Posts from Tuesday Feb 11 2014

The Closer

FURTHER FURTHER READING

- Mark Thoma on how Keynes would handle an abnormally slow recovery. Read more

US Macro Live, Yellen monetary policy testimony edition

Live markets commentary from FT.com 

The UK’s squeezed bottom, charted

The Resolution Foundation has published its annual look at UK standards of living, and what a brightly coloured chartfest of post-recession misery it is indeed.

It’s an attempt to provide an accurate picture of income distribution, addressing some flaws in the official statistics. But the central message is that not just the middle, but everyone outside the top 1o per cent has seen their share of economic gains squeezed. Read more

Yellen’s pre-testimony

New era, and all that. Click the image to read Janet Yellen’s full prepared testimony for her appearance on Tuesday before the Committee on Financial Services, U.S. House of Representatives.

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This is nuts. When’s the 危机?

Via the WSJ:

Alibaba Group Holding Ltd.’s online-payment affiliate is set to roll out its first wealth management product Friday, as Chinese Internet companies move deeper into financial services.

The affiliate, Alipay, this week began allowing users of its Yu’E Bao investment service the right to put their money into the wealth management product when it launches. In China, wealth management products are deposit-like investments offering higher returns for a fixed period than banks offer on a typical savings account.

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What is Carlos Ghosn waiting for?

Because if Sergio Marchionne can bash Chrysler and Fiat together, why else would the man who is paid chief executive salaries by both Renault and Nissan resist talking about the same after a 15 year courtship?

Indeed, we understand that last year Carlos Ghosn left US investors with the impression that when he sets out his strategic plan for Renault on February 13 in Paris, the future structure of the two companies would at least be part of the conversation. Yet in body language since, and in a recent FT interview, the message has been more of the same.

So lets take a look at the record of Mr Ghosn and the history of both companies on the way to our conclusion: why not bash these two together. Read more

Markets Live: Tuesday, 11th February, 2014

Live markets commentary from FT.com 

The (early) Lunch Wrap

China abandons grain self sufficiency || Nestle sells part of L’Oreal stake || Barclays job cuts || Michelin ups dividend || Spain property market still depressed || European stocks up  Read more

US Macro Live, Janet Yellen testimony edition

Join us for a special edition of Markets Live as we watch Janet Yellen’s appearance before the House Financial Services committee.

We’ll be kicking off at 9:55 EST (2:55 in London) to discuss the prepared testimony. The hearing begins at 10am. Come find us at the usual placeRead more

Untengeable

Competitive devaluation is a go, starting in the ‘Stans.

The official rate of the Kazakh Tenge has fallen to to 163.9 to the dollar on Tuesday, from 155.56 on Monday, shortly after the central bank announced that it would allow the national currency to devalue to around 185 per dollar. Read more

Further reading

Elsewhere on Tuesday,

- HFT, less efficiency more cheating.

- Are the UK floods Cameron’s Katrina?

- Macroeconomics made easy?

- A difficult campaign choice needs to be made. Read more

The debt ceiling — yes, again

Eventually I’m going to do exactly what the other side wants me to do seems like an odd starting point for a negotiation.

But the debt ceiling negotiation that matters right now isn’t between Republicans and Democrats, but between the Republican leadership and the Republican won’t-be-leds. In that context, John Boehner’s comments last week — “We do not want to default on our debt, and we’re not going to default on our debt” — established his position ahead of meetings with the Republican tea-party flank and other potentially rebellious members. (By happy coincidence, it is also the sensible position.) Read more

The 6am London Cut

Markets: US and European markets might have paused for breath, but Asian markets continued to climb ahead of Janet Yellen’s first public appearance as US Federal Reserve chairwoman. Major indices in the region were positive, with Hong Kong’s Hang Seng leading in its third climb in four sessions. (FT’s Global Markets OverviewRead more