Agricultural and livestock commodities generally had another good month, but some stood out more so than others. Lean hogs made strong gains of 32.1% last month leading the group by a wide margin and entering positive territory year-to-date. In 2019, African Swine Fever in China had cut the country’s pork production by 21.3%, and a further 19% loss in production happened in the first 6 months of 2020 (on a year-on-year basis). As a result, there has been a rapid rise in pork imports notably from the US and Spain.
In the World
Edmond de Rothschild | As Warren Buffet likes to say, “You never know who’s swimming naked until the tide goes out. The exogenous shocks generated by the crises throw a harsh light on the real state of the market, and the excessive risks taken by investors are evident. The sub-prime mortgage and sovereign debt crises were good examples of this phenomenon. But while the financial shock of 2008 had an immediate impact on mergers and acquisitions and led to a collapse in valuations, what can we say about the effects of the coronavirus crisis?
Demographics and labour-market inclusion are increasingly important determinants of growth in advanced economies where productivity is in structural decline, but the impact is highly uneven. Italy and Japan are particularly vulnerable to below-par growth. Scope Ratings has examined the impact of demographic trends on long-term economic growth in major economies, assuming productivity growth and employment rates remain constant.
Getting 65 heads of state to agree to anything is remarkable. But when the topic is “meaningful action” on biodiversity, the “Leaders’ Pledge for Nature” is a big deal. This week, the UN held a virtual biodiversity summit, aiming to reach a new agreement when the “UN Convention on Biological Diversity” convenes in China in May 2021. DWS talks about the economic consequences of biodiversity loss and the role of financial regulators.
Ian McCredie | True to himself, US President Donald Trump completely failed to address any of the issues confronting the global community in his keynote speech to the 74th General Assembly of the United Nations. Instead, he used the platform to criticize China, to excoriate Iran, to boast of how big and dangerous the US military has become, and to urge every nation to close its borders to even the most hungry or persecuted migrants.
The symbolism of President Trump testing positive for coronavirus will not be lost on market participants and economists. Many things – from US-China relations, post-election tax policy, the US’s relationship with global institutions, trade, climate change progress, social cohesion in the US –depend on how a 74-year old man reacts to getting a virus that has claimed over a million lives globally this year
The Australian government this week announced an investment in developing its blockchain industry as part of a wider digital expansion package. Unveiling its $574m Digital Business Plan that includes seven-figure grants for distributed ledger technology initiatives, Prime Minister Scott Morrison earmarked a substantial investment in blockchain.
According to Ray Dalio, the founder of Bridgewater, 90% of governments’ attempts to reflate their economies have ultimately been successful over the past 200 years. In other words, after a few years of monetised deficits, trials and errors by policymakers, inflation will eventually rise.
The Mexican Institute of Social Security (IMSS) reported that 92.4 thousand formal jobs were created in August, equivalent to 8.3% of the 1.1 million jobs lost from March to July. The weak recovery in employment could not stop the deterioration of the labor market in a generalized way.
The Conversation | President Donald Trump and former Vice President Joe Biden took part in a presidential debate Sept. 29 that exemplified the lack of civility in American politics. The president frequently interrupted and spoke over his challenger, Biden told Trump to “shut up,” and few issues were discussed in enough depth to provide much information to undecided voters. We asked three scholars to discuss themes brought up by moderator Chris Wallace of Fox News, who struggled throughout the debate to keep control.