Seeking Alpha (April 6)
Recovery is not just a matter of overcoming the virus. In fact, the world faces an overhanging economic challenge. “We’re likely in the later stages of a global debt supercycle. The sheer amount of debt in the world makes temporary income disruptions a lot more financially impactful than they would be in a system with less leverage. As of 2019, global debt surpassed $250 trillion, which is more than 250% of the world’s GDP.”
Tags: Disruptions, Economic challenge, Global debt, Income, Leverage, Recovery, Supercycle, Virus
Reuters (October 18)
“The prospect of Aramco selling a piece of itself has had Wall Street on tenterhooks since Crown Prince Mohammed bin Salman first flagged it three years ago.” But it looks like the IPO will again be delayed, possibly until next year, to “bolster investor confidence” by reassuring them of the company’s recovery from recent attacks. The sought-after $2 trillion valuation remains in question as “countries have been accelerating efforts to shift away from fossil fuels to curb global warming.”
Tags: Aramco, Confidence, Fossil fuels, Investors, IPO, MBS, Recovery, Valuation, Wall Street
New York Times (November 9)
Brazil “had been on an upward trajectory, that seemed to have shaken off the legacy of instability.” Instead, it “suffered a terrible recession and is experiencing a very slow recovery.” The nation “appears to have been hit by a perfect storm of bad luck and bad policy: The global environment deteriorated sharply…. Domestic private spending also plunged… Policy, instead of fighting the slump, exacerbated it.”
Tags: Bad luck, Bad policy, Brazil, Instability, Perfect storm, Recession, Recovery, Spending
Barrons (December 30)
“Largely absent during the economy’s eight-year recovery from the financial crisis, inflation is on track to pick up in 2018—and it might just catch investors off-guard.” Even a return to modest inflation, e.g. 2.5%, would be a jolt that “could reshuffle the market.”
Time (November 22)
“The defection, subsequent surgeries and slow recovery of the soldier have riveted South Korea, but it will be a huge embarrassment for the North, which claims all defections are the result of rival Seoul kidnapping or enticing North Koreans to defect. Pyongyang has said nothing about the defection so far.”
Tags: Defection, Defections, Embarrassment, Kidnapping, North Korea, Recovery, Soldier, South Korea, Surgeries
Reuters (August 22)
Deflation “has hobbled Japan’s economy for nearly two decades, bedevilling policymakers despite drastic measures aimed at engineering a sustainable recovery.” For the sixth time, the Bank of Japan (BoJ) has delayed its 2% inflation target. This time until March 2020. Still, two-thirds of respondents in an August 1-16 Reuters Corporate Survey “saw the inflation goal as unrealistic,” with many of their responses further illustrating the complexities involved in overcoming deflation.
Tags: BOJ, Complexities, Deflation, Delay, Economy, Hobbled, Inflation, Japan, Policymakers, Recovery, Respondents, Survey, Unrealistic
Fund Strategy (June 1)
“European sceptics are being forced to acknowledge the recovery in a region that they have failed to understand politically, as the eurozone enjoys positive PMIs and employment figures while rejecting populist politics…. April saw the fifth largest allocation shift from US to European equities since the start of the eurozone in 1999.”
Tags: Allocation, Employment, Equities, Europe, eurozone, PMIs, Populist, Positive, Recovery, Sceptics, US
Reuters (April 27)
For “the first time since March 2008 the BOJ used the word ‘expansion’ to describe the state of the economy, signaling its conviction that the recovery was gaining momentum.” Still, some “analysts doubt inflation will accelerate as quickly as the BOJ projects, with slow wage growth keeping households from boosting spending.”
Tags: Analysts, BOJ, Economy, Expansion, Household spending, Inflation, Momentum, Recovery, Wage growth
Bloomberg (April 4)
“Now could be the time for foreign investors to return to Japanese equities, according to Goldman Sachs. Corporate governance reforms, a recovery in domestic demand and the strong performance of local stocks in U.S. dollar terms are all potential catalysts that may lure foreigners back.”
Tags: Catalysts, Demand, Equities, Foreign investors, Goldman Sachs, Governance, Japan, Performance, Recovery
Bloomberg (January 5)
“From goods leaving the factory floor in China’s industrial towns to gasoline at the pump in Europe and America, prices that stayed low for years are finally going up.” The reflation narrative leaves most policymakers hopeful and a few giddy, but doubts linger about the durability of the recovery.
Tags: Doubts, Durability, Europe, Factories, Gasoline, Policymakers, Recovery, Reflation, U.S.
