On the other hand, regulation remains a concern for many, with 75 percent of members continuing to feel foreign companies are less welcome in China than they have been in the past. Although down from 55 percent last year, some 46 percent feel foreign companies are treated unfairly compared to local companies and, for the third year running, respondents cited inconsistent regulatory interpretation/unclear laws and enforcement as the top challenge to doing business in China. For the first time, compliance and enforcement made the list of the top challenges companies expect to face in 2018. [Link]
(2) US Non-Farm payroll data for Jan. 2018 [Link]
(a) from Jan. 2017, unemployment rate for Whites has declined the most among races.
(b) In terms of education, unemployment rates for
high school or below and
high school but no college have declined the most.
Put (a) and (b) together, Trump has delivered for his constituency, I suppose.
(3) This Matthew Klein post in FT Alphaville might be from December 2014 but well worth a read on how Japan is far better placed than most think.
(4) A Chinese company lets go off the option of paying off a perpetual bond and has to raise the coupon by 3 percentage points. [Link]
(5) Dr. Manmohan Singh’s master class in fiscal indiscipline. Indeed! Who is better qualified than him to offer a master class in fiscal indiscipline?
(6) Academic economists close ranks on Janet Yellen as she departs but the last line attributed to Shiller restores a bit of a faith in their judgement [Link]
(7) An important read for financial market participants (aka investors) [Link]
(8) FT records the slump in U.S. stocks on Friday as the worst in the Trump era, leaving not much to the imagination of readers as to what message it wants them to take away.
Curious to know if the FT credited Trump when the stock market kept breaking records on the way up. It takes two to tango – the President would not take the blame for the fall even as he took credit for the ascent (both wrong). Similarly, the media would associate the decline in the stock market with him but not credit him for its ascent for one full year. Both wrong, again. But, what gives the media folks the right to think that they are morally superior to the man that they love to hate?
(9) Vivek Kaul writes one of the most relevant comments on the Indian budget for 2018-19 [Link]
(10) A good piece on the challenges facing Jerome Powell as he takes office on Monday as the Chairman of the Federal Reserve.