October 16th – The BESA Times
Forty-Second Edition - Monday, 16th
Every week, a complete snapshot of what happened around the world in the past seven days
After a meeting with Sheryl Sandberg, Facebook’s chief operating officer, the US Congress set out its plans to publish Facebook advertisements purchased by suspicious Russian users. The US authorities suspect Russia of trying to influence the American presidential election in favor of Donald Trump. "It is important that the congressmen get the full picture, and then will show it to the American people", said Ms. Sandberg. While being accused of slow cooperation, the company said it would continue to work with investigators and promised to provide all the necessary information.
Catalan president Carles Puigdemont asked parliament to suspend the region’s declaration of independence and said he would seek dialogue with Spain. In the meantime, Spanish Prime Minister Mariano Rajoy gave the Catalan government an eight-day ultimatum to cancel its independence plans, saying that the Madrid government would impose direct rule on the region if its authorities failed to comply. Markets are preparing for the worst-case scenario with the Spanish stock market index IBEX 35 (six companies included in it are based in Catalonia) closing down 0.92 on Tuesday.
Over the past week, investors have poured a record $ 6.6 billion in global equity funds in an effort to increase diversification and earn on the growth of global markets. Representative of EPFR Global commented: ‘’Investors are responding to the stability Chinese regulators have pursued ahead of the major policy meeting, as well as improving corporate earnings and the expectation that capital controls will drive the domestic money into Chinese equities.’’ Despite an unstable economic landscape, the global economy is experiencing the strongest upturn in five years.
What to remember of last week's news?
The US Embassy in Ankara announced that it would suspend most visa approvals in all its diplomatic missions in Turkey. Earlier, an employee of the US Consulate General was arrested in Istanbul on suspicion of having links with US-based preacher and politician Fetullah Gülen, whom the Turkish authorities suspect of organizing the 2016 attempted coup. Turkey has taken similar measures towards all non-immigrant visas for US citizens.
Last Friday, German chemicals group BASF announced the biggest acquisition in its history with the purchase of a significant part of seed and non-selective herbicide business from its competitor Bayer for €5.9bn. The deal will allow Bayer to proceed with its $66 billion acquisition of agricultural biotechnology corporation Monsanto and will allow BASF to increase its presence in the Americas.
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A Week in the Financial Markets
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Did you know?
The Nobel Prize in Economics 2017 was awarded to the pioneer of behavioral economics Richard Thaler. The 72-year old professor currently teaches behavioral economics at the University of Chicago. His “nudge” theory (a nudge is an action, which makes it easier for you to make the best decision) influenced governments and policymakers all around the world. His findings explain the inability of many people to get engaged in financial planning and saving for the future. Thaler’s studies aimed to push individuals to make optimal choices dictated by reason, rather than feelings or short-term temptations.
What to expect for next week
The Austrian general election of 2017 took place on Sunday 15 October. The frontrunner of this year campaign was conservative People's Party (ÖVP) leader and the current Foreign Minister Sebastian Kurz, who is just 31. His party favors a more restrictive immigration policy and tax cuts. The winner will be asked to form the new government, which in Austria is traditionally a coalition with one of the other parties. Two potential partners with enough seats to build a parliamentary majority are the far-right Freedom Party (FPÖ) and the Social Democratic Party (SPÖ).
WRITTEN BY VLADISLAVA KOLESNIKOVA
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