"As the dollar has stumbled, so currencies with higher official interest rates, such as the Brazilian real, Norwegian krone and Australian dollar have surged, with the latter hitting a 28-year high of $1.0852 on Wednesday."
"The cost of borrowing for Ireland and Portugal also rose to euro-era highs because of rising concerns that all three peripheral eurozone economies will be forced to restructure their debts. Irish two-year bond yields rose 75bp to 12.09 per cent and Portuguese yields jumped 21bp to 11.46 per cent."
"The yield difference, or spread, between Greek 10-year bonds and German securities of a similar maturity widened to 1,208bp, the most since data were first collected in 1998. The spread has widened 260bp this month. The spread between Portuguese and German 10-year bonds also widened to as much as 635bp, the most since before the introduction of the euro, while Irish spreads over Germany increased to 720bp."
"Back in 1990, the advanced economies accounted for 69 per cent of global GDP (in PPP terms). And in the past eight years, real GDP in advanced economies increased by a mere 14 per cent, while developing nations grew by 69 per cent."
"Developed markets remain mired in sluggish growth and high debt. Meanwhile, emerging economies are surging ahead; they now account for three-quarters of global economic growth, according to the Inter-American Development Bank (IADB)."
"In 2006, before the financial crisis erupted, 9 per cent of Brazil’s exports went to the other Bric countries – Russia, India and China. By 2009 that had almost doubled to 17 per cent. As a result, the Brazilian economy boomed."
"Even friends – and neighbours – appear to be turning away. The US’s most important trading bloc, the North American Free Trade Agreement (Nafta), is nearly two decades old and is starting to look its age. The share of trade between the three signatories – the US, Mexico and Canada – has fallen by nearly 10 per cent over the past decade: from 55 per cent of the countries’ global exports in 1999 to 46 per cent in 2009."