Euromoney (November issue)
“Asia’s young population has long been the envy of the west, but several of Asia’s most developed economies, including Singapore, Hong Kong, Taiwan and South Korea, were among the countries with the lowest fertility rates in the world this year as a result of rising education levels, more women working long hours and people getting married later, among other factors…. This presents many threats, but foremost among them are slowing economic growth and the need to provide income support for more elderly populations.”
“Asia’s young population has long been the envy of the west, but several of Asia’s most developed economies, including Singapore, Hong Kong, Taiwan and South Korea, were among the countries with the lowest fertility rates in the world this year as a result of rising education levels, more women working long hours and people getting married later, among other factors…. This presents many threats, but foremost among them are slowing economic growth and the need to provide income support for more elderly populations.”
New York Times (November 20)
Last week, the Treasury Department decided to exempt “certain foreign exchange derivatives from rules under the Dodd-Frank reform law that are intended to reduce risk and increase transparency. The exempted derivatives—instruments known as foreign exchange swaps and forwards—represent a $4 trillion-a-day global market.” This “step back for derivatives regulation” invites new problems and could spur a future crisis.
Last week, the Treasury Department decided to exempt “certain foreign exchange derivatives from rules under the Dodd-Frank reform law that are intended to reduce risk and increase transparency. The exempted derivatives—instruments known as foreign exchange swaps and forwards—represent a $4 trillion-a-day global market.” This “step back for derivatives regulation” invites new problems and could spur a future crisis.
Time (November 19)
Thanksgiving Day falls on the fourth Thursday in November in the U.S. The following day is traditionally known as “Black Friday” because the accounts of many retailers move from red ink to black ink as they reach profitability for the year. To maximize revenues, Black Friday sales have been creeping up, with stores opening earlier and earlier. Now many are opening on Thanksgiving Day, creating a “new class divide:” those who do and don’t work on Thanksgiving. “Perhaps it’s time for shopping moratoriums so that everyone can give thanks, instead of just those who have more to be thankful for.”
Tags: Black Friday, Class divide, Retailers, Thanksgiving, U.S.
Wall Street Journal (November 17)
Hostess, the maker of iconic American junk food like Twinkies, filed for bankruptcy. “On Friday it shut down its 33 bakeries and 565 distribution centers and prepared to fire nearly 18,500 employees en masse and auction off its brand and recipe portfolio.” The bakers and other unions succeeded in killing “an American classic, and 18,500 of their own jobs” because they refused to make concessions which might have turned the enterprise profitable. Hostess lost $341 million on sales of $2.5 billion in 2011.
Tags: Bankruptcy, Concessions, Hostess, Twinkies, Unions
The Economist (November 17)
While focus may currently rest on the PIIGS, “ahead looms a bigger problem that could dwarf any of these: France…. too many of France’s firms are uncompetitive and the country’s bloated government is living beyond its means.” Without decisive action, “France will lose the faith of investors—and of Germany. As several euro-zone countries have found, sentiment in the markets can shift quickly. The crisis could hit as early as next year.”
Financial Times (November 16)
“This week, the consequences of the eurozone’s misguided policies were brought home to the politicians overseeing them.” Millions of workers went on strike just as the area fell back into recession. “The eurozone theology of austerity by all is doing its predictable beggar-thy-neighbour work…. This economic and political damage was caused by a wrong-headed morality tale that attributed the debt crisis to fiscal indiscipline, when in reality profligacy was a sin most promiscuously practised by private lenders and borrowers.”
Tags: Debt crisis, Economy, eurozone, Recession, Strike
Euromoney (November issue)
“Restrictions and outright bans on short-selling shares, government bonds and credit derivatives were applied across Europe on November 1…. If it is a victory of the European Commission, it is potentially a disaster for Europe’s financial markets. Instead of a positive force for good, as was seemingly intended, negative consequences abound.”
New York Times (November 14)
Xi Jinping is poised to replace Hu Jintao as general secretary this week and president next March. “It could be sometime before the new relationships shake out and the world gets a clear sense of how Mr. Xi and his new colleagues intend to make their mark.” Will they continue on the same course or chose reform? Either way, they will confront challenge. China “faces daunting domestic and international challenges…. growth has slowed, state-run enterprises remain dominant in most industries and the gap between rich and poor is among the widest anywhere. Social and political unrest is increasing.”
Tags: Challenges, China, Hu Jintao, Reform, Unrest, Xi Jinping
NBC News (November 13)
“For the first time, a zippy electric car—the Tesla Model S—has won Motor Trend’s Car of the Year award.” Over 64-years, Motor Trend had previously made the award exclusively to cars powered by internal combustion engines.
National Geographic (November 12)
“In an indication how ‘fracking’ is reshaping the global energy picture, the International Energy Agency today projected that the United States will overtake Saudi Arabia as the world’s largest oil producer by 2017. And within just three years, the United States will unseat Russia as the largest producer of natural gas. Both results would have been unthinkable even few short years ago.”
Tags: Fracking, IEA, Natural gas, Oil, Producer, Russia, Saudi Arabia, U.S.
