Bloomberg BusinessWeek, May 16, 2016

choi

(1) Peter Coy, The Curse of the Big Bad Rut. These are weird times. Growth is weak. Interest rates are negative. Is There a way out?  ("Opening Remark")

Excerpt in the window of print: Summers, using a term coined during the Great Depression, warns of 'secular stagnation.'

Quote:

"For economic policy makers, the most disturbing question is why global growth remains paltry and uneven. * * * Deflation once seemed to be a strictly Japanese problem -- now it's a worldwide threat.

"The Federal Reserve System employs more PhD economists than any other organization in the world.

My comment:
(a) There is  no need to read it, because there is no diagnosis or treatment. The second quotation is interesting. But What stands out in this essay is the following:

"in the summer of 2013, when President Obama was choosing between ]Janet] Yellen and [Lawrence] Summers [as Chair of the Board of Governors of the Federal Reserve System] * * * Obama said that 'when it comes down to their philosophy on the future of the Fed,' the differences between the candidates were so small 'you couldn't slide a paper between them,' according to Democratic Senator Dick Durbin of Illinois, who attended a meeting with the president.

Of course, it should be "a piece of paper." Americans say Obama's is plainly wrong.
(b) economic stagnation
https://en.wikipedia.org/wiki/Economic_stagnation
(section 1 Secular stagnation theory)

(2) Getting the Military out of Venezuela's Business. The country's generals run huge parts of the economy. The opposition needs to focus on that. BlommbergView.
("In 1993, Venezuela had fewer than 50 generals; today it has more than 4,000. This kind of runaway inflation is every bit as pernicious as the economic variety that also afflicts Venezuela. And the military is increasingly involved and invested in that economy. * * * Active or former officers head some one-third of Venezuela's ministries and govern about half its 23 states")

My comment: There is n o need to read the rest.

(3) Dexter Roberts, China Decides Debt Can Be Dangerous.
http://www.bloomberg.com/news/ar ... bt-can-be-dangerous

paragraph 1: "The Chinese Communist Party is now officially worried about mounting debt. 'A tree cannot grow up to the sky—high leverage will definitely lead to high risks 树不能长到天上，高杠杆必然带来高风险,' said a front-page commentary in the People's Daily on May 9. The author of the commentary was identified as 'an authoritative person,' usually code for the top leadership. 'Any mishandling will lead to systemic financial risks, negative economic growth, or even have households' savings evaporate. That's deadly 控制不好就会引发系统性金融危机，导致经济负增长，甚至让老百姓储蓄泡汤，那就要命了.'

Note:
(a) summary underneath the title in print: Xi wants growth of 6.5 percent, and that requires more lending
(b) '权威人士' 再现党报头版 释放什么重大信号. 人民日报, May 9, 2016.  The above quotation in People's Daily essay is two parts of a single sentence -- in other words, continuous without interruption.

choi

(4) David Welch and Elizabeth Behrmann. Why Tesla Scares German Carmakers.
http://www.bloomberg.com/news/ar ... re-mercedes-and-bmw

Quote:

"Tesla Motors, whose Model 3 electric car enticed 325,000 would-be buyers to put down $1,000 deposits during the week of its debut in April, threatens them in a way that Toyota's Lexus never did.

"it's clear German brands are most vulnerable to customer defections as Tesla grows.

"says Jürgen Pieper, an analyst at Bankhaus Metzler[:] 'Many see in Tesla the innovation they’re missing from the Germans.'

Note: summary underneath the title in print: Its $35,000 Model 3 could lure luxury car shoppers

(5) Tim Jones with Greg Stohr, Brother, We Can Ask You to Spare a Dime.
http://www.bloomberg.com/politic ... -supreme-court-case

the first two paragraphs:

Don Norton and his wife, Karen Otterson , have been arrested about 50 times while panhandling in downtown Springfield, Ill, over the past eight years. In 2013 they sued Springfield for infringing on their First Amendment Rights to freedom of speech. The city had passed an ordinance prohibiting verbal requests for money in the city's historic district, just a short walk from Abraham Lincoln's home, tomb, and presidential library. A federal appeals court took Norton and Otterman's side and overturned the ban , an din February the Us Supreme Court refused to hear the city's appeal. ' kind of feel privileged that I was able to help people have the right to do this,' says Norton, 55, who carries a cardboard sign asking for help.

"His victory came thanks to a 2015 ruling by the Supreme Court in which the justices agreed with the arguments of Arizona pastor Clyde Reed, who wanted to put up signs directing people to Sunday services at his church. He challenged a local ordinance that put strict time limits on signs providing directions. Writing for the court, Justice Clarence Thomas said  the law treated directional signs differently from other displays, such as those for political candidates. Under previous Supreme Court rulings, restrictions on specific types of speech were considered valid only if they were narrowly tailored to serve a compelling state interest.

Note:
(a) summary underneath the title in print: A Supreme Court move bolsters the right of panhandlers
(b) The print version is similar but different. The quotation above is from the print.
(c) Norton v City of Springfield (CA7 2015) 768 F.3d 713, cert denied (2016) _ US _.
media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2014/D09-25/C:13-3581:J:Easterbrook:aut:T:fnOp:N:1424423:S:0
(d) Reed v Town of Gilbert (2015) _ US _.
www.supremecourt.gov/opinions/14pdf/13-502_9olb.pdf

choi

(6) Ian King and Adam Satariano, Smartphone Makers  Prep for a Rough Spell.
http://www.bloomberg.com/news/ar ... -personal-computers

Quote:

"After almost a decade of turbocharged sales, the $423 billion industry can no longer count on consumers to upgrade every two years.

"Sales at Qualcomm, the leading mobile chipmaker, fell 19 percent last quarter from the year before, to $5.5 billion. * * * That explains in part why Qualcomm has lost 26 percent of its market value in the past year, compared with a 3 percent decline for the IT sector as a whole.

Flex, a longtime assembler of smartphones for the likes of BlackBerry and Morotola, is among the companies branching out the furthest. * * * Flex has started making clothes and custom sneakers for Nikes.

"Texas Instruments Inc's first-quarter revenue fell 4.5 percent * * * According to a Bloomberg supply-chain analysis, TI's biggest customer is Apple.

Note:
(a) summary underneath the title in print: device and parts makers look to diversify with cars and appliances [Internet of Things, that is]
(b) The online and print versions are not the same. The quotation above is from print.
(c) Flextronics
https://en.wikipedia.org/wiki/Flextronics
(Flex (also known as Flextronics International Ltd. or Flextronics; founded in 1969; Headquarters Singapore)