Pioneer Columbus Day! Italian pioneer, Christopher Columbus ‘discovered’ America on 12 Oct 1492 while heading for the gold & spices of the Far East. His trips trading people, animals & food between Europe & America spread diseases – smallpox, measles, influenza – which decimated indigenous people, who had no immunity to them. Travel & trade…
Tag: trade
Plague How to trade during plague? See past precedents. Plague stone receptacles at parish & quarantine boundaries sterilised coins in vinegar, in exchange for goods. 1348-50 Black Death took 1/3 of Englanders. 1665-66 Great Plague killed 100,000 Londoners (1/4 of the city). Then & now: Panic buyers welcome! But disinfect before entry Guessed the Word? …
Hedge funds Hedge fund fees pour out of the sky during market-beating alpha returns which averaged 18.3% pa in 1990s, 6.4% in 2000s, 3.4% pa since 2010. But buoyant markets now mask outflows to keep their global size constant at £2.3tn ($3tn, €2.7tn). In 2018, 580 funds out of 11,000 closed, outnumbering launches for a…
Invisible hand 1776 economics milestone: Adam Smith’s Wealth of Nations. Free markets ‘led by an invisible hand’ benefit all, not just the butcher, brewer or baker seeking profit. No other idea in history has done more to raise global prosperity. His pin factory study showed division-of-labour specialisation & productivity motivates trade. The ‘invisible hand’ is…
Temporary tax How long can a temporary tax last? USA’s 1964 “chicken tax”, to retaliate for French & German tariffs, prevents light-duty truck imports even today. UK’s 1799 temporary income tax to raise money to fight Napoleon’s French forces is still in force 200 years on. Temporary taxes & tariffs can go on forever Guessed…
Rivers Settlements have risen by rivers from earliest times. In 50 AD, the Romans built Londinium near Walbrook, where the Thames was still tidal. By the 18th c, their wharves & 1st London Bridge enabled trade within Britain & around the globe, & made London the world’s busiest port. The river’s economic, leisure & inspiration…
Tariff war What happens to the global economy if the tariff war escalates? The tide going out lowers all boats. Higher import costs drive up inflation, squeeze buying power & drag down consumption. Firms respond to lower demand & earnings by cutting investment & jobs, which worsens the downturn. Tariffs sound good, but are actually…
Apart World economies growing apart. GDP growth 2007 to 2018: US 17.1%, Europe 11.6%, Japan 6.7%. But US outperformed mostly due to problems elsewhere. What next? US lose momentum? Or rest of the world catch up? Will affect financial markets, trade wars, currencies, politics. What should investors do short-term & long-term? Guessed the Word? Series 37 (1/7) …
Rival Pincered by a rival: US lobsters face 8% tariff, but Canada lobsters get into Europe duty-free. A Maine lobster lands on a Beijing dinner plate in 2 days, via Canada – avoiding China’s 25% tariff on US live lobsters from 6 July. Until 1800’s, lobster was low-class food, eaten only by the poor. 2017 US live…
Tradewind Tradewind blowing! Tech is disrupting the model of seaborne trade that’s ruled for decadesExamples: Automated hydroponic indoor farms grow summer crops year-round; 3D printers churn out jet engine parts on demand anywhere. Trade agreements now have as much to do with data flows as physical goods Guessed the Word? Series 36…