Strike against GM nears three weeks

The main remaining issues in the negotiations between the United Auto Workers union and General Motors Co have narrowed to wages and pensions. Meanwhile the strike continues, nearing three weeks. The GM strike began on Sept. 16 with the 48,000 UAW members seeking higher pay, greater job security, a bigger share of the leading U.S. automaker’s profit and protection of healthcare benefits. The sides have been meeting daily and talks continued on Saturday. One of the major remaining issues includes the UAW’s desire to reduce the time it takes newer hires to earn the top wage scale of about $31 … Continue reading Strike against GM nears three weeks

Tim Draper: “Bitcoin will grow more than 25-fold by 2022”

Bitcoin to hit $250,000 by 2022? Investor Tim Draper thinks that is a conservative prediction. “$250,000 means that bitcoin would then have about a 5% market share of the currency world and I think that may be understating the power of bitcoin.” The venture capitalist said he may have underestimated bitcoin when he previously predicted it will reach $250,000 – a figure he first forecast when bitcoin was worth around $5,000 in 2018. A remarkable resurgence in 2019 means bitcoin is currently trading at just above $10,000, though it remains a long way off its record high from December 2017 of nearly … Continue reading Tim Draper: “Bitcoin will grow more than 25-fold by 2022”

China exempts 16 US products from tarriffs

China on Wednesday announced plans to exempt 16 types of U.S. products from additional tariffs, including food for livestock, cancer drugs and lubricants. The exemption, which is scheduled to go into effect from September 17, will be valid for a year through to September 16, 2020. The announcement comes as high-level trade officials from China and the U.S. prepare to meet in Washington next month. It will mark their latest attempt to resolve a protracted trade dispute. Washington and Beijing have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets … Continue reading China exempts 16 US products from tarriffs

Hungary unlikely to head into outright recession

Hungary’s Finance Minister Mihaly Varga mantains his optimism: “Risks to global economic growth are unlikely to trigger an outright recession”, he said on Saturday, adding that the best way to tackle a slowdown was to maintain fiscal discipline and market stability. “Whenever there is a slowdown and we cannot speak of an acceleration of growth cycles, positions of balance always come to the fore,” Varga told a meeting of Hungarian economists. “We must avoid fiscal profligacy and maintain fiscal discipline and rigour,” Varga said. On Thursday, central bank Governor Gyorgy Matolcsy said risks to global growth, such as Brexit, the … Continue reading Hungary unlikely to head into outright recession

Why foreign investors are fleeing India

Foreign investors have fled stock markets after the budget. The Sensex is down nearly 2,500 points. Small and midcap stocks have fallen even faster. Beyond the budget, other problems are growing too. They add up to a discouraging message: Foreigners, enter India at your own risk. Andhra Pradesh chief minister Jagan Reddy has reserved 75% of jobs in industrial and infrastructure ventures for state residents. Madhya Pradesh chief minister, Kamal Nath, also pledged earlier this month to reserve 70% of jobs in private sector companies for locals. The Constitution forbids discrimination based on place of birth, but these gentlemen do … Continue reading Why foreign investors are fleeing India

South Africa risks a second recession in consecutive years

South Africa’s economic growth prospects keep going from bad to worse. The International Monetary Fund is the latest key institution to slash its growth forecast for Africa’s most-industrialized economy, which may have fallen into its second recession in as many years. It now expects the economy to expand by 0.7% in 2019, half of what it estimated in January, and similar to forecasts by the South African Reserve Bank and Bloomberg Economics. The economy shrank the most in a decade in the first quarter of this year as the nation suffered the worst power outages since 2008. The National Treasury, which forecast growth of 1.5% in … Continue reading South Africa risks a second recession in consecutive years

Why Trump prefers Draghi over Powell

Central bankers rarely say anything that sticks in the memory. Mark Carney has been at the Bank of England for the past six years and is known as the rock star central banker, and not always in a good way. His answers to questions at press conferences are often like solos from the lead guitarist of a 1970s prog rock band: long and boring. Indeed, only two central bankers have ever come up what might be called zingers. William McChesney Martin, who ran the US central bank for almost two decades from 1951 to 1970, said the Federal Reserve was in the position of … Continue reading Why Trump prefers Draghi over Powell