Wednesday, June 3, 2015

US Fed says economy is back to growth; 70% of world will have smartphones by 2020; The clever politics of Sepp Blatter's 'resignation'

1 US Fed says economy is back to growth (BBC) he US Federal Reserve said the economy grew between April and May in its latest assessment of the economy, rebounding from a contraction in the first quarter. In the so-called Beige book, it said surveys from across the country suggested "overall economic activity expanded" from early April to late May.

Growth in the US unexpectedly shrank in the first three months of the year. The contraction was mainly attributed to a particularly harsh winter and most economists were expecting a pick-up. However, the bad weather, combined with the strong dollar, prompted the Organisation for Economic Co-operation and Development (OECD) think-tank to cut its growth forecast for the US this week.

It now expects the US economy to grow just by 2% this year and 2.8% next year - down from its November forecast of 3.1% and 3% respectively. However it wasvpointed out that the energy industry had been hurt by the drop in the price of oil, causing companies to cut back on staff and drilling activities. The Beige book is a summary of comments received from businesses across the US. The data helps inform Fed officials about when and if to raise interest rates.


2 World’s 70% will have smartphone by 2020 (Daily Telegraph/Johannesburg Times) Around 70% of the global population will be using a smartphone by the year 2020, with 90% of those over the age of six owning a cellphone.

Smartphone subscriptions are set to more than double to 6.1billion. About 80% of new subscriptions will come from Asia Pacific, the Middle East and Africa because of greater affordability across developing markets, according to the Ericsson Mobility Report. At present global smartphone subscriptions stand at 2.6 billion, compared with 7.1billion mobile accounts last year. This, the report predicts, will grow to 9.2billion in five years.

At present about 4.9billion people in the world own 7.2billion mobile subscriptions, thanks to owning multiple devices and inactive accounts. The forecast predicted there will be 26billion connected devices by 2020 across the globe, with video viewing to account for 60% of global mobile data traffic by this time.


3 The clever politics of Sepp Blatter’s ‘resignation’ (Mark Doidge in Straits Times) Sepp Blatter has defied all expectations and announced his intention to step aside from the presidency of Fifa after 17 years at the helm. It seems the long arm of American law has finally reached close enough to Fifa's heart to force its leader to step down.

Fifa has been part of Blatter's life for 40 years. He was headhunted by Horst Dassler, the chief executive officer of German sportswear firm adidas, and learnt his trade at adidas' headquarters in Landersheim. He then became a technical director in 1975 before assuming the role of secretary-general in 1981. He finally ousted his mentor, Joao Havelange, in 1998, to become president.

Significantly, despite every news organisation stating that he had resigned, he did not use the word during his brief press conference. The masterful politician remained in control until the end, and left us not entirely certain if it is indeed the end. Blatter's announcement stated: "I have decided to lay down my mandate at an extraordinary elective Congress. I will continue to exercise my functions as Fifa President until that election."

The master tactician may have outmanoeuvred everyone. Within his brief announcement there are statements that should cause concern. He suggested that the executive committee must be reduced in size and its members "should be elected through the Fifa Congress". This looks like a clever ploy to remove the additional members that are there for historical reasons. Chief among these will be the anachronistic position for the home countries such as England, held due to their position as the inventors of the modern game.

Blatter is suggesting term limits for the position of president and executive committee roles. By bringing them in now, he neuters whoever replaces him. Despite saying that he has been blocked in the past, he has been the one in control. And he is not relinquishing it yet.

After successfully defending his presidency only five days ago, would anyone be surprised if he was voted into an honorary role? His predecessor Havelange was elected honorary president despite allegations of corruption. And these positions still attract the highly generous Fifa expenses package. Blatter is a wily old fox. One does not remain atop the Fifa pyramid for so long without knowing how to play politics. Even when the world thinks he has stepped down, it may just be that he has done anything but.

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