The Week That Was - 11th November
Undoubtedly, any news this week has been overshadowed by the USA’s new president. Trump was elected on Wednesday after securing 279 electoral votes through the electoral college system despite having 200,000 fewer individual votes than Clinton.
His election saw an initial slide in Asian markets as money flowed into gold, currency and safe haven stocks before ultimately finishing 1% higher at the end of Wednesday. Also, with the USA being Mexico’s biggest exporter, the peso plummeted due to Trump’s critiques of NATO and proposition to tax Mexican imports by 35%.
Elsewhere, the UK announced that its trade deficit worsened in September despite the pound falling 16% post Brexit. It now stands at £5.2bn, having previously been £3.8bn in August.
India has also had 86% of its cash in circulation no longer be classified as legal tender. Indian Prime Minister Narendra Modi announced his decision to scrap the 500 and 1,000 rupee notes on Tuesday in a bid to clamp down on the amount of ‘black money’ in the economy. The notes can be withdrawn and deposited in banks until 30th December, though this may be difficult for some with only 27% of Indian villages having banks within a 3-mile radius.
Lastly, the recent financial turmoil in South Africa looks like it may be nearing an end. The finance minister has been cleared over allegations of fraud this week. Consequently, the rand (South Africa’s currency) has bounced back after previously falling 3.2% after the accusations surfaced. Yet it’s economic future is still uncertain with Nigeria having taken over as Africa’s largest economy. More worryingly, the renewal of the trade act between the South Africa and the US (AGOA) is due to occur during Trump’s time as president, meaning uncertainty is still prevalent.
Picture sources: http://www.telegraph.co.uk/news/2016/11/10/what-special-relationship-donald-trump-speaks-to-nine-other-worl/