Top Stories

World economy

Black Friday2020

In the World, World economy 28th November 2020

Five Ways Black Friday Shopping Will Be Different In 2020

In 2020, people in the UK will spend an estimated £6 Bn on Black Friday and Cyber Monday sales, compared to around £5.6 Bn in 2019. However, with restrictions in place due to the COVID-19 pandemic there are many ways that 2020 will look very different to both retailers and consumers. Retailers are trying to manage the shift from shopping in-store to online that has increased during the pandemic. By flattening the curve of the peak of online orders on Black Friday and at the beginning of December for Christmas, retailers are trying to encourage consumers start buying earlier and throughout this period.

corona vaccine 1

In the World, World economy 27th November 2020

Pharmaceutical Sector: Covid-19 Vaccine Breakthroughs Promise Politically Sensitive Windfall Profits

The surprising speed with which two small biotech firms have developed vaccines for Covid-19 puts pressure on regulators to make sure they are safe and on large pharmaceutical companies to produce them at scale and “acceptable” profit margins. “Who would want to be in the shoes of the Federal Drug Administration or the European Medicines Authority today given that the health and economic wellbeing of the planet is riding on whether it is safe to approve the BioNTech and Moderna vaccines,” says Olaf Tölke, head of corporates ratings at Scope.

RCEP summit

In the World, World economy, World politics 25th November 2020

China | What is the implication of RCEP to Chinese and regional economy?

Jinyue Dong, BBVA Research ! On November 15th, Asia Pacific nations including China, Japan, South Korea, Australia and New Zealand plus 10 countries of ASEAN signed the world’s largest regional free-trade agreement which is the so-called Regional Comprehensive Economic Partnership or RCEP, with the member countries encompassing 2.2 billion people that is nearly a third of the world’s population and USD 26.2 trillion GDP as around 1/3 of the world GDP as well as 1/3 of world’s total trade volume. Top officials from 15 nations inked the RCEP nearly a decade in the making on the final day of the 37th ASEAN Summit hosted virtually by Vietnam this year. The completion of negotiations is a strong message affirming China, Eastern Asia and ASEAN’s role in supporting the multilateral trade system. In addition, the agreement will contribute to developing supply chains that have been disrupted due to the Covid-19 pandemic and the China-US decoupling, as well as supporting the regional and world economic recovery. Obviously, the signing of RCEP which has experienced eight years of negotiations among member countries has essential implications on Chinese and regional economy…

bank generico

In the World, World economy 24th November 2020

Putting “Too Big to Fail” to Rest: Evidence from Market Behavior in the COVID-19 Pandemic

Francisco Covas y Gonzalo Fernandez (Instituto Español de Analistas Financieros) | An important objective of the banking regulations introduced after the global financial crisis was to eliminate the perception that some firms were too big to fail (TBTF). The perception of being TBTF compromises public welfare for two main reasons: first, investors that perceive a firm to be TBTF do not charge appropriately for risk, creating an incentive for the firm to become riskier to take advantage of the subsidy. Second, firms not currently perceived as TBTF have an incentive to become larger and more systemic so that they become TBTF and get the funding subsidy. The dynamics fostered by both reasons also increase the likelihood that the government will, in fact, have to bail out a firm, making the perception of TBTF potentially self-fulfilling.

THE INFLATONARY SUPPLY OF UNBACKED US DOLLARS AND THE PRICE OF GOLD

In the World, World economy 21st November 2020

Why Does The US Benefit From A Dollar That Isn’t Tied To The Value Of A Glittery Hunk Of Metal?

Michael Klein via The Conversation | Going back to a gold standard would create new problems. For example, the price of gold moves around a lot. A year ago an ounce of gold cost $1,457. The pandemic helped drive up the price by 40% to $2,049 in August. As of Nov. 18, it was about $1,885. Clearly, it would be destabilizing if the dollar were pegged to gold when its prices swings wildly. Exchange rates between major currencies are typically much more stable. 

10.dividends schroders

World economy 18th November 2020

An Overall Decrease In Dividends Per Share Of Between 16% And 36% Is Expected In 2020

Sean MarKowicz (Schroders) | The economic fallout of Covid-19 has wreaked havoc for income-seeking investors. Across the globe, interest rates have tumbled to record lows and equity dividends have been drastically cut.For example, this year dividends per share are expected to fall by 16% to 36% across the globe compared with 2019, with the UK and emerging markets (EM) among the worst affected regions. This has left investors nursing losses from normally dependable sources of income. 

CUS China trade conflict

In the World, World economy 18th November 2020

China Will Consolidate Economic And Political Power

Intermoney | The data supports the fact that China is the star pupil in the world economy and fits in with the possibility it will have growth of 2% in 2020 and close to 8% in 2021.These figures are synonymous with an upward economic influence which the Chinese will use to achieve greater global scale. Xi Jinping is committed to this strategy by offering the world, or rather countries that opt for a “constructive” relationship with China, the Asian giant’s ability to import $22 Tr in goods over the next 10 years.

RCEP summit

In the World, World economy 16th November 2020

The World’s Largest Free Trade Agreement, A Gift To China

The free trade agreement signed this weekend by 15 Asia-Pacific nations, led by China and Japan, will apply to a total population of 2.2 billion and a total GDP of 26.2 trillion, about a third of the world economy. It will also mean a 65% tariff reduction. Definetely, the RCEP (Regional Comprehensive Economic Partnership) further strengthens the growing political and economic influence of China in the region.