Institutional Investor (March 20)
“For years, asset management firms have benefited as the banking industry was dragged down by quantitative easing and increasing regulation. The one-two punch spurred a more than $100 billion divergence in revenues since 2011, with asset managers up $65 billion and wholesale banks down $45 billion at the end of 2016…. But now, with asset managers facing ‘intense’ pressure on fees and with economic policy shifting in favor of banks,” there are growing predictions for “a ‘reversal of fortunes’ for the two sectors.”
Tags: Asset management, Banking, Economic policy, Fees, QE, Regulation, Revenues, Reversal
The Economist (March 18)
“Westminster is unlikely to refuse the request” for another Scottish referendum. Refusal “would add to the already-damaging perception of an English-dominated government that ignores Scotland. Once again a Conservative prime minister faces the prospect of presiding over the break-up of the union. And this time it is against the backdrop of perhaps the most complex international negotiations Britain has ever undertaken, as it leaves the European Union.”
Tags: Break-up, Conservative, EU, Government, Perception, Referendum, Scotland, Westminster
Wall Street Journal (March 17)
“‘Clearly the president was wrong’” with his accusation accusing former president Barak Obama of tapping his phone. While the White House press secretary stubbornly defends Trump’s accusation, “Mr. Trump would be wiser to say he fired the tweet in anger and walk it back. An apology can be good for the soul—and a Presidency.”
Tags: Accusation, Anger, Apology, Obama, Phone, President, Tap, U.S., White House
Cover (March 16)
Disclosure of “how many claims are paid out is absolutely the right thing to do” in the insurance industry. “Paying claims is the only way our industry can prove its worth to its customers and advisers…. This is why publication is so important. Claims statistics give advisers the evidence to help them reassure clients who believe policies hardly ever pay out. Honesty and openness is the best policy.”
Tags: Advisers, Claims, Customers, Disclosure, Evidence, Honesty, Insurance, Openness, Statistics
Los Angeles Times (March 16)
With his proposed budget, President Trump “would slash education, research, foreign aid and many domestic programs to make room for one of the biggest military buildups in history.” The proposal is unlikely to gain traction. “It’s such a Draconian approach and would inflict so much pain on lawmakers’ constituents — especially in Red State America — that Congress is expected to ignore most of Trump’s proposal.”
Tags: Budget, Buildup, Congress, Draconian, Education, Foreign aid, Military, Pain, Research, Trump, U.S.
1843 (March Issue)
“Even though the fashion business relies on passing fads to keep the consumer interested, many of the products sold under the flag of luxury are built to last. Personal tech, conversely, is built to be surpassed. A top-of-the-line iPhone 7 currently retails at just north of £900, but next year it will be last year’s phone – an anachronism. Tech is perishable. Luxury is forever.”
Financial Times (March 14)
The Japanese stock market resembles “the ghost ship Mary Celeste.” Strewn around the decks are signs that the ship should be hopping with activity: the Topix index at a 14-month high, identifiable value stocks in abundance, a comfortably-positioned yen, fresh legalisation of casinos in the bag and a run of record share buybacks…. And yet there is silence.” Volumes have been low during the last three weeks and “overseas investors have been net sellers…with up to Y78bn leaving the index.” This suggests little wind remains in the Abenomics sails and, quite possibly, that traders are cautious ahead of developments from the Federal Reserve and Donald Trump. But it could also mean that overseas investors have written “Japan off as a credible, reform-minded play on global growth and domestic reflation.”
Tags: Abenomics, Buybacks, Casinos, Fed, Investors, Japan, Mary Celeste, Reflation, Topix, Trump Growth, Value stocks, Volumes, Yen
Korea Times (March 13)
Former President Park Geun-hye continues to display an “irresponsible attitude.” Despite a ruling of the Constitutional Court upholding her impeachment, Park “indicated that she would not accept the court ruling.” But it is not her choice. The ruling “is final and unchallengeable…. If Park had any sense of responsibility as a head of state and had felt appreciation toward her supporters, she should have told them that it was time to accept the court ruling and asked them to stop holding violent protests.”
New York Times (March 11)
President Trump “may want to take credit for the 235,000 jobs created last month, but at this early stage of his administration, the tally reflects trends established under President Obama.” Trump has been dealt a very good hand. After adding an average of 200,000 jobs monthly during the last year, “the economy is steadily progressing toward full employment.” Mr. Trump’s challenge is whether “his policies foster the trend, or derail it?”
The Economist (March 9)
“The spread of exotic grains is evidence that globalisation works.” You may mock quinoa and other hip foods, but they are welcome sign “of rising prosperity and expanding choice. The spread of better farming techniques has raised yields, helping humanity feed itself despite a rising population.” In contrast, “plans to erect trade barriers and possibly start a trade war” deserve derision. They “would make the world poorer and hungrier.”
Tags: Exotic grains, Expanding choice, Farming, Globalization, Humanity, Population, Prosperity, Quinoa, Trade barriers, Trade war, Yields
