In November 2010 the German Bundeswehr (‘Federal Defence Force’) was embarrassed to find that a study by its Future Analysis department had leaked to the Internet. Nearly a year on and the report has been published in full, translated into English. With commendable German clarity and efficiency it reports as follows (direct quotations except where [square-bracketed], …
Daily archives: September 21, 2011
Looking for new paradigms
Gavyn Davies, ex-head of global economics at Goldman Sachs, ex-chairman of the BBC, said something interesting in the FT yesterday. He wrote, “Michael Feroli at JP Morgan suggests a useful way of looking at this. Long term bond yields are equal to the sum of short rate expectations, plus a risk premium which represents the …
Diverging metals prices
The price of gold is being forecast to pass $2,000 an ounce next year. And yet miners/manufacturers of industrial metals, such as iron and copper, are finding customers asking for shipments to be delayed. This is a “marked shift in industry sentiment from only six weeks ago, when most … groups painted a bullish outlook for commodities …
Difficult to invest way out of gloom
Nick Clegg, Deputy Prime Minister, is expected to tell his party conference today that Britain can invest its way out of the downturn. However, it is proving difficult to identify projects that can be started quickly, and the government is hampered by its need to cut spending on existing activities. http://www.ft.com/cms/s/0/cff32134-e3b7-11e0-bd3d-00144feabdc0.html At the same time …
Mobile phone operators struggle
Mobile phone operators “around the world” are seeking mergers as a way to share the costs of capital infrastructure expenditure. In the US the number of major groups might reduce to three. In Greece worsening economic conditions mean there may soon be only two mobile operators to choose between. Regulators are trying to stop this …
Tesco forced to postpone mortgages
Tesco, striving to build ‘the people’s bank’, had been expected to introduce mortgages this autumn. But plans have had to be postponed as the company struggles with IT systems and a “raft of tougher legislation.” Tesco has been very keen to move into banking, having been negatively affected by price rises on core purchases such …
Shift to the east
At least three stories in today’s FT have this theme: Alan Lewis, the millionaire property and retail entrepreneur, has put the Tommy Nutter brand up for sale. Tommy Nutter made three of the suits worn by The Beatles on the cover of Abbey Road, as well as the suit that Mick Jagger wore to his …
BA returns to an earlier time
A minor story this one, but an important one. British Airways is bringing back a ‘tag line’ invented 90 years ago: “To fly. To serve”. The slogan remained on company uniforms even when advertising told us that BA was “The world’s favourite airline”. It is now being brought back as the core of a new …