London Immersion Experience

The Impact of Increasingly Interconnected Global Markets Case Study – the European Debt Crisis

As the European debt crisis has unfolded, raising fundamental questions about the future of the Euro and the EU, and even the nature of sovereignty in the context of the union, it has also highlighted the slippery downside of increasingly interconnected global economic and financial markets.  How has the Greek government’s fiscal policy led to the need for German taxpayers to bail them out?  Why should China care about the future of Greece – and why would Germany’s Chancellor Angela Merkel subtly call on China for economic support for the EU?  What does it all mean for the U.S. economy, and how should corporate executives think about the potential for upside and downside of the increasingly complex and fluid global economy we’re operating in?

Our London immersion will touch on these topics and more, with the goal of exposing you to underlying issues that will make you a more informed reader of The Economist, the Wall Street Journal or the Financial Times.  We will also focus on an understanding of the complexity of decisions today’s executives make on a daily basis in the context of a global market.  Whether the European debt crisis impacts you directly or not, the implications and ripple effects of less clear boundaries will shape the course of your career.

Thursday evening – 6/14

  • Optional reception and dinner with invited London alumni

Friday – 6/15

  • Overview session with John Micklethwait, Editor-in-Chief of The Economist
    • Author of  several books including “A Future Perfect: the Challenge and Hidden Promise of Globalisation” and co-author of “Globalisation:  Making Sense of an Integrating World”
    • Full Bio
  • Fortune 100 corporate perspective – discussion with Bob DeLorge, CEO Raytheon UK, on the organizational impact of an increasingly borderless market
  • Managing Risk – an overview with Professor Alex Arapoglu on the ripple effects of the debt crisis across currency and debt markets, its market impact for companies and managing risk in a global context
  • Professor Arapoglu has been a derivatives trader and head of risk management worldwide for a major New York bank (Chemical Bank), and served as treasurer and head of risk management worldwide for Mizuho Capital Markets Corporation.  As treasurer, he was responsible for firm investments, funding, liquidity risk management as well as all non-trading foreign exchange and interest rate risk.  As head of risk management, he managed the market risk department and implemented a variety of metrics and techniques for the analysis of trading, credit and liquidity risk.  He is currently a member of our finance faculty and will be the Lead Professor for an upcoming elective on Fixed Income Investments. 
  • Eliminate the Euro?  Discussion with Jonathan Tepper, current finalist for the Wolfson Prize for his proposal to dismantle the Euro
    • Jonathan Tepper is founding partner and Chief Editor of Variant Perception.  He is the co-author with John Mauldin of the NY Times best seller Endgame: The End of the Debt Supercycle.  Jonathan started his career as a generalist equity analyst at SAC Capital.  After SAC, Jonathan worked in London at Bank of America as a Vice President on the proprietary trading desk where he traded a rates and currency book. Jonathan founded Demotix, an award winning citizen journalism website.  Jonathan is a Rhodes Scholar with a M.Litt. from Oxford University. He graduated with highest honors in History and Economics from the University of North Carolina at Chapel Hill.
  • Dinner at local restaurant in London

Saturday – 6/16

  • Equity Markets and Investment Flows in an Interconnected World – an overview session with Professor Tarun Ramadorai, Saïd Business School, University of Oxford
    • Professor Arapoglu has been a derivatives trader and head of risk management worldwide for a major New York bank (Chemical Bank), and served as treasurer and head of risk management worldwide for Mizuho Capital Markets Corporation. As treasurer, he was responsible for firm investments, funding, liquidity risk management as well as all non-trading foreign exchange and interest rate risk. As head of risk management, he managed the market risk department and implemented a variety of metrics and techniques for the analysis of trading, credit and liquidity risk. He is currently a member of our finance faculty and will be the Lead Professor for an upcoming elective on Fixed Income Investments.
    • Full bio 
  • Panel discussion – the view from the markets, with practitioners including Dan Draper, Managing Director and Head of ETFs for Credit Suisse Asset Management
  • Dinner at OXO Tower Brasserie and guided river cruise on the Thames

Sunday – 6/17

  • The Role of Government in Creating the Debt Crisis, and Shaping the Recovery – with Professor Doug Shackelford, Associate Dean for MBA@UNC
    • Professor Shackelford is the Meade H. Willis Distinguished Professor of Taxation and director of the UNC Tax Center. He has served in multiple senior leadership roles for UNC Kenan-Flagler, including as Senior Associate Dean. He is a research associate in public economics at the National Bureau of Economic Research in Cambridge, Mass., and has published widely in accounting, economics and finance journals. He has held visiting faculty positions at Stanford University, Universiteit Maastricht in the Netherlands and Oxford University. Professor Shackelford addresses taxes and business strategy in his research and teaching.
    • Full Bio
  • Current Issues in Europe – the real-time state of play from Clemens Fuest, a senior economist and advisor to the German government
  • Town Hall discussion and wrap up

Pre-Reading

We will be adding any required pre-reading or pre-work no later than 3 weeks prior to the start of the immersion experience, so please check back. 

Although not required, I highly recommend Michael Lewis’ essays in Vanity Fair and the collection in book form “Boomerang” – review below – as interesting reading related to our London theme.
http://www.nytimes.com/2011/09/27/books/boomerang-by-michael-lewis-review.html?pagewanted=all

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