How do you stop corporate and private graft and corruption, when both have become endemic and are regarded as simply a normal way of doing business? You shine a light on the dark places so that misappropriations, under-pricing, outright theft and shenanigans of all descriptions become visible. When the people can see what is going on, they pressure the politicians for action and everyone involved starts to behave themselves rather better going forward than they have in the past.
Each week QFINANCE.com brings you five things to look out for in the week ahead (07-04-2014). Essential news that will shape the week and help you keep ahead in the world of business and finance.
Emerging market economies are even more exposed to the vagaries of global financial markets than at the time of the Asian crisis of 1997, according to new research from the International Monetary Fund (IMF) which, in its usual slightly hectoring tone, is also recommending steps they can take to protect themselves from at least some of the fallout.
Each week QFINANCE.com brings you some of the biggest news stories from the past five days (March 21– 27, 2014) in finance and business – essential reading to keep you up to date with the latest topics.
In refusing to bend its own rules for Chinese internet giant Alibaba, the Hong Kong stock exchange has put principles over profits. China’s eighth richest person, Jack Ma, wanted to list Alibaba, the sprawling e-commerce sourcing and social media empire he founded in 1999 on Hong Kong Exchanges & Clearing (HKEx). But, after the bourse refused to relax its listing rules in order to suit his needs earlier this week, he confirmed Alibaba will float in New York instead.
Last week, a senior monetary policy committee member at the Bank of England remarked that when interest rates do start to rise it’s good news, because it means that the economy is growing at a pace that warrants action to reign it in, so to speak. That is 100% right.
Is it possible for the business media to turn ordinary market volatility into a negative correction or even a crash?
Taking it as read that modern portfolio theory (MPT) did not protect investors through the 2008 global financial crash, when many saw their diversified portfolios contracting by 30% to 40%, does this constitute a failure of the MPT approach?
There are many ways to take a fresh look at modern portfolio theory (MPT), but perhaps the most obvious is to tackle the criticism that MPT fell on its face in the 2008 crash, when its balanced portfolio approach conspicuously failed to save investors from taking a caning. First, though, in Part One we will take a brief detour through a little investment history.
Picture the following. You are a small start up with a wonderful new gizmo which brings significant efficiencies and cost savings to industry X. No sooner do you open your doors when you get a letter from a "patent troll" saying you are infringing their patent (unspecified) and you need to pay them a license fee or be sued. You "know" the claim is spurious, but to prove it in court could cost you anything from a few hundred thousand pounds to a few million.