Wolfgang Münchau: Europe has resolved nothing over Greece
Another knife-edge summit in Brussels, another late-night agreement, followed by self-congratulatory poses from European leaders: the “emergency funding agreement” for Greece sounded like a significant deal on Thursday night. But then you wake on Friday morning, examine the details and realise it was mostly smoke and mirrors, the FT columnist writes. They had you fooled for a minute.
Ian Bremmer: China knows the time for lying low has ended
With Google pulling out of China and US senators urging the White House to exert pressure for a renminbi revaluation, friction between the world’s great powers seems depressingly normal. Sadly the reality is even worse, writes Bremmer, president of Eurasia Group. The mutual dependence of America and China is grounded in commercial ties, and the two sides will be doing business for decades to come. But a new conflict is unfolding that could be more dangerous even than the cold war.
Tony Jackson: Wanted — a new economic model
In the general scramble to reduce systemic threats in world finance, one corner has been largely undisturbed – that of accounting standards. Quite right too, say the standard setters. But what if that is not true?, the FT columnist asks. What if, for example, mark-to-market accounting affects the behaviour of banks, and even amplifies the cycle?
Editorial comment: Japan’s false dawn
When the Japanese public voted out the Liberal Democratic party last August, its main objective was to end its 50-year grip on power and to give the Democratic Party of Japan a chance to get the country out of a rut. But political analysts, both foreign and domestic, thought they detected another motive: the creation of a two-party system that would enfranchise a hitherto passive electorate. If that really was the aim, then it does not seem to be panning out.
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Analysis: The internet — closing the frontier
China may be public enemy number one when it comes to internet censorship. But ask executives at Silicon Valley’s leading companies about other countries that cause them concern and the first name that springs to many lips may seem surprising: Australia, write the FT’s Richard Waters and Joseph Menn.
Lex on bank bonuses
Interfering with banks’ remuneration policies is the job of regulators, not politicians playing to the gallery. Even banks that have not received direct government support have faced political pressure to show restraint on pay. But ad hoc interventions have had mixed results, Lex notes.
Lex on hot money
Hot money is swilling around the world’s better-performing economies, lured by the prospect of higher growth and more attractive yields, Lex writes. That is worrying enough for the authorities where it settles, given inflationary effects. Longer term, a more serious problem is that inflows could become disruptive outflows when interest rates return to normal. FT Alphaville has more on hot money in Asia.
The Real Deal: Insider trading
Has the FSA really stepped up its enforcement of market abusers, or just become better at publicising it?, the FT’s Lina Saigol writes. Seven suspects have already been arrested on accusations of insider trading – although none has been charged – and more could come next week.
Economists’ Forum: The eurozone and limited liability non-bank debt
Debt is a drug. High levels of debt used for unproductive purposes result in a temporary economic high. But after the high there is the inescapable low. Who should pay the bill when it eventually comes due?, writes Alistair Milne, reader in banking at Cass Business School, City University, London.