Alex Brummer: The scandals at the top of the IMF and the Fed can’t come at a worse time
Supply disruptions, rising energy costs and a re-appearance of inflation provide a terrific backdrop for this week’s virtual global financial meetings in Washington.
The bounce after Kovid is significant and chronic injury is avoided in advanced countries. But a return to normalcy cannot be more complicated.
At such times the world needs steady hands on Tiller. Unfortunately, the managing director of the International Monetary Fund, Crystalina Georgieva, is very upset.
DIFFICULTY: The future of the head of the International Monetary Fund, Crystalina Georgieva, is in balance
In the days before this week’s meeting, the World Bank’s business report was revealed by Washington lawyer Wilmer Hale after the executive board voiced doubts about its thinking and freedom of discussion to discuss its future.
In his previous role as chief executive of the World Bank, Georgieva was accused of making China a better place for commerce than justified by data.
The integrity of the IMF and World Bank data is integral to their operation. Anything that can weaken relations with member states raises doubts.
Unfortunately, Georgieva’s future has become a tug of war with the support of Europeans and emerging nations, and the US is the largest shareholder of the IMF with a veto.
While Americans may be persuaded that the quality of her work is exemplary in the epidemic – which includes Argentina’s controversial soft bailout – art remains.
If the first question at her major press conference this week comes from a Chinese journalist, as is so often the case in recent times, it is concluded that the liberty of the North cannot be trusted.
Americans are not currently without moral problems. The Federal Reserve has been the subject of unfortunate allegations about the business activities of senior officials.
President Biden may have to remove President Jay Powell from office when his four-year term expires in February 2022 as part of his home-cleaning campaign.
The style is not running
In the epidemic, corporate hubris dominated the fast fashion outfit Asos, which is a blessing and a curse for the online frills clothing industry.
This gave supercharged profits when customers were confined at home, and earlier this year they allowed the bodies of the inactive Topshop and Debenhams chains to take over.
At the same time, this provided a major incentive for more traditional clothing retailers to lift their online games.
The march miraculously moved forward and Marx and Spencer were forced into an emergency.
Asos may still have low prices and high fashion design margins but its economic ambition is far ahead of market changes.
Earnings and earnings have been hollowed out and there has been a downturn in share prices.
Chief executive Nick Baton is leaving soon to take effect, and new presidents – ironically refugees from M&S – have been accused of solving the Ian Dyson mess.
The current president, Adam Crozier, has big fish to fish, and the nation gets fiber-to-door broadband at BT.
One believes from the perspective of ASOS investors, turnaround and recovery have been a matter of months rather than decades at M&S. The supply chain hell has been blamed for the Asos defeat.
There must be some sympathy for that. This is a problem shared with almost all the cotton and clothing businesses.
The unforgivable fact is that earnings for next year could be as much as 30 percent lower than previously anticipated.
The big task ahead is to restore credibility. Looking at all this from Monaco, Philip Green can forgive the petty smile.
A lost city
Austin, Texas A hipster, neon clad and democratic bastion in a fierce Republican state.
Translating Ilan Musk and his Tesla headquarters from Palo Alto, California to Austin was a great moment.
Instead, there are fears that the city’s bohemian character will be wiped out by the expansive, rising house prices and traffic chaos.