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china central bank

World economy 28th April 2021

China | Monetary Policy Challenges In The Post-Pandemic Era

JINYUE DONG & LE XIA (BBVA Research) | The PBoC started to exit the above easing measures in May 2020 when the Covid-19 pandemic got controlled in mainland China. Historically, the exit of easing monetary measures in the post-crisis time has always been a global challenge to central banks. China is not an exception in this respect. In February 2021, the normalization progress in China led to the gyration of the interbank interest rate in February 2021, just before the Chinese Lunar New Year as the investors’ fear of the authorities’ fast tightening climbed to a new high.

Bank of Canada

World economy 26th April 2021

Australia And New Zealand To Follow Canada In Tightening Monetary Policy

Intermoney | The progress made in the economic recovery has prompted the Bank of Canada to reduce net purchases of Canadian government debt by 1,000 thousand. CAD 1,000 billion to CAD 3,000 billion as of next week. A move that was supported by a very positive forecast for the world economy, projecting global GDP growth of 6.8% in 2021, 4.1% in 2022 and 3.3% in 2023. 

plastics to the ocean

World economy 25th April 2021

Trashed Cash – USD 6 Billion In Assets Dumped Each Year

Pieter Busscher (Robeco) | The findings were part of a series of studies from the World Bank investigating the economic and environmental impact of applying circular economy principles within industries. The study analyzed the plastic supply chains of Malaysia, the Philippines and Thailand, and found that 75% of plastic that could have been recycled had been discarded. This means that almost 5 million of the 6.5 million metric tons of plastic produced is either hauled to trash heaps, dumped in oceans, burned in incinerators or simply scrapped as litter in the open environment.

china happy

World economy 24th April 2021

China In 10 Charts

Aberdeen Standard Investments | Now the world’s second largest economy, China continues to grow at a far faster rate than other major markets. Driven by investment, manufacturing and exports, GDP expanded 2.3% year-on-year in 2020. It underlines how China’s economy was first in, first out of the Covid-19 pandemic and the successful measures taken to contain the initial outbreak and subsequent infection waves.

inflation board

World economy 23rd April 2021

Globalisation Ensures Low Inflation For A Long Time To Come

Ofelia Marín Lozano | In March, April and May this year we will see published inflation close to or above 2% year-on-year. But this can simply be explained by the rise in oil prices. Crude oil, which a year ago, at the height of its confinement, fell to levels of around 30 dollars per barrel, is now trading above 60 dollars per barrel, is now trading at over 60 dollars. In our opinion, although inflation could pick up notably in the second quarter of 2021, with year-on-year readings above the 2% that the US Federal Reserve and the ECB have set as a benchmark for the long term, the underlying inflationary risks remain well under control and support the maintenance of an accommodative monetary policy for a prolonged period of time. Simply put: core inflation only rises consistently if wages rise and, with higher unemployment, it is very difficult for that to happen.

companies' profitability

World economy 23rd April 2021

World GDP To Drop By 18% If There Is No Action Against Climate Change

Global gross domestic product will fall by 18% if no action is taken on climate change and global temperatures rise by 3.2 degrees Celsius, according to a report by Swiss reinsurer Swiss Re AG. The report was conducted by stress-testing the world’s 48 major economies, which account for 90% of global GDP, against four possible scenarios, with 18 % declines in the most pessimistic and 4 % in the most optimistic – achieving a global temperature rise of no more than 2 degrees Celsius, in line with the Paris Agreement.

JPMORGAN 682 967596a

World economy 21st April 2021

Standard Ethics has Downgraded JPMorgan Chase’s Corporate Rating

Standard Ethics has downgraded JPMorgan Chase’s Corporate Rating to “E+” from the previous “EE-”. The Bank -component of the SE US Index- is one of the world’s oldest and largest financial institutions. The US Bank financially supports the ‘Super League’ project consisting of some of the biggest European football clubs some of which are controlled by non-European shareholders.

Q1ShareholdersActivismok

World economy 15th April 2021

Q1 2021 Review of Shareholder Activism

Lazard’s Capital Markets Advisory Group | Global Actiivity Stable, Bolstered by U.S. Surge: In contrast to late 2020’s emphasis on mega-cap activity in the U.S., three-quarters of all Q1 2021 activity targeted sub-$10bn market cap companies, including Treehouse Foods (JANA), Kohl’s (Ancora, Legion et al.) and eHealth (Starboard and Sachem Head). Prominent activists Icahn, JANA and Starboard were among the quarter’s most prolific activists (launching 2 campaigns each), whi le perennially active Elliott launched only 1 new campaign (versus its average of ~4 campaigns launched per quarter since 2017)

digital dollar

World economy 13th April 2021

The Life Of A Digital Dollar

Alger (La Française AM) | With the rise of digital payments, the economics of credit and debit transactions has been a hot topic as investors try to figure out the best places to invest in the payment ecosystem. So where does your digital dollar go?

Latin America is the fourth largest investor in Spain?

World economy 12th April 2021

Spain Is The Second Biggest Destination For Latin American Investment

ICEX-Invest in Spain | Latin investment is a consolidated and growing phenomenon worldwide, representing over 750 billion dollars. Spain is a key destination for the internationalization of Latin American firms and has become their main gateway to Europe. In fact, in the last decade, Latin America has become the fourth largest investor in Spain, behind only the US, the UK and France, and ahead of countries such as Germany and China. The region’s cumulative investment in Spain now stands at 42,663 million euros, 61,104 million if investment in holdings is included. Since 2010, Latin America has invested an annual average of €3.8 billion in Spain.