Financial Times (February 7)
“Risk assets started this year on a tear. Before the coronavirus outbreak unsettled investors, global equity prices had risen by more than 10 per cent in three months while credit spreads were near record lows.” Attributing this to “to the Fed’s actions is alluring,” but probably incorrect and “it could leave investors wrongfooted again when the central bank pares back its interventions later in this year.”
Wall Street Journal (November 1)
In the U.S., “GDP growth accelerated to 3% for a time along with investment, but then came Mr. Trump’s trade interventions. More than the damage from tariffs, business confidence fell amid the uncertainty of what Mr. Trump might do next. This has led to slower growth that is reflected in roughly 2% GDP growth in the last two quarters…. The strong evidence is that trade policy is the main growth culprit.”
Tags: Business confidence, Culprit, Damage, GDP, Growth, Interventions, Investment, Tariffs, Trade, Trump, U.S., Uncertainty
Bloomberg (February 23)
“Beijing’s interventions in the economy don’t always merit applause, but the government’s unprecedented seizure of Anbang Insurance Group Co. deserves a round. Anbang was a toxic threat to China’s financial system.” With total assets estimated to be “a staggering 3.4 percent of China’s GDP,” Anbang had the potential to deliver a shock “comparable to Lehman Brothers Holdings Inc. or American International Group Inc. in the U.S.” Chinese authorities have “nipped a potential disaster in the bud.”
Tags: AIG, Anbang, Assets, Beijing, China, Economy, Financial system, Interventions, Lehman Brothers, Threat, Toxic
