Inflation is here to stay, rather than transitory, no matter what central banks are telling us. But rising inflation could help make the global economy more efficient. Here are three potentially positive consequences of high inflation:
Continue readingTag Archives: emerging Europe
Investors should look for the gold of the future: forests
Probably not many people waking up next Sunday 21 March will be aware that it is the International Day of Forests — but they should be.
Continue readingPay emerging markets to help stop climate change
Among developed countries investors, there are various interpretations of the strength of the commitment to environmental, social and governance (ESG) factors in emerging markets, ranging from the cynical to the idealistic.
The cynical view would be that there can be no “real” ESG in emerging markets because too often they are plagued by corruption, therefore investors cannot trust what companies in these countries report.
The idealistic view, on the other hand, would see every little step towards introducing ESG as a wonderful sign that these countries are finally deciding to adopt the same values as Western democracies.
While both extremes are wrong, sadly even the moderate take misses the main difference between emerging markets and developed ones: the effect of development itself on ESG — and in particular on the “E”.
Increasingly authoritarian Romania takes over EU presidency
If Brexit does happen on March 29 this year, it will happen under the strangest possible presidency of the European Union: the Romanian presidency. While the role of president of the EU is all about openness, transparency and a love of democracy, the Romanian government seems to increase its preference for the opposites of these features.
Emmanuel Macron’s ‘posted workers’ reforms smell of populism
French President Emmanuel Macron went to Central and Eastern Europe recently to ask officials there to support his plan to change the legislation regarding posted workers, to prevent it being abused.
In essence, the posted workers’ directive allows one company in a member state of the European Union to send its workers to work on projects in another member state, but still pay them less than local workers. This is because, while the company has to abide by local minimum wage rules, things like tax or social security payments are still made in the country of origin.
Market moving info — week starting July 10, 2017
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting July 10, 2017.
Last week:
- The US economy created more jobs than expected, with 222,000 new positions in June compared with expectations of 178,000. But wage growth was tepid, at just 2.5%.
Market moving info — week starting July 3, 2017
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting July 3, 2017.
Last week:
- The savings ratio in the UK fell to a record low 1.7% in the first quarter, from 3.3% in the fourth quarter of 2016.
Market moving info — week starting June 26, 2017
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting June 26, 2017.
Last week:
- Negotiations on Britain’s withdrawal from the European Union started in Brussels amid warnings by both Chancellor of the Exchequer Philip Hammond and Bank of England Governor Mark Carney that a “soft” Brexit is needed in order to prevent a deep fall in living standards.
Market moving info — week starting June 19, 2017
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting June 19, 2017.
Last week:
- Eurozone ministers approved the release of a new tranche of aid for Greece that will help the country avoid a new payment crisis in July, when it has to pay €7.0 billion worth of debt.
Market moving info — week starting June 12, 2017
Here’s a summary of last week’s market moving news and a look ahead to the data, events and earnings reports that are likely to move the markets in the week starting June 12, 2017.
Last week:
- The UK Conservative party lost the majority it had in parliament following snap elections called by Prime Minister Theresa May in a desire to strengthen her majority ahead of Brexit negotiations. The pound fell on the result as investors weighed the consequences, while the FTSE 100, dominated by exporting companies, rose.