Pink picks

Posted by Joseph Cotterill on Jun 20 08:05.

Comment, analysis, and other offerings from Monday’s FT,

Clive Cook: America flirts with a fate like Japan’s
The stalling of the US recovery raises big, scary questions, the FT columnist says. After a recession, this economy usually gets people back to work quickly. Not this time. Progress is so slow, the issue is not so much when America will return to full employment but what “full employment” will mean by the time it does. One alarming possibility is that the traits the US has relied on to drive growth in the past – labour market flexibility, rapid productivity growth – might have become toxic. A “lost decade” of stagnation, like Japan’s in the 1990s, might lie ahead.

Wolfgang Münchau: Against the odds, the euro will scrape through
Last week, market commentators fell over themselves to predict the imminent default of Greece, and the inevitable break-up of the eurozone. They were wrong, the FT columnist says. Both may yet happen. Greek politics is unpredictable. And so may be the reaction of German parliamentarians. But it is not going to happen next week, or next month. And I am fairly sure that it is not going to happen over the next year either.

Gavyn Davies’ blog: EMU getting the worst of all worlds
As the EMU bloc stagggers towards a messy deal on Greek debt this week, it is worth thinking afresh whether the present strategy of “kicking the can down the road” still has anything to commend it, writes the FT blogger. Increasingly, the chosen route of procrastination and obfuscation looks like the worst of all possible worlds. Instead of buying time, which was the original intention, the strategy is maximising the risk of a disorderly blow-up which would do much greater damage than the intrinsic scale of the original problem should merit.

Ed Crooks: Obama wise to resist opening reserve oil taps
Of all the temptations facing US presidents, the Strategic Petroleum Reserve must be one of the most tantalising, the FT’s energy editor writes. With the cost of petrol – about $3.70 a gallon – putting the squeeze on US motorists, the case for using some of that oil to drive prices down will seem particularly appealing. Yet he has good reason to hesitate before opening the taps. A release of crude from the SPR would provide, at best, temporary relief and risk making the US increasingly vulnerable to a more serious threat in the future.

____________________________

Transcript: interview with President Dmitry Medvedev
John Thornhill, the Financial Times news editor, Neil Buckley, East European news editor, and Charles Clover, Moscow bureau chief, interviewed Dmitry Medvedev, the Russian president, at the St Petersburg Economic Forum on June 18. Here is a transcript of the interview with the president, some of which was filmed for video and the rest published by the FT.

Lex on resourceful nationalism
Spend money on digging a hole in the ground while convincing the locals that it is good for them. As resource nationalism grows, that is the conundrum mining, oil and gas companies face the world over, Lex says. Governments must accept that extractive industries are capital-intensive and avoid fiddling with royalty and tax regimes over the long life of resource projects. Resource companies, meanwhile, must show humility.

FT Tilt: Russia and China can’t agree on gas – Moscow stands to lose
Russia has missed the perfect opportunity to put pen to paper on its long-awaited gas deal with China and will pay the most if the deadlock can’t be breached, FT Tilt’s Alastair Marsh reports. If Russia cannot be more flexible China will have no choice but to use alternative supply sources. And Beijing is hardly short of options.

This entry was posted by Joseph Cotterill on Monday, June 20th, 2011 at 8:05 and is filed under Uncategorised.

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: