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China Overtakes U.S. as World's Largest Economy


by Mike Bird

Business Insider

Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.


Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

The simple logic is that prices aren't the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it's not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist's Big Mac Index is a great example of these disparities.

So the IMF measures both GDP in market-exchange terms and in terms of purchasing power. On the purchasing-power basis, China is overtaking the US right about now and becoming the world's biggest economy.

Please read more here.


HBS/MIT Energy Symposium


This year’s HBS/MIT energy symposium will feature executives (including over 20 CEOs and 15 partners from top PE/VC firms) from leading energy organizations (many of whom will be recruiting) including: 

  • Chevron
  • ExxonMobil
  • ConocoPhillips
  • Saudi Aramco
  • Shell
  • General Electric
  • NextEra Energy
  • Sierra Club
  • Rocky Mountain Institute
  • Department of Energy
  • Cameron
  • NOV
  • Emerson
  • FedEx
  • Bain Capital
  • NGP Energy Technology Partners
  • Riverstone
  • Natural Gas Partners
  • HG Capital
  • SCF Partners
  • Kleiner Perkins Caufield & Byers
  • Energy Ventures
  • RockPort Capital
  • Braemar Energy Ventures
  • CSL Capital Management
  • Imaginea Energy
  • FTS International
  • PIRA Energy
  • Enduring Resources
  • Massachusetts Clean Energy Center
  • Spinnaker
  • Universal Well Services
  • Elevance Renewable Sciences
  • Lanzatech
  • Planetary Power
  • First Green Partners
  • Boston Consulting Group
  • Bain & Company
  • Equitable Origins
  • E3

Please read more here

University Trading Challenge – North America

The 4th US University Trading Challenge – November 14th 2014

An Educational Competition for Finance and Economic Students

The University Trading Challenge (UTC) is open to full-time students in Finance and Economics programs at any university. The competition has four main components: Real Market Trading Challenge , a Portfolio Trading Challenge, and (2) Case-Study Presentations.  The live portion of the competition (Short-Term Trading and Case-Study Presentations) will take place Friday November 14th, 2014 at Fordham University’s Trading Floor in Bronx New York.

Please see more details here.

PBS' Frontline Documentary: "To Catch a Trader"


Frontline correspondent Martin Smith goes inside the government’s ongoing, seven-year crackdown on insider trading, drawing on exclusively obtained video of hedge fund titan Steven A. Cohen, incriminating FBI wiretaps of other traders, and interviews with both Wall Street and Justice Department insiders.

Japan's Stock Market Rocked by $617 BILLION "Fat Finger" Trading Error



Share orders worth several billions of dollars were cancelled in Japan due to a trading error.

At 9:25 am local time, orders for shares in 42 companiestotalling 67.78tn yen ($617bn, £380bn, €488bn) were cancelled, according to data compiled by Bloomberg from the Japan Securities Dealers Association.

The stock orders amount to more than the size of Sweden's economy.

The companies involved in the trading error include Toyota Motor, Honda Motor, Canon, Sony and Nomura Holdings. The biggest order was for Toyota shares at 1.96 billion, representing 57% of the company's outstanding shares, for 12.68tn yen through an off-exchange transaction.

Off-exchange or over-the-counter trades are conducted directly between two parties without supervision of the stock exchange.

"It's not rocket science that there was a fat finger here, but it reopens the question about accountability," Gavin Parry, managing director at Hong Kong-based brokerage Parry International Trading, told Bloomberg.  

Please read more in the International Business Times.

Note: Image credit from Blue Point Trading.