World economy

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Five Predictions For The Future Of US Media

Nathan Meyer (Capital Group) | With remarkable speed, the COVID-19 pandemic has accelerated select investment themes across a number of industries. In my view as an equity analyst, nowhere is that truer than the media and entertainment sectors where technological advances and work-from-home trends are rapidly changing the landscape. For exmaple, streaming services such as Netflix, Disney+ and Amazon Video are the primary replacement for traditional pay TV bundles.


An exterior view of China Evergrande Centre in Hong Kong

Watch Evergrande: Chinese Real Estate Giant’s Debt Means 2% Of The Country’s GDP

China’s country’s largest real estate company, Evergrande, which is on the verge of bankruptcy with more than $300 billion in debt (about 2% of China’s GDP), has announced that it will not be able to pay interest next week. Weak home sales, especially in the last year, have put it in this cash-strapped position. Therefore, the situation is becoming increasingly tense. The group is described by Beijing as a “grey rhinoceros”, i.e., a large company with an alarming debt load representing a systemic financial risk.


Rusia's economy recovery

Russia’s ‘Fortress’ Strategy Is Not For Free

Atradius Research | Using a policy of fiscal austerity and credible inflation targeting, the Russian government has successfully insulated its economy from external shocks, including sanctions. Despite its success, the ‘Fortress’ strategy has also come at a cost: discontent among the population is growing over stagnating economic growth and declining real incomes. If Russia is to raise its income level, more robust reforms are needed to overcome structural impediments to…


labour market

US | The Labor Market Is Set To Fully Recover, But It Will Take Some Time

BBVA Research | The labor market hit the brakes in August, probably driven by both demand and supply factors as a consumption demand slowdown along with increasing health concerns, both associated with the Delta variant, impacted the labor market. Job creation was a major disappointment in August. There is still a way to go to fully recover and the road will likely remain bumpy in the short-term as the Delta…


JoeBiden

‘Delta’ Spelled With A ‘W’

Pablo Pardo (Washington) | In September, the slowdown has, unexpectedly, arrived in the US. The main culprit is the Delta variant of the coronavirus, which is once again claiming 1,500 lives daily and threatens to cause a ‘W’ revival. Until just a month ago, the biggest question regarding the US economy was whether its growth would beat China’s for two years in a row. The last time US GDP growth…


veolia suez

France Leads The Way In Public-Private Partnerships

Henry McCaw | In 2011, France dominated the European PPP market, accounting for 62% of the overall market value. According to the World Bank, this was reflected in the “wave of new ‘social infrastructure’ investments in health, education, defense, transport and urban planning sectors.” In the water sector, France is a global leader in private sector participation, with three French companies, Veolia, Suez and SAUR, dominating on the world stage. The French model of concession agreements in the water sector has increasingly been adopted in developing countries.


semiconductors osram

What If The Semiconductor Shortage Continues Until 2023?

Mirabaud | There has been a lot of talk about semiconductors and the extent of the shortage we’ve experienced since the start of the coronavirus crisis. However, while the consensus is betting on a return to normalcy in early 2022,we should perhaps look to 2023 instead, particularly because of the expansion of … cryptocurrencies.a. The factsDaimler AG’s chief executive yesterday warned that the global semiconductor shortage may not disappear completely…


US economy growth

M&A Deals Hit $500Bn In August And Nearly $4 Trillion So Far This Year; Tech Sector Leads The Way

BancaMarch | The M&A market accelerated in August and 2021 is on track for a record year. M&A deals worth almost $4 trillion have been completed since the beginning of the year. In August, a typically quiet month, $500 billion worth of deals were closed globally, close to double the same month last year and the $275 billion of 2019. The increase in corporate deals has been fuelled by low…


US payrolls

Workers Of The World Unite! How The Post-Pandemic Recovery Is Increasing The Bargaining Power Of Labour

Katherine Davidson (Schroders) | More than 114 million people lost their jobs over 2020, according to the International Labor Organization. Even more saw their working hours and wages cut. It may seem counter-intuitive, but the post-pandemic recovery is seeing a shortage of labour – pushing up wages and shifting the balance of power in workers’ favour for the first time in decades.


Seul South Korea

Fast Growth Helps South Korea Move Beyond Delta Concerns To Tackle Debt

Trinh D. Nguyen (Natixis) | Governor Lee pulled the trigger and delivered the first interest rate hike in Asia to take the policy rate to 0.75% from 0.5%, while the rest of the region is still reeling from Covid-19 suppressions. The decision signifies South Korea’s strength in making a rapid recovery – from exports that grew 41%YoY in the first 20 days of August to accelerating retail sales to 13%YoY…