Stiglitz on Trade War with China: “We have a demagogue who’s a president”  

Speaking to the South China Morning Post on the sidelines of the China Institute Executive Summit in New York, the Nobel Prize-winning economist and Columbia University professor said: “We have a demagogue who’s a president.” Trump, for political reasons, is trying to reverse a 70-year process of international agreements that have created an industrial chain “where borders […]

Iran financial crisis: rials drops -33% against the US dollar in six months

Tehran: Confused and frustrated Iranians flocked to exchange offices on Tuesday after the government fixed a new rate for the dollar, only to find there were none to buy. On Ferdowsi Street in central Tehran, home to dozens of banks and currency exchanges, many had hoped to find much cheaper dollars than the day before. […]

Global hedge fund industry outlook for 2018

The hedge fund industry had an exhilarating ride in 2017, rebounding after a rocky performance in 2015-16, according to the latest survey of the global hedge fund industry conducted by Barclays’ Capital Solutions team. Both returns and flows registered positive numbers last year, and investors appear optimistic for 2018 as well. Open accessibility panel / […]

China downgrades Treasuries. Global markets ignore US debt risks

China’s surging global influence is like the rising tide: barely noticeable but steady. However, once it reaches fundamental structures, such as US Treasuries, the lynchpin of the financial system, western policy-makers should pay attention. The western view of the rating of Treasuries has been rather benign. The Big Three rating agencies have awarded Treasuries top […]

What the World’s Central Banks Are Saying About Bitcoin

Nine years since the birth of Bitcoin, central banks around the world are increasingly recognizing the potential upsides — and downsides — of digital currencies. The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about the growth of the private cryptocurrencies that are grabbing more and […]

London House Prices Drop at the Fastest Pace Since 2009

London house prices are falling at the fastest pace since the depths of the recession almost a decade ago, with the capital’s most expensive areas seeing the biggest declines. Average prices fell to 593,396 pounds ($820,000) in January, an annual decline of 2.6 percent, according to a report published by Acadata on Monday. That’s the […]

Goldman Sachs Says Stocks May Dive -25% If 10-Year Yield Hits 4.5%

If the 10-year U.S. Treasury yield hits 4.5 percent by year-end, the economy would probably muddle through — stocks, not so much, according to Goldman Sachs Group Inc. Goldman’s base-case scenario calls for a 10-year yield of 3.25 percent by the end of 2018, though a “stress test” out to 4.5 percent indicates such a […]

Alert: a president that represents the ultimate black swan event

There have been a lot of screaming headlines in the past two weeks about how the stock and bond markets have turned volatile, unpredictable, scary, and downright bearish—that whatever big party investors have been enjoying is definitely over, and that a new, darker chapter of financial history is about to be written. That may be […]

America’s extraordinary economic gamble

VOLATILITY is back. A long spell of calm, in which America’s stockmarket rose steadily without a big sell-off, ended abruptly this week. The catalyst was a report released on February 2nd showing that wage growth in America had accelerated. The S&P 500 fell by a bit that day, and by a lot on the next […]

These 3 trends will define your future, says Jack Ma (Alibaba)

In a one-on-one interview on the second day of Davos, Alibaba founder Jack Ma gave his take on a wide range of global issues, from the backlash against globalization and the incoming Trump administration, to the prospects of a trade war between China and the US (it will never happen, he said) and the future […]