Bamboo Innovator

Netanyahu: Cartels and monopolies are choking competition in Israel

Netanyahu: Cartels and monopolies are choking competition in Israel

In a taped address to an economic conference in Eilat, prime minister stresses need to encourage entrepreneurship.

By Eran Azran | Nov. 6, 2013 | 6:59 PM

Prime Minister Benjamin Netanyahu on Wednesday called cartels and monopolies the main cause of the lack of competitiveness in the Israeli economy. He was addressing, in a pre-taped speech, the Israel Democracy Institute’s Eli Hurvitz Conference on Economy and Society, in Eilat. Netanyahu said that cartels had joined forces with petty officials and used laws and bureaucracy to stifle competition. He said his government is pushing the so-called economic concentration bill through the Knesset in order to increase competition. Read more of this post

Dirty money: Mistrust the trusts; The crackdown on shell companies is a good start. The next target should be trusts

Dirty money: Mistrust the trusts; The crackdown on shell companies is a good start. The next target should be trusts

Nov 9th 2013 |From the print edition

ONLY a fool holds dirty money in his own name. The world’s financial system offers safer and friendlier ways to hide the proceeds of crime. Shell companies—those with no real operations—are one, phoney trusts and foundations are another (seearticle). Belatedly, life is getting a bit more difficult for tax evaders, money launderers and those who abet them. One big move—now backed by the British government—is to oblige limited-liability companies to give details of their real owners. This newspaper has argued in favour of such a duty: limited-liability status is a kind of public subsidy (if the firm goes bust, the shareholders are not responsible for its debts). It was never meant to be a means of concealing ownership. Yet in many places it is just that: only six of 69 jurisdictions surveyed last year by Eurodad, an anti-corruption network, required all types of firm to record beneficial-ownership information. Read more of this post

An index of financial secrecy: Lifting the veil

An index of financial secrecy: Lifting the veil

Nov 6th 2013, 23:05 by M.V. | NEW YORK

EVERY two years the Tax Justice Network, a campaigning group, publishes a Financial Secrecy Index (FSI), showing which jurisdictions are friendliest towards tax evaders, money launderers and other financial ne’er-do-wells. Countries are ranked according to a combination of a secrecy score (based on 15 indicators, including banking secrecy, transparency of corporate ownership and international judicial co-operation) and a weighting that reflects the size of their financial sector. Read more of this post

Little England or Great Britain? The country faces a choice between comfortable isolation and bracing openness. Go for openness

Little England or Great Britain?

The country faces a choice between comfortable isolation and bracing openness. Go for openness

Nov 9th 2013 |From the print edition

ASKED to name the European country with the most turbulent future, many would pick Greece or Italy, both struggling with economic collapse. A few might finger France, which has yet to come to terms with the failure of its statist model. Hardly anybody would plump for Britain, which has muddled through the crisis moderately well. Read more of this post

The Caribbean debt crisis: God v bondholders; Small, debt-ridden countries could benefit from divine intervention

The Caribbean debt crisis: God v bondholders; Small, debt-ridden countries could benefit from divine intervention

Nov 9th 2013 |From the print edition

THE pulpits of Grenada, a spice-scented Caribbean island of 100,000 souls, have been ringing with an ungodly phrase recently: debt restructuring. Ever since the government defaulted on its dollar bonds in March, churchmen have called for a write-off of two-thirds of its debt, using the term “jubilee” in its Christian sense, meaning a one-off forgiveness of sins. Priests of different denominations met with the International Monetary Fund (IMF) last month. They sit on a debt committee with government ministers. Keith Mitchell, the prime minister, recently thanked them for their support and quoted the Book of Matthew to explain the need for austerity measures. Read more of this post

The perils of falling inflation

The perils of falling inflation

In both America and Europe central bankers should be pushing prices upwards

Nov 9th 2013 |From the print edition

WHAT is a central banker’s main job? Ask the man on the street and the chances are he will say something like “keeping a lid on inflation”. In popular perception, and in their own minds, central bankers are the technicians who squeezed high inflation out of the rich world’s economies in the 1980s; whose credibility is based on keeping it down; and who must therefore always be on guard lest prices start to soar. Yet this view is dangerously outdated. The biggest problem facing the rich world’s central banks today is that inflation is too low. Read more of this post

Britain is surpassingly good at selling songs and talent shows on TV

Britain is surpassingly good at selling songs and talent shows on TV

Nov 9th 2013 |From the print edition

TWO MPS WITH quite different views employ the same metaphor for modern British politics. At times, they say, it is “like the X-Factor”. They mean it can be tawdry and shouty. But there is an obvious difference, too. “X-Factor”, a talent show created by Simon Cowell, is far more popular. Despite a glut of reality shows on television, an episode of “X-Factor” can draw as many as 10m viewers in Britain. It has conquered the world, too. Versions of it exist in about 40 countries, from Colombia to Kazakhstan. It is in the vanguard of British exports of reality-TV formats—a small industry, but one that Britain unquestionably dominates. Read more of this post

The price is a blight: The rich world, and especially the euro zone, risks harmfully low inflation

The price is a blight: The rich world, and especially the euro zone, risks harmfully low inflation

Nov 9th 2013 |From the print edition

WHEN central banks adopted “quantitative easing” (printing money to buy financial assets) and other unorthodox means to buoy economies holed by the financial crisis, many feared that the result would be out-of-control inflation. Asset prices have certainly soared. But consumer prices have not. Indeed, the growing fear is that rich countries may be entering a twilight zone of ultra-low inflation. Read more of this post

Where will the boot land next? Investors and companies struggle with the arbitrary nature of new taxes and regulations; 2014 will be a busy year at the polls, with votes in Brazil, India and Indonesia plus America’s mid-terms

Where will the boot land next? Investors and companies struggle with the arbitrary nature of new taxes and regulations

Nov 9th 2013 |From the print edition

WHEN economists talk of political risk, they usually mean war, terrorism or, at the very least, national elections. And 2014 will be a busy year at the polls, with votes in Brazil, India and Indonesia (among the big emerging markets), plus America’s mid-terms. Countries with a combined population of more than 2 billion will be endorsing or rejecting their current governments. Read more of this post

Chinese Activists Challenge Beijing by Going to Dinner; Over Unassuming Meals Members of Civic Group Try to Lay Groundwork for Democratizing China

Chinese Activists Challenge Beijing by Going to Dinner

Over Unassuming Meals Members of Civic Group Try to Lay Groundwork for Democratizing China

JOSH CHIN

Nov. 6, 2013 1:14 p.m. ET

BEIJING—A new crop of grass-roots activists is vexing China’s authoritarian government by organizing around a simple event: dinner. On the last weekend of every month, government critics gather for unassuming meals in as many as 20 cities across the country to discuss issues from failures in the legal system to unequal access to education. The gatherings are intentionally low-key, organizers say, but their overall goal—to lay the groundwork for democratizing China—isn’t. “It’s not illegal to eat dinner together,” says Zhang Kun, a 26-year-old former employee of an advertising company who started helping to organize the meals after meeting other activists online. “That’s our motto: Change China by eating.” Read more of this post

Investors Cool to 2 Chinese Bank Offerings Anhui Huishang Bank and Bank of Chongqing; “The stand-alone financial profiles of many L.G.F.V.’s are very weak”

NOVEMBER 6, 2013, 6:49 AM

Investors Cool to 2 Chinese Bank Offerings

By NEIL GOUGH

Two Chinese banks that sold nearly $2 billion worth of shares in Hong Kong stock market listings received lukewarm receptions on Wednesday from investors concerned about how China’s financial system would cope with a potential deluge of bad debt that could swamp the country’s economy. The Huishang Bank Corporation, a regional banking group based in eastern Anhui Province, priced its initial public offering at the bottom end of the marketed range on Wednesday, raising 9.2 billion Hong Kong dollars, or $1.19 billion, according to two people with knowledge of the deal, who declined to be identified because the information was not yet public. Also on Wednesday, shares of Bank of Chongqing closed down slightly on their first day of trading in Hong Kong after the company raised 4.2 billion dollars in a share sale. Read more of this post

Park’s promise of second South Korea miracle risks ringing hollow

Park’s promise of second South Korea miracle risks ringing hollow

4:08pm EST

By Christine Kim

SEOUL (Reuters) – South Korean President Park Geun-hye took office in February pledging a “Second Miracle on the Han River”, a reference to her father’s rapid 1970s industrialization, but nine months into office little has materialized. On the face of it, there is little wrong with what is one of Asia’s industrial powerhouses, but longer term the lack of a viable domestic economy based on services means the world’s fastest ageing country could face a major collapse in growth. Read more of this post

Trading Delayed as 650,000 South Koreans Take College Entry Test

Trading Delayed as 650,000 South Koreans Take College Entry Test

By Heesu Lee

Nov. 7 (Bloomberg) — South Korea’s stock market opens an hour later than usual and flights will be barred from take-offs and landings for 40 minutes to reduce noise as more than 650,000 students take their college entrance exams today. Police will be mobilized and rush-hour schedules for buses and trains extended to help students reach 1,257 test centers 30 minutes before the 8:40 a.m. start. The military will halt drills to avoid disturbing the candidates, for whom a high score and entry to a top university all but guarantees a prestigious job with the civil service or at one of South Korea’s chaebol, including Samsung Electronics Co. and Hyundai Motor Co. Read more of this post