Economy

The Arctic – The Arctic Russia’s plan for the world’s newest ocean

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There’s a new ocean at the top of our globe In just the past three decades, global warming has shrunk the size of the Arctic Ocean’s summer ice by half. Vox The region is now more accessible than it’s been in 1,000 years, and governments around the world have taken notice. The melting of the Arctic has grave implications for global weather patterns and rising sea levels, and most of the world sees it as a looming disaster. But for ... Read More »

World trade is going through a seismic shift — and nobody knows how it will end up

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NAFTA, Brexit, countries around the world are redefining their trade relations, bringing uncertainty the global economy does not need Special to Financial Post Gordon Isfeld OTTAWA — In the gaps between NAFTA negotiations and U.S.-Canada interest-rate ponderings, Brexit remains a painfully present problem that could fill any economic void with even greater global uncertainty. At the same time, the slow slog of talks on the make-up of a new free-trade pact between North America’s three economies seems to have lost some of its direction ... Read More »

West Face files claim against mortgage lender Home Capital

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West Face claim says ‘investors who purchased common shares of Home Capital to close out a short position were excluded from compensation under settlement terms’ of a class action suit Barbara Shecter Financial Post Alternative asset manager West Face Capital Inc. has formally filed a lawsuit against Home Capital Group Inc. and three former executives, seeking $70 million in damages over claims the mortgage lender’s public disclosure was “inaccurate, incomplete and misleading.” In a 17-page statement of claim filed in ... Read More »

China’s ‘Period of Strategic Opportunity’ in Mexico

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Beijing is looking to cash in on Trump’s rhetoric against Mexico and NAFTA As the Trump administration contemplates border wall prototypes and dissolving the decades-old North American Free Trade Agreement (NAFTA), China is taking a decidedly different approach to relations with Mexico. Margaret Myers Ricardo Barrios In recent months, Beijing has launched an unprecedented charm offensive south of the Rio Grande. The National Interest In addition to a series of new investments, and renewed talk of a bilateral trade pact, ... Read More »

Bank Indonesia declares bitcoin payment illegal

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Cryptocurrency’s volatility poses ‘huge risk’ to economy, central bank says Erwida Maulia Nikkei Asia Review JAKARTA — Indonesia’s central bank on Thursday said it had issued a new regulation prohibiting the use of cryptocurrencies — including bitcoin — in the country, as their rising popularity has raised concerns over unwanted impacts on the economy. Bank Indonesia had for some time said that the use of cryptocurrencies ran contrary to Indonesia’s law mandating the use of rupiah in domestic transactions. The ... Read More »

Economic Instability Endangers Democracy

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The world’s leading consolidated democracies have seen rates of economic growth consistently and persistently decline over the past forty years Jordan Willcox  The National Interest In recent years, a foreign-policy community once focused on a managed decline in U.S. global predominance has witnessed the birth of disquieting new phase. The European community is closing its borders and debating Brexit; nationalism and ethnocentrism is on the rise in rich-nation political parties; the Trump administration is working to exit major trade agreements. The Western ... Read More »

Brexit: SNP minister wants united Holyrood voice for single market bid

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Scotland’s Brexit minister has called on rival parties to unite and “speak with one voice” in a bid to keep the UK in the single market as political turmoil continued over Britain’s departure from the European… Russel Jackson The Scotsman Mike Russell said there was “overwhelming support” for this both at Holyrood and among the public as he urged Labour and the Tories to back the whole UK remaining in both the European single market and customs… He spoke out ... Read More »

Brexit Creates a Game of Risk for European Banks

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A hard Brexit represents a potential shock to the international financial system and has both direct and indirect consequences for the United Kingdom’s economy Scott B. MacDonald The National Interest While the government of Theresa May seeks to restart negotiations with the European Union on December 5, time is marching on. This is important as risk managers are looking at their watches and are increasingly concerned about London’s inability to come forward with a credible Brexit bill in the eyes of Europeans. The result could be ... Read More »

France is now the testing ground for Europe’s labor policies

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ROME — In September, French President Emmanuel Macron’s government launched its controversial reform of the French labor market, having won support in the French Parliament to pass these reforms by decree. Matt Browne The Washington Post With these reforms, Macron seeks to boost the competitiveness of the French economy and address unemployment, which has hovered persistently at just around 10 percent for years — almost twice the level of many other major European economies. Many believe that France’s existing labor ... Read More »

Is China’s Economic Power a Paper Tiger?

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The People’s Republic of China has surely seen faster GDP growth than the United States for most of the past forty years Derek M. Scissors  The National Interest It’s the value of that growth that’s questionable. The people complaining about U.S. decline in the face of China’s rise under President Obama have been replaced by new people complaining about the same thing under President Trump. The debate over policy in the two administrations plainly matters, but it should not obscure basic facts. The ... Read More »

Australia knocks UK Brexit trade plan

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Australia has criticised the UK’s post-Brexit trade plans to split quotas of food imports from around the world BBC EU rules allow for a certain amount of goods to be brought in from countries outside of the Union without charging full tariffs After Brexit, the UK and EU want to split these quotas, based on where the goods are mostly consumed. But Australian trade minister Steven Ciobo said it would impose unacceptable restrictions on their exports. He told BBC Radio ... Read More »

Blackmail — the business plan for cheaper wages

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Underpaying migrant workers has become a business practice for unscrupulous employers David Chau ABC For some employers, it is an easy way to boost the bottom line with a low risk of getting caught — hence there is little incentive to comply with industrial laws. It has even been described as a “business model” by worker advocates. “There are employers out there structuring the cost of doing business through stealing wages,” said Ged Kearney, president of the Australian Council of ... Read More »

Venezuela: Hunger by Default

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Economic mismanagement, corruption and dwindling reserves have forced Venezuela into penury and now into missed payments and partial default on its debts ICG Full-scale, internationally supervised negotiations involving a restored parliament are essential to pave the way to a debt restructuring and a free, fair presidential election. What happened?  On 14 November, credit ratings agencies declared Venezuela in partial default on its foreign debt, after the country failed to meet a $200 million payment to bondholders. Why did it happen?  Economic mismanagement ... Read More »

Public jittery as Turkish lira slides rapidly over political, economic issues

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Turks have over the past three months nervously watched the steady decline in value of the Turkish lira against the dollar, seeing it haemorrhage more than 10 percent in the past month alone. / AFP PHOTO / OZAN KOSE

The lira was trading at around 3.95 to the US dollar on Tuesday In May 2013, it traded at approximately 1.92 to the US dollar Middle East Eye ISTANBUL, Turkey – The spectre of economic hardship – if not outright crisis – is looming large yet again as the Turkish lira continues its rapid slide against the US dollar and euro, with some people already displaying signs of panic by talking of withdrawing their savings from banks as politicians revert to ... Read More »

How to future-proof the West’s economies

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Top economic thinkers from the U.S. and Europe say we need to start by fixing our politics Sure, growth could be more robust. MAURA REYNOLDS Politico Sure, some workers are getting left behind. Sure, corporate debt is high and markets look frothy. But those problems aren’t the biggest threat facing the economies of the United States and Europe. What is? The answer from a group of top economic thinkers convened by POLITICO isn’t something in the economy. It’s politics. At a ... Read More »

World’s Biggest Wealth Fund Wants Out of Oil and Gas

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The $1 trillion fund that Norway has amassed pumping oil and gas over the past two decades wants out of petroleum stocks. Sveinung Sleire Bloomberg Norway, which relies on oil and gas for about a fifth of economic output, would be less vulnerable to declining crude prices without its fund investing in the industry, the central bank said Thursday. The divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its ... Read More »