News: 2014-02-19
Asia
More on Abenomics and the wage-employment tradeoff | FT Alphaville
Thai Police Clashes With Protesters in Bangkok Leave 5 Dead – Bloomberg
Run on Thai Bank Linked to Rice Subsidy Points to Strain on Economy – WSJ.com
“Depositors have withdrawn nearly $1 billion from a bank linked to a foundering rice-subsidy program, the bank said Monday, in one of the first signs that Thailand’s months-old political stalemate is starting to affect the economy.”
Rising Inflation in Malaysia Turns up the Heat on Central Bank – Real Time Economics – WSJ
India must tackle manufacturing malaise – FT.com
“Industry is mired in red tape. Hiring is arduous. Finding land is a trial. Power cuts are frequent. Manufacturers also get clobbered by unreasonable tax demands, as Nokia of Finland, which operates its largest factory in India, has recently discovered.”
Freedom of speech shrinks in India, the world’s largest democracy – FT.com
China Overtakes India as Gold Consumer – WSJ.com
BBC News – China removes $8bn from money markets to control lending
“China’s central bank has removed nearly $8bn (£4.7bn) from the money markets in a bid to control the amount of credit in the country’s financial system.”
BBC News – Will China shake the world again?
“Unless you are an aficionado of the great moments of Chinese Communist history, you probably won’t have heard of Wuhan (it is the site of Chairman Mao’s legendary swim across the Yangtze). But perhaps more than any other Chinese city, it tells the story of how China’s remarkable three decades of modernisation and enrichment, its economic miracle, is apparently drawing to a close, and why there is a serious risk of a calamitous crash.”
BBC Two – This World, How China Fooled the World – with Robert Peston
“Robert Peston travels to China to investigate how this mighty economic giant could actually be in serious trouble. China is now the second largest economy in the world and for the last 30 years China’s economy has been growing at an astonishing rate. While Britain has been in the grip of the worst recession in a generation, China’s economic miracle has wowed the world. “
The risk of Chinese monetary policy failure | The Market Monetarist
“Back in October 2012 the actual level of M1 had just broken below the 16% trend line and since then M1 has kept inching downward compared to both the 16% and 15% trend lines and recently we have broken 15% tend line. This is obviously a very crude measure of monetary conditions in China, but I nonetheless think that the indication is pretty clear – monetary conditions are clearly getting tighter in China and I think it is fair to say that monetary conditions are disinflationary rather than inflationary.”
Europe
”Deflation är skadlig när den pågår under längre tid” – DN.SE
Sweden is in deflation now. The month-to-month change of 1.2% in January was so large it brought the year-on-year change to negative territory at -0.2%. The central bank is worried. If overvalued house prices fall, they will have a big problem.
Österreich: Moody’s traut Staats- und Landesgarantien nicht mehr ganz – KURIER.at
This article is on bankrupy Austrian bank Hypo Alpe Aldria, now costing taxpayers billions via a bailout. Will cos taxpayers up to 4 billion euros more. (translation follows): “Hypo had 13.5 billion euros of credit on its books davon 5 Mrd., of which 8.5 billion had no large servicing problems. “Bad debt”. 3.5 billion has been written down since the last statement, bringing the total writedowns to 10 billion euros.”
BBC News – UK unemployment falls by 125,000 to 2.34 million
BBC News – UK inflation falls to 1.9% in January
An independent Scotland risks becoming eurozone mark 2 – Telegraph
ekathimerini.com | Greece hits current account surplus in 2013, first since 1948
Ukraine Girds for Further Clashes – WSJ.com
Ukraine president warns force an option after bid to seize power | Reuters
Kiev death toll rises to 14, police say six officers shot dead | Reuters
Russia says West to blame for worsening situation in Ukraine | Reuters
Ruble Hits Record Low Against the Euro – WSJ.com
Turkey Sells 31-Year Dollar Bonds as Market Steadies – WSJ.com
North America
North Dakota Has Highest Rents in the Country from Bakken Boom
Research ties economic inequality to gap in life expectancy – The Washington Post
Calculated Risk: Real Household Debt down 17% from Peak, Real Mortgage Debt down 21%
Student-Debt Rise Concentrated Among Those With Poor Credit – Real Time Economics – WSJ
Calculated Risk: NY Fed: Household Debt increased in Q4, Delinquency Rates Improve
Just Released: Who’s Borrowing Now? The Young and the Riskless! – Liberty Street Economics
After UAW Loss in Chattanooga, Unions Try to Regroup – WSJ.com
Home Builders’ Index Plunges into Pessimistic Territory – WSJ.com
Canada Seeks Soft Landing for Highflying Housing Market – WSJ.com
Technology
Feud Over Netflix Traffic Leads to Video Slowdown – WSJ.com
Bitcoin Experiment in Everyday Life – WSJ.com
Why Can’t Amazon And Apple Catch a Break on Madison Ave? | Digital – Advertising Age
“Advertising sales are a tough slog for both — and for a lot of the same reasons. Media buyers say they are slow, cocky and downright stingy. Both take too long to develop ad products. Amazon’s sales approach is too pushy; Apple is too reticent to foster relationships. Most frustrating: Neither is willing to cough up enough of the consumer data that attracts advertisers to them in the first place.”
Tablets Put to a Productivity Test – WSJ.com
Language-Learning App Maker Duolingo Raises $20M From Kleiner Perkins | Re/code
The Plus in Google Plus? It’s Mostly for Google – NYTimes.com
Latam
BBC News – Argentina tries to delay $1.3bn repayment to creditors
La inflación impone cambios de hábitos, consumo y ahorro a la clase media – lanacion.com
This is a great article featuring only personal testimonies of the middle class in Argentina and how they are coping with the inflation in country.
Las expectativas de inflación a un año treparon al 35%
Inflation expectations for the coming year in Argentina are 35%
Brazilian Banks Could Owe More Than $140 Billion – WSJ.com
“A new report by Brazilian banks suggests a legal battle over the consequences of economic plans launched nearly three decades ago could cost them more than $140 billion, more than double their previous estimate. Consumer advocates have said that amount is exaggerated and is a way for banks to pressure Supreme Court justices to get a favorable rule for financial institutions. Savers across the country claim they weren’t paid enough interest on their savings by banks as Brazil navigated its way through a series of economic plans designed to stabilize prices between 1986 and 1991. As the government sought to cut down on inflation, savers claim the interest on savings accounts didn’t keep up with rising prices.”
Markets
Soros doubles a bearish bet on the S&P 500, to the tune of $1.3 billion – The Tell – MarketWatch
Minimising currency risk is key to finding EM bargains – FT.com
“According to Philip Turner of the Bank for International Settlements, the emerging-market corporate sector is now a repository of potential systemic risk because companies have been engaging in a carry trade. Through their overseas subsidiaries, they have been borrowing at the exceptionally low rates engineered by central bankers in the developed world to invest in domestic assets. “
Jos. A. Bank’s offer for Eddie Bauer defies logic: shareholder | Reuters
This merger makes no strategic sense
NSA
Germany Considers Counterespionage Measures against United States – SPIEGEL ONLINE
Jobs
What to Do If You Can’t Answer an Interview Question
7 LinkedIn Hacks That Will Make Your Job Search Easier | CAREEREALISM
Use LinkedIn to Find Companies Friendly with Your Alma Mater
Three Mistakes to Avoid When Networking – Dorie Clark – Harvard Business Review
Six Questions That Will Ease Your Mind Before an Interview
Elsewhere
JP Morgan Banker Jumps to his Death From Hong Kong Skyscraper
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