24 July 2019 FT — Articles to Read

24 July 2019


Question: According to MSN: Money, what is the #1 top ranked college that pays off the least?

IMF warns over no-deal Brexit as Johnson wins race for UK leader – Pg. 1

  • A no-deal Brexit is one of the greatest threats to the world economy, the IMF warned yesterday, as the man most likely to take the UK out of the EU without a deal won the race to become Britain’s new prime minister today
  • The IMF’s latest assessment of the outlook for global growth was more pessimistic than previously on prospects for this year and next, forecasting that global growth would slow to 3.2% in 2019 – the weakest rate of expansion for a decade – before picking up to 3.5% in 2020. It listed a no-deal Brexit, alongside US trade policy, as one of the main events that could throw the global economy off course


Germany turns to short-time work as mood darkens – Pg. 3

  • The country is in its tenth straight year of economic growth, with unemployment close to a record post-reunification low. But the US-China trade war, fears of a no-deal Brexit and the cooling of the Chinese auto market are taking a big toll on the export-oriented Germany economy
  • The country’s weakness is overshadowing the whole of the Eurozone, and could prompt the ECB to take fresh measures to support the currency area’s economy
  • The advantage of short-time work is clear: under German law, the government will cover most of the shortfall in worker’s wages if his employer has been forced to cut hours due to an economic downturn. The policy was first introduced in the wake of the 2008 financial crisis to prevent mass lay-offs
  • …economic think-tank last week said there was a 36.6% risk of a recession in Germany in the next three months – up from 30.9% in June and twice as high as in July last year


EM growth sputters to decade low in IMF forecasts – Pg. 19

  • Emerging market economic growth will fall ot its weakest level since the height of the global financial crisis this year, …in a big cut to its forecast
  • Full-year EM-wide growth is projected to come in at 4.1%, a decade low and the second-weakest figure since the dotcom bust of 2002, rather than the 4.4% the IMF penciled in as recently as April
  • The gloomy forecast comes amid rising concerns about the future of globalized supply chains and weakening productivity in the developing world, which are calling into question the logic for investing in emerging economies


Answer: Bennington College