Comment, analysis and other offerings from Thursday’s FT,
Bernie McSherry: Investors have to be sure statistics do not lie
The senior vice-president of strategic initiatives at Cuttone & Company writes: In an unsettling development that may speak volumes about the true level of confidence underlying the “green shoots” economic recovery story, many professional traders have begun to doubt the veracity of the US government’s economic reports.
Paul Boyle: Orwellian accounting cannot damp economic cycles
The chief executive of the UK’s Financial Reporting Council writes: The financial crisis has generated a philosophical debate about the role of accounting, notably the extent to which it is pro-cyclical, exacerbating booms and busts.
James Lamont: India prays for rain as it reaches for the skies
Publishers of books on India’s fast-paced economic development are apt to put “superpower” on the cover to boost sales. Commercially, the word is dynamite. It is also a fable.
John Gapper: Little laptops snap at the oligopoly
What is the most influential piece of personal technology of the past two years? Amazon’s Kindle? Apple’s iPhone? Research in Motion’s BlackBerry? All of these North American devices are worthy but my prize goes to the Asus Eee PC made by Asustek of Taiwan.
Editorial comment: Let them buy cake
Nicolas Sarkozy, president of France, has une certaine idée de la France which, given his inconsistent record on most things, is actually remarkably steady. One particularly strong element in his vision is that people should be free to work more if they want to earn more. In 2008 he pulled apart the country’s 35-hour working week legislation. Now, Mr Sarkozy is supporting liberalisation of Sunday shopping.
Lex on China’s $2,000bn foreign reserves
It appears the great unwinding of global imbalances and the dollar’s ensuing demise are notions that belong up there with the tooth fairy. China added $178bn to its foreign reserves in the second quarter, taking its total booty past $2,000bn, the equivalent of twice the annual economic output of New York state.
John Authers’ Short View: Tech stocks
Some day, the tech sector will be cyclical, and silicon chips will obey the same economic rules as forklift trucks, rising and falling with the economy. But that moment has not arrived, and markets still rely on the sector not just as a vehicle for growth but as a defensive redoubt.
Letters:
- Hedge funds being used as scapegoats
- A prescription that will see all careers end in failure
- An inopportune time for reckless experimentation