Slowing growth in Brazil and China, Greece nears D-Day
Economists have once again reduced forecasts for Brazil, as the country’s economic activity fails to gain traction. According to a weekly central-bank survey of 100 economists, Brazil’s gross domestic product will contract 1.45 percent this year. That’s more than was expected just a week ago. What’s more, inflation is running at an 11-year high. This and the Petrobras corruption scandal have put approval for President Dilma Roussef at the lowest level for a leader in at least 20 years. Boom Bust’s Ameera David weighs in.
Worth Wray is also on the show to talk about China. Wray is a much-published global macro strategist and the co-author of a new book: “A Great Leap Forward,” which gives insight into why China is economically positioned where it is today. Worth explains what the ‘Great Leap’ forward meant in the past and how today’s growth, while being better underpinned than the command and control model of Mao, is still based on an undue level of control that will reduce GDP growth in the future. He also says the rest of the world should be concerned about this growth slowdown because it will have implications for the global economy.
After the break, Boom Bust’s Erin Ade breaks down how much Taylor Swift’s challenge to Apple Music matters for recording artists, and why Apple changed its revenue model less than 24 hours after Swift came out against Apple’s initial revenue model.
RT’s Peter Oliver tells us what to expect for crunch time in Greece as the country fast approaches the end of a bailout program due to expire on June 30. Greece may default on its loans before the end of the summer.
And in The Big Deal, Ameera and Edward Harrison discuss why Greece really counts. We shouldn’t care about the country because of the size of its economy, but rather Greece matters because it sets precedents in an economic area that represents one-fifth of global economic output. What happens in Greece could happen anywhere in the eurozone.
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