New York Times (November 16)
In Europe, “there is very little time left to avoid financial catastrophe.” Much of Europe’s fate now lies in the hands of Germany’s Chancellor Angela Merkel. Unfortunately, she has been following, rather than leading. “She needs to challenge her voters’ simplistic stereotypes of southern European sloth and tell them the truth: The real threat to Germany isn’t inflation; it is an economic collapse across Europe.”
Financial Times (November 13)
“Stock markets have long played a critical role in the global economy, funnelling the wealth of individuals to businesses in need of money to expand…..they have helped turn trading nations into empires, created a multibillion-dollar savings industry and fuelled the growth of 21st-century titans such as Google.” Yet, IPOs have dropped off dramatically in recent years. Experts are divided as to whether this is a temporary change linked to economic upheaval or the sign of a fundamental shift.
Tags: Economy, IPOs, Stock markets, Wealth
The Economist (November 12)
A recent survey of top leaders at 300 major global companies showed that 83% want “a legally binding multilateral deal…to update the ailing Kyoto protocol and help to put a price on carbon emissions.” However, less than 20% think that world leaders will accomplish this when they meet in Durban. Companies aren’t, however, waiting for the politicians. Since 2008, 88% have either increased or maintained corporate spending on sustainability, which is increasingly viewed as a core strategy to increase competitiveness by decreasing costs, combating resource scarcity and countering the impact of global warming.
Tags: Corporate strategy, Costs, Durban, Emissions, Scarcity, Sustainability
Investment Week (November 10)
Famed investor Jim Rogers predicts the next crisis will be worse than that of 2008. “In 2002 it was bad, in 2008 it was worse and 2012 or 2013 is going to be worse still—be careful.” He points his finger at non-sustainable debt levels which have left countries with few options for increasing economic stimulus. “The world has been spending staggering amounts of money it does not have for a few decades now, and it is all coming home to roost.”
Bloomberg (November 8)
“As China’s might increases, India’s influence flowers, South Korea grows more competitive and Indonesia booms, Japan’s standing is waning faster than Tokyo realizes.” Can Japan adapt? First it will need to abandon the “head-in-the-sand dynamic,” characteristic of the recent Olympus scandal, “that many investors had hoped was a thing of Japan’s past.”
“As China’s might increases, India’s influence flowers, South Korea grows more competitive and Indonesia booms, Japan’s standing is waning faster than Tokyo realizes.” Can Japan adapt? First it will need to abandon the “head-in-the-sand dynamic,” characteristic of the recent Olympus scandal, “that many investors had hoped was a thing of Japan’s past.”
Wall Street Journal (November 8)
“New public-health studies and laboratory experiments suggest that, at every stage of life, traffic fumes exact a measurable toll on mental capacity, intelligence and emotional stability.” This toll is difficult to document, but improvements have been seen where traffic congestion has been alleviated. Premature births in areas around New Jersey toll plazas dropped 10.8% “after the introduction of E-ZPass, which eased traffic congestion and reduced exhaust fumes.” Improving traffic would also improve lives in other ways. U.S. workers spend nearly as much time stuck in traffic (140 hours) each month as in the office in the 10 most congested traffic areas.“New public-health studies and laboratory experiments suggest that, at every stage of life, traffic fumes exact a measurable toll on mental capacity, intelligence and emotional stability.” This toll is difficult to document, but improvements have been seen where traffic congestion has been alleviated. Premature births in areas around New Jersey toll plazas dropped 10.8% “after the introduction of E-ZPass, which eased traffic congestion and reduced exhaust fumes.” Improving traffic would also improve lives in other ways. U.S. workers spend nearly as much time stuck in traffic (140 hours) each month as in the office in the 10 most congested traffic areas.
Tags: Congestion, Exhaust, Fumes, Health, Traffic
New York Times (November 8)
“Is there reason to fear that Americans will save too assiduously, as the Japanese did…to the point where the economy never goes back to what we consider normal?” The experts are divided. University of Tokyo professor Takatoshi Ito states, “Japan cannot be held up as a positive role model.” M.I.T. Sloan professor Simon Johnson points out, “Japan never experienced high unemployment. Perhaps we should envy and attempt to learn from their experience, rather than disparaging it.” And Morgan Stanley’s Stephen S. Roach asserts “it’s far too late to argue that the U.S. economy hasn’t fallen into a Japanese-like quagmire. Like Japan, we allowed asset bubbles to distort our real economy….”
Los Angeles Times (November 7)
With much talk of the growing wealth divide, it’s worth noting that “from 1776 to the present, the bottom 60% of the American population…has never had more than 11% of the country’s wealth. We may embrace the American dream of broad prosperity and wealth equity, but we have never been close to achieving it.”
Tags: Equity, Prosperity, U.S., Wealth
The Economist (November 5)
“Once the Fukushima nuclear plant is stable, the government should temporarily nationalise its operator.” The Economist believes the government must “act fast to nationalise Tepco, and hold it temporarily in public ownership as it clears out the old management and oversees the clean-up. Then it should reprivatise a thoroughly reformed utility.”
Tags: Clean-up, Fukushima, Government, Management, Tepco
The Guardian (November 3)
Looking at ways to strengthen corporate governance in the UK, Prime Minister David Cameron says it’s important “to make sure non-executive directors on boards are not the usual sort of rotating list of men patting each other’s backs and increasing the level of remuneration. I want to see more women in Britain’s boardrooms, which I think would have a thoroughly good influence.”
Looking at ways to strengthen corporate governance in the UK, Prime Minister David Cameron says it’s important “to make sure non-executive directors on boards are not the usual sort of rotating list of men patting each other’s backs and increasing the level of remuneration. I want to see more women in Britain’s boardrooms, which I think would have a thoroughly good influence.”
Tags: Boards, Cameron, Directors, Governance, UK
