Japan Nuclear Crisis Deepens
Voice of America | Mar 15
The crisis at Japan’s damaged nuclear power complex in the northeastern part of the country is worsening. Top government officials acknowledge further, significantly higher radiation leaks and explosions at a total of three reactors. Tuesday morning, Japanese Prime Minister Naoto Kan delivered a nationally broadcast message to citizens, after a third reactor building explosion was confirmed in Fukushima. Urging the public to heed his words calmly, Kan acknowledged one of the damaged reactors is facing a much higher risk of releasing radiation into the atmosphere. The prime minister asked those living between 20 and 30 kilometers from the plant to stay indoors. Those living closer, about 200,000 people in all, had previously evacuated.
Monthly Archives: March 2011
Charitable Donations For Japan
There’s been no shortage of tragedies in the short history of the 21st century to date, although the disaster in Japan surely rivals the worst of the worst. In this century, or any other. It’s also a catastrophe that’s still unfolding, and it may very well deteriorate further beyond the already horrific news. If ever an event needed the better angels of our nature, the calamity in Japan is it. With that in mind, here are some reference links for topics bound up with helping a country in distress.
Japan’s Pain & Suffering Will Have Global Consequences
The week ahead will bring fresh news on a number of key economic fronts for the U.S., including housing starts and consumer price inflation. But the numbers may be irrelevant before they’re published as the tragedy in Japan alters perceptions and economic activity. The global economy was already under a shadow in the wake of the Middle East turmoil due to the resulting jump in oil prices. That threat appears to have eased a bit, although it’s premature to dismiss this factor in the weeks and months ahead. Meantime, there’s Japan to consider, starting with the huge scale of human suffering. In economic terms, the first hurdle is dealing with lots of new uncertainty that’s arrived in the wake of the tragedy. Dated economic news in the period ahead is likely to be of limited value for assessing the trend.
Strategic Briefing | 3.14.2011 | Economic Blowback From Japan
Analysis: Japan quake risks severe near-term economic damage
Reuters | Mar 14
A triple blow of earthquake, tsunami and one of Japan’s worst nuclear accidents is set to damage the world’s third largest economy, possibly more deeply and for longer than initially expected. Power outages and possible tax rises are likely to hurt companies and households and could outweigh the mild economic aftershock from the 1995 Kobe earthquake, given that oil prices and the yen are stronger and Japan’s debt pile is much bigger.
Book Bits For Saturday: 3.12.2011
Oil is topical again–for all the wrong reasons. The change for the worse inspires reviewing some of the classics in the library of energy books. The genre is extensive and so the following list hardly scratches the surface. But these titles deserve to be on everyone’s short list. There are more recent books on the topic, of course, but here are five standards in the niche that will stand the test of time.
● The Prize: The Epic Quest for Oil, Money & Power
By Daniel Yergin
An ambitious review of how the oil industry became so powerful. From the politics to the economics to the personalities, this comprehensive volume is now the standard work on the subject. If you could only read one book about the history of this business, this is it. Well written, comprehensive, and engaging. Quite simply, a magnificent tome.
Retails Sales Rise For 8th Consecutive Month In February
Retail sales jumped 1% on a seasonally adjusted basis last month, the Census Bureau reports. That’s the best monthly gain since last October’s 1.6% surge. It’s also the eighth straight monthly increase. Consumption, in other words, is doing fine. But quite a bit has changed on the global stage in recent weeks, namely, the Mideast turmoil and resulting jump in oil prices. The question is whether February data is dated?
Research Review | 3.11.2011 | Mutual Fund Expenses
Brokerage Commissions: The Hidden Costs of Owning Mutual Funds
Xiaohui Gao (University of Hong Kong) and Miles Livingston (University of Florida) | Mar 4, 2011
Brokerage commissions represent hidden costs to investors because commissions are not included, nor reported, in the fund expense ratio. This paper analyzes unique fund level data on brokerage commissions paid by U.S. diversified equity mutual funds from 2000 to 2007. There are three main conclusions. First, an average fund pays 25.72 basis points (bp) per dollar of assets, in addition to an average expense ratio of 131.96 bp, resulting in a total out-of-pocket cost of 157.68 bp. Second, a one bp increase in annual commissions per dollar of assets is associated with a decline of about 5.8 bp in a fund’s annual return. Third, our analysis yields a number of substantive policy implications, such as commissions being included in the fund expense ratio, and mutual funds detailing their soft dollar arrangements. These disclosures would enable investors and regulators to make more informed decisions.
Jobless Claims Rise Last Week. Meanwhile, The Oil Risk Looms
This morning’s latest on weekly jobless claims is a bit of a setback, but it’s too early to panic. For one thing, last week’s seasonally adjusted 26,000 jump in new filings for jobless benefits is small for this series, given how much it bounces around from week to week. That argument won’t wash with the thousands of newly unemployed, of course, but as a macro matter there’s nothing particularly worrisome in today’s report. That is, until you start looking beyond the data.
Pondering Austerity In The Months Ahead
There are more green shoots in the economy these days, but there are more risks as well. The question is whether the risks have enough momentum to overwhelm the positives? No one really knows the answer, of course, but it’s clear that the stakes are higher than just a month or two ago.
Strategic Briefing | 3.9.2011 | Sentiment Surveys
CR Index: At last, consumers’ financial lives improve
Consumer Reports | March 8, 2011
Despite international unrest and escalating energy prices, the March Consumer Reports Index reveals its most positive results in two years. A major decline in consumer financial troubles and positive sentiment provide some encouraging news for the American consumer. The Consumer Sentiment Index has broken into positive territory at 50.3, which is up from 48.7 a month ago. The Consumer Reports Sentiment Index captures respondents’ attitudes regarding their financial situation, asking them if they are feeling better or worse off than a year ago. When the index is greater than 50, more consumers are feeling positive about their situation. This is the first time sentiment has been in positive territory since it was first measured in October, 2008.