Middle East Eye: Change to Saudi bankruptcy law should give economy a boost

By SIMON CONSTABLE

Saudi Arabia is changing its bankruptcy laws in a move that should help the country diversify its economy away from oil.

The change, which came from King Salman in February, will undoubtedly help boost much-needed foreign investment in the kingdom. That’s because, up until now, there has not been a satisfactory way to deal with an insolvent corporation. That’s a significant disincentive to foreign and domestic business people to set up shop in the country.

“The lack of bankruptcy legislation has acted as a key deterrent to entrepreneurs in Saudi Arabia as well as to the willingness of local banks to provide financing to business start-ups,” states a recent report from Capital Economics. Read more here.

Joe Pispoco Show: Talking Steel Tariffs

By SIMON CONSTABLE



Listen here.

WSJ: What Are FROGs?

By SIMON CONSTABLE

There’s a new acronym out there that may have implications for investors. It’s FROGs, or frivolously related output gaps.

An output gap is the difference between an economy’s actual and potential gross domestic product. FROGs refer to output-gap estimates for certain eurozone countries that appear to be unusually small, according to a recently published analysis from the Institute of International Finance, based in Washington, D.C. Read more here.

Photo by USGS on Unsplash

WSJ: A VIX-Related Fund Did Go ‘Poof’

By SIMON CONSTABLE

They were warned. 

February’s burst of market volatility was the death knell for VelocityShares Daily Inverse VIX Short-Term exchange-traded note (XIV), designed to make a high-wire bet that markets would stay calm. Read more here.

Photo by Stephen Hocking on Unsplash

Briefings: The Dark Side of Pay Raises

By SIMON CONSTABLE

The word is out and it is surely much-needed news for workers at all levels: After a decade of barely keeping pace with inflation, experts say, wages are poised to rise significantly in the United States. That matches what countries in emerging markets have already seen, and is expected to help nudge paychecks in Europe up as well. But for companies, of course, there’s a bottom line and talent-jarring impact from any increase. The big question is how disruptive the Year of the Pay Raise will turn out to be. Read more here.

Photo by Emilio Takas on Unsplash

PJ Media: Identifying Drive is Critical to Job Retraining Initiatives

By SIMON CONSTABLE

When it comes to retraining displaced workers, President Trump hit the bull's-eye on a target at which few politicians take aim.

“Let's invest in workforce development and let's invest in job training, which we need so badly,” he said January’s State of the Union address.

Retraining is needed badly, which will become increasingly evident as technology displaces jobs in field after field. The need to constantly upgrade skills has become a reality among professionals as well as factory workers.

Can we teach old dogs new tricks? Yes, we can. Read more here.

Forbes: Venezuela's New Cryptocurrency Is An Even Worse Investment Than Bitcoin

By SIMON CONSTABLE

Just when you thought the cryptocurrency craze couldn't get stranger, up pops its most absurd proposition yet: the Petro.

It is Venezuela's version of bitcoin, which is perhaps the best-known cryptocurrency. The Petro's "presale" launched February 20 and is expected to run through March 19. The goal is to raise up to $2 billion according to a recent report from geopolitical consulting firm Eurasia Group. Read more here.