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Wall Street Journal (June 29)

2013/ 06/ 30 by jd in Global News

“The real lesson of recent days concerns the Fed’s ability to exit from its extraordinary interventions. The mere hint that the Fed might eventually taper its bond purchases sent markets into anxious gyrations…. Imagine the uproar when the Fed finally decides to act, as it eventually must.”

 

Institutional Investor (June issue)

2013/ 06/ 29 by jd in Global News

“Optimism is beginning to infect Japan’s corporate leaders–a crucial factor considering that the new policies must spur corporate investment and expansion if they are to succeed in fostering a sustainable economic turnaround.” Corporate leaders have welcomed Abenomics, but the jury is still out. “Corporate Japan will consider the new government successful if it can end the psychology of deflation and stagnation and offer the prospect of renewed growth. So far, business leaders are fairly optimistic.”

 

New York Times (June 27)

2013/ 06/ 28 by jd in Global News

The outsourcing model is broken. “Most American and European brands and retailers use a rotating cast of hundreds of third-world suppliers, instead of establishing long-term relationships with fewer of them.” The result is a race to the bottom and horrid catastrophes like the building collapse in Bangladesh which killed more than 1,100 people. Things must change. Retailers should “contract with fewer factories and establish long-term relationships with them. If they did so, they would have to monitor fewer factories and would have greater influence over suppliers to demand upgrades and changes.”

 

Washington Post (June 26)

2013/ 06/ 27 by jd in Global News

Sheik Hamad Bin Khalifa al-Thani oversaw Qatar’s rapid economic growth. He came to power 18 years ago after staging a coup against his very own father. “Now the 61-year-old emir has completed another surprising initiative by handing power to his 33-year-old son.” This change “opens the way for adjustments in Qatar’s foreign policies and in the rigid autocracy that still reigns over the skyscrapers and luxury hotels of Doha.” Only time will tell if reform ensues.

 

Wall Street Journal (June 24)

2013/ 06/ 26 by jd in Global News

“For a country with a reputation of being a technology forerunner, Japan holds on dearly to all things tangible. Four of the world’s five biggest newspapers are Japanese. Faxes remain a staple of business communication. And the compact disc is alive and well.”

 

Financial Times (June 24)

2013/ 06/ 25 by jd in Global News

“It is too early to say, but with the credit intensity of China’s slowing economic growth surging back this year to levels last seen in the 2009 credit boom, a severe credit squeeze could precipitate a big drop in investment, accentuate the downturn in growth and lead to financial and banking sector instability.”

 

Chicago Tribune (June 23)

2013/ 06/ 24 by jd in Global News

“The rollout of Obamacare later this year is likely to bring a rate shock for many Americans who will buy health insurance from state marketplaces known as exchanges.” How much of a shock remains unknown as many implementation deadlines have been missed. Whether the rollout is a complete train wreck remains to be seen, but “this is not going to be a smooth ride.”

 

The Economist (June 22)

2013/ 06/ 23 by jd in Global News

“The past 20 years have seen a massive redistribution of economic power to the emerging world. But so far there has been no comparable redistribution of brand power.” While Chinese firms account about a sixth of the globes largest companies by revenue, “Interbrand’s 2012 list of the 100 ‘best global brands’ included not one Chinese firm.” This could change quickly. “Emerging-market contenders are mounting their warhorses and readying their battering-rams.”

 

Businessweek (June 21)

2013/ 06/ 22 by jd in Global News

“China’s credit crunch signals how serious Beijing is about reform.” During June, interbank lending rates soared to 13.91% in China, in what was the worst credit crunch for a decade. “Despite spooking global markets and no doubt causing consternation among Chinese banks and borrowers, the whole episode is a positive sign…. It shows China’s top leaders are still serious about broader economic restructuring and that they mean business when it comes to cleaning up some of the frothiness in the banking sector.”

 

Washington Post (June 20)

2013/ 06/ 21 by jd in Global News

As the Federal Reserve moves closer to an eventual unwinding of its massive quantitative easing program, the dollar looks poised to gain, disadvantaging U.S. exports. “For investors around the world, the great unwinding has begun, with sharp swings in different world bond and stock markets as money is shifted in response to the likelihood of higher interest rates and possibly stronger economic growth in the U.S. Currency markets are moving too – and it may mean a further drag on U.S. exports that are already stuck in neutral.”As the Federal Reserve moves closer to an eventual unwinding of its massive quantitative easing program, the dollar looks poised to gain, disadvantaging U.S. exports. “For investors around the world, the great unwinding has begun, with sharp swings in different world bond and stock markets as money is shifted in response to the likelihood of higher interest rates and possibly stronger economic growth in the U.S. Currency markets are moving too – and it may mean a further drag on U.S. exports that are already stuck in neutral.”

 

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