Monday, March 10

Types of News: Brief

News briefs are shorter stories about current events. It’s the who-what-when-and-where. “Just the facts, ma’am.” Please see our writers guidelines.

Shocks Disrupt Global Supply Chains, But Firms May Keep Manufacturing in China
17Aug By Patti MohrNo Comments
Global Trade, Globalization, Global Disintegration, Types of News: Brief

Shocks Disrupt Global Supply Chains, But Firms May Keep Manufacturing in China

August 17, 2020--Multinational companies that use complex global supply chains to produce their products might shift as much as a quarter of their production to new countries in the next five years, according to the McKinsey Global Institute. It's not the end of globalization, but "an opportunity to reinvent it," the business think tank says. Disruptions from Shocks Shocks such as COVID-19, political instability, cyberattacks, financial crises, and extreme weather due to climate change are impacting trade flows and disrupting production facilities around the world. According to a report released by McKinsey this month, shocks are rising and imposing greater risks to global companies. "Intricate production networks were designed for efficiency, cost, and proximity to markets b...
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In the Midst of Pandemic, China Sets Economic Growth Target Aside
22May By Patti MohrNo Comments
Domestic Politics, Global Economics, Types of News: Brief

In the Midst of Pandemic, China Sets Economic Growth Target Aside

May 22, 2020--As Chinese Premier Li Keqiang delivered the government's work report at the start of China's 13th National People's Congress, one thing was notably missing: a target for economic growth. For decades, China's strength has come from a nearly single-pointed focus on increasing the size of its economy. Today, as its nation's leaders gather in the Great Hall of the People for their annual legislative session, the focus is on recovering from the ongoing blows of the COVID-19 pandemic. "The COVID-19 epidemic is the fastest spreading, most extensive, and most challenging public health emergency China has encountered since the founding of the People's Republic," Mr. Li said as he delivered his address to delegates. "At present, the epidemic has not yet come to an end, while th...
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18May By Patti MohrNo Comments
Finance, Investing, Types of News: Brief

State-Owned Investment Funds Seek Bargains in COVID-19 Economic Crisis

May 18, 2020-Even as governments and the private sector around the world face economic devastation caused by the COVID-19 pandemic and the related shutdown of economies, some state-owned investment funds have been busy looking for bargains in the stock market. Saudi Arabia's Public Investment Fund purchased $7.7 billion worth of stocks in the United States and Europe during the first three months of 2020. Purchases included a $827.8 million stake in BP, a $714 investment in Boeing, and purchases in Facebook, Bank of America, Citigroup, Walt Disney, Marriott, Pfizer and Starbucks, according to reporting by the Financial Times. And last month, it invested $500 million in the Los Angeles entertainment company Live Nation. The PIF is the tenth-largest sovereign wealth fund in the world....
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15May By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Domestic Politics, Types of News: Brief, United States

U.S. House Primed to Vote on Massive $3 Trillion Stimulus

May 15, 2020-The U.S. House is scheduled to vote today on a new supplemental spending bill for the current fiscal year. It's the fifth in a series of COVID-19 related stimulus bills, and it is massive in both physical size and its $3 trillion expense. Called the HEROS Act, the 1,815-page bill would extend unemployment benefits to furloughed workers for an additional six months, provide direct payments to businesses, give additional checks worth up to $1,200 for individuals, provide health care to unauthorized immigrants, financial support to farmers, renters and workers and $1 trillion for states and local governments. The Congressional Budget Office, which normally provides estimates for spending bills, has not published a report on the bill. Partisan Support Democrats are sp...
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Amazon.com Executive Quits In Protest of Worker Firings
4May By Patti MohrNo Comments
Global Economics, Types of News: Brief

Amazon.com Executive Quits In Protest of Worker Firings

May 4, 2020-Despite surging sales, Amazon.com faces a critical time as its workers around the world raise safety concerns and as one of its top executives resigns due to "toxicity running through the company culture." Tim Bray left his position as a vice-president at Amazon Web Services May 1 in protest over the company's treatment of workers who complained about unsafe warehouse conditions amid the COVID-19 pandemic. Bray said that although the decision to leave would cost him over a million dollars "not to mention the best job" he's ever had, he could no longer support power imbalances between workers and executives. In a blog post, Bray said Amazon.com executives fired two high-profile activists who had promoted a petition and organized a video call on behalf of warehouse work...
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Global Economy to Shrink by 3 Percent in 2020, IMF Says
15Apr By Patti MohrNo Comments
Global Economics, Types of News: Brief

Global Economy to Shrink by 3 Percent in 2020, IMF Says

April 15, 2020--The global economy is headed towards to worst economic downturn since the Great Depression due to the COVID-19 pandemic, according to the world's lender of last resort. The International Monetary Fund now projects a contraction of 3 percent to the world economy. It's a downgrade of 6.3 percentage points from the IMF's January 2020 estimate. The difference is due to the global pandemic and the measures taken around the world to contain it. "The magnitude and speed of collapsing activity that has followed is unlike anything experienced in our lifetimes," said Gita Gopinath, IMF's economic counselor and director the Research Department in a press briefing on April 14. "This makes the great lockdown the worst recession since the Great Depression, and far worse than t...
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9Apr By Patti MohrNo Comments
Global Economics, Global Trade, Types of News: Brief

Global Economy Faces ‘Sharply Negative’ Outlook for 2020; Partial Recovery Possible for 2021

April 9, 2020-Despite fiscal stimulus of $8 trillion by governments around the world, the global economy may turn "sharply negative" this year due to the COVID-19 pandemic, according to the International Monetary Fund. Meanwhile, experts predict massive declines in global trade and employment. "Today we are confronted with a crisis like no other," IMF Managing Director Kristalina Georgieva said on Wednesday. "Covid-19 has disrupted our social and economic order at lightning speed and on a scale that we have not seen in living memory." The outlook is bleak for both advanced and developing economies. The IMF projects negative per capita income growth in over 170 countries this year and only a partial recovery under baseline assumptions for 2021. Georgieva emphasized that 2020 wil...
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3Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

U.S. Federal Reserve Says Economic Outlook Has ‘Changed Materially’ as Coronavirus Spreads

March 3, 2020--Over a week into turbulence in the financial markets from a global outbreak of the coronavirus, the U.S. Federal Reserve cut its policy rate by 50 basis points amid signs that the economic outlook has "changed materially." Federal Reserve Chair Jerome Powell said he expects the COVID-19 virus to impact the global economy "for some time." It has already affected tourism and travel industries and threatens to disrupt global supply chains. "The magnitude and persistence of the overall effects on the economy, however, remain highly uncertain, and the situation remains a fluid one," Powell said on Tuesday. Globally, the COVID-19 virus has infected at least 90,893 people across 21 countries and killed 3,110, the World Health Organization reported today. Market Turbulence ...
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Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’
22Jan By Patti MohrNo Comments
Energy Policy, Oil & Gas, Global Trade, Types of News: Brief

Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’

January 22, 2020-In a sign of the escalating tensions between the West and Iran, more countries are expressing support for the international coalition protecting shipping traffic through the Strait of Hormuz. South Korea is the latest to announce a plan to send a naval destroyer to the strait. On Tuesday, the government said it is sending an independent and temporary mission to "guarantee the safety of our people and the freedom of navigation of our vessels,” according to a news report in Stars and Stripes. Iran had previously warned South Korea against joining a US-led coalition. New European Naval Mission On Monday, the governments of Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, and Portugal released a joint statement warning that rising instability in the ...
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Spain Says Climate is National Emergency
22Jan By Patti MohrNo Comments
Climate Action, ESG, Sustainable Finance, Types of News: Brief

Spain Says Climate is National Emergency

January 22, 2020-Spain's new socialist government declared that climate change is a national "emergency." The government plans to make it a cornerstone issue for all ministerial departments and government actions. That adds Spain to a list of more than two dozen countries that have declared climate change an emergency. The coalition government led by Prime Minister Pedro Sánchez, who took office on 13 January, plans to bring legislation to the parliament to reduce greehouse gas emissions to a net zero by 2050, according to reporting by Euractiv and AFP. If parliament approves the bill, it would require "all urban areas with a population of more than 50,000 to create low-emission zones," Reuters reported.
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