In Brexit, Economic Reality Competes With Nostalgia for Bygone Days

This article shows how economies like the British economy that we see as a market economy, doesn't always let the markets work on their own. The article talks about how some people are not willing to exit the fishing industry and go into others that are more profitable, simply because they don't want to. The article says that "the legacy and the romance of a declining industrial past often eclipse the interests of new and expanding businesses. Time and again, economic facts are no competition for sentiment and history". The reason why fishing in Grimsby is still happening, its simply because it has a lot of political influence and many people don't want it to go away even if the industry is not profitable. This is something similar to what happens in the US when Trump says he is going to bring the jobs back to factories and coal mines. These industries have been declining for decades and the only reason why Trump is saying it is that politically many people will support him. The same thing happens in England because they should move away from fishing into other industries, but people don't want to change and if a governor in Grimsby would support this he would not be popular and people would not like him.

https://www.nytimes.com/2018/04/23/business/grimsby-brexit.html?action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=2&pgtype=sectionfront

Asian companies see little need for insurance against cyber attack, with less than 20% insured

"Asian companies are behind US peers in insurance coverage against cyber attacks, according to FM Global. Less than 20% of Asian companies have cyber insurance, compared with 66% of US businesses, the insurer says."

I found this article very interesting as the title is what initially caught my eye. Apparently finding solutions for cyber attacks is still in a growth phase in Asia. With this being said; profitability of the cyber security industry in Asian countries must still be in a growth phase. I see high return potential in the near future with investment in cyber security in the Asian markets. I am also curious as to why this lag has occurred in the first place; are cyber attacks not as common or are they not as vicious across the world in Asia? 

http://www.scmp.com/business/companies/article/2142819/asian-companies-see-little-need-insurance-against-cyber-attack

Spain’s exporters drive robust economic recovery

This article describes the current state of the economy in Spain, which was previously struggling. Currently, the economy seems to be doing well as it has grown at above 3 per cent for the past three years, which is well above the eurozone average. As a consequence, rating agencies have upgraded Spain’s sovereign debt ratings, allowing for cheaper borrowing. Like most economies, they are still experiencing some challenges such as high unemployment, but there seems to be positive development in the Spanish economy overall. They are attributing this positive growth to an export driven economy and lower wages. The Spanish Secretary of State for budgets boasts that their economy is "becoming more German".

https://www.ft.com/content/19df28e6-43a7-11e8-93cf-67ac3a6482fd

Possible Trade War with EU

The U.S. gave a number of countries temporary exemptions from their tariffs for steel and aluminum which are now set to expire on May 1st. The European Union is seeking “unconditional permanent exemptions,” and has published a list of hundreds of American products they could target if the U.S. decides to move forward with tariffs. Trump has threatened to respond to any new EU trade barriers to a tax on vehicles made by European carmakers. If the US and EU go tit for tat it would hurt trade between them which is currently around 1.3 trillion a year.

The next Japan is not China but Thailand

The next Japan is not China but Thailand

Many people think that China is on the path to becoming the next ‘Japan,’ however a recent study has shown that Thailand is advancing quicker is some ways it’d probably prefer to avoid. Thailand is facing the same demographic as Japan 25 years ago, with its aging population, “it’s on the Japanese path of zero inflation, very low interest rates and a big current-account surplus,” (Economist). The aging population levels are rising fast, and the new work force going forward will be smaller than believed. Thailand “should be investing into infrastructure and machinery,” however there’s a lot of conservatism when looking at economic policies as many believe the focus should be on price stability instead of investment. There has been an increase in migrants from Vietnam and Myanmar, but they’re viewed as hurting the economy and stealing jobs rather than fixing the workforce numbers. “Public investment… shrank last year by 1.2%,” however,” receits from foreign tourists rose by 11.7% in 2017, boosting growth against a backdrop of weak domestic demand.” The country is known to attract tourists for its stunning beaches and outstanding nightlife, however citizens of Thailand have not seen an increase of inflation above 1% and in turn causing a slower economic movement than previously thought or expected.

https://www.economist.com/news/finance-and-economics/21739976-once-wildest-emerging-markets-thailand-ageing-fast-its-economic

Student Loans interest rate to rise in line with inflation

This article talks about how student loans interest rates are rising due to a rise in inflation in England, Wales, and Northern Ireland upwards of 6.3%, following an increase in the Retail Price Index measure of Inflation. The interest rate will be charged this autumn from when they start studying until April after they graduate. The rise will not change individuals’ monthly repayments, as these are based on how much they earn, as mentioned by the department for education. The National Union of Students mentions that while the rise is small, it adds psychologically to the burden of debt for young college students. Also, as mentioned by Education Editor Branwen Jeffreys, it is the middle income earners who are to feel the long-impact of high interest rates. He mentions that "if your earnings are low as a graduate, a larger part of your loan is likely to be written off by the government at the end of 30 years". 

It would be interesting to see how the percentage of student loans demanded would be affected in the short run, along with the change in the percentage of college enrollment. It would be interesting to see whether the policy of higher college loan rates would  be altered in response to a drop in college enrollment since the opportunity cost of holding money as an asset decreases when rates on student loans are so high. 

http://www.bbc.com/news/education-43810163

              

Women can't be paid less than men based on past wages, court rules

              This article focuses on the court ruling that women cannot be paid less than men, by using past wages as a benchmark for their pay.   This law makes sense because as the court cited, this is breaking an equal pay legislation that is already passed into law.  I believe this will help the gender wage gap that we have seen, and cannot hopefully pave the way to wage equality in the future.  This will most likely increase consumption ad investment because women will have more disposable income from this ruling, which could spur the economy even more.

https://www.nbcnews.com/news/us-news/women-can-t-be-paid-less-men-based-past-wages-n864236

Maple Syrup Economics

In the article by Mark Sappenfield he discusses how changes in technology and innovation has led to more efficient and higher production in the maple syrup making process. A recent hedge fund  started a sugaring operation with taps over 200,000 trees. Just over a decade ago it was thought that having 28,000 taps delusional by local farmers. The interesting thing about this industry is the cartel that has formed in the market. The Quebec cartel forces Quebec producers to produce less in order to keep prices stable and at higher prices. It is a very interesting article and I would have never believed that a cartel existed in the maple syrup industry. 


https://www.csmonitor.com/Commentary/upfront-blog/2018/0422/Where-maple-syrup-meets-global-economics

Why Working on the Railroad Comes With a $25,000 Signing Bonus

This WSJ article by Paul Ziobro gives tremendous insight into the tightening labor market currently within the United States. The article lays out the existence of tremendous signing bonuses as a sign that labor markets are becoming increasingly competitive and companies are in desperate need of workers.
Within the article it is mentioned that, "Some railroad workers are being offered signing bonuses of up to $25,000 to join BNSF Railway and Union Pacific Corp. as the freight railroads struggle to fill jobs... BNSF and Union Pacific are hauling more products across the Western U.S., where their networks are based, and trying to ease congestion in areas with high demand. Freight volumes are rising on strong economic growth and industrial expansion, and a shortage of available truck capacity is pushing more shipments onto rails."

After the explanation of this phenomena, the article mentions that "the unemployment rate has fallen to 4.1% in the U.S., and as low as 2.8% in some markets where railroads are hiring. In response, the companies are dangling incentives that analysts and union leaders say are the highest they can recall."



This article presents a great example of the skills gap going on in the United States right now. How should policy makers change what they are doing to help alleviate some of these market needs for firms?

https://www.wsj.com/articles/why-working-on-the-railroad-comes-with-a-25-000-signing-bonus-1524481201

A Downturn That Costs Jobs Could Catch the U.S. Unprepared

In the last recessions, states across the country found themselves borrowing billions of dollars to continue writing unemployment checks. State unemployment trust funds, which held total reserves of only $9.5 billion in 2010 are strengthening with almost $55 billion dollars in reserve last year. All the states have repaid the entirety of debt owed to the federal government. Although this is an improvement, it seems that many states, including New York, California, and Texas, have missed a major opportunity to rebuild their funding during the recent good economic times. Economists and policy experts have said that the federal government "may not be in a strong position to help the next time the U.S. economy goes south, because federal budget deficits are approaching $1 trillion. Now states are looking to modify terms of unemployment benefits. North Carolina along with 8 other states has reduced the duration of benefits to only 26 weeks. As we hang around the 10 year business cycle correction mark, it will be interesting to see whether or not States will take more aggressive measures to prepare for a recession. Currently, states are not doing an adequate job addressing the issue.

https://www.wsj.com/articles/a-downturn-that-costs-jobs-could-catch-the-u-s-unprepared-1524424830

We Don't Like Protectionism

https://www.cnbc.com/2018/04/19/brazil-finance-minister-we-dont-like-protectionism.html

This article was about Brazil's finance minister, and his outlook on trade in Brazil and the rest of the world. He believes that there should be open trade, and countries shouldn't have to fear tariffs. He believes that open trade is a quick and efficient way to growth and long-term success in an economy. What are your thoughts?

For me, I believe there should be open trade. With free and truly open trade amongst nations, consumers will benefit with increased competition and lower prices. This should boost consumption, and overall output in the economy. It would be nice to less trade threats between countries like the US and China, and instead revert to a way that incentives countries to freely trade with each other.

What global finance chiefs are saying about the global economy

Global financial chiefs are not too worried about the economy yet as they still see global growth reaching almost 4 percent in the coming year. However, as the United States pushes a fiscal stimulus package by Trump has caused stocks to become overinflated. This will cause the Fed to potentially raise interest rates which could lead to some economic instability. In addition, the increased protectionism we have seen lately is also a red flag.

https://www.bloomberg.com/news/articles/2018-04-22/what-global-finance-chiefs-are-saying-about-the-global-economy

What if Tesla's Time Is Running Out?

Tesla has been burning too much cash and causing too much mess, and investors are losing faith in Musk. Musk said that Tesla wanted to enter the market at a place where customers want to pay the high price, the produce a family car that is priced around 89k. It clearly didn't happen because the next two cars were luxurious and priced at above 100k. Tesla hasn't reported an annual net profit since they went public. Tesla is put on a funding treadmill, and its marketing has pushed it far for eight years, but if Tesla has a bad summer, things will look very rough and investors will lose faith completely.


https://www.bloomberg.com/news/articles/2018-04-19/tesla-s-cash-burn-has-elon-musk-s-dreams-living-on-borrowed-time

Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud

Zelle, which is a service that allows bank customers to end money instantly is booming. Last year alone, Zelle have more customers transferring money through them than Venmo, a rival money transfer app. However, lately hackers have used the system from Venmo and Zelle to steal from the users with more than two dozen customers had their money stolen through Zelle. I am curious to see how Zelle and Venmo would do to protect their users.

https://www.nytimes.com/2018/04/22/business/zelle-banks-fraud.html?action=click&module=MoreInSection&pgtype=Article&region=Footer&contentCollection=Business%20Day

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The Humbling of India's Tycoons

After watching the two videos about the Russian Oligarchs this situation seems very familiar. This article discusses the immense power that a select few businessmen have in India and refer to them informally as "bollygarchs." However, this article explains that their power is dwindling. The courntry is trying to battle their cronyism and they are beginning to see positive effects.
https://www.economist.com/news/leaders/21740739-nature-indian-capitalism-changing-long-may-it-last-humbling-indias-tycoons

State and Local Jobs Under Siege as a Middle Class Gateway

Though we have seen steady growth in the private sector of the American economy, growth in public sector wages and jobs have been lagging. Public sector jobs, which used to provide a safe route to the middle class, are now barely able to keep workers economically afloat. The effects of these shifts can be felt the hardest in deep red states that supported the Tea Party in its heyday. These states and counties are extremely against any sort of tax increases and these sentiments are felt in the form of shrinking budgets and scarcity of workers in the public sector. The article cites that public sector jobs make an average 27% lower than comparable jobs in the private sector. Public sector employees are now forced to work two jobs just to retain a decent standard of living. Virtually everyone agrees that the people working these jobs deserve to maintain a moderate standard of living but no one seems to want to front the bill. The questions that I have after reading this article are, how may we solve this problem while still keeping the American economic system in place and would we fare better as a society if we adopted a more liberal approach to the market system like that of Germany or Sweden?

https://www.nytimes.com/2018/04/22/business/economy/public-employees.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront

India’s A.T.M.s Are Running Out of Cash. Again.

The article focuses on the shortage of cash in India and the problems related to it. Several states have implemented withdrawal limits. The workers in India were already seeing a downturn in their earning because of the demonetization and imposition of high level of tax on goods and services. The opposition party leaders have expressed their fear of a forthcoming financial crisis in India. Economists think the reason behind this shortage is unknown and there could be multiple reasons acting together. During demonetization, the black market started collecting ₹2000 notes, as a result , the government stopped the supply of bigger denomination notes. People have started keeping more cash at home due to lack of confidence in banks.

https://www.nytimes.com/2018/04/20/business/india-bank-cash-atm.html











https://www.nytimes.com/2018/04/20/business/india-bank-cash-atm.html

Surging gas prices unlikely to dent SUV boom

In the United States, the automobile industry has been witnessing an SUV boom for much of the last few decades.  SUVs and trucks have combined for 67% of new car purchases this past year, and cars have witnessed a trend in the opposite direction, showing a 10.8% loss in sales when compared to SUVs and trucks for the first quarter of 2017.

Even though gas prices are going to reach their highest price over the last three years this upcoming summer, consumers are likely to not waver from their commitments to SUVs.  With today's models boasting improved gas mileage and cargo space, consumers are willing to dish out the extra cash per tank in order to obtain the benefits that come with driving an SUV, like comfort and passenger seating.

While the SUV purchases will continue to surge, it is going to be intriguing to see if any other industry is hurt by consumers' choice to allocate more financial resources to their cars, because these consumers will, comparatively, have less money to purchase other everyday items.

Do you see any other industry being hurt by this, or the boom slowing down?

https://www.foxbusiness.com/markets/surging-gas-prices-unlikely-to-dent-suv-boom

Facebook users are mad as hell over the Cambridge Analytica scandal

Facebook users were angry after the Cambridge Analytica scandal. Many users deleted their account as the reaction. The article shows a sharp increase in people expecting compensation for data loss and tougher government regulation after the scandal.

Facebook is losing its reputation and trust, which could cause the serious problem in the short term. The future of Facebook would largely depend on how Facebook reacts. Unlike United Airline, Facebook is not a company hard to be replaced. If United Airline could offer low price and discount tickets, they could still attract customers and time would make customers forget the scandal, but Facebook could not use the same way. I am curious that how the U.S. government would react after the scandal, will they make new policy to regulate the social media company for protecting user privacies, or leave the market free, letting the market self-regulates?

http://www.businessinsider.com/facebook-users-want-revenge-after-cambridge-analytica-data-breach-2018-4