Month: October 2013

Emerging markets to shake up Fortune 500 list

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Just a decade from now, some global industry leaders could be companies you may not have heard of, based in cities you probably haven`t visited before.

Companies based in emerging markets will account for more than 45 percent of the Fortune Global 500 ranking by 2025, up from 26 percent currently, according to a new report by McKinsey Global Institute published on Thursday.

The Fortune Global 500 is an annual ranking of the top 500 corporations worldwide as measured by revenue. Chinese energy companies Sinopec, China National Petroleum and State Grid and Samsung Electronics are the top four emerging markets companies on the ranking at 5^th, 6^th, 7^th and 20^th place, respectively.

“Just as Japanese and South Korean companies became formidable global competitors in the past half century, new players from emerging markets, such as the Chinese telecommunications networking giant Huawei, Brazilian aircraft manufacturer Embraer, and India`s industrial conglomerate Aditya Birla Group, are asserting their presence, and many more are soon to follow,” the report said.

Of the 8,000 companies worldwide that generate revenue of USD 1 billion or more, three out of four are currently based in developed markets. However, McKinsey expects an additional 7,000 companies will grow to this size over the next ten-plus years, 70 percent of which will be based in emerging markets.

The trend of rising urbanization and income growth in emerging markets, which is driving demand for consumer goods and services at a rapid pace, will push more companies across the USD1 billion revenue threshold, McKinsey said.

There are several consequences, both positive and negative, of this new business landscape.

For example, the proliferation of large companies will put several lesser-known cities in developing economies on the map.

“This presents an opportunity for cities to strengthen their local economic base and capture part of the next great wave of growth, assuming a role as hubs in global industry networks and supply chains,” the firm said.

On the other hand, the emergence of thousands of new corporate heavyweights is likely to usher in an era of increased competition for markets, resources and talent.

“Companies based in emerging markets can be sources of low-cost innovation that could disrupt entire industries, and many will set their sights on international expansion,” it said.

During the 1970s and 1980s, many US and European industry leaders were caught off guard by the rise of Japanese companies that established high standards of productivity and innovation. More recently, South Korean companies have taken on this role, with the likes of Samsung Electronics, for example, shaking up the consumer electronics industry with its innovative edge.

“In the coming decades, new challengers will appear from multiple countries, with an ever-widening array of innovative strategies and business models. Today`s CEOs need to prepare for this new wave of competitors by understanding who they are and how they will compete differently,” McKinsey said.

– By CNBC`s Ansuya Harjani; Follow her on Twitter @Ansuya_H

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Unemployment report won’t be released this week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There won’t be a “Jobs Friday” this week unless the warring factions in Congress can figure out a way to reopen the government before the end of the week.

Each month’s most-watched economic indicator, the nonfarm payrolls report, won’t be released on the first Friday as scheduled, according to this notice from the Bureau of Labor Statistics.

Economists had expected the BLS report to show 180,000 new jobs, with the unemployment rate holding steady at 7.3 percent.

This website is currently not being updated due to the suspension of Federal government services. The last update to the site was Monday, September 30. During the shutdown period BLS will not collect data, issue reports, or respond to public inquiries. Updates to the site will start again when the Federal government resumes operations. Revised schedules will be issued as they become available.

That squelches the possibility of a Friday NFP release, though Wednesday’s issue of private sector job creation from ADP and Moody’s Analytics shouldn’t be affected.

However, the Labor Department, which operates independently of the BLS, said it does expect to release its weekly jobless claims report, according to a Reuters report.

A shutdown contingency plan “authorizes the release of the weekly report during a lapse in appropriations.”

Separately, the Commerce Department said it also won’t be issuing news releases, including its trade and retail sales data.

—By CNBC’s Jeff Cox. Follow him on Twitter @JeffCoxCNBCcom.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Down, not out – Indonesian plays still offer value

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indonesian shares have been among the hardest-hit by recent market volatility, but some pockets still offer value, analysts said.

“Years ago, it was way too easy to be bullish on Indonesia,” Wellian Wiranto, Asian investment strategist at Barclays, told CNBC, citing the country`s consumption and commodity stories and its stable government. “Now, it`s too easy to be bearish.”

The Jakarta Composite remains down around 17 percent from its May peak, touched before concerns that the Federal Reserve would soon begin to taper its asset purchases sparked volatility in global markets. But the index has recovered around 13 percent from its August trough; it is currently down around 2.6% for the year. Indonesia`s currency, the rupiah, is among the worst-performing globally; it has lost around 20 percent of its value against the US dollar this year.

Some fund flows have returned to the country, with USD 78 million in equity inflows in the week ended Sept. 25, up from USD 14 million the previous week, according to data from ANZ.

“We still like the fundamentals. We still like the story of the labor market and the consumption force coming in. A quarter billion people is a lot of people in any kind of economic climate,” Wiranto said.

Barclays is sticking with a “nuanced” approach, seeking defensive, liquid big caps, particularly in the telecommunications and consumption segments, Wiranto said.

“Some of those have been selling off quite a bit,” although there`s been some recovery since the Federal Reserve`s September decision to delay tapering its asset purchases, he noted.

Others are also cautious about stepping into the market.

“Four months into the bear market, still earnings risk and macro uncertainties suggest that it may be too early to play on a recovery,” said Erwan Teguh, CIMB`s head of research in Indonesia, in a report.

He has a “neutral” call on Indonesia, expecting the market to remain rangebound. But he noted the country has low household debt, fast-rising incomes and a universal healthcare program set to begin in 2014. He expects consumers` spending propensity to rise despite higher interest rates and a weaker currency.

He likes defensive stocks including drug-maker Kalbe Farma, energy company Perusahaan Gas Negara and telecom Telekomunikasi Indonesia. He sees deep value in property companies Alam Sutera Realty, Ciputra Development and Summarecon Agung. Among plays he considers good companies with reasonable valuations are oil-palm plantation owner Astra Agro Lestari, Bank Mandiri, department store operator Ramayana Lestari and cement maker Semen Indonesia.

Credit Suisse advises positioning for “complex” outcomes in Indonesia.

“Indonesia`s favorable long-term growth story remains intact, but, in our view, it was never quite as positive as most people thought,” it said.

It expects economic growth and earnings forecasts will be lowered as problems with its large current account deficit, high inflation and high dependence on portfolio inflows will persist through 2014.

But it also expects global economic growth may surprise positively, providing a fillip to Indonesia`s market.

It views consumer plays as overpriced.

“While we believe in the long-term growth story of increasing consumption we prefer to play it through banks, telecoms and selective pure consumer plays,” such as retailers Erajaya and Electronic City and auto play Astra International, it said.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shinzo Abe’s letdown puts onus on Bank of Japan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A lack of detail from Japan`s Prime Minister Shinzo Abe about how the government will buffer the economy from a controversial rise in the sales tax adds pressure on the Bank of Japan to step up its monetary stimulus, analysts say.

Abe, who implemented radical economic policies – dubbed Abenomics – to revive the world`s third-biggest economy, said on Tuesday the country`s sales tax would rise to 8 percent from 5 next year as planned. The hike is seen as necessary to help ease Japan`s heavy debt load.

But an announcement on a stimulus package to offset the impact of the tax hike fell short of expectations. Instead of unveiling a cut in corporate tax, as anticipated by analysts, Abe said he had asked ruling parties to start a debate on corporate tax cuts and that a 5 trillion yen (USD 51 billion) stimulus package would be compiled in December.

“The stimulus announcement probably erred to the downside of what the market was looking for and there was some disappointment with substantial progress towards structural reform. We didn`t get an immediate announcement on corporate tax reform and that also disappointed some investors,” Citi Currency Strategist Todd Elmer told CNBC Asia`s “ Squawk Box .”

“Ultimately, what this does is put a bigger burden on the Bank of Japan (BOJ) to offset the impact of the sales tax hike and I think that means the yen will weaken further,” he added.

Disappointment with Abe`s announcement helped pushed Japanese stocks to a three-week low on Wednesday.

There had been some talk in recent weeks that the BOJ could ramp up its asset purchase program to support the economy if Abe raised the sales tax. The last time Japan lifted the tax, to 5 percent from 3 percent, was in 1997 and that move is partly blamed for tipping the economy into recession.

“I`m concerned that Abe has bitten off more than he can chew,” said Keith Fitz-Gerald, chief investment strategist at Money Map Press which publishes a monthly investment newsletter. “He has taken a calculated gamble to raise taxes when Japanese families are already struggling with a rising cost of living and falling wages.”

Japan`s sales tax is scheduled to rise next April and then in 2015 to 10 percent.

The BOJ will hold a regular policy meeting on Thursday and Friday; any comments on the sales-tax hike are likely to be watched closely. BOJ chief Haruhiko Kuroda has said previously that he supports a rise in the tax as a step to get Japan`s finances in shape. The country has the highest debt load in the developed world.

Economists say that while they do not expect any near-term reaction from the BOJ, the central bank could ease monetary policy next April when the rise in the consumption tax is due to kick in.

“The BOJ would have been looking for a rise in the sale tax as a starting point for more stimulus,” said Vishnu Varathan, market economist at Mizuho Corporate Bank.

“Now the question is that since Abe was short on details about economic stimulus, will the BOJ add to its stimulus? My view is that the BOJ is happy with the recovery and the bond market is stable, so a move now is unlikely – doing something next year would make more sense,” he added.

The BOJ said in April it would pump $70 billion into the economy each month to help push up inflation and to 2 percent in two years.

-By CNBC.Com`s Dhara Ranasinghe; Follow her on Twitter @DharaCNBC

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ex-Treasury official: Stalemate could trigger US recession

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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If the political stalemate in Washington impedes an agreement on raising the debt ceiling, it could send the U.S. economy back into a recession, former Treasury official Mark Patterson told CNBC on Wednesday.

Washington was officially shut down on Tuesday, marking the first US government closure in 17 years and sending hundreds of thousands of government workers home, after politicians failed to renew the federal budget into a new fiscal year.

Patterson, the former chief of staff to the Secretary to the Treasury Jacob Lew, said a brief closure would likely have a minor impact on the world`s largest economy`s gross domestic product, but a longer closure would present a different level of issues.

“If [the shutdown is] allowed to persist and it really affects confidence, or it gets too close or merges with the debt ceiling debate – and God forbid we actually have a problem getting the debt ceiling lifted – then obviously it`s a different ball game altogether,” said Patterson.

“If the debt ceiling doesn`t work out as it should then you could see serious negative economic effects [on the US economy] including a potential return to recession,” he added.

Most industry commentators agree that although the current budget freeze is costly and disruptive, the bigger risk for the US government is a potential stalemate over raising the government`s borrowing authority once it reaches its USD 16.7 trillion limit on October 17.

A failure to come to an agreement on this issue, could lead to the Treasury defaulting on its debt payments. Last time Congress came close to forcing a Treasury default in July 2011, it cost the U.S. its Triple-A credit rating, even though no payments were missed.

Patterson said the failure by US government to agree on funding was a bad sign for progress on the debt ceiling. A long running disagreement over funding for President Barack Obama`s Affordable Care Act, otherwise known as `Obamacare,` has been the major source of the stalemate.

“Right now we`re not able to solve just the government funding problem, so to merge these two very thorny issues together, which politicians are having a hard time grappling with, is not a recipe for success in my opinion,” said Patterson.

“The stakes are pretty high and the frustrating thing is that it`s really unnecessary. The solution is easy to see. Congress can easily pass a bill to re-open the government and raise the debt ceiling today if the will was there,” he added.

The Treasury has said it will have just USD 30 billion left in the coffers by October 17, most likely not enough to cover government spending as its bills typically reach USD 60 billion a day.

Patterson told CNBC the USD 30 billion figure “sounded about right.”

“It sounds like a lot of money but in the context of the federal budget it`s not. That`s essentially running on fumes,” he said.

“You wouldn`t want USD 3 in your check book if you have a lot of checks outstanding,” he added.

The US economy expanded at a rate of 2.5 percent from April to June, up from 1.8 percent in the first quarter.

– By CNBC`s Katie Holliday: Follow her on Twitter @hollidaykatie

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apple now hoards 10% of US corporate cash

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apple`s USD147 billion cash pile accounts for 10 percent of overall cash held by US corporates, according to Moody`s Investors Service, up from 9.5 percent at the end of 2012.

US corporates held a total of USD 1.48 trillion in cash as of 30 June 2013, up 2 percent from the previous record USD 1.45 trillion at the end of 2012. The survey covers 1,067 non-financial companies based in the U.S. and rated by Moody`s.

The technology sector is the most cash-flush of all industries, with the top four cash kings – Apple, Microsoft, Google, Cisco – holding a collective USD 329 billion.

Yet Apple`s cash hoard is almost double that of Microsoft, for example, which has USD 77 billion.

Apple has been active in returning cash to shareholders over the past 18 months. In April, the company pledged to spend USD 60 billion in buying back its stock by the end of 2015. By June, it had re-purchased USD 16 billion worth of its stock.

However, investors including billionaire activist investor Carl Icahn believe the company should do more. Icahn revealed on Tuesday that he had dinner with Apple CEO Tim Cook and urged him to increase its stock buyback program .

“Had a cordial dinner with Tim last night. We pushed hard for a [USD]150 billion buyback. We decided to continue dialogue in about three weeks,” he said on Twitter.

Icahn said in August that if Apple would issue a larger share buyback, the stock could be worth as much as USD 700 a share. Apple shares traded at USD 487.96 on Tuesday.

Cash not confined to techs

After the technology sector, the healthcare and pharmaceutical industry is the next most cash-flush sector, according to Moodys. Pfizer for example, is sitting on a USD 50 billion cash pile.

Automakers are also among the most cash-rich, with Ford Motor and General Motors holding USD 27.7 billion and USD 26 billion, respectively.

– By CNBC`s Ansuya Harjani; Follow her on Twitter @Ansuya_H

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Obama: GOP shut down government over ‘ideological crusade’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US President Barack Obama castigated U.S. House of Representatives Tea Party members for shutting down the US government over an “ideological crusade” on health- care reform.

Also Read: Gold hits 8-week low, loses steam built on US govt shutdown

Speaking from the White House Rose Garden on the first day of the partial government shutdown, Obama said that the longer the shutdown continues, the worse the impact will be.

The president says Republicans should not be able to hold the entire economy “hostage.” He is urging them to reopen the government quickly and allow furloughed federal employees to go back to work.

The government shut down because Congress did not pass a funding bill ahead of Monday’s midnight deadline for the end of the 2013 fiscal year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nation on vacation: China’s Golden week kicks off

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tuesday marks the start of Golden Week in China, a week-long national holiday during which millions of mainlanders set off on vacation, hit the shopping malls and dine out.

This seven-day period, starting from National Day on October 1, will provide a snapshot of how consumers in the world`s most populous nation are faring in what has been volatile year for the world`s second-largest economy.

“I expect retail sales during this year`s Golden Week to be better than last year, because the economy is in better shape,” Francis Lun, CEO of GEO Securities told CNBC. Last year, retail sales during the holiday period rose 15 percent on-year, slowing from 17.5 percent growth in the previous year.

On top of retailers, the nation`s tourism sector is expected to get a major boost. Around 7.2 million passengers are forecast to travel by flight during the holiday period, 8.3 percent higher compared with the same period in 2012, according to the Civil Aviation Administration.

In fact, Chinese carriers are adding 3,800 domestic and international flights to the current daily schedule of 12,000 to cope with the travel rush, the Civil Aviation Administration said.

While some travelers venture outside the country to destinations such as Bangkok, South Korea and Cambodia, the majority travel domestically.

Over 610 million people are expected to travel by road and waterway during the week-long period, according to the Ministry of Transport.

“I`m going with my parents to see my grandparents in Jiangsu province. They live relatively close so we`ll drive there. It costs too much to go overseas,” said 26-year-old Zhu Qingxia, who is also based in Jiangsu, an eastern coastal province of China.

“Next year, I`m planning a trip to Switzerland. I need to start saving to make that trip happen,” she added.

In order to make domestic vacations more affordable, the government lowered ticket prices at 1,400 tourist attractions around the country this year, according to local media reports. Last year, it introduced a rule to suspend highway tolls for passenger cars and motorcycles during the holidays.

The move, however, led to unprecedented traffic, which made global headlines and continues to haunt travelers.

“I`m not going anywhere. You are asking for trouble if you travel during this break. I`ll stay at home and maybe head to the countryside,” said 33-year-old Beijing-based Li Jun.

“Cars are convenient, but expect traffic jams. Trains are cheaper and convenient, but good luck with buying tickets. Airplane tickets are the best, but more expensive,” she added.

-By CNBC`s Ansuya Harjani; Follow her on Twitter @Ansuya_H

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

A Fed love story: Janet Yellen meets her match

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Janet Yellen found love at the Federal Reserve. She met him at a luncheon in 1977, launching a whirlwind romance that led to marriage in less than a year.

In connecting with George Akerlof, then on a temporary assignment at the Fed’s research division in Washington, Yellen discovered not just a soul mate but an intellectual equal with similar views about the societal impact of economic policy.

Together, they formed one of the pre-eminent power couples of modern economics. They collaborated on ambitious research while holding increasingly demanding jobs and raising a son who grew up to share their academic passion.

Yellen, who is currently the No. 2 official at the Fed, is expected to win nomination from President Barack Obama to become its next chairman, replacing retiring Ben Bernanke. If approved by the Senate, her appointment would crack one of the highest US glass ceilings and make her the first woman to head the central bank in its 100-year history.

But the influence of her husband in shaping her thinking and professional success cannot be overestimated, say those who have known the couple for decades. Yellen and Akerlof declined interview requests.

The support went both ways. Yellen helped Akerlof maintain the focus that distinguished his academic work, highlighted in 2001 when he shared a Nobel Prize in economics. He later wrote in an autobiography for The Nobel Foundation (posted on Nobelprize.org) about happily collaborating with his wife for more than a decade.

“Not only did our personalities mesh perfectly, but we have also always been in all but perfect agreement about macroeconomics. Our lone disagreement is that she is a bit more supportive of free trade than I,” he wrote.

Yellen, 67, came to the Fed in 1977 from Harvard University after a recruiting effort that involved Ted Truman, then about to take over the Fed’s international finance division. Truman had known Yellen since 1967 when she came to Yale University to pursue her PhD in economics; he was a junior professor and heard her oral exam.

The recruiters faced an uphill battle because Yellen was teaching at Harvard University and her early research made her a sought-after talent. But she took the Fed job to work on projects in trade and financial studies.

The Fed was under pressure in 1977 with rising inflation unsettling the economy. Truman assigned Yellen to research international monetary reform.

Akerlof, 73, whose early paper, “The Market for Lemons,” had made a splash among economists, landed at the central bank for a one-year stint between jobs. Recently divorced, he came from the University of California-Berkeley en route to a post at the London School of Economics.

After connecting with Yellen, “we decided to get married hastily, not only because we had so little doubt about each other, but also for practical reasons … if we were to avoid being separated, Janet would also need to get a job in England too,” he wrote.

Truman said Yellen had barely settled into the Fed before announcing she would join Akerlof and lecture at the London School of Economics. “We were disappointed when she left with him, though completely understanding. We had invested a lot in attracting her,” he told Reuters in an email.

Yellen, of course, would be back eventually—next as a Fed board member and one of Truman’s seven bosses.

In London, Yellen and Akerlof both had identity problems. “We were Americans, not English,” he later wrote. After two years, they returned to Berkeley, where Yellen was hired to teach in the business school.

Yellen twice won a coveted Berkeley teaching award. And she and Akerlof, sometimes in partnership with others, collaborated on research that benefited from their different styles, colleagues said.

“George was less disciplined, more artistic and perhaps creative; Janet was more grounded, sensible, and a paragon of common sense,” said Andrew K. Rose, who was hired by Yellen and now serves as associate dean of Berkeley’s Haas School of Business. Rose collaborated with the couple on several papers, including a year of research on the East German economy.

Jim Adams, a University of Michigan economics professor who has known Yellen since 1973 and also did research with her, said her relationship with Akerlof shows “how mature they are that they can be so deeply in love as people who are so different from each other.”

“George is an incredibly creative person,” Adams said. “He just has such unusual ideas by the standards of a very buttoned-down discipline where there is conformism, as is economics these days. He is not afraid to be unorthodox and off-beat in the service of real intellectual exploration.”

Yellen, he said, “champions what is known as ‘slow-thinking’—really thinking through things carefully and their implications.”

The couple’s first paper together was inspired during a Berkeley visit from Yellen’s Yale mentor, Keynesian economist James Tobin. Tobin had advanced a line of thinking that government intervention could avert recession. He urged the couple to study why, and, as Akerlof put it, they discovered “sticky prices and wages would explain why monetary policy would be effective: if the money supply increased, real balances, which determine real demand, would rise.”

Their later research focused on poverty and policy, including on unemployment and a paper on the costs of out-of-wedlock childbearing.

Yellen returned to the Fed in 1994 with her appointment to the central bank’s board, and Akerlof commuted between Washington and Berkeley, continuing to teach. When Yellen moved to the President Bill Clinton’s Council of Economic Advisers, Akerlof took leave.

He tended the household and helped raise their son, but his main support for Yellen while she was at the White House was “providing psychological support in the daily political storms,” he wrote. Yellen maintained balance, friends say, with mothering and gourmet cooking.

In 1999, the couple returned to Berkeley, their son having followed their paths to Yale. She was named head of the Federal Reserve Bank of San Francisco in 2004 and nominated to be vice chair of the Fed in 2010.

Akerlof won the Nobel prize in October 2001. In media coverage, he posed for photos with Yellen as the family cat sashayed through the room.

Now, as Yellen anticipates yet-another promotion, their friends say she is bound to make the Fed a stronger organization.

“She’s the kind of person who makes everyone around her better,” Adams said.

The couple certainly is unusual in one way, joked their collaborator Rose. “How many Nobel laureates work in the same discipline as their spouse, but are less famous?”

Read more:

Should’ve fought Yellen harder: Summers’ friends
Wall Street wants Yellen, not Summers, as next Fed chief
The case against Janet Yellen

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow