Shane's Feed
Jan 17, 2014
via Counterparties

L’affaire demande

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“L’offre crée même la demande”.

With those five words François Hollande set off his second scandal in as many weeks. A French president having an affair is one thing, but for a European Socialist leader to state that “supply creates demand” is another entirely, particularly in the econoblogosphere.

Jan 17, 2014
via Equals

The depressing reason women are gaining labor market share

The mancession continues. What seems like a step forward for women in the workplace is actually bad for both genders*.

Last week’s BLS data revealed that all of the job gains in the labor market in December went to women.

Jan 17, 2014
via Data Dive

Morgan Stanley earnings fall — thanks to legal bills

Morgan Stanley reported earnings this morning, announcing that its quarterly profit fell to $192 million ( 7 cents per share) in the fourth quarter from $661 million (33 cents per share) in the same period of the previous year. The drop was largely due to some $1.2 billion in legal bills.

Here’s how Morgan Stanley’s quarter stacked up against rival bank Goldman Sachs:

Jan 14, 2014
via Counterparties

Speed 2

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Imagine an internet where the biggest companies can pay for high-speed websites, while the rest of the web loads at dial-up speed. You end up using YouTube instead of Vimeo, not because it’s become a better platform, but because Google shells out money for faster upload times.

Jan 14, 2014
via Data Dive

JPMorgan’s fourth quarter earnings hit by Madoff settlements

JPMorgan reported its fourth quarter earnings this morning, beating expectations despite the numerous regulatory penalties, including settlements related to the Madoff case.

Here’s Reuters with the details:

The bank, which agreed last week to pay $2.6 billion to settle government and private claims over its handling of accounts of fraudster Bernie Madoff, said fourth-quarter net income fell 7.3 percent to $5.28 billion, or $1.30 per share.

Jan 10, 2014
via Data Dive

The terrible December jobs report

The jobs report is out today, and it’s weak. The economy added 74,000 jobs in December — the lowest growth the economy has seen since January 2011 and far below the expectation of 196,000. Because of people dropping out of the labor force, the unemployment rate dropped to 6.7% from 7.0% in November. Here’s Reuters’ chart of U.S. non-farm payrolls over the last year:

One theory of why the job growth number was so weak in December, put forth by a number of people including Felix Salmon, is because of unusually bad weather. This chart from Justin Lahart shows the number of people, in thousands, who had a job but who weren’t paid during the survey week because of weather:

Jan 9, 2014
via Equals

Is there an education penalty for women?

New stats out on women with graduate degrees are, quite simply, depressing.

The percentage of graduate students in economics who are women is down to 11% from a high of 16% in the 1990s, according to a new study by Wendy Stock and John Siegfried. What’s more, those who do make it to the end of a PhD program still face pitfalls. From the study (pdf):

For males, getting married within the first five years after graduation was associated with a 25 percent salary growth premium relative to other males. For females, however, getting married was associated with a 23 percent salary growth penalty relative to other females, perhaps reflecting compromises incurred in a two-career job search.

Jan 7, 2014
via Counterparties

The rise of activist investing

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It appears that we are (still) in the golden age of the activist investor. Alexandra Stevenson reports that “it’s no longer an insult to be called an activist investor”. In fact, it’s en vogue. In 2013, there were 10 instances of an activist investor pushing a company to “break itself up or sell or exit businesses”, compared to just three in 2009, according to the WSJ.

Jan 3, 2014
via Counterparties

China’s debt problem

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China’s debt problem is back. Around Christmas, the seven-day repo rate, a benchmark used to gauge how much money is in the banking system, spiked to nearly 9%, then fell again to around half that after the Chinese central bank injected cash into the system through reverse repos.

Dec 20, 2013
via Counterparties

Top of the charts

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The onslaught of year-end lists is upon us, and in the econoblogosphere that means, among other things, charts. Lots of charts.