7 September 2019 FT — Articles to Read

7 September 2019


Question: According to MSN: Money, what are the hardest top ten (10) colleges to gain admissions?


Gloom deepens for global economy – Pg. 1

  • The slowdown afflicting the world economy was reflected in disappointing data on US jobs and German manufacturing yesterday, piling pressure on to central bankers to launch a stimulus push
  • In July the IMF said it predicted the world economy to grow 3.2% this year – less than its estimate at the beginning of 2019. While the fund has predicted a rebound to 3.5% growth in 2020, it has warned that such a recovery was “precarious” since it was premised on stabilization in emerging markets and progress on trade disputes
  • In the US, jobs growth slowed to its weakest pace in three months in August despite a boost from temporary hiring from census workers…
  • Non-farm payrolls rose by 130,000 last month…


Goldman cuts its partners down to size – Pg. 12

  • Not since it went public in 1999 has Goldman been a true “partnership”, but it has retained the title, which still brings perks and status that are unique on Wall Street
  • Goldman has about 450 partners, already down from the almost 500 that Mr Solomon inherited when it took over as chief executive last October, but well above the 221 the bank had when it went public in 1999
  • “Departnering” can be brutal. Goldman announces new partners with fanfare, but a handful each year are quietly ejected.  At the same time, other partners retire or leave voluntarily to run businesses or move into government
  • Along with salaries of about $950,000 and the potential for sizeable bonuses, the real financial benefit has been privileged access to investment opportunities in companies that have included live sciences firm Avanto and China’s ICBC bank. The private equity investments are available to all partners, fee free
  • About a quarter of the current partners work in trading, which contributes over a third of annual profits. Investment banking has traditionally had a higher concentration of partners relative to its revenue contribution, partly because partnership status can help investment banks to win clients


Fitch cites damage to rule of law in Hong Kong downgrade – Pg. 13

  • Fitch Ratings has lowered its rating on Hong Kong, citing uncertainty about the stability of the business environmental following months of protests and looming challenges stemming from the city’s closer integration with mainland China
  • …lowering its ranking of the Asian financial hub from double A plus to double A with a negative outlook, signaling the potential for further falls
  • Fitch said that months of persistent conflict and violence had inflicted long-lasting damage to international perceptions of Hong Kong’s governance system and rule of law, as well as calling into question the stability of its business environment


Answer: (10) Princeton University; (9) Harvey Mudd College; (8) Franklin W Olin College of Engineering; (7) Johns Hopkins University; (6) Rice University; (5) Yale University; (4) University of Chicago; (3) Harvard University; (2) Massachusetts Institute of Technology; (1) California Institute of Technology (Prof Note: My two alma maters, Bucknell University and George Washington University did not make this list which was top 50.  As I age, I ponder, “What did I really pay for?”  There were a few stand-out professors, but not many, that had a personal impact on me.  GW’s Jabbour expanded my market understanding eight fold with derivatives.  This knowledge enabled me to see what others were not seeing in ‘06/’07’.  I continue to ponder, given the high cost of education, the value.  I do not believe my alma maters have opened doors for me (though I do believe they have not closed them).  What has opened my doors is knowledge and work experience.  There is just so much to be said for the community college route and then finishing the final two years at a four-year university given educational costs.  Also, there is honour in trades.  Look at the average age of tradesman.  Learn a trade, build a business, that is how equity and wealth are truly built, right?!)