Finance

The eurozone isn’t ready for the next big shock

Euro currency guidance financial concept as a european money icon floating in the water with a businessman using an oar to steer and guide the economic symbol.

Here’s how to fix that. MADRID — The return to economic growth in the eurozone has produced a dangerous sense of complacency on the Old Continent, especially in the richer countries of the north. Miguel Otero-Iglesias  and Raymond Torres Politico But Italy’s flirtation with an exit from the euro under a populist government is a stark reminder that, if left unaddressed, the deep structural weaknesses that plague the single currency could trigger an existential crisis across the EU. It would be a ... Read More »

Illusion’s End: Erdoğan and Turkey’s Coming Economic Chil

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The rapid depreciation in the value of the Turkish Lira since the beginning of 2018 is the product not only of the collapse of any remaining vestiges of investor confidence in the regime of President Recep Tayyip Erdoğan but a… Gareth H. Jenkins Turkey Analyst BACKGROUND: When the AKP first took office in November 2002, the Turkish economy was already rebounding from the currency collapse of February 2001 and subsequent sharp recession. The Economic Stabilization Program that the outgoing administration ... Read More »

British Court Freezes Gazprom Assets For Payment To Ukraine

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The Commercial court in London today gave long-awaited orders to freeze assets of Gazprom in the UK for payment to Ukrainian gas company Naftogaz to settle a recent Stockholm Arbitration award. Tsarizm “Naftogaz today served Gazprom with an order to freeze assets in England and Wales. The order was issued by the Commercial Court in London on June 18, 2018 to enforce the Stockholm arbitration award, whereby Gazprom owes Naftogaz $2.6 bln. In addition to freezing assets, it requires Gazprom ... Read More »

Too bad for the tax payer

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Socialising the losses and privatising the gains – Part 2 On 4 May 2018, in anticipation of what seemed to be cooking at the Co-op, I wrote an article with the title of “Socialising the losses and privatising the gains”[1] where I warned of what was likely to take place and also in order to make people aware that the most likely outcome would be the camouflaging and the passing on to the tax payer of the… Savvas Savvides Stockwatch I ... Read More »

United Arab Emirates gives Ethiopia $1 billion lifeline to ease foreign exchange crisis

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The United Arab Emirates (UAE) is to deposit $1 billion in Ethiopia’s central bank to ease the latter’s foreign exchange shortage. Justina Crabtree CNBC The sum is part of a total of a $3 billion aid and investment pledge from the UAE to Ethiopia announced Friday. The news came as Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan visited Ethiopian Prime Minister Abiy Ahmed in Addis Ababa. Ethiopia’s foreign exchange shortage is due in part to its spending ... Read More »

Jordan walks a tightrope between rival powers

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The country is currently under an intense IMF programme, which has cut public expenditures and raised tax revenue. Jonathan Gorvett Asia Times After days of peaceful street protests and the resignation of the former government, Jordan’s King Abdullah swore in a new administration, Friday morning. The first act of the new prime minister, Omar Munif Al-Razzaz, was to withdraw the unpopular tax bill that had triggered the recent demonstrations, while commiting himself to ensuring “taxpayers’ money goes to serve… Yet, ... Read More »

Europe jumps off easy money train

The President of the European Central Bank (ECB) Mario Draghi gives a press conference following the meeting of the Governing Council of the European Central Bank in Riga, Latvia, June 14, 2018. - The euro fell against the dollar after the European Central Bank said it expected interest rates to remain at their current record lows until well into 2019. (Photo by Ilmars ZNOTINS / AFP)        (Photo credit should read ILMARS ZNOTINS/AFP/Getty Images)

Mario Draghi puts pressure on Berlin and Paris to shore up eurozone. By PIERRE BRIANÇON Politico An era has ended at the European Central Bank. On Thursday, European Central Bank President Mario Draghi announced that the bank would stop its massive bond-buying program at the end of December. The policy, known as quantitative easing or QE, has seen the ECB buy €2.4 trillion worth of government debt in the last three years to help pull the eurozone out of recession. Draghi is ... Read More »

Grattan on Friday: The loners who lead, and trash, ‘personality’ parties

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Let the voter beware. We may be in a “celebrity” age but personality parties, based around a “name” implode, explode, or fizzle. In the last few years, we’ve seen them do all three. Michelle Grattan The Conversation On Thursday came the latest episode in the One Nation soapie, when senator Brian Burston announced he was leaving the party to sit as an independent. Pauline Hanson had effectively tossed him out… Only a couple of weeks ago, after their spectacular falling ... Read More »

It’s time to stop giving more rights to global corporations

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The UN Conference on Trade and Development (UNCTAD) has published new research that shows that increased market power of global corporations is driving global income inequality. Dr Patricia Ranald Brisbane Times It notes that “in 2009–2015, the surplus profits of the top 1 per cent of publicly listed firms in a new UNCTAD firm-level database represented 55 per cent of recorded operating profits,” and recommends a… This research supports the case against giving corporations greater legal powers to sue governments over changes to domestic ... Read More »

How Asian crypto traders leverage the ‘Kimchi Premium’

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The price of Bitcoin is often substantially higher in South Korea than elsewhere, which is leading many investors to turn to arbitrage trading Luke Thompson Asia Times Aside from the futures markets, it is difficult to go short on crypto-currencies. Big gains are made in bull markets and panic selling occurs when the bears have control, such as at the moment. There is, however, another way of leveraging a profit out of crypto markets and Asian traders have found this ... Read More »

How Democratic Is the Euro?

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If the European Union is to remain viable and democratic at the same time, policymakers will have to pay closer attention to the demanding requirements of delegating decisions to unelected bodies. Dani Rodrik Project Syndicate They should promote such a delegation of sovereignty only when it truly enhances the long-term performance of their democracies. SAN SERVOLO, ITALY – When Italy’s president recently vetoed the appointment of the Euroskeptic Paolo Savona as finance minister in the government proposed by the Five ... Read More »

Typhoon Trump blows G7 off course

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Other leaders thought they’d kept the club together — until the US president tweeted his fury. David M. Hersenhorn Politico LA MALBAIE, Canada — As host of this year’s G7 summit, Canadian Prime Minister Justin Trudeau seemed to have just one over-arching goal: to get through the gathering without U.S. President Donald Trump blasting it to pieces. Trudeau succeeded — for all of about 90 minutes. Just an hour and a half after Trudeau finished his concluding news conference, an ... Read More »

Is the global economy just a giant debt scam? What the financial elite doesn’t want you to know

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Yanis Varoufakis saw power up close. He says capitalism is dead, democracy is crumbling and we’re ruled by debt Andrew O’Hehir Salon Why is the world the way it is, and how did it get that way? One book I read in the past year explained more about that question than any other, and it wasn’t about Donald Trump or the rise of the far right or the endangered state of democracy — or at least not directly. Beneath the ... Read More »

Turkey’s currency turmoil and upcoming election – what you need to know

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The Turkish lira has dropped more than 15% this year against the US dollar and the government is doing all it can to stem the flow. Gulcin Ozkan The Conversation Turkey’s central bank just raised the country’s main interest rate by 1.25 percentage points (to 17.75%) in a bid to stabilise the lira and halt surging inflation. This follows an emergency rate rise on May 23 of three percentage points. With elections on the horizon, this is a trying time ... Read More »

The rise and fall of AMP’s Catherine Brenner

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It all started to go wrong for Catherine Brenner the day that Jack Regan walked into the witness box at the Financial Services Royal Commission in Melbourne. Deborah Snow WAtoday The date was Monday, April 16, and Regan, the head of advice at financial giant AMP, was due to give his much-anticipated evidence under the hawk-eyed gaze of presiding justice Kenneth Hayne. Forty-seven year old Brenner, the well-remunerated chairman of AMP, logged on to follow the webcast live from Japan. ... Read More »

How Greece’s Busiest Port Reveals the Perils of Privatization

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Dockworkers say the same “harsh neoliberal experiment” that reduced their wages will spread to the rest of Europe. Alexander Saeedy The Nation Around 7 am at the Port of Piraeus near Athens, deckhands dressed in white began to unmoor the cruise liners and yachts filled with thousands of sleepy travelers ready to cross the Aegean Sea. But as the tourist trade picked up in the passenger and cruise terminals, some of the hundreds of dockworkers in the port’s northern cargo ... Read More »