Week In Review 06/25/2017

MSCI includes Chinese stocks in its global index

  • Reuters on China’s poor corporate governance: China ranks ninth out of 11 Asian economies for corporate governance, according to the ACGA. Its overall scores have declined since 2014.
  • FT on the market’s reaction to the decision: “MSCI’s move means mainland equities, known as A-shares, will next year be included in its flagship emerging markets index, obliging the estimated $1.6tn of investment funds that track the index to buy the stocks.”
  • Fortune on the stocks included: “In total, those 222 companies are worth $3.8 trillion in combined market value, but will account for a mere 0.7% of the MSCI’s emerging market index.”

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Week In Review 06/18/2017

Fed Raises Rates

  • From 1.00 percent to 1.25 percent: The Fed also gave a first clear outline on its plan to reduce its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities, most of which were purchased in the wake of the 2007-2009 financial crisis and recession.”
  • Neel Kashkari continues to dissent: “In short, the economy is sending mixed signals: a tight labor market and weakening inflation.”

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