Financial Times (November 19, 2013)
Are Japan and China on a collision course? As the Senkaku dispute festers and both countries move to create National Security Councils, it still remains difficult “to believe that either China or Japan actually wants a war. The bigger risk is that military posturing around the islands will lead to an accidental clash – and that the governments of both nations would then be trapped by their own nationalist rhetoric, making it very hard to climb down.”
Tags: Accidental clash, China, Dispute, Governments, Japan, Military posturing, National Security Council, Nationalist rhetoric, Risk, Senkakus
Washington Post (November 18, 2013)
Little is definitively known about global warming, but it would be wise to take pragmatic measures. “Putting a price on carbon—through a tax on oil, coal and natural gas—that reflects global warming’s costs… would promote energy efficiency and favor renewables.” But how would one determine the size of that carbon tax? “We don’t know global warming’s full effects…. But we do know the size of the budget deficit, and we do know that revenue from a carbon tax might help finance a simplification of the income tax. By addressing multiple problems, an admittedly unpopular carbon tax might command broader support.”
Tags: Budget deficit, Carbon, Carbon tax, Energy efficiency, Global warming, Income tax, Renewables, Revenue, Support
The Economist (November 16, 2013)
“Xi Jinping has made himself the most powerful leader since Deng Xiaoping. That is probably a good thing.” His predecessor Hu Jintao proved unable to surmount the numerous obstacles to real reform. President Xi will need this increased muscle to overcome entrenched interests. “Too many people do too well out of today’s system to make change easy,” but change it should.
Tags: Deng Xiaoping, Entrenched interests, Hu Jintao, Leader, Obstacles, Power, Reform, Xi Jinping
Financial Times (November 15, 2013)
“Disappointing growth figures in the eurozone and Japan driven by weak export numbers have dashed hopes that a global economic recovery would gather pace in the second half of the year.” Third-quarter eurozone growth fell 0.2% to 0.1% while Japan’s growth rate dropped to 1.9%.
Tags: eurozone, Exports, Global economic recovery, Growth, Japan
New York Times (November 14, 2013)
“After a surprising spurt of strong growth in the first half of the year, the Japanese economy seems to be running out of steam as exports and consumer spending show signs of weakening.” The annualized growth rate was dramatically halved, from 3.8% in the second quarter to 1.9% in the third quarter. However, the consensus suggest the rate will increase in coming quarters ahead of the consumption tax hike in April 2014.
Tags: Consumer spending, Consumption tax, Economy, Exports, Growth, Japan, Weakening
Wall Street Journal (November 14, 2013)
“Abenomics is at risk of stalling out unless workers start seeing fatter paychecks. So far, it doesn’t look good.”“Abenomics is at risk of stalling out unless workers start seeing fatter paychecks. So far, it doesn’t look good.”
Euromoney (November Issue)
“Janet Yellen is eminently well qualified to lead the Federal Reserve. But investors should not assume that continuation of policy as normal comes without risk. Her dovish stance on inflation is worth noting and hedging against.”
Tags: Dovish, Federal Reserve, Hedging, Inflation, Investors, Janet Yellen, Policy, Qualified, Risk
Chicago Tribune (November 13, 2013)
“It used to be the tallest building in America. It used to be the tallest in the world. It used to be the Sears Tower. Now Chicago’s Willis Tower is second, um, banana to New York’s not-yet-completed One World Trade Center, which was declared tallest in the nation.” And it’s not just Chicago that has lost the skyscraper race. “The U.S. has all but conceded the skyscraper Olympics to cities like Dubai, Taipei, Hong Kong and Shanghai. Eight of the world’s 10 tallest buildings are in the Middle East and Asia. Saudi Arabia’s Kingdom Tower, now under construction, will be 3,281 feet tall.”
Tags: Chicago, Dubai, Hong Kong, New York, One World Trade Center, Saudi Arabia, Sears Tower, Shanghai, Skyscraper, Taipei, Tallest, U.S., Willis Tower
Financial Times (November 11, 2013)
“Japan’s inflationary momentum remains worryingly sluggish. The recent acceleration in prices is the result of surging energy costs, not of domestically generated inflation. Regular wages–excluding overtime and bonuses–fell for a 16th consecutive month in September…. The government must be ready to take more of an activist line to secure its objective.… The government should also be much bolder in its structural reform agenda, aimed at stimulating the rate of long-term growth.”
Tags: Bonuses, Energy costs, Government, Growth, Inflation, Japan, Momentum, Overtime, Sluggish, Structural reform, Wages
Investments & Pensions Europe (November Issue)
“UN analysis suggests that if present trends persist, demand for fresh water will outstrip supply by 40% by 2030. By 2050, four billion people will be living in areas facing severe water stress. Add that almost 800m people worldwide do not have access to clean water, while 2.5bn lack basic sanitation, and a worrying picture emerges.” For some investors, however, this suggests opportunities as they begin targeting businesses with water-related growth and avoiding those with unaddressed water-related risk.
Tags: Clean water, Demand, Fresh water, Investors, Opportunities, Risk, Sanitation, Supply, UN, Water stress, Water-related growth
