Mindful Money’s news round-up: Thursday 26th May 2011

26th May 2011

Story of the day:

From the Independent, an in depth piece on whether Christine Lagarde's nationality is a help or a hindrance to her candidacy. She has claimed it is not.

Lagarde is wrong: her nationality is both handicap and advantage

And best of the rest:

Today on the New York Times: Are you passionate and have a near compulsion on any subject? Yes? Then turn your career in to being a full time blogger!

My Blog Is Also Paying My Bills

Also from the New York Times, the actor who is passionate about technology and turns it in to sound investments.

An Actor Who Knows Start-Ups

The Telegraph are reporting on the news that consumers are technically back in recession, household spending has contracted for the second quarter in a row.

UK consumers are back in recession, ONS data shows

The Guardian have looking in to how the service sector has been effected buy the lack of consumer spending.

UK consumer service sector sales slump

Also in the Telegraph, like many other luxury goods companies, Burberry is enjoying a surge in sales due to popularity within the emerging markets.

Burberry profits jump 40pc on emerging markets demand

From Reuters, luxury brands aren't the only ones to look towards emerging markets, LinkedIn is said it will be seeking out opportunities in China to capitalize on its massive user base even though it sees the market as complicated.

LinkedIn eyes business opportunities in China

BBC News have covered a report from HSBC on the lack of preparation the younger generation has for their retirement. "The report suggests that Britons currently have a culture of dependency on the state, which is a false economy. People have to take greater personal responsibility for their retirement and rely less on the state, by planning more effectively and saving more for themselves."

Retirement planning 'lacking', says HSBC report

The BBC News constructed a report on the best places in the world for entrepreneurs. With Indonesia coming in at the top spot. The rest were a mixed bunch, with the majority of developed countries resulting fairly high, excluding Italy. But there were also plenty of developing economies that came out as pro-entrepreneur – India, China and Nigeria were also perceived by their own people as relatively favourable places for new businesses.

Entrepreneurs face global challenges

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10 thoughts on “Mindful Money’s news round-up: Thursday 26th May 2011”

  1. Dontmindme says:

    Of course a “Desicive Action” does not have to have the desired outcome…. 

    1. Drf says:

      or of course any real effect at all!

  2. Anonymous says:

    Good post, Shaun. “For every action there is an equal and opposite reaction” I believe. Thus, by kicking the can into orbit the EZ can weather the storm for a while longer? I honestly do not see  any concrete, long-term solution coming from today. I cannot see any concrete, long-term solution coming from Cannes. I cannot see any concrete long-term solution! And by-the-by, the IMF has been remarkably quiet which is a further disturbance to any “solution” is it not?

    1. Anonymous says:

      Hi Ray
      I like the Sir Isaac Newton reference so thanks for that. As to the deal I will review it in todays post but on an initial viewing there are as ever flaws and holes in it.

  3. JW says:

    Shaun, I have just been re-reading ‘The Fall of Wall Street’ , and reminding myself it took Paulsen, Bernake et al at least 2 years of ‘kicking the can’ before they got to the same position EZ is now at. and that was with one government, treasury, Fed etc to deal with.
    Its easy for Brits to criticize the EZ and some in say the BBC or Telegraph are clearly going OTT .From a French perspective Sarkosy is probably playing a blinder, getting the Germans and anyone else he can rope in to help save their AAA rating as well as their banks. Whether he can pull it off or not I don’t know but if you were French you would be cheering him on.
    On the one hand we criticise the BoE for UK inflation, but then argue that the only way out of this is for the Germans to accept inflation from ECB QE to rebalance the EZ. Hypocracy?
    We know the US hasn’t solved its problems with QE and TARP, just delayed and elongated the process of deleveraging, are we being somewhat two-faced with our continous criticism of the EZ’s attempts to solve the same problem in a slightly different way?
    Maybe ‘the markets’ are right, perhaps Greek debt was to be completely written down, perhaps some banks have to go under, perhaps the Euro has to be split. But again, perhaps its OK for us to cheer on ‘the markets’ here, but support the ‘Occupy’ movements elsewhere. Hypocracy again?

    1. Anonymous says:

      Hi JW

      Your points are well made and are a critique for those who hold such a position. However I spent some of yesterday criticising sugestions that the Euro zone should do its own type of QE.

      Apart from the fact it breaks their rules (although mind you…) the fact is that each time it has been tried QE has either failed completely or had the side effect of raising inflationary pressure. So for me it is no answer and like in the UK may actually make things worse.

      1. JW says:

        Hi Shaun. My comments were not directed at your blogs which are fairminded. However I find the constant criticism of the EZ by many parts of the UK MSM and City to be very annoying. Of course the EZ could be doing some things better/quicker but the same can be said of countries with their own currency and central bank. Its the ‘hope’ that disaster strikes that I find distasteful.
        CDSs were are at the heart of US problems with Lehmanns etc, and they are again with Europe. This unregulated casino which forms absolutely no useful purpose must be brought to an end. What started as ‘hedges’ invented by Bankers Trust is now creating havoc by being used as a proxy for credit ratings , even by the credit rating agencies themselves. We have the absurd situation of millions of ordinary people’s lives profoundly affected by the odds put on bets made by ‘entities’ completely divorced from the real situation on the ground.

  4. The_forbin_project says:

    well it was and still is about the banks . mind you I might be pursuaded that this is all a plot in the Franco-German Empire building…..

    nothing to do with economics now ( was it ever? ) and all political show – EU zone or Bust!


    PS: my money is on bust!

  5. Shaken and Stirred says:

    So where is Rhianna and her umberella ella ella when she’s needed?

  6. Anonymous says:

    History. Some problems have happened before, almost.


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