Monday, August 14, 2017
Japan economy picks up pace; Indonesia oil and gas sector in decline; US White nationalists plan rallies
1 Japan economy picks up pace (Richard Partington in The Guardian) Japan’s economy expanded at the fastest pace for more than two years in the three months to June, with domestic spending accelerating as the country prepares for the 2020 Toyko Olympics and low levels of unemployment encouraged businesses to invest.
The world’s third largest economy recorded an expansion in second-quarter gross domestic product at an annualised rate of 4%, according to figures from the cabinet office, making the country the fastest-growing of the G7 wealthy nations.
The data comes as a shot in the arm amid rising regional tensions sparked by the US president, Donald Trump, and North Korea’s Kim Jong-un, a war of words that rattled global stock markets last week and could threaten Japan, its economy and the rest of the world.
Japan is shrugging off decades of sluggish growth that it has been attempting to counter with a massive money printing programme championed by the prime minister, Shinzo Abe, to stimulate bank lending, investment from companies and buying among consumers.
The factors that propelled the most recent growth in GDP were led by rising domestic activity, as consumer spending accelerated significantly, while low unemployment helped wages to grow faster than in the previous quarter. On a less positive note, net exports declined by 0.3%.
The overall result was much stronger than expected by the market, as economists had predicted the country would grow by 2.5% on an annualised basis in the second quarter. Japan grew at 1% in the quarter alone, against expectations for a 0.6% expansion.
2 Indonesia oil and gas sector in decline (Straits Times) Once a cornerstone of the economy, Indonesia's oil and gas sector is in a slump, even as the country's appetite for energy soars. Hit by a drop in global prices, changing regulations and competition from neighbors that are proving more attractive to international energy companies, Southeast Asia's biggest economy is facing a decline in oil revenue and steadily rising fuel imports.
With an economy growing at a 5 per cent clip and the government embarking on a vast infrastructure roll out, the oil and gas industry is sounding alarm bells over the decline of a sector that five years ago accounted for almost 6 per cent of Indonesia's gross domestic product and last year contributed only 3 per cent.
Investment for exploration in Indonesia shrank to $100 million in 2016 from $1.3 billion in 2012, according to government data. A lack of drilling success and commercialization issues have weakened Indonesia's outlook and spending is likely to drop further, said Johan Utama, a Southeast Asia oil analyst.
Two decades ago, Indonesia pumped about 1.5 million barrels of oil a day and the country, in 1997, was host to the meeting of oil ministers from the Organization of Petroleum Exporting Countries.
Now Indonesia has applied to rejoin Opec after being out of the group for most of the past eight years. Oil traders and executives complain of a dearth of exploration and "stagnant" investment in the country. Part of that is caused by the drop in oil prices since the heady days from 2011 to mid 2014, when crude averaged more than $100 a barrel. Now it's less than half that level, affecting investment decisions worldwide.
A PwC survey of more than 50 companies involved in the Indonesian oil and gas industry identified a "stagnant" investment environment and concerns about government commitment to the sanctity of contracts.
3 US White nationalists plan rallies (Peter Fimrite & Joe Garofoli in San Francisco Chronicle) With violence sparked by neo-Nazis in Virginia raising tensions across the US, white nationalists are planning rallies in San Francisco and Berkeley later this month.
A permit has been issued for a “Patriot Prayer” group to gather Aug. 26 at Crissy Field in San Francisco, said Sonja Hanson, spokeswoman for the Golden Gate National Recreation Area. The group is ostensibly religious, but its purpose is really “an attempt to provoke black-clad ideologues on the left into acts of violence,” according to the Southern Poverty Law Center, which tracks hate groups.
Berkeley Mayor Jesse Arreguin said another group, No Marxism in America, is planning an event on Aug. 27 at Martin Luther King Jr. Civic Center Park in Berkeley. The park was the site of two other gatherings of far-right protesters this year, including one on April 15 marked by violent clashes with counter-protesters.
Sunday, August 6, 2017
Amazon shadow looms over retailers; Darjeeling tea faces political turmoil; Niekerk aims to be next Bolt
1 Amazon shadow looms over retailers (Khaleej Times) As old and new Amazon.com competitors gear up to report earnings, investors are eager to know how they plan to withstand the growth of the No.1 online retailer.
So far this quarter, Amazon has been brought up in some 130 earnings calls from S&P 1500 components according to a Reuters analysis. More than 30 firms reporting earnings in the following weeks mentioned Amazon during their most recent earnings call or were directly asked about threats or opportunities regarding Amazon's growth.
"Any retailer, whether it's an online retailer or has online presence, or just brick-and-mortar, that tells you they're not concerned about Amazon, they're either in denial or lying," said Steven Osinski, marketing lecturer at the Fowler College of Business at San Diego State University.
Beyond retailers like Wal-Mart and Target, and following Amazon's planned acquisition of Whole Foods Market announced mid June, expect Amazon to pop up on earnings calls from food producers, packagers and retailers.
In a sign of Amazon's widening clout, industry bellwethers like McDonald's, 3M and Johnson & Johnson in their latest earnings calls were asked for the first time about effects of Amazon on their businesses.
2 Darjeeling tea faces political turmoil (Soutik Biswas on BBC) If you are a tea connoisseur, here's some bad news: your morning cuppa of steaming Darjeeling tea may soon be difficult to get.
Famously called the "champagne of teas", it is grown in 87 gardens in the foothills of the Himalayas in Darjeeling in West Bengal state. Some of the bushes are as old as 150 years and were introduced to the region by a Scottish surgeon. The tea tots up nearly $80m in annual sales.
Darjeeling tea is also one of the world's more expensive - some of it has fetched prices of up to $850 per kg. The tea is also India's first Protected Geographical Indication (PGI) product. Since June, Darjeeling has been hit by violent protests and prolonged strikes in support of a campaign by a local party demanding a separate state for the area's majority Nepali-speaking Gorkha community.
The upshot: some 100,000 workers - permanent and temporary - working in the gardens have halted work. Production has been severely hit. Only a third of last year's crop of 8.32 million kg had been harvested when work stopped in June. If the trouble continues, garden owners say they are staring at losses amounting to nearly $40m.
3 Niekerk aims to be next Bolt (Johannesburg Times) Wayde van Niekerk, the athlete identified by Usain Bolt as the next trailblazer for global athletics, is adamant that he is not afraid to take over the responsibility of being the face of his sport.
The day after Bolt had lavished him with praise, the South African Van Niekerk said that he was not intimidated by the expectations being heaped upon him before the World Athletics Championships.
It is perfectly possible that the 25-year-old could upstage Bolt in the Jamaican's final championship by pulling off a 200 metres/400 metres double that has not been achieved since Michael Johnson in Gothenburg in 1995.
Van Niekerk is also being tipped to threaten the 400m world record of 43.03 seconds that he took from Johnson at the Olympic Games last year. "It's one thing someone saying I can be the next big thing," Van Niekerk said of Bolt's words of praise. "But it's another thing working towards that greatness.
"I'm not intimidated (by the responsibility), you can't be. This is track and field, this is a dream I need to fight for -- and I need to fight for it as hard as I can." Van Niekerk joked that he was expecting an invoice from Bolt for all the advice and encouragement the peerless sprinter had given him.
Sunday, July 30, 2017
1 US growth accelerates (BBC) The US economy gathered speed in the second quarter of the year, growing at an annualised pace of 2.6%. The pick-up was helped by consumer spending in the quarter expanding at a pace of 2.8%, and businesses stepping up spending on equipment.
President Trump has pledged to pursue policies to boost the US economy, including cutting corporate and individual taxes, but has faced a Washington impasse. He has set an ambitious 3% growth target for 2017.
Consumer spending, which makes up more than two-thirds of the US economy, accelerated from the 1.9% growth figure from the first quarter. The resurgence in consumer spending accounted for most of the upturn in economic growth in the second quarter.
Stuart Hoffman, PNC senior economic adviser, said that "real consumer spending once again did the heavy lifting" in terms of economic growth. But with wage growth remaining sluggish there are concerns spending may slow in the next quarter.
2 Tesla delivers Model 3 (Khaleej Times) Tesla began delivering on a dream to make an electric car for the masses, rolling out the first of its keenly-awaited "Model 3" cars, aiming to disrupt a world accustomed to automobiles powered by pollution-spewing fossil fuel.
An initial batch of the 'Model 3' cars that rolled out of the Tesla plant in Fremont, California were given to customers, most of whom were employees of the company. Tesla founder and chief Elon Musk proclaimed it a great day for the company, saying the goal was to make a terrific electric car "that everyone can buy."
Production of the electric car aimed at the broader market - with a starting price of $35,000 - will ramp up quickly, according to Musk, with 100 in August and 1,500 or more in September. Tesla aims to produce 5,000 units of the Model 3 a week this year, and 10,000 units a week in 2018.
Tesla already sells "S" and "X" model electric cars, but with a starting price of $80,000 they have been seen as wheels for the wealthy. The Model 3 silhouette resembles that of the Model S, but the new electric ride is smaller with a simpler design.
The vehicle's battery was designed to keep it going for "at least 215 miles" (345 kilometers) before needing to be recharged, according to Tesla. More than a half-million customers have placed deposits to get on the waiting list for the Model 3, and anyone wanting one will have to wait at least until 2018.
3 Jack Ma’s promise of a million jobs (Benjamin Haas in The Guardian/The Observer) Chinese billionaire Jack Ma has once again set his sights on the US. In a high-profile meeting with Donald Trump before the inauguration, Ma promised to create 1m jobs in the US, and has wasted no time ingratiating himself into Trump’s inner circle.
He has dined alone with Ivanka Trump, and last week commerce secretary Wilbur Ross sat next to Ma at a meeting of US and Chinese businessmen. Those political connections may benefit him as he seeks to acquire American companies in a country that is increasingly wary of big Chinese investment.
“As a merchant, it’s about knowing your customer, and Trump doesn’t care about anything that’s not huge,” says Duncan Clark, a longtime friend and author of Alibaba: The House That Jack Ma Built. “He figured a million is a good number to get Trump’s attention. “Realistically, without a major acquisition, I fail to see how that’s possible,” he adds. “In the US context, it’s a very big number.”
For years, Ma has been pushing his vision of US small businesses selling to Chinese shoppers through his online marketplaces. He is often called the “Jeff Bezos of China”, and there are clear similarities. Both built e-commerce empires and, like Bezos and the Washington Post, Ma even owns an old established newspaper, in his case Hong Kong’s South China Morning Post.
But there’s a key difference: while Bezos’s Amazon sells products to consumers, maintaining massive warehouses and operating a sophisticated logistics network, Alibaba’s sites are simply a medium, connecting consumers with merchants who ship through independent couriers. This has led experts to say Alibaba’s business model is closer to Google’s than Amazon’s.
“It’s an incredibly unlikely target for job creation in any plausible time frame,” said Christopher Balding, a professor of business and economics at Peking University’s HSBC business school. “If we’re talking 25 or 40 years, maybe Alibaba could create that many jobs.”
By comparison, WalMart, the largest private employer in the US, employs 1.5 million people. If Ma is able to deliver on his promise of 1m jobs, it would decrease the number of unemployed workers by a staggering 14%.
Friday, July 21, 2017
Cloud earns big profit for Microsoft; Change management as a precise science; Oil declines as supplies surge
1 Cloud earns big profit for Microsoft (khaleej Times) Microsoft reported that its quarterly earnings was lifted on the back of its shift to focusing on computing services hosted in the Internet cloud. The US technology giant said it made a profit of $6.5 billion in the recently-ended quarter as revenue rose to $23.3 billion.
About $7.4 billion of the revenue in the quarter came from "intelligent cloud" offerings that are part of Microsoft shedding its legacy of packaged software and embracing a future in which computing power is hosted online as a service. "Innovation across our cloud platforms drove strong results this quarter," Microsoft chief executive Satya Nadella said in a statement.
Microsoft uses the term "intelligent cloud" to refer to services that let businesses take advantage of computing power online in its data centres, coupled with insights or analysis by artificial intelligence software.
The pioneering software firm had more than 121,000 employees worldwide at the end of March, according to its website. It is seeking to be a first port-of-call for businesses relying on cloud computing, as the industry moves away from packaged software. Microsoft's cloud computing platform will be used outside China for collaboration by members of a self-driving car alliance formed by Chinese Internet search giant Baidu, the companies announced this week.
2 Change management as a precise science (Aisha Sarwari in Dawn) Change management in an ever changing world is perhaps the most important thing a corporation can invest in today. Fast-paced changes in organisational structure and mission, objectives and goals need rapid response from senior management and this is where the doctrine of change management graduates from an art into a precise science.
You can never over-communicate when you ask your organisation to change. Employees are fearful and apprehensive of change. Few executives realise that change communication is less about driving change within an organisation than it is about the models of communication used to convey messages to the target stakeholders. The bottom line is that the old methods no longer work.
What should this communication aim to achieve? First it must counter resistance from the employees and align them to the overall strategic direction of the organisation. This can be achieved by providing counselling to overcome change-related fears or apprehensions.
Secondly, it should inform the stakeholders about the reasons why the change is being effected, the benefits of successful implementation of such change as well as the details of the change (the modalities and logistics of change). The communication must also devise an implementable plan for re-training and re-educating key members of the organisation.
3 Oil declines as supplies surge (Gulf News) Oil declined after tanker-tracker Petro-Logistics SA said Opec’s supply in July will be the highest this year. Futures fell as much as 0.5 per cent in New York, erasing a weekly gain. Supply from Opec members is set to exceed 33 million barrels a day this month, more than 600,000 barrels a day higher than the first-half average, according to Petro-Logistics.
The data could reinforce scepticism about the effectiveness of the Organisation of Petroleum Exporting Countries’ production cuts as officials from the group gather for meetings in St. Petersburg, Russia.
Oil remains in a bear market on concern that growing output in the US, Libya and Nigeria is offsetting other producers’ curbs, meaning stockpiles aren’t shrinking fast enough. The report from Petro-Logistics found that Saudi Arabia, the UAE and Nigeria are behind the extra barrels. The latter is exempt from making cuts as it tries to recover from disruption due to theft, sabotage and attacks by rebels.
Thursday, July 20, 2017
AI could double Singapore growth rate by 2035; Tight budgets trigger lipstick sales; Netflix subscribers cross 100m
1 AI could double Singapore growth rate by 2035 (Straits Times) Artificial intelligence (AI) could nearly double Singapore's annual economic growth rates by 2035, according to research by global professional services firm Accenture.
The research also found that Singapore is at the forefront to integrate innovation and technologies into the wider economy, ahead of the largest economies in the world such as the US, Germany, UK and Japan.
Accenture Research, in collaboration with Frontier Economics, modelled the impact of AI in 33 economies that together generate more than 80 per cent of the world's economic output. The research compared the size of each country's economy in 2035 in a baseline scenario, which shows expected economic growth under current assumptions, and an AI scenario which shows expected growth once the impact of AI has been absorbed into the economy.
AI was found to yield the largest uplift in economic growth for Singapore, potentially increasing its annual growth rate from 3.2 per cent to 5.4 per cent by 2035, translating to an additional $$215 billion in gross value added (GVA). This is ahead of other large economies such as the US, with AI potentially adding $$8.3 trillion in GVA by 2035, increasing its annual growth rate from 2.6 per cent to 4.6 per cent by 2035.
The potential to significantly boost the productivity of labour will be driven by innovative AI technologies that enable people to make more efficient use of their time and do what humans do best - create, imagine and innovate new things, said the report. With the adoption of AI, Singapore would only require 13 years for its economy to double in size, while without AI, it will take the country 22 years, it said.
2 Tight budget triggers lipstick sales (Sarah Butler in The Guardian) With disposable income under pressure, shoppers are holding off on buying big ticket household items like sofas, beds and washing machines. But tough times also encourage shoppers to treat themselves, and history has shown that sales of cheap thrills – from lipstick to takeaway coffee, expensive perfume, skin cream and sparkling wine – can do well in a downturn.
“The backdrop is very uncertain and it was made worse by the tragic events that happened across British cities over the last few months,” said Paula Nickolds, managing director of the John Lewis department stores chain, referring to the terror attacks in London and Manchester.
She said John Lewis’s middle England customers were now feeling “uncertain and worried about what the circumstances will mean for their future financial prosperity” and so are beginning to change their shopping behaviour.
Nickolds said trading in “spontaneous” categories, was holding up robustly. Beauty product sales are up more than 7% on last year and womenswear is up 4.4%. Sales of lipstick rose 31% in the three months to the end of June against the same period last year with Instagram-friendly brightly coloured summer lip shades especially highly sought after.
The link between make-up and economic times is an old one. When an executive at Estée Lauder noted that sales of expensive lipsticks soared in the wake of the 9/11 terror attacks, he dubbed it the Lipstick Index – an alternative economic indicator that sees make-up sales rise in a downturn. In the four years from 1929 to 1933, industrial production in the US halved, but sales of cosmetics rose.
3 Netflix subscribers cross 100m (BBC) Netflix shares surged after the video streaming firm said it had about 104 million subscribers. The US company said the better-than-expected number was a sign that investment in new shows and movies was paying off.
Netflix has produced shows such as 13 Reasons Why, about teen suicide, political drama House of Cards and The Crown. Boss Reed Hastings said it was "the rewards of doing great content". The firm said it added about 5.2 million members during the quarter, mostly from overseas. International members now account for about half of its subscriber total.
Netflix has cultivated those audiences with movies such as Okja, a film made by one of South Korea's top directors about a young girl's quest to recover a giant companion from a multi-national corporation. The growth helped Netflix to report a 32% rise in second quarter revenues to $2.8bn, and it expects revenues to reach nearly $3bn in the third quarter.
Profits for the three months to June were $65.6m, up about 60% compared with the same period last year. Creating new content was critical to competing against other online rivals such as Amazon and YouTube, as well as broadcast television networks, Netflix said.
Monday, July 17, 2017
Robot advisers to rock investment world; Govts must invest in 4th industrial revolution; Federer's 8th Wimbledon crown
1 Robot advisers to rock investment world (Goh Eng Yeow in Straits Times) Robo advisers may prove the biggest game changer in the world of investing, playing a key role in shaping people's financial future.
Robo advisers (robos for short) offer a cheap, automatic version of the services provided by an expensive financial adviser to pick the stocks and bonds you invest your savings in. They are able to do so by using a computer which can perform a much more sophisticated job than its human equivalent - at the touch of a button.
And if they become a part of our lives, we will find that rather than try to figure out by ourselves which stocks to buy or sell, we can use robos to get a diversified exposure to thousands of global stocks and bonds - and if all goes well, end up financially better as well.
So far, robos are largely confined to much larger markets such as the USs where start-ups are beginning to assert themselves - disrupting the space now occupied by the traditional fund management industry.
In a recent article, Business Insider observed that the global assets managed by robos reached $200 billion last year and may hit as much as $600 billion this year. The journal also estimated that if this pace of growth continues unabated, robos will grow their assets to a whopping $8.1 trillion by 2020.
2 Govts must invest in 4th industrial revolution (Larry Elliott in The Guardian) The first industrial revolution was about water and steam. The second was about electricity and mass production. The third harnessed electronics and information technology to automate production. Now it is the turn of artificial intelligence, nanotechnology, biotechnology, materials science, 3D printing and quantum computing to transform the global economy.
“The speed of current breakthroughs has no historical precedent”, the WEF said. “When compared with previous industrial revolutions, the fourth is evolving at an exponential rather than a linear pace.”
But if this really is the dawning of a new age, it seems somebody forgot to tell the people with the power to turn ideas into products. The multinational companies that bankroll the WEF’s annual meeting in Davos are awash with cash. Profits are strong. The return on capital is the best it has been for the best part of two decades. Yet investment is weak. Companies would rather save their cash or hand it back to shareholders than put it to work.
One possible explanation for this corporate caution is that businesses think bad times are just around the corner. If innovation is going on apace (which it is) and companies have cash in the bank (which they do), one solution is simply to wait for the moment when entrepreneurs rediscover what Keynes called their animal spirits.
Another would be for governments to say enough is enough. If, despite the lowest ever borrowing costs and repeated cuts in corporate taxation, the private sector won’t invest in the fourth industrial
revolution, the public sector will.
3 Federer’s 8th Wimbledon (Martyn Herman in Johannesburg Times) Ruthless Roger Federer thrashed suffering Croat Marin Cilic 6-3 6-1 6-4 to become the first man to win eight Wimbledon singles crowns on Sunday, five years after landing his seventh.
The Swiss maestro, appearing in his 11th Wimbledon final, was challenged early on but once he broke a nervous Cilic in the fifth game of the opening set the match became a no-contest. Not that Federer was concerned as, 23 days before his 36th birthday, the father of four became the oldest men's singles champion at Wimbledon in the professional era -- doing so without dropping a set throughout a glorious fortnight.
For Cilic, his first final on Centre Court became a nightmare broadcast to hundreds of millions around the globe. After a reasonably solid start he became discombobulated and after falling 3-0 behind in the second set he slumped on his courtside chair and could be seen sobbing as a physio and tournament referee attended him.
For a moment it looked as though the final might end in a retirement for the first time since 1911. Given sympathetic cheers by the Federer-favouring 15,000 crowd, the 28-year-old managed to regain his composure but there was no chance of Federer letting up as he accelerated towards a record-extending 19th grand slam title.
Sunday, July 9, 2017
1 Iraq claims Mosul victory (Straits Times) The loss of its two largest cities will not spell a final defeat for the Islamic State in Iraq and Syria - also known as ISIS and Daesh - according to analysts and US and Middle Eastern officials.
The group has already shifted back to its roots as an insurgent force, but one that now has an international reach and an ideology that continues to motivate attackers around the world. Iraqi Prime Minister Haider al-Abadi has claimed victory over ISIS in Mosul after nearly nine months of fighting. A coalition force is also fighting to drive ISIS out of its Syrian stronghold of Raqqa.
"These are obviously major blows to ISIS because its state-building project is over, there is no more caliphate, and that will diminish support and recruits," said senior fellow Hassan Hassan at the Tahrir Institute for Middle East Policy in Washington who has co-authored a book on the terror group.
"But ISIS today is an international organisation. Its leadership and its ability to grow back are still there." ISIS has overshadowed its militant precursors like Al-Qaeda by not just holding territory, but also running cities and their hinterlands for an extended period, winning the group credibility in the militant world and allowing it to build a complex organisation.
So even while its physical hold slips, its surviving cadres - middle managers, weapons technicians, propagandists and other operatives - will invest that experience in the group's future operations. And even though its hold on crucial urban centres is being shaken, ISIS is in no way homeless yet. In Iraq, the group still controls Tal Afar, Hawija, other towns and much of Anbar province.
2 Rental bargains in Dubai (Manoj Nair in Gulf News) If their current landlords are not negotiating, Dubai’s tenants are better off scouting around among the new homes being delivered in the city for the right deals.
Market sources confirm that while most landlords with older properties seem unwilling to drop rents, those with new properties are more willing to give in to market and tenant sentiments. Many of them would have existing mortgage or instalment pay-offs to consider, and they would rather have a confirmed tenant signed up now than leave the property vacant for weeks or months.
The second-half of the year should see the great tenant churn — where they ditch their current premises and move to new locations — pick up further. It is then up to the tenants to search for — and negotiate — terms that are more favourable to them.
“Many existing tenants have taken this opportunity to renegotiate lease terms”, said John Stevens, Managing Director of Asteco. “This has resulted in an increased churn of tenants. “As with the sales market, there has been an increase in the number and range of incentives available,” the Asteco report says.
“Landlords are increasingly offering enticements such as furnishings [without increment], rentals inclusive of Dewa bills, or rent-free periods of up to two months.” Those rent-free periods can be a big help with residents keen to keep the cost of shifting as low as possible.
3 When one job doesn’t pay the bills (Angelique Arde in Johannesburg Times) Self-employment may be on the decline, but more employed people are setting up sideline businesses to supplement their income, the latest Old Mutual Savings & Investment Monitor shows.
The monitor is a survey of urbanworking South Africans, examining their levels of savings and investment as well as their attitudes to finances. This year's monitor shows that self-employment has decreased from 12% to 8%.
Priya Naicker, advice manager for Old Mutual Personal Finance, said this was largely due to limited support for entrepreneurs and uncertainty in a tough economic environment.
But "while those who run their own businesses are in the minority, this doesn't mean to say that there's no appetite for it", said Lynette Nicholson, research manager at Old Mutual. "On the contrary, 27% of those who are not self-employed - in other words, people with jobs - say they think about starting their own business all the time or a lot of the time."
Respondents to the survey said the main barrier to starting their own business was lack of funding, followed by lack of confidence, and uncertainty about the type of business they would like to own. Fear of losing a steady income was holding 14% back.
An additional survey among city dwellers found that 37% have a sideline business or job. Old Mutual calls them "slashers" - referring to the "slash" between their job titles. For example, beautician/baker. This was a global phenomenon, Nicholson said. But in South Africa, it seems to be a trend among people in the middle- to upper-income bands.