Wall Street Journal (June 6)
“To the Chinese stock market and property bubbles, now add the whisky bubble.” Scotch is “the tipple of choice for the ultra-wealthy class” in China. In many ways this bubble mirrors Japan’s similar bubble of the 1970s and 1980s. Spirit makers are being cautioned they might be left with a hangover if the bubble bursts.“To the Chinese stock market and property bubbles, now add the whisky bubble.” Scotch is “the tipple of choice for the ultra-wealthy class” in China. In many ways this bubble mirrors Japan’s similar bubble of the 1970s and 1980s. Spirit makers are being cautioned they might be left with a hangover if the bubble bursts.
PC World (June 6)
The newest internet protocol (IPv6) launched today. IPv6 replaces IPv4 which will continue to be supported. IPv6 provides better efficiency and security, and solves a major problem. IPv4 only offered 4.3 billion addresses and they’ve all been used. “IPv6 uses 128-bit addresses and is capable of 340 undecillion addresses. That is 340 times 10 to the 36th power, or 340 trillion trillion trillion possible IP addresses.”
Washington Post (June 4)
“Can anyone doubt that the euro’s creation in 1999 was a huge blunder? It aimed to promote European prosperity and unity, but it’s doing just the opposite.” Rather than uniting Europe, “the euro now sows rancor” and “actually hinders economic revival.”
Tags: 1999, Blunder, Economic revival, euro, Prosperity, Unity
The Economist (June 2)
Fracking has resulted in a shale gas revolution. “At current production rates, America has over a century’s supply of gas, half of it stored in shale and other ‘unconventional’ formations. It should also spread, to China, Australia, Argentina and Europe. Global gas production could increase by 50% between 2010 and 2035, with unconventional sources supplying two-thirds of the growth.”
Fracking has resulted in a shale gas revolution. “At current production rates, America has over a century’s supply of gas, half of it stored in shale and other ‘unconventional’ formations. It should also spread, to China, Australia, Argentina and Europe. Global gas production could increase by 50% between 2010 and 2035, with unconventional sources supplying two-thirds of the growth.”
Financial Times (June 1)
Stirring both celebration and reflection, Queen Elizabeth’s reign marked 60 years. “Monarchy may seem an outdated concept in a modern democratic age. But the enthusiasm spilling out on to Britain’s streets as the public celebrates Queen Elizabeth’s diamond jubilee shows that it can still command widespread respect and affection.” About 80% of Brits support the monarchy, and the Queen’s popularity is even higher. At her coronation, “Britain was in the grip of austerity. The occasion brought a flash of welcome pageantry to the everyday grimness. Today Britain is again facing hard times. This weekend offers another chance to forget the everyday but also to celebrate a monarch who has helped the UK stay a steady course.”Stirring both celebration and reflection, Queen Elizabeth’s reign marked 60 years. “Monarchy may seem an outdated concept in a modern democratic age. But the enthusiasm spilling out on to Britain’s streets as the public celebrates Queen Elizabeth’s diamond jubilee shows that it can still command widespread respect and affection.” About 80% of Brits support the monarchy, and the Queen’s popularity is even higher. At her coronation, “Britain was in the grip of austerity. The occasion brought a flash of welcome pageantry to the everyday grimness. Today Britain is again facing hard times. This weekend offers another chance to forget the everyday but also to celebrate a monarch who has helped the UK stay a steady course.”
Tags: Austerity, Coronation, Diamond jubilee, Monarchy, Popularity, Queen Elizabeth, UK
Euromoney (May 31)
“There’s one problem with a European deposit guarantee scheme: it won’t work.” Fear of bank runs is growing. To counter these fears, Jose Manuel Durao Barroso, president of the European Commission, has put forth “a banking union with integrated financial supervision and single deposit guarantee scheme” (DGS). However, a DGS would do little to calm fears of redenomination, even if it could be prepared in time. Greece has a DGS, yet 25% of bank deposits were withdrawn in the past 2 years, largely because savers worry their euro deposits will be redenominated into drachma. Furthermore, most DGS “protect against the failure of one or two banks, not the failure of a national banking system.”
“There’s one problem with a European deposit guarantee scheme: it won’t work.” Fear of bank runs is growing. To counter these fears, Jose Manuel Durao Barroso, president of the European Commission, has put forth “a banking union with integrated financial supervision and single deposit guarantee scheme” (DGS). However, a DGS would do little to calm fears of redenomination, even if it could be prepared in time. Greece has a DGS, yet 25% of bank deposits were withdrawn in the past 2 years, largely because savers worry their euro deposits will be redenominated into drachma. Furthermore, most DGS “protect against the failure of one or two banks, not the failure of a national banking system.”
The Independent (May 31)
A day of stunning developments in the European debt crisis is summed up simply. “Spaniards are moving money out of their nation’s banks faster than at any point since records began, as Fitch downgrades eight regions and ECB President Mario Draghi warns Europe’s leaders must clarify their vision for the euro.”A day of stunning developments in the European debt crisis is summed up as “Spaniards are moving money out of their nation’s banks faster than at any point since records began, as Fitch downgrades eight regions and ECB President Mario Draghi warns Europe’s leaders must clarify their vision for the euro.”
Wall Street Journal (May 30)
“Flush with cash and bolstered by a strong currency, Japanese companies are in the midst of the biggest boom in overseas investment the country has ever seen.” At home, earnings are threatened by the shrinking domestic market, uncertain electric supply, disrupted supply chains, and weak domestic economy. In the past, “Japanese mergers-and-acquisitions booms sometimes focused on trophy properties with little regard to value.” Today’s boom is driven by value and “powered by fear.”
“Flush with cash and bolstered by a strong currency, Japanese companies are in the midst of the biggest boom in overseas investment the country has ever seen.” At home, earnings are threatened by the shrinking domestic market, uncertain electric supply, disrupted supply chains, and weak domestic economy. In the past, “Japanese mergers-and-acquisitions booms sometimes focused on trophy properties with little regard to value.” Today’s boom is driven by value and “powered by fear.”
