What We Read Today 21 May 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary “reading list” which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for “reading list” items are gratefully reviewed, although sometimes space limits the number included.

• China to delay Russia gas deal in blow to Putin (Lucy Hornby and Jamil Anderlini, Financial Times) Russian president Vladimir Putin has been trying to show he has alternative markets for Russia’s energy exports as the Ukrainian crisis drags on. But China is not jumping for the bait. PetroChina, the listed subsidiary of state-owned China National Petroleum Corp, said Wednesday that a deal to import natural gas from Russia’s Gazprom would not be signed “in the near future”. It had been reported that Putin hoped to announce such a deal during a state visit to Beijing this week.

• Credit Suisse Chief Sees Little Impact From Tax Evasion Plea (Jenny Anderson, DealBook, The New York Times) Credit Suisse pleaded guilty to tax evasion, a felony and paid $2.6 billion in penalties. Their CEO said the bank has seen no impact on their business. So it seems this is just business as usual.

• Is Credit Suisse Really in Jail? (James Kwak, The Baseline Scenario) No they are not. This is just another slap on the wrist. Kwak argues that this bank is not “too big to jail” and should have received a more severe penalty. If a death penalty were issued the bank could have been wound down (if it was solvent). If the bank is not solvent then it should be put out of its misery. See also Kwak’s article in The Atlantic: Why Is Credit Suisse Still Allowed to Do Business in the United States?

• Appearance: What Does Credit Suisse’s Guilty Plea Mean? (Barry Ritholtz, The Big Picture)

• Yen Higher as Easing Likelihood Wanes (DailyForex) The yen has moved to a three-month high (101.478) as the markets continued to react to Japan’s “blow-out” first quarter GDP report (preliminary) one week ago today.

• China defiant as US warns over sea row (Business Spectator) Australian view of the China – Vietnam oil drilling row.

Today there are 11 articles discussed ‘behind the wall’. There is a substantial discussion of Steve Keen’s latest analysis of the proposed Australian austerity budget.

Please support all that we do at Global Economic Intersection with a subscription to our premium content ‘behind the wall’.

You get a full year for only $25.