In The News

Vandalism Against Multilateral Systems: El País

Ernesto Zedillo Ponce de León June 29, 2020
The United States has withdrawn from many global organizations, reducing its own leadership role while enhancing influence for China and Russia. Latin American governments could respond to the Trump administration’s efforts to place a US citizen in charge of the Inter-American Development Bank, disrupting traditional governance. The administration often selects individuals who reject the mission...

Flashpoint in New Financial War: New Statesman

George Magnus June 17, 2020
China and the US wage war on multiple fronts – trade, tech, social media and communications. China takes steps to impose a National Security law for Hong Kong and that could extend a new front into finance and weaponization of capital, argues George Magnus for New Statesman. The United States has “the biggest, deepest, most transparent and trusted capital markets subject to the rule of law, and...

Argentina in Default: Buenos Aires Times

June 3, 2020
Two rating agencies, Fitch and S&P reduced Argentina’s bonds to default status after the nation missed a $US500-million payment. Negotiations for debt restructuring are underway, with the hopes of agreement and possible rise in the bond rating. A lower rating forces nations to pay higher interest rates. Argentina’s public debt is 90 percent of GDP at the end of 2019. The Covid-19 pandemic has...

How We Broke the World: NYT

Thomas L. Friedman June 2, 2020
Global insecurity has intensified with the gradual dismantling of protections. “Over the past 20 years, we’ve been steadily removing man-made and natural buffers, redundancies, regulations and norms that provide resilience and protection when big systems – be they ecological, geopolitical or financial – get stressed,” explains Thomas Friedman for the New York Times. Obsession with short-term...

US Moves to Audit Chinese Firms: WSJ

Dave Michaels and Akane Otani May 28, 2020
Chinese companies listed on US stock exchanges have not been subjected to inspections by US regulators, and the US Senate approved legislation that would require the Chinese firms to meet US standards. “Unlike other countries, China has never given U.S. regulators routine access to audit records needed to review the quality of financial accounting, according to U.S. officials, who have sought a...

Islamic Finance Confronts Pandemic: Global Finance

Chloe Domat May 24, 2020
The Islamic finance industry, operating in about 80 nations, has a large market share in microfinance, small enterprises and retail lending. The Covid-19 pandemic will hit the industry hard with governments closing stores and ordering social-distancing, along with many borrowers seeking forbearance, restructuring or new loans. Governments hurried to assist corporations, with less support for low-...

Covid-19 Stimulus: South China Morning Post

Nicholas Spiro May 15, 2020
Central banks around the globe organize massive stimulus programs from central banks, but these are not without risk. By reducing interest rates and rapidly investing in a range of assets to prop up prices, central bankers hope to save jobs and prevent a long economic depression. Governments already holding heavy debt extend rescues to a range of businesses, including some that would have failed...