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Empty pockets TC

World economy 8th June 2022

What To Expect From Sri Lanka’s Debt Restructuring? Lessons From Argentina And Ecuador

Alicia Garcia Herrero & Junyu Tan (Natixis) | After the pre-emptive announcement to suspend all foreign debt repayments until discussions for an IMF bailout are completed, on May 18 Sri Lanka stepped into the dangerous path of a sovereign default as it missed the 30-day grace period on its USD 78 million worth coupon payments originally due April 18. Against this backdrop, investors’ key question is how deep the debt…

Ferrovial

World economy 6th June 2022

Ferrovial agrees to buy Carlyle’s stake in the new Terminal 1 at JFK airport for $1.140 B

Bankinter | Ferrovial has reached an agreement with Carlyle to buy its stake in the new Terminal 1 at JFK airport (New York). It will acquire 96% of the vehicle through which The Carlyle Global Infrastructure Fund holds 51% of the concession. Ferrovial’s investment will be 1.140 billion dollars. The accord is subject to certain suspensive conditions and the company will provide more details on 9 June at 18:00h. The…

picture 2

World economy 2nd June 2022

S&P 500: Already More Earnings Revisions Are Down Than Up.

Earnings revisions moved into negative territory last week, implying that there are more downward revisions than upward revisions, a dynamic that Morgan Stanley analysts say “typically precedes EPS consolidation”. In that sense, they point out that “EPS consolidation in a growth scare environment rather than a recession is typically 3% on average … and spanning an average period of 3 months. Applying this historical precedent to the current environment results…

gestamp china2

World economy 31st May 2022

Pandemic And Security Shocks Shake But Won’t Destroy Global Value Chains

Theo Smid (Atradius) | We do not expect a major shift in production strategy following Covid-19 pandemic and the Russia-Ukraine conflict. It could lead to some strategic reorientation, but no major step back on the globalisation ladder. The most important argument is that the key rationale of global value chains – labour cost arbitrage opportunities – still holds and the alternatives to GVCs are not necessarily better.

Fed apertura

World economy 26th May 2022

Demand For Repo At The Fed Hits New Highs: $2 Tr

Intermoney | The increased scarcity of paper is prompting money funds to dump their excess liquidity in the reverse repo window, for which the Fed is offering 0.8%. In fact, demand for Fed reverse repurchase agreements reached new highs after 94 participants placed a total of $2,045 tr. As we have explained, the increased interest in reverse repo trading, which is usually an investment of last resort, has been exacerbated…

US elections, Joe Biden

World economy, World politics 25th May 2022

Xi, Biden Switching Strategies For Dominance

Alicia García Herrero (Natixis) | US President Joe Biden’s long-awaited trip to Asia got off to a poor start, after ASEAN leaders’ official visit to the White House saw hardly any relevant policy decisions, and Biden’s stingy pitch of $150 million to ASEAN economies. Based on that example and Biden’s difficult political situation at home, the stakes for his trip to Asia were low. But reality has proved the pessimism…

Japanese general

World economy 19th May 2022

Japan’s GDP Shrinks By 1% In Q1 2022 Vs Previous Quarter

Link Securities | Japan’s GDP contracted by 1% in Q1 2022 from the previous quarter on an annualised basis, a smaller decline than the 1.8% drop expected by analysts. In addition, in the previous quarter Japan recorded GDP growth of 3.8%, revised downwards from an initial estimate of 4.6% growth. The main surprise was a marginal 0.1% annualised fall in private consumption, which is explained as the main drag on…

Arabia

World economy 17th May 2022

Saudi Arabia’s New Tourism Roadmap To Challenge Jordan And Egypt

By Juan Girón Roger ( journalist). Text and pictures | The trade show for Arabic travel and tourism, the Arab version of Fitur, started in Dubai in May 9 and will continue on virtual format until May 19. Recovery, the role of technology for a renewal of travel and personalization for the traveler experience were the buzzwords there. They have what it takes –spectacular projects and huge budgets to make…

Joshua Angrist

World economy 15th May 2022

Joshua Angrist: Nobel Prize Conversations

Meet economist Joshua Angrist who believes that to be a good labour economist, you should have had some real-life job experience. In conversation with our podcast host Adam Smith, Angrist tells us about his disinterest in school and how as a teenager he was more interested in earning money and maintaining his car. His later surprising and instant connection with economics led him to dedicate his life to his research:…