Highlighted below are the percentages of the world’s largest market cap from countries around the globe. Additionally highlighted is how much each country’s percentage of the world market cap changed from 2011 to 2012. Although the US’ market cap is 5x’s that of China and represented 40% of all of the world’s total market cap, the nations with the biggest increases in market cap were Venezuela, El Salvador, Vietnam, Philippines, Turkey, Kenya, Estonia, Nigeria, and Thailand with 392%, 96%, 80%, 60%, 53%, 45%, 45%, 44%, 43% annual market cap growth, respectively.
||% of World Market Cap
||Hong Kong, China
Data Source: World Bank: Market capitalization of listed companies
“I think Obama sticking it to Putin is a global world media event. It’s the first time anybody’s nailed Putin in a long while and I think it changes the game.”
– Larry Kudlow
President Obama recently opted out of a meeting with Russian president Vladimir Putin on the heels of Russia granting whistle blower Eric Snowden asylum for one year. The move to cancel the meeting between the two heads of state is a sign that the US has lost patience with the politics of the Russian president and that the US is through playing nice. In spite of opting out of the meeting, Pres. Obama will still attend the G-20 summit in St. Petersburg in early September where all eyes will be on the two presidents to see if any deal(s) can be reached to reduce the tensions and restore relations.
Between 2009 to 2011, the U.S. had an unprecedented advance in economic cooperation between the two countries with exports to Russia rising 57 percent and total U.S.-Russia trade increasing to over 80 percent. U.S. companies reported numerous major business deals in Russia in 2012, including the ExxonMobil-Rosneft deal in May for exploration in the Arctic shelf, Boeing’s $15 billion in aircraft sales in Russia over the past five years, and Ex-Im Bank’s June MOU signing with Sberbank, Russia’s largest bank, to support up to $1 billion in exports to Russia.
In December 2011, culminating 18 years of hard work and dedication, Russia was invited to join the World Trade Organization (WTO), a major accomplishment that will bring the world’s largest economy outside the WTO into the organization and bind it to a set of rules governing trade, as well as a dispute-resolution mechanism to enforce those rules (1).
1. Dept, US State. “U.S. Relations With Russia.” U.S. Department of State. U.S. Department of State, 14 Dec. 2012. Web. 08 Aug. 2013. <http://www.state.gov/r/pa/ei/bgn/3183.htm>.
Did you know :
- J.P. Morgan bailed out U.S. Economy during the “Panic of 1907”, a financial crisis that nearly crippled the U.S. economy after many major banks were on the verge of bankruptcy? This move eventually led political and banking leaders to create the Federal Reserve system in 1913, vowing never to let it happen again.
- The Federal Reserve Bank destroyed approximately $190M worth of water-soaked moldy bills after Hurricane Katrina?
- During the Civil War, nearly 1/3 of all currency was counterfeit?
- North Korea is the only known counterfeit operation with the capabilities of producing U.S. currency with the same level of detail as the Fed? It’s called the North Korean Supernote
- U.S. currency basically backed only by the faith of our U.S. Government to make good on it’s fiduciary promise?
- Inflation is the cost of holding money and used to induce spending, saving and or investing?
- The Fed’s firewall blocks 3 million cyber attacks per day?
Video courtesy of National Geographic Society.
At 2:30 p.m. ET today, the Federal Reserve Chairman is hosting a press conference on the fate of interest rates.
Here are some key things to watch for:
- The fed has been buying bonds at $85B/month. Will the fed taper off this quantitative easing (QE)? If so, how much?
- What are the implications of the risk of a liquidity squeeze in China?
- How will QE tapering effect the gold markets?
- What impact will QE tapering have on the rest of the world? There’s speculation emerging markets like South Africa may be at highest risk.
Streaming live video by Ustream
Expect slow growth in high income countries and slow growth in developing countries.
Key risks include:
- Quantitative easing: The massive surge of capital outflows to emerging and other developing economies is having a major impact. Corporations with sound credit ratings, attracted by the low borrowing costs, have taken on more debt, thus increasing their exposure to foreign exchange. As a result, their vulnerability to future interest rate changes in the developed world and the overall exchange rate volatility will increase.
- Commodity prices:
- Industrial commodity prices are easing due to new supply, however;
- Rising global food demand will push up prices 10 to 40 per cent over the coming decade.
- Growth in food production has slowed over the past decade even as rising incomes in developing countries boosted consumption
- Higher prices will have their biggest impact in developing countries.
- Higher interest rates are a cause for concern for developing countries.
- Downgraded prospect for growth in Europe.
“The greatest fortune to be made in the United States in the next 2-3 years is going to be made by somebody who exquisitely determines when the interest rate rise will occur.”
-David Rubenstein, Carlyle Group