Rather than undermine his campaign, Bernie Sanders has made a virtue of the label ‘socialist’ and is riding a wave of opposition to economic inequality that began with the Occupy Wall Street movement.
Europe’s refugee crisis neither began nor ended when the body of a Kurdish boy was found washed up on a Turkish beach in September.
In all, he was just one of 3,770 people who lost their lives in 2015 as over a million people crossed into Europe fleeing wars in Syria, Afghanistan and elsewhere. Some are forecasting that many millions more will try their luck in 2016 and beyond, as the conflicts prompting this exodus offer no end in sight.
There is growing international interest in the potential of the cultural and creative industries to drive sustainable development and create inclusive job opportunities. An indication of this is a recent set of UNESCO guidelines on how to measure and compile statistics about the economic contribution of the cultural industries.
However, should this be the only reason for funding arts and culture?
One of the remarkable outcomes of the climate change negotiations in Paris is an initiative launched by 28 billionaires on the sidelines of COP21 to push for an increase in funding for clean energy technologies.
The World Economic Forum is underway in Davos. The global capital markets are off to one of their worst years ever. The threat of terrorism hangs over us like the Sword of Damocles while GDP growth, except in a few countries, is not keeping pace with population growth.
The market meltdown is extending into the third consecutive week. Once again, the attempt to stabilize has failed, punishing the bottom pickers.
There are three important economic events tomorrow. The UK will release its December employment report and November weekly earnings data. The US reports December CPI. The Bank of Canada meets, and is widely expected to be the first central bank from a high-income country to cut rates this year.
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Sterling has lost 5.6% against the dollar since December 28. The key factor is that the economy is slowing, which pushes further out in time a Bank of England rate hike. Anxiety over the EU referendum has not helped matters.
Brazilian central bank President Tombini said it would take into account the IMF’s revised forecasts for a deeper recession when it meets this week to decide on policy. Sorry, but we don’t buy it. IMF forecasts should not affect a central bank. Yes, the IMF has great economists and often has excellent advice for its member countries. However, no policymaker worth their salt should base their decisions on updated IMF forecasts. We would add that the central bank usually refrains from making comments about monetary policy on the eve of policy meetings.
The China-sponsored Asian Infrastructure Investment Bank formally launched over the weekend. Many observers have seen it as a rival to the World Bank. Others saw in another vehicle used to facilitate the internationalization of the Chinese yuan.
We have consistently argued that these ideas are a serious exaggeration. News that AIIB will lend only US dollars supports our claim. It seemed obvious that most members would fund their quota in dollars. It also seemed obvious that most borrowers would have little use for yuan.
The relentless pounding that investors suffered in the first two weeks of the year has subsided. It is too early to have much confidence that a turn is at hand. By various measures, the sell-off had stretched the technical condition. In any event, the stability of the yuan, gains in the Chinese stocks, and a bounce in oil prices appears to be giving the bears a day off.
