The price of oil keeps on falling; the shale gas boom has reduced the price of natural gas in the US to a third of that in France; Germany has appealed to Sweden for its support in expanding two coal mines; and the EU’s effort to switch to clean energy is troubled. For companies wondering where to locate, the world has turned upside down.
Some years ago, I was feeling anxious and went to talk to a psychiatrist. After I had explained my worries and how I felt like responding, he paused for thought and asked: “Have you considered doing nothing?
After the spectacular chaos of the last time that regulators and governments scrambled to rescue banks in the US and Europe, they have hammered out a plan for the next time. It is better than the absence of one in 2008 but who knows if it will work?
Taylor Swift, the singer-songwriter, has removed her entire catalogue from Spotify, the music streaming service founded in Sweden. Ms Swift’s new album 1989 sold nearly 1.3m copies in the US this week, and she has written that: “Valuable things should be paid for. It’s my opinion that music should not be free.”
Traditionally, one thing upon which the British could rely was that they never heard anything about, or from, the security services, apart from in James Bond films. That has changed. First, Sir John Sawers, the new head of MI6, has Lunch with the FT and now Robert Hannigan, left, the new head of GCHQ, has written an op-ed for the paper.
Apart from indicating that the FT has become the communications channel of choice for British spies, it shows that the security services have decided that it is no longer enough to fight in the shadows. They have to get their message across loudly, in parliament and in public. Read more
There is something peculiarly impressive about the video below of Mark Zuckerberg, founder of Facebook, talking in Mandarin to students at Tsinghua University in Beijing. If nothing else, it shows a dedication to the country’s customs that very few foreign business leaders can match.
Forty years ago, when Janet Yellen, chairwoman of the US Federal Reserve, was an economist at Harvard University, she was interested in the film Five Easy Pieces. She noted the scene in which a diner waitress refuses to bring Jack Nicholson’s character an omelette with coffee and wheat toast because it serves omelettes with cottage fries and rolls. “I know what it comes with, but it’s not what I want,” he retorts.
Technology has its eyes on banking. Apple is expected this week to launch Apple Pay, its touchless payment system for iPhones; venture capital funds are pouring money into “fintech” start-ups; and Marc Andreessen, the technology entrepreneur, talks of “a chance to rebuild the system. Financial transactions are just numbers; it’s just information.”
Mark Carney © Photo by Chris Watt – WPA Pool /Getty Images
Mark Carney, governor of the Bank of England, would not win a popularity contest among directors of banks at the moment. Yet he and the Bank are taking a stance on individual responsibility that most people think is long overdue. Read more
Star fund managers are very valuable people, but not as valuable as they think they are. In a world of precise calculations and spotting the arbitrage opportunities between prices, this is one gap they fail to notice.
It is just about possible to regard Meg Whitman’s decision to split Hewlett-Packard in two as consistent. Her first move when appointed three years ago was to keep the whole thing together but now may simply be a better time to attempt a separation than the rushed effort by Léo Apotheker, her predecessor.
All the same, despite the greater discipline and focus that Ms Whitman has brought to HP since Mr Apotheker’s unhappy period at the helm, the underlying logic was relentless. HP is no longer the technology growth stock it once was so all roads tend to lead to corporate re-engineering. Read more
Every so often, a company announces that it is considering its “strategic options” for one of its businesses, which means that it wants to ditch it as soon as possible. This would be a good time for technology companies to consider their strategic options for their global tax arrangements.
On Thursday, Scotland may set out on the bumpy path to independence from the rest of the UK. Its banking system is likely to work only if it is braver and more far-sighted than Alex Salmond, the Scottish National party leader, during the campaign.
In the last months of the current European Commission, Google is in deep trouble. Its effort to reach an antitrust deal with Joaquín Almunia, the competition commissioner who is to be succeeded by Margrethe Vestager, is failing amid an outcry from politicians and rivals that it is being let off the hook.
Dan Doctoroff might have known what was coming when Michael Bloomberg decided on the location for his new desk upon returning “part-time” to his eponymous company after three terms as mayor of New York City.
Mr Doctoroff, the man Mr Bloomberg chose to lead Bloomberg in his political absence, told employees in January that the founder would “most likely spend a few hours a day working from his new desk on the fifth floor,” at Bloomberg’s offices on Lexington Avenue in New York. Read more