1 Brazil economy in recession (BBC) Brazil has
fallen into recession, just a month before the general election, latest figures
show. Economic output, GDP, fell by 0.6% in the three months to June, worse
than analysts had predicted, and revised figures for the first quarter of the
year also showed a fall of 0.2%. A recession is usually defined as two
consecutive quarters of contraction.
The news will be damaging for the government of
President Dilma Rousseff. According to the most recent poll, Ms Rousseff would
lose to a rival candidate, environmentalist Marina Silva, if October's election
went to a second round. The data showed that civil construction, manufacturing
and investment especially suffered during the second quarter.
"This recession shows the exhaustion of a
growth model that has been centred on internal consumption," said Eduardo
Velho, chief economist at investment firm INVX Global in Sao Paulo. "It is
a good picture of what the economy is suffering - a slowdown in industry, a
fall in investment, rising inventories. The recovery from here will be
slight," he continued, saying that deep reforms would be needed whoever
wins the next election.
2 A third of young workers on low pay (Toby Helm in
The Guardian) The proportion of workers aged 21 to 30 who are now classed as
low paid has more than tripled over the past four decades, according to new
research that helps to explain why many young people are locked out of the
housing market.
Analysis to be released next month by the
independent thinktank the Resolution Foundation will show that among this age
group almost three in 10 (29%) are now low paid – equating to almost 1.5
million young workers. In 1975, the proportion earning low pay was less than one
in 10 (8%). Over the same period, however, the proportion of low-paid older
workers – those aged 51 to 60 – has dropped sharply, highlighting a pronounced divide
between the generations.
The report comes amid growing concern that Britain's
economic recovery is not translating into wage growth and higher living
standards for large sections of society. Low pay is defined as earning less
than two-thirds of the hourly median wage – which currently stands at £11.56. A
low-paid person therefore earns less than £7.71 an hour. The fortunes of the
two age groups have diverged sharply since 2002, when the proportion in low pay
was 21% in both groups.
Matthew Whittaker, chief economist at the Resolution
Foundation, said the trend towards a low-wage economy for the young threw up
big policy challenges. "We know that younger workers have been hit hardest
in recent years – this shows that it's part of an even longer-term trend."
The share of young people buying homes fell to one of its lowest levels in June
this year because of a combination of high prices relative to incomes and
shortage of supply.
3 Google’s fleet of package-delivery
drones (San Francisco Chronicle) Google's secretive research laboratory is
trying to build a fleet of drones designed to bypass earthbound traffic so
packages can be delivered to people more quickly. The ambitious program
escalates Google's technological arms race with rival Amazon.com Inc., which
also is experimenting with self-flying vehicles to carry merchandise bought by
customers of its online store.
Amazon is mounting its
own challenges to Google in online video, digital advertising and mobile
computing in a battle that also involves Apple Inc. Google Inc. calls its foray
into drones "Project Wing."
Although Google expects
it to take several more years before its fleet of drones is fully operational,
the company says test flights in Australia delivered a first aid kit, candy bars,
dog treats and water to two farmers after traveling a distance of roughly one
kilometer, or just over a half mile, two weeks ago..
Besides perfecting
their aerial technology, Google and Amazon still need to gain government
approval to fly commercial drones in many countries, including the US. Amazon
last month asked the Federal Aviation Administration for permission to expand
its drone testing. The FAA currently allows hobbyists and model aircraft makers
to fly drones, but commercial use is mostly banned.
Google seems to see its
drones as something more than another step in e-commerce delivery. The aerial
vehicles also could make it easier for people to share certain items, such as a
power drill, that they may only need periodically and carry emergency supplies
to areas damaged by earthquakes, hurricanes and other natural catastrophes,
according to Google's Project Wing pamphlet.
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