Tuesday , February 28 2017
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FT Alphaville

Snap AV: Globalisation and income inequality, corporate edition

Apparently companies are experiencing rising income inequality.And like individual income inequality, the picture changes depending on whether you’re analysing it on a national or global scale, according to Andrew Lapthorne from Societe Generale.In the US, it seems pretty clear that there’s a growing gap between haves — in this case, the five public companies with the highest sales for each sector — and have-nots:But it’s not quite as straightforward as a few greedy companies hogging all the...

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Guest post: A ‘Phillips’ view of the euro

This guest post is from Michael O’Sullivan, chief investment officer for Europe and emerging markets at Credit Suisse Wealth Management…__________Well before he was celebrated for his work on the link between unemployment and inflation, Bill Phillips built an extraordinary machine that pumped coloured water through glass vessels in order to demonstrate how money flows around an economic system. Levers in the machine permitted users to simulate the effect on the system of fiscal policy changes...

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Further reading

Elsewhere on Monday,– Asset markets as banks.– Do real interest rates follow historical norms?– Has Silicon Valley lost the auto race?– When frozen yoghurt is deemed more valuable than union rights. – But hey Tesla was cash flow positive, BRIEFLY.– We spend an awful lot of time on social media and streaming sites.– We need to talk about the London Metal Exchange.– China wage fact of the day.– Farmers and fossil fuels.– The antifragile Oscar assessment.– Further, further reading....

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FT Opening Quote: Profits rise at Trinity Mirror

Profits rise at Trinity Mirror, Persimmon profits up, Primark warns on sterling. FT Opening Quote, with commentary by Matthew Vincent, is your early Square Mile briefing. You can sign up for the full newsletter here. Tabloid newspapers helping each other out, a housebuilder reporting slowing sales, an insurer deciding political risk is too difficult to cover… After 2016, even the unlikeliest events do not seem that surprising any more. This is not terribly helpful when trying to grab...

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The man who scuppered Unilever Kraft Heinz

Meet the un-corporate financier of the year, Michael Klein…It was Klein who, according to FTAV’s impeccable sources, called Warren Buffett on the Sunday after Kraft Heinz’s $143bn bid for Unilever leaked, warning the Berkshire Hathaway chairman that he was walking into a political firestorm.Klein put Buffett on a call together with Unilever chief executive Paul Polman, and that was that.Just one phone chat is all it took.Why it fell to Klein to point out the bleedin’ obvious, rather than the...

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What’s the price of meaningfulness?

Yves Smith at Naked Capitalism in a preamble to a post by John Boik, a PhD in biomedical sciences from the University of Texas, Health Sciences Center in Houston — who makes the case the economy must look to create meaningful innovative jobs to give all of us a sense of purpose — sets out the following critique:I hate to be a nay-sayer about a well-intentioned post, and I expect some readers will disagree with my point of view vehemently. However, this article about the nature of work clearly...

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Why be president when you could be pope?

Forgive us, Facebook. For we were asleep, and now we are woke.There has been lots of talk about the political aims supposedly signaled by Mark Zuckerberg’s 5700-word manifesto published last week. But rather than a manual for national governance, the post reads like an announcement of supranational ambition:This is a time when many of us around the world are reflecting on how we can have the most positive impact. I am reminded of my favorite saying about technology: “We always overestimate...

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