Category: Economics

Bilateral Investment Treaties Causing Headaches


Bilateral investment treaties have been a source of political controversy in recent years. This is clear from the alarming increase in the number of disputes between investors and governments.

The treaties create an unequal distribution of rights and obligations between developed countries, which are the source of most foreign direct investment, and developing countries, which are mainly recipients. They lead to the increased risk of litigation and have a negative impact on the net benefit of investment to recipient countries.

Government Handouts to Harvard Alumni Deprive Poorer Students


Tax breaks for elite colleges cost the taxpayer billions, which would be better spent on making public colleges free.

The bestselling Canadian author Malcolm Gladwell made headlines recently with a series of Tweets about national Government subsidies of private universities in the US, including Harvard, Princeton and Yale. His objective was to expose the imbalance between private and state college subsidies.

U.S. and China Close in on a Bilateral Investment Treaty


It may have taken 24 rounds of negotiations, but Chinese officials announced on Wednesday that a US-China bilateral investment treaty (BIT) is close to being signed. According to the Chinese Minister of Commerce, Chen Deming, many of the key stumbling blocks that have held up the deal may have been resolved. Chen’s statements came in an interview with China’s state-run Xinhua News Agency.

Dovish or Maybe Just Less Hawkish


A few short hours stand in the way of the long holiday weekend for many.  The capital markets are retracing the recent moves.  This means equities and commodities are lower.  It means bonds are firmer and the dollar stronger.

The markets response to the ECB and FOMC recent meetings was to extend trend moves.  However, this entire week has been the counter.  The foreign exchange market illustrates this point. 

Is the ECB Buying Assets or Time?


The euro rallied shortly after the ECB announced numerous monetary measures that in their totality were more than expected.  Many saw this as proof that monetary policy had lost its effectiveness, and central banks have lost credibility.  

Fed Officials Give the Dollar a Boost


The US dollar is firm as the losses suffered in the wake of the FOMC meeting are retraced.  Over the last few days, no less than five Federal Reserve officials have come out endorsing a resumption of the normalization cycle.  In addition, no fewer than three regional Fed manufacturing surveys have shown greater strength than expected, with gains in forward-looking new orders. 

Hawley-Smoot-Trump?


Republican presidential hopeful Donald Trump’s protectionist prescriptions have led to renewed speculation about whether trade wars are on the horizon.

In other words, if, under a Trump presidency, the United States were to raise its tariffs against some of its biggest trading partners – China, Japan, and Mexico – would those countries retaliate in kind? In addition, what would this mean for the global economy?

Nepal, China Sign Transit Treaty Establishing a Rail Link


On Monday, China agreed to Nepal’s proposal to build a strategic rail link between the two nations through Tibet. The new line will reduce Nepal’s dependence on India for shipping. The agreement was proposed and brokered by Nepal’s Prime Minister, K P Oli.

Markets Stabilize after the Brussels Attacks


A series of attacks at Brussels airport and metro casts a pall over the market.  The attacks come as Europe prepares what for many will be a long holiday weekend.  Gold, the dollar and yen seem to have been the beneficiaries.   Bonds are generally firmer and equities lower.  However, in late morning activity in London, the markets began stabilizing.

If You’re Happy and You Know It, Ditch Your GDP


Denmark reclaimed its place as the happiest country in the world, according to the latest annual World Happiness Report. Switzerland, Iceland, Norway and Finland followed in quick succession at the top, while Benin, Afghanistan, Togo, Syria and Burundi languished at the bottom.