28 August 2018 FT — Articles to Read

28 August 2018


Question: According to CNBC, what are four (4) things extreme savers refuse to spend money on?


US and Mexico in breakthrough on restructured trade agreement – Pg. 1

–          The US and Mexico have reached a breakthrough in efforts to revamp the Nafta trade agreement, potentially ending an acrimonious impasse in relations between the countries since Donald Trump took office

–          It was unclear whether Canada…would sign up to the deal

–          The two sides agreed to stricter rules for Mexican car exports to the US, including requirements that 75% of the content be made in North America, and that 40 – 45% of the content be made with workers earning at least $16/hour – a measure aimed at discouraging manufacturers from relocating to Mexico

–          The deal keeps tariff-free trade for farm products, but with new measures on health standards


European Economy – Running out of steam – Pg. 7

–          Yet the labour shortages rippling through central Europe are the result of demographic decline and economic success.  Having peaked in the late 1990s, the region’s population is now shrinking, wizened by emigration and tumbling birth rates

–          ..the combined population of Poland, Hungary, the Czech Republic and Slovakia – known as the Visegrad Four, or V4 – will fall from about 64m in 2017 to just 55.6m by 2050, or about 13%

–          …economies are set to expand by around 4% this year


Higher yielding trades hit by macro pain – Pg. 18

–          …four key areas: Emerging market local currency denominated debt, Eurozone bank shares, high-yield corporate paper and Italian government bonds….

–          …dominant market trend is the surging US dollar and an increasing sense that, in growth and interest rates policy terms, the US is moving ahead of other countries

–          ..US equities have recovered from February’s volatility shock with the S&P 500 back in record territory

–          The divergence in economic outlook between US and other countries has injected greater discernment into the market – European and Asian junk bond indices have suffered while the US is up 1.7% on the year


Answer: (1) Excess living space; (2) Lunch and dinner everyday; (3) Things that aren’t important to them; (4) Excessive car payments