López Obrador faces pension funds’ ire with commissions cut plan. President López Obrador’s plans to force fund managers to slash their commissions as part of a pension overhaul has triggered threats of litigation.
Private pension funds would have to nearly halve their commissions to 0.54%, from 0.92% according to a bill sent to Congress in September, which is expected to pass in both houses in the coming weeks. The industry has 4.5 trillion pesos (US $212 billion) under management. The government is seeking to revise the private pension system, which was set up in 1997, to boost retirement pay by 40% and pulled off a coup by persuading the private sector to increase its contributions. Without changes, it says workers could expect to retire on just 30% of their salaries. The planned commissions reduction took the fund managers by surprise, Bernardo González, president of the Association of Mexican Private Pension Funds, told the Financial Times. Countdown to recession: What an inverted yield curve means. Best of Davos: Risks to the Global Economy.
U.S. Business Activity Increases in Early 2020. China GDP grew 6.1% in 2019, slowest in three decades. BEIJING: China's economy weakened to its slowest pace in three decades in 2019 as weaker domestic demand and trade tensions with the United States took their toll, official data showed Friday.
The world's second-largest economy grew by 6.1% last year, its worst performance since 1990, according to the National Bureau of Statistics. The figure matches an AFP analyst forecast and is within Beijing's official target of 6-6.5%. But last year's growth was down from 6.6% in 2018. While China's economy had been gradually losing steam over the first three quarters, growth stabilised at 6.0% in the last three months of 2019 — the same pace as in the third quarter, according to the National Bureau of Statistics (NBS). Ning Jizhe, commissioner of the NBS, said China's economy generally sustained a stable momentum of growth in 2019. "However, we should also be aware that the global economic and trade growth is slowing down," he said at a news conference. A property market correction would hit Hong Kong hard, however optimistic the expert forecasts. Manufacturing recession: five quarters and counting.
Short of a miracle, Pakistan manufacturing activities had contracted for six straight quarters by the end of December 2019.
Data just released by Pakistan Bureau of Statistics (PBS) shows that manufacturing activities, measured by PBS's large-scale manufacturing (LSM) index, fell 4.6 percent in November 2019, taking the 5MFY20 number to a negative 5.9 percent. China injects $36 billion into financial system. China's Central Bank on Monday infused nearly $36 billion in country's market, according to the local media.
A statement by People's Bank of China said it injected 250 billion yuan ($36.4 billion) into the country's financial system at an interest rate of 2.65%, the daily ECNS reported. It said the financial infusion into the market will lead to liquidity in the banking system at reasonably sufficient level before the spring festival. The process was completed through a 14-day reverse repo under which the Central Bank purchase securities from commercial banks with an agreement to sell them back in the future. The country will have the spring festival on Jan. 25 to celebrate the new year of several Lunar New Years in Asia. China's Central Bank on Monday infused nearly $36 billion in country's market, according to the local media.
Dow Jones, Nasdaq 100, DAX 30 Forecasts for the Week Ahead. Dow Jones, Nasdaq 100, DAX 30 Outlooks: The Dow Jones saw earnings season kick off last week with earnings from JP Morgan, Wells Fargo and CitiThis week, the Nasdaq 100 will look to FAANG member Netflix for insightCapped by technical resistance, the DAX 30 may require a fundamental spark to continue higher Dow Jones Fundamental Forecast.
Four big misconceptions about investing in ETFs. It’s not easy to keep your emotions out of investing.
China Plans 39 Million-Mile Race to Mars to Catch Up With NASA. China is taking its rivalry with the U.S. to another planet.
The Chinese space agency is preparing a mid-year mission to Mars, marking the most ambitious project on an exploration checklist intended to achieve equal footing with NASA and transform the nation’s technological know-how. Landing the unmanned probe on the red planet would cap President Xi Jinping’s push to make China a superpower in space. If the UK doesn’t act now, the car industry will vanish. Govt prepares fresh set of tax incentives for entrepreneurs.
The Finance Ministry is planning to stimulate domestic investment this year by lavishing more tax reduction incentives on entrepreneurs.
"We've yet to come up with final figures but it will be more than the incentives we have offered before," Finance Minister Uttama Savanayana said on Saturday, adding the cabinet will have a final say soon on how generous the tax deduction will be. He did not spell out the new amount. A previous deduction for private sector investment expenses from corporate income tax was set at 1.5 times. How the ‘Sharing’ Economy Erodes Both Privacy and Trust. Our relationship to privacy is inseparable from our idea of trust.
Not just a first-world problem - Emerging economies are experiencing a prolonged productivity slowdown. HOW DO MODERN innovations stack up with those of the past?
Some economists, such as Robert Gordon of Northwestern University, argue that driverless cars, 3D printers and so on pale into insignificance compared with the fruits of previous industrial revolutions, such as mass production (see Free exchange). Everything You Need to Know About Recessions. Humankind’s impact on the world is obvious, but our spatial patterns are sometimes difficult to recognize from the ground. Publicly accessible, high-quality satellite imagery has been a game changer in terms of understanding the scope of forces such as urbanization and land use patterns.
Google Timelapse Maps Google Earth’s timelapsed satellite maps capture the drastic changes the planet’s surface has undergone over the past 34 years. Each timelapse comprises 35 cloud-free pictures, which have been made interactive by the CREATE Lab at Carnegie Mellon University. Three different satellites acquired 15 million images over the past three decades. 401(k)s Have Reached Their Expiration Date. What the Stock Market’s First Week Says About the Rest of 2020. Text size. Economists Have No Idea What Replaces Global Free-Trade System.
Photographer: Visual China Group/Getty Images One of the most interesting sessions I attended at last week’s American Economic Association meeting was a panel titled “Making global markets work for American workers.” The Economy Is Expanding. Why Are Economists So Glum? Ms. Yellen emphasized that government spending would need to play a larger role in combating future downturns, calling for stronger automatic stabilizers, which increase government spending when the economy weakens and tax receipts fall. There is no imminent sign that Congress is ready to enact such policies, but hope for government action was a constant refrain in San Diego. Sluggish growth in worker productivity has held back the economy, said Valerie A. Ramey, an economist at the University of California, San Diego. YouTube. Economy: World Bank warns of global debt crisis as borrowing increases.
Is now a part of Verizon Media. - Are you a robot? How and why economics forgot Keynes’ warnings on panics. Economics Nobel Prize 2019: Abhijit Banerjee, Esther Duflo and Michael Kremer Win Nobel Prize For Economics. Nobel Prize Economics: Indian-origin Abhijit Banerjee is one of awardees of the Nobel Prize for Economics Stockholm: EU news: Deutsche Bank CEO fears central banks have no tools left to ‘cushion’ crisis. Deutsche Bank CEO Christian Sewing said central banks like the European Central Bank and US Federal Reserve “have used their tools to a large extent already” to avoid global economic risks. Economics PhD says hedge fund life is easier than academia. Macro Economische Verkenning (MEV) 2020. Economic growth and the increase in purchasing power are higher than according to CPB’s concept projections (cMEV) published in August.