Posts in category Approved


ApprovedBusinessBusiness and finance

Online matchmaking businesses in India have many ways to woo

Arranged by algorithm

“IT WAS 2012…I was number 37,” says Ashwini, referring to the badge that was pinned on her shirt pocket. Her task was to go onto the stage and introduce herself to around 70 eligible bachelors and their parents. Families then conferred and, provided caste and religious background proved no obstacle, would approach the event’s moderator asking to meet number 37. At midday girls would wait for prospects to swing by, again with parents on either side. A brief exchange might establish the potential bride’s cooking skills or her intention to work after marriage. If the two sides hit it off, they would exchange copies of their horoscopes. Nearly 50 men lined up to meet Ashwini that day, speed-dating style. No one made the cut. She later married a colleague.

Such gatherings form an important part of the wedding industry, worth around $50bn a year, in a country where arranged marriages continue to be the norm. India has 440m…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Streaming has pushed Latin music into the mainstream

“MI GENTE” lures listeners with a mesmerising hook, a thumping beat and lyrics about breaking down barriers. A collaboration between J Balvin, a Colombian reggaeton star (pictured), and Willy William, a French producer, the latest product of this summer’s Latin craze is crooned almost entirely in Spanish. (The title means “My People”; reggaeton borrows from hip hop, reggae and rap.) The song topped the charts on Spotify, a streaming service, for weeks. “To be a crossover artist, you used to have to sing in English,” said John Reilly, Mr Balvin’s publicist. Now six of YouTube’s top ten music videos are predominantly in Spanish. In August the Billboard Hot 100, which tracks streams, sales and radio plays, sported seven Latin hits. Just five graced the chart in all of 2016.

Latin music is helping the music industry to arrest years of decline. Its growth is far outpacing that of other genres. Last year Latin America yielded just $598m out of total global recorded-music…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Behind the veil of Saudi Aramco

IF SAUDI ARAMCO is a state within a state in Saudi Arabia, then the blandly named Oil Supply Planning and Scheduling (OSPAS) is its deep state. To enter it, you pass tight security at Aramco’s suburban-style headquarters in Dhahran, in the east of the kingdom. The transition is eye-opening. Suddenly, English is the common tongue even among Saudi “Aramcons”, as its workers are known. Female employees, their faces uncovered, lead meetings of male colleagues. The crisp banter is common to engineers everywhere. A toilet break is called a “pressure-relief” exercise.

Deep within, OSPAS is even further removed from the kingdom outside. The few executives with clearance to enter call it the “nerve centre” of the world’s largest oil company. Using 100,000 sensors and data points on wells, pipelines, plants and terminals, it directs every drop of oil and cubic foot of gas that comes out of the kingdom (10% of the world’s oil supply), monitors it on giant screens as it heads to…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Ryanair cancels more than 2,000 flights over the next six weeks

Not his biggest cock-up said O’Leary

RYANAIR, an Irish airline, is known for three things: low fares, the brash way in which Michael O’Leary, its chief executive, advertises them, and its record for sticking to its flight schedules. The last of these is key to its appeal: many businessmen chose Ryanair more for its punctuality than its cheapness. And so the announcement on September 15th that it is cancelling over 2,000 flights between now and the end of October—around 2% of its capacity over the period—is more serious than it may at first seem. Ryanair’s share price fell by more than 5% in the aftermath.

The problems began in early September when Ryanair’s on-time record plunged, owing to a pilot shortage. To restore punctuality, it cancelled many flights at short notice; passengers were marooned around Europe. Up to 400,000 people booked on the 2,000 scrapped flights risk missing business trips and holidays.

Mr O’Leary says the…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

What if large tech firms were regulated like sewage companies?

THREE-QUARTERS of Americans admit that they search the web, send e-mails and check their social-media accounts in the bathroom. That is not the only connection between tech and plumbing. The water and sewage industry offers clues to the vexed question of how to regulate the Silicon Valley “platform” firms, such as Alphabet, Amazon and Facebook. The implications are mildly terrifying for the companies, so any tech tycoons reading this column might want to secure a spare pair of trousers.

In America and in Europe a consensus is emerging that big tech firms must be tamed. Their dominance of services such as search and social media gives them huge economic and political clout. The $3trn total market value of America’s five biggest tech firms (Apple and Microsoft are the other two) suggests that investors believe they are among the most powerful firms in history, up there with the East India Company and Standard Oil.

Trustbusters in need of instant gratification want to break…Continue reading

Read more 0 Comments
ApprovedBusiness and financeFINANCEFinance and economics

Marital choices are exacerbating household income inequality

It’s all a matter of degree

“HERE’S what nobody is telling you: Find a husband on campus before you graduate,” wrote Susan Patton, a human-resources consultant, in 2013. In an infamous letter to the editor of Princeton’s student newspaper, Ms Patton warned female students at the university that they will “never again be surrounded by this concentration of men who are worthy of [them]”. Critics responded harshly. Ms Patton recalls that she was branded “a traitor to feminism, a traitor to co-education and an elitist”.

Economists might offer yet another critique of Ms Patton’s letter: it was largely unnecessary. It is clear to academics that people tend to marry spouses with similar levels of education. They also know that “assortative mating”, as the practice is called in the jargon, is exacerbating income inequality. In America, Britain, Denmark, Germany and Norway, they have found that household income would be more evenly spread if…Continue reading

Read more 0 Comments
ApprovedBusiness and financeFINANCEFinance and economics

Huge volumes of data make real-time insurance a possibility

Mind your heads

EVEN at weddings or whale watches, the buzz of a drone is no longer a surprise. Drone photography is booming. Gartner, a consultancy, says some 174,000 drones will be sold for commercial use around the world this year, and 2.8m to consumers. It is easy to imagine a few might fall out of the sky, causing damage the pilot cannot hope to pay for: crushed wedding cakes, injured spectators and so on. Amid scores of near-misses, several incidents have already occurred. In 2014, for example, a drone filming a triathlon in Australia crashed on a competitor’s head.

Clearly, drone-users need insurance. Typically, risks are insured through the payment of an annual premium. Insure4drones, a British specialist, charges £738.86 ($1,000) to cover a DJI Phantom, a bestselling drone, for a year. From October Flock, a London startup, will offer insurance on a flight-by-flight basis, at the push of a button in an app, to any commercial drone-operator in Britain….Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Boeing takes off on a flight of hypocrisy against Bombardier

“WE WON’T do business with a company that is busy trying to sue us.” So said an uncharacteristically stern Justin Trudeau, Canada’s prime minister, alongside his British counterpart, Theresa May, in Ottawa on September 18th. The two had teamed up to take on Boeing. The giant American aeroplane-maker is pressing Donald Trump’s administration to impose duties on commercial jets made by Canada’s Bombardier. Boeing says its smaller rival is using Canadian government subsidies to sell aircraft to Delta, an American carrier, at below cost price.

Few in either country question that Bombardier has had vital financial support from the Canadian and British governments since 2005 for its small jetliner, the C-Series. As the plane’s development costs soared, to $5.4bn, Bombardier struggled to find buyers for it; financial trouble followed. An estimated C$4bn ($3.4bn) in state support, including C$2.8bn in 2015, stopped a nosedive. It was not until 2016 that the aircraft’s future seemed…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Big technology firms are newly in the hot seat at home

Jane Doe and friend

ANTITRUST, privacy, hate speech—whenever the European Union tries to rein in tech giants, Americans accuse it of protectionism. That argument has always been simplistic, but now it is harder to make; scarcely a week passes in Washington when companies like Apple and Google are not in politicians’ crosshairs.

The latest target is Facebook. Earlier this month the firm revealed that 470 accounts that appeared to be controlled from Russia had bought advertisements worth a total of $100,000 on the social network between June 2015 and May 2017. Alex Stamos, Facebook’s chief security officer, said they aimed at “amplifying divisive social and political messages”.

This was the first time Facebook had acknowledged that Russia may have used the social network, leading the team of Robert Mueller, the special counsel investigating possible links between Donald Trump’s presidential campaign and the Russian government, to issue a…Continue reading

Read more 0 Comments
ApprovedBusiness and financeFINANCEFinance and economics

Norway’s sovereign-wealth fund passes the $1trn mark

A year earlier than expected, Norway’s sovereign-wealth fund, the world’s largest, surpassed $1trn in assets on September 19th. It had gained over $100bn in the past year, thanks in large measure to the global stockmarket boom in 2017: around two-thirds of its assets are held as equities (over 1% of shares globally). It helps that Norwegians continue to earn fat revenues from pumping North Sea oil and gas, which go to the fund to be invested abroad. The fund is so big it is becoming a tool for 5m-odd Norwegians to shape values abroad. It is an increasingly activist shareholder, speaking out on executive pay, ethical behaviour, companies’ use of water, child labour and more. Both its size and influence are likely to keep on growing.

Read more 0 Comments
ApprovedBusiness and financeFINANCEFinance and economics

America holds the World Trade Organisation hostage

EIGHT months into Donald Trump’s presidency, the rules-based system of global trade remains intact. Threats to impose broad tariffs have come to nothing. Some ominous investigations into whether imports into America are a national-security threat are on hold. Mr Trump looks less a hard man than a boy crying wolf. All the same, supporters of the World Trade Organisation (WTO), the guardian of that rules-based system, are worried. Other dangers are lurking. There is more than one way to undermine an institution.

The WTO is meant to be a forum for reaching deals and resolving disputes. But all 164 members must agree to new rules, and agreement has largely been elusive. So if members do not like today’s rules, as interpreted by judges, they have little prospect of negotiating better ones. That puts pressure on the WTO’s judicial function, the bit that has been working fairly well.

Trouble is brewing at the WTO’s court of appeals. It is meant to have seven serving judges, but has only five and by the end of the year will have just four. The Americans refuse to start the process of filling the spots, citing systemic concerns. What seemed an arcane procedural row has become what some call a “crisis”.

Read more 0 Comments
ApprovedBusiness and financeFINANCEFinance and economics

China sets its sights on dominating sunrise industries

IN RECENT days China set the record for the world’s fastest long-distance bullet train, which hurtled between Beijing and Shanghai at 350kph (217mph). This was a triumph of industrial policy as much as of engineering. China’s first high-speed trains started rolling only a decade ago; today the country has 20,000km of high-speed track, more than the rest of the world combined. China could not have built this without a strong government. The state provided funds for research, land for tracks, aid for loss-making railways, subsidies for equipment-makers and, most controversially, incentives for foreign companies to share commercial secrets.

High-speed rail is a prime example of the Chinese government’s prowess at identifying priority industries and deploying money and policy tools to nurture them. It inspires awe of what it can accomplish and fear that other countries stand little chance against such a formidable competitor. Yet there have also been big industrial-policy misses, notably…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Toys “R” Us files for bankruptcy

ASK young American parents about Toys “R” Us and they are likely to be able to sing a jingle from their childhood: “I don’t wanna grow up, ’cause maybe if I did, I couldn’t be a Toys ‘R’ Us kid”. For children of the 1980s, Toys “R” Us was a mecca at the strip mall, an awe-inspiring array of dolls, trucks, board games, bikes, art supplies and much more. Many of them noticed when on September 18th, the chain filed for bankruptcy.

Dave Brandon, the company’s chief executive, emphasised that shops would carry on operating as usual and claimed that the best era of Toys “R” Us was still to come. “These are the right steps to ensure that the iconic Toys “R” Us and Babies “R” Us brands live on for many generations,” he declared. A Chapter 11 bankruptcy, many analysts agree, is a sensible way to deal with the chain’s $5bn of long-term debt. So Toys “R” Us is not dead. But its future is hardly certain.

The company’s tale in many…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

Global LNG giants turn to poor countries for new markets

Bringing rivers of the liquefied stuff

WHEN it comes to liquefied natural gas (LNG), the supermajors have supersized appetites. The likes of Royal Dutch Shell, ExxonMobil and BP make discoveries described as “elephants”; their cost overruns alone can run into the tens of billions of dollars; and projects take the best part of a decade to complete. For years, the industry has demanded fixed, long-term contracts from their customers to justify the size of these megaprojects.

The producers also have pretty big problems. They are in the midst of a vast expansion in Australia and elsewhere just as the shale revolution and the start of American LNG exports has brought an unexpected burst of gas onto markets, clobbering prices for the foreseeable future and forcing producers into concessions. Demand in rich countries such as Japan and much of western Europe appears to be in long-term decline.

At least one big customer, China, is making life easier….Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

New rail routes between China and Europe will change trade patterns

ASTANA in Kazakhstan is one of the world’s most remote capitals, surrounded by thousands of kilometres of empty steppe. This summer Astana attempted to launch itself onto the global stage by hosting the World Expo, which closed on September 10th and underwhelmed many attendees. But there are other ways to have an impact. On the city’s north side, away from the Expo’s exhibits, a series of diesel trains, each pulling dozens of containers, roll through the old railway station. Most are heading from China to Europe. Last year over 500,000 tonnes of freight went by train between the two, up from next to nothing before 2013. Airlines and shipping firms are watching things closely.

The trains rumbling through Astana result from a Chinese initiative, in tandem with countries like Kazakhstan, to build a “New Silk Road” through Central Asia. The earlier overland routes were once the conduits for most trade between Europe and China and India; they faded into irrelevance…Continue reading

Read more 0 Comments
ApprovedBusinessBusiness and finance

A legal vulnerability at the heart of China’s big internet firms

COMPANIES’ legal structures are usually mind-numbing fare. But occasionally it is worth pinching yourself and paying attention. Take “variable interest entities” (VIEs), a kind of corporate architecture used mainly by China’s tech firms, including two superstars, Alibaba and Tencent. They go largely unremarked, but VIEs have become incredibly important. Investors outside China have about $1trn invested in firms that use them.

Few legal experts think that VIEs are about to collapse, but few expect them to endure, either. One sizeable investor admits loving Chinese tech firms’ businesses while feeling queasy about their legal structures. Like scientists appalled by their monstrous creations, even the lawyers who designed VIEs worry. They are “China’s version of too-big-to-fail”, says one. As well as being spooky, VIEs are another instance of how China’s weak property rights hurt its citizens.

What are VIEs? Over 100 companies use them. Since the 1990s private firms have sought to break free of China’s isolated legal and financial systems. Many have done so by forming holding companies in tax havens and listing their shares in New York or Hong Kong. The problem is that they are then usually categorised as “foreign firms” under Chinese rules. That in turn prohibits them from owning assets in some politically sensitive sectors, most…Continue reading

Read more 0 Comments