Daily Archives: January 23, 2014

According to the Kübler-Ross model, there are five stages of grief: Denial, anger, bargaining, depression and acceptance. Jamie Dimon still seems a long way from acceptance.

The JPMorgan Chase chairman and chief executive waded into controversy again at the World Economic Forum in Davos on Thursday by saying that the $20bn legal costs the US bank has paid for alleged wrongdoing before the financial crisis were “unfair”. 

FT senior foreign affairs columnist Gideon Rachman reports on his meeting with Ukraine prime minister Mykola Azarov who has not been invited to the main events at Davos. They discuss the violence in Kiev and the sanctions threat.

By Jasmine Whitbread, chief executive officer of Save the Children

This years findings on the low levels of trust in government, with business faring a little better, provoked a serious debate, moderated by the FT’s Gillian Tett. Richard Edelman highlighted the risks and opportunities for business, including partnering with better-trusted NGOs. But unless companies and CEOs put purpose and responsibility at the core of their business instead of seeing this as an add-on, it will backfire on the trust front. NGOs won’t want partners who undermine trust. Being honest about challenges such as supply chain standards, or social impact of products, and transparently taking steps to fix them is the only option that will be trusted.

Japanese prime minister Shinzo Abe did not shy away from discussing the tensions with China in his speech at the World Economic Forum in Davos. Lifen Zhang, editor-in-chief of FTChinese.com, examines the reaction of Chinese delegates and journalists.

  

By Toby Luckhurst

Thailand’s state of emergency is an attempt to control a country transitioning from feudal monarchy to representative democracy, writes Michael Peel.

• The Washington Post comments on a report revealing that economic mobility in the US has stagnated for 50 years, leaving those growing up poor no more likely to climb the ladder than their grandparents were.

Ukraine’s increasingly heated clashes between pro-EU activists and government forces are forging new warriors.

• The Sochi Winter Olympics have become a Putin vanity project costing at least $51bn, writes the New York Times.

• Increasing wages, a stronger currency and a dearth of workers are driving up production costs in China, leading to increasing consumer prices around the globe.

 

By Joe Leahy in São Paulo

Team Brazil began its charm offensive in Davos on Thursday with Finance Minister Guido Mantega reasserting the primary role in global economic growth of the so-called Brics, which also include Russia, India, China and South Africa. 

Argentina’s peso suffered its biggest one-day fall since the financial crisis of 2002 on Thursday, after the central bank stopped intervening in currency markets in an effort to preserve foreign exchange reserves that have fallen by almost a third over the last year.

The peso, whose long-running decline has accelerated since November, plunged 17.5 per cent to 8.1842 pesos to the dollar, according to Bloomberg data, although a lack of liquidity made it difficult to gauge its true level.

 

Emily Cadman

FT editor Lionel Barber on why Iran’s new president Hassan Rouhani wants to end Iran’s isolation and why he might be the leader that the west could do business with.

In our Reporting Back series, we ask FT foreign correspondents to tell us about a recent trip. Javier Blas, the FT’s Africa editor, tells us about the difficulties reporting from Malabo, the capital of Equatorial Guinea.

Why now? 

One of the big themes at the World Economic Forum in Davos is income inequality and whether growth favours the few rather than majority. Senior columnist Gillian Tett contrasts how the middle classes are being affected by the improving global economy.