In The News

5 Market Axioms Lose Reliability: Financial Times

Mohamed El-Erian November 14, 2019
Systemic changes are underway in markets, and spreading nationalism may put economic globalization on pause. Allianz economist Mohamed El-Erian warns that investors cannot depend on globalization expanding markets and efficiency, emerging economies catching up with advanced economies, robust liquidity stabilizing markets, policies limiting economic downturns, or governance supporting the global...

Fernández's Rise in Argentina: Bloomberg

Patrick Gillespie and Jorgelina do Rosario October 25, 2019
Alberto Fernández’s began planning to run as Argentina’s president early in 2018 when current President Mauricio Macri was still popular and the economy showed signs of recovery. He set out to unite splintered Peronists who favor workers over business owners and reconcile with former President Cristina Fernández de Kirchner as his deputy. Fernández had resigned from her cabinet after she tried to...

Negative Interest Rates in Europe: DW

Uwe Hessler October 5, 2019
Low and negative interest rates keep loans flowing. Europe tries to stimulate its economies with low rates, and some banks charge customers who keep large amounts in their accounts. Governments or individuals can take out an individual €1000 loan and repay only €995, while savers receive no interest at all, explains Uwe Hessler for Deutsche Welle. “A negative deposit rate is intended to encourage...

China’s US Delisting Fears: Bloomberg

September 30, 2019
The Trump administration has considered removing Chinese firms from US stock listing, report unnamed officials. Then, a US Treasury statement suggested there are no plans for delisting at this time. China responded with assurances that it will continue to open its financial markets and encourage foreign investment, reports Bloomberg. “A U.S. crackdown on capital flows would present a new pressure...

Not Disclosing ESG Data: Wall Street Journal

Maitane Sardon September 29, 2019
Investors prefer hearing about environmental, social and governance impacts from companies rather than surprise announcements from the media or government investigations. The term ESG investments was coined in 2005. “[W}hile companies that don’t disclose environmental and social data may not always lose investors, they are more often being passed over by new investors, in favor of firms with...

Climate Strike Spans Continents: Financial Times

Sarah Provan, Philip Georgiadis, Camilla Hodgson, Myles McCormick, Adam Samson September 20, 2019
Millions of students and their supporters are protesting to demand immediate action from political leaders on climate change, ending the reliance on coal and other fossil fuels. Protests are scheduled in about 3,000 cities and more than 160 nations. Many businesses lend their support, with one group ringing fire alarms, responding to an early call of activist Greta Thunberg’s: “I want you to act...

Microloan Problems in Cambodia: Spiegel

Vanessa Steinmetz August 19, 2019
Even small amounts of debt can contribute to lasting trouble for those living in developing nations. Vanessa Steinmetz describes the plight of a cassava farmer and father of five in Cambodia who struggles to repay a bank microloan of $3250 just before the prices of that commodity fell. He had placed a hectare of his farm as collateral, before selling other land at a loss and taking out another...