26 August 2019 FT — Articles to Read

26 August 2019


Question: According to MSN: Money, how much is a starter home in Pennsylvania?


EU looks to rewrite budget rules as bloc’s economic growth falters – Pg. 1

  • Brussels is planning to simplify the eurozone’s complex budgetary rules to give governments softer debt reduction targets that do not push struggling economies into trouble during downturns
  • The debate comes as Eurozone economies are experiencing slowing growth and Germany, the block’s powerhouse, faces the threat of recession this year
  • One of the main ideas is to rethink debt targets to allow for “reasonable and sustainable debt reduction for the most vulnerable economies”
  • Currently, economies with excessive deficits have to reduce their debt burdens by 1/20th a year over three years to move towards a 60% debt-to-GDP target
  • …the target is impossible for most governments to meet if their economies are slowing with little inflation


Biggest cities start to shrink as inner areas empty out – Pg. 3

  • …Paris is not alone. NYC shed a net 39,500 in 2018 and 37,700 the year before, reversing the previous upward trend
  • …the net movement of people out of London totaled more than 100,000 in the year to June 2018


Defaults on China structured loans mount – Pg. 8

  • Starting in 2015, China’s asset management industry became a booming centre for “shadow finance”, lending outside the formal banking sectdor
  • Banks, securities houses and trust companies were able to raise cash from wealthy investors and structure lending products through accounts at asset management companies
  • Most defaults on such products do not require public disclosure because they are nto publicly traded securities


Answer: $79,600