Tuesday, March 13, 2018

Forbes: How The Sun's Activity Could Auger An Economic Change

 By SIMON CONSTABLE

Once upon a time, people would worship the sun as a deity. It was with good reason that they did so for the sun provided much of what sustains life on our small planet, warmth and bountiful harvests. How would we survive if the sun stopped beating down on us? It was a real fear.
Then came science and industrialization. As the new era took over, we mostly forgot the sun and its importance to our existence. (Of course, most people occasionally complain that it is either too sunny or not sunny enough.)
But just because we stopped paying close attention doesn't mean that it lost any of its importance to our world. And neither does the fact that the life of the sun is far more complex than many people realize. Indeed, if we are to believe the experts, the sun's behavior is about to change in a way that could have dramatic consequences for the food we eat and the broader economy. Read more here.


Monday, March 12, 2018

P.J. Media: How Tillerson Could Push Gasoline Prices Higher

By SIMON CONSTABLE

Brace yourself! You could soon be paying more for gasoline.

The price you pay at the pump gets determined by a few different things, but unfortunately for consumers the risks mostly seem pointed in the wrong direction.

The key factors to watch are the supply of oil, demand for oil, and the availability of the refineries to convert crude oil into gasoline. Read more here.

Wednesday, March 7, 2018

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.

Monday, March 5, 2018

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

Friday, March 2, 2018

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