Bloomberg (March 30)
“In order to steer China off its current trajectory, leaders are going to have to tolerate a bigger hit to GDP. They must also quickly build a transfer mechanism to allow banks, state-run enterprises and entire municipalities to dispose of bad loans.” China’s total debt to GDP ratio “now exceeds America’s 269 percent and Germany’s 258 percent. Even more worrying: If the credit buildup continues at its current pace, that ratio will explode to 400 percent by 2018.”
Financial Times (March 30)
“The real eurozone problems are hidden under the bonnet…. The most important adjustment that needs to take place is a convergence of prices and labour costs.”
Tags: Adjustment, Convergence, eurozone, Hidden, Labour costs, Prices, Problems
The Independent (March 29)
“Britain is becoming a nation of hagglers. People are increasingly happy to negotiate better prices on everything from energy bills to new televisions and bicycles.” Nearly half the Brits “who bought something worth more than £100 in the past two years tried haggling to get a better price – and the vast majority succeeded.”
The Economist (March 28)
“More and more money is being spent on higher education. Too little is known about whether it is worth it.”
Tags: Higher education, Money, Value
New York Times (March 27)
The European regulator should follow the lead of the Federal Aviation Administration and require two people in the cockpit at all times. “No safety policy will ever anticipate every situation. But requiring two people to be in the cockpit during flight is a sensible step to reduce the risk that comes with leaving the lives of dozens or hundreds of people in the hands of just one pilot.”
Washington Post (March 26)
“Japan has been the forgotten ally in recent years. But Abe’s goal of a stronger Japan, anchored to the United States, would make for a more stable Asia.”
Bloomberg (March 25)
A recent poll showed that “only 11.3 percent of Chinese had a favorable opinion of Japan.” Nevertheless, “Chinese tourists can’t seem to get enough of Japan.” This apparent contradiction may be explained by the fact that only five percent of Chinese travel overseas. Still, there “is reason to hope that China’s growing wave of outbound tourists will serve as a force for openness and tolerance—if only so they’ll have somewhere good to shop.”
Financial Times (March 24)
In Hong Kong, the Securities and Futures Commission “will not be able to keep an open mind for very long” on whether to allow dual-class shares. Since 1987, Hong Kong has abided by the “current one-share-one-vote principle.” Citing the weakness of corporate governance in Hong Kong, some investors want to retain the current system, while others are calling for change to better compete with U.S. listings where dual-class shares are allowed.
Tags: Corporate governance, Dual-class shares, Hong Kong, Investors, Listings, Securities and Futures Commission, U.S., Vote
Institutional Investor (March 24)
“A reversal for the dollar and oil have not yet quenched investors’ appetite for euro-denominated risk assets.” In the absence of a market-shaping event, “investors keep flocking to Europe.”
Tags: Dollar, Euro-denominated, Europe, Investors, Oil, Reversal, Risk assets
Wall Street Journal (March 23)
“French voters still don’t have a convincing pro-growth option.” While “Sunday’s first round of voting in French municipal elections won’t much affect national policy… it does send a signal about where the electorate stands.” The majority voted “for manifestos that would consign France to more economic stagnation.”
Tags: Economic stagnation, Elections, France, Manifestos, Policy, Pro-growth, Voters