Finance

Ukraine Has Reached a Debt Deal. Now What?

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The deal has worrying implications for the IMF’s treatment of Russia. The Nation - By James Carden Yesterday, with the announcement that the Ukrainian government had reached an agreement on restructuring its private debt with a consortium of bond holders led by Franklin Templeton, there was much rejoicing. In Kiev, the American-born former State Department official turned Ukrainian finance minister, ... Read More »

Brazil’s economy enters recession

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BBC – Brazil has entered recession after official figures showed the country’s economy contracted by 1.9% between April and June compared with the previous three months. Analysts had expected a contraction, but the number was worse than expected. First quarter output was also revised down to show a 0.7%, rather than a 0.2%, contraction. The country, the seventh-largest economy in ... Read More »

China’s economy is in big trouble. But it is not collapsing.

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BEIJING — Two days of steep stocks slides in China are stoking global panic about the state of the world’s second largest economy, with commentators ranging from Chinese state media to Donald Trump taking a doomsday view. The Washington Post – By Emily Rauhala It has indeed been a brutal day in Chinese markets — and a very, very bad ... Read More »

Global sell-off turns to chaos in rocky day for financial markets

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A worldwide selling frenzy on Monday bruised U.S. stocks and sent the Dow Jones Industrial Average plunging nearly 600 points, as investors worried over China’s slowing economy extended a global-market meltdown. The Washington Post – The Dow fell more than 1,000 points within six minutes, its largest single-day slump in history, before staggering back to close down 588 points, or 3.6 percent, its lowest point in 18 months. It marked the second ... Read More »

Grim China factory data caps worst week of year for stocks

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Emerging market assets under pressure, Oil prices on track for longest losing streak since 1986 The Irish Times - World stock markets tumbled towards their worst week of the year on Friday and commodities got another kicking, as more alarming data from China sent investors scurrying to the safety of bonds and gold. The data from China showed its giant ... Read More »

Transfield in the heart of hot debate on ethical investment

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Two of Australia’s biggest superannuation funds have dumped shares in Transfield Services citing concerns about human rights inside the offshore asylum seeker camps the company runs for the Australian government, while at least half a dozen other industry funds are conducting a review. The Sydney Morning Herald – Sally Rose, Reporter Against a backdrop of lower forecast investment returns during the next decade, and increased ... Read More »

Who holds the world’s sovereign debt?

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Jeff Desjardins at Visual Capitalist broke down how much of the world’s sovereign debt each country holds. Agenda - World Economic Forum – By Bob Bryan The biggest chunk of the $59.7 trillion in debt belongs to the US, which holds 29.05% of all of it. Europe has a high frequency of large debts, with 7 of the top 15 countries coming from ... Read More »

Devaluation and Despair: Breaking Down China’s Currency Dilemma

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Is the world’s second largest economy in for a rough ride? We might just find out. The National Interest – Gordon G. Chang * On Friday, the People’s Bank of China (PBOC), the Chinese central bank, reversed course and set the renminbi on an upward path. That followed three straight days of devaluation that shook global stock, currency, and commodity markets, ... Read More »

Applying Iceland’s lessons in Greece

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Greece gets a helping hand from a former Lehman exec, a German paper reports. Politico - By Zeke Turner Greece’s government is getting advice from an analyst who is also helping Iceland figure out how to end capital controls — a crucial issue that will face Greek banks and companies when controls are lifted, possibly later this year. Germany’s Welt am Sonntag newspaper reported ... Read More »