Boston Globe (September 8)
“President Trump’s trade war with China isn’t just about how much the next pair of running shoes will cost American consumers…. Its impact is spreading like a virus to all segments of the US economy, affecting the manufacturing supply chain, with the potential to whack consumer confidence.”
Tags: China, Consumers, Economy, Manufacturing, Supply chain, Trade war, Trump, U.S., Virus
The Economist (September 7)
Argentina’s reimposition of currency controls “confirms the horrible reality that Argentina has once again become a financial outcast.” Most are quick to blame the current president Mauricio Macri. “In fact much of the blame for Mr Macri’s failure lies with his populist predecessor, Cristina Fernández de Kirchner, who …. left behind a gaping budget deficit, artificially low utility prices, statistics that were brazenly manipulated and ruinously high public spending.”
Tags: Argentina, Blame, Budget deficit, Currency controls, Fernández, Financial outcast, Macri, Manipulated, Populist, Reimposition, Statistics, Utility prices
LA Times (September 6)
Carrie Lam’s tone-deaf withdrawal of the extradition bill may mark “the beginning, rather than the end, of more turbulence in Hong Kong.” It further fueled the groundswell of support. “This movement is the endgame for many in Hong Kong. People would rather sacrifice their own future than submit to authoritarian rule…. Beijing and the government must come to terms with the inconvenient truth that autocracy and repression have radicalized a single-issue movement into a people’s uprising for freedom and democracy.”
Tags: Authoritarian rule, Autocracy, Beijing, Endgame, Extradition bill, Freedom, Government, Hong Kong, Lam, Repression, Sacrifice, Submit, Tone-deaf, Turbulence
Wall Street Journal (September 5)
“A decade after fueling a crisis that nearly brought down the global financial system, America’s banks are ruling it. They earned 62% of global investment-banking fees last year, up from 53% in 2011.” In 2018, “U.S. banks took home $7 of every $10 in merger fees, $6 of every $10 in stock commissions, and $6 of every $10 paid to hold and move corporate cash.”
Tags: Banks, Crisis, Financial system, Investment-banking fees, Merger fees, Stock commissions, U.S.
Reuters (September 5)
“The most likely outcome is now that GDP growth will come in below 2.5%, perhaps significantly lower, the worst since the recession of 2008/09. By implication, oil consumption growth is likely to slip below 1% and 1 million bpd, in line with BP’s latest forecast,” but well short of the last two decade’s 1.5% average annual growth rate. “Until the global economy recovers momentum, oil consumption growth is likely to remain well below trend, keeping prices under pressure.”
Tags: BP, Economy, Forecast, GDP, Growth, Implication, Momentum, Oil consumption, Outcome, Recession
Financial Times (September 4)
“The US manufacturing sector has contracted for the first time in three years as the US-China trade war weighted on the industrial economy and added to fears over slowing domestic growth.” While one quarters manufacturing results do not necessarily lead to a US recession, “the details of yesterday’s ISM report were ugly, with new orders, production and employment sub-indices all contracting.”
Tags: China, Contracted, Fears, Growth, Industrial economy, ISM, Manufacturing, Orders, Recession, Slowing, Trade war, US
Washington Post (September 3)
“Prime Minister Boris Johnson, under public assault for his scheme to suspend Parliament to push through a no-deal Brexit, has now lost his majority.” This is typical of the “right-wing populist canard,” which works best in the minority. “Being snake oil salesmen and anti-government nihilists,” they “don’t know how to fix much of anything, and after all the huffing and puffing, the public gets the idea the populist cult leader is an incompetent charlatan.” While in this case it’s Johnson, Trump’s turn will come. “The lessons here for the United States are not hard to discern.”
Tags: Brexit, Charlatan, Cult leader, Huffing, Incompetent, Johnson, Majority, No-deal, Parliament, Populist, Public assault, Snake oil, Trump, U.S.
South China Morning Post (September 2)
“Hong Kong will have to endure more of the protest-ridden heat as the unrest continues beyond summer. And it’s going to heat up indeed. So the question remains… how long before Beijing runs out of patience?”
Wall Street Journal (August 31)
Another recession “could be devastating for people who have only just recovered.” The record long U.S. expansion “has showered” the top 1% of households with “staggering new wealth,” but bypassed others. “The bottom half of all U.S. households, as measured by wealth, have only recently regained the wealth lost in the 2007-2009 recession and still have 32% less wealth, adjusted for inflation, than in 2003…. If another recession comes, it could be devastating.”
The Economist (August 31)
“The sense of inevitability about no-deal, cultivated by the hardliners advising Mr Johnson, is bogus. The EU is against such an outcome; most Britons oppose it; Parliament has already voted against the idea. Those MPs determined to stop no-deal have been divided and unfocused. When they return to work next week after their uneasy summer recess, they will have a fleeting chance to avert this unwanted national calamity. Mr Johnson’s actions this week have made clear why they must seize it.”
Tags: Bogus, Calamity, EU, Hardliners, Inevitability, Johnson, MPs, No-deal, Parliament, UK
