Global Economics Archives

U.S. Stock Ownership Rises to 61 Percent

24Jul

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Climate Action, ESG, Sustainable Finance, Finance, Banks, Cryptocurrency, Metals

U.S. Stock Ownership Rises to 61 Percent

July 24, 2023—Individual stock ownership in the United States fell after the 2008 financial collapse from 62 percent in 2007 to a low of 52 percent in 2013 and 2016. But now Americans' ownership stake in capital markets is rising. According to a Gallup poll taken in April, 61 percent of respondents said they own individual stock, a mutual fund, or a self-directed 401(k) stock fund. Stock ownership is significant not only as an indication of personal savings but also in regard to empowering individuals. For example, proxy votes, like the one that Disney faced in April, give shareholders to have a say in company decisions. It is a key benefit of capitalism that supports sustainable finance.

8May

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Finance, Banks, Cryptocurrency, Metals

Jamie Dimon’s Brand Of Stakeholder Capitalism

May 8, 2023—Since JP Morgan Chase stepped into the midst of another bank crisis last week, observers are taking note of its CEO's brand of stakeholder capitalism. For example, Emily Flitter writes in the New York Times that Jamie Dimon has become a champion of the "publicly championed the concept of 'stakeholder capitalism,' the idea that doing right by shareholders also involved treating communities, workers and customers better." As head of one of the world's largest asset managers, Dimon is in a position to influence the state of capitalism. In 2008, he led JPMorgan's acquisition of troubled competitors. It was a decision that helped save the financial system as a whole. This year, Dimon is acting once again as a savior as regional banks come under stress. A week ago, U.S. regula...

United States: Inflation Moderates In March

12Apr

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics

United States: Inflation Moderates In March

Housing Prices Rise While Energy Costs Fall April 12, 2023—Consumer prices still rose in March in the United States, yet they rose less than they have in previous months. The Consumer Price Index for all items increased by 0.1 percent for the month, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. Over the past year, prices as a whole increased by 5 percent—the smallest spike since May 2021. The category for shelter, specifically rent and housing prices, increased the most. It rose by 0.6 percent in March and 8.2 percent in the past year. Meanwhile, the cost of energy commodities and services started coming down by 4.6 percent and 2.3 percent, respectively, in March.

Disney’s Shareholders’ Proxy Proposals Fail At Annual Meeting

3Apr

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Globalization, Disintegration, Nationalism, Populism, Types of News: Brief

Disney’s Shareholders’ Proxy Proposals Fail At Annual Meeting

April 3, 2023—Shareholders weighed in on several political issues at The Walt Disney Company's annual meeting. They included votes about its charitable contributions, its political contributions, and its business in China. Voting is tallied based on the number of shares, and the shares weighed heavily in favor of the company's recommendations. Furthermore, it should be noted that 64 percent of Disney's 1.16 billion shares are held by institutional investors. Shareholder Proxy Votes On one proxy vote, the National Legal and Policy Center, NLPC, a Disney shareholder and a public-interest nonprofit group, asked Disney to publish an annual report on the company's dealings in and with China. That vote went down 7.1 shares supporting the proxy measure, 88.9 opposing it, and 4 percent a...

Tech Leaders Call For Pause In A.I. Experiments

30Mar

By Patti MohrNo Comments

Big Tech, Digital Economy, Types of News: Brief

Tech Leaders Call For Pause In A.I. Experiments

Artificial Intelligence Poses 'Profound Risks to Society And Humanity' March 30, 2023—As computer scientists race to advance artificial intelligence technologies, tech and academic leaders are calling on AI laboratories to pause experiments on all products greater than one called GPT-4. Furthermore, they called on governments to intervene to force a stop if labs do not impose one. A nonprofit organization called Future of Life published the letter on Wednesday. It warned: "AI systems with human-competitive intelligence can pose profound risks to society and humanity, as shown by extensive research[1] and acknowledged by top AI labs," the letter says. "As stated in the widely-endorsed Asilomar AI Principles, Advanced AI could represent a profound change in the history of life on E...

Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says

22Mar

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says

Federal Reserve Chair Jerome Powell answered press questions on March 22, 2023. Rate Hike Takes Place In Environment Of Uncertainty March 22, 2023—Federal Reserve Chair Jerome Powell assured the public and press on Wednesday that the U.S. banking system is "strong, sound, and well capitalized." His comment came less than two weeks after several banks, namely U.S.-based Signature Bank and Silicon Valley Bank and Swiss-based Credit Suisse, failed. The Federal Reserve Committee announced today it is raising the federal funds rate to a range of 4.75-5 percent in light of persistently high inflation. Powell said the Fed would have to bring inflation down to 2 percent because "the costs of failing are much higher." The Fed's decision follows a similar rate increase by the European C...

Economic Sands Shift: ‘B’ Is For ‘Beginning’

16Mar

By Patti MohrNo Comments

Europe, EU, Eurozone, and United Kingdom, Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Videos

Economic Sands Shift: ‘B’ Is For ‘Beginning’

March 16, 2023-Recent turmoil in the banking sector in the United States and Europe poses a challenge to governments facing inflation. Here's my take. Due to the lag effect of central bank policies, what we are seeing in the banking sector is a beginning not an end to financial troubles. https://www.youtube.com/watch?v=oyBfFctQYn4

ECB Raises Interest Rates Despite Signs Of Credit Crunch

16Mar

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

ECB Raises Interest Rates Despite Signs Of Credit Crunch

ECB raises rates by 50 basis points on March 16, 2023. March 16, 2023—The European Central Bank raised its three key interest rates by 50 basis points in response to persistently high inflation. That increases the main refinancing operations, the marginal lending facilities, and the deposit facility to 3.5 percent, 3.75 percent, and 3 percent, respectively. Those rates are up from 0.00 percent, 0.25 percent, and -0.50 percent in June 2022. The move comes in the middle market turmoil stemming from pressure in the banking system over recent rate rises. In its press release, the ECB noted an "elevated level of uncertainty." It takes place as financial distress hits the banking sector in the United States and in Europe. Two U.S. banks collapsed in less than a week, posing a ripple eff...

US Regulators Act Following Bank Collapses

14Mar

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief, United States

US Regulators Act Following Bank Collapses

Run On Bank Was First Sign Of Significant Volatility Amid Rate Hikes March 14, 2023—U.S. regulators and policymakers acted swiftly over the weekend following the collapse of Silicon Valley Bank on Friday and Signature Bank on Sunday. The runs on the banks by customers are the first signs of major volatility following the Federal Reserve's multiple rate hikes to reduce inflation. The government through the Federal Deposit Insurance Corporation provided a risk-exception guarantee for all bank deposits of the two banks. That mitigated the risk of additional runs on banks. The details are as follows: The FDIC's guarantee would not apply to investors or unsecured debt holders. Regulators removed senior management of the banks. The FDIC took over Silicon Valley Bank and opened Signature...

US, Canada, EU Look Deeper Into TikTok Privacy Issues

1Mar

By Patti MohrNo Comments

Big Tech, Digital Economy, Types of News: Brief

US, Canada, EU Look Deeper Into TikTok Privacy Issues

March 1, 2023—Government officials in the United States, Canada, and the European Union are investigating potential data harvesting by the video-sharing app TikTok, which is owned by Chinese firm ByteDance. The governments in those countries and the broader EU banned staff from having the app on devices. This week the European Parliament followed recent actions by the European Commission and the EU Council to ban TikTok from government devices. Furthermore, the parliament "strongly recommended" to lawmakers and staff to remove the app from their personal devices, according to reporting by Reuters. On Monday, the Canadian government adopted similar restrictions. Biden Executive Order Going Into Effect President Joe Biden strengthened and replaced an executive order by former Pre...