Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
The U.S. Economy May Not Support World Growth (Chief Executive) The World Bank estimates that the U.S. accounted for nearly 23% of global growth last year, its highest contribution since 2003. In 2016, the Bank predicted, the U.S. is expected to contribute a "still-strong" 21% of such growth. U.S. consumer spending adjusted for inflation increased by 3.1% last year, the fastest annual increase since 2005, and a recovering job market, coupled with low energy prices, is bolstering consumers' spending power, the Journal said. Sputtering global growth, fueled by the collapse of commodity prices, China's economic slowdown, and other factors, has many nations hoping to piggyback on the U.S. economy to bolster their own. However, the U.S. may not have sufficient strength to get the job done.
JPMorgan, Citi shareholders to vote on potential breakup plans (Reuters) Shareholders of JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N) will get to vote on whether their banks should consider breaking into smaller pieces. Citigroup included the question in a proxy statement it filed on Wednesday for its annual meeting next month, and the shareholder sponsoring that proposal said he has a similar one slated for the upcoming ballot for JPMorgan's annual meeting. The shareholder, Bart Naylor, said he hopes the proposals get more votes than the 4 percent he got for a measure last year that called for Bank of America Corp (BAC.N) to break up. The Citigroup and JPMorgan proposals "are more deferential to the boards in asking them to study the vicissitudes of a breakup", Naylor said in an interview. He hopes proxy advisory firms, which often sway one-third of votes with their recommendations to institutional investors, will back studies by directors even if they won't tell directors to break up the banks.
Turkey Presses for EU Concessions as Price for Refugee Halt (Bloomberg) Turkey wants three things in return for stopping the transit of refugees from the Middle East to the European Union: money, a quicker path toward joining the EU, and the no-questions-asked right of Turks to travel to Europe. The first is no problem, the second a bit trickier. The hardest to deliver, for a 28-nation bloc beset by fears of terrorism and anti-foreigner demagoguery, is visa-free entry for 78 million Turks as of July. EU leaders meet Thursday to hash out an offer.
Under the Hood of Japan Trade Data Are Weak Exports to U.S. (Bloomberg) Exports to the U.S., which for most of last year were a bright spot amid slowing demand from China, were almost flat in value terms over the past several months as the yen strengthened against the dollar. Overall, the outlook for Japanese exports is getting more gloomy.
Here comes the modern Chinese consumer (McKinsey) Despite concerns about economic growth, the country's consumers keep spending. Yet McKinsey's latest survey reveals changes in what they're buying and how they're buying it.
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