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Tuesday, 27 June 07:42 (GMT -05:00)



Business And Politics News

During Trump's Presidency, Global Economy May See Stagflation, Bank of America Says


Bank of America warns after Donald Trump’s victory in the presidential election, over 20% of international investors are expecting stagflation in the global economy in the near future.

 

 

 

 
To be more specific, the recent survey conducted by the bank shows that 20% of 177 portfolio managers running over 456 billion dollars in assets assume that the global economy is going to fall into stagflation within the next 12 months.
 
At the same time, the bank representatives underline that today’s expectations of stagflation in the global economy have reached a new 4-year high. For those of you who don’t know, stagflation is an economic situation when zero or little economic growth comes hand in hand with rising unemployment and inflation.
 
Economic Growth Expectations Rise As Well, Survey Says
 
At the same time, the expectations of a stronger global economy within the next 12 months have risen as well. While the amount of investors anticipating a stronger economy used to be 1% in October 2016, now has gone all the way up to a stunning 35%, which is a new record high.
 
Bank of America explains that the results of the recent U.S. presidential election are seen as a positive factor for the global economy. The same holds true for corporate incomes. In October, 10% of the respondents used to expect higher corporate incomes in the USA. Now, it’s 29% of the respondents who think so. As for inflation expectations, they have risen all the way up to 85% since October, when the figures were around 70%.
 

 

At the same time, another major American bank, which is Goldman Sachs, says that Trump’s protectionism policy may well trigger stagflation in the American economy in the near future. For those of you who don’t know, Trump’s trade protectionism policy implies supporting American producers and capping imports amid war on illegal immigration. If Donald Trump really puts into practice everything he promised during the presidential campaign, the expert say that the U.S. GDP may well shrink by 0.8% against the 2017-2019 forecast. At the same time, the rate of unemployment and inflation may rise to 5.3% and 2,3% respectively. If that’s the case, the Fed is likely to fight higher inflation above the target level by aggressive interest rate hikes.

 

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What’s New in New Anti-Russia Sanctions?

Today, the Russian political establishment and media are glad that the Senate of the U.S. Congress has recently postponed their voting on new sanctions against Russia. However, this is just the so-called “calm before the storm”, Western experts say.

 

 
The new sanction mechanism developed by the Senate is fundamentally different from the sanctions imposed on Russia previously, under Obama’s administration. The experts say that unlike Obama’s isolated decrees, the Senate has come up with a whole new mechanism taking into consideration the whole seriousness of Russia’s crimes in the global geopolitical arena. This mechanism will prevent the U.S. authorities from being able to cancel those sanctions gradually. So, the only way out will boil down to Russia leaving Donbass, the Crimea and Syria. So, this will be the only opportunity for Russia to see the Western world cancel those sanctions.
Publication date: 26 June 01:26 AM

Fed Raises Key Interest Rate. How Will This Affect Russian Economy?

The federal Reserve has raised the key interest rate by 0,25%. According to international experts, this may well make foreign assets (including Russian ones) less attractive in terms of investing.

 

 
The decision was made as the result of the recent 2-day FOMC meeting. The interest rate was raised up to 1-1,25%. At the same time, it’s interesting to note that the actual decision matched expectations, both from the international expert community and financial markets.
Publication date: 20 June 05:12 AM

Why Did British People Punish Theresa May During Parliamentary Election?

During the recent parliamentary election in the UK, the British Conservatives failed to gain public support required to get the absolute majority in the British parliament. Now, the international expert community is discussing the reasons why Theresa May failed on her expectations.

 

 
Publication date: 20 June 03:09 AM

Why Does Trump Fail to Be a Good President?

As you probably know, the scandal around Donald Trump’s decision to fire FBI Director Comey is just one of the unpleasant incidents in his presidential career started in early 2017.

 

 
The truth of the matter is, after the investigation against Michael Flynn started, Donald Trump asked FBI Director Comey to let the investigation slide. While Director Comey didn’t dare object to President Trump openly, he didn’t do that. On the contrary, the investigation got even more intensive.
Publication date: 16 June 01:46 AM

Trump Accuses Qatar Of Financing Terrorists

Donald Trump thinks that Qatar has been involved in sponsoring terrorists in the Middle East. That said, the USA joined other nations accusing Qatar of this kind of financing. President Trump thinks that it’s time to put an end to this. However, he didn’t specify what exactly Qatar did to sponsor terrorists.

 
Publication date: 15 June 05:35 AM

Trump Is a Boomerang Russians Have Hit Themselves With

Experts say that Donald Trump is gradually turning into a boomerang launched by Russia, and the thing is, this boomerang is going to hit Russia, thereby disappointing the Kremlin instead of letting them. President Trump is turning from Russia’s hope into Russia’s disappointment.
 

 

The Kremlin celebrated Trump’s victory with champagne while today Vladimir Putin says he didn’t expect anything from Donald Trump as the next president of the United States. He moved to the White House 5 months ago, but none of his decisions was made in favor of Russia.
Publication date: 13 June 06:25 AM

Will Macron Become Anti-Trump?

 New French President Emmanuel Macron seems to be getting more popular both in France and outside. The 39-year-old President of France seems to have challenged his 70-year-old American peer.

 

 
Not so long ago, he made his TV speech in English. While some older representatives of the French people were indignant at this move since no other president in the history of France had ever dare do so, but the French youth seemed to like this.
Publication date: 12 June 01:52 AM

Google Reveals Near-Term Forecast

Google Technical Director Ray Kurzweil has revealed his forecast for the period until 2030. Previously, he also made similar prediction for the near future related to IT. Strange as it may see, most of his predictions did really become a reality. That’s why the international community has been closely watching his predictions over the last few years, even though sometimes it’s very difficult to believe that the future will be the same as he described in his forecast.

Publication date: 10 June 11:54 PM

25th Amendment Threatens Trump with Impeachment

President Trump is reported to have found himself in another unpleasant situation. To be more specific, just for revealing some top-secret information to Russian Foreign Minister Lavrov, he is now threatened with a possible impeachment. They say that the 25 amendment to the American constitution, this becomes a very likely scenario. In particular, this assumption was put forward by an advisor who used to work for George Bush Jr.

 

 
Publication date: 07 June 12:25 AM

Chinese IT Innovations as an Example for the Resto of the World

China seems to have been trying hard to revolutionize the Internet and entire IT industry through innovation. The international expert community has been seriously discussing the possibility of China setting a good example for the rest of the world when it comes to innovation.
 
Publication date: 05 June 06:04 AM