February 4th – The BESA Times
Sixty-Third Edition - Monday, 4th Every week, a complete snapshot of what happened around the world in the past seven days
This week Theresa May will return to Brussels to discuss new approaches concerning certain aspects of the current Brexit Deal. However, just before traveling to Brussels, she has been warned by British Eurosceptics that her “diplomatic approach” will not achieve any progress. Furthermore, EU representatives (including Donald Tusk) have already claimed that they will not engage in any further negotiations concerning the change of the current deal. The main concern is that there will be a strong border to the Republic of Ireland and that the North Ireland Conflict will return. Additionally, the industry has given further warning signs concerning Brexit. Nissan announced the cancellation of the production of a new model at its Sunderland plant. Greg Clark, business secretary, interpreted it as a “warning sign” of what could happen to the British car industry in a Post-Brexit scenario.
Venezuela`s Maduro has caused the biggest demonstrations in years, including demonstrations against and in support of Maduro. He is considered a socialist dictator, who is trying to cling on to control of Venezuela. His competitor is the head of the opposition-controlled National Assembly, Juan Guaidó. He declared himself the interim Head of State earlier this month. Around 20 countries, including the US, have recognized him as the legitimate leader. Many demonstrators want that Juan Guaidó will substitute Maduro. For that reason, demonstrators have been asking for early presidential elections. As a result, Maduro has now claimed that there will be early parliamentary elections. Additionally, a high-ranking air force general started to rebel against Maduro and to back Juan Guaidó. The opposition, although unsuccessfully, has been trying to convince the military into abandoning Maduro.
Growth concerns have intensified last week after Amazon released its sales forecast for the first quarter, which was lower than expected. The main reason is the government shutdown, which has only been solved temporarily. Good news were that the FED released a statement that it will be “patient” concerning future interest rate hikes and that trade talks between the US and China continue, even though no progress has been published. Italian Assets were also affected by increasing growth concerns and experienced a sell-off. A survey on Italian manufacturing showed a significant decline, indicating a recession.
Did you know:
Due to poverty and marginalization, around 72 million children around the world remain unschooled. Furthermore, nearly 759 million adults are illiterate. The main reason why children do not receive access to primary education is poverty. Factors linked to poverty multiply the risk of non-schooling by roughly two. Added to that, educational inequalities often result from inequalities originating in sex, health and cultural identity. The main regions with significant percentages of non-schooling are emerging countries. This is often a result of insufficient financial resources to higher teaching staff and to acquire teaching facilities. However, philanthropic institutions like the Bill & Melinda Gates Foundation put strong efforts into ensuring a universal right for education.
What to expect from the coming week:
In the coming week we will keep you updated about any progress concerning Brexit. Furthermore, all eyes will be on the Bank of England`s meeting on interest rates. Related to that topic, EU forecasts will give more insights on the slowing of the EU Economy. Additionally, the Markets will closely watch Alphabet (the parent company of Google) release its most recent financial statement.
WRITTEN BY @SIMON SCHOENHERR PLEASE DIRECT ANY INQUIRY TO AS.BESA@UNIBOCCONI.IT
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