Real Lending Rates and the Investment Cycle

Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

We have been flagging for some time that underpinning Asia’s stellar export performance is the turnaround in the global profit cycle and the end of dollar deflationary policies.Figure 1 is a case in point. Rising global US dollar purchasing power is not only translating into higher demand for Asian goods and services but an improvement in Asian exporter pricing power.  Our composite regional export price index has been trending up since March 2016 and is almost back at its January 2014 peak.…

We have been flagging for some time that underpinning Asia’s stellar export performance is the turnaround in the global profit cycle and the end of dollar deflationary policies.Figure 1 is a case in point. Rising global US dollar purchasing power is not only translating into higher demand for Asian goods and services but an improvement in Asian exporter pricing power.  Our composite regional export price index has been trending up since March 2016 and is almost back at its January 2014 peak.…

Asian Trade & Currency Appreciation - Well Positioned