Traditionally, countries, regions, and even cities have competed to attract companies. Now they are competing to attract film crews. There are at least 120 territorial entities worldwide with programs to incentivize filming movies, series, or commercials, according to an analysis by the specialized consultancy firm Olsberg SPI. As a result, Hollywood studios have almost stopped making movies in the so-called Thirty Mile Zone (TMZ), the region in Southern California surrounding the studios. In the TMZ, labor costs were lower due to agreements between studios and unions, but now that competitive advantage has been nullified by incentives and exemptions from cities like London. The consequence of this audiovisual relocation could be the loss of 20,000 jobs in Los Angeles.
Canada's aces up its sleeve in its trade dispute with the US
"The United States signs its agreements with a pencil." In other words, the signature of that country - or rather, its president, Donald Trump - is worthless. With these words, Canadian Prime Minister Mark Carney justified on August 22 the breakdown of trade negotiations with the US. Now, both countries have imposed tariffs on each other. However, despite the US having an economy approximately 15 times the size of Canada's, Ottawa has several aces up its sleeve. The most obvious one is oil: Canada exports 3.9 million barrels daily to the US, which only sends 383,000 barrels back. The lesser-known one is potash: Canada supplies 72.7% of what the US consumes, and without this fertilizer, there is no modern intensive agriculture. The most strategic one is icebreakers: the US has only one to patrol the Arctic; Canada has 20 and is set to provide 11 more ships of this type to Washington along with Finland.
Silicon Valley's Orwellian strategy to end homelessness
Two Anglo-Saxon powers are launching campaigns to end homelessness. In the UK, Prime Minister Andy Burnham aims to ensure that, within four months, all homeless individuals in the country have at least one bed in a shelter. In the US, 16 states have opted to ban homelessness, including fines, expulsions from cities, or incarceration (thus keeping them out of sight). These initiatives are legally based on a Supreme Court ruling. But the real driving force is Joe Lonsdale (worth 2.2 billion euros), a Silicon Valley investor mentored by Peter Thiel (worth 28.2 billion), the only tech tycoon openly questioning democracy (and who now claims the Antichrist opposes AI). Lonsdale has established his own think tank/lobby, the Cicero Institute, to promote, among other things, "laws to reduce the presence of the homeless on the streets."
Saudi Arabia's debt becomes another front in the Iran war
It doesn't seem like the best idea to test the debt market to gauge demand for a new (and massive) bond issuance... right in the midst of what appears to be the beginning of a global public debt crisis. But there are circumstances that somewhat justify this measure. For example, when the sector representing a quarter of the national economy has plummeted by 24.7% compared to a year ago. This is the situation in Saudi Arabia, which is considering an 8 billion dollar (6.9 billion euro) bond issuance in addition to another 2.8 billion issued last Tuesday. So far this year, the Saudi state, the giant oil company Saudi Aramco, and the country's sovereign wealth fund - two independent entities but closely connected - have had to issue around 15 billion in bonds, equivalent to 1.2% of the nominal GDP of the state.
OPEC+ meets amid the decline of its power
Some data for thought. In February, OPEC+ (the oil producers' cartel and its allies, with Russia playing a dominant role) produced approximately 48% of the world's oil. Today, as this organization holds a new ministerial meeting on Sunday, that percentage has dropped to 40%. More than half of the decline is due to the exit of the United Arab Emirates from the cartel, with the rest attributed to production losses caused by the closure of the Strait of Hormuz. However, the decline of OPEC+'s influence has been offset by America, especially the US and Canada. In fact, in April and May, the Americas produced 41% of the world's oil. While two countries in that region - Mexico and Venezuela - are in OPEC+, the decline in the cartel's influence is evident. The new oil kings are across the Atlantic.
Tariffs threaten to leave Shein in a tight spot
The wave of protectionism in the economy could claim a heavyweight victim: Shein. The Chinese e-commerce retail giant had a disastrous IPO on the Hong Kong stock exchange on Tuesday, leaving it with a market capitalization of 20.7 billion euros, just 24.4% of the valuation it achieved in a financing round four years ago. One reason for investor skepticism is the decision, first by the US and then by the EU, to impose tariffs on small package shipments by postal mail, the way Shein and its competitor, also Chinese, Temu, sell their products worldwide. These regulatory changes put both companies in an unsolvable dilemma because their main competitive advantage is their low prices, and unlike car manufacturers, they cannot afford to invest in Europe to produce where their market is.