Global Economy

admin September 19, 2018

The trade war between China and the United States is intensifying, but Beijing has just taken one potential weapon off the table. Premier Li Keqiang told an audience of global executives and policymakers that China would not weaken the yuan to boost trade with the rest of the world. “China will never go down the […]

admin September 18, 2018

For the first time in a decade, Corporate America is steering more money into stock buybacks than investing in the future. S&P 500 companies rewarded shareholders with $384 billion worth of buybacks during the first half of 2018, according to a Goldman Sachs report published Friday. That big bonanza for Wall Street is up 48% […]

admin September 18, 2018

Business leaders and officials in China say that Beijing is ready to dig in for a war of attrition with the United States on trade. The Trump administration launched its biggest barrage of tariffs yet just as top executives and policymakers were gathering for the start of a World Economic Forum event in the northern […]

admin September 17, 2018

Jaguar Land Rover has put 1,000 workers at one of its UK plants on a three-day work week because of plummeting sales of diesel vehicles and fears over Brexit. Britain’s biggest carmaker said that workers at the plant outside the city of Birmingham would receive full pay while on the reduced hours. A spokesperson said […]

admin September 17, 2018

Here’s some more good news for the US economy: Transportation is booming. The Dow Jones Transportation Average (DJT) — the lesser known cousin to the Dow Jones Industrial Average — has gained more than 9% this year, slightly outpacing the broader Dow’s nearly 6% increase. Investors like it when the twenty transportation stocks in the […]

admin September 16, 2018

1. Trouble in paradise: For the past decade, a river of easy money rushed into emerging markets. (Editor’s note: A technical issue resulted in an incomplete newsletter earlier Sunday. We apologize for the error.) Now that powerful force is reversing. Rising interest rates, along with trade wars, have started a stampede out of some emerging […]

admin September 15, 2018

Coal has been knocked down. But it’s not out by a long shot. Even though coal has been in steep decline, it’s still the most-used electricity generation source in 18 US states, according to government statistics published this week. Not even natural gas, a rapidly growing and cleaner burning fuel, leads in that many states. […]

admin September 14, 2018

Legendary investment bank Lehman Brothers was on fire — and no one was coming to put it out. Bank of America refused to rescue the 158-year-old Wall Street firm without support from Uncle Sam. The British government wouldn’t let Barclays (BCS) buy Lehman Brothers and its toxic balance sheet. And Washington decided against another politically […]

admin September 14, 2018

IN 1946 Gyorgy Faludy, a Hungarian poet, received 300bn pengo for a new edition of his works. The sum would have been worth $60bn before the second world war. But after the Nazis departed with Hungary’s gold reserves and the Russians occupied its territory, the country’s currency was not what it was—and becoming even less […]

admin September 14, 2018

When John Taylor starts remembering the years leading up to the financial crisis, his fury wells up all over again. As president of the nonprofit National Community Reinvestment Coalition, he warned Congress about the predatory and fraudulent lending that was fueling a housing bubble as early as 2000. Lawmakers told the Federal Reserve to write […]