Inside Track – Febuary 2018

This month’s topics:

  • Deflation fears are gone and inflation expectations are up, but it is important to remember that potent structural factors restrain price inflation: ageing, technology and inequality – all three put a lid on long-term inflation.
  • The US growth potential will only improve when companies invest in new technologies, instead of spending cash on dividends and share buybacks.
  • The “Trump tourism slump” is proof that governments with an unwelcoming attitude towards foreigners deter tourism.
  • The IG Metall agreement illustrates a critical change in attitude: work-life balance matters and increasingly younger workers tend to favour free time over wages.
  • Blackrock, the world’s largest investment company, has created an AI lab in Palo Alto to help generate alpha for clients by creating efficiencies based on big data analysis.
  • Machine learning can now insert heads of other people (like decision-makers or celebrities) into pornographic videos in a way that makes it impossible to tell the fake appearance from the real thing.
  • Cyber, in its many different guises (from cyber-disinformation to cyber-weapons), is likely to accelerate the pace of military engagement, increasing the risks of miscalculation and misunderstanding.

Download the full report: February’s Inside Track