Global Economy

admin January 25, 2019

IT BEGAN AS a joke: the Twitter hashtag #euroboom tacked on to news of any sign, no matter how faint, of a euro-area recovery. By 2017, when French, German and even Spanish GDP grew by more than 2%, it seemed to describe a real phenomenon. Alas, all too quickly #euroboom has turned to #eurogloom. GDP data scheduled for release later […]

admin January 25, 2019

AMERICA’S PRESIDENT knows a catchy number when he sees one. Like much of the world’s media, Donald Trump tweeted this week that China’s growth in 2018 was its slowest in nearly three decades. This, he said, ought to compel it to make a “Real Deal” on trade with America. China’s growth of 6.6% last year was […]

admin January 25, 2019

IT SOUNDS AS if it was named by a seven-year-old boy and looks like a film set. Housed in a sleek black truck, IBM’s “X-Force Command Cyber Tactical Operations Centre” travels from city to city, simulating the experience of falling victim to a cyber-attack. Rows of desks sport monitors and keyboards in a room dominated […]

admin January 24, 2019

AS DULL AS “watching paint dry”. That was how Janet Yellen, the former head of the Federal Reserve, described plans for a gradual unwinding of its $4.5trn balance-sheet announced in September 2017. The Fed’s stock of assets had swelled during the previous decade as it engaged in “quantitative easing” (QE), seeking to ease the pernicious […]

admin January 18, 2019

IN THE LAST three months of 2018 America’s federal government borrowed $317bn, or about 6% of quarterly GDP. The deficit was 1.5 percentage points higher than in the same quarter the year earlier, despite the fact that the unemployment rate fell below 4% in the intervening period. In cash terms America borrowed in a single […]

admin January 18, 2019

AMERICA’S BANKS ended 2018 as stockmarket pariahs. For a year or more after Donald Trump was elected president, their shares had been borne aloft by looser regulation, tax cuts and rising interest rates. But investors began to fret that those forces were fading, the long economic expansion would soon end and banks’ profitability was therefore […]

admin January 17, 2019

FOR MANY investors, debt in China is something to fear, a shadow over the world economy. But for a different breed, it looks more like a terrain of untapped profits. This dichotomy has been sharpened by a run of weak data in recent days. Worries about a sharp slowdown in China have rattled global markets. […]

admin January 17, 2019

IN UNCERTAIN TIMES Albert Edwards is someone you can rely on. For more than two decades, latterly as global strategist at Société Générale, he has been a steadfast prophet of gloom. As he stood to address the 400 or so investors gathered at his annual conference (or “bear-fest”) in London this week, he made a […]

admin January 11, 2019

AMERICA’S AGEING economic boom can still produce pleasant surprises. Companies added an astonishing 312,000 new jobs in December, the Bureau of Labour Statistics reported on January 4th, and raised pay at the fastest clip in years. For the third of working-age Americans without any college education, such spells of rapid income growth have been exceedingly rare, […]