Global Economy

admin July 13, 2018

Trade tensions with the United States are hurting economic growth in Europe. The European Union has cut its forecast for economic expansion in 2018 to 2.1%, down from a prediction of 2.3% in May. Pierre Moscovici, the bloc’s economy commissioner, said the downward revision “reflects the impact on confidence of trade tensions and policy uncertainty.” […]

admin July 13, 2018

Wells Fargo’s earnings keep getting dinged by a laundry list of scandals. Profit, loans, deposits and revenue all shrank last quarter, Wells Fargo (WFC) said on Friday. One thing that is going up is expenses. Wells Fargo said operating losses surged 77% last quarter because of various problems in its auto lending, wealth management, mortgage […]

admin July 13, 2018

ECONOMISTS think prices, like spilt ketchup, are sticky. They move only slowly as firms digest economic conditions. Financial markets are an exception. Computerised trading by thousands of participants means prices, especially of currencies, can move in a McFlurry. Since The Economist last updated the Big Mac index (BMI), our lighthearted guide to currency valuation, burger […]

admin July 13, 2018

Second-hand clothes donated by Americans have sparked a bitter trade dispute between the United States and one of the world’s poorest countries. The obscure conflict is playing out in the apparel markets of Rwanda, where the government has increased import duties on used clothing from the United States from $0.25 to $2.50 per kilogram. The […]

admin July 13, 2018

MERGERS of euro-area banks from different countries, a banker jokes, are “very much like teenage sex. There’s a lot of talk, but little action. And when it does happen, there’s a lot of disappointment.” In recent months gossip has linked each of France’s three biggest banks (BNP Paribas, Crédit Agricole and Société Générale), as well […]

admin July 13, 2018

The emerging trade war between the United States and China poses a problem for America’s flourishing oil patch. US oil exports have more than quadrupled since Congress repealed a 40-year ban in late 2015. The stunning growth has helped lift US oil output to record highs and inspired the development of huge export facilities. That […]

admin July 12, 2018

BEARS sound clever; bulls make money. This piece of financial acumen, imparted by a trader to a colleague, is hard to beat for brevity. It also makes a good point. There is something about market pessimism that endows bears with an aura of wisdom that is not always deserved. The cautious sound clever because they […]

admin July 12, 2018

Wall Street might not be freaking out about the trade war between China and the United States, but serious cracks are forming in the commodities market. Check out copper, the industrial metal that’s so sensitive to swings in the global economy that it’s affectionately known as Dr. Copper. The price has plunged 16% over the […]

admin July 12, 2018

President Donald Trump has embarked on a visit to Europe that will bring the American leader face to face with vocal critics of his trade policies. Trump has imposed steep tariffs on goods from the European Union, and he has recently repeated threats to go after the bloc’s auto companies next. Europe has fired back […]