World

China’s Central Bank Deviates From Course

The People’s Bank of China, the central bank of China, had been tracking the United States’ Federal Reserve when it came to rate adjustments. When the Fed hiked rates, the PBOC hiked rates. But the PBOC didn’t hike rates two weeks ago when the Fed made its latest 0.25% bump to the Fed Funds rate. Why did they deviate from ...

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Newton’s Third Law at Work in the Trade Dispute

When Harley Davidson (NYSE: HOG) announced that they were moving some production overseas due to the proposed tariffs from the European Union, President Trump tweeted that he was surprised by the move. He also criticized the company and went so far as to say that it would be “the beginning of the end” for the company. It really shouldn’t come ...

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China Attempts to Stimulate Economy through Central Bank

China is taking a proactive position by utilizing monetary policy to steer its economy in uncertain climates for growth and trade. The People’s Bank of China (PBOC) Governor Yi Gang is allowing China’s central bank to reduce the percentage of funds banks must keep on reserve with it, in order to free up money for lending. The cut in reserve ...

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At Least One European Group Agrees With Trump Trade Ideas

Since President Trump launched his campaign to level the playing field in international trade, there has been a tit for tat between world leaders and the key players in the trade war. The U.S. President hasn’t found much support from foreign leaders—political or business. But he has had one prominent European group announce that they agree with him. German automakers ...

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Trump Trade Policies Creating Stronger Alliances Overseas and Weakening Some Domestically

President Trump has continued his goal of reshaping international trade agreements and he has stepped up his proposed tariffs in order to get cooperation from other countries. The most recent targets have been some of America’s biggest allies—Canada, Mexico and the European Union. The Trump plan does seem to be creating some cooperation abroad, but not cooperation with the U.S., ...

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Italy to be Defined by Elections and Market Volatility

Fear ruled the day Monday on our Memorial Day holiday, and when fear is present, the financial markets are upset. It was Italy this time. Political unrest and the discussion of leaving the European Union are the main cause of this defacto move on the euro. In a nutshell, in Italy and many European countries, there are groups that just ...

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Trump Administration Continues to Hammer China and Others

The Trump administration continues to hammer China and other countries with tariffs or at least the threat of tariffs. At this point there are three fronts where the President has focused his efforts to change trade: NAFTA, China and Steel. The newest tariffs were announced on Tuesday and they were aimed at China. Specifically on Chinese technology and they could ...

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Have you met the new Amazon of Africa?

Perhaps many Americans, including myself, have somehow let this $1 billion “first unicorn” in Africa to slip under our radar. The likes of Alibaba and others receive most of the headlines, but Jumia has become Nigeria’s largest online retailer. That is significant for a variety of reasons. To start, Nigeria has Africa’s largest economy, weighing in at $500 billion, of ...

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Macroeconomics is not a Strength of Turkey’s Erdogan

Feathers were ruffled this week as Turkish President Recep Tayyip Erdogan vowed to take greater control of monetary policy if he wins elections next month. There are two main issues that confront Turkey; money and power. Turkey is a parliamentary republic and the presidency largely ceremonial, but Erdogan won a referendum to increase his powers and abolish the post of ...

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China, Technology and the Stock Market

It was once said by a writer that socialism cannot produce innovation. Well, maybe I was wrong. In the truest sense of a Marxist economy, which I was referring too, is planned by a central government, with product pricing and means of distribution coordinated as well. However, in modern communist China, a hybrid economy has surfaced that to some degree ...

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