Showing posts from October, 2017

Global Economic Outlook Is Stable

The global economy is continuing to perform strongly, with growth stabilizing at levels last seen more than two years ago in Q3. According to estimates by FocusEconomics, the global economy expanded 3.2% annually in Q3, matching the result in Q2. Q3’s reading mostly reflected improving economic dynamics in emerging-market economies such as Brazil and Russia, while developed nations continued expanding healthily on the back of rising real wages due to low inflation and largely accommodative monetary policies. While the global economy appears to be in a sweet spot, political developments are gradually taking center stage, threatening to undermine the current economic momentum. The fourth round of the North American Free Trade Agreement (NAFTA) negotiations ended on 17 October without a conclusive result. Canada and Mexico rejected proposals from the U.S. of increasing protectionism. Despite their opposition to U.S. demands, Canada and Mexico did not walk away, and a fifth round of talk…

Southeastern Purchasing Managers Index

From the Atlanta Fed: The composite index measures the region's manufacturing sector based on key sector indicators; a reading below 50 indicates manufacturing is contracting, while over 50 means the industry is expanding.

Tension Escalates As The Spanish Senate and Catalan Parliament Vote To Determine Their Next Moves Today

On 26 October, President of Catalonia Carles Puigdemont put the decision of independence in the hands of the region's parliament. The move almost guarantees that the Spansh Senate decides on 27 October to approve measures that will allow Spain to take complete control over the semi-autonomous region's government, as Spanish Prime Minister Mariano Rajoy's conservative party hold a majority. How this all affects the economy of both the region and the country as a whole is uncertain, however, cracks have begun to show over the last few months as the Spain-Catalonia situation has escalated.

It has been a tense few months in the lead up to and in the aftermath of Catalonia’s independence referendum that was held on 1 October. Both pro-independence separatist groups and pro-unity groups have taken to the streets of Barcelona on occasion to peacefully protest while both the Catalan and Spanish governments have volleyed shots back and forth at one another. Although the referendum…

Canada Worried About NAFTA

OTTAWA – Behind the scenes Canadian officials are "extremely worried" about where the North American Free Trade Agreement negotiations are headed, and it’s time to be worried, says Rona Ambrose, a member of Canada’s NAFTA Advisory Council. - Link

Canada Is The United States' Largest Export Partner - Chad Hagan @ HuffPost 

The Securities Law Blog: Rio Tinto, Former Top Executives Charged With Frau...

The Securities Law Blog: Rio Tinto, Former Top Executives Charged With Frau...: The Securities and Exchange Commission today charged mining company Rio Tinto and two former top executives with fraud for inflating the val...

Beijing talks tough on regions eyeing independence - Guardian

"Mostly directed at Taiwan, but also applicable to Hong Kong, Xi became visibly animated and received the longest applause for his tough talk on regions with designs to declare formal independence. “We will not tolerate anyone, using any means, at any time to separate one inch of land from China,” he said. “Blood is thicker than water.” Distrust of China has been growing in both Taiwan and Hong Kong, and Xi announced propaganda pushes for the regions in order to “strengthen the ranks of patriot who love our country”. Similar overbearing attempts in the past have had little success in swaying the younger generation."

Outlook Worsens in Venezuela

What would Bolivar do? In August of this year Fortune reported: Venezuela's real-world bolívar is now worth considerably less than the fantasy currency in the video game World of Warcraft. According to Focus Economics, little has changed and the situation is slated to get worse. Forecasts place unemployment at 20-22% in 2018. 
Outlooks Worsens in Venezuela
President Nicolás Maduro addressed the Russian Energy Week forum on 4 October and affirmed that the nation would meet its debt obligations despite the imposition of a fresh round of sanctions by the U.S. The sanctions restrict the ability of the cash-strapped Venezuelan government to raise new debt from U.S. financial markets, amid increasing worldwide diplomatic isolation. Taking a softer stance, Russia is looking at the prospects of restructuring Venezuela’s bilateral debt payments. 
Maduro’s newly-introduced measures to peg the bolivar to a basket of currencies excluding the U.S. dollar and no longer accept payments in U.S…

Post Tom Price Healthcare Plans Still Heavy On Cuts

Healthcare Law 🚨 
New healthcare proposals coming up =  cut Medicare by 500 billion and Medicaid by 1 trillion over the next 10 years. 
Medicare exist because insurers historically shy away from those markets - they have little interest in covering seniors due to the probability of claims. Medicaid exists to provide care for those less fortunate. 
The economics of these new deals will shift the burden to generations in the future - generations who have yet to be born. American politicians need to stop making the same mistakes.
Why do we celebrate the failure of American elected officials ability to comprehend the economics and mechanics of our healthcare system?
Proposed Senate Budget Is Likely to Leave Millions of Americans Worse Off

In Retrospect: Catalan and Spanish authorities in collision course ahead of banned 1 October independence referendum

Spain: Catalan and Spanish authorities in collision course ahead of banned October 1st independence referendum
Originally published September 26, 2017
Tensions in Catalonia have reached a fever pitch in recent weeks as regional authorities forge ahead in their attempt to hold an independence referendum on 1 October. Spanish authorities, who have declared the vote unconstitutional and banned the referendum, are ramping up their attempts to prevent it from taking place, by seizing control of the region’s finances, raiding Catalan government offices in search of election materials and arresting senior officials.
Although the economy has escaped mostly unscathed from the lead-up to the current situation, Spain’s richest region could face severe economic fallout if Spanish and Catalan authorities remain on a collision course just days ahead of the planned referendum. The stakes are also high for Spain, as the region generates 19% of the country’s economic output. The independence of Catalo…

SEC Exposes Two Initial Coin Offerings Crimes

Just a matter of time. - CH

The Securities Law Blog: SEC Exposes Two Initial Coin Offerings Purportedly...: The Securities and Exchange Commission today charged a businessman and two companies with defrauding investors in a pair of so-called initia...