Author name: moderat ereport

Economic News

Why We Teach International Trade and Foreign Direct Investment Together

Or, why should a bunch of ICE agents running amok in a Hyundai-LG factory have an impact on trade policy uncertainty? People tend to think of international trade and foreign direct investment as substitutes (one can import widgets into country A from country B, or alternatively a firm in Country B can build a new widget factory in Country A). That kind of makes sense in a world of differing goods, maybe without information asymmetries. However, when there are differentiated productions, supply chains, intellectual capital etc., it is perhaps more useful (especially in trade between advanced economies) to think of trade and FDI as complements (or FDI as technology transfer, as this was a chip manufacturing facility). In any case, see Chapter 6 of Chinn and Irwin (2025). So, here’re two trade policy uncertainty measures: Figure 1: EPU-Trade (blue, left scale), TPUD Caldara et al. (red, right scale). Source: policyuncertainty.com and Iacoviello. Given the impact of uncertainty on FDI (see e.g.  Jardet, Jude, Chinn, 2023), it’s no wonder FDI fell in Q1.      

Economic News

REVOLUTION – Youth Overthrows Nepal’s Government

Nepal’s Prime Minister Khadga Prasad Oli resigned immediately after massive youth protests swept the nation and led to deadly clashes with police that left over 20 dead. Anger over government corruption has been rising. Youth unemployment surpassed 20% and people aged 15 to 40 compose 43% of Nepal’s population. The final straw was a nationwide ban on social media imposed on September 4, 2025. The youth took to the streets to demand immediate change. https://www.armstrongeconomics.com/wp-content/uploads/2025/09/NepalFinanceMinisterBeaten.mp4 Nepal’s Finance Minister, Bishnu Paudel, was chased through the streets by an angry mob. Paudel was beaten, stripped naked, and paraded through the streets in his underwear. RT posted the above video shortly after the incident, although it is unverified whether or not the man in the video is Paudel. PM Oli’s residence in Bhaktapur was set on fire, as was the residence of President Ram Chandra Paudel. Spectators say that the youth were continuously throwing petrol bombs at the residences as they burned to the ground. Politicians are becoming increasingly concerned over the growing discontent sweeping the world as the cost of living continues to soar. When we examine what has occurred in Nepal, it is not an isolated, random event. Governments are collapsing worldwide due to economic instability. My models have been showing that confidence in governments is collapsing everywhere, from Europe to South America, and Nepal is simply another example of this global trend. Undeterred by police tear gas, rioters breached Nepal’s Parliament building and burned it to the ground. Kathmandu’s Tribhuvan International Airport came to a standstill. The destruction lasted for two days until Oli accepted defeat and allegedly fled the country. Over 90 people have been hospitalized for wounds related to clashes with the police who were far outnumbered by persons and sheer rage. Nepal has always been a buffer state caught between India and China. Every time we see economic decline, corruption, or outside meddling, the population eventually turns against the political class. The overthrow of the Nepalese government is simply part of this larger cycle of anti-establishment movements that will continue to spread. Governments fall when the people no longer believe in their competence to govern. It does not matter if the system is a monarchy, a democracy, or a dictatorship—the cycle remains the same. We are heading into 2032, the culmination of the Economic Confidence Model, which marks a period of rising civil unrest, political fragmentation, and the overthrow of governments globally. Nepal may seem small on the geopolitical map, but its fall is part of the domino effect. From Pakistan to Sri Lanka, from Latin America to Europe, the same pattern is unfolding. The loss of faith in government as an institution has become a worldwide phenomenon and the people are beginning to direct their anger at government rather than against one another.

Economic News

Get the latest global GDP growth forecasts via our daily tracker

Leer en Español Global economy to lose steam this year: The FocusEconomics World GDP Consensus Forecast—based on 3,500 individual projections for GDP growth across 198 countries—shows that the global economy is on track for its slowest growth since the Covid-19 slump of 2020 this year, dragged down by softer expansions in major players like Brazil, Canada, China, Mexico, Russia and the U.S. But the picture isn’t bleak everywhere—Africa and the Middle East are set to accelerate, powered by rising OPEC+ oil output quotas that are giving regional GDP a welcome boost.   Forecasts display U-shaped trend: As the graph below shows, our World GDP Consensus Forecast was slashed in the wake of Donald Trump’s announcement of reciprocal tariffs, but has since recovered somewhat. Economic activity in many parts of the world has proved more resilient than expected, higher tariffs in the U.S. are taking a while to filter through to prices, and the global AI boom is girding tech exports and investment.  G20 countries see divergent trend: The below graph shows the evolution of our 2025 GDP growth forecasts for select G20 countries over the last six months. Argentina has seen the largest upgrade, as the government’s aggressive reform agenda has borne fruit. China’s forecasts have also been upgraded—superficially surprising, given the country has been subjected to hefty new U.S. tariffs. Chinese economic activity has been boosted by record government bond issuance, strong global electronics demand, rapid electric-vehicle-sector growth, export frontloading and rerouting to avoid U.S. tariffs, and an expanded trade-in scheme that boosted household spending. At the other end of the spectrum are the economies of South Korea and Mexico, both of which are likely to suffer fallout from a more protectionist U.S.   Insight from our panelists:  On the outlook for the global economy, EIU analysts said: US trade protectionism is being met mostly with restraint in terms of retaliation, but deep policy uncertainty is moving the global economy into a worse equilibrium. The risk of policy missteps will be high in this environment of rapid change. Although we forecast that global short-term interest rates will continue to fall, the unpredictable application of US tariffs will make it difficult for central banks to decipher inflation trends. Under the second Trump administration, the US is working to rebalance its economic and security relations. The manner in which the agenda is being pursued, however, will strain traditional alliances and drive geopolitical and economic realignment. Conflict risk and geopolitical brinkmanship will be key features of the global landscape, contributing to high risk premia and sustaining the risk of commodity price shocks.  On U.S. trade policy, ING’s Carsten Brzeski said: “Trump is demanding that trading partners show him the money in the form of investment pledges or face astronomically high tariffs. […] It’s unclear whether investment aspects of trade talks will move beyond headline figures and vague commitments. Unlike tariffs, which are straightforward to enforce, investment pledges and purchase commitments are harder to monitor, especially since entities like the EU lack the authority to guarantee them, leaving delivery to corporations. Japan and South Korea’s promises are mainly in the form of loans. This raises questions about how the U.S. might respond if countries fall short. And even with a deal – and I’m looking at you, Switzerland – the tariff issue persists. For Trump, tariffs are a versatile tool, used well beyond trade balance concerns. We can only guess at the long-term implications of such economic power play. Disrupted supply chains, strained diplomatic ties, economic selfishness, and less efficient global trade are just a few things to come to mind.”  Our latest analysis:  Israel’s economy clocked a surprise contraction in Q2.  Japan’s exports worsened again in July.  The post Get the latest global GDP growth forecasts via our daily tracker appeared first on FocusEconomics.

Economic News

Market Talk – September 9, 2025

ASIA: The major Asian stock markets had a mixed day today: • NIKKEI 225 decreased 184.52 points or -0.42% to 43,459.29 • Shanghai decreased 19.548 points or -0.51% to 3,807.292 • Hang Seng increased 304.22 points or 1.19% to 25,938.13 • ASX 200 decreased 46.10 points or -0.52% to 8,803.50 • SENSEX increased 314.02 points or 0.39% to 81,101.32 • Nifty50 increased 95.45 points or 0.39% to 24,868.60 The major Asian currency markets had a mixed day today: • AUDUSD decreased 0.0009 or -0.14% to 0.65888 • NZDUSD decreased 0.00165 or -0.28% to 0.59282 • USDJPY decreased 0.038 or -0.03% to 147.335 • USDCNY increased 0.00003 or 0.00% to 7.12233 The above data was collected around 13:13 EST. Precious Metals: • Gold increased 8.48 USD/t oz. or 0.23% to 3,644.18 • Silver decreased 0.477 USD/t. oz. or -1.16% to 40.862 The above data was collected around 13:16 EST. EUROPE/EMEA: The major Europe stock markets had a mixed day today: • CAC 40 increased 14.55 points or 0.19% to 7,749.39 • FTSE 100 increased 21.09 points or 0.23% to 9,242.53 • DAX 30 decreased 88.68 points or -0.37% to 23,718.45 The major Europe currency markets had a mixed day today: • EURUSD decreased 0.00486 or -0.41% to 1.17197 • GBPUSD decreased 0.00167 or -0.12% to 1.35357 • USDCHF increased 0.00418 or 0.53% to 0.79700 The above data was collected around 13:25 EST. US/AMERICAS: US Market Closings: Dow advanced by 196.39 points (+0.43%) to 45,711.34 S&P 500 advanced by 17.46 points (+0.27%) to 6,512.61 NASDAQ advanced by 80.79 points (+0.37%) to 21,879.49 Russell 2000 declined by 13.07 points (-0.55%) to 2,381.82 Canada Market Closings: TSX Composite advanced by 35.28 points (+0.12%) to 29,063.01 TSX 60 advanced by 2.07 points (+0.12%) to 1,720.48 Brazil Market Closing: Bovespa declined by 173.29 points (-0.12%) to 141,618.29 ENERGY: The oil markets had a mixed day today: • Crude Oil increased 0.672 USD/BBL or 1.08% to 62.932 • Brent increased 0.644 USD/BBL or 0.98% to 66.664 • Natural gas decreased 0.0106 USD/MMBtu or -0.34% to 3.0794 • Gasoline increased 0.0367 USD/GAL or 1.87% to 1.9971 • Heating oil increased 0.0175 USD/GAL or 0.76% to 2.3294 The above data was collected around 13:28 EST. • Top commodity gainers: Gasoline (1.87%), Orange Juice (5.15%), Sugar (1.31%) and Cocoa (1.75%) • Top commodity losers: Feeder Cattle (-2.61%), Live Cattle (-2.42%), Platinum (-1.42%) and Coffee (-1.71%) The above data was collected around 13:34 EST. BONDS: Japan 1.5650% (-0.3bp), US 2’s 3.54% (+0.045%), US 10’s 4.0720% (+2.9bps); US 30’s 4.71 (+0.020%), Bunds 2.6549% (+1.62bp), France 3.4680% (-0.5bp), Italy 3.505% (+0.67bp), Turkey 32.86% (+220bp), Greece 3.352% (+1.9bp), Portugal 3.079% (+1.2bp); Spain 3.239% (+0.8bp) and UK Gilts 4.6250% (+1.63bp) The above data was collected around 13:40 EST.

Factcheck.org

RFK Jr. Cherry-Picks and Misuses Data on Aluminum-Containing Vaccines

A large Danish study recently provided reassurance that aluminum-containing vaccines are not associated with increased rates of chronic health conditions in children, including autism. But Health and Human Services Secretary Robert F. Kennedy Jr. misrepresented the study’s findings, claiming that the paper’s supplementary data “shows calamitous evidence of harm.” The study, published on July 15 in Annals of Internal Medicine, drew attention because of its large size and rigorous methods. Anti-vaccine activists, however, quickly seized on it to claim that it was flawed, particularly after the journal mistakenly uploaded an earlier version of the supplementary data. Kennedy declared in an X post last month that the authors used a “long parade of statistical artifices” to “achieve their deceptive results,” incorrectly alleging that the study actually showed an association between vaccines and autism. He linked to an article with his byline on TrialSiteNews, which consisted of a list of criticisms of the study peppered with unfounded accusations on the researchers’ motives. It called for the journal to “immediately retract this badly flawed study.” The journal, however, defended the study. Dr. Christine Laine, the editor-in-chief of Annals, wrote in an editor’s response that the journal found the study “to be among the strongest research currently available” on the subject and that there was no basis for retraction. Small amounts of aluminum are used in some vaccines as adjuvants that boost the immune response and make vaccines more effective. Among those that contain aluminum are vaccines that protect against hepatitis A and B, HPV, and diphtheria and tetanus. There is no aluminum in the measles, mumps and rubella vaccine, which has been subject to unfounded claims about autism in the past. Aluminum has been used as a vaccine adjuvant since the 1920s. The quantities of aluminum in vaccines represent an “extremely low risk to infants,” researchers from the U.S. Food and Drug Administration have concluded. Despite this, aluminum has long been a target of anti-vaccine groups. In the case of the Danish aluminum study, Kennedy dismissed the results of the paper’s main analysis. It found no relationship between aluminum exposure from vaccines and an elevated risk of dozens of conditions, including autism. Instead, he zeroed in on results on autism in two of the paper’s 15 supplementary figures and tables, which he claimed on X were “a devastating indictment of aluminum-containing vaccines directly contradicting the published study’s conclusions.”  As we will explain, Kennedy’s interpretation of these figures is unwarranted. For one, statisticians know that if a paper makes a large number of comparisons, some results are expected to be statistically significant by chance alone. It is inappropriate to focus on a single result or subset of results while ignoring their context. Kennedy “is doing extreme cherry-picking of the results he likes and ignoring and dismissing all of the results he doesn’t like,” Jeffrey S. Morris, director of the division of biostatistics at the University of Pennsylvania’s Perelman School of Medicine, told us. For another, Kennedy highlighted an analysis that the authors of the paper and other experts said should not be used to determine whether aluminum in vaccines causes health conditions. “In short, Kennedy is cherry-picking a fragile secondary analysis that is explicitly disclaimed by the study’s authors and misrepresenting it as a refutation of the main findings,” vaccinologist Helen Petousis-Harris of the University of Auckland told us in an email. “It’s a classic misuse of supplementary data.” She called the supplementary results Kennedy highlighted a “statistical blip, not a bombshell.” Anders Hviid, head of the epidemiology research department at the Statens Serum Institut in Denmark, agreed that Kennedy’s interpretation of his team’s study amounted to cherry-picking. “Our results showed that increasing exposure to aluminum from vaccines was not associated with increasing risks of a wide range of early childhood health conditions in Denmark,” he told us in an email. Kennedy’s statements followed a pattern familiar to those who have tracked the secretary’s history of unfounded claims on vaccines and autism. Historically, Kennedy has ignored or attempted to discredit well-done scientific studies that have failed to show a link between autism and vaccination. His criticisms are often accompanied by inflammatory language and unfounded claims about researchers’ motivations. At the same time, he has zeroed in on results that he claims show an association, elevating flawed studies and highlighting decades-old unpublished statistics that weren’t borne out by later analysis. HHS did not reply to a request for comment. ‘The Cherry-Pick of All Cherry-Picks‘ Denmark’s universal, publicly funded health care system and detailed record-keeping allow researchers to study the relationship between medical care and health outcomes. Hviid and his colleagues analyzed vaccination and health data on more than 1.2 million children who were born in the country over the course of around two decades. As the Danish vaccine schedule changed over time, the amount of aluminum in recommended vaccines also changed, allowing the researchers to assess whether each additional milligram of aluminum exposure had any relationship to chronic disease. Photo by lavizzara / stock.adobe.com In their primary analysis, the researchers found no link between the amount of aluminum the children received via vaccination and elevated rates of 50 chronic conditions. These conditions included asthma and allergic diseases, autoimmune diseases, and neurodevelopmental conditions. This last group of conditions included attention-deficit/hyperactivity disorder and five autism-related diagnoses. “The main findings, based on solid methods and all the data, showed no increased risk,” Petousis-Harris said (emphasis is hers). Rather than highlighting these reassuring results, Kennedy focused on a supplemental figure showing a barely statistically significant increase in one autism-related diagnosis in a single set of children. “The data show a statistically significant 67% increased risk of Asperger’s syndrome per 1 mg increase in aluminum exposure among children born between 2007 and 2018,” Kennedy wrote on X. (In the U.S., Asperger’s syndrome is no longer a specific diagnosis. The condition was folded into the autism spectrum disorder diagnosis in 2013 in the fifth edition of the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders.) “That is the cherry-pick of all cherry-picks,” Morris said.  The figure was part of a series of analyses meant to look at the data in various ways and see if the primary results held up — and hold up they did, in almost

Scroll to Top