Economy

SPD’s Andrea Nahles says Germany may give aid to Turkey

Ahead of Turkish President Erdogan’s trip to Germany in September, the SPD’s Andrea Nahles has said German aid is a possibility. It comes as tensions between the US and Turkey rise over the house arrest of a… DW The head of Germany’s Social Democratic Party (SPD) Andrea Nahles has said there could be circumstances in which Germany would provide financial assistance to Turkey during its economic… “A situation might arise where Germany needs to help Turkey, regardless of political tensions ... Read More »

Turkey’s currency collapse shows just how vulnerable its economy is to a crisis

If you happen to be a tourist in Turkey right now, consider yourself lucky. Otherwise, things look grim. Authors: The Conversation The Turkish lira has lost as much as a third of its value relative to the U.S. dollar in less than a month and recently hit a record low. As a result, all imported goods became more expensive practically overnight. And because Turkey is heavily dependent on foreign goods, most everything was affected, including gasoline, food, furniture and clothing. ... Read More »

Brexit: Ford warns UK it will take ‘whatever action is needed’ after profits hit

The car company blamed withdrawal from the EU for a £760m drop in profitability in 2017 Joe Watts Independent Car manufacturer Ford has issued a Brexit warning to British politicians that it will take “whatever action is needed” to protect its business. The ominous words came after the American car giant blamed uncertainty over Brexit for a colossal £760m drop in its European earnings in 2017. The firm pointed the finger at plummeting confidence in the UK since the Brexit referendum and raised fears of ... Read More »

Can Manila get a good joint exploration deal with China in the West PHL Sea?

NOW that the ball has started rolling for the possible joint exploration by the Philippines and China in the West Philippine Sea, analysts are wary of the risks it will bring. Bernadette D. Nicholas Business Mirror At the same time, however, they see that this can be averted if the technical working group (TWG) entrusted with the hard task of crafting the nitty-gritty of such an initiative will do its job well. Experts also believe that the TWG must ensure ... Read More »

Big consultancy firms call the Federal Government ‘The Dairy’ because they milk it for all it’s worth, inquiry hears

Are consultants making so much money from the Federal Government that they’re now treating departments as cash cows and openly dubbing it “The Dairy”? Henry Belot ABC That’s the charge from federal Labor, which confronted the big four consultancy firms — Deloitte, KPMG, PriceWaterhouseCoopers and Ernst and Young — at a parliamentary inquiry on Friday. The firms, which have won more than $1.7 billion in Federal Government business in recent years, say they are not aware of the nickname reportedly ... Read More »

US ‘picking and choosing’ from the Law of the Sea

A recent article argues that China is ‘selectively choosing the parts of the UN Convention on the Law of the Sea (UNCLOS) that it likes and is ignoring or reinterpreting the parts that it does not like or… Mark J Valencia EastAsiaForum The argument is made on the basis that China sent a ‘spy ship’ to observe the Rim of the Pacific Exercise, the world’s largest joint naval exercise, held in June and July 2018. But this account ignores that ... Read More »

This new Defense Department map shows how China says one thing and does another with its military operations at sea

China’s expansive claims in the South China Sea and its broad interpretations of international law often lead it to protest what many other countries consider to be normal naval maneuvers in the area. Christopher Woody Business Insider But farther afield, Beijing’s activity indicates that it doesn’t abide by the standard it applies to others. China frequently protests military operations by US and other countries in its Exclusive Economic Zone, which can extend up to 230 miles from a country’s coast. ... Read More »

Macronomics hits speed bump

Slowdown in French growth risks causing political trouble for president. Zachary Young Politico PARIS — After the surge, the sputter. Last year, as Emmanuel Macron swept to power pledging business-friendly policies, France’s economy zoomed ahead to post growth of 2.2 percent. This year, even with signature Macron reforms such as a rewrite of the labor code and the partial elimination of France’s wealth tax taking effect, things aren’t looking so good. Budget Minister Gérald Darmanin has backed away from the government’s earlier projection of 2 percent growth ... Read More »

Vital Signs: Turkey shows the economic pain of global democratic backsliding

As American baseball legend Yogi Berra once supposedly quipped, “It’s déjà vu all over again.” Three years ago the crisis was in Greece, now it’s Turkey. Richard Holden The Conversation Another European summer and another European economic crisis. It’s tempting to say that being in Europe is all the two situations have in common. Greece’s population is a little over 10 million; Turkey’s is nearly 80 million. Greece’s troubles were triggered by out-of-control government debt; Turkey’s government debt-to-GDP ratio is ... Read More »

Erdoğan, Trump, and the Strongman Politics Devastating Turkey’s Economy

The usually bustling open market in the Kadıköy district of Istanbul was half full on Sunday. Shop owners had increased their prices twenty per cent over the past two weeks. Fariba Nawa The New Yorker The cost of a package of eggs had risen by fifty per cent in a week; the price of bananas imported from Latin America had doubled. Aynur Keskin, a homemaker with two school-aged children, bought a few items and shook her head, dismayed at the ... Read More »

America is Addicted to Sanctions

Ukraine is a good case study in the ineffectiveness of sanctions. The best way to think about the role of sanctions in American foreign policy is to regard it as an addiction. Nicolai N. Petro The National Interest Think about it. The inability to change the behavior of even the most rinky-dink nations must be enormously frustrating to those at the helm of the world’s lone superpower. This leads, not surprisingly, to the search for ways to assuage this sense ... Read More »

Is freelancing the future of employment?

Today, freelancers represent 35% of the United States workforce. In the European Union, the rate is 16.1%. Both figures demonstrate the same global trend: from creative entrepreneurs to those paid by the… Anthony Hussenot The Conversation So, too, are analyses of this phenomenon, as journalists, sociologists, human resources specialists, life coaches, even freelancers themselves try to uncover “the truth” about freelancing. That’s because of the “gig economy”, as it is sometimes called, is a Janus-faced – and relentlessly evolving – ... Read More »

Australia could house around 900,000 more migrants if we no longer let in tourists

Many who fear Australia’s population boom believe we should be cutting down on immigration. They blame immigration for congestion and expenditure of environmental and other vital resources. Raja Junankar The Conversation They say Australia’s cities are becoming overcrowded and cannot sustain more people. But if Australia were to cut down on immigration, it would also then make sense to introduce policies that limit numbers of international tourists and students. Why single out one group of people? If any person living ... Read More »

New Zealand bans foreigners from buying property in effort to clamp down on house price growth

New Zealand’s Parliament has passed a law to ban many non-resident foreigners from buying existing homes, completing the Labour-led Government’s election campaign pledge. ABC Prime Minister Jacinda Ardern campaigned before September’s election on a promise to clamp down on house price growth and reduce high rates of homelessness, in part by banning foreign buyers. “This is a significant milestone and demonstrates this government’s commitment to making the dream of home ownership a reality for more New Zealanders,” Associate Finance Minister ... Read More »

Economic war on Iran is war on Eurasia integration

US sanctions on Iran should be interpreted as a piece in a much larger chessboard Hysteria reigned supreme after the first round of US sanctions were reinstated against Iran over the past week. Pepe Escobar Asia Times War scenarios abound, and yet the key aspect of the economic war unleashed by the Trump administration has been overlooked: Iran is a major piece in a much larger chessboard. The US sanctions offensive, launched after Washington’s unilateral pullout from the Iran nuclear ... Read More »

Why Turkey’s Lira Crisis Matters Outside Turkey

Investors are fretting about emerging markets again. Turkey is the front-burner concern at the moment, but what really is getting people’s attention is the prospect that the financial problems there could spread to other fast-growing but risky countries. By Matt Phillips The New York Times If history is any indication, that has the potential to quickly turn a local crisis into a global one. Or maybe not. What’s happening in Turkey? Over the last week the value of the Turkish ... Read More »