Access Investments-European Union- ROMANIA

Fears of "currency wars"

Fears of "currency wars" characterized by competitive devaluations and protectionism continue to dominate headlines in the run–up to the G20 summit in November. In our lead article this week, we examine Brazil's latest policy response to the appreciation of its currency. By raising the tax on capital inflows again, however, the government is unlikely to slow the Real's rise for long. China, too, remains central to the global debate over exchange rates. We focus on the record rise in the country's foreign reserves, a development certain to fuel further calls for revaluation, even though abrupt change is neither likely nor desirable.Elsewhere, French strikers are on the warpath over proposed pension reforms. With more austerity on the way, tensions between the government and the public could drag on. Nor is France, of course, the only country grappling with the consequences of belt–tightening. From Risk Briefing we feature a webcast with our UK analyst, Neil Prothero, who expects the cuts announced in the British government's spending review to hit economic growth.Industry Briefing looks at the rise of micro finance in Europe, which suggests that micro loans are not just relevant to borrowers in poor countries. Finally, Executive Briefing examines a refreshingly counter–intuitive social networking strategy, the idea of which is to connect with fewer, not more, people as a means of deepening relationships with customers.How do these issues affect your business? Please let me know at: arbitraj@aol.com