1 How the yen divides Jap generations (The New York Times) As
Japan has ceded dominance in industry after industry that once lifted this
nation to economic greatness, there has been plenty of blame to go around. A
nuclear disaster that raised energy costs. A lack of entrepreneurship. China’s
relatively cheap work force. Increasingly, however, business leaders point to a
problem that is at least partly within the government’s power to control: a
high yen that has made Japanese products, from televisions to memory chips,
prohibitively expensive abroad.
In an echo of a debate that raged in the United States in
the 1980s, the government faces growing criticism for doing almost nothing to
rein in the yen, despite alarm that the record-high currency is dealing
crippling blows to the country’s once all-important export machine. One big
reason, analysts and some politicians say, is simple, if generally left unsaid:
A high yen benefits Japan’s rapidly expanding elderly population, even if it
hurts other parts of the country.
By speeding the flood of cheaper imported products into
Japan, the strong yen is contributing to deflation, a broader drop in the prices
of goods and services that has helped retirees stretch their pensions and
savings. The resulting inaction on the yen, according to a growing number of
economists and politicians, reflects a new political reality, with already
indecisive leaders loath to upset retirees from the baby boom who make up more
than a quarter of the population and tend to vote in high numbers. “Japan’s
tolerance of the strong yen and deflation is rooted in a clash of generations,”
said Yutaka Harada, a professor of political science and economics at Waseda
University in Tokyo. “And for now, the seniors are winning.”
2 US jobless up in 90% cities in June (San Francisco
Chronicle) Unemployment rates rose in nearly 90% of large US cities in June,
partly because many young people graduated from school with no firm job
prospects. Many of the cities with significant increases in their rates have
large universities, where students have begun searching for jobs in recent
months. Unlike the national figures, the metro unemployment data isn't
seasonally adjusted for such changes.
The Labor Department says unemployment rates rose in 332
large metro areas. They fell in 29 and were unchanged in 11. That's worse than
in May, when rates rose in 255 cities. Nationwide, the unemployment rate was
8.2% in June for the second straight month. Employers added only 80,000 jobs,
the third straight month of weak gains.
3 Should we forget growth? (Stephanie Flanders on BBC) Never
mind the size, focus on the quality. That's always good advice when picking
fruit. Some say it should now be our economic mantra as well. They say that our
fixation with GDP and growth is threatening an environmental disaster. Or, as
Lord Skidelsky argues in a book he's just written with his son, Edward, it's
distracting us from what really matters, which is leading a good life.
You might not agree with everything Lord Skidelsky says. But
he's not the only one who sees the global financial crisis as an opportunity to
take stock of the way we've organised our society - and maybe re-think our
slavish pursuit of economic growth. (Especially since we don't seem to be doing
very well at getting it.) In fact, some think BBC should be more impartial on
the subject - and not treat every rise in GDP as such good news.
4 Sharp to chop 5,000 jobs (Johannesburg Times) Japan's
Sharp will slash 5,000 jobs by March, reports say, its first cuts since 1950 as
it is hit by a prolonged slump in its key television and liquid crystal display
sectors. The firm, which employs 57,000 people globally, has seen operations
suffer amid worries over high energy prices, a high yen, slow domestic demand
and global economic uncertainty. It had originally considered cutting about
3,000 domestic jobs, but decided to expand the scope to include worldwide
operations to accelerate a management restructuring. Meanwhile, Sharp
executives will take pay cuts of 20-50%, compared with originally planned 10-30%.
5 India beauty industry lures investors (The Wall Street
Journal) Even as India’s economy loses steam, the country’s nascent beauty and
wellness industry is growing rapidly, and catching the interest of
private-equity and venture-capital investors. These investors are looking to
fund the expansion plans of India’s salons, spas and other companies that
provide skin and hair treatment and slimming and fitness services. “You are not
going to stop manicure and pedicure because of an economic slowdown,” says
Kanwaljit Singh, partner at Helion Venture Partners, which manages around $600
million in assets.
In May, Helion and Everstone Capital Advisors Pvt., invested $16 million in R&R Salons Pvt., a
Bangalore-based firm that runs the YLG brand of salons. R&R plans to use
the fresh capital to set up salons across India. Groom India Salon & Spa
Pvt., based in the southern India city of Chennai, says it is talking to
private-equity investors to raise around $14 million in a bid to turn itself
into a national chain.
One reason why beauty and wellness companies are growing so
fast is their small size. A decade ago, spending money on beautification was
limited to the relatively affluent, but the industry has broadened its reach as
incomes have grown and people have become more conscious of their looks.
6 When badminton goes bad (The Wall Street Journal) Four
women's doubles teams, two from South Korea and one each from China and
Indonesia, were disqualified from the event after the sport's ruling body
determined that they'd tried to throw their matches to secure more-favorable
draws in later rounds. After a disciplinary hearing, Badminton's federation
said the four teams had infringed on its code of conduct by "not using
one's best efforts to win a match" and "conducting oneself in a
manner that is clearly abusive or detrimental to the sport."
By eliminating the sport's reigning world champions—China's
Wang Xiaoli and Yu Yang—just before the quarterfinals, the federation very
likely changed the medal results for the event—a move that could end up costing
China in the hotly contested overall race for the most gold medals. After the
ruling, the Indonesian team appealed. The Indonesians then withdrew their
appeal while the federation dismissed the Korean case. The Chinese didn't
appeal.
Yu said on the Weibo microblogging service that Tuesday's
match was her last. "Bye, my beloved badminton," she wrote. Recent
history is littered with examples of alleged losing to win. One of the most
infamous was a 1982 World Cup match between West Germany and Austria—branded
the Shame of Gijón, for the Spanish city where it was played. After West
Germany went up 1-0 early in the match, the teams listlessly booted the ball
around the field for nearly 80 minutes, knowing that outcome would allow them
both to advance in the tournament. The World Cup later revised its tournament
so that the final matches in group play are staged at the same time.
No comments:
Post a Comment