Each week FrontierView’s global research team shares their view on key media stories, and what the implications are for your business. Have a question for our analysts? Email us at info@frontierview.com to learn more.

Josef Jelinek on “Snapshot of a South Korean Boycott: ‘This Mart Doesn’t Sell Japanese Products!’ “

“The spat between Korea and Japan threatens to put further downward pressure on Korea’s already flagging economy. With exports accounting for over 50% of Korea’s GDP and semiconductors being the biggest export item representing 25% of total shipments, it’s evident to see how this skirmish could have an outsized impact not only on Korea’s economy, but also also on global tech supply chains.”

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Kinnari Gurnani on “Pakistan Arrests Militant Wanted by the U.S.”

“The Khan government is motivated to signal its commitment to curbing terrorism to the international community. The arrest also comes at a tumultuous time for the economy that has necessitated a US$ 6 billion bailout package from the IMF. If the government continues to act against terrorism and use the IMF loan effectively, companies can expect trade and eventually economic prospects to improve.”

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Alejandro Valerio on “Mexico Spurns Private Oil-Drilling Partners”

“The López Obrador government’s plan to revamp Pemex will not solve its structural problems. The plan has downside risks for the economy, as it limits private firms participation into oil extraction and it will put pressure on public finances. Although Pemex received more resources in 2019, its revenues contracted by 32.9% YOY and production fell to 1.6 million barrels a day in Q1.”

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William Attwell on “South Africa cuts rates as economy weak, inflation steady”

“The central bank’s decision to cut its benchmark interest rate by 25 basis points to 6.5% should buoy credit growth and thus domestic demand, and help the economy emerge from the steep contraction it experienced in the first part of the year. Yet entrenched structural problems and the damp global outlook make any substantial acceleration in growth unlikely.”

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Ramiro Sugranes on “Puerto Rico Governor Hangs On Despite Calls for Resignation”

“Political risks remain elevated in Puerto Rico following days of protests demanding Governor Ricardo Rosselló’s resignation. The likelihood of Rosselló stepping down has continued to increase, and should be closely monitored as social unrest persists. The current scandal will bare key implications for the island’s ongoing major debt restructuring process and politicized federal fund disbursements.”

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Alex Schober on “Former Peruvian President Alejandro Toledo Arrested in U.S.”

“The arrest of Alejandro Toledo means that every former Peruvian president since 1985 has been formally charged for corruption. We believe that the arrest will strengthen the anti-corruption movement even further in Peru. This will likely lead to strong enough popular support to approve the current administration’s political reform, which will strengthen the country’s institutions and rule of law.”

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