Euromoney (March Issue)
“Investors, bankers and policymakers were caught off-guard in early 2014 as new depths of pessimism about emerging markets were plumbed.”
Tags: Bankers, Emerging markets, Investors, Off-guard, Pessimism, Policymakers
Forbes (March 13)
“Like Iceland in its heyday, Singapore’s economic stability and vitality – on the surface at least – has made it the envy of the world at a time when most Western economies are languishing with feeble growth, and high rates of unemployment and poverty.” And, just like Iceland, the Switzerland of Asia will suffer when its economic bubble is punctured. In the meantime, “Singapore’s bubble economy may continue inflating for several more years if the U.S. Fed Funds Rate and SIBOR continue to be held at such low levels.”
Tags: Asia, Bubble, Economic stability, Fed, Growth, Iceland, Poverty, SIBOR, Singapore, Switzerland, U.S., Unemployment, Western economies
Chicago Tribune (March 11)
“No one steals and uses someone else’s passport for legitimate reasons. Only those who are inclined to violate the law and want to get away with it are given to this practice.” The role played by travelers with stolen passports on the ill-fated Malaysia Airlines flight remains unclear. What is perfectly clear is that authorities should “take the trouble to verify the identity of every person” by availing themselves of Interpol’s passport database. Currently, only a few countries make frequent use of this tool. Regrettably, more than one billion boardings went unscreened for misuse of lost/stolen passports last year.
Tags: Authorities, Boardings, Flight, Identity, Interpol, Law, Legitimate, Malaysia Airlines, Passports, Stolen, Travelers, Unscreened, Verify
Wall Street Journal (March 11)
Japan may be at the leading edge, but population graying is a truly global phenomenon requiring new approaches. “As the over-60 population grows much faster than the younger working-age cohorts, while life expectancy increases, the 20th-century model of work and retirement becomes increasingly unsuitable for economic growth. The key will be finding new solutions to engage older Americans in the workforce.”
Tags: Economic growth, Engage, Graying, Japan, Life expectancy, Over-60, Population, Retirement, Solutions, U.S., Unsuitable, Work, Workforce, Working-age
USA Today (March 10)
The fruitless search to locate the missing Malaysia Airlines flight, let alone determine what caused its fate, highlights just how outdated the black-box is in a world of 24/7 connections. This “disappearance is a powerful argument for upgrading black-box technology to allow planes to live-stream vital information when they get into trouble—a suggestion that airlines have resisted because of the cost.”
Tags: Airlines, Black-box, Cost, Disappearance, Flight, Malaysia Airlines, Missing, Outdated, Search, Stream, Technology, Upgrade
3/10 Issue
Even in countries where the press enjoys considerable liberties, governments can exercise considerable control through the overzealous defense of state secrets. The New York Times worries the Obama administration has gone to extremes in “prosecuting those suspected of leaking classified documents, and even seizing reporters’ records.” Following enactment of a state secrets law, this editorial may be equally applicable to Japan.
The Ukraine received considerable attention. USA Today notes that the U.S. had been dealt a very poor hand. Though he may have overplayed his hand, Putin kept the best cards for himself. Oil is clearly one of the aces in Russia’s deck. To break Russia’s stranglehold on Europe’s energy supply, the Washington Post calls for the expansion of LNG supply to Europe from alternative sources.
The Financial Times reports on the upside of air pollution in China. It’s so hard to overlook the smog that the Chinese government is finally paying attention to the environment. Alas, there is a downside. Pollution doesn’t put rice in bowls. The government will need to fight the continual temptation to favor short-term economic growth over much needed environmental measures.
Focusing on a less visible environmental issue, Salon points out how the costs of climate change extend far beyond economic livelihood to culture. Rising sea levels could destroy nearly 20% of the 720 UNESCO World Heritage Sites, wiping off vast swaths of coastal civilization.
Turning to the economic front, The Economist sees similarities between the emerging-market correction and the dot.com crash. Exuberance is being reigned in and companies will begin taking stricter approaches to emerging market investment, yet emerging markets will remain important.
And, closer to home in Japan, Euromoney wonders if Abenomics isn’t running out of steam, given a number of sputtering indicators. The rising cost of ensuring against credit default means Japan now leads developed markets in an area where one doesn’t want to be the leader. These and other factors leave Euromoney speculating that the yen may need to weaken considerably for Abenomics to succeed.
New York Times (March 9)
“American press freedoms rank among the broadest in the world,” but the government can still crimp this freedom by “prosecuting those suspected of leaking classified documents, and even seizing reporters’ records. Uninhibited and robust criticism can go only so far without meaningful access to information.”
Tags: Access, Classified documents, Criticism, Government, Information, Leaks, Meaningful, Press freedoms, Prosecuting, Reporters, Robust, Seizure, U.S.
Euromoney (March Issue)
“Faltering exports, weak economic data and a peak in inflation have triggered fears about Abenomics, suggesting the yen needs to be much weaker for the strategy to play out. That these concerns are beginning to gain traction in investors’ minds might be evidenced by the recent jump in Japan’s default risk – a implied by credit default swap prices – to the highest among developed markets this year.”
The Economist (March 8)
“Western firms have piled into emerging markets in the past 20 years. Now comes the reckoning.” The Fed’s quantitative easing, an over-exuberant investment cycle, rising local currency prices for commodities, and other factors are undermining the emerging market paradigm. “Plenty of firms and some whole industries need a rethink. The emerging-market rush may end up like a giant version of the first internet boom 15 years ago. The broad thrust was right but some big mistakes were made.”
Tags: Commodities, Currency prices, Emerging markets, Fed, Firms, Industries, Internet boom, Investment, Over-exuberant, Quantitative easing, Rethink
USA Today (March 7)
“If the Ukraine crisis were a poker game – and to a large degree it is – you wouldn’t want to be dealt the American hand, and you certainly wouldn’t want to overplay it in the false hope of a quick win. Russian President Vladimir Putin has carefully leveraged forces of history, geography and politics in ways that ensure there is no short-term victory to be had.”
