BUENOS AIRES: Like many Argentine businessmen, Marco Meloni is doing everything he can to avoid laying off staff at his textile factory despite a slump in sales, more than 70 percent interest rates and soaring utility bills.The reason? He doesn't have the money to fire anyone.A little-reported and unusual feature of the economic crisis gripping Latin America's third-largest economy is the absence of many workers losing their jobs.Small businesses, the biggest employer in Argentina, have been hardest hit by inflation that is nearly 48 percent, a tumbling peso, and major cuts to subsidies for public utilities that have sharply increased companies' operating costs. But the unemployment rate has barely budged from 9 percent.Reuters interviews with business owners in textile, plastic, clothing and paint industries, government officials and union leaders show that many firms are adopting different strategies to try to survive until the economy begins to recover, which the International … [Read more...] about In Argentina crisis, firms do everything to cut costs
08 economic crisis
Business Global insurance mergers and acquisitions rose to 37 billion euros in the first six months of 2018, with a host of mega deals resulting in the highest first-half total since the financial crisis, a report by Willis Towers Watson and Mergermarket showed. 31 Oct 2018 08:10AM Bookmark REUTERS: Global insurance mergers and acquisitions rose to 37 billion euros in the first six months of 2018, with a host of mega deals resulting in the highest first-half total since the financial crisis, a report by Willis Towers Watson and Mergermarket showed.The first half saw 14 insurance deals worth over 500 million euros (US$567.80 million), but total deal volume fell to 84 deals, the lowest number since 2009, the report showed.The report cited the changing nature of business models as a driver for deals, with regulatory pressures leading to new models and more firms trying to return to their core strategy. The report also said companies are divesting unwanted parts … [Read more...] about Global insurance first-half M&A value hits highest level since financial crisis
All eyes are on the Turkish lira. Its decline has been precipitous – it has already lost more than 40% of its value against the US dollar this year. For Turkey, which has relied on the inflow of foreign credit, this poses terrible risks. Enormous debt coupled with a vicious attack for political reasons on the Turkish economy by the US government has pushed Turkey toward the precipice. Will Turkey’s descent take Europe with it and then, certainly, other middle-income countries? Is this the harbinger of a new global financial crisis that would be far more dangerous than the one in 2007-08? The dailyReport Must-reads from across Asia - directly to your inbox Financial instability The credit crisis of 2007-08 has not really ended. The problems posed by the collapse of the US housing market and the subsequent debt problems in world banking have not been fixed. Sober recommendations from the Basel Committee on Banking Supervision as well as from the International … [Read more...] about Could Turkey trigger the next global financial crisis?
It is hard to believe that highly educated Western journalists, commentators and scholars still believe the Chinese economy will be “buried under a mountain of debt,” having been wrong for more than 30 years. Well-known economic scholars like Nobel laureate Paul Krugman seems to have bought into the “Chinese economic collapse” narrative, saying China’s “emperors wear no clothes” in reference to the country’s stock-market correction of losing more than a third of its value after a threefold gain in 2017. Then there were critics like Gordon Chang, who gained some dubious fame for predicting China’s “coming collapse” in 2011. The dailyReport Must-reads from across Asia - directly to your inbox Instead of collapsing, the Chinese economy has in fact sustained relatively high annual growth rates estimated at more than 6.5%, favorably compared with the West’s less than 2% according to the International … [Read more...] about Why critics predicting China’s economic demise are wrong
World Tunisia needs a national dialogue to end a deadlock over economic reforms in the same way it solved a political crisis in 2013 that almost tore apart the birthplace of the Arab spring, the head of the co-ruling Islamist party said. 26 Apr 2018 08:16PM Bookmark TUNIS: Tunisia needs a national dialogue to end a deadlock over economic reforms in the same way it solved a political crisis in 2013 that almost tore apart the birthplace of the Arab spring, the head of the co-ruling Islamist party said.Since an uprising that ousted autocrat Zine El-Abidine Ben Ali in 2011, Tunisia has a new constitution, free elections and a coalition government with secular and Islamist parties in a region otherwise struggling with upheaval.But the North African country has been grappling with an economic crisis and youth unemployment of about 30 percent as turmoil has deterred investors, surviving at the mercy of foreign donors.Rached Ghannouchi, head of the Ennahda party in power with … [Read more...] about Tunisia needs dialogue to solve economic crisis