Tuesday, November 27, 2012

Africa Rising - abstract from Time Magazine 03 Dec 2012 issue


 According to an August report by analysts McKinsey & Co. titled  Africa at work: Job creation and inclusive growth  
275 million out of a total African workforce of 382 million are either unemployed or in informal day-hire work. By 2020 a youth surge propelled by the world's highest birthrates, which will raise Africa's population from 1 billion in 2009 to 2 billion in 2050, will add a further 122 million Africans of working age. That would be a boon if they had work. But McKinsey calculates that in the same period, Africa will create just 54 million to 72 million more jobs. "If current trends continue, it's going to take Africa until 2066 before employment levels reach those of East Asia," says David Fine, one of the report's authors. "The next part [of Africa's development] is jobs," agrees Geldof. "What will it take to fill that void?"
McKinsey argues that the answer lies less in Africa's traditional extractive industries--which tend to be capital-intensive--and more in sectors such as tourism and retail, which employ more labor. But what happens if, as McKinsey predicts, the void cannot be filled? South Africa provides an example of a government's paying the price for failing to share the gains of growth. Since the end of apartheid rule in 1994, South Africa, the continent's biggest economy, has expanded by up to 5% a year. But 18 years in power has changed the African National Congress (ANC) from the party of Nelson Mandela's righteous revolution into just another rapacious developing-world elite. Unemployment runs anywhere from 25% to 40%, state-run education can be among the worst in the world, and inequality--stretched wider by a fabulously wealthy ANC-connected cabal--has increased.
The ANC is reaping the reward for this sorry record. In mid-August, 3,000 miners at platinum producer Lonmin's Marikana mine in northern South Africa walked off the job, demanding a tripling of basic pay, from about $500 per month. On Aug. 16, after days of violence in which 10 people died, police shot dead 34 miners. The killings evoked the brutality of apartheid. Meanwhile, the militant antibusiness, antigovernment strikes that erupted at other mines, then in other industries, continue today. These have exposed as nothing more than a hollow fraud the claims by the ANC's ruling alliance that it represents the poor. With such a disconnect between government and people, Tutu says, the potential for upheaval in South Africa is "very great ... When the big eruption happens," he says, "it's going to be very, very disturbing."
Just as worrying is another type of unrest emerging in East and West Africa. Marginalization divides rich from poor, but it also aggravates existing tribal, racial and religious fault lines. A series of religious insurgencies is taking place below the Sahara. From the Atlantic to the Indian Ocean, young Muslims are taking up arms against governments they see as Westernized, corrupt and shutting them out of economic opportunity.

Thursday, September 13, 2012

Apple vs. Samsung - A paradigm shift?


They aren't calling it the patent wars for nothing. The current battle between two of technology's biggest heavyweights could set a historic precedent in the sector. As both Apple and Samsung fight for the smartphone and tablet crown, the latest battle isn't being decided by flashy new phones or consumer preference, but by lawyers and judges.

With two technology industry heavyweights finally coming to blows in the courtroom, the smartphone sector could be altered forever. The patent battle between Samsung and Apple will not only affect the companies, but the technology industry and consumers, too. 

Read more

Friday, July 27, 2012

Dynamic Investment Strategies for Corporate Pension Funds in the Presence of Sponsor Risk

 This publication, produced as part of the BNP Paribas Investment Partners research chair on asset-liability management and institutional investment management at EDHEC-Risk Institute, shows that sophisticated dynamic allocation strategies can usefully be implemented by pension funds. One of the key findings of the paper is to show that imposing a cap on the funding ratio, in addition to a floor, has a positive impact on both pensioners and bondholders, while only having a minor negative effect on equity value

Click here to download

Principles for the Regulation of Exchange Traded Funds - IOSCO


The International Organization of Securities Commissions (IOSCO) Consultation Report titled “Principles for the Regulation of Exchange Traded Funds” (CR05/12, March 2012) was prepared by IOSCO Technical Committee Standing Committee on Investment Management (TCSC5).
The report presents what it describes as “proposed common investor-protection principles or guidelines on Exchange Traded Funds (ETFs)” and “touches on certain market structure and financial stability issues.”

Please click here to download

Please click here to read EDHEC-Risk Institute comments of the paper



Wednesday, July 25, 2012

Platinum Metals Review - July 2012


The Platinum Metals Review - July 2012

A quarterly journal of research on the science and technology of the platinum
group metals and developments in their application in industry

is now available. Please click here to download


Monday, July 23, 2012

Global Financial Markets - Working Papers on


A Belke, A Freytag, J Keil… - 2012
Abstract: Monetary policy rules have been considered as fundamental protection against
inflation. However, empirical evidence for a correlation between rules and inflation is
relatively weak..

Click here to download the papaer

FT Adviser : Morning paper


Morning papers: Bleak jobs outlook raises heat on the Fed...


Please click here to read

Pension Research Council YouTube channel


Pension Research Council posted several videos  to the Pension Research Council YouTube channel on the following subjects:  
  • The 2012 Pension Research Council Symposium, "The Market for Retirement Financial Advice" 
  • The 2012 Pension Research Council Special Forum, "Saving Pensions: What can the US and UK Learn from Each Other?"
Check it out!

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