Author: natixis-ezine

IMF warns of higher recession risk and darker global outlook

natixis-ezine

Read time : 4 mins

Level : Intermediate

International Monetary Fund Managing Director Kristalina Georgieva speaks on the global economic outlook and key issues to be addressed at this month’s IMF and World Bank Annual Meetings, at Georgetown University in Washington, Thursday, Oct. 6, 2022. (AP Photo/J. Scott Applewhite)

By FATIMA HUSSEIN Associated Press

WASHINGTON (AP) — Two principal economists painted very different pictures Thursday of what the global economy will look like in the coming years.

Kristalina Georgieva, managing director of the International Monetary Fund, told an audience at Georgetown University on Thursday that the IMF is once again lowering its projections for global economic growth in 2023, projecting world economic growth lower by $4 trillion through 2026.

“Things are more likely to get worse before it gets better,” she said, adding that the Russian invasion of Ukraine that began in February has dramatically changed the IMF’s outlook on the economy. “The risks of recession are rising,” she said, calling the current economic environment a “period of historic fragility.”

Meanwhile, U.S. Treasury Secretary Janet Yellen, on the other side of town at the Center for Global Development, focused on how the U.S. and its allies could contribute to making longer-term investments to the global economy.

She called for ambitious policy solutions and didn’t use the word “recession” once. But despite Yellen’s more measured view, she said “the global economy faces significant uncertainty.” Continue reading

Ex-Fed Chair Bernanke shares Nobel for bank failure research

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Read time : 5 mins

Level : Advanced

From left, Tore Ellingsen, Hans Ellegren and John Hassler members of the Royal Swedish Academy of Sciences announce the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022, during a press conference at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday, Oct. 10, 2022. From left on screen Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig have been awarded 2022’s Nobel Prize in economic sciences. (Anders Wiklund/TT News Agency via AP)

By DAVID KEYTON, FRANK JORDANS and PAUL WISEMAN Associated Press

STOCKHOLM (AP) — Former Federal Reserve Chair Ben Bernanke and two other U.S.-based economists won the Nobel Prize in economics for research into bank failures — work that built on lessons learned in the Great Depression and helped shape America’s aggressive response to the 2007-2008 financial crisis.

The Nobel panel at the Royal Swedish Academy of Sciences recognized Bernanke, Douglas W. Diamond and Philip Dybvig on Monday for research that shows “why avoiding bank collapses is vital.”

Their findings in the early 1980s laid the foundations for regulating financial markets, the panel said.

“Financial crises and depressions are kind of the worst thing that can happen to the economy,” said John Hassler of the Committee for the Prize in Economic Sciences. “We need to have an understanding of the mechanism behind those and what to do about it. And the laureates this year provide that.” Continue reading

In Brazilian Amazon, a 1,000-mile voyage so people can vote

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Read time : 3 mins

Level : Intermediate

A worker carries an electronic ballot machine at a polling station during general elections in Lago de Catalao, Amazonas state, Brazil, Sunday, Oct. 2, 2022. (AP Photo/Edmar Barros)

By EDMAR BARROS and FABIANO MAISONNAVE undefined

MANAUS, Brazil (AP) — In most democracies, citizens go to the polls. But in Brazil’s sparsely populated Amazon region, the polls often go to the voters.

Most people in the vast rainforest live in urban areas, but thousands reside in tiny villages several days from the nearest city by boat. Amazonas, Brazil’s biggest state, is triple the size of California yet has only about one-third the population of greater Los Angeles. More than half its cities can’t be reached at all by road, and some are hundreds of kilometers from the state capital, Manaus.

Logistics pose a challenge even in Manaus, a sprawling municipality of 2.2 million people. On Saturday, The Associated Press accompanied election workers setting up a voting place in the Bela Vista do Jaraqui community, a three-hour boat trip from the city. Continue reading

What the war in Ukraine means for Asia’s climate goals

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Read time : 4 mins

Level : Advanced

FILE – Tourists ride horses near Wind turbines on the grassland in Zhangbei county, in north China’s Hebei province on Aug. 15, 2022. China, currently the top emitter of greenhouse gases in the world, aims to reach net zero by 2060, requiring significant slashing of emissions. (AP Photo/Andy Wong, File)

ANIRUDDHA GHOSAL and SIBI ARASU Associated Press

NEW DELHI, India (AP) — The queues outside petrol pumps in Sri Lanka have lessened, but not the anxiety.

Asanka Sampath, a 43-year-old factory clerk, is forever vigilant. He checks his phone for messages, walks past the pump, and browses social media to see if fuel has arrived. Delays could mean being left stranded for days.

“I am really fed up with this,” he said.

His frustrations echo that of the 22-million inhabitants of the island nation, facing its worst ever economic crisis because of heavy debts, lost tourism revenue during the pandemic, and surging costs. The consequent political turmoil culminated with the formation of a new government, but recovery has been complicated by Russia’s invasion of Ukraine, and the consequent upending of global energy markets.

Europe’s need for gas means that they’re competing with Asian countries, driving up prices of fossil fuels and resulting in what Tim Buckley, the director of the thinktank Climate Energy Finance, refers to as “hyper-inflation … and I use that word as an understatement.” Continue reading

Walmart, Target begin holiday early to ease inflation sting

natixis-ezine

Read time : 3 mins

Level : Intermediate

FILE – People shop at a Target store in Clifton, New Jersey, on Monday, Nov. 22, 2021. The nation’s two major retailers _ Walmart and Target_ plan to push deals and other marketing gimmicks for the holiday shopping season earlier than last year as soaring inflation spurs customers to get a jump start on gift giving. (AP Photo/Ted Shaffrey, File)

By ANNE D’INNOCENZIO AP Retail Writer

NEW YORK (AP) —

Walmart and Target plan to begin offering deals and price matching offers earlier this year to keep up with Americans pressed by soaring inflation and looking for ways to ease the potential sting of holiday shopping.

For two years now, shoppers have started preparing for the holidays early but last year it was because the global supply chain had been scrambled as nations began to emerge from the pandemic. This year, experts believe it is a rapid rise in prices, also tied to pandemic stricken economies, that will drive Americans to shop early to avoid prices that they believe could rise even further and to spread out the spending as they pay more for gasoline, food, and just about everything else.

The holiday sales strategies, announced on Thursday, come amid what is expected to be slower holiday sales growth compared with a year ago. AlixPartners, the global consulting firm, forecasts that holiday sales will be up anywhere from 4% to 7%, far below last year’s growth of 16%. The current inflation rate of 8.3% means retailers would see a decrease in real sales. Continue reading