USA Today (November 9)
Instead of urgent action to remove defective air bags from vehicles, “air bag maker Takata and its biggest customer, Honda, conducted glacial, piecemeal recalls that have left drivers in jeopardy.” Why the National Highway Traffic Safety Administration (NHTSA) hasn’t done more remains a mystery, though it’s clear why the other parties have dallied. “The problem might pose an existential threat” for Takata. “And for Honda, finding and replacing the faulty air bags—installed in many models for many years—imposes a massive cost.”
The Economist (November 8)
Brazil and Russia are the “dodgiest duo” of the six susceptible emerging markets, which also include India, Indonesia, South Africa, and Turkey. India and Indonesia now appear relatively “secure” while both South Africa and Turkey have bright spots. However, “the mixture Brazil and Russia face—falling currencies, high inflation and slow growth—could make 2015 a very bad year…. Even optimists think the pair will be lucky to grow in 2015. Pessimists see tumbling currencies, bond-market routs and even bank runs.
Tags: 2015, Bank runs, Bond market, Brazil, Dodgiest duo, Emerging markets, Falling currencies, India, Indonesia, Inflation, Russia, Slow growth, South Africa, Turkey
Euromoney (November Issue)
Despite the relative success of recent stress tests, “the financial sector remains at the core of the eurozone’s economic woes. Weak corporates and overleveraged households continue to weigh on bank balance sheets and lenders across the region remain vulnerable to write-downs.” The “flimsy” stress tests failed to “address the underlying problems of bad credit that slow growth and lowflation are compounding…. The euro banking crisis remains.”
Tags: Bad credit, Balance sheets, Economic woes, Euro banking crisis, Financial sector, Households, Lenders, Lowflation, Overleveraged, Stress tests, Write-downs
Financial Times (November 7)
Germany needs to take a more “active role in a disordered world,” and this means articulating their foreign policy. “Ms Merkel has built her political career on caution–on taking the temperature and weighing all the options before acting…. But leadership in foreign policy demands something more: an understanding that doing nothing can be more dangerous than doing something, and a readiness to step out in front of the crowd. Consensus may be comforting; it does not impress the likes of Mr Putin.”
Tags: Caution, Consensus, Disordered world, Foreign policy, Germany, Merkel, Putin, Readiness
New York Times (November 6)
“The Democratic brand did not fare well” in Tuesday’s elections that broadly swept conservative Republican candidates into office. When asked to vote on policy issues, however, “voters made notably liberal decisions in both red and blue states,” passing liberal initiatives ranging from environmental initiatives and gun control measures to legalizing marijuana. These initiatives “were directly at odds with the positions of many of the Republican winners.”
Tags: Conservative, Democrats, Elections, Environment, Gun control, Liberal, Marijuana, Policy, Republicans, U.S.
Bloomberg (November 4)
A United Nations panel released its latest grim report on climate change. The Intergovernmental Panel on Climate Change asserts that irreversible damage could result unless climate change is arrested quickly. Unfortunately, “another report won’t slow climate change…. All this was known. Doing something about it—that’s the hard part, and where most politicians, especially in the U.S., are failing.” Governments need to take action and “change their policies.”
Tags: Climate change, Damage, IPCC, Irreversible, Policies, Politicians, U.S., UN
Wall Street Journal (November 3)
“Moscow may have a currency crisis on its hands.” For the year the ruble has sunk 22% against the dollar, trailing only “Argentina as the biggest emerging-market currency loser.” Though the faltering Russian economy could benefit from lower interest rates, “the Bank of Russia raised its benchmark interest rate to 9.5% from 8% on Friday in an attempt to stop a run on the ruble and stem inflation, but the ruble kept falling even after the rate hike.”
Tags: Argentina, Benchmark, Currency crisis, Dollar, Economy, Emerging markets, Inflation, Interest rates, Moscow, Ruble, Russia
The Atlantic (November Issue)
China is “intensifying efforts to remake the maritime borders of” the South and East China Seas, “just as surely as Russia is remaking Europe’s political map in places like Crimea and Ukraine—only here the scale is vastly larger, the players more numerous, and the complexity greater.”
Tags: Borders, China, Complexity, Crimea, East China Sea, Europe, Map, Maritime, Russia, South China Sea, Ukraine
The Economist (November 1)
“Leading students of capitalism have been pronouncing the death rites of family companies for decades” and yet these firms continue to thrive. Indeed, “the proportion of Fortune 500 companies that can be described as family companies increased from 15% in 2005 to 19% today.” One reason for their resilience is that family firms “have got better at addressing their obvious weaknesses.”
New York Times (November 12)
Only 36.3% of U.S. voters even bothered to vote in last week’s election. “The abysmally low turnout in last week’s midterm elections — the lowest in more than seven decades — was bad for Democrats, but it was even worse for democracy. In 43 states, less than half the eligible population bothered to vote, and no state broke 60 percent.”
