Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
World Bank Wednesday – Global GDP Outlook Cut By 10% (Phil Davis, Phil's Stock World) The World bank just downgraded the estimate for global GDP for 2015 to 3%, down from the previous estimate of 3.4% seven months ago. This new report dampens any enthusiasm for an output boost from lower oil prices. Rather than a stimulus, lower oil prices seem rather to be a reflection of lack of economic activity. Risks to the global recovery are significantly "tilted to the downside".
Phil has a number of investment strategy suggestions (with specific tickers).
BlackBerry bats away Samsung purchase report (Reuters - with CNBC video) Hat tip to Marvin Clark. It is reported that Samsung (OTC:SSNLF) has approached Blackberry (NASDAQ:BBRY) with an offer as high as $7.5 billion. Blackberry refused to comment on the reports while the market was still open. Blackberry stock traded up almost 30% to $12.60 at the market close and continued briefly to reach $13 in early after-hours trading. Passions have cooled since as Blackberry eventually did issues a statement denying negotiations were underway. At 5:45 pm the after-hours price was down to $10.80 and by 6:20 pm to $10.52.
Tomgram: Ann Jones, Answering for America (Ann Jones, Tom Dispatch) Hat tip to Chuck Spinney who writes:
Food for thought. Since 9-11, the United States has been violating all five criteria for a sensible grand strategy. Left unchecked, it will eventually generate the mother of blow backs. Ann Jones has written a personal vignette to goes to the heart of our growing grand strategic crisis on a deeply personal level — most of it has to do with dysfunction at home.
Ann Jones describes how she, as an American living abroad, is constantly asked to explain and justify the "behavior of our rebranded “homeland,” now conspicuously in decline and increasingly out of step with the rest of the world". This is a troubling expose of how the rest of the world sees America, told by an American who has to interact with those perceptions on a daily basis. Her summary:
Europeans understand, as it seems Americans do not, the intimate connection between a country’s domestic and foreign policies. They often trace America’s reckless conduct abroad to its refusal to put its own house in order. They’ve watched the United States unravel its flimsy safety net, fail to replace its decaying infrastructure, disempower most of its organized labor, diminish its schools, bring its national legislature to a standstill, and create the greatest degree of economic and social inequality in almost a century. They understand why Americans, who have ever less personal security and next to no social welfare system, are becoming more anxious and fearful. They understand as well why so many Americans have lost trust in a government that has done so little new for them over the past three decades or more, except for Obama’s endlessly embattled health care effort, which seems to most Europeans a pathetically modest proposal.
Articles about events, conflicts and disease around the world
AirAsia Flight 8501
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