The Misadventures of “Tariff Man”
John Feffer via Fair Observer | For Donald Trump, tariffs are a substitute for diplomacy, just as harassment in his personal life is a substitute for normal human interaction.
World economy
A two speed world of technology
Alphavalue | Europe could be lucky after all to have indices with a minimal technological/IT component. The semiconductor, software, computer and digital media sectors dominated by the US face two paradigm changes. The first was fairly easy to identify, even so it took time to arrive: a certain regulation of the personal data market through anti-monopoly measures. The second disagreeable surprise is Huawei.
Global growth will not move from 3.2% in 2019, 2012-2016 levels
Macroeconomists at Morgan Stanley have updated their estimates and believe that global growth will remain frozen at this level for the rest of 2019.
Action against climate change: too many ambiguities
Miguel Navascués | Everyone talks ever more passionately demanding that climate change be slowed by changing from energy based on oil and gas to one that does not produce CO2. But no-one explains if technological change will really allow this to happen in time.
Accumulated debt of highly indebted companies reached 1.2 Tn$ in 2018
Caixabank Research | The current expansionary phase in the US economy is on course to be the longest in history and so far has avoided upheavals. Nevertheless, over recent years, it has produced financial imbalances, especially in the corporate sector, which could destabilise the economy as a whole in an adverse economic scenario. Below we analyse it in more detail.
Will Agricultural Technology Keep Food on Our Plates?
Louise Montgomery via Fair Observer | When it comes to agricultural technology, business opportunity is filling the void left by political inertia.
US corporate debt at 35% of company assets but elevated capacity to pay
Debt/Ebitda ratios of US companies is estimated to be around 3.3X compared to 2.3X in 2008, although the coverage of interest ratio (Ebitda/interests) reaches 7.4X compared to 7.3X in 2008. Therefore, although the level of debt is indeed high, the capacity to pay is also elevated, which is what really matters.
Tourists behaving badly are a threat to global tourism, and the industry is partly to blame
Freya Higgins-Desbiolles via The Conversation | The tourism industry’s challenge is to develop effective strategies to bring tourists and locals into better alignment.
China’s Electric Vehicle Market: A Storm of Competition Is Coming
Knowledge Wharton via Fair Observer | China is the world’s biggest market for electric vehicles — and conditions are ripe for a shakeout.
Why political meddling with central banks is a terrible idea
Central bank independence is increasingly at risk around the world.