British pound could hit history-making dollar parity by end of 2016

Debate continues as some analysts predict $1.20-$1.30 could hold for sterling this year

Investors should prepare for the British pound to hit parity with the U.S. dollar by the end of the year or early in 2017, said at least one analyst — and should parity happen, it’ll be a first.

After last week’s surprise U.K. vote to exit the European Union trading bloc, sterling fell more than 12% against the dollar on Friday before trimming some of its unprecedented drop late in the U.S. trading day. But bears regained the upper hand on Monday, sending the currency to a fresh 30-year low at $1.3121. Continue reading

Mercosur Wants to Expand Cooperation With Eurasian Economic Union

Argentine Ambassador to Russia Pablo Anselmo Tettamanti says the Eurasian Economic Union (EEU) is an important partner for Argentina, and Mercosur wants to continue developing cooperation with their Eurasian partners. He also added that Russia is discussing new investment opportunities with Argentina.

According to the ambassador, Argentina facilitated significant progress in reaching an agreement between Mercosur and the Eurasian Economic Union in the last six months of 2014. A number of meetings held in Moscow and Buenos Aires have led to the creation of a draft cooperation agreement in the economic and trade spheres between the two regional trading blocs. Continue reading

Who Will Be Tomorrow’s Superpower?

The geo-political map is set to change. Is the world ready?

There’s a popular geopolitical parlor game called Who will be the next superpower?

While the game excels at triggering a mind-fogging tsunami of nationalistic emotions, it doesn’t shed much light on the really consequential question: What is power?

These are important questions to ponder as, around the world, unsustainable policies from the 20th century are beginning to fail in earnest. What will the future geopolitical landscape look like in their aftermath?

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EU and China waging a subtle trade war

After claiming for years that austerity was “right thing to do”, before eventually admitting growth was in everyone’s best interests, you’d have thought Brussels would have learnt its lesson by now.

Not so … it seems.

For this week eurocrats went a step further and— having already exasperated many of the EU’s own members— they managed to alienate the one of the block’s biggest trading partners too, by slapping tariffs on cut-price Chinese solar panels. Continue reading

Europe and US pledge to create world’s biggest trading bloc

A very good point is made in the sense that this could be a means to contain China’s growing economic hegemony while simultaneously bolstering both EU and US growth.

The European Union and America are to open negotiations with the aim of creating the world’s biggest free trade area worth €86bn (£75bn) within two years.

The talks have been heralded as a “game-changer” that could help kick-start stagnant or contracting European economies back into growth by adding 0.5pc to GDP every year.

David Cameron pledged that Britain, which currently chairs the G8 group of countries, would do everything it could to help broker the difficult talks. Continue reading