IMF sees QE tapering spark global rate rises; Russia has highest wealth inequality; Walmart ends India JV; What a tiny pronoun says about you

1 IMF sees QE tapering spark global rate rises (Heather Stewart in The Guardian) The International Monetary Fund has underlined the scale of the challenge facing Janet Yellen if she is confirmed as Federal Reserve chairman by issuing a stark warning that phasing out quantitative easing could spark "fire sales" of assets, wiping $2.3tn off bond markets. The IMF said markets had become riskier over the past six months as investors began to adjust to the prospect of the withdrawal of the Fed's $85bn-a-month programme. Under its "adverse scenario", the fund warned, global interest rates would jump abruptly, causing turmoil across world financial markets.

Yellen is widely seen as a monetary-policy "dove" who will be reluctant to rush into turning off QE, and her appointment cheered markets, which have thrived on the flow of cheap funds from the central bank's bond-buying spree. But the Fed has clearly signalled its intention to scale back the pace of its asset purchase programme once unemployment falls below 7%.

The IMF regards the phasing out of QE as a positive development, reflecting the growing US recovery, but the report warns that "managing a smooth transition could prove challenging, as investors adjust portfolios for a new regime with higher interest rates and greater volatility".
http://www.theguardian.com/business/2013/oct/09/imf-federal-reserve-qe-tapering-rate-rises

2 Russia has highest wealth inequality (The Guardian) With just 110 individuals holding 35% of the country's riches, Russia has the highest level of wealth inequality in the world (with the exception of some small Caribbean nations that have resident billionaires). There's a stark contrast between that and the world average, where billionaires hold around 1-2% of wealth.

Globally, for every US$170bn in household wealth there is on average 1 billionaire. In Russia, there is just US$11bn in household wealth for every billionaire in the country.

http://www.theguardian.com/news/datablog/2013/oct/09/worlds-wealthy-where-russia-rich-list

3 Walmart ends India joint venture (BBC) Wal-Mart, the world's biggest retailer, has agreed to dissolve its joint venture with one of India's leading business groups, Bharti Enterprises. Wal-Mart will acquire Bharti's stake in the venture, which operates wholesale cash and carry stores in India. The US firm said that it was still keen to grow its business in India. It said it would "continue to advocate for investment conditions" that allow foreign direct investment in multi-brand retail in the country. 

 

India opened up its multi-brand retailing sector to foreign investors last year. But so far no foreign firm has applied to enter the market. Many industry players and analysts have said that strict pre-conditions attached to investments have kept companies away. Prompted by these concerns, India eased key rules governing foreign direct investment (FDI) in the sector in August this year. The previous rules made it mandatory for foreign supermarkets to source 30% of their products from small Indian firms.

The government has retained that requirement, but says foreign firms will be given five years in which to reach that target, giving them the option of importing goods from overseas initially. Foreign retailers will also be allowed to set up shop in cities with a population of less than one million, which they had been barred from earlier.

http://www.bbc.co.uk/news/business-24455582

4 What a tiny pronoun says about you (The Wall Street Journal) You probably don't think about how often you say the word "I." You should. Researchers say that your usage of the pronoun says more about you than you may realize.

Surprising new research from the University of Texas suggests that people who often say "I" are less powerful and less sure of themselves than those who limit their use of the word. Frequent "I" users subconsciously believe they are subordinate to the person to whom they are talking.

Pronouns, in general, tell us a lot about what people are paying attention to, says James W. Pennebaker, chair of the psychology department at the University of Texas at Austin and an author on the study. Pronouns signal where someone's internal focus is pointing, says Dr. Pennebaker, who has pioneered this line of research. Often, people using "I" are being self-reflective. But they may also be self-conscious or insecure, in physical or emotional pain, or simply trying to please.

Dr. Pennebaker and colleagues conducted five studies of the way relative rank is revealed by the use of pronouns. The research was published last month in the Journal of Language and Social Psychology. In each experiment, people deemed to have higher status used "I" less. The findings go against the common belief that people who say "I" a lot are full of themselves, maybe even narcissists.

http://online.wsj.com/news/articles/SB10001424052702304626104579121371885556170