Global Economic Outlook

The prices of gold are heading toward their historical highest record, fuelled by huge purchases from central banks around the world. In fact, a lot of central banks are in a race to transfer their assets from the US dollar into gold, especially those countries which are already playing buddy-buddy with China. They see it as a politically neutral and secure asset — invulnerable to sanctions. Gold prices have rallied in the last couple of weeks on heightened buying by central banks, with the rise showing an expanding use of gold as a safeguard in global politics. The importance of the Gold at the moment, globally, was explained by Gita Gopinath, the deputy managing director of the International Monetary Fund, in her address last week. "After several shocks of a COVID-19 nature and no...

Russian President Vladimir Putin has caught everyone by surprise with the appointment of a civilian economist, Andrei Belousov, to the post of defense minister. It comes in the first week of Putin's next six years as president following his inauguration last Tuesday. Belousov, 65 years old, has also earlier taken the position of deputy prime minister and is being appointed to replace Sergei Shoigu, Putin's old ally. The Russian parliament remains yet to clear these appointments, but this is just a formality as the parliament will smoothly pass all the proposed amendments as Putin has a tight noose around the government. The spokesman for the Kremlin, Dmitry Peskov, spoke of innovation as a key part of modern military strategies and said that Belousov's education as an economist ...

New York City has reached a milestone as it now holds the title of having the higher number of millionaires, in the world. A recent report from Henley & Partners a firm specializing in immigration services reveals that the Big Apple is currently accommodating 349,500 millionaires making it a top global destination for individuals surpassing prominent cities. The notable increase in New Yorks millionaire population signifies a 48% surge over the decade. This growth is primarily attributed to the performance of markets as highlighted by Henley & Partners. Despite some individuals relocating elsewhere due to the pandemic many more have opted to make New York their residence contributing to its flourishing community of millionaires. New York City is home to a total of 8.2 millio...

NChinese President Xi Jinping has landed in France, marking the beginning of his European Union tour, a trip that comes at a critical time as the EU gears up for significant elections. Over the next few days, Xi is set to meet with French President Emmanuel Macron and other European leaders, aiming to smooth over some of the rough patches that have recently emerged in China-EU relations. During his two-day stay in France, Xi Jinping's agenda is packed. As reported by Bloomberg via French news outlet La Tribune Dimanche, Macron is eager to discuss several key issues, including trade imbalances and environmental concerns. Macron emphasized the need for an 'update' in the France-China relationship, highlighting that China's massive exports to Europe need addressing, especially in the gree...

In a significant shift in the American job market, new employment opportunities are increasingly found not in the traditional economic hubs of the coasts but in the Sunbelt and Midwest regions. This change, outlined in a recent analysis by the Economic Innovation Group (EIG), highlights how skyrocketing housing costs in cities like San Francisco, New York, and Boston are driving jobs to areas with more affordable living costs. According to the EIG report, cities such as Gainesville, Georgia, and Hilton Head Island, South Carolina, are now leading in job creation, overtaking the historically dominant coastal metropolises. This marks a stark departure from past trends where cities like Los Angeles and Seattle saw rapid job growth. Now, places in the Midwest and inland cities of the North...

Nicolai Tangen, the big boss at Norges Bank, spilled some tea to the Financial Times about how he thinks Americans hustle way more than Europeans. He's got a big say in where Norway’s gigantic $1.6 trillion oil fund throws its cash, and right now, half of it is riding on U.S. stocks. Tangen was straight-up about the differences in work vibes between the two continents. Over in the U.S., if you tank, you dust yourself off and dive back in. In Europe, not so much — one big flop and it feels like game over. He said this chill attitude might be why Europeans aren’t as driven. “We are not very ambitious,” he admitted, adding a cautious note on the whole work-life balance thing, hinting that maybe Americans are onto something with their all-out approach. The Norges Bank honcho was talking...

Jamie Dimon, the big boss at JPMorgan, recently spilled some thoughts on how American consumers are sitting pretty financially right now, but he also threw in a few warnings about tough times that might be coming up. He touched on the sticky issue of high prices sticking around (that's inflation for you), possible hikes in interest rates, and even the scary thought of a recession looming over us. He also pointed out that despite all the buzz around cryptocurrencies like Bitcoin, they haven't really shaken things up in the financial world. While chatting at the Economic Club of New York this Tuesday, Dimon pointed out that most folks are doing okay with their money. Home values and the stock market have been on the up, which is good news for everyone's wallet. Plus, people aren't drowni...

Aramco's head honcho, Amin Nasser, is all in on China for bringing down the price tag on solar panels and electric vehicles. While the West is pointing fingers at China for flooding the market with super cheap green tech, Saudi Arabia is all about getting cozy with China, trying to get a piece of the action with investments and sweet business deals. China's green scene has found an unlikely cheerleader in Saudi Aramco, the oil behemoth. They’re tipping their hats to the globe's second-biggest economy for making solar and electric rides easier on the wallet. "China really stepped up by making solar energy cheaper," said Aramco CEO Amin Nasser at the World Energy Congress in Rotterdam this Monday, as per the Financial Times. And it's not just solar. "Electric vehicles? Same story. ...

Saudi Arabia recently ramped up its promotional efforts for its ambitious Neom project by making stops in China, hitting major cities like Beijing, Shanghai, and Hong Kong to woo potential Chinese investors. Although the tour didn't lead to any immediate deals, it helped clear up some of the fog surrounding the ultra-modern development. During the visits, Neom officials aimed to spark interest and provide insights into the futuristic megacity, which has been shrouded in mystery and speculation, particularly regarding its financial viability and expansive vision. The show seemed to have a lukewarm reception according to Leonard Chan, chair of the Hong Kong Innovative Technology Development Association. While he found the project less enigmatic after the showcase, his personal take wa...

As China shifts toward high-growth industries like solar energy, electric vehicles (EVs), and lithium-ion batteries, the world braces for "China Shock 2.0," as some people have called it. The potential economic disruption follows when China is overly aggressive in its pursuit of leadership in each of these critical industries, whose potential to change the world is said to echo the past impact on global trade and labor markets of China's rapid industrialization. As China is selling "new three" fiercely to be the fundamentals of its economic revival in a very difficult time of post-COVID economic downturn and real estate debt premonition, China's leadership under Xi Jinping is being sold heavily. This is done in an attempt to shore up its domestic market, possibly to pose China as a cou...