Trade wars: An old hope
David Page (AXA IM) | We believe the US has been using tariffs primarily as a negotiation tool; China appears a special focus. But domestic political motives also appear to be a driver.
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Turning Point Of Auto Industry As Electric Cars Sales Post A 54% Rise In 2017
The dangerous rise of carbon emissions coupled with greater energy efficiency driven by the evolution of battery technology is building momentum towards acceptance of electric cars globally. For analysts at Wisdom Tree, “the proliferation of Electric Vehicles will be tied to the initiatives from governments across the world as they rely on supplementary grid infrastructure.”
Economic Inequality May Be At Its Highest Level Since The Industrial Revolution
Even though extreme poverty has fallen in recent years, economic inequality has grown more pervasive. In a brief note from Allianz Global Investors, the firm underlines this figure: the top 1% of the US population owned more than 38% of the country’s total wealth in 2016,while the top 10% of populations are benefiting disproportionately.
The Auto Trade War Is A Shaky Ceasefire
BoAML do not think the Juncker-Trump trade agreement is a game changer. Rather they argue that the deal lowers the near-term risk of an auto trade war, supporting their cautious optimism on Europe. However, the deal is largely symbolic in nature, and as we have seen with past “ceasefires”, it may not last long.
The Incredible Falling Copper Price
Justin Irving | Copper futures have been tanking of late, sinking from of $3.32 per pound on June 8th, to $2.7 per pound on July 19th, a 19% drop. This drop has largely undone the prices gains the commodity had accrued following the general rise in asset prices in November 2016. Predictably, the financial press have raised the alarm about “Dr.Copper” foretelling a slowing US economy.
China: From Tech “Follower” To Tech “Leader
China’ s rapid economic convergence is well-documented but a similar catch-up on innovation has often gone unnoticed. “This is partly because of China’s developing-country status, which is not usually associated with where cutting-edge technology is developed”, explain economists at AXA IM.
The Sharing Economy Still Means A Small Percentage Of Global Labor Force
The new type of labour relations explains the the current high rate of part-time, temporary and self-employed workers (19.4%, 12.2% and 13.7%, respectively, in 2017). “Most of our parents and grandparents spent their whole lives working at the same company where they began their career –something which is unthinkable for young people joining the labour market today”, says analysts from CaixaBank Research.
The Proposed Tax For Spanish Banks Not So Painful As Expected
Spain’s new prime minister Pedro Sanchez is envisaging to increase taxation on banks. Although the project is still in its infancy and needs the support of Parliament, experts at Alphavalue believe the assessment of the impact could be largely watered down.
Why China Hasn’t Broken WTO Rules
Yu Yongding via Caixin | Has China violated the rules of the World Trade Organization (WTO) as the U.S. has said? The most reliable answer should be from the WTO itself. On the 10th anniversary of China’s entry to the organization, former WTO Director-General Pascal Lamy said in an interview with the U.S. magazine China Business Review that “China has done really well in terms of implementing its long list of commitments, although no country is above criticism.”
Meet Colombia’s New President
Glenn Ojeda Vega and German Peinado Delgado | Iván Duque’s foreign policy will center on reinforcing ties with Colombia’s traditional allies and securing international support for the administration’s agenda.