As Chrystia threatened at the end of her interview with Mohamed El-Erian today, we’ve compiled all the questions our readers submitted via the Newsmaker blog and Twitter and e-mailed them to him. El-Erian will be flying to Europe tonight after he finishes up his business in New York, and while we do hope he gets a little sleep, we also hope he stays up long enough to answer all of your questions. We’ll post his answers right here once we receive them.
To Mohamed El-Erian, the world’s major reserve currencies — the dollar, the euro, and the yen — are a bit like your dirty laundry; every shirt is dirty, but compared to the alternatives, they historically have been the “cleanest dirty shirts.” El -Erian thinks that arrangement will not last forever. He tells Chrystia that a long-term trade that PIMCO likes is a long position in the currencies of the successful emerging markets — the clean shirts — funded by the currencies of the U.S., the EU, and Japan.
Reuters finance blogger Felix Salmon has previously written that “if you wanted to put a face to the famous bond vigilantes, it would probably feature that famous moustache” of PIMCO CEO Mohamed El-Erian. Well, this morning Chrystia sat down with this famous bond vigilante for an hour-long Thomson Reuters Newsmaker interview and asked him why PIMCO decided to dump all of its holdings of U.S. government bonds earlier this month. Here’s what he had to say:
Fresh off of last week’s announced bid for T-Mobile, AT&T CEO Randall Stephenson sat down with Chrystia following a breakfast this morning at the Council on Foreign Relations in New York. He explained why this deal is good for his shareholders:
Shakespeare was wrong. He assured us that a rose by any other name would smell as sweet. One reason that is such a beloved line is its comforting message that intrinsic quality, rather than external labels, is what really counts. But recent research from a Harvard Business School professor suggests that, at least when it comes to the written word, labels matter quite a lot.
Americans actually live in Russia, although they think they live in Sweden. And they would like to live on a kibbutz. This isn’t the set-up for some sort of politically incorrect Catskills stand-up joke circa 1960. It is the takeaway from a remarkable study by Michael Norton and Dan Ariely on how Americans think about income inequality.
It is a truth universally acknowledged that a dictator who wants to be accepted by polite Western society should look for a charming, glamorous wife. That, at least, is what the world’s autocrats are learning from the example of Bashar al-Assad, the president of Syria.
Warning — unashamedly patriotic Canadian content to follow!!! If you are a member of the “Blame Canada” constituency, or if you share Michael Kinsley’s view that the world’s most boring headline is “Worthwhile Canadian Initiative,” then please read no further ….
Mary Meeker first became famous as Queen of the Net. That is the title Barron’s magazine granted her in 1998, after a 1995 report she wrote for Morgan Stanley predicted the power and shape of the then still exotic World Wide Web. Ms. Meeker, who recently moved to San Francisco to become a partner at the venture capital firm Kleiner Perkins Caufield & Byers, continues to be a forward-thinking guide to the global technology revolution: Her recent reports on mobile devices and the Internet in China have joined her 1995 ‘‘Internet bible’’ as instant classics among the digital cognoscenti.
Regular readers of Chrystia’s column will remember that she recently called out the IMF for failing to foresee the destabilizing effects of rising youth unemployment in Egypt. Specifically, in its April 2010 Article IV assessment of Egypt, the IMF concluded the country’s economy was in fact more resistant to external shocks thanks to “sustained and wide-ranging reforms.” Well, it turns out that the IMF has evolved in its thinking. In an exclusive interview today with Chrystia and Reuters IMF correspondent Lesley Wroughton, IMF First Managing Director John Lipsky announced that going forward the Fund will more heavily weight unemployment risks in its annual country assessments. “We think that these are very important issues and need to be looked at, and again, not just in cases where it might result in political turmoil but just as a matter of course in examining economic developments and policies,” Lipsky said.