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Nigeria repels suspected Boko Haram attack on Maiduguri city ... Obama reveals nuclear breakthrough on landmark India trip ... Rebels press Ukraine offensive, Obama promises steps against Russian-backed 'aggression' ... Greece's Syriza set to sweep election in anti-austerity triumph ... Perpetrators of violence in Nigeria will be denied visas for U.S.: Kerry ... At least 15 killed in protests on anniversary of Egypt uprising ... Netanyahu defends planned Congress speech as anti-Iran strategy ... Iran's foreign minister summoned to parliament over walk with Kerry ... U.S. ambivalence towards Moscow talks shows pressure easing on Syria's Assad ... Yemen risks disintegration as south rejects Shi'ite group's takeover ... Japan condemns IS execution, demands remaining hostage release ... U.S. airline flights land in Atlanta after bomb threats ... Pro-Russian rebels attack key port; Ukraine says at least 30 dead ... Boko Haram releases about 190 people in Nigeria's Yobe state ... Potential Republican presidential candidates compete for support in Iowa ... Thousands of Palestinians protest Charlie Hebdo Mohammad cartoon ... Pro-Russian rebels attack key port; Ukraine says at least 30 dead ... Obama, world leaders head to Saudi Arabia to offer condolences ... Potential Republican presidential candidates compete for support in Iowa ... U.S. airline flights land in Atlanta after bomb threats ...
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TOP RISKS 2013


17/01/2013
By:Eurasia Group
It's 2013. We've made it. For those of us watching from the United States, the last few days of 2012 (to say nothing of the first couple of this year) were touch and go. But here we are.
 
Political risk has entered our vocabulary. Whether staring over the fiscal cliff, battling the eurozone crisis, trying to profit from a rising China, or taking cover from the Middle East; around the world, politics has come to dominate market outcomes. Geoeconomics now sits alongside geopolitics in matters of war, peace, and prosperity. Economic statecraft is a key component of global foreign policy. State capitalism is a principal challenge to the free market.
 
That's been increasingly true for the last four years because of the way perceptions of political risk have spread across the developed world. Since the financial crisis, what did or didn't happen in Washington has had an outsized impact on market outcomes. So too the reaction of European governments and pan-European political institutions to a crippling, systemic eurozone crisis. We’ve seen a succession of five governments in Japan digging out, first from the recession and then from the largest-scale natural disaster the world has seen in decades.
 

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Last Update: 17/01/2013

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