Good Morning (and happy Friday)!
The big story this morning is that House Majority Leader Eric Cantor (R-Va.) walked away from budget talks led by Vice President Biden Tuesday. Cantor’s announcement comes as talks over taxes and how to raise the national debt limit appeared to have been making progress. Biden said it was time for party leaders to take a seat at the bargaining table.
Lawmakers have until Aug. 2 to negotiate a deal, or risk sending global markets into a tailspin, and raising the cost of U.S. borrowing.
1) India’s growth begins to falter
The Indian economic growth spurt is beginning to slow, reports The Post’s Simon Denyer, and business leaders are not happy about the government’s proposed medicine: Raising interest rates to combat rising inflation that is due to rising oil and food prices:
“There is no point substituting one bad policy with another bad policy,” said Surjit Bhalla, chairman of Oxus Investments. “When the patient is down, don’t give him another kick in the pants.”
Denyer goes on to report on India’s sliding stock market, making it the worst-performing market in Asia. (The Washington Post)
2) Google’s Page and Schmidt to Senate Committee: Um, no thanks.
Google executives Larry Page and Eric Schmidt refused to testify before the Senate antitrust subcommittee. Instead, the executives have sent their Chief Legal Officer David Drummond to make an appearance. The committees esteemed chairs are not happy. Senators Herb Kohl (D-Wis.) and Michael Lee (R-Utah) sent a letter to Google calling on Page and Schmidt to appear: “We strongly prefer to have one of you as the witness representing Google at the hearing, which will address fundamental questions of business operations rather merely legal issues.” The joint letter goes on to threaten a subpoena, which would legally compel the Google higher-ups to make an appearance. (USA Today)
3) Study: VCs are to IPOs as cats are to catnip
A study released by Deloitte and the National Venture Capital Association this past spring, which surveyed more than 80 percent of venture capitalists from around the world, showed that the VCs were nervous — very nervous. The world’s venture capitalists found “that current IPO activity levels in their home countries are too low” — so low, in fact, that investors feared the venture capital industry was at risk. The findings in the wake of LinkedIn and Pandora’s IPOs lead TechCrcunch’s Rip Empson to suggest that perhaps VCs need an IPO rehab. (TechCrunch)
4) Twitter takes down a mobster
Mobster James “Whitey” Bulger was taken down without firing a single shot, but there were plenty of tweets and television ads. (The Washington Post)
5) Miles Nadal: We need marketing innovation desperately
MDC Partner Inc. speaks from the Cannes Lions International festival — a gathering place for the world’s leading marketers.
“The fundamental need for marketing innovation is greater than ever before,” says Nadal in response to Bloomberg’s Erik Schatzker’s question as to whether the folks at Cannes Lions were in any way affected by the global economic decline. “You will continue to see double digit growth, we think, from the agency networks.” (Bloomberg/The Washington Post)