Review: Embracing the psychopath within 9 Nov 2012 “The Wisdom of Psychopaths” is a good read lurking within a bad one. Amidst the showboating, Kevin Dutton’s book mines brain science to make a cogent case that some psychopathic traits - seen in CEOs, traders and monks as well as serial killers - are not only necessary, but good.
O-Burma trip rewards reformists for job half done 9 Nov 2012 Including Myanmar in the president’s first post-re-election trip abroad is reward for dramatic reforms and cultivates a key ally in the U.S. pivot to Asia. But it’s sure to antagonize China’s new leaders - and could reduce pressure on Myanmar to make to make even tougher changes.
Korea needs to keep a lid on conglomerate-bashing 9 Nov 2012 The country’s three presidential hopefuls have different ideas for reining in the likes of Samsung and LG. While harsher jail terms for errant chaebol bosses are welcome, attempts to break up the behemoths amid tepid global demand brings risks for the export-reliant nation.
Obama continuity is good for China-U.S. ties 8 Nov 2012 The U.S. president’s re-election allows him to engage Beijing’s new leaders right away. Obama may have to endure aggressive rhetoric as the regime builds credibility. If he does that and builds on recent prudent diplomacy, the two superpowers’ rivalry can be constructive.
Election reveals clear calculus: 47 pct > 1 pct 8 Nov 2012 Ultra-wealthy candidates and supporters - from the billionaire Koch brothers and their man Mitt Romney to pro wrestling maven Linda McMahon - learned the hard way that money can’t buy everything in America. Voting rights can be a great equalizer in a land of income inequality.
U.S. Republicans have an immigration problem 8 Nov 2012 Mitt Romney’s praise of “self-deportation” alienated two fast-growing ethnic groups. Two-thirds of Hispanics and an even higher portion of Asians supported Obama. The anti-immigrant stance doesn’t just squander votes. It costs Republicans money and threatens U.S. growth.
U.S. deal lawyers not as valuable as they may think 8 Nov 2012 Financial markets are indifferent to the legal terms of U.S. public company mergers, new research shows. That may be because most transactions close regardless of the fine print. M&A attorneys have uses, but agonizing over detailed wording isn’t the best way to serve clients.
How to make sense of China’s leadership line-up 8 Nov 2012 When the new rulers of the Communist Party take to the stage in roughly a week, observers will be scouting for clues about China’s next ten years of development. Opaque as the process is, there are five ways the new line-up might show a change of tack.
Hu throws down gauntlet with Chinese GDP target 8 Nov 2012 The outgoing president has called for the country to double output per head by 2020. That implies annual growth of 7.3 pct to the end of the decade - a whisker below this year’s official goal. That’s only achievable if Hu’s successors make changes he and his generation didn’t.
Voters prove more predictable than markets 7 Nov 2012 The U.S. election was a triumph for more impartial pollsters. They got it right, using the same sort of statistical analysis which failed to anticipate the credit crunch. Voters are often accused of being superficial and irrational, but they’re much steadier than investors.
U.S. referendums suggest liberal high-tax future 7 Nov 2012 A California proposition raising taxes passed but others, like one prohibiting union campaign deductions, failed. Elsewhere gay marriage and ganja were favored while assisted suicide was spiked. Voters want government to serve, but not to meddle. Reconciling this won’t be easy.
New PIK-toggle surge doesn’t mean the end is nigh 7 Nov 2012 Investors should be wary of bonds that can pay IOUs in lieu of interest. But a rash of issuance to fund dividends to private equity firms doesn’t yet look like a 2007-2008 rerun. The recent deals have protections built in that should help keep reckless behavior in check.
At least Obama has a mandate – he really needs it 7 Nov 2012 Barack Obama’s decisive electoral win over rival Mitt Romney means the divisive Bush-Gore battle won’t be repeated. The U.S. economy, however, is in much worse shape than in 2000. Having a mandate helps, but the president, and the country, can’t get by with that alone.
New banking sheriff will aim further to the right 7 Nov 2012 Texas Republican Jeb Hensarling is likely to be the next chairman of the agenda-setting U.S. House Financial Services Committee. He wants to gut Dodd-Frank but is also keen to get Uncle Sam out of housing and refocus the Fed. Such a bold agenda could be tough to advance, though.
ECB ratings brouhaha absurd but not funny 7 Nov 2012 Spain’s central bank has been criticised for allowing Spanish banks to borrow on loose terms. This was due to the flawed interpretation of complex collateral rules instead of a deliberate ploy to bend them. The uproar was ridiculous, but lessons can be learned.
Ethical economy: EU for the 2018 economics Nobel 7 Nov 2012 With the euro still floundering, the Peace Prize winner is not quite ready for the economics award. However, if the single currency works, Europeans will merit official praise for finding a way to combine peace with prosperity and a vibrant private sector with active governments.
Wall Street takes wicked big thumping in U.S. vote 7 Nov 2012 Elizabeth Warren triumphed in Massachusetts in a duel over who could be tougher on the banks. The unalloyed election of the financial industry’s Public Enemy No. 1 to the Senate is a clear indication the anti-bank message still resonates strongly.
BTG Pactual’s Q3 showing not as good as it seems 7 Nov 2012 Big investment gains flattered profit at Brazil’s top investment bank. And the firm had to pump up leverage to help match second-quarter revenue while costs jumped. Pactual won’t always have such levers to pull. And with risk-taking so dominant, its valuation looks expensive.
Obama’s legacy depends on second-term compromise 7 Nov 2012 The president won’t have time to celebrate before confronting a mandatory raft of tax increases and spending cuts. To avert recession, he’ll need to channel Bill Clinton and bring together a divided Congress on fiscal reform. A grand bargain could assure his place in history.
The right Romney might have succeeded as president 7 Nov 2012 The Republican didn’t want for credentials, but he lacked an identity. Americans rejected the hydra he became, a moderate state governor turned severe conservative turned late-campaign pragmatist. The U.S. could have used the problem-solving Romney, but he flip-flopped to a loss.