Manuela Andreoni | As Brazil braces for its most important election in decades, hopes of stabilization are dwindling. The country is slowly stepping out of an almost three year-long recession, but uncertainty over what will happen at the ballot boxes later on this year is pushing debate on how to resume growth into a distant future.
What was a surprise in the IMF’s updated growth estimates was the correction made to the growth forecast for Spain this year (-0.1 pp to 2.4%) given “the impact of greater political uncertainty on confidence and demand.”
It seems we have a consensus: Europe is overbanked. Zombie banks need to be allowed to fail and the process of mergers needs to be strengthened, particularly cross-border. But the US model is more of an exception than the rule and there are countries, like Spain, where the consolidation could start to be excessive.
US President Donald Trump’s alleged remarks questioning why the US should take in immigrants from what he apparently called “shithole countries” — those comprising Africa, along with Haiti and El Salvador — have been met with indignation around the world.
It is expected that some Chinese local government officials may still try to fight bureaucracy with bureaucracy. For instance, when inspectors come, the officials will list how many meetings they have held, how many documents they have released and how many reports they have written to the cause.
Despite bitcoin has plunged below $10,000, almost halving in value from its peak price near $20,000 in late December, it is undeniable that alternative currencies are gaining attention against fiat currencies. However, as reported by Flossbach von Storch they all lack one characteristic absolutely necessary for money to have value over the long term: its existence as a commodity that has intrinsic value or can be changed into one that does.
After nearly a decade of easy money, the financial markets and the economy have not just become addicted to debt, but also indifferent to the continued growth in global debt.
When it comes to the fight against climate change, the conversation has focused nearly exclusively on how to bring down levels of one element — carbon. But what role will the metals and the mining industry play in the drive to realize a low-carbon future? As it turns out, one larger than we might think.
American president Donald Trump reportedly disparaged immigrants from Africa, El Salvador and Haiti on Thursday, asking his advisors, “Why are we having all these people from shithole countries come here?” Trump then suggested that the United States should bring more people from countries like Norway, whose prime minister he met a day earlier.
Gold’s recent winning streak was the mirror image of a weakening US dollar. Julius Baer’s analysts still see upside for the US dollar, resulting from accelerating growth and rising interest rates, which should weigh on gold over the coming months. These rate cycle headwinds should however fade as the year progresses, opening up medium- to longer-term bottom-fishing opportunities.