Category: Business / Finance

American business leaders break with Donald Trump 0

American business leaders break with Donald Trump

“I’VE never known it to be an embarrassment for a business leader to be associated with an American president,” declares Max Bazerman of Harvard Business School. Donald Trump, in particular, has positioned himself as a businessman-president, whose corporate acumen would unleash a new era for American business. Investors seemed to believe him—his election prompted a giddy “Trump bump” in the stockmarket—and corporate bosses flocked to his side. This week they fled. For many, it seems as much a clear-eyed business calculation as a moral awakening.

Some distanced themselves more quickly than others. The trigger was Mr Trump’s reluctance to condemn neo-Nazis and white supremacists who staged violent protests in Virginia on August 12th. Kenneth Frazier (pictured), chief executive of Merck, a big pharmaceutical firm, was the first to leave Mr Trump’s advisory council on manufacturing. On August 14th Mr Trump denounced racist groups in a scripted statement. But the bosses of Under Armour, a sporting-goods outfit, and Intel, a computer-chip giant, defected, too.

On August 15th Mr Trump appeared once again to equate white supremacists with demonstrators opposing them. As word leaked the next day that chief executives might resign en masse, Mr Trump swiftly tweeted that he was disbanding his manufacturing …read more

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Airlines want tighter control of alcohol sales in British airports

TRYING to stop Britons from boozing can be a forlorn task. Drinking has been woven into the nation’s culture for centuries, from the “loose-tongued” pilgrims of Chaucer to the apprentices who ran amok on London’s streets in the 16th century. According to Susie Dent, a lexicographer, English has 3,000 words for being drunk. Some take that list as a challenge. Whether at football matches or funerals, children’s parties or cheese-rolling, Britons turn almost any occasion into an excuse to get ramsquaddled (thanks, Ms Dent).

A visit to a British airport is a crash course in this culture. Regardless of the time of morning, the bars are full and the English breakfasts come accompanied with pints of Guinness. That is an increasing problem for airlines….

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A firm that shares a name with its founder earns higher profits

A GOOD business name can be pricey. An entrepreneur looking for the perfect one can hire a naming agency to offer ideas, but that can cost tens of thousands of dollars. That may explain why many founders follow the example set by the American president and name their businesses after themselves. A recent article* by academics from the Fuqua School of Business at Duke University in North Carolina suggests that doing so does not just save money—it can also boost profits.

The study looked at small businesses in western Europe. It relied on a sample of almost 2m firms, data for which are contained in a commercial database called Amadeus. The database includes information about owners, managers and financial performance from 2002 to 2012. Firms in the sample tended to be, on average, fairly young, with few shareholders and employees. Checking against the surnames of the largest shareholders, the authors found…

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The problem of contaminated air on planes

AT 30,000 feet the skies may be clear, but the oxygen certainly is not. Anyone who has wheezed his way through a long plane journey will know that cabin air is hardly pristine. Nearly all aircraft draw in air by way of the plane’s engine compressor. It is common for a small amount of oil to leak over the engine, which then contaminates the stuff that passengers and crew members breathe. Most of the 3.5bn passengers who traveled by plane in 2015 were probably exposed to at least a low level of contamination. But frequent exposure can come with debilitating symptoms, including memory impairment, dizziness and vision problems.

A recent study from the University of Stirling and the University of Ulster reveals the scale of the problem. Researchers examined hundreds of aeroplane crew members and discovered a direct link between air contamination and respiratory, cognitive and even neurological health…

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How do you solve a problem like Korea? Investors are unsure

EUROPEAN markets have started the day with losses of 1% or so, following a 2% decline in Hong Kong’s Hang Seng index and the 1% loss in the S&P 500 index on Thursday. The Vix, a much used measure of market fear, jumped to 16, its highest level since the Presidential election.

These are significant moves by the standards of recent months but, to anyone who lived through 2008 (or 1987) they are hardly signs of outright panic. Gold is at $1,288 an ounce, up “5 or so over the week. The Japanese stockmarket was barely changed today, and Japan is right in the firing line of North Korea’s missiles. South Korea would suffer terribly in any war but the Seoul market was down just 1.7% today, and 3.2% on the week.

Clearly, the markets are more worried than they were on August 9th, when President Trump warned of “fire and fury” against Kim Jong-Un’s regime. Investoirs didn’t take too seriously the statement from the President, who is known for his intemperate (and often factually inaccurate) tweets. But the…

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Where might the next crisis come from?

TEN years ago, BNP Paribas, a French bank, temporarily suspended dealings in three funds, citing “the complete evaporation of liquidity in certain market segments of the US securitisation market”. Many people treat this as the start of the credit crunch but once can trace it back to the need for Bear Stearns to rescue hedge funds that invested in mortgage-backed securities in June, or the signs of home loan defaults and failing mortgage lenders that emerged in late 2006. The subsequent tightening of credit and loss of confidence in the banking system eventually led to the collapse of Lehman Brothers, when the crisis reached its height in the autumn of 2008.

The inevitable question on the occasion of such…

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Why an eight-hour bus ride from Los Angeles to San Francisco might beat a flight

THERE is a new way to travel between Los Angeles and San Francisco. At $230 for a round trip, it may not be cheaper than flying, but at least it is slower.

Cabin is an interesting experiment; an attempt to compete with airlines by promising a better night’s sleep. Flying between the two cities may take less than an hour and a half. But getting to the airport, shuffling through the security queue, waiting at the gate, picking up your bag upon arrival, and getting from the airport to your actual destination can nearly quadruple the total travel time. That means a trip can eat up most of the day. Or if you want to travel at night, you have about an hour to sleep, between several hours of hassle and tedium.

Rather than go through that rigmarole, Cabin is betting that some passengers will instead choose an overnight bus, on which they crawl into sleeping pods, stacked like bunk beds but ensconced behind curtains and soundproof walls, and wake up eight hours later at their destination. On offer: water, coffee, melatonin and a…

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A Google employee inflames a debate about sexism and free speech

“DON’T be evil” is Google’s corporate motto. If only it were so simple. The online-search giant is in a tricky spot after an employee published a long, anonymous memo online about why women are under-represented in the technology industry. The main reason may not be sexism, asserted James Damore, the young Harvard-educated software engineer later revealed to be the memo’s author, but biological factors. Women are more interested in people and emotions, he wrote, and tend towards “neuroticism”, meaning they are more anxious than men and worse at handling high-stress jobs.

The ten-page memo also lamented liberal Silicon Valley’s new willingness to “discriminate to create equal representation” and its reluctance to hear opinions that clash with the mainstream view on diversity. On August 7th Mr Damore told Bloomberg, a news service, that he had been fired by Google. Sundar Pichai, the company’s boss, said that portions of the memo violated its code of conduct…

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Dame Helen Alexander, former chief executive of The Economist Group, died on August 5th

ROLE models for women in business are still too rare, not least in Britain. Last November an independent review backed by the government urged FTSE 100 companies to raise the share of women on their boards from 27% to 33% by 2020. Sadly, that push this week lost one of its leading champions, Helen Alexander, the deputy chair of the review.

Business had no better ambassador. She was self-effacing but a world-class networker—a winning combination that helps to explain, along with her intelligence and charm, why all sorts of firms flocked to have her on their board (from Northern Foods to Centrica, Rolls-Royce and the British arm of Huawei), to advise them (Bain Capital) or to chair them (the Port of London Authority and, more recently, UBM, an events business). In 2009 she became the first woman to be president of the Confederation of British Industry, the country’s main employers’ group.

But Helen had built her reputation in the media industry. From 1997 to…

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