As the Great Stagnation stretches out into the indefinite future, the debate on how to respond is loud but inconclusive. Some want stimulus, others austerity, while structural reformers lock horns with monetary activists. Here are five rules for a more productive dialogue.
John Stumpf runs the biggest U.S. bank but has kept a low profile. Lately, though, he has tiptoed into a role critiquing regulation – one filled mainly by Jamie Dimon. Now the JPMorgan boss has other concerns, and Stumpf is the bank CEO with most credibility on the stump.
France’s president has outlined a two-year plan to give the euro zone a centralised “economic government”. Addressing a key German concern, Hollande seems ready to agree sovereignty transfers to make it more than a coordinating body. The proposal may be premature. But it has legs.
A record $495 mln Christie’s sale set new highs for the abstract expressionist and other artists. More collectors than ever have $20 mln to spend on a single work. It paints a picture of an art world indebted to the Fed chairman and his alternative asset-friendly monetary policy.
The miner’s shareholders have handed Chairman John Bond his walking papers. Best practice dictates his permanent replacement be a strong outsider. This precludes tapping Glasenberg, the miner’s CEO and biggest shareholder. But a dual mandate would better reflect corporate reality.
The land Down Under has its problems, not least a China-driven commodities downturn and a rising budget deficit. Fears of a housing bubble persist, too. But with unemployment low and the currency falling, Australia has the economic stability other countries dream of.
Nuance went on a 10-year shopping spree, creating a $6 bln company in the process. But margins are falling, the stock hasn’t advanced in five years, and debt is accumulating. Carl Icahn’s recent entrance could signal an end to acquisitions - even the start of a breakup.