Economy

Revenge of the TPP?

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The Trans-Pacific Partnership is back on the menu for a number of Asia-Pacific countries Scott B. MacDonald  And with America on the sidelines, U.S. exports could suffer. The National Interest One of the first actions that Donald Trump did when he came into office was to pull the United States out of the Trans-Pacific Partnership (TPP), a trade deal he called a “disaster.” According to him, past U.S. leaders were inept on trade and his administration’s approach would strike tougher, ... Read More »

Why does Sweden produce so many startups?

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What do Spotify, Minecraft and Candy Crush Saga have in common? John McKenna World Economic Forum They were all made in Sweden. Skype was co-founded by Swedes and SoundCloud started in Stockholm before moving to its current home in Berlin. Sweden is home to Europe’s largest tech companies and its capital is second only to Silicon Valley when it comes to the number of “unicorns” – billion-dollar tech companies – that it produces per… Why does Sweden… Read More »

Green finance? Why global banks are pledging billions to fight climate change

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Banking giant HSBC has pledged US$100 billion (£76 billion) to “fight climate change”, to be spent on sustainable finance and investment over the next eight years. Simon Wilde The Conversation It also commits to increasing its own use of renewable energy and to reducing its funding of coal projects. HSBC is following a growing trend among investment banks which includes a US$200 billion funding commitment from JP Morgan Chase, the acquisition of the UK’s Green Investment Bank by Macquarie, and ... Read More »

Society relies on a social compact. Time for tax-avoiding multinationals to sign up

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Pat Leahy: The political centre needs to force big business to pay its way The Irish Times Pat Leahy Western countries are by and large the most civilised, comfortable and desirable places to live in the history of mankind. If, in a version the “veil of ignorance” thought experiment, you could choose any time or place to live, not knowing your race, abilities, talents or gender, you’d be mad not to choose to be born into a modern western country, ... Read More »

Yanis Varoufakis, the Bad-Boy Former Finance Minister, Is Back

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In a new book, a star of the European left argues that Greek’s financial crisis prefigured the fissures afflicting Europe today. Rachel Donadio The Atlantic PARIS — In the often-dismal European landscape of technocrats and party hacks, few figures are as colorful and polarizing as Yanis Varoufakis. Remember him? The bad-boy Greek finance minister who, in a heated moment in the European debt crisis in 2015, showed up to meet the chancellor of the exchequer in a long black leather ... Read More »

Fight for Your Right to Proxy

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Are shareholders finally on equal footing with corporate executives — or have investors become drunk on power? Alicia McElhaney When Institutional Investor published a report on proxy reform in its April 1991 issue, corporate governance was on the precipice of change. The California Public Employees’ Retirement System and College Retirement Equities Fund were lobbying the Securities and Exchange Commission to give institutions a say in corporate governance, as Stephen Clark reported in “Push Comes to Shove on Proxy Reform.” The raft of ... Read More »

Will the Easy-Money Era Lead to a Recession?

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The Fed has already achieved its objective of escaping 0 percent Now the goal is to avoid recession. Samuel Rines As Janet Yellen readies for her departure from the Federal Reserve, a sentiment creeping into markets that the era of “easy money” is over—as if somehow the Yellen Fed was the root of all easiness. The National Interest Yellen’s Fed was the first in recent history to oversee only rate increases—and not encounter a recession. That is quite the accomplishment: ... Read More »

Endowments Boom as Colleges Bury Earnings Overseas

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American universities are using offshore strategies to swell their coffers, skirt taxes and obscure investments that could spark campus protests. STEPHANIE SAUL The New York Times In 2006, the endowments of Indiana University and Texas Christian University invested millions of dollars in a partnership, hoping to mint riches from oil, gas and coal. The partnership was formed by the Houston-based Quintana Capital Group, whose principals include Donald L. Evans, an influential Texan and longtime supporter of former President George W. ... Read More »

The GOP Tax Plan Tells Us Everything About Who Matters In American Democracy

WASHINGTON, DC - NOVEMBER 02: Flanked by Speaker of the House Paul Ryan and House Ways and Means Committee chairman Rep. Kevin Brady (R-TX), President Donald Trump speaks about tax reform legislation during a meeting with members of the House Ways and Means Committee in the Cabinet Room at the White House, November 2, 2017 in Washington, DC. On Thursday, Republican lawmakers unveiled their plans for a massive rewrite of the U.S. tax code. (Drew Angerer/Getty Images)

Your boss, not you. The United States is the richest country in the history of the world. Last year, the genius and muscle of the American people generated more than $18.6 trillion in wealth. Zach Carter  HuffPost This year, our brains and brawn will combine to create well over $19 trillion. Despite all the debt theatrics of the Republican Party during the Obama presidency, we owe just $6.2 trillion to other countries ― less than four months of our collective ... Read More »

Will exodus of firms from Catalonia economically influence voters?

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Damage to Catalan economy’s credibility and investor confidence may persist for years The secessionist process initiated by Catalonia’s regional government has prompted companies to relocate in other Spanish regions to ensure continued free-market access to the rest of Spain and the European Union. José Guimón The Irish Times Over 1,300 companies have now moved their headquarters outside Cataloniain the three weeks following Catalonia’s illegal referendum for independence of October 1st. The traditional concern that multinational affiliates are “footloose” applies equally to local companies. ... Read More »

Why Australia’s small businesses are hiring migrants

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About 42 cents of every dollar on average spent at a small business is reinvested back into the local community, new research shows. Rashida Yosufzai SBS A new survey has found almost half of every dollar spent at a small business is reinvested back into the local community. The survey also shows more than a quarter of small business owners say foreign workers drive innovation within their business. Twenty six per cent of small business owners polled in the independent ... Read More »

A basic income for everyone? Yes, Finland shows it really can work

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Mark Zuckerberg, Bernie Sanders and Elon Musk back the idea And trials suggest it can liberate jobless people from a life of humiliation Aditya Chakrabortty The Guardian In a speck of a village deep in the Finnish countryside, a man gets money for free. Each month, almost €560 (£500) is dropped into his bank account, with no strings attached. The cash is his to use as he wants. Who is his benefactor? The Helsinki government. The prelude to a thriller, ... Read More »

Three charts on: job prospects for refugees in Australia

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Hola gracias el gracis While refugees will always face major challenges in making the transition to employment, new research indicates their job prospects improve the longer they are in Australia. Pilar Rioseco  John De Maio But for those who do find work, it’s not always in their chosen profession. Most are in low-skilled occupations. The Conversation The Building a New Life in Australia study is longitudinal, following the journey of almost 2,400 humanitarian migrants, including refugees and asylum seekers, from ... Read More »

Scottish economy ‘fundamentally strong and ready to face Brexit’

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Scotland’s economy is “fundamentally strong” and ready to meet the challenges of Brexit, the Economy Secretary has said Lucinda Cameron Keith Brown told the Unite conference on Saturday that the economy is growing while the number of people in employment has risen and unemployment has fallen. The Scotsman However he said withdrawal from the EU posed some “serious headwinds” and warned that a no-deal Brexit would be “catastrophic”. He said Scotland would lose an estimated £11 billion a year by ... Read More »

How Islamic Finance Can Save the Global Economy

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You can’t make money from money forever: The case for the Islamic financification of global markets. Ashby Monk Institutional Investor The market for financial derivatives is valued at a quadrillion dollars, give or take a few hundred trillion. I can’t contemplate how big that is or what it even means. Where is that money? I know you can’t physically touch it — just as you can’t touch a company’s market capitalization or an index. But is it real? The financial ... Read More »

World’s witnessing a new Gilded Age as billionaires’ wealth swells to $6tn

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Not since the time of the Carnegies, Rockefellers and Vanderbilts at the turn of the 20th century was so much owned by so few Rupert Neate The Guardian The world’s super-rich hold the greatest concentration of wealth since the US Gilded Age at the turn of the 20th century, when families like the Carnegies, Rockefellers and Vanderbilts controlled vast fortunes. Billionaires increased their combined global wealth by almost a fifth last year to a record $6tn (£4.5tn) – more than ... Read More »