Global Investing

from MacroScope:

Political poster child?

George Alogoskoufis is a hardly a household name outside Greece and EU financial circles. But the newly sacked Greek finance minister could yet become a poster child for politicans struggling to fight off economic decline and banking industry collapse. His demise was in large part due to a public perception that he was helping out the banks but ignoring rising joblessness.

Greece, of course, is a special case at the moment, still recovering from riots over the police shooting of a teenager. But finance ministers, central bankers and other responsibles are probably not immune from Alogoskoufis Syndrome. Balancing the need to bail out the finance industry with rising economic misery among everyday people is not easy. Fat cats are not exactly in favour at the moment.

This could, indeed, come to a head later in the year. Investment cycles tend to recover before economic ones. So what happens when Wall Street, the City and the like start bringing in the money again just as unemployment lines start getting even longer?

from Davos Notebook:

Bankers – Ever thought about working for Big Pharma?

    Are you an out-of-work banker looking for a new job with
some stability? Considered the drugs industry?

    Daniel Vasella, chief executive of Swiss pharmaceuticals
company Novartis, reckons his sector is a pretty good place
to work when compared to "mercenary" banking.

    "We are not in a banking industry, where they fire a
thousand investment bankers
and then a year after they hire
a thousand investment bankers," Vasella told Reuters.