EU corruption fight passes to civil society and media

2017 ◽  
Keyword(s):  
Interest Groups ◽  
The Political ◽  
Fake News ◽  
Checks And Balances ◽  
Content Type ◽  
Long Run ◽  
The Us ◽  
The Media ◽  
Roll Back ◽  
The Eu

Subject The non-appearance of an expected EU anti-corruption report. Significance The European Commission’s cancellation of its second report on anti-corruption efforts across member-states and EU institutions removes a key benchmark against which to hold European governments to account at a time when several are attempting to roll back anti-corruption reforms and disable checks and balances. Given the political sensitivity of the first report, the move also feeds populist criticisms that the EU itself is prone to corruption and unwilling to expose itself to scrutiny. Impacts Populist governments appear to be learning from one another that they can remove limits on their power. This will allow interest groups to entrench their political and economic dominance, hindering economic growth in the long run. The US president’s attacks on parts of the media for ‘fake news’ may encourage use of anti-establishment rhetoric to discredit critics.

EU-US TTIP talks are unlikely to progress

2016 ◽  
Keyword(s):  
United States ◽  
Trade Agreements ◽  
The United States ◽  
The Political ◽  
Content Type ◽  
Transatlantic Trade ◽  
The Us ◽  
Trade And Investment ◽  
The Eu ◽  
Public Opposition

Subject The prospects for finalising TTIP. Significance While the EU as a whole -- the European Commission, most member states and a majority of members of the European Parliament (EP) -- appears to remain committed to a wide-ranging agreement with the United States, there are growing indications that public opposition may render the proposed Transatlantic Trade and Investment Partnership (TTIP) agreement politically unviable. Impacts TTIP is estimated to raise the EU's GDP by 0.5%. European governments may decide that such a modest growth boost is not worth the political problems generated by the negotiations. If implemented, its terms could serve as a blueprint for future trade agreements between the EU and other countries. The deal's prospects will be diminished by the US election cycle's appeals to protectionist sentiment.

The EU will ramp up efforts to counter China’s BRI

2021 ◽  
Keyword(s):  
Climate Change ◽  
European Commission ◽  
Rule Of Law ◽  
High Impact ◽  
The Political ◽  
Political Will ◽  
Content Type ◽  
The Us ◽  
Tackle Climate Change ◽  
The Eu

Significance Member states have asked the European Commission to spend the next nine months developing a plan containing “high impact and visible projects” to rival the BRI. While EU efforts to counter the BRI are not new, the political will has never been as strong as it is now. Impacts China will seek to make the BRI more attractive, such as by launching more initiatives to tackle climate change. Europe will remain distant from the US position on China, unless Germany gets a Green chancellor or Macron loses the 2022 election. The deterioration of the EU's relations with Hungary and Poland over rule-of-law issues could push those countries closer to China.

scholarly journals Value versus growth in PIIGS stock markets

2018 ◽  
Vol 45 (5) ◽  
pp. 956-978 ◽  
Author(s):  
Maria Teresa Medeiros Garcia ◽  
Ricardo António Abreu Oliveira
Keyword(s):  
Asset Pricing ◽  
Design Methodology ◽  
Research Evidence ◽  
Content Type ◽  
Value Stocks ◽  
Long Run ◽  
The Us ◽  
Growth Stocks ◽  
Pricing Anomaly ◽  
The Eu

Purpose The purpose of this paper is to construct and evaluate value and growth portfolios in Portugal, Italy, Ireland, Greece and Spain, which are commonly known as the EU PIIGS, from 2003 to 2015. Previous research evidence suggests that stocks trading at a lower price relative to their fundamentals (value stocks) tend to outperform stocks that trade at higher prices (growth stocks) in the long run. Although this market anomaly has been studied immensely worldwide, especially for the US stock market, there is no clear evidence whether such an assertion is applicable in less-renowned countries. Design/methodology/approach The paper utilises Fama and Macbeth (1973) regressions and its model extensions. Findings This paper finds a significant value premium in these countries, which is compatible with previous studies conducted worldwide. Originality/value To the best of the authors’ knowledge, this is the first attempt to examine this asset pricing anomaly in the PIIGS.

UK focus on Russian Twitter activity will increase

2017 ◽  
Keyword(s):  
Internet Research ◽  
Fake News ◽  
Content Type ◽  
Us Congress ◽  
The Us ◽  
Public Pressure ◽  
Eu Referendum ◽  
Twitter Activity ◽  
Robust Response ◽  
The Eu

Subject Studies of Russian Twitter activity during the Brexit vote. Significance After Twitter disclosed to the US Congress a list of accounts linked to the St Petersburg-based Internet Research Agency, accused of posting pro-Kremlin messages, UK researchers have found a similar trail of social media activity around the June 2016 EU referendum. Impacts UK public pressure for a robust response may increase after warnings about attempted hacking of energy, telecoms and media infrastructure. Suggestions that Russian interference skewed the EU referendum result will add another element of complexity to the Brexit debate. The presence of fake news and bots on Twitter may erode users' trust in the platform.

The international strength of the euro will grow

2021 ◽  
Keyword(s):  
Euro Area ◽  
Financial Services ◽  
Raw Materials ◽  
Domestic Demand ◽  
Content Type ◽  
The Us ◽  
Us Dollar ◽  
Strategic Autonomy ◽  
Geopolitical Risks ◽  
The Eu

Significance The proposals identified areas where the euro could potentially become more dominant, such as the issuance of green bonds, digital currencies, and international trade in raw materials and energy. Ambitions to enhance the international leverage of the euro are being driven by the aim to strengthen EU strategic autonomy amid rising geopolitical risks. Impacts Developing its digital finance sector would be an opportunity for the EU to enhance its strategic autonomy in financial services. Challenging the US dollar would require the euro-area to rebalance its economy away from foreign to domestic demand. Member state division will prevent the economic reconfiguration the euro-area needed to make the euro a truly global currency.

Biopesticide Summit – Regulatory Reform of Biopesticides, Virtual Conference, 6th July 2021

2021 ◽  
Vol 32 (4) ◽  
pp. 168-170
Author(s):  
Robin Blake
Keyword(s):  
Market Share ◽  
Regulatory System ◽  
Regulatory Reform ◽  
Non Profit ◽  
The Us ◽  
The Media ◽  
Virtual Conference ◽  
The Uk ◽  
Chemical Pesticides ◽  
The Eu

This virtual event was held as a follow-up to the inaugural Biopesticide Summit and Exhibition at Swansea University in July 2019, and postponed in 2020 due to the Covid-19 pandemic. Sarah Harding, Communication Director at The World BioProtection Forum (WBF) & Biopesticide Summit opened the event with a few brief words of introduction before handing over to Dr Minshad Ansari, Chairman of the WBF.<br/> Dr Ansari was delighted with the more than 150 attendees already logged into the event with over 300 registered. The WBF was created in 2019 as a non-profit organization to bring together industry and academia for innovation. Dr Ansari thanked the event's supporters – AgBio, Agri Life, Bayer, Bionema, Ecolibrium Biologicals, Koppert Biological Systems, Harry Butler Institute and Sri BioAesthetics, as well as the media partners including Outlooks on Pest Management. He reiterated the need for regulatory reform due to removal of chemical pesticides, demands for organic food, limited biopesticide products registered and a lengthy and costly biopesticide registration process (5 years in EU where there are just 60 products available vs. 2.1 years in USA and where over 200 products are already available on market). The US is clearly in a much better place; in Europe, it is too expensive for SMEs and little progress has been made despite the work of the IBMA (International Biocontrol Manufacturers Association) and others. With respect to the biopesticides market share (value) by region, Europe has 27.7% market share (21.3% CAGR) and yet within UK, the CAGR is limited (unlike other European countries) – there are few products available in the market compared to chemical pesticides. The current biopesticide regulation is complex and not fit for purpose (compare 60 vs 200). Industry is facing a serious problem with pest control following the removal of some chemical pesticides, e.g.European cranefly which has caused many problems to the turf industry and has been impacted by the removal of chlorpyrifos. However, Brexit provides opportunities in the UK through government plans to "Build Back Better" by supporting Green Tech. At the EU level, the EU has committed to reducing use of pesticides by 50% (equating to 505 products) by 2030 so there are opportunities here for biopesticides to fill the market.<br/> Dr Ansari finished his introduction by restating the objectives for the meeting: for the speakers to present and debate the need for reform, their visions for a successful regulatory system, and how the WBF is working towards process reform in UK biopesticide regulation.

scholarly journals Arbitrage hedging in markets for the US lean hogs and the EU live pigs

2013 ◽  
Vol 59 (No. 11) ◽  
pp. 505-511
Author(s):  
M. Ziegelbäck ◽  
G. Kastner
Keyword(s):  
Cointegration Analysis ◽  
Monetary Benefit ◽  
Price Adjustments ◽  
Long Run ◽  
Economic Interpretation ◽  
The Us ◽  
Price Differences ◽  
The Relationship ◽  
Insight Into ◽  
The Eu

&nbsp; The paper describes an attempt to gain insight into the relationship between cash and futures markets for US lean hogs and EU live pigs, and the opportunity of arbitrage hedging. In doing so, the authors use newer methods of threshold cointegration analysis for time series from 1999 until 2008. Besides the existence of a long-run equilibrium, asymmetric price adjustments can be demonstrated. This is especially the case for the EU live pigs, where price variations of the basis are higher and exhibit lower standard deviation. The results also perfectly show that cash prices follow the futures market more than the other way round. Furthermore, a grid search has revealed that the residual-based threshold in either market is near zero and therefore coherent with economic interpretation. Thus, at least theoretically, arbitrageurs in those markets are able to exploit the price differences between the two markets and reap no-risk monetary benefit. Hence, the results are in line with the statement that &ldquo;speculating the basis&rdquo; generates a better return.

Political sensitivity and government oversight in the US corporate bond market: evidence from federal contractors

2020 ◽  
Vol 20 (7) ◽  
pp. 1173-1189
Author(s):  
Karen Ann Craig ◽  
Brandy Hadley
Keyword(s):  
Fixed Effects ◽  
Bond Market ◽  
Cost Of Debt ◽  
The Political ◽  
Yield Spreads ◽  
Content Type ◽  
Government Oversight ◽  
Increased Risk ◽  
The Us ◽  
Government Contractors

Purpose This paper aims to investigate the political cost hypothesis and the effects of political sensitivity-induced governance in the US bond market by using yield spreads from bonds issued by a diverse sample of US government contractors. Design/methodology/approach Fixed effects regression analysis is used to test the relation between the political sensitivity of government contractor firms and their cost of debt. Findings Results illustrated that government contractors with greater political sensitivity are associated with larger yield spreads, indicating that bondholders require a premium when firms endure the costs of increased political oversight and the threat of outside intervention, reducing the certainty of future income. However, despite the overall positive impact of political sensitivity on bond yield spreads on average, the authors found that the additional government oversight is associated with lower spreads when the firm is facing greater repayment risk. Practical implications Despite the benefits of winning a government contract, this paper identifies a direct financial cost of increased political sensitivity because of additional firm oversight and potential intervention. Importantly, it also finds that this governance is valued by bondholders when faced with increased risk. Firms must balance their desire for government receipts with the costs and benefits of dependence on those expenditures. Originality/value This paper contributes to the literature in its exploration of political sensitivity as an important determinant of the cost of debt for corporate government contractors. Specifically, the authors document a significant risk premium in bond pricing because of the joint effects of the visibility and importance of government contracts to the firm.

Intensity of shock transmission amid US-BRICS markets

2015 ◽  
Vol 10 (3) ◽  
pp. 311-328 ◽  
Author(s):  
P. Lakshmi ◽  
S. Visalakshmi ◽  
Kavitha Shanmugam
Keyword(s):  
Stock Market ◽  
Granger Causality ◽  
Stock Markets ◽  
Subprime Mortgage ◽  
Content Type ◽  
Brics Countries ◽  
Long Run ◽  
The Us ◽  
The Usa ◽  
Short Run

Purpose – The purpose of this paper is to analyze the intensity of transmission of shocks from USA to BRICS countries in the long-run and short-run deviations and swiftness of recovery during US subprime mortgage crisis. This analysis enables the authors to explore the evolving patterns of relationships between these markets and examine whether their co-movements altered either in response to international shocks that originated in advanced markets like USA or due to their domestic fluctuations. Design/methodology/approach – Employing data of daily stock market indices (open and close) of BRICS countries for the period January 2, 2001 to May 31, 2012, this paper examines the interactions and characteristics of price movements of BRICS with US market by applying co-integration tests, vector error correction model and Granger causality relationship. The daily stock market indices data are derived from respective stock exchange web sites. Findings – The results exhibit that both long-run co-integration relationships and short-run Granger causality relationships exist between the stock markets of US-BRICS. Furthermore, this nexus is amplified in the short-run during 2007-2009, when the subprime mortgage financial crisis in the USA cropped up. This finding lends support to the prominence of developed (US) market links in the proliferation of persistent co-movements of BRICS stock markets. Research limitations/implications – The findings imply an increasing degree of global market integration due to quick dissemination of global shocks originating from developed market like USA, and swift recovery which can be attributed to the increased resilience, consistent with the moderated level of domestically driven risk in the BRICS markets. In spite of their similarities, long-run and short-run interdependences with the US stock market exhibit differences among the BRICS. This can be attributed to the regional heterogeneity in long-run risk and return co-movements with the USA. Practical implications – Changes from the US index easily affect these stock markets in the short-run, which implies that the US index may act as a leading indicator for investing funds in BRICS markets. Originality/value – This study would enable the authors to understand whether BRICS economies actually remain resilient to adverse developments in USA and could serve as alternative investment destinations for global portfolio diversification.

Central Europe external risks still outweigh internal

2017 ◽  
Keyword(s):  
Mutual Funds ◽  
Central Europe ◽  
Federal Reserve ◽  
Political Crisis ◽  
Checks And Balances ◽  
Content Type ◽  
Political Risks ◽  
The Us ◽  
Asset Purchases ◽  
Law And Justice

Significance Investors are brushing off mounting political risks in Poland despite an erosion of democratic checks and balances under the nationalist Law and Justice (PiS) government. In Romania, despite the rapidly escalating political crisis, the leu has strengthened slightly against the euro since the start of this year, since when the yield on benchmark ten-year Romanian local bonds has risen by 25 bps to 3.6%. This is still significantly below the 5% level before the ‘taper tantrum’ in mid-2013, which stemmed from the unexpected decision by the US Federal Reserve (Fed) to end its asset purchases. Impacts After post-US election outflows, EM mutual funds are once again enjoying sizeable inflows, with EM debt funds reaching a four-month high. Some of the strain on EM currencies will be relieved by the 2.5% fall in the dollar index against a basket of its peers since end-December. Smaller export-led CEE economies will benefit from factory orders in Germany rising in December at their fastest pace in 30 months.

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