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Investment Week (April 27)

2018/ 04/ 30 by jd in Global News

The European Union’s Packaged Retail and Insurance-based Investment Products (PRIIPS) regulation “is aimed at helping retail investors better understand and compare the key features, risks, rewards and costs of different products through a short Key Information Document (KID).” However, Andrew Bailey, the chief executive of the Financial Conduct Authority (FCA) “has expressed he is ‘concerned’ about the new PRIIPS legislation, highlighting literature requirements ‘are not providing useful context’ while there is evidence it is causing US funds to withdraw from Europe.”

 

Newsweek (March 12)

2018/ 03/ 14 by jd in Global News

By playing “his America First card,” President Trump thinks he’s getting ahead, particularly in the Rust Belt. He believes adopting tariffs will help fulfill “his promise to America’s industrial heartland to bring back jobs in its traditional industries. The problem is that those in the industrial heartland don’t seem to think it’s the right thing to do.” In fact, many “who work in manufacturing, remain convinced that tariffs will increase costs and lead to job losses. Far from saving the industrial sector, they say, Trump is showing economic illiteracy that will only add to the cost of significant consumer goods.”

 

 

Wall Street Journal (April 25)

2017/ 04/ 26 by jd in Global News

Will protectionism be as welcome once the costs are realized? The Journal reports “Commerce Secretary Wilbur Ross announced Monday that the Trump Administration will raise the cost of new single family homes in the U.S. as part of its promise to ‘make America great again.’” The Journal adds, “Mr. Ross didn’t put it quite that way.” Ultimately, however, the 20% tariff on lumber from Canada Mr. Ross did announce “will add an additional $1 billion in new costs for U.S. construction.”

 

Institutional Investor (April 6)

2017/ 04/ 07 by jd in Global News

“PNC Capital Advisors is putting its large-cap mutual funds under a factor-based computer model.” Now that quant funds tend to outperform human stock pickers, at least in the large-cap space, the move seeks to reduce costs, improve performance and attract more investors. “Quantitative factor-based models” appear to “reduce human being’s tendency to make behavioral mistakes. Portfolio managers are prone to confirmation bias as human beings are rarely swayed by new information that goes against long-held beliefs.”

 

New York Times (January 9)

2017/ 01/ 11 by jd in Global News

India’s “man-made currency crisis” has had real costs and limited benefit. Two months after the surprise move to invalidate over 80% of existing currency, “the manufacturing sector is contracting; real estate and car sales are down; and farm workers, shopkeepers and other Indians report that a shortage of cash has made life increasingly difficult.”

 

Wall Street Journal (January 7)

2017/ 01/ 09 by jd in Global News

“Does Donald Trump understand business?” He might know real estate and branding, “but the President-elect’s Twitter assaults on auto companies make us wonder if he understands cross-border supply chains, relative business costs, regulatory mandates, or anything else about building and selling modern cars and trucks.”

 

Institutional Investor (November 8)

2016/ 11/ 10 by jd in Global News

Are we approaching “the end of research as we know it?” The portion of fees that goes to research (equity or bonds) is a mystery, but the veil will soon be lifted. On January 3, 2018, the Markets in Financial Instruments Directive II will require “that asset managers break out the costs of research from their own management fees and pay for them separately.” The result will probably be “that less research is spewed.” This could bring “potentially wrenching consequences for the research industry and its core users among active asset managers.”

 

Bloomberg (June 6)

2016/ 06/ 08 by jd in Global News

Guandong province, “China’s factory to the world,” is now caught in “a race to survive” as rising costs shift production to cheaper countries. Automation is also taking a toll. “With the new robot-staffed factories, and startups that employ hundreds rather than thousands, many of the millions who came to make Guangdong an industrial superpower may have little choice but to return home.”

 

The Economist (January 23)

2016/ 01/ 25 by jd in Global News

Oil price slumps usually do “the world a power of good. The rule of thumb is that a 10% fall in oil prices boosts growth by 0.1-0.5 percentage points.” This time, however, the abrupt 75% drop in the price of oil is testing the old paradigm. “Producers are suffering grievously. The effects are spilling into financial markets, and could yet depress consumer confidence. Perhaps the benefits of such ultra-cheap oil still outweigh the costs, but markets have fallen so far so fast that even this is no longer clear.”

 

LA Times (November 8)

2015/ 11/ 09 by jd in Global News

“So are we better off with or without the TPP? If Congress ratifies it, that won’t turbocharge the U.S. economy. If Congress blocks the deal, that won’t stop globalization. And like any trade agreement, it creates winners and losers.” The strongest argument for the agreement may be its geopolitical role, but the costs to many Americans have become “clearer than their benefits…. The president still has a lot of persuading to do.”

 

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