I just liked “Ratatat – Drugs” on Vimeo: http://vimeo.com/13177086
Spill costs to cut BP tax bill by $10-billion
BP is forecast to pay about $10-billion £6.7-billion less tax over the next four years as it meets the costs of its huge oil spill in the Gulf of Mexico, hitting the revenues of Britain and the U.S. that receive hundreds of millions of dollars from the company each year.
Of its principal expected liabilities, only the fines that might be imposed by the U.S. authorities would definitely not be tax-deductible
via Spill costs to cut BP tax bill by $10-billion – The Globe and Mail.
Falling consumer confidence
“The Conference Board says its consumer confidence index fell 5.7 points this month and now sits 13 points below where it stood at the beginning of the year.
Coincidentally, the index in the U.S. also fell sharply in June – by about 10 points – over concerns that unemployment remains high despite better economic news in the last six months. It was the first setback since February.”
Globe and Mail, June 29,2010
Ten Russian intelligence officers
“Ten Russian intelligence officers have been arrested for allegedly serving as illegal agents of the Russian government in the United States, the Justice Department said Monday. Eight of 10 were arrested Sunday for allegedly carrying out long-term, deep cover assignments in the United States on behalf of Russia.”
via Ten Russian intelligence officers arrested in the U.S. – The Globe and Mail.
U.S university endowment performance (pre-crisis)
“The share of endowments at Ivy League schools devoted to alternative assets are consistently twice as much into alternative assets than the median school (the medians for the Ivy League and the entire sample are 9.3 vs. 4.3 percent in 1993; 38 vs. 12 percent in 2005).
The Yale endowment provides an extreme example: at the end of the 2006 fiscal year, the university’s target allocation was to hold 69 percent of its portfolio in private equity, hedge funds, and real estate (Lerner, 2007). Thus, the endowments with the best (pre-crisis)
performance have also allocated most aggressively toward alternative investments.”
via: www.hbs.edu/research/pdf/09-024.pdf
U.S university endowments (pre-crisis)
The top 20 [U.S university] endowments grew more than 9 percent annually on a real basis between 1992 and 2005.
As of 2007, the two largest endowments, belonging to Harvard and Yale, have grown to $35 billion and $22 billion in size, respectively.
According to Lerner et al., impressive performance is related to the size of endowment, the quality of the student body, and the use of alternative investments.
“Across endowments, institutional characteristics such as endowment size and admissions selectivity are better predictors of success than the allocation to risky asset classes.”
via: www.hbs.edu/research/pdf/09-024.pdf
BP closing solar manufacturing plant
“BP will close its solar-panel manufacturing plant in Frederick, Maryland, the final step in moving its solar business out of the United States to facilities in China, India and other countries.
Just 3 1/2 years ago, in an announcement widely hailed by Maryland officials and promoters of “green jobs,” BP unveiled a $70 million plan to double output at the facility and erected a building to house the production lines.
But on Friday the company said it would lay off 320 workers and keep only a hundred people involved in research, sales and project development”
via BP closing Maryland solar manufacturing plant – washingtonpost.com.
Russian copters for Afghan air corps
“In a turnabout from the Cold War, when the CIA gave Stinger missiles to Afghan rebels to shoot down Soviet helicopters, the Pentagon has spent $648 million to buy or refurbish 31 Russian Mi-17 transport helicopters for the Afghan National Army Air Corps. The Defense Department is seeking to buy 10 more of the Mi-17s next year, and had planned to buy dozens more over the next decade.”
via U.S. military criticized for purchase of Russian copters for Afghan air corps.
Sovereign-wealth funds
A relatively new class of private-equity investor—sovereign-wealth funds—needs particularly careful nurturing. These long-term investors constitute a very large group in the aggregate, with $3 trillion in total assets in 2007 and a projected $8 trillion in the next decade. By the end of 2007, they had committed about $300 billion to the private-equity sector
via The future of private equity – McKinsey Quarterly – Strategy – Strategic Thinking.
Insurance in China
In contrast to China’s nascent retail-banking industry, the life insurance and savings business is already huge and increasingly competitive. Over the past decade, it has increased by about 30 percent each year, making China the world’s fastest-growing major life insurance market. Rapid growth is expected through 2008, when it will have exceeded $100 billion in premiums, surpassing France and Germany.
via Selling life insurance to China – McKinsey Quarterly – Financial Services – Insurance.
varying opinions on China’s promised de-peg
[the peg] has required Beijing to buy large amounts of U.S. debt, thus increasing the supply of yuan on international markets while decreasing the supply of U.S. assets.
Given the United States’ tendency toward deficit spending, which was exacerbated by last year’s $787 billion stimulus package and the bailout of the U.S. financial sector, that could force U.S. interest rates higher and risk derailing the nascent economic recovery.
via Analysis: Corporate America has reason to be wary on yuan | Reuters.
New Russian jet fighter
“fifth-generation” stealth fighter, dubbed the T-50 is Russia’s first all-new warplane since the collapse of the Soviet Union in 1991.
“This machine will be superior to our main competitor, the F-22, in terms of maneuverability, weaponry and range,” Putin told the pilot after the flight, according to an account on the government website.
Putin said the plane would cost up to three times less than similar aircraft in the West and could remain in service for 30 to 35 years with upgrades, according to the report.Successful development of the fighter, built by Sukhoi, is crucial to showing Russia can challenge U.S. technology and modernize its military after a period of post-Soviet decay.
Russia also plans to manufacture T-50s jointly with India
via Putin boasts new jet fighter better than U.S. plane | Reuters.
China signal’s another currency revaluation
In July 2005 China’s central bank begin allowing the renminbi to rise against the dollar. The renminbi then rose 21 percent over the next three years, until the central bank informally repegged the renminbi at 6.83 to the dollar in July 2008.
Amid U.S. And international pressure, on June 19, 2010 china signalled intent for another revaluation with specific details to follow.
Via nyt June 19, 2010
basic terms
Money market funds: mutual funds that invest in short‐term, low risk instruments such as government securities, commercial paper, certificates of deposit, repurchase agreements, and discount notes.
Hedge funds: unregistered investment companies that serve high net‐worth or institutional investors and may pursue complex strategies and investments.
Investment banks: institutions that assist in the issuance of securities, operate as brokers and dealers for various instruments, and trade for their own accounts.
Asset‐backed commercial paper (ABCP) conduits and structured investment vehicles (SIVs): Legal entities that hold assets and use those assets as collateral to issue debt either in the form of ABCP (ABCP conduits) or in the form of ABCP and other notes (SIVs).
Government‐sponsored enterprises (GSEs): government‐chartered institutions, including Fannie Mae and Freddie Mac, that guarantee the timely payment of principal and interest from a pool of mortgages
Financial guarantors: institutions that guarantee municipal bonds and other securities.
Unsecured commercial paper and asset‐backed commercial paper (ABCP): debt securities that mature in 270 days or less; they are a major source of funding in the U.S. and abroad.
Repurchase agreements (or repos): an agreement whereby a market participant holding an asset sells that asset to another party and commits to repurchase the asset at a later date at an agreed‐upon higher price. This transaction is economically equivalent to a loan collateralized by the asset.
Securities lending: transactions in which a party lends securities in order to raise cash for investment.
Auction rate securities: long‐term bonds with floating interest rates that reset by auctions at regular intervals.
Derivatives: contracts whose pricing is based on a reference product, index, or other security. Some examples are interest rate swaps, exchange rate swaps, total return swaps, and credit default swaps.
Financial Crisis Inquiry Commission | Reports & Fact Sheets.
Financial sector as a percentage of GDP- US
The financial sector reached 5.8% of GDP in the third quarter of 2009.
After rising from $199 billion in 2001 to $417 billion in 2005, financial sector corporate profits fell to a recent low of $89 billion at an annual rate in 2008Q4. Since then, financial sector profits have risen and were $305 billion at an annual rate in the latest data from 2009Q3.
Financial Crisis Inquiry Commission | Reports & Fact Sheets.
Aaa ratings during the crisis
“Throughout 2006 and the first half of 2007, Moody’s continued to rate large volumes of new CDOs and RMBS despite market events suggesting a continued rise in delinquency and foreclosure rates and mass downgrades of CDOs and RMBS. It was not until the summer of 2007, around the time of the first wave of mass downgrades of RMBS and CDOs, that the amount of new issuances began to decline. Moody’s gave Aaa ratings to billions of dollars of new CDOs and RMBS even after those mass downgrades. Out of a total of $119 billion in RMBS rated since the downgrades of July 10, 2007, 90% were rated Aaa. Similarly, out of a total of $51 billion in CDOs Moody’s rated since July 10, 2007, 88% were rated Aaa.
Financial Crisis Inquiry Commission | Reports & Fact Sheets.
Rating agencies
The first securities ratings were issued in 1909, when John Moody published a book of ratings for U.S. railroad bonds.
“structure of the industry [changed] in the 1970s from a subscriber pays model, in which bond investors pay the agencies for access to their analysis and ratings, to an issuer pays model, in which the bond issuers choose and pay the RA’s that rate their bonds.”
“In 1975, when the SEC began relying on credit ratings to determine the capital adequacy of brokerdealers, it recognized S&P, Moody’s, and Fitch as nationally recognized statistical rating organizations (NRSROs).”
“ratings agencies have acquired strong defenses against being held liable for erroneous ratings through private litigation. Most prominently, Rule 436(g)(1) of the Securities Act of 1933 explicitly exempts them from liability for misstatements made in connection with securities registration statements.”
Financial Crisis Inquiry Commission | Reports & Fact Sheets.
Commercial mortgage-backed securities
Wall Street is trying to revive the market for commercial mortgage-backed securities. Less than $1 billion of the debt has been sold this year, compared with $232.4 billion in 2007 when sales peaked, according to data compiled by Bloomberg.
via BofA, Goldman Said to Offer $5 Billion Hilton Debt (Update1) – BusinessWeek.
China’s oil consumption
China the world’s second-largest oil consumer, behind the United States,
According to the Institute for the Analysis of Global Security, China’s oil consumption is growing by 7.5 per cent a year, which is seven times faster than U.S. growth.
it switched in 1993 to being a net importer of oil from a net exporter. Today, China produces about four million barrels of oil a day, but burns through about 7.6 million barrels a day.
via Nickel’s nice but oil is the China card – The Globe and Mail.
Retail space $
Montreal’s Saint Catherine Street and Toronto’s Bloor Street districts were the priciest in [Canada], with average lease rates at $294.12 (U.S.) a square foot. The cost of space placed the cities in a tie for 32nd place in the world, sandwiched between Honolulu and Amsterdam.
Globally, space along the Champs Élysées in Paris was the most expensive at $1,255.90 a square foot. New York’s Fifth Avenue, Hong Kong’s Russell Street and London’s Bond Street all saw rents higher than $1,100 a square foot.
via Luxury storefronts at rock-bottom prices – The Globe and Mail.
enter stage left
A Conservative government Message Event Proposal (MEP) system template typically includes the following subtitles: Event, Event type, Desired headline, Key messages, Media lines, Strategic objectives, Desired soundbite, Ideal speaking backdrop, Ideal event photograph, Tone, Attire, Rollout materials, Background, and Strategic considerations.
via Harper’s message tool reveals ‘hyper-extreme’ political control: critics – The Globe and Mail.
Change in the definition of big cap
“cap,” which refers to market capitalization is calculated by multiplying the price of a stock by the number of shares outstanding (thus excluding bonds so not an exact valuation metric). In the early 1980s, a big-cap stock had a market cap of only $1-billion.
Generally categories are now defined as (with percent (#) of all stocks in parentheses):
Mega Cap – Market cap of $200-billion (U.S.) and greater (0.1%)
Big Cap – $10-billion and greater (3.5%)
Mid Cap – $2-billion to $10-billion (7.5%)
Small Cap – $300-million to $2-billion (17.6%)
Micro Cap – $50-million to $300-million (18.8%)
Nano Cap – Under $50-million (15.8%)
US bank assets: tbtf?
There are 23 U.S.-based bank holding companies that exceed the $100b asset threshold, Federal Reserve data show. Four — Bank of America, JPMorgan Chase, Citigroup and Wells Fargo — hold more than $1 trillion assets. Three of those four hold more than $2 trillion.
Huff post – June 5, 2010
U.S. Business in China
a survey from the American Chamber of Commerce in China puts the percentage of U.S. companies that feel unwelcome in the Chinese market at 38 percent, up 15 points from 23 percent just two years ago in 2008.
via Asia Unbound » Blog Archive » Where’s the Tipping Point in U.S.-China Relations?.
Exxon tally
Counting the cost of Exxon Valdez
330
Number of civil lawsuits filed after Exxon Valdez oil tanker ran aground off the coast of Alaska in March 1989.
$125-million (U.S.)
Amount Exxon paid in fines and restitution for crimes under U.S. environmental laws.
$900-million
Amount Exxon agreed to pay to the U.S. and Alaskan governments to be used to repair damage to natural resources, such as animal habitats.
$287-million
Amount originally demanded from Exxon by jury for compensatory damages in civil lawsuits in 1994.
$5-billion
Amount awarded in punitive damages, which Exxon appealed.
$507-million
Amount awarded in punitive damages by U.S. Supreme Court; including interest, it came to about $1-billion.
$15,000
Average award to 33,000 class action claimants against Exxon.
Source: Brad Marten, Marten Law.
Canada’s economy
stronger-than-expected 6.1-per-cent rate reported by Statistics Canada Monday was more than twice the rate of growth in the United States in the same period..total gross domestic product is now just 0.4 per cent below pre-recession levels on a quarterly basis.
via Canada’s economy keeps roaring ahead – The Globe and Mail.
China a player in supercomputing
Nebulae machine at the National Super Computer Center in Shenzhen, was ranked second on the biannual Top 500 supercomputer list published at the International Supercomputing Conference in Hamburg, Germany.
For the first time, a second Chinese supercomputer appears in the list of the top ten fastest machines.
The fastest is the US owned ‘Jaguar’ which has a top speed of 1.75 petaflops (one petaflop is the equivalent of 1,000 trillion calculations per second.)
via BBC News – China aims to be become supercomputer superpower.
European finance
In its twice-yearly review of risks facing the euro area, the E.C.B. expressed particular concern about banks’ need to refinance some €800 billion, or $980 billion, in long-term debt by the end of 2012.
via Europe’s Banks at Risk From Slower Growth, Report Says – NYTimes.com.
China’s labour shift
In the year after China’s Labour Contract Law took effect in early 2008 the number of disputes doubled, according to a study by the International Labour Rights Forum. The law set standards for labour contracts, use of temporary workers, layoffs and other conditions and has raised workers awareness of their legal rights.
That study, released earlier this month, found that companies that had not been in compliance with earlier labour standards faced a 33 per cent average increase in wages after the law’s implementation.
Europe
The European economic bloc, established by the Maastricht Treaty of 1993 that ushered in the euro set up a monetary union, represents half a billion people – 7 per cent of world consumers – and a fifth of world trade.
The recent agreement by member governments to put up $1-trillion (U.S.) in loans and guarantee to backstop troubled governments remains only a short-term fix to stave off bond market panic.
via Europe’s crisis puts EU future in doubt – The Globe and Mail.
Jeff Rubin: Oil prices
When global credit evaporated in the wake of the 2008 subprime mortgage crisis, oil prices tumbled along with the values of the world’s stock markets. Seemingly overnight the price of a barrel of oil plunged from an all-time high of $147 (U.S.) a barrel to as low as the high $30s.
‘If $40 is as cheap as oil gets in the most severe recession, what happens to oil prices when the economy picks up again?’
via Jeff Rubin: Oil prices aren’t the effect of the recession; they’re the cause – The Globe and Mail.
All of the scientists, and all the kings men, could not put the seabed together again
The spill is the worst in U.S. history — exceeding even the 1989 Exxon Valdez disaster off the Alaska coast — and has dumped between 18 million gallons (68 million litres) and 40 million gallons (150 million litres) into the Gulf, according to government estimates. The leak began after the Deepwater Horizon drilling rig exploded on Apri 20, killing 11 people.
The latest effort to curb that disaster known as the “top kill” failed after engineers tried for three days to overwhelm the crippled well with heavy drilling mud and junk 5,000 feet (1,500 metres) underwater.
After another failure, BP scrambles for next solution – The Globe and Mail.
Gulf of Mexico oil leak
[As of May 30] at least 20 million gallons have now spilled into the Gulf of Mexico, affecting more than 70 miles (110km) of Louisiana’s coastline.
via BBC News – Gulf of Mexico oil leak ‘worst US environment disaster’.
anti-incumbent midterm elections?
Members of Congress face the most anti-incumbent electorate since 1994, with less than a third of all voters saying they are inclined to support their representatives in November
via Poll finds Americans in an anti-incumbent mood as midterm elections near.
“birthers”
Asked an open-ended question about where President Obama was born, 14 percent of Americans say he was born abroad
American Euro-dependence
The 16 countries that use the euro represent around 13 percent of total United States exports.
The major southern countries of Europe, including Greece, Italy, Spain and Portugal, together account for less than 1.5 percent of total United States exports. And Greece and Portugal, where budget problems are most pressing, represent only two-tenths of 1 percent of the total.
via Fundamentally – How Far Will Europe’s Economic Tremors Reach? – NYTimes.com.
What more for NK sanctions?
Japan, which already bans trade with the North, said Friday that it would lower the limit on the amount of undeclared cash that could be carried to North Korea to 100,000 yen, or about $1,100, from the current 300,000 yen, or $3,300.
The maximum amount that can be sent to North Korea without being reported to the Japanese government was lowered to $33,000 from $110,000.
US Student debt crisis?
According to the College Board’s Trends in Student Aid study, 10 percent of people who graduated in 2007-8 with student loans had borrowed $40,000 or more. The median debt for bachelor’s degree recipients who borrowed while attending private, nonprofit colleges was $22,380.
The Project on Student Debt, a research and advocacy organization in Oakland, Calif., used federal data to estimate that 206,000 people graduated from college (including many from for-profit universities) with more than $40,000 in student loan debt in that same period. That’s a ninefold increase over the number of people in 1996, using 2008 dollars.
via Your Money – Another Debt Crisis Is Brewing, This One in Student Loans – NYTimes.com.
US troop deployments
For the first time since the United States led the invasion of Baghdad during the Bush administration in 2003, there were more American troops deployed to Afghanistan than Iraq — 94,000 compared with 92,000.
The total number of American troops in Afghanistan is expected to reach 98,000 by late this summer, a tripling since President Obama took office in January 2009.
via At War: Notes From the Front Lines – At War Blog – NYTimes.com.
News in Pakistan
“Eight years ago Pakistan had one television news channel. Now there are 26 news channels, half of which broadcast 24 hours a day. But most of what is on offer hardly qualifies as rigorous, fact-based news.”
via At War: Notes From the Front Lines – At War Blog – NYTimes.com.
Strike at Honda Plant
“Many workers at other [auto] factories in southeastern China already earn $300 a month, but they do so only through considerable overtime. And even that higher income is not enough to embark on the middle-class dream in China of owning a small apartment and subcompact car.
via Strike at Honda Plant Highlights Pay Gap in China – NYTimes.com.
Arms sale to Tiawan
On Friday Jan 29, 2010 the Obama administration said it would sell a package of $6.4-billion of missiles, helicopters and other military hardware to Taiwan.
G.A.M. Feb 2, 2010
Deficit
U.S budget 2010: another $1.6-trillion deficit added to the debt. By the end of 2010, public debt in the United States will equal roughly 62 per cent of annual economic output. (Up from 50 per cent in 2008.)
G.A.M Feb. 2, 2010
China interest rates and Inflation
The People’s Bank of China announced Thursday that the yield from its weekly sale of three-month central bank bills had inched up to 1.3684 percent. The yield had been stuck at 1.328 percent since Aug. 13.
An increase of less than 0.05 of a percentage point might sound small, but economists said it was a harbinger of more interest rate increases to come.
via To Slow Growth, China Raises an Interest Rate – NYTimes.com.
Kabul in crisis
Bold Attacks Shake Kabul – The New York Times > World > Slide Show > Slide 7 of 13.
“50 yards from the palace of President Hamid Karzai”
Federal Reserve earned $45 billion in 2009
The Fed will return about $45 billion to the U.S. Treasury for 2009, according to calculations by The Washington Post based on public documents. That reflects the highest earnings in the 96-year history of the central bank. The Fed, unlike most government agencies, funds itself from its own operations and returns its profits to the Treasury.
The largest previous refund to the Treasury was $34.6 billion, in 2007.
via Federal Reserve earned $45 billion in 2009 – washingtonpost.com.
Positivism and empiricism
Positivism - “A system recognizing only that which can be scientifically verified or logically proved, and therefore rejecting metaphysics and theism.” OED
Logical positivism – “A form of positivism which considers that the only meaningful philosophical problems are those which can be solved by logical analysis.” OED
Empiricism – “The theory that all knowledge is derived from experience and observation.” OED
auto bailout
American taxpayers ponied up some $40-billion last year. The federal government in Canada, along with the provincial government of Ontario, anted up $14.5-billion in direct taxpayers’ assistance to GM and Chrysler—a bailout equal to half those jurisdictions’ entire annual corporate tax collection.
via A massive public investment in obsolescence – The Globe and Mail.
T bills
China holds $776.4-billion (U.S.) in Treasury bills
Globeandmail Sept 15, 2009
China job loss 2009
China: estimated 20 million to 30 million jobs lost early this year (2009) amid widespread factory closings.
Globeandmail Sept 15,2009
Afghanistan
2500 Afghan polling sites (10%) for recount according to electorial complaints commission.
Legislation
In the late 1940s and early 1950s, 96 per cent of legislation introduced into Parliament became law. In Lester B Pearson’s minority governments, the figure was 91 per cent. Brian Mulroney only got 73 per cent of his agenda through Parliament; for Stephen Harper, the figure is 48 per cent. Globe and Mail Sept. 14 2009
live-blogging justice
Reporters won the right Monday to live-blog and send instant news stories from their handheld devices during the trial of Ottawa Mayor Larry O’Brien.
via globeandmail.com: Media can file from inside O’Brien trial.
first step toward climate change regulations
The EPA on Friday declared that carbon dioxide and five other greenhouse gases sent off by cars and many industrial plants “endanger public health and welfare,” setting the stage for regulating them under federal clean air laws.
In addition to carbon dioxide, the EPA finding covers five other emissions that scientists believe are warming the earth when they concentrate in the atmosphere: Methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6).
via globeandmail.com: Washington takes first step toward climate change regulations.
U.S. Defense Spending
The United States spent a staggering $696 billion on defense in 2008, more than at any time since World War II.
including 1952: combat operations against the Communist Chinese in Korea.
including Vietnam: 550,000 troops in the field.
including: the height of the Reagan defense buildup.
via The Fine Print on Defense Spending – Council on Foreign Relations.
U.S. Defense Spending
The budget unveiled by Secretary Gates represents a $20 billion increase over 2009
via The Fine Print on Defense Spending – Council on Foreign Relations.
China savings and domestic consumtion
Despite claims of a rising middle class, estimated at 100 million to 300 million, the current purchasing power of these consumers is still fairly weak. Household savings and wages have actually been shrinking relative to the overall growth in the economy, even during the largest expansion in recent economic history. Domestic consumption, according to official Chinese statistics has steadily declined from 46 percent of gross domestic product (GDP) in 2000 to 36 percent in 2006.
via Can China Lift Japan Out of Recession? – Council on Foreign Relations.
U.S. China Japan
China surpassed the United States as Japan’s top export market for two straight months in 2008. By the end of the year, export growth to China stood at 16 percent (versus 17.6 percent for the year with the United States).
via Can China Lift Japan Out of Recession? – Council on Foreign Relations.
India’s National Elections
India this week launches its fifteenth national elections since its independence in 1947. The process will last for nearly a month with the election officials going from one region to the other. More than 700 million people are eligible to vote.
via India’s National Elections and Improved U.S. Relations – Council on Foreign Relations.
Junk bonds signal revival of credit
Sales of U.S. mutual funds that invest in high-yield debt have surged for four successive weeks, totalling more than $2-billion.
The boom in high-yield bond offerings, coming on the heels of a surge last month in sales of higher-grade debt, is yet another sign that investors are growing more confident in the economic outlook and that the worst of the credit crunch is behind global markets.
via reportonbusiness.com: Junk bonds signal revival of credit.
Sovereign Wealth Funds
A new Working Paper published by Harvard Business School examines the direct private equity investment strategies of sovereign wealth funds (SWFs) and their relationship to the funds’ organizational structures.
Key findings:
* SWFs seem to engage in a form of trend chasing, since they are more likely to invest at home when domestic equity prices are higher, and invest abroad when foreign prices are higher.
* Funds see the industry P/E ratios of their home investments drop in the year after the investment, while they have a positive change in the year after their investments abroad.
* SWFs where politicians are involved have a much greater likelihood of investing at home than those where external managers are involved. At the same time, SWFs with external managers tend to invest in lower P/E industries, which see an increase in the P/E ratios in the year after the investment.
* By way of contrast, funds with politicians involved invest in higher P/E industries, which have a negative valuation change in the year after the investment.
Taken as a whole, two competing interpretations can be offered for these results, the paper concludes.
It may be that funds investing more heavily in their domestic markets, particularly those with the active involvement of political leaders, are more sensitive to the social needs of the nation. As a result, they might be willing to accept investments which have high social returns but low private ones. Since the social returns are not easily observable to us, it would appear that these funds are investing in industries with lower performance.
The alternative interpretation would suggest that greater investment at home is a symptom of poor investment decisions, since the funds are prone to home bias or else to have decisions distorted by political or agency considerations.
The Investment Strategies of Sovereign Wealth Funds
Shai Bernstein, Josh Lerner, and Antoinette Schoar
via Sovereign Wealth Funds Engage in ‘Trend Chasing’ — Seeking Alpha.
Congressional Budget Office estimates
According to the latest congressional estimates, Obama’s budget would generate unsustainably large deficits averaging almost $1-trillion a year over the next decade, significantly worse than predicted by the White House just last month.
The Congressional Budget Office figures, obtained by The Associated Press Friday, predict Obama’s budget will produce $9.3-trillion worth of red ink over 2010-2019.
Canada-China
Canadian exports to China rose from $4.2-billion in 2001 to $9.5-billion in 2007, whereas Chinese exports to Canada have more than tripled in the same period, from $12.7-billion to $38.3-billion in 2007. Still, the relative percentage is tiny for both countries: roughly 2 per cent of Canada’s total exports, 3 per cent of China’s. (Over the same years, Australia’s exports to China soared from $5.2-billion to $16.4-billion.
http://www.theglobeandmail.com/servlet/story/RTGAM.20090409.wcoessay0411/BNStory/specialComment/home
US attacks inside Pakistan
US attacks inside Pakistan during 2009:
• US Predator kills four in South Waziristan strike
• US strikes Haqqani Network in North Waziristan
April 4, 2009
• US launches first strike in Arakzai tribal agency
April 1, 2009
• Latest US strike targets al Qaeda safe house in North Waziristan
March 26, 2009
• US airstrike kills 8 in Baitullah Mehsud’s hometown
March 25, 2009
• US launches second strike outside of Pakistan’s tribal areas
March 15, 2009
• US missile strike in Kurram agency kills 14
March 12, 2009
• US airstrike kills 8 in South Waziristan
March 1, 2009
• US airstrike in Pakistan’s Kurram tribal agency kills 30
Feb. 16, 2009
• US Predator strike in South Waziristan kills 25
Feb. 14, 2009
• US strikes al Qaeda in North and South Waziristan
Jan. 23, 2009
• US hits South Waziristan in second strike
Jan. 2, 2009
• US kills 4 al Qaeda operatives in South Waziristan strike
Jan. 1, 2009
via US Predator kills 4 in South Waziristan strike – The Long War Journal.
Taliban in NWFP & FATA
As of last summer, al Qaeda and the Taliban operated 157 known training camps in the tribal areas and the Northwest Frontier Province.
via US Predator kills 4 in South Waziristan strike – The Long War Journal.
China-based cyber spy plot
[Canadian] researchers found some 1,295 infected computers in 103 countries, including one machine in Canada, though its location couldn’t be pinpointed.
Of those infected machines, the researchers consider about 30 per cent to be “high-value” targets, such as computers in ministries, embassies, news networks and non-governmental organizations.
The compromised computers included, among many others, the ministry of foreign affairs of Iran; the embassies of India, South Korea, Indonesia, Thailand, Taiwan, Portugal, Germany and Pakistan; the ASEAN Secretariat; the Asian Development Bank; news organizations and an unclassified computer located at NATO headquarters.
In particular, the investigation finds that computers belonging to Tibetan organizations were manually targeted and compromised to an unprecedented degree, giving those behind the malicious infection significant access to sensitive information from within the Tibetan community.
The report cited evidence that the Dalai Lama’s private office computers had been the subject of attacks.
via globeandmail.com: Behind the China-based cyber spy plot.
NATO
Article V of NATO’s 1949 treaty, declares that “an armed attack against one ¡K shall be considered an attack against all” and that each is obligated to fight in defence of the other.
Ignatieff-Harper poll
A Canadian Press/Harris-Decima survey indicates Ignatieff and Harper have similar levels of support, but Mr. Harper’s negative ratings are much higher.
It found that 44 per cent of respondents had a favourable view of Mr. Harper, while 45 per cent were negative.
Mr. Ignatieff got a favourable rating from 45 per cent, but only 26 per cent held a negative view.
via globeandmail.com: Canadians warming to Ignatieff, poll suggests.
Afghanistan strategy
In Afghanistan, Mr Obama said a further 4,000 US troops would help train up the Afghan army and police – in addition to the 17,000 troops whose redeployment to Afghanistan has already been announced.
They will join some 38,000 US forces already on the ground.
Mr Obama said more help for training would also be sought from Nato allies, in order to build an Afghan army of 134,000 and a police force of 82,000.
Ottawa’s budget
Canada’s federal budget watchdog warns that the worsening recession has rendered the Harper government’s January economic forecasts obsolete, predicting Ottawa will slide $10-billion deeper into deficit over the next 24 months -
Ottawa’s deficit will hit $38-billion for the 2009-10 fiscal year beginning April 1, instead of $33.7-billion as the Tories projected in the Jan. 27 budget. That’s only $1-billion short of the record $39-billion deficit racked up by the Mulroney government in 1992-1993
via globeandmail.com: Ottawa’s budget made obsolete by downturn, watchdog says.
Zhou Xiaochuan’s Statement on Reforming the International Monetary System – Council on Foreign Relations
The People’s Bank of China released this statement by Zhou Xiaochuan, the central bank’s governor, on March 23, 2009. It calls for replacing the dollar as the dominant world currency and creating “an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run”.
AIG [bonus] loophole
After denying having anything to do with crafting language in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses, Sen. Christopher Dodd admitted that he and the Treasury Department were responsible for the loophole.
The $787 billion stimulus bill included a measure from Dodd to limit executive bonuses strictly. But slipped inside at the last minute was an exemption for bonuses agreed to “on or before February 11, 2009.” That allowed AIG to go ahead with its controversial bonuses.
On Tuesday, Dodd denied that he had anything to do with adding the language.
US reassures China on investment
The White House has sought to assure China that its $1 trillion (£0.7tn) in investments in the United States is safe despite the economic downturn.
via BBC NEWS | Asia-Pacific | US reassures China on investment.
G-20 meeting
US Treasury Secretary Tim Geithner has proposed tripling the IMF’s resources to $750bn to ensure it can help all those caught in the crisis.
Japan has already offered $100bn. The EU has backed an increase to $500bn and is considering a loan of $100bn.
via BBC NEWS | Business | G20 ministers meet amid divisions.
‘Canada’s dirty subprime secret’ – GAM
A Globe and Mail investigation into more than 10,000 foreclosure proceedings has uncovered a burgeoning subprime mortgage problem that many, including Prime Minister Stephen Harper, have insisted does not exist in Canada.
via reportonbusiness.com: Canada’s dirty subprime secret.
Chinese ships ‘harass’ US vessel
The Pentagon reported three other naval incidents involving China last week:
* On Wednesday, a Chinese Bureau of Fisheries Patrol vessel used a high-intensity spotlight to illuminate the ocean surveillance ship USNS Victorious in the Yellow Sea and, the next day, a Chinese Y-12 maritime surveillance aircraft conducted 12 fly-bys of Victorious
* On Thursday, a Chinese frigate approached Impeccable without warning and crossed its bow at a close range of approximately 100m (yards), after which a Y-12 aircraft conducted 11 fly-bys. The frigate later crossed the US ship’s bow again
* On Saturday, a Chinese intelligence collection ship challenged Impeccable over bridge-to-bridge radio, calling her operations illegal and directing her to leave the area or “suffer the consequences”.
via BBC NEWS | Asia-Pacific | Chinese ships ‘harass’ US vessel.
U.S. Firms in China See Downturn
Over a third of U.S. companies in China say they expect their revenues to drop this year…
35% of Amcham [America chamber of commerce in China] members expect revenue to decrease this year, up sharply from 13% who saw a fall last year. In all, 39% of respondents are postponing or canceling planned investments this year, while 21% expect to shrink their China work force
![[u.s. china business and Chamber of Commerce]](http://s.wsj.net/public/resources/images/AI-AU063_CAMCHA_NS_20090309173217.gif)
New York Times fire sale begins
The New York Times Co. has sold most of its home office for $225-million (U.S.), padding the newspaper publisher’s financial cushion amid a sharp drop in revenue that has forced management to scrounge for more money.
The deal announced Monday covers 21 of the building’s 52 floors. That space, about 750,000 square feet, became the Times’ headquarters when the midtown Manhattan offices opened in 2007.
via reportonbusiness.com: New York Times raises another $225-million in office sale.
disarmament
Russia’s foreign minister called Saturday for an end to a decade of failure in global disarmament talks, seeking to build on an upbeat meeting with U.S. Secretary of State Hillary Clinton
via globeandmail.com: Russia calls for renewed global disarmament talks.
(block with a red button marked ‘reset’ in English and ‘overload’ in Russian that US Secretary of State Hillary Clinton handed to Russian Foreign Minister Sergei Lavrov during a meeting on March 6, 2009 in Geneva.)worst rate of job loss since 1945
Unemployment in the United States has reached a 26-year high and the recession is claiming jobs at a pace not seen since 1945, with no end in sight.
A total of 651,000 jobs were lost last month in the U.S. and the unemployment rate increased from 7.6 per cent to 8.1 per cent, the highest level since December, 1983, according to figures released Friday by the Labour Department. Canada’s unemployment rate is 7.2 per cent.
via reportonbusiness.com: U.S. posts worst rate of job loss since 1945.
US airstrike kills eight in South Waziristan
Unmanned US Predator [drone] attack aircraft fired two Hellfire missiles at a Taliban compound in South Waziristan today. Eight people have been reported killed and nine were wounded in today’s airstrike, but no senior Taliban or al Qaeda leaders have been reported killed at this time
via US airstrike kills eight in South Waziristan – The Long War Journal.
China adds $10-billion to commodity budget
China will spend an extra $10-billion (U.S.) to bulk up its commodity reserves and lift farm support spending by 20 per cent this year, measures that should aid local grain prices and may boost global metals and oil markets. As China strains to maintain its 8 per cent economic growth target
The budget will raise spending on reserves of grain, edible oils and materials by 61 per cent to 178.1-billion yuan ($26.0-billion), or 4.1 per cent of its budget, the Finance Ministry announced at the annual National People’s Congress on Thursday.
That includes 78.341-billion yuan ($11.5-billion) to stimulate domestic demand by expanding reserves of important materials, such as grain, edible oils, crude oil, non-ferrous metals and specialty steel, and developing storage facilities.
China has already been buying up commodities it lacks such as copper, crude oil and soybeans and helping struggling producers of other goods in oversupply, such as aluminum, zinc and cotton, by buying their production at an over-the-market price.
via reportonbusiness.com: China adds $10-billion to commodity budget.
China military spending
China said it would increase military spending by 14.9% this year to 480.6bn yuan ($70.2bn).
via BBC NEWS | Asia-Pacific | China ‘faces most difficult year’.
Obama calls for Health overhaul
Obama is seeking to set aside $634 billion in a health-care reserve fund over the next 10 years to help move the country closer to the goal of universal coverage. He also would require senior citizens making more than $170,000 annually to pay a greater share of their prescription drug costs under Medicare.
via Obama calls for overhaul of U.S. health care system – CNN.com.
China government spending
China promised a vigorous government spending program, with increased money for infrastructure, social programs and tax cuts to overcome the country’s brewing economic crisis.
[$585bn (£413bn) investment programme]
The massive cash outlays will allow the government to aim for economic growth of “about 8 per cent,” Premier Wen Jiabao said in a speech to open the National People’s Congress.
via globeandmail.com: China promises massive government spending.
NATO-Russia resume ties
NATO alliance agreed on Thursday to resume formal ties with Russia suspended last year after Moscow’s military thrust into Georgia
Canada has less friends on facebook
Gallup poll suggests 36 per cent of Americans believe Great Britain to be their “most valuable ally.” Canada came in second at 29 per cent.
via globeandmail.com: We’re seen as America’s second best friend.
US jobs
The U.S. unemployment rate in January jumped to 7.6 per cent, the highest in more than 16 years…The government will release February jobs data on Friday and many economists expect the unemployment rate rose to 7.9 per cent while employers cut nearly 650,000 jobs.
copy tracer
Tynt, a start-up that allows publishers to monitor and track when users copy content from a web site, has secured $3.9 million in series A funding
Tynt’s product, Tracer, lets website publishers see what content is being copied and pasted off their sites. Each time a user copies content from a website and pastes it into an email, blog or website, Tracer automatically adds a URL link back to the original site’s content
via TechCrunch.
U.S. External Debt
The following chart compares the estimated Treasury and Agency holdings of China and Japan.
via Maurice R. Greenberg Center for Geoeconomic Studies – Council on Foreign Relations.
The U.S. Economic Stimulus Plan
Obama’s Stimulus Plan
The stimulus plans adopted by both chambers of Congress have some notable differences but also overlap considerably. Both aim to stimulate employment, certain critical economic sectors, and U.S. consumer spending. The House measure calls for spending roughly $505 billion on new projects and about $282 billion in tax cuts. The following are areas with some of the most significant outlays:
* Energy, including more than $30 billion spent on energy efficiency and renewable energy projects, as well as electrical grid improvements; and $5 billion to weatherize low-income homes;
* Science and technology, including $10 billion for new scientific facilities and $7 billion to improve broadband Internet access in rural areas;
* Infrastructure, including nearly $30 billion for highways; $8 billion for the development of high-speed rail; and $19 billion for clean water and flood control;
* Education, including $44 billion for local school districts; $25 billion to school districts for special education and funding the No Child Left Behind law for students in kindergarten through twelfth grade; and $15.6 billion to broaden the federal Pell Grant program, which gives need-based grants to fund education;
* Health care, including $87 billion for Medicaid; $20 billion to improve health information technology; and about $10 billion for health research and construction of facilities for the National Institutes of Health.
The package also includes a provision requiring that iron, steel, and other manufactured goods used in public construction projects be produced in the United States. But it also says the “Buy American” policy shall not violate U.S. obligations under international trade agreements.
No Republicans voted for the House measure and only three Republicans voted for the Senate version.
via The U.S. Economic Stimulus Plan – Council on Foreign Relations.
AIG
Insurance giant American International Group reported a stunning $62 billion quarterly loss on Monday
AIG’s loss for the full year was even more dramatic — $99 billion. In 2007, the company reported a profit of $9.3 billion.
via CNN Political Ticker: All politics, all the time – Blogs from CNN.com.
U.S. offers $900 million to Palestinians
United States has offered more than $900 million to help the Palestinian people, particularly those in Gaza, Secretary of State Hillary Clinton announced Monday.
India’s Economic Growth
India’s economy grew at the slowest rate in almost six years, 5.3% in the quarter ended Dec. 31 (2009)
Cost of Afghan mission jumps to $11.3-billion
the direct cost of Canada’s 10-year involvement in Afghanistan is an estimated $11.3-billion.
It’s the first complete fiscal accounting of the mission, which Prime Minister Stephen Harper had previously suggested would cost about $8-billion by the time it ends in 2011.
via globeandmail.com: Cost of Afghan mission jumps to $11.3-billion.
Canadian Government secrecy
The federal Information Commissioner is warning that Canadians’ ability to get information from their government has reached a dire state.
The Harper Conservatives now routinely delay requests for government documents – a right of Canadians under the law – well beyond the 30 days that the Access to Information Act requires.
Six out of the 10 governments departments reviewed by the commissioner’s office received failing grades.
via globeandmail.com: Government secrecy ‘grim,’ watchdog says.
US Job Claims
Jobless claims spike to 26-year high
Number of Americans applying for first-time unemployment benefits rises to 667,000. Continuing claims top 5 million for the first time.
TicketMaster Live Nation – gate
CEOs for the music industry giants TicketMaster and Live Nation failed to reassure Senators Tuesday that the merger of the ticketing and event-promotion companies would lower concert ticket prices and benefit the public.
“I am disturbed by your unwillingness to discuss the main reason for the merger,” Sen. Herb Kohl D-Wisconsin said as he finished his questioning of TicketMaster CEO Irving Azoff at Tuesday afternoon’s hearing.
via TicketMaster and Live Nation Face the Music in Congress | Epicenter from Wired.com.
Europe’s Energy Predicament
In November 2008, the European Commission noted that, despite plans to use 20 percent more renewable energy by 2020, net imports of fossil fuels were expected to remain constant through 2020 .
via Europe’s Energy Predicament – Council on Foreign Relations.
U.S. assistance to Pakistan
The U.S. Defence Department’s effort to help Pakistan secure its border with Afghanistan and root out Taliban fighters is underfunded by as much as 73 per cent
The Defence Department’s “Security Development Program” is aimed at training and equipping more than 10,000 Pakistani “Frontier Corps” fighters for counterinsurgency tasks and is considered a top priority among U.S. officials.
The program received $62.5-million (U.S.) so far this budget year, which began Oct. 1. But defence officials say $167.5 million more is needed before the next budget year begins this fall, according to GAO.
via globeandmail.com: Military aid for Pakistan short of money.
U.S. Unit in Pakistan
BARA, Pakistan — More than 70 United States military advisers and technical specialists are secretly working in Pakistan to help its armed forces battle Al Qaeda and the Taliban in the country’s lawless tribal areas…
the Americans are mostly Army Special Forces soldiers who are training Pakistani Army and paramilitary troops, providing them with intelligence and advising on combat tactics, the officials said. They do not conduct combat operations, the officials added. They make up a secret task force, overseen by the United States Central Command and Special Operations Command. It started last summer
via U.S. Unit Secretly in Pakistan Lends Ally Support – NYTimes.com.
EU’s plan for blanket financial regulation
“BERLIN — European leaders backed sweeping new regulations for financial markets and hedge funds at a summit Sunday in Berlin as politicians and nations scrambled to tame the global economic crisis.
“All financial markets, products and participants including hedge funds and other private pools of capital which may pose a systematic risk must be subjected to appropriate oversight or regulation,” Ms. Merkel said in a statement released on behalf of the summit members, following the talks.
Top officials from Britain, France, Germany, Italy, Luxembourg, Spain, the Netherlands and Czech Republic agreed on seven key points during their one-day meeting”
via reportonbusiness.com: EU backs blanket financial regulation.
February 22, 2009
Clinton’s (economic) visit to China
“’We have every reason to believe that the United States and China will recover and together we will help lead the world recovery,’ [Clinton] told reporters… Mr. Yang said China wants its foreign exchange reserves – the world’s largest at $1.95-trillion (U.S.) – invested safely. ‘We are ready to continue to talk with the U.S. side,” Mr. Yang said.’”
via globeandmail.com: Economic woes trump rights as Clinton visits China.
market turmoil
On Thursday, the Dow broke through its Nov. 20 low of 7,552.29, and closed at its lowest level since Oct. 9, 2002, the depths of the last bear market.
EU stimulus
The U.K. injected $53 billion (37 billion pounds) into its banks last October…
In early January, Germany approved more than $80 billion (€60 billion) in extra spending and tax cuts through 2010. In November and this month, Italy passed stimulus packages totaling $9 billion…
Wall Street Journal: Feb 19, 2009
Energy map of Eurasia
Council Special Report No. 43
Febuary 2009
Jeffrey Mankoffnew
Shanghai Cooperation Organization and ASEAN
Shanghai Cooperation Organization (SCO) includes China, Russia, and Central Asian countries Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.
ASEAN:
Brunei Darussalam
Cambodia1/
Indonesia
Lao PDR
Malaysia
Myanmar2/
The Philippines
Singapore
Thailand
Viet Nam
Global Military spending
The top 20 countries ranked by global military expenditure in 2007, in millions of constant 2005 US dollars
Global military expenditures for select countries in 2006, as percentage of gross domestic product (GDP)
PBS.org:
http://www.pbs.org/wnet/wideangle/episodes/japans-about-face/data-global-military-expenditures/1220/
China’s military spending
“China says its 2008 defense budget is $61 billion, though the Pentagon has historically challenged Beijing’s reported figures. In its annual report to Congress, the U.S. Defense Department estimated China’s total military-related spending for 2007 to be between $97 billion and $139 billion, as compared to $52 billion reported by China. All that spending has gone to building a sophisticated, modern military: a large, increasingly capable submarine fleet, an air force stocked with Russian warplanes, and technical strides which have improved China’s ballistic missile arsenal, as well as satellite surveillance, radar, and interception capabilities.”
Jayshree Bajoria, Countering China’s Military Modernization Council on Foreign Relations Feb 4 2009: http://www.cfr.org/publication/9052/countering_chinas_military_modernization.html
China- Russia energy deal: $25 billion
“Russia and China signed a $25-billion energy deal in Beijing on Tuesday that will see the Asian country secure oil supplies from Moscow for the next 20 years in return for loans…”
“China’s Development Bank will lend $15-billion (U.S.) to Rosneft, Russia’s state-owned oil major, and $10-billion to Transneft..,”
“Russia, the world’s No. 2 oil exporter after Saudi Arabia, promised in return to supply 15 million tons of oil (300,000 barrels per day) annually for 20 years”
Globe and Mail Feb 17, 2009: http://www.theglobeandmail.com/servlet/story/RTGAM.20090217.wrussiachinaenergy0217/BNStory/energy/home
Chinalco to invest $19.5-billion in Rio Tinto
“Aluminum Corp. of China said it will invest $19.5-billion (U.S.) in Rio Tinto Group, easing the Anglo-Australian miner’s heavy debt burden while securing Chinese access to long-coveted mining resources….China’s biggest overseas investment so far“
Globe and Mail (Associated Press) February 12, 2009: http://business.theglobeandmail.com/servlet/story/RTGAM.20090212.wriotinto0212/BNStory/Business/home
Canada’s First Trade Deficit Since 1976
“Canada’s trade balance sank into negative territory, recording a $458-million deficit in December. Lower commodity prices were a key factor, but the export declines were far broader than cheaper oil.
Export volumes, which exclude the effect of lower prices, fell 5.4 per cent on the month, with lower foreign sales recorded for industrial goods, agricultural and fishing products, automotive products an forestry.”
Globe and Mail February 11, 2009: http://www.globeinvestor.com/servlet/story/RTGAM.20090211.wtradeanalysis0211/GIStory/
Auto sales in China surpass U.S.
“Vehicle sales in China surpassed those in the United States last month for the first time ever…U.S. sales plunged to about 9.5 million on an annualized basis, with the Detroit Three leading the drop in that market. In Canada, deliveries crashed 25 per cent…”
“The January sales figure for the U.S. is the lowest for that month since 1963 and was surpassed by China’s seasonally adjusted annual sales of 10.7 million.”
Globe and Mail Feb 3 2009:
http://business.theglobeandmail.com/servlet/story/RTGAM.20090203.wautos04/BNStory/Business/?page=rss&id=RTGAM.20090203.wautos04
Birth defects on the rise in China
“A senior family planning official in China has noted an alarming rise in the number of babies with birth defects….he said a child was born with physical defects every 30 seconds because of the degrading environment. The report said China’s coal-rich Shanxi province had the highest rate…”
BBC News Saturday, 31 January 2009
http://news.bbc.co.uk/2/hi/asia-pacific/7863290.stm
Canadian Economic Outlook (downward revision) – Federal Budget 2009
- There is now a broad-based consensus that the Canadian economy entered a recession in the fourth quarter of 2008. Private sector forecasters expect the recession to last three quarters.
- Real GDP is now expected to contract by 0.8 per cent in 2009, compared to a forecast of 0.3 per cent growth at the time of the Statement.
- Nominal GDP is expected to fall by 1.2 per cent for 2009, compared to an increase of 0.8 per cent in the Statement.
- After taking into account the cost of the measures proposed in Budget 2009 to support the economy, the Government is projecting deficits of $1.1 billion in 2008–09, $33.7 billion in 2009–10, $29.8 billion in 2010–11, $13.0 billion in 2011–12, $7.3 billion in 2012–13 and a surplus of $0.7 billion in 2013–14.
http://www.budget.gc.ca/2009/plan/bptoc-eng.asp
Canadian Auto Industry
“Auto sales in Canada fell 1.1% to 1.636 million vehicles in 2008, punctuated by an ugly December that saw industry deliveries plunge 21% after a 10% drop in November.”
“The carnage in December spilled from one end of the industry to the other. Honda Motor Co. fared the worst among major manufacturers during the month, dropping 41% year over year. Toyota Motor Corp. fell 35.4%. Both automakers boast the country’s most popular cars, the Civic and the Corolla, proving the downturn is hitting even the industry’s former untouchables.”
Financial Post Monday, January 05, 2009
http://www.financialpost.com/story.html?id=1144473
anthropocentrism (def)
“A term from environmental political philosophy denoting a human-centred ethical system, usually contrasted with ecocentrism…The anthropocentric belief is that human beings are the sole bearers of intrinsic value or possess greater intrinsic value than non-human nature. It is therefore acceptable to employ the resources of the natural world for only human ends–a view that has come in for sustained criticism from ecocentric philosophers…”
The Concise Oxford Dictionary of Politics (2003) pp. 17-18
The Concise Oxford Dictionary of Politics (2003) pp. 17-18
Gazprom and the EU
“European Union customers pay about $500 per 1,000 cubic metres of Russian gas, though that price is set to drop in line with crude oil, which tumbled in 2008. Gas prices traditionally follow oil prices with a time lag of about six months.”Globe and Mail, January 4, 2009: Gazprom talks tough with Ukraine
corporatism (def)
“the notion of a system of interest intermediation linking producer interests and the state, in which explicitly recognized interest organizations are incorporated into the policy-making process, both in terms of the negotiation of policy and of securing compliance from their members with the agreed policy”
The Concise Oxford Dictionary of Politics (2003) pp. 121
The Concise Oxford Dictionary of Politics (2003) pp. 121
Subprime
Portion of U.S. subprime mortgage buyers since 2003 who might have qualified for a prime mortgage: 3/5
Harper’s Index Harper’s Magazine Vol.317 No. 1902: November 2008
pp. 15
Rhenish Capitalism (def)
Rhenish Capitalism
“A system of capitalism characterized by non-market patterns of coordination by economic actors and extensive state-regulation of market outcomes…. Non-market coordination refers to the engagement by firms, unions, and other social actors of a variety of associational bodies used to develop and renew economic institutions. Examples include collective wage bargaining, vocational training systems, technology transfer initiatives, and credit-based financial systems with ‘stakeholder’ patterns of corporate governance. State regulation supports non-market coordination through accepting many associational agreements as legally binding and through granting statutory bargaining rights to traditionally weak social actors.”
The Concise Oxford Dictionary of Politics (2003) pp. 466
Sino-American Trade
“Since China’s accession to the WTO in 2001, U.S.
exports of goods to China have increased by 240
percent, rising from a 2001 total of $19 billion to $65
billion in 2007, while exports from January through
September 2008 are 17 percent higher than 2007
exports during the same period.”
“China was the United States’ second largest
goods trading partner in 2007, with two‐way trade
totaling $387 billion and on track to increase by 9
percent in 2008 based on data from January through
September, while two‐way services trade totaled
$23 billion in 2007.”
United States Trade Representative. 2008 Report to Congress On China’s WTO Compliance:
December, 2008. pp. 11-12
Consumer debt growth
Between 1959 and 2008, consumer debt in the United States grew from 16 per cent of disposable income to 24 per cent; while mortgage debt grew from 54 per cent of disposable income to 140 per cent .
Niall Ferguson. The Ascent of Money: A Financial History of the World. New York: Penguin Press, 2008. pp 61.
