Economy

The growing problem that could lead the world into a new kind of financial crisis

One particularly caustic attendee described this year’s Davos as a “reunion of losers”. Ben Wright The Sydney Morning Herald That might seem an odd thing to say given the Swiss mountain resort must have housed the greatest concentration of millionaires and billionaires anywhere on the planet over the past week. But he was alluding to how tarnished the company brands adorning the shop fronts along the promenade have become over the past year and the extent to which the mood ... Read More »

Trump climbs down in wall row, Congress passes bill ending shutdown

President Donald Trump on Friday brought a temporary end to the longest government shutdown in US history, while dropping his previous insistence on immediate funding for… Washington – AFP Hurriyet The announcement in the White House Rose Garden on the bipartisan deal marked a retreat by Trump, suspending a row that paralyzed Washington, disrupted air travel, and left more than 800,000… The top Democratic senator, Chuck Schumer, said he hoped Trump had “learned his lesson.” The Senate and House of Representatives both passed the deal by unanimous consent Friday. The White House later… Trump climbs down… Read More »

Europe in pieces: Where voters disagree

How a divided Continent faces the 2019 election. By Ryan Heath, Arnau Busquets Guàrdia, Hanne Cokelaere and Hanna Pawelec Politico The European Parliament election in May is expected to produce a major turnover in political power in the EU’s institutions, with populist parties making new gains and voters across the bloc split on what issues to prioritize in the ballot.  But what are voters most concerned about and do they trust the European Union to deliver? Here’s a look at ... Read More »

No thanks Brussels! British fishermen tell May to REJECT EU’s no-deal Brexit fishing plans

EU chiefs will launch an attempt to guarantee European fishermen access to British waters in the event of a no-deal Brexit, it has emerged. By JOE BARNES, BRUSSELS CORRESPONDENT Express EU Commission contingency planning reveals eurocrats will seek to secure Europe’s fishermen continued access to British fishing waters as part of a deal to limit the disruption of a hard Brexit. Brussels will also move to spend taxpayers’ money in order to compensate the bloc’s fishing vessels to “help off-set some ... Read More »

Corporations ‘failing to pay proper tax rates’ in EU

An investigation by the Greens in the European Parliament has shown big companies throughout the bloc are failing to pay their statutory taxes. The party has called for more social responsibility. Jane Mcintosh DW The only state in the EU where big corporations pay the statutory rate of tax is Bulgaria. In all other states, they pay, on average, less than the official rate. Those are among the key findings in a report is to be presented in Brussels Tuesday by ... Read More »

Davos: leaders talk about globalisation as though it’s inevitable – when it isn’t

Global leaders have descended on the Swiss ski resort of Davos for the World Economic Forum’s annual meeting. Jennifer Johns The Conversation This year’s theme is “Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution”. On the agenda is how countries can respond to and shape changes in how goods are produced, distributed and consumed. It is based on the idea that the world is entering a fourth industrial revolution, where a new wave of ... Read More »

World’s 26 richest people own as much as poorest 50%, says Oxfam

Charity calls for 1% wealth tax, saying it would raise enough to educate every child not in school Larry Elliott The Guardian The growing concentration of the world’s wealth has been highlighted by a report showing that the 26 richest billionaires own as many assets as the 3.8 billion people who make up the poorest half of the… In an annual wealth check released to mark the start of the World Economic Forum in Davos, the development charity Oxfam said 2018 had ... Read More »

Davos 2019: Global elites in crisis as they gather amid populist assault and accusations of failure

World leaders meet as once-dominant ideology of global trade threatened by nationalism Facing populist backlash and a worrying economic outlook, the world’s financial and political elite will gather in Davos, Switzerland, on Tuesday to discuss the future of global politics. Conrad Duncan Independent The influential World Economic Forum (WEF) takes place as nationalist movements continue to gain strength across Europe and the Americas, and the event’s once-dominant ideology of unrestricted global trade and… In France and the UK, politicians have struggled through months of chaos, caused by the gilets jaunes (yellow vests) movement and… Davos ... Read More »

Lebanon restricts dollar cash-outs in bid to bolster currency

A central bank decree that foreign currency entering via non-financial institutions must be cashed out in Lebanese pounds has sparked fears of a currency crisis Nasser Elamine Asia Times The Lebanese Central Bank has issued a circular requiring non-financial institutions that carry out money transfers from abroad to begin cashing out the amounts strictly in Lebanese pounds, sparking panic among a… The bank justified the January 14 announcement as a bid to shore up the national currency and to render transfers via ... Read More »

China’s looming great wall of debt may have ‘major global implications’

While many countries struggled following the 2008 global financial crisis, China appeared as though it had largely escaped unscathed. Tasha Wibawa ABC But observers are becoming increasingly concerned Beijing will struggle to repay an ever-increasing mountain of debt, with potential detrimental consequences for the global market. China’s debt has been a key factor to its economic success in riding out the GFC, due to a large government stimulus injected into its economy. However, the financial boost has mostly led to ... Read More »

Revolt and Repression in Zimbabwe

The Zimbabwean government’s decision to hike fuel prices has sparked fierce opposition.  Piers Pigou What triggered this explosion of unrest? In this Q&A, Crisis Group’s Senior Consultant Piers Pigou explains how economic hardship is driving ordinary citizens to unprecedented acts of resistance. On 12 January, in response to persistent fuel shortages compounded by manipulation and mismanagement of a currency crisis, President Emmerson Mnangagwa announced a fuel price hike of over 200 per cent to $3.31 per litre – making the ... Read More »

US House Democrats file bills to stop offshore drilling, exploration

House Democrats on Tuesday, 8 January, introduced a series of bills that would block the Trump administration from permitting offshore drilling in various regions of the U.S. exclusive economic zone. Steve Bittenbender SeafoodSource Opponents of offshore drilling claim the practice could devastate both the environment and the economies of coastal communities, with the fishing industry particularly at risk. “President Trump’s dangerous plans for offshore drilling will risk the livelihoods of millions on the Atlantic Coast and in New Jersey,” said ... Read More »

Xi Jinping will Give Donald Trump a Victory on Trade

Expect Trump to declare a “triumph” in a great trade deal that will feature China’s purchase of more than a trillion dollars of additional U.S. products. Graham Allison The National Interest With the conclusion of the first round of negotiations yesterday in Beijing, the way ahead for the United States and China to avoid a full-scale tariff war has become clear. With fifty days remaining before the March 1 end of the truce Trump and Xi announced to prevent U.S. ... Read More »

Manipur Governor sees NE as exclusive economic zone for organic products

Manipur Governor Dr Najma A Heptulla attends fourth Convocation of Central Agricultural University (CAU), Imphal at its Iroishemba campus near Imphal SOBHAPATI SAMOM NorthEast Now The Northeast should be developed as an exclusive economic zone for organic products as the advantage of organic farming needs to be exploited suitably through technical and institutional interventions. This was disclosed by the Manipur Governor Dr Najma A Heptulla while addressing the fourth Convocation of Central Agricultural University (CAU), Imphal at its Iroishemba campus ... Read More »

Erdogan’s $2 Billion Reason to Thank the Saudis

Turkey shrewdly took advantage of the spillover demand from Riyadh’s bond sale this week. Investors may well be underpricing the economic risks. Marcus Ashworth Bloomberg There are opportunistic financing deals, and then there’s Turkey. A $2 billion 10-year bond sale appeared out of nowhere for the country on Wednesday, with no roadshow and… But there was one big helping hand. Saudi Arabia had just launched $7.5 billion of new 10- and 30-year notes and had elected for tighter pricing rather ... Read More »

The US could lose its crown as the world’s most powerful economy as soon as next year, and it’s unlikely to ever get it back

The United States of America could lose its position as the world’s biggest economy as soon as next year — and once that happens, it is unlikely to regain the top spot as developing Asian economies power… Will Martin Business Insider According to research released this week by Standard Chartered Bank, China is likely to become the world’s biggest economy at some point in 2020, when measured by a combination of purchasing-power-parity exchange rates and… Using PPP alone, China is ... Read More »