Have U.S. tariffs on Steel and Aluminium imports really increased domestic production?

We wrote about the economics behind the 25% tariff on Steel imports and 10% tariff on Aluminium imports to the United States earlier this year. One of the main justifications of the tariffs were that they will increase domestic production. Some statistics released earlier this week provide an answer to whether the tariffs have really increased domestic production.

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Technology Companies granted an astonishing amount of Restricted Stock Units by value in 2017 (and banks were left way behind)

Restricted Stock Units (RSU) are company stock (or shares by another name) granted to employees as a form of compensation. Employers save some tax, and it generally aligns the long-term interest of employees (and shareholders) as it normally carries a vesting period. 2017 was great for technology company share prices and technology companies granted an eye-watering amount of Restricted Stock Units by value leaving banks way behind …

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The four balance sheet vulnerabilities that are the biggest danger to financial stability as per the IMF

The International Monetary Fund (IMF) published one of its most comprehensive studies of the state of banking and markets since the financial crisis titled, “Global Financial Stability Report – A Decade after the Global Financial Crisis: Are We Safer?” The October 2018 Global Financial Stability Report finds that global near-term risks to financial stability have increased somewhat, reflecting mounting pressures in emerging market economies and escalating trade tensions.

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Germany accounts for almost all the intra European Union current account surplus plus the European Union posts a record external current account surplus with the U.S.

Sixteen members of the European Union recorded current account surpluses, eleven current account deficits and one was in current account balance in the second quarter of 2018 for the total (intra-EU plus extra-EU) current account balances of the European Union (EU28) Member States.

The highest surpluses were observed in Germany (+€63.8 bn), the Netherlands (+€16.8 bn), Italy (+€10.5 bn), Ireland (+€10.2 bn) and Denmark (+€3.6), and the largest deficits in the United Kingdom (-€20.7 bn), Romania (-€2.6 bn) and Belgium (-€2.4 bn).

EU current account balance member states Q2 2018
Source: Eurostat

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The Bank of England Balance sheet has been expanding rather quickly recently

Mark Carney, the Governor of the Bank of England gave a speech on Guidance, Contingencies and Brexit at the Society of Professional Economists on the 24th May 2018. Essentially, the speech said the Bank was well prepared for any “potential path” of Brexit. What it didn’t mention was the rapidly expanding balance sheet.

Bank of England Balance Sheet October 2018
Data Source: Bank of England

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