April 23, 2018

janusobserver12

8 years ago

If you were only to read one thing…

FT – Spanish now richer than Italians, IMF data show – Valentina Romei 4/19

“Spaniards have become richer than Italians — a heartening indication of Spain’s economic revival but a worrying sign for Italy, the eurozone’s third-largest economy, which is stuck in political gridlock.”
“Spain’s per capita gross domestic product exceeded that of Italy in 2017, according to IMF data published this week that compare countries on a so-called ‘purchasing power parity’ basis. The IMF also forecast that Spain would become 7% richer than Italy over the next five years. A decade ago Italy was 10% richer on the same basis.”
“By 2023 some former Soviet bloc countries, including Slovakia and the Czech Republic, are also expected to become richer than Italy on a per capita basis, the IMF forecasts show.”
“Italy’s stagnation is one of the main causes of the country’s increasingly bitter political divisions, with the electorate losing faith in the ability of its traditional parties to create jobs and restore growth. Anti-establishment and protest parties emerged as the big winners of Italy’s inconclusive general election last month, where voters deserted more moderate center-left and center-right forces.”
“Italy’s underperformance — and in particular any threat to its ability to service its debt, the largest in the eurozone after Greece’s relative to the size of the economy — is also seen as one of the biggest risks for the single-currency area.”
“The fact that Spain has overtaken Italy owes more to Italy’s problems than Spain’s economic progress, which has only recently gathered pace.”
“At the end of the 1990s, Italy — which now has almost 15m more people than Spain — had an economy twice as large as that of Spain. It is now only 50% larger and the difference is expected to shrink even further in the next five years.”
“Back in 1997, Italy was the 18th richest economy on a per capita basis among the countries for which the IMF has a complete data set. After 10 years, its ranking dropped 10 positions — and it has now slipped five more positions in the decade to 2017.”
“By 2023 Italy is expected to be only the 37th richest country on a per capita basis.”

Perspective

FT – Young buyers are being priced out of global city property – George Hammond 4/18

Worthy Insights / Opinion Pieces / Advice

Bloomberg View – Mexico Didn’t Hit the Jackpot With Nafta – Justin Fox 4/18

FT – The quiet revolution: China’s millennial backlash – Yuan Yang 4/17

WSJ – Chines Banks Find Another Funding Wheeze – Andrew Peaple 4/20

“Pressure from regulators means it’s been getting harder for the country’s banks to get enough money.”

WP – Trump lied to me about his wealth to get onto the Forbes 400. Here are the tapes. – Jonathan Greenberg 4/20

WP – The staggering environmental footprint of all the food that we just throw in the trash – Chris Mooney 4/18

Markets / Economy

WSJ – Daily Shot: Morgan Stanley Research – Country Inflation Targets and Actuals 4/20

WSJ – Daily Shot: @Not_Jim_Cramer – Major Central Bank Balance Sheets 4/20

WSJ – Daily Shot: IMF – Global Debt to GDP 4/20

Real Estate

John Burns RE Consulting – Challenges Mount for First-Time Buyers – Devyn Bachman 4/20

WSJ – Rising Sea Levels Reshape Miami’s Housing Market – Laura Kusisto and Arian Campo-Flores 4/20

Energy

FT – Major dilemma: oil companies hedge bets on low-carbon future – Andrew Ward and Leslie Hook 4/17

For the world to attain lower carbon dioxide emissions, the oil majors will need to be leaders in this initiative. They’ve taken on the charge to some degree committing larger sums to renewable energy sources; however, it’s hard when they’re so good at making money with carbon dioxide emitting sources.

Finance

FT – Sovereign wealth fund assets ‘could reach $15tn in two years’ – Chris Flood 4/20

“Assets managed by SWFs globally reached $7.45tn spread across 78 funds as at March 2018, an increase of $866bn, or 13%, over the past 12 months, according to data provider Preqin.”
“A recovery in oil prices and strong gains for equity markets drove the increase in assets, which will come as welcome news to investment managers as SWFs are among their most prestigious clients. SWFs pulled about $85bn from asset managers over the 24 months ending on December 16 as low oil prices forced governments in the Middle East to raid these rainy-day funds to prop up public spending.”