financializer news A weblog highlighting financial topics making news in the international media.

china: Experts noted on Sunday that the Chinese economy remains the single largest contributor to world GDP growth and that the country will retain that role in the decade to come, according to Global Times China. Despite some differences in economists' calculations, it is agreed that about one third of world growth is contributed to by China. Photo CFP China posted a 6.7 percent annual GDP growth rate in 2016, the National Bureau of Statistics said on Friday. China remains the single largest contributor to world economy and global economy will suffer greatly should Chinese economy encounter major hurdles, Liao Qun, chief economist with China CITIC Bank in Hong Kong, told the Global Times Sunday. Based on the 3.1 percent growth rate expected by the IMF, this would mean that China would contribute to nearly 39 percent of total world growth. In an August 2016 Project Syndicate article, Stephen S Roach, former chairman of Morgan Stanley Asia and the firm's chief economist suggested that if China achieved a GDP growth rate of 6.7 percent in 2016 that would account for 1.2 percentage points of world GDP growth in the year. (news.financializer.com). As reported in the news.

chinese companies: The deal comes as parent company Viacom focuses on a turnaround plan under new Chief Executive Officer Bob Bakish, according to Global Times China. It also follows a series of tie-ups between China and US producers, with Chinese investors increasingly keen to lend their financial muscle to boost their stake in Hollywood. As part of the agreement, Shanghai Film Group and Huahua Media will finance a combined 25 percent of all of Paramount's films for the next three years, with the option to extend to a fourth year, a source familiar with the situation said. US studios such as Warner Bros, Walt Disney Co, Dreamworks, Lionsgate and STX Entertainment have all made tie-ups with Chinese companies to fund productions or help boost their presence in China's fast-growing film market. Shanghai Film Group and Huahua Media said in a statement with Paramount that they aim to deepen their cooperation on film projects through the deal. Last year, Chinese real estate conglomerate Dalian Wanda Group spent 3.5 billion to buy a controlling stake in US film studio Legendary Entertainment, while Paramount worked with Alibaba Pictures Group in 2015 to promote Mission Impossible -Rogue Nation in China. (news.financializer.com). As reported in the news.

european union: That's one conclusion that could be drawn after a discussion Friday on the last day of the World Economic Forum, attended by policymakers including International Monetary Fund Managing Director Christine Lagarde, Bank of Japan Gov, according to The Japan Times. Haruhiko Kuroda and German Finance Minister Wolfgang Schaeuble. It might even be boosting it at least for now. Shocks such as the U.K.'s decision to leave the European Union or uncertainty after Donald Trump's win may not be automatic downers for growth as newly empowered voters spend more, and promised infrastructure spending and cuts in regulation spur business confidence. Trump voters and Brexit backers have changed policy, said Black Rock Chief Executive Officer Larry Fink. With the economic cycle already turning, developed markets may even be able to escape the low-growth, low inflation trap that's gripped them since the financial crisis. (news.financializer.com). As reported in the news.

labor markets: But reducing inequality requires higher levels of government spending and taxation except when government is pursuing deficit spending to stimulate a depressed economy . The Scandinavian economic model is often invoked to bridge this gap, according to Global Times China. The Danish flexicurity system, in particular, has historically delivered solid economic performance alongside low inequality. Conservatives insist that growth requires low taxes and incentives such as flexible labor markets to encourage entrepreneurship. Leading economists such as Philippe Aghion have published excellent analyses of how this model could balance growth, equality and overall satisfaction of citizens elsewhere in the world. This model has sustained an ongoing debate in Europe, one that is now relevant in the US, because Donald Trump's new administration has promised to help globalization's losers while improving innovation and growth. These economists argue that labor markets with few restrictions on hiring and firing, low taxes on entrepreneurship and generous incentives for innovation are compatible with a relatively equal income distribution, high social spending by government and equalizing social policies such as universal free education. (news.financializer.com). As reported in the news.

novartis manager: Greece's economic prosecutor Panagiotis Athanasiou intervened in mid-January and demanded a comprehensive explanation, according to Deutsche Welle. By this time the Athens public prosecutor's office had already searched the offices of the Swiss pharma concern Novartis in the Greek capital, and had asked the US justice department to assist them with their investigation. Investigations are believed to have begun two months ago, and for the time being they're still under wraps. The alleged crimes are money laundering and tax evasion. Greek observers believe that he may have been summoned to give evidence in the case. Shortly after New Year, another shocking incident was revealed A Novartis manager with many years' experience in the business' Greek market had walked out onto a high terrace of the Hilton Hotel in Athens and threatened to jump off. (news.financializer.com). As reported in the news.

percent level: By reviewing its group-wide operations, the company will try to persuade lenders it is serious about restructuring through the sale of group businesses and assets, the sources said, according to The Japan Times. Toshiba said last month it may book an asset impairment loss of several billion dollars as it will write down the value of assets in its U.S. nuclear business. The conglomerate is seeking support from financial institutions as it could incur a group net loss for the third straight year in the current fiscal year through March. But it may need to log a bigger loss of up to 700 billion 6.1 billion people familiar with the matter said Thursday. That is well below the 30 percent level seen as a healthy financial condition. The company had shareholders' equity of 363.2 billion as of the end of September, or just 7.5 percent of assets. (news.financializer.com). As reported in the news.

scenarios envisaging: What sort of event could do that Something, say, along the lines of the massive explosion on the sun akin to thousands of nuclear bombs exploding at the same time that happened on March 10, 1989, according to the U.S. National Aeronautics and Space Administration, according to The Japan Times. The explosion released a vast cloud of solar plasma that raced toward the earth at 1.6 million kilometers an hour. In four scenarios envisaging the economic impact of a solar storm, the mildest triggers a daily loss to the U.S. economy of 6.2 billion, or 15 percent of daily output; the worst case sees a cost of 41.5 billion, wiping out every dollar the world's largest economy generates each day. When it hit Canada, the electrically charged storm knocked out Quebec's power grid, leaving 6 million people without power for nine hours. Inland flooding inflicted the most damage, including Hurricane Matthew and August flooding in Louisiana each causing 10 billion of damage during a fourth consecutive year of above-average precipitation. The World Economic Forum's annual assessment of global risks, published last week, rates extreme weather events as the most likely risk to the world and the second-most impactful detonating weapons of mass destruction was perceived as the risk with the greatest consequences, though deemed unlikely to happen . Weather-related disasters cost the U.S. economy 46 billion last year, with 17 billion-dollar events making 2016 the second-most costly year since 1980, according to the National Centers for Environmental Information. (news.financializer.com). As reported in the news.

square kilometres: It is hoped it will reach 400 million by 2020 with the help of the private sector, according to Deutsche Welle. According to the World Economic Forum, agriculture is one of the biggest drivers of deforestation in Brazil. 2.3 million square kilometres of forest were cut down between 2000 and 2012. The Norwegian government will commit up to 100 million to the fund. Increasingly, agricultural production tends to favour expanding into rain forest and increasing the amount of soil available, instead of intensifying agricultural production on existing land. Forests are burned to generate new land for agriculture Crucially, the fund is expected to help rainforest countries meet their commitments under the UN's Paris Climate Agreement, the landmark deal signed in 2015 to curb global warming. Saving forests The fund will be formally set up later this year and aims to protect over five million hectares of forests and peatlands by 2020, equivalent to the size of Costa Rica. (news.financializer.com). As reported in the news.

state: Spokesperson Halifa Sallah said by Monday Barrow would begin forming a Cabinet and work with Gambia's national assembly to reverse the state of emergency Jammeh declared in his final days in power, according to Deutsche Welle. The former leader Jammeh flew into exile late Saturday in Equatorial Guinea, which is not a state party to the International Criminal Court, ending weeks of tension in the West African nation. President Barrow said on Sunday he would return to The Gambia soon. The Gambia is in financial distress' But before he fled Jammeh plundered the state's funds, Barrow alleged on Sengalese radio on Sunday. It's what we have been told, but the day we actually take office we will clarify all of it, Barrow told RFM. A senior adviser of Barrow said Jammeh stole US 11.4 million 10.6 million euros in his final weeks in power and flew luxury vehicles out by cargo plane. According to information we received, there is no money in the coffers. (news.financializer.com). As reported in the news.

european: On Tuesday, the British PM ruled out half-in, half-out solution to the Brexit and confirmed Britain would leave the European Union EU single market This position was reinforced on Friday, when Philip Hammond, British Chancellor of the Exchequer, declared during a panel-discussion in Davos that we have pitched our proposal not at membership of the market, but at a comprehensive free trade agreement between an independent United Kingdom outside the European Union, and the European Union, according to Global Times China. But he highlighted the free trade between the two sides, saying It's very much in the interests of the UK and the European Union, that we continue to have free trade between the UK and the European Union. The two speeches given by May, one on Tuesday in Westminster laid out the Britain's position on Brexit negotiations, another on Thursday at the World Economic Forum in Davos portrayed a more global Britain for the future. He noted that in such a situation, the EU was likely to remain the UK's single largest trading partner, and thus a confident, successful, stable and growing EU with a stable and successful currency in the euro would be in the UK's interests. But they also emphasized a more global outlook of the UK. Hammond talked about Britain maintaining its competitiveness through reinvention, if necessary. Both the British chancellor and the prime minister stressed their respect for their European partners, hoping for continued close relations and trade. (news.financializer.com). As reported in the news.

wall: Well, President Donald J. Trump is sure going to test that thesis, according to Market Watch. It's hard to assess Trump's inaugural address without noting its total gracelessness toward rivals, toward the 54% of Americans who voted against him, toward allies and trading partners and its doubling down on precisely the themes Wall Street ignored in the month-long, 6% stock rally DJIA, 0.48% that followed his election. And the economy keeps chugging along more or less undisturbed. Which was not, despite his claims, historic in its size or scope . And which has stalled notably since Dec. 9. Photo Getty Images Wall Street's predictions that Trump's fiscal policies will goose the economy have been based on the idea that he isn't serious about restricting trade, which will hurt exports at least as much as it curtails imports but he just made clear that he is serious about trade, as well as about curtailing U.S. growth by cracking down on immigration in yet-unspecified ways. Trump Inaugural Address 'This Moment Is Your Moment' 3 23 President Donald Trump, in his inaugural address, hit on themes from his campaign, saying his presidency represented a transfer of power back to the American people. (news.financializer.com). As reported in the news.

keangnam enterprises: The building is owned by Ban's Keangnam Enterprises, according to Deutsche Welle. His son, a real estate broker in Manhattan, allegedly help facilitate the bribe. Ban Ki-sang has been accused of being at the center of an international bribery conspiracy. 69-year-old Ban and his son, Joo Hyun Bahn, are facing allegations that they conspired to transfer bribes from South Korea via New York over the 800 million dollar sale of a residential and commercial complex in Hanoi, Vietnam. According to reports, the pair was attempting to coax an official from an unknown country in the Middle East to buy the property. Prosecutors claim Harris pocketed the bribe, spending the funds on luxury items for himself. US national Malcolm Harris is also implicated as a middleman in the payments that took place between March 2013 and May 2015. (news.financializer.com). As reported in the news.

wall street: And as a fog of uncertainty continues to envelop the market, strategists are urging investors to prepare for the unexpected, according to Market Watch. For better or worse, President Trump has become a reality, said Brian Belski, chief investment strategist at BMO Capital Markets, in a note. Much about President Donald Trump's policies remains shrouded in mystery but there is one thing that Wall Street appears to be certain of nothing will be the same. We believe there are no perfect conclusions for investors, thereby setting the stage for surprises in both directions. Say goodbye to the old U.S., said Mark Grant, chief strategist at Hilltop Securities. See President Donald Trump is set to unleash a cascade of stock-market anxiety Some were more dramatic, prophesying the end of the U.S. as we know it. (news.financializer.com). As reported in the news.

business elite: Recent electoral outcomes, including Trump's election, highlight the intensifying economic grievances of many households across the developed world, according to The Japan Times. In the 20 years before the 2008 financial crisis, unprecedented globalization raised incomes for just about everyone. These are the core elements of what we believe is the only viable economic strategy for the United States and the world. The incomes of the poorest third of humanity rose by 40-70 percent, and those of the middle third increased by 80 percent. And yet the incomes of a crucial group lower middle-income households barely rose at all. The top 1 percent did even better so much better, in fact, that the business elite is now facing a powerful backlash. (news.financializer.com). As reported in the news.

comments mark: Speaking to the Wall Street Journal on Monday, the President-elect said that US companies simply could not compete with China because the dollar was too strong, according to Global Times China. And it's killing us, Trump added. Speaking to Radio Sputnik, market analyst Robert Sinche agreed that the 'strong dollar' has outlived its usefulness. The comments mark a sharp contrast to US policy going back to the mid-1990s, when first the Treasury and then a succession of presidents from Bill Clinton to George W. Bush to Barack Obama spoke in favor of a strong dollar. Speaking to Radio Sputnik, Robert Sinche, chief global strategist at the US-based brokerage firm Amherst Pierpont Securities, laid out the origins of the 'strong dollar' policy, and explained why perhaps it really is time for the policy, whose current effectiveness remains unclear anyway, to be done away with. Trump's comments led to shocks on US and global stock markets, with the dollar's exchange rate falling sharply, then recovering slightly, against a basket of six other major currencies amid uncertainty over the new administration's policy. (news.financializer.com). As reported in the news.

time: The U.S. currency has been the most attractive currency to be in for very, very long periods of time, according to The Japan Times. I think that it's important and I think you see that now more than ever. The dollar's long-term strength over long periods of time is important, Mnuchin said in response to questions at his confirmation hearing Thursday before the Senate Finance Committee in Washington. At the same time, he said the greenback is currently very, very strong, and what you see is people from all over the world wanting to invest in the U.S. currency. That prompted speculation that his administration might reverse long-standing tradition in the U.S. to support a strong-dollar policy. Trump expressed concern about the dollar's recent appreciation in an interview with the Wall Street Journal this month, saying the currency was too strong. (news.financializer.com). As reported in the news.

currency: That was in contrast with previous US administrations in the past two decades, which typically said a strong dollar is in the country's best interests, according to Global Times China. The dollar on Tuesday dropped to its lowest level in a month following Trump's comments. In an interview with the Wall Street Journal published on Monday, Trump complained that the dollar was too strong suggesting that he favored a weaker dollar. I think when the president-elect made a comment on the US currency, it wasn't meant to be a long-term comment, Mnuchin said before the Senate Finance Committee. The currency is very, very strong and what you see is people all over the world wanting to invest in the US currency, said Mnuchin, who was a former Goldman Sachs banker, adding the long-term strength of the dollar is important . I will enforce trade policies that keep our currency strong on the world exchanges and create and protect American jobs. It was meant to be that perhaps in the short term, the strength of the currency...may have had some negative impacts on our ability in trade. (news.financializer.com). As reported in the news.

donald: Check out Donald Trump's Inauguration live coverage as the 45th President takes office That is not to say that equities won't continue to carve out fresh records, spurred by animal spirits; or that Trump's promise to make America great again won't come to fruition, leading to halcyon days for investors from the lowest sociopolitical rung to the deepest-pocketed 1%. The stock market on Friday closed firmly higher, according to Market Watch. Getting ready to leave for Washington, D.C. The journey begins and I will be working and fighting very hard to make it a great journey for.. Donald J. Trump real Donald Trump January 19, 2017 the American people. Donald Trump has been sworn in as leader of the free world and the level of consternation in the market is palpable. I have no doubt that we will, together, MAKE AMERICA GREAT AGAIN! Donald J. Trump real Donald Trump January 19, 2017 America will start wining again, winning like never before, he said as a part of his inaugural speech on Friday, emphasizing that he will promote policies that put America first. The boundless uncertainty of how a Trump presidency will influence stocks, bond markets, commodities, the flow of trade, and economies across the globe has investors tied up in knots. Mostly, the hand-wringing has centered on the unpresidented, unscripted, Twitter-happy nature of it all. (news.financializer.com). As reported in the news.

dow jones: On Thursday, the key market gauge gained 177.88 points, according to The Japan Times. The Topix index of all first-section issues was up 5.31 points, or 0.35 percent, at 1,533.46, after climbing 14.29 points the previous day. The 225-issue Nikkei average rose 65.66 points, or 0.34 percent, to close at 19,137.91. Both indexes finished higher for the third straight day. It soon popped into positive territory as the yen weakened. The Nikkei average got off to a weaker start, after the Dow Jones industrial average fell for the fifth consecutive session on the New York Stock Exchange on Thursday. (news.financializer.com). As reported in the news.

mexican exports: That was his response to the withdrawal of the company's planned investment in the country, according to Deutsche Welle. Car-building nation Signs are pointing to stormy times. Despite the state of shock, resistance is mounting against import duties for Mexican exports or even the US' withdrawal from the free trade agreement NAFTA. Many construction firms, tourism companies and municipal administrations want to show a symbol of national unity and plan to boycott automobiles made in the USA. We will no longer buy automobiles from Ford for our fleet, announced the governor of the Mexican state of Campeche, Alejandro Moreno Cardenas, in the Mexican newspaper El Universal. Fear of Trump has scared off potential investors, writes the Mexican columnist Jose Cardenas. They fear draconian customs duties if they insist on keeping part of their production sites in Mexico. Carrier, Ford, Fiat-Chrysler and General Motors are just sitting back and waiting. (news.financializer.com). As reported in the news.

p spx: The near-term question for investors is whether stocks will maintain their upside bias or succumb to a sell-the-news type correction, according to Market Watch. See Trump inauguration set to unleash cascade of stock-market anxiety The S&P SPX, 0.34% ended Thursday with a gain of 5.8% since Election Day on Nov. 8. Trump will take the oath of office on the Capitol steps at midday Friday. That's the largest election-to-inauguration rise since the index's 8.8% run following Clinton's re-election victory, according to Dow Jones data. The postelection rally has seen stocks run out ahead of earnings expectations, wrote Nicholas Colas, chief market strategist at Convergex, a New York-based global brokerage firm, in a Wednesday note. It is also the fifth-largest such rally for the index or its predecessors since Herbert Hoover's 1928 win see chart below Caption outside of wrapper for normal article images The inauguration itself might not provide a definitive answer as investors await more details of Trump's policy agenda. (news.financializer.com). As reported in the news.

russian president: Their attitude to Russia is changing positively as they see that the new US administration is seeking cooperation, according to Global Times China. Various formal and informal restrictions will be gradually lifted, Dmitriev said in an interview. A number of leading US companies plan to send their representatives to Russia, he added, noting that he had held meetings with a number of US investors at the World Economic Forum Annual Meeting in Davos which kicked of earlier in the day. International investors, including those from the United States and Canada, have confirmed their attendance at a meeting with Russian President Vladimir Putin during the 2017 St. Significant interest has been stirred by the traditional dinner with the Russian president, which is organized as part of SPIEF. The number of confirmed investor guests is already exceeding last year's figures. Petersburg International Economic Forum SPIEF Dmitriev added. (news.financializer.com). As reported in the news.

speech: This was a speech to true believers, said John Murphy, who specializes in the rhetoric of the US presidency at the University of Illinois, according to Deutsche Welle. It resembled a campaign speech more than most inaugural addresses do. Judging by the highly anticipated inaugural address he delivered, President Trump is not all that much different than presidential candidate Trump or President-elect Trump. The speech should put to end any doubts about witnessing a new version of President Trump, as he's unlikely to make any fundamental changes at this late date concurred Aaron Kall, the director of debate at the University of Michigan. Trump framed his speech explicitly around his two campaign slogans Make America Great Again and America First. Kall is also the editor of the newly-released book I Do Solemnly Swear Presidential Inaugural Addresses of the Last Forty Years . Combative speech There was a combativeness to this that will be very attractive to some people and very alarming to others said Mary Stuckey, a presidential rhetoric scholar at Georgia State University. (news.financializer.com). As reported in the news.

square kilometres: It is hoped it will reach 400 million by 2020 with the help of the private sector, according to Deutsche Welle. According to the World Economic Forum, agriculture is one of the biggest drivers of deforestation in Brazil. 2.3 million square kilometres of forest were cut down between 2000 and 2012. The Norwegian government will commit up to 100 million to the fund. Increasingly, agricultural production tends to favour expanding into rain forest and increasing the amount of soil available, instead of intensifying agricultural production on existing land. Forests are burned to generate new land for agriculture Crucially, the fund is expected to help rainforest countries meet their commitments under the UN's Paris Climate Agreement, the landmark deal signed in 2015 to curb global warming. Saving forests The fund will be formally set up later this year and aims to protect over five million hectares of forests and peatlands by 2020, equivalent to the size of Costa Rica. (news.financializer.com). As reported in the news.

workers: While he called for measures to support American workers, he offered few additional details that could provide clarity to investors about his legislative priorities, according to Market Watch. Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families, Trump said in the speech. Equities ended off their highs of the session after Trump took the oath of office to become the nation's 45th president and delivered an inaugural address that echoed the protectionist comments he had made throughout his campaign. We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs. The day's gains were broad, with only two of the S&P 500's primary 11 sectors down. Read Market Watch's recap of the inaugural ceremony The Dow Jones Industrial Average DJIA, 0.48% closed up 94.85 points, or 0.5%, to 19,827.25, while the S&P 500 index SPX, 0.34% climbed 7.62 points, or 0.3%, to 2,271.31 and the Nasdaq Composite Index COMP, 0.28% added 15.25 points, or 0.3%, to 5,555.33. (news.financializer.com). As reported in the news.

cabinet nominees: He said he had followed the advice of a lawyer who believed the disclosures were not necessary, according to The Japan Times. But Democrats seized on the issue as evidence of serious ethics challenges among Trump's Cabinet nominees. Mnuchin said the failure to disclose the assets was an oversight that he had corrected when it was brought to his attention by staffers of the Senate Finance Committee. Never before has the Senate considered such an ethically challenged slate of nominees for key Cabinet positions, Senate Democratic Leader Chuck Schumer said in a statement. Mnuchin said he had never used the Cayman Islands to avoid paying his taxes. In the hearing, Democrats on the Senate panel challenged Mnuchin's explanations, suggesting it was because he did not want to reveal his involvement in a business that could be used as an offshore tax haven. (news.financializer.com). As reported in the news.