Finance
The US’s schizophrenic recovery: Banks’ earnings on the rise as the government bails out families
Talks of a “K-shaped” recovery after the pandemic crisis started in 2020, predicting that some sectors of the economy will benefit disproportionately by the pandemic, while everyone else bears the costs for it. Big banks and the world of finance are surely to be on the benefiting end. However, policy-makers, shareholders and executives seem to be missing a key lesson of the Great Recession -the risk of an enriching bank system that loses touch of reality may aggravate the schizophrenia of the post-pandemic economies.
Finance in 2021: The Challenges and Opportunities 2020 Left Behind
Even though the new year has been around for a while, new trends keep emerging in the world of finance. The greatest challenges and opportunities of 2021 all rest on phenomena and policies initiated in previous years. Sure, what lies ahead is much less certain than some analysts seem to believe. Nevertheless, it is worthwhile for investors look at what they can expect in the next months and brace for it – or reap.
Documents Leaked to Reuters Raise Concerns about COVAX
COVAX Launched in April 2020, the Access to COVID-19 Tools (ACT) Accelerator partnership was convened by the World Health Organisation (WHO), Gavi – the Vaccine Alliance and The Coalition for
What bubbles, eventually bursts: are 2020’s tech IPOs the path to the first post-pandemic crisis?
2020 was a “bust-and-boom pandemic year” for financial markets. In fact, December was the hottest month when it came to what big investors are really putting money into: tech IPOs. With buyers pouring their money into ever-riskier bets, is the IPO bubble set to burst?
Killing the Dollar: A Side-Effect of COVID and its Cures?
Since the end of World War II, the US dollar has consistently functioned as a safe harbour for investors caught by any sort of turbulence. Thus, no one was surprised by its appreciation at the height of the current pandemic, which began in April 2020. And no one will be surprised if vaccine makers’ promises to end the pandemic null all those gains. Yet, the currency’s status and reputation have been weakening since the demise of the Bretton Woods Accord in 1974 to the point that, as a side-effect, COVID and its cures may be lethal for the dollar’s international dominance.
EU treaty instrument may mitigate risk of money laundering in the single market
The European Commission is planning to use Article 116 of TFEU in order to clamp down on multinational companies using favourable tax schemes in some EU member states to their advantage. The treaty instrument is designed to mitigate the risks associated with foreign subsidies that distort competition in the single market.
Saudi Aramco: Risks to Potential Investors
Saudi Aramco is now the world’s largest and most profitable company – valued at $2 trillion company. 1.5% of its stakes went public and are considered an attractive investment. However, multiple risk factors remain.
Default of IL&FS sends shockwaves through India’s financial markets
A series of defaults by India’s key infrastructure lender, Infrastructure Leasing and Financial Services Limited (IL&FS), has sparked fears about the health of other non-bank lenders and led to a squeeze in India’s corporate debt market that these lenders have relied upon.
The Week Ahead: 9-15 September
EU Commission presidency election ramping up. Sweden struggles to form a coalition. UK interest rates. All in The Week Ahead.
Dollar appreciation against the real likely to impact Brazil’s economic recovery
The US dollar’s appreciation has caused concern regarding Brazil’s economic recovery – which has been driven by its internal market – given its pressure on inflation and the possible decrease in consumption as products become more expensive.
