Economics Archives - Page 72 of 183

World Bank, IMF, and Heads of State Urge Treaty on Climate Change

As talks begin this week in Paris, strong rhetoric has already erupted in favor of policies designed to combat climate change. Six heads of state and the leadership of the World Bank Group and the International Monetary Fund (IMF) led the way with calls for support from corporations and governments. These individuals want to put a price on carbon as a means of simplifying the process for investing in cleaner technologies and ensuring a greener future.

Jockeying Continues ahead of the ECB and U.S. Jobs

The US dollar is trading with a heavier bias today amid some last minute position squaring ahead of the key events of the week, which are stacked in the second half. The ECB meeting and US jobs data are the two most important events in a jam packed week for most participants.

Climate Equity should not be a Thing

For years now, the climate talks have revolved around discussions who should bear the burden of cutting emissions, particularly between developed and developing nations. Much of Paris climate summit will be focused on this notion of equity and how to ensure that each country does its their fair share in the fight against climate change.

Global Climate Change Leadership from…China?

What happens in China is central to the global effort to limit the extent of future climate change. China is already the largest emitter of greenhouse gases by far, even as it continues its process of urbanisation and economic modernisation. Under a traditional model of energy-intensive economic growth fed by fossil fuels, this would thwart the world’s chances of keeping climate change at levels considered relatively safe.

Fewer Workers and Low Unemployment

The decline in the labor force participation rate helps explain the substantial decline in the US unemployment rate over the past couple of years. That decline has helped bring the Federal Reserve to the point that a December rate hike is extremely likely barring a significant disappointment at the end of the week with the November jobs report.

WTO Negotiations Regarding Worldwide Trade Reform Package Stalled

The World Trade Organization (WTO) has negotiated for years on a package of trade reforms that aims to reduce or eliminate barriers to world trade. Unfortunately, trade talks have reached a deadlock, and trade ministers seem unlikely to find a way to break the stalemate before they meet in Nairobi next month, according to World Trade Organization Director General Roberto Azevedo.

Turkey’s Refugee Deal and the Deal in Paris Drops Treaty Status

The US dollar remains firm against most of the major currencies to start what promises to be a critical week for investors. There are two main considerations. The first is the last minute position adjustments ahead the key events that begin with the IMF’s SDR decision later today, running through the start-of the month data (especially PMIs), central bank meetings in Australia, Canada, and then the big one, the ECB. The US monthly jobs report and the OPEC meeting cap the weeks. The second consideration is month-end plays, where fund managers adjust position

Part of Abe’s Third Arrow Takes Aim at Governance

As part of Abenomics’ third arrow of structural reform, Japan recently adopted a new corporate governance code. The new code focuses on making Japanese corporations more transparent, more responsive to shareholders — including minority shareholders — and subject to more effective oversight by boards of directors, especially outside directors. It seeks to make boards of directors not only more active and independent, but more diverse.

ASEAN after the Smoke Clears

The smoke haze crisis that battered a major part of the southern ASEAN region in mid-2015 is showing signs of abating. Along with the disappearing haze, it is crucial that the resolve demonstrated by all parties — especially governments — to solve the issue doesn’t vanish as well.

Is Seven Your Lucky Number?

The week ahead is among the most important of the year. Rarely is there such a confluence of events in a short period that will have far-reaching implications for investors known ahead of time and discussed so extensively. One implications of this is the market discount of expectations.

The potential for sharp price gyrations and the dictates of money management should not distract from the big picture and the durable trends. In this context, there are two important considerations long-term investors ought to keep in mind.