released a new presidential voting intention poll, conducted June 3-5.The poll shows that President Dilma Rousseff (PT) is still in the lead but continues to lose grou...

Disappointing Growth: The Role of Credit
BRAZIL ECONOMICS · Report · 09 Jun 2014

The weak GDP growth in the first quarter threw cold water on any remaining optimism about growth in 2014. On the supply side, there are no signs that industry can reverse the current situation, and on the aggregate demand side, neither investments nor household consumption nourish hopes of better...

Energy Reform
CHILE · Report · 09 Jun 2014

Recently the government announced its proposal for Energy Reform. The reform aims to develop “reliable, sustainable, inclusive and affordable energy, a diversified electric generation capacity, and higher levels of sovereignty in Chile´s energy requirements”. With a price above US$150 per MW per ...

Political Insights: Week of June 9
BRAZIL POLITICS · Report · 09 Jun 2014

A busy week ahead:Two presidential polls will be released, Ibope and Vox Populi.The party convention period also begins.The PMDB is expected to formalize its support for the reelection of President Dilma Rousseff (PT).The PSB launches former Governor Eduardo Campos and former Senator Marina Silva...

Weekly Tracker: June 8-14
TURKEY · Report · 08 Jun 2014

Executive Summary AKP’s bold attempt to reinvigorate the Peace Process with Kurds replaced the Presidential Elections as the top item on the Turkish agenda. While the effort is commendable and potentially lucrative in terms of Kurdish votes, it is open to sabotage by PKK and to mishandling. Feari...

Banxico reacts unexpectedly to a weak economy
MEXICO · In Brief · 06 Jun 2014

Banco de México surprised its domestic and foreign constituencies by reducing interest rates 50 basis points. For some time now, the central bank’s board has considered that inflation is under control as well as inflationary expectations, that have been reduced from an annual 4.1% at the start of...

Has Regionalization Failed?
PERU · Report · 06 Jun 2014

Executive Summary The discovery of massive corruption in several regional administrations may offer an opportunity to change a system that challenges the very notion of a unified state. Regional presidents have, illegally and erroneously, challenged national authority, trying to treat Peru as a f...

Reshaping the Agenda
RUSSIA / FSU POLITICS · Report · 06 Jun 2014

An agreement to establish the Eurasian Economic Union bringing Russia, Belarus and Kazakhstan was signed with no obvious substantial progress achieved. Most new parts of the agreement either deal exclusively with institutional matters or address issues that are years ahead in the future making th...