Untitled - The Leaders Magazine

Transcription

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The Leaders - Contents
Contents
Mrs Rinehart’s & Garry Korte’s addresses Sydney Mining Club “Mighty Roy Hill Project”
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Olicell Group (M) Sdn Bhd8
France’s Lagarde officially named for second term to lead IMF
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Retail research firm forecasts limp sales for 2016, says weak ringgit, GST closing wallets
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Paying with your face and car is the new paying with your phone
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5 Amazing things you’ll be able to do with 5G
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McDonald’s Happy Meal box folds into a VR headset for kids
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US election 2016: How does it all work?18
World Economic Outlook (WEO) Update21
Oil Prices: What’s Behind the Drop? Simple Economic
28
Fifa corruption crisis: Key questions answered31
Why The Best Investment In 2016 Might Be Global Real Estate
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Essential Career Advice For The Freelance Economy
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Forbes’ billionaire’s list: The world’s richest people 2016
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The rise of Africa’s super-rich40
Apple announces four-inch iPhone SE and smaller iPad Pro
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10 million Indians use his app45
Malaysia’s total trade up in January 201647
Oscar 2016: Fashion review by Malaysia’s fashion fraternity
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Boom: A plane faster than Concorde with fares a quarter of the price?
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The Leaders - Mrs Rinehart’s & Garry Korte’s addresses Sydney Mining Club “Mighty Roy Hill Project”
Mrs Rinehart’s & Garry Korte’s addresses
Sydney Mining Club “Mighty Roy Hill Project”
Good evening everyone. Garry Korte and I are delighted to be here with you
I hope each person who contributed to Roy Hill, will always be proud that they
for the Sydney Mining Clubs Christmas dinner, and pleased to be able to
built this mega project, a development that will soon be the largest single iron
present the Roy Hill project described in the Mining Club invitation as “The
ore mine in Australia. And a project achieving several important firsts.
launch of Big Roy on the East Coast”.
Perhaps before I expand some more on Roy Hill and the industry I should
What an exciting time it is for all those who have worked so hard over many
share a little of the story of my time as the Chairman of our Australian private
years to develop Roy Hill to the point of where it is today, with the first ship
company, Hancock Prospecting, which started as a West Australian pastoral
currently being loaded in preparation for its departure for Asia!
and exploration company.
I was up at the mine site last weekend together with my executive team
Despite what too many in the media inaccurately imply, Hancock Prospecting
and daughter Ginia to witness the first low phosphorous fines iron ore being
hasn’t always been the successful multi-billion dollar company it is today.
loaded onto the train and then being there to see the train arriving in Port
Hedland on Sunday November 22nd, National Mining and Related Industries
The reality was we had many, many tough years. When I took the reins most
Day.
of the assets had already been sold, what was left was either mortgaged to
the hilt, or under legal threat or claim, and with liabilities we weren’t able to
It was a very happy, welcome and exciting sound to hear the train horn as
pay off for almost a decade, limiting our ability for exploration and investment
it came past us to some rapturous applause and celebratory shouts, albeit
and growth.
in temperatures somewhat higher than 40 degrees! As I speak the Anangel
Explorer is being loaded with this very ore at Port Hedland.
We started from humble beginnings. In the early Roy Hill years with little
money for exploration, we had one old caravan on site which then expanded
Well, despite the naysayers, and there’s many of those in our media! My staff
to three – including one for the site office. The geologists and other technical
and I did this mega project, thank you to each and every one – approximately
people mainly slept under the stars in their sleeping bags.
50, 000 people have been involved in making this Australian mega project
In 1992 when we took on the Roy Hill tenements dropped by then iron ore
possible, warmest congratulations to all.
leader BHP, I was the youngest in the company and had just taken on the
responsibility of Chairmanship.
Against advice, HPPL applied for Roy Hill and took huge risks on Roy Hill.
Staff were saying, “Don’t do it”. Those involved in our company back in
1992 and our external consultant also, thought taking on Roy Hill was the
wrong decision. They advised in writing – not to take up Roy Hill. One key
report after reviewing BHP exploration results recommended against saying
“Without the presence of the Mt. Newman Member formation of significant
high grade mineralised bodies is generally precluded
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... and ...it is recommended that these areas not be considered for
Our mega financing with 19 of the world’s largest banks, including the 11
acquisition.” Another said......”It is considered unlikely that mineable amounts
largest banks in the world, and 5 ECAs, gained international acclaim, winning
of high grade ore can be found.”
a number of financing awards.
After all, not only was the company group short of money for such a
Tonight I am joined by the hard working Roy Hill CFO, Mr Garry Korte, who
substantial undertaking, but also when the most knowledgeable company
will talk about our record breaking financing which was so critical to enable
in iron ore in the Pilbara had decided that the Roy Hill area was not of value,
the development of the project.
after their own initial exploration, you can understand why professional people
had their reservations. But I shared my father’s vision and desire for northern
development.
Fortunately for us, BHP’s exploration program hadn’t been successful, with
their limited drilling not hitting the right areas.
The exploration program was financed by a trickle of money from our
company to carry out as much work as we were able to do with very limited
funds, and eventually Hancock prospecting discovered the deposits that this
great project is based on today.
Please welcome Garry
Unlike what many in media choose to portray, money doesn’t just fall from
the sky, even when a tenement is granted, it takes years of work and effort,
Firstly I would like to acknowledge and pay tribute to Mrs Rinehart for the
increasing years, to get through increasing government approvals permits
incredible work that she has done over 20 years to overcome so many
and licences, and massive risk investment, and usually major borrowings.
challenges to develop the Roy Hill project to where we are today.
After more successful exploration, we recognised that for a project like Roy
Without your efforts there would be no Roy Hill. Although I have only been
Hill, to be able to support infrastructure for its tonnage over approximately
on board for a comparatively short period it has been an exciting journey.
300 kilometres, a mega-project would be required. And for a project the
size of Roy Hill, the banks would prefer to see us with partners of substance.
The US7.2B debt financing as many probably already know is the largest
project financing for a largely Greenfields mining development in the world.
We achieved such partners, partners who like us, took on still significant risk,
As I found out there is a good reason something is a first .... It was pretty
given this project was mainly a Greenfield project, plus all the risks a mega
tough to get the deal over the line and it took about 2 years of blood sweat
project involves, including government approvals risks.
and some tears before it finally closed in April 2014.
Our partners, Marubeni Corporation, POSCO and China Steel also committed
To make it harder still, we were racing against the clock to get the project
to be customers with over 50% of Roy Hill’s 55 million tonne output
financed and built, after a competitor had caused delays with rail route
committed to them. I would like to acknowledge our partners, some of whom
access across their tenements. This meant that we didn’t have the luxury of
are here tonight and thank them for their unwavering excellent support.
the usual approach where the full equity and debt funding package is put in
place before any substantial work commences.
Usually companies that take on such investments and commitments are
much larger than our private company – but the banks supported me.
The partners were faced with the challenge and substantial risk that they
would need to start building using their equity funds before we had finalized
the debt component of the financing. This provided an immovable deadline
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and timeframe for the financing, and more than a little bit of motivation for
Then when we were heading into the home straight, a week before we were
some of us and at times what felt like blow torch type pressure.
about to sign with a consortium of 24 banks, Forge Construction Group , one
of the main sub-contractors, went into receivership. What timing, you almost
It demonstrates the faith of our partners in Roy Hill as a project and in Mrs
couldn’t script it. Forge were the key subcontractor that held the $1.4B
Rinehart’s ability to make it happen, come what may, as well as an incredible
contract to build the process plant.
commitment by the shareholders to spend approximately 40% of the project
value before the first debt was in place and drawn down. Just to put that into
I always say that the projects team made life a lot easier and they scrambled
perspective for you – Roy Hill is a $10 billion project.
to fix the problem with signing eventually delayed by less than 2 weeks. A
financing of this size is a team effort and there was strong leadership from
We also had more than a little help in the marketing of the finance that
Hancock executives, unwavering support from our shareholders, the Roy Hill
changed the game. Firstly, Mrs Rinehart hosted a lunch where we invited
team and our financial advisors, many of the people who are here in the room
about 80 bankers from around the world. Her personal touch hosting
tonight, that allowed us to secure this very valuable financing.
the lunch in the outback and star power talking to each guest individually
meant that we secured pledges virtually on the spot to billions of dollars of
Finally I would like to make a brief mention of what we are doing to manage
commercial bank support.
costs, which is particularly important given the current tough iron ore price
environment.
Then when we had literally run out of time there was a famous dinner hosted
by Mrs Rinehart, with the conservative export credit agencies where the head
Before I talk about costs I would like to comment on the reports in the media
of the lead ECA danced with our Chairman.
recently implying that it is the Roy Hill project that has caused the iron ore
price reductions and grossly overstating our impact.
This helped his enthusiasm for the project and he announced unexpectedly
a few minutes later, at that dinner, that he would bring the date of their next
What seems to have been lost and ignored is that prices dropped last year
board meeting forward to deal with our financing.
and further again this year, before Roy Hill has shipped any tonnage at all.
The reports are silent on the increases between now and the end of 2017
This was a commitment to bring the Board approval meeting forward by
from other companies which will significantly exceed shipments from Roy Hill.
three months – three months we desperately needed or we would have run
out of money..... and the project would have stopped in its tracks and the
It will take time for Roy Hill to ramp up to our 55mtpa capacity and their
CFO would probably have been fired.
assessments also don’t take into account that over 50% of Roy Hill’s output
will be taken by our partners who are outside of China.
We also had our fair share of challenges along the way including incredibly
having to deal with a US government budget shutdown in September 2013,
Hence, the criticism from some quarters that Roy Hill has apparently single
which meant the financing negotiations came to a grinding halt.
handedly led to the iron ore price reductions we see in the market, is
unjustified.Returning to the subject of managing costs, a subject close to my
Who would have thought of needing to contemplate and plan for a US
heart and I know our Chairman’s.
Government shutdown of all things... it just doesn’t happen does it?
At Roy Hill we are working with suppliers across the board to reduce costs,
By way of explanation USEXIM is one of our ECA financiers and the ECA’s
we have recently reviewed employment costs and there is also a focus on
have an agreement that they only negotiate as one group ... so this really
the use of technology to reduce costs further. and running and leads the
stretched our timeline.
industry in terms of controlling all of our operations from pit to port in one
place as well as integrating our production operations with our supply chain
and maintenance planning operations.
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This control allows the end to end business optimisation, removing silos and
Our 344 kilometre heavy haul railway is complete and employs the latest
eliminating costs associated with sub-optimal planning. We are also using
technologies with options for automation. We have celebrated in the last two
drones for surveying and automation on drills to increase accuracy and
months, the production of our first course ore and first fine ore being loaded
eliminate some waste and are investigating whether we can use robotics to
onto a train, and their deliveries to Port Hedland.
assist with conveyor maintenance and refuelling.
Our dedicated two-berth port facility at Port Hedland is capable of exporting
Ways need to be found to help Australia maintain its cost competitiveness
more than 55Mtpa of iron ore as lump and fines. And the first ship is in port,
in an increasingly tough and competitive market. We also must realise the
being loaded with our first ore!
extra cost burden imposed by governments, both state and federal, with
their approvals, permits licences and regulatory compliance, and find ways
Our staff morale is high, we are more than a month ahead of what the
to significantly cut this burden to help our high cost Australian environment
partner’s aggressive schedule had planned in the detailed bankable feasibility
maintain its ability to be competitive in world markets.
study. A fantastic achievement. And we currently remain within budget –
somewhat of a rarity for a major project in West Australia.
Thank you for your attention.
This is an amazing achievement by our executives and project team, and the
approximately 50,000 men and women who’ve been involved across the
project over years.
In terms of the world iron-ore market, Roy Hill is a low-cost producer, with
low phosphorous impurities, significant lump ratio, consistent quality, so we
are better situated than most.
With Australia exporting record quantities of almost 800mtpa of iron ore,
quality iron ore resources are being consumed at a fast rate and it takes
many years to achieve government approvals, permits and licences to enable
new mines. Over time the demand supply situation changes.
Apart from being the largest financing in mainland resource history, ever
– we have achieved other notable firsts, such as having the largest ever
Roy Hill is a long-term project with a long-term outlook and, approximately
commercial contract between Australia and Korea when we signed the EPC
90% of Roy Hill’s quality product is already under long term contracts.
Construction contract needed to underpin the financing.
But Australia needs to understand that there is nothing we can do about
So many negative people said we’d never be able to pull the major debt
international prices and if we don’t keep our costs down and export
financing off, or build this mega-project ... but we have. As Garry mentioned,
competitively, other nations will.
some of the banks who helped us achieve our financing are here tonite, may
I take this opportunity to publicly thank them, if some of the representatives
Roy Hill should serve as a beacon of hope, but Australia needs to do more to
here tonite wouldn’t mind standing, please do.
unleash the potential of our largely undeveloped North.
Please join me in applause.
We need to stop finding reasons not to do things and pursue ways of making
it happen. Special economic zones, working successfully in other parts of
Thanks to this financing, Roy Hill now has four large mine pits operating
the world, could work in our North too, which is why ANDEV, Australians
successfully with their production well ahead of schedule.
for Northern Development and Economic Vision, has spent years promoting
these less government burdened zones. Special economic zones would
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reduce the cost of developing projects and encourage further investment
and growth.
We should be implementing ways to entice investment and welcoming
Australians investing in Australia. We need to act to stop the continual decline
of investment in Australia.
My father, Lang Hancock, through his discoveries and determination to
overcome bureaucracy to enable the benefit of his discoveries, changed
Australia’s future. He lobbied for almost 10 years to remove federal and
state government impediments to the export of iron ore and the pegging of
iron ore in North WA. Since the first significant exports were achieved from
the Pilbara in the latter half of the sixties, the WA iron ore export industry has
earned a staggering $460 billion plus in export earnings.
This is money that has come into Australia and that has paid wages, been
used to purchase goods and services and paid royalties and other taxes, and
used for important reinvestment. Indeed enough to change West Australia
from a mendicant or handout state to one that contributes to Australia, and
has done so for decades.
And, please try to imagine where Australia would be without the $460 billion
plus contribution from the iron ore industry alone, let alone the rest of the
mining and related industries. How much more debt would our record debt
country be in without the staggering contribution from our iron ore and other
mining and resources industries?
We’d have surpassed the Greece tragedy years ago.
My father’s achievements commencing with his historical discovery flight
back on November 22, 1952 are remarkable in that his legacy helped
improve our living standards, our quality of life, and spread opportunities to
so many across this country.
Not all of us can make the extraordinary contribution my father did, but I hope
you will join with me to stand up for the industry. In a time when government
is expanding even more and we have reached record debt in excess of $400
billion, leaders are needed in the mining and related industries community
and we need to be far more vigilant as far as big government is concerned.
Thank you!
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The Leaders - Olicell Group (M) Sdn Bhd
DATO’ DR. SHUM CHE KOK J.P.
Founder, Olicell Group (M) Sdn Bhd
Choosing from the plethora of skincare products on the shelf these days can
be daunting as all seemed to be offering the same result. But all of us yearn
a product that allows us to rediscover a brand new, youthful us.
We want a product that can stay true to us as we progress from one phase
of life to another, very much life keeping our skin elastic, firm, smooth and
bright as we move along over the years.
With this very guest, Dato’ Dr Shum J.P. set up Olicell Group (M) Sdn Bhd in
2013 to offer a range of Cellglò brand with skincare and wellness products
in Malaysia, Singapore, Hong Kong and China.
Cellglò product comes with a complete lab-test report and each product
complies with our Ministry of Health regulation. All cellglò products are
formulated in France and they work with users of all ages.
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The revolutionary quality products that Olicell Group is offering are Cellglò
Global Best Brands in
Natural Beauty
Cream & Wellness
Crème 21, Cellglò Crystal Eyes, Cellglò Deep Cleansing Bar and Cellglò
Moisturising Sunblock.
“Beauty comes from within” . Sparkling eyes and glowing with health in the
eptome of beauty. Cellglò Crystal Eyes with its two main botanical ingredients
of Lutein and marine algae Astaxanthin together with its blend of nine types
For Global Branding Award:
of wild berries and fruits was discovered by France Bio-chemist, to inhibit the
damaging effects of oxidative UV blue light stress.
• Tell us about why you start this company and what keep you doing this.
Crème 21 is formulated with plant protein using state-of-the-art Hydro
I start this company because I feel that the health & wellness industry has
Extraction technique from France. The light and satin-smooth crème is blend
a good market and products like cellglo is very good products with natural
of wild yam Dioscorea Villosa extract, wild soya bean Phyto-Placenta, and six
ingredients and I want to do something back to the community that motivates
other main natural ingredients.
me.
Deep Cleansing Bar neutralizes toxins through its antioxidant properties,
• Where do you get this ideas of producing the beauty and wellness products
resulting in natural whitening skin effect, while the ingredients lavender
that you are selling hot right now, especially the hot selling cellglo Crystal
essential oil is well known for its anti-bacteria and anti-fungal properties.
Eyes?
Moisturising Sunblock comes with SPF 50+++ to protect our skin from
Ok the idea actually comes from products testimonial, when first we started
damaging sun ray but also moisturizing our skin to radiant and glowing
this product I had a doubt but when my customers gave me good feedbacks
without greasiness.
it really motivates me expecially this cystal eyes which is a very very good
product as it is rich in caratenoid that gives our eyes sharp, clear eyesight
protect from any adical in and outside of our body
• What is your leadership style when running your business?
When basically I am very easy person to deal with and that is my first quality
as it makes me to get along with my staffs and understand the need of both
in and out of the market presence
• How do you deal with the Gen Y stakeholder in your company?
It is a very good question, in this current situation, Gen Y is very important in
the progress of any company and as you can see all my management and
executives are all young people and that’s why you can see me also young,
vibrant and very motivated, but in a serious note I give them the privilege to
come up with the marketing plans and this motivates them
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•What distinguished between your products and the rest in the industry?
• What other CSR projects that your company is planning to do in the near
future?
Well the difference is our products is developed and produced with the most
innovative, exciting, high performance, revolutionary beauty and eye wellness
Well its still early but we have a very good few exciting CSR projects which
products, for both woman and man all over the world and also our very
my team will start planning from January 2016 onwards
strong collaborations with our agents and dealers.
• How do you see the current market that you are in now? And what does
the future hold?
The current market situation is very tough and there are too many beauty
products in the market but I always believe that the best products with best
services will always be recognized by customers who believe in the money
spend, future looks good and I am sure there are more areas we can tap in.
• What is your advice to the young people who want to start a business?
My advice to the young people is money don’t come easy, put your hard
work and plan accordingly and one day you will deserve the recognition.
Socially Responsible
Company In
Health & Wellness
For Asia Pacific CSR Awards:
• Why you think social responsibility is import for your company sustainability?
A very good question once again, it is very important for our company to
sustain by doing social responsibility because end of the day what we get
from our customers and given back to the community and this is a cycle that
makes our company to be recognised
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The Leaders - France’s Lagarde officially named for second term to lead IMF
France’s
Lagarde
officially
named for
second
term to
lead IMF
WASHINGTON (AFP) - France’s Christine Lagarde, who battled financial fires
in revitalising the Fund’s relations with its global membership, including its
across Europe as managing director of the International Monetary Fund, was
emerging market and developing members,” noted Mozhin.
officially named Friday to a second five-year term. “In taking this decision,
the board praised Ms Lagarde’s strong and wise leadership during her first
Lagarde said she was “delighted” to accept a second term to lead the IMF,
term,” said Aleksei Mozhin, the dean of the Fund’s Executive Board. “During
which represents 188 member countries. “Over the past five years, the IMF
turbulent times in the global economy, Ms Lagarde strengthened the Fund’s
has adapted and strengthened its capacity to respond to its members’ needs
ability to support its members with policy advice, capacity building, and
and is well-prepared to help them meet the challenges of the future,” she said.
financing.” Lagarde, 60, and formerly France’s finance minister, faced no
“The Fund remains committed to its fundamental goal of helping to ensure
opposition for the job, after successfully restoring the reputation of the global
global economic and financial stability through international cooperation.”-
crisis lender’s leadership following her predecessor Dominique Strauss-
IMF
Kahn, who resigned under the cloud of a sex scandal in 2011. But she also
built respect for leading the IMF through tough, huge rescues of Greece,
Ireland, and Portugal in the European economic crisis. And she managed to
advance reforms of the Fund which elevated the status of the new emerging
economic powers like China after decades of domination of the Fund by
Europe, the United States and Japan. Lagarde has “played a critical role
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The Leaders - Retail research firm forecasts limp sales for 2016, says weak ringgit, GST closing wallets
Retail research
firm forecasts
limp sales for
2016, says
weak ringgit,
GST closing
wallets
sales growth of no more than 1.3 per cent. Department and supermarket
store sales is expected to drop to -2.6 per cent while department stores
believe their sales in the last quarter would remain in the red, forecasting a
negative growth rate of 12.2 per cent. But supermarket and hypermarket
operators are expected to rebound from two consecutive quarterly decline
KUALA LUMPUR, Dec 16 ― Malaysia’s retail industry recorded 1.6 per cent
growth up to September this year, lower than estimated, and the situation
is likely to stagnate next year, Retail Group Malaysia said in its latest report.
According to the report released today, consumers have grown more
cautious in spending after the introduction of the Goods and Services Tax
(GST) in April, and doubly so as the ringgit continues to slide, factors that
have hit the retail sector hard.
Retail sales dropped to a staggering -11.9 per cent from April to June but
rebounded during the Hari Raya celebrations, only to drop again to 1.6 per
cent.
Retail sales dropped to a staggering -11.9 per cent from April to June but
with a 2.2 per cent recovery growth rate for the fourth quarter of 2015.
rebounded during the Hari Raya celebrations, only to drop again to 1.6
Consumers’ fashion sentiment also appeared to be unperturbed by the
per cent. The overall sales from January to September only grew by 1 per
gloomy economic outlook as retailers in the fashion and fashion accessories
cent. “Malaysia retail industry had yet to recover from the negative impact of
sector said they expect their businesses to maintain the recovery momentum
Goods & Services Tax (GST) on consumers’ spending. The unexpected drop
with a positive growth of 4.4 per cent during the last three-month period of
in ringgit value worsened it. “This quarterly performance is above the average
2015. Other specialty stores ― which includes retailers selling photographic
growth rate of 0.1 per cent forecasted by members of MRA in August 2015,
equipment with photo processing services, sports-related goods, children-
but below the expected growth rate of 2.5 per cent calculated by Retail
related goods, optical products, second-hand goods, souvenirs and gifts, toys
Group Malaysia,” the report stated. Retail Group Malaysia also claimed that
as well as restaurants ― are hopeful of keeping their growth at 6.0 per cent
consumer sentiment was severely affected by the “political development” in
for the final quarter of 2015, as compared to the same period last year.- THE
the third quarter, but did not elaborate. “The political development in Malaysia
MALAYMAIL ONLINE
affected retail sales indirectly during the third quarter. The political situation
was affecting the consumer sentiment level and buying mood of Malaysian
consumers. “As a result, they were spending less,” the retail research firm
said in its report. The firm added that while consumers are likely to spend
a bit more during the end of year school holidays this quarter, it expected a
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The Leaders - Paying with your face and car is the new paying with your phone
Paying with
your face and
car is the new
paying with
your phone
Just as we come to grips with buying a cup of coffee with a wave of a phone,
the finance and mobile industries are planning how we’ll eventually pay with
our refrigerators, our cars and even our faces. Over the last four decades,
magnetic-stripe cards have been the only significant alternative to paying with
cash or checks. But a flood of experimentation in payment methods over the
past two years has changed that dynamic. Last week, a slew of new payment
concepts emerged at the Mobile World Congress trade show in Barcelona.
“We’ve seen an incredible pivot away from that magnetic stripe on a back
of a credit card and toward imagining every device as a payments-initiating
device, including a car, a refrigerator, a watch, a phone and everything in
between,” said Jason Oxman, chief executive of the Electronic Transactions
Association, a trade group representing payments and technology companies.
This may be the next revolution in how we pay for goods and services.
Tech leaders Apple and Google have already embraced mobile payments,
Visa will be testing its connected car in the US over the coming months.
while payment leaders such as Visa, MasterCard and PayPal have built the
underlying infrastructure to support the mobile payments systems. They
“Mobile is blurring the distinction between the online and in-store
are now looking to apply these principles elsewhere. Eventually, you won’t
environments,” PayPal CEO Daniel Schulman, said during his Mobile World
need to pull out your card or even your phone to make a purchase. Virtually
Congress keynote. At MWC, Visa showed off a connected car that lets drivers
anything around you can serve as a digital wallet.
pay for parking or for gas, thanks to a chip that lets the vehicle talk to the
parking meter or gas pump. Climbing into the Honda on display at the Visa
booth, you see how the connected car’s dashboard timer could save you
money by only paying for the exact length of time you’re parked. Visa also
sees potential in wearable technology and other connected objects. “If it has
connectivity, there’s a potential that somebody might want to use it to pay,
whether it’s a watch or a raincoat,” Sam Shrauger, Visa’s senior vice president
of digital solutions, said in an interview at the company’s MWC booth. This
isn’t unique to Visa. Samsung’s screen-clad smart fridge, which debuted at
this year’s Consumer Electronics Show in Las Vegas, lets you order and pay
for groceries.
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The Leaders - Paying with your face and car is the new paying with your phone
So far, consumers and retailers don’t seem particularly interested. Gerry
To get people more interested in new payments services, companies need
Granovsky, Moody’s analyst focused on technology and payment, said
to build them deeper into the shopping process, not just as another option
he’s skeptical about the viability of many of the new payments concepts.
at checkout, said Alejandra Tejada, a manager for marketing researcher
“They sound good on paper,” he said, but consumers seem just as happy
Millward Brown Digital.
to stick with their credit and debit cards. That is the same problem mobile
payments have faced for years. Even the most prominent system, Apple, has
Instead of simply allowing people to pay with their watch at the register,
faced slow adoption. Only 12.7 percent of US smartphone owners used
she suggests letting customers do so around the store and bypass the
mobile payments last year, according to eMarketer.com, though the research
checkout line altogether. “You have to take a step back and put yourself
company forecasts that the figure will grow to 19 percent this year.
in the consumer’s shoes and ask, ‘What am I saving here?’” Tejada said.
This hasn’t escaped the notice of PayPal. The company has expanded the
reach of its One Touch feature, which lets you pay on a mobile device by
tapping the screen without entering your credentials or shipping details, said
Jo Lambert, PayPal’s vice president of consumer products. It is the fastestadopted PayPal feature ever launched. MasterCard, meanwhile, announced
its “selfie” payment option last year and showed it off at MWC last week. It
uses the phone’s front-facing camera and a single blink to verify the identity
of the buyer. One CNET reporter pounced on a spare selfie-pay-enabled
smartphone to try this out. The phone’s screen was projected onto a large
display at MasterCard’s booth. So when the payment was declined, the
show floor witnessed the humiliation. The phone hadn’t been set up to work
with the reporter’s face, though, so at least it’s secure. While these finance
companies are experimenting with different pieces of tech, there’s still a lot
of love for simple plastic. “The card needs to evolve to suit a world that it was
not envisioned for when it was first created,” Shrauger said.-CNET
At MasterCard’s MWC booth, the company demonstrated how to pay with
your fridge.
14
The Leaders - 5 Amazing things you’ll be able to do with 5G
5 Amazing things
you’ll be able to do with 5G
OK, so everyone in the wireless industry is talking about 5G. Why should I
care? 5G aims to be 100 times faster than our current wireless technology
and even speedier than what Google Fiber offers through a physical
connection to the home. The incredible speeds and responsiveness achieved
with 5G open up new possibilities, and the technology had people buzzing
at the Mobile World Congress trade show in Barcelona, Spain, this week.
“5G will take it to the next level,” said Cristiano Amon, president of
Qualcomm’s chip business. “There will be “ubiquitous connectivity from all
sorts of devices.”
Do be mindful of the hype surrounding 5G. The earliest mobile deployments
likely won’t happen until 2018, with broader availability in the years after.
But that doesn’t mean you can’t dream about what’s next. Here are a few
things you’ll be able to do with 5G.
Games and new experiences
Want to play a virtual game against a friend across the world or visit a fancy
beach house when you’re really stuck in your basement apartment? With 5G,
you can wirelessly stream that content into your virtual-reality headset.
Facebook CEO Mark Zuckerberg said at MWC that he hoped VR would be
one of the “killer applications of 5G.” Data transfers so quickly that you won’t
have to wait long for virtual experience to load on your mobile VR headset.
Thanks to the minute lag times, you’ll be able to keep up with your gamer
friend on the other side of the planet.
“My son wants to do lightsaber duels,” said Woojune Kim, head of Samsung’s
next-generation network business.
15
The Leaders - 5 Amazing things you’ll be able to do with 5G
Self-driving cars
5G networks can respond fast enough to coordinate self-driving cars, either
a second or two to load, even on a fast connection. With 5G, those results
will come immediately.
with cars talking to a central controller at a road intersection or communicating
with each other.
Or if you wanted to kick back and download the movie “The Guardians of the
Galaxy,” it would zip to your device in 15 seconds instead of the 6 minutes
“You can imagine no traffic lights in the street -- the cars are crossing, but
they’re not bumping into each other,” said Volker Held, head of innovation
marketing at network equipment maker Nokia.
Once all cars have sensors and cameras, they could also capture continuous
video footage, said Marc Naddell, a vice president at chipmaker MediaTek. If
there’s an accident, you’ll be able to view video from all angles, not just from
the cars involved but from all cars in the area at that time.
Remote health care
Telemedicine becomes feasible with 5G, whose communication lag is brief
enough to permit doctors to perform some procedures remotely, said Matt
Grob, chief technology officer of mobile-chip maker Qualcomm. Carriers can
set up 5G networks so those medical procedures get priority over someone
watching YouTube videos.
The lag time is so miniscule that doctors could use robots to operate on
you from 1,000 miles away. People in remote regions can be treated by the
specialists, even if they’re halfway across the world.
“You can get the best doctors in the world to work on your mother’s cancer,”
Samsung’s Kim said. “That was not feasible years ago.”
Videoconferencing like you’re really there
Kim believes the way we communicate will become more visual. Imagine
talking to your family by way of a supersharp video, with resolution so high
it’s like you’re next to them. Or rehearsing with your bandmates -- in different
homes -- via video. That seems simple, but today’s networks don’t offer
precise real-time communications. There’s always a lag, and that causes it
all to fall apart.
Hollywood-like Web speeds
Remember in “The Amazing Spider-Man” when Peter Parker runs a Bing
search (we know, Bing?) on Dr. Kurt Connors and instantly gets results?
Your Web pages never load that fast. “That’s Darth Vader’s computer there,”
Ericsson Chief Technology Officer Ulf Ewaldsson quipped. Pages usually take
16
it takes via 4G.
The Leaders - McDonald’s Happy Meal box folds into a VR headset for kids
McDonald’s Happy
Meal box folds
into a
VR headset
for kids
Back in my day, McDonald’s fast-food Happy Meals came with little plastic
Naturally, the fast-food company also developed a game to go with the
toys like chicken McNuggets dressed as cowboys or Garfield the cartoon cat
goggles. The skiing game challenges you to stay alert on a downhill run
on a skateboard. And we were grateful.
while avoiding obstacles. It’s endorsed by the Swedish alpine ski team and is
meant to educate kids on ski safety. The game launches Saturday.
Kids these days are about to get a whole new dimension of reality with
their Happy Meals. McDonald’s Sweden is kicking off a campaign with
Happy Goggles will only be available in Sweden, but McDonald’s says it
Happy Meal boxes that transform into virtual-reality headsets. It released a
hopes to roll it out to other countries soon.-CNET
promotional video Monday demonstrating how to unfold the bright-red box
to create a cardboard VR headset that holds your smartphone. It’s called
“Happy Goggles.”
“It’s our mission to ensure that the World’s most famous box will continue
to be magical and relevant to families for another 30 years,” McDonald’s
said. “The Happy Meal simply must move with the times.” The Happy Meal
debuted in the US in the late 1970s, but is currently celebrating its 30th
birthday in Sweden.
17
The Leaders - US election 2016: How does it all work?
US election 2016:
How does it all work?
In January 2017, the most powerful nation on earth will have a new leader,
In this 2016 election, at one stage there were 10 governors or former
after a drawn out and expensive campaign - but how does a US presidential
governors and 10 who are or were senators, although many have since
election work?
dropped out.
When the US picks its president, it is not only choosing a head of state but
One person is nominated to represent the Republican and Democratic parties
a head of government and a commander-in-chief of the largest military on
in the presidential election.
the planet.
It’s a big responsibility. So how does the process work?
Who can be president?
Technically, to run for president, you only need to be “a natural born” US
How to become the president of the US
Who gets to be the presidential pick for each party?
A series of elections are held in every state and overseas territory, starting
in February, which determine who becomes each party’s official presidential
candidate.
citizen, at least 35 years old, and have been a resident for 14 years. Sounds
easy, right?
The winner of each collects a number of “delegates” - party members with
the power to vote for that candidate at the party conventions held in July,
In reality, however, every president since 1933 has been a governor, senator,
where candidates are formally confirmed.
or five-star military general. And that’s before you even consider getting a
party nomination and securing national media attention.
The more state contests a candidate wins, the more delegates will be pledged
to support them at the convention.
18
That happens after the summer, when the two candidates hold a manic,
As President Barack Obama cannot run again, both parties are holding
mammoth journey whizzing across the country to make their case.
competitive primaries this year.
There are three televised presidential debates in the last six weeks before The Republican candidate will need 1,237 delegates to win a majority, while
finally - votes are cast on Tuesday, 8 November.
the Democratic contender must secure 2,383.
What are primaries and caucuses?
How does the vote in November work?
The candidate with the most votes in each state becomes the candidate
which that state supports for president.
It’s all down to a system called the electoral college, a group of people who
choose the winner - 538 of them, in fact. Just half of them - 270 - are
needed to make a president.
But not all states are equal - California, for example, has more than 10 times
the population of Connecticut, so they don’t get an equal say.
Candidates like Ted Cruz have spent a lot of time in Iowa
What are the key dates between now and the
election?
Each state has certain number of these “electors” based on their population
in the most recent census (it so happens that it’s the same number of districts
in a state, plus two senators).
The first votes were cast in Iowa on 1 February - it was the first US state
to have a contest (although in Iowa’s case, it’s a caucus, which is a vote of
When citizens vote for their preferred candidate, they’re actually voting for
people present rather than through a ballot).
the electors, some of which are pledged to one candidate, some for another.
Other early states include New Hampshire on 8 February and South Carolina,
But here’s where it gets interesting. In almost every state (except Nebraska
which means they have presidential candidates visiting them for months on
and Maine), the winner takes all - so the person who wins the most electors
end.
in New York, for example, will get all 29 of New York’s electoral votes.
On 1 March, a dozen states pick their presidential nominees, so it’s called
In the race to get to the magic number - 270 - it’s the swing states that often
Super Tuesday. In 2016, the primaries held on 15 March, including Florida,
matter most.
Ohio and North Carolina, could be significant because so many delegates
are up for grabs.
By the end of April, most states have cast their votes and in most election
campaigns, it’s clear by then who each party has picked as their presidential
candidate. But it’s not official until the party conventions in July.
If you’re still with us, you’ll be glad to know the real campaigns haven’t even
started yet.
19
The US electoral college explained
What are swing states?
So, we’ve got two candidates, both in a race to get to 270 electors by
winning whole states at a time.
Both parties think they can bank on certain states, big and small. Republicans
will count on Texas, and not waste their money campaigning to a great extent
there. Similarly, California is likely to sit in the Democrats’ column.
The others are known as “swing states” - where it could go either way. Florida
in particular, with its 29 votes, famously decided the 2000 election in favour
of George W. Bush, who lost the popular vote nationally but, after a Supreme
Court case, won the Electoral College.
Other swing states include: Ohio, Virginia, Colorado, North Carolina, Nevada.
When does the new president start work?
In the days and weeks after the election - if the vote is decisive - the victor
will assemble a cabinet and begin crafting a more thorough policy agenda.
Meanwhile, the departing “lame duck” president works to shape his legacy
and begins packing up his belongings.
Under the US constitution, the president is inaugurated on 20 January of the
year following the election.-BBC
20
The Leaders - World Economic Outlook (WEO) Update
WORLD ECONOMIC OUTLOOK
(WEO) UPDATE
Subdued Demand, Diminished Prospects
• Global growth, currently estimated at 3.1 percent in 2015, is projected at 3.4 percent in 2016 and 3.6 percent in 2017. The pickup in global activity is
projected to be more gradual than in the October 2015 World Economic Outlook (WEO), especially in emerging market and developing economies.
• In advanced economies, a modest and uneven recovery is expected to continue, with a gradual further narrowing of output gaps. The picture for emerging
market and developing economies is diverse but in many cases challenging. The slowdown and rebalancing of the Chinese economy, lower commodity prices,
and strains in some large emerging market economies will continue to weigh on growth prospects in 2016–17. The projected pickup in growth in the next
two years—despite the ongoing slowdown in China—primarily reflects forecasts of a gradual improvement of growth rates in countries currently in economic
distress, notably Brazil, Russia, and some countries in the Middle East, though even this projected partial recovery could be frustrated by new economic or
political shocks.
• Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy: a generalized slowdown in emerging market
economies, China’s rebalancing, lower commodity prices, and the gradual exit from extraordinarily accommodative monetary conditions in the United States. If
these key challenges are not successfully managed, global growth could be derailed.
Recent Developments
In 2015, global economic activity remained subdued. Growth in emerging market and developing economies—while still accounting for over 70 percent of
global growth—declined for the fifth consecutive year, while a modest recovery continued in advanced economies. Three key transitions continue to influence
the global outlook: (1) the gradual slowdown and rebalancing of economic activity in China away from investment and manufacturing toward consumption and
services, (2) lower prices for energy and other commodities, and (3) a gradual tightening in monetary policy in the United States in the context of a resilient U.S.
recovery as several other major advanced economy central banks continue to ease monetary policy.
Overall growth in China is evolving broadly as envisaged, but with a faster-than-expected slowdown in imports and exports, in part reflecting weaker investment
and manufacturing activity. These developments, together with market concerns about the future performance of the Chinese economy, are having spillovers to
other economies through trade channels and weaker commodity prices, as well as through diminishing confidence and increasing volatility in financial markets.
Manufacturing activity and trade remain weak globally, reflecting not only developments in China, but also subdued global demand and investment more
broadly—notably a decline in investment in extractive industries. In addition, the dramatic decline in imports in a number of emerging market and developing
economies in economic distress is also weighing heavily on global trade.
Oil prices have declined markedly since September 2015, reflecting expectations of sustained increases in production by Organization of the Petroleum Exporting
Countries (OPEC) members amid continued global oil production in excess of oil consumption.1 Futures markets are currently suggesting only modest increases
in prices in 2016 and 2017. Prices of other commodities, especially metals, have fallen as well.
Lower oil prices strain the fiscal positions of fuel exporters and weigh on their growth prospects, while supporting household demand and lowering business
energy costs in importers, especially in advanced economies, where price declines are fully passed on to end users. Though a decline in oil prices driven by higher
21
oil supply should support global demand given a higher propensity to spend in oil importers relative to oil exporters, in current circumstances several factors have
dampened the positive impact of lower oil prices. First and foremost, financial strains in many oil exporters reduce their ability to smooth the shock, entailing a
sizable reduction in their domestic demand. The oil price decline has had a notable impact on investment in oil and gas extraction, also subtracting from global
aggregate demand. Finally, the pickup in consumption in oil importers has so far been somewhat weaker than evidence from past episodes of oil price declines
would have suggested, possibly reflecting continued deleveraging in some of these economies. Limited pass-through of price declines to consumers may also
have been a factor in several emerging market and developing economies.
Monetary easing in the euro area and Japan is proceeding broadly as previously envisaged, while in December 2015 the U.S. Federal Reserve lifted the federal
funds rate from the zero lower bound. Overall, financial conditions within advanced economies remain very accommodative. Prospects of a gradual increase in
policy interest rates in the United States as well as bouts of financial volatility amid concerns about emerging market growth prospects have contributed to tighter
external financial conditions, declining capital flows, and further currency depreciations in many emerging market economies.
Headline inflation has broadly moved sideways in most countries, but with renewed declines in commodity prices and weakness in global manufacturing weighing
on traded goods’ prices it is likely to soften again. Core inflation rates remain well below inflation objectives in advanced economies. Mixed inflation developments
in emerging market economies reflect the conflicting implications of weak domestic demand and lower commodity prices versus marked currency depreciations
over the past year.
The Updated Forecast
Global growth is projected at 3.4 percent in 2016 and 3.6 percent in 2017.
Advanced Economies
Growth in advanced economies is projected to rise by 0.2 percentage point in 2016 to 2.1 percent, and hold steady in 2017. Overall activity remains resilient
in the United States, supported by still-easy financial conditions and strengthening housing and labor markets, but with dollar strength weighing on manufacturing
activity and lower oil prices curtailing investment in mining structures and equipment. In the euro area, stronger private consumption supported by lower oil prices
and easy financial conditions is outweighing a weakening in net exports. Growth in Japan is also expected to firm in 2016, on the back of fiscal support, lower
oil prices, accommodative financial conditions, and rising incomes.
Emerging Market and Developing Economies
Growth in emerging market and developing economies is projected to increase from 4 percent in 2015—the lowest since the 2008–09 financial crisis—to
4.3 and 4.7 percent in 2016 and 2017, respectively.
• Growth in China is expected to slow to 6.3 percent in 2016 and 6.0 percent in 2017, primarily reflecting weaker investment growth as the economy continues
to rebalance. India and the rest of emerging Asia are generally projected to continue growing at a robust pace, although with some countries facing strong
headwinds from China’s economic rebalancing and global manufacturing weakness.
• Aggregate GDP in Latin America and the Caribbean is now projected to contract in 2016 as well, albeit at a smaller rate than in 2015, despite positive growth
in most countries in the region. This reflects the recession in Brazil and other countries in economic distress.
22
• Higher growth is projected for the Middle East, but lower oil prices, and in some cases geopolitical tensions and domestic strife, continue to weigh on the
outlook.
• Emerging Europe is projected to continue growing at a broadly steady pace, albeit with some slowing in 2016. Russia, which continues to adjust to low oil
prices and Western sanctions, is expected to remain in recession in 2016. Other economies of the Commonwealth of Independent States are caught in the
slipstream of Russia’s recession and geopolitical tensions, and in some cases affected by domestic structural weaknesses and low oil prices; they are projected
to expand only modestly in 2016 but gather speed in 2017.
• Most countries in sub-Saharan Africa will see a gradual pickup in growth, but with lower commodity prices, to rates that are lower than those seen over the
past decade. This mainly reflects the continued adjustment to lower commodity prices and higher borrowing costs, which are weighing heavily on some of the
region’s largest economies (Angola, Nigeria, and South Africa) as well as a number of smaller commodity exporters.
Forecast Revisions
Overall, forecasts for global growth have been revised downward by 0.2 percentage point for both 2016 and 2017. These revisions reflect to a substantial
degree, but not exclusively, a weaker pickup in emerging economies than was forecast in October. In terms of the country composition, the revisions are largely
accounted for by Brazil, where the recession caused by political uncertainty amid continued fallout from the Petrobras investigation is proving to be deeper and
more protracted than previously expected; the Middle East, where prospects are hurt by lower oil prices; and the United States, where growth momentum is now
expected to hold steady rather than gather further steam. Prospects for global trade growth have also been marked down by more than ½ percentage point for
2016 and 2017, reflecting developments in China as well as distressed economies.
Risks to the Forecast
Unless the key transitions in the world economy are successfully navigated, global growth could be derailed. Downside risks, which are particularly prominent for
emerging market and developing economies, include the following:
• A sharper-than-expected slowdown along China’s needed transition to more balanced growth, with more international spillovers through trade, commodity
prices, and confidence, with attendant effects on global financial markets and currency valuations.
• Adverse corporate balance sheet effects and funding challenges related to potential further dollar appreciation and tighter global financing conditions as the
United States exits from extraordinarily accommodative monetary policy.
• A sudden rise in global risk aversion, regardless of the trigger, leading to sharp further depreciations and possible financial strains in vulnerable emerging market
economies. Indeed, in an environment of higher risk aversion and market volatility, even idiosyncratic shocks in a relatively large emerging market or developing
economy could generate broader contagion effects.
• An escalation of ongoing geopolitical tensions in a number of regions affecting confidence and disrupting global trade, financial, and tourism flows.
Commodity markets pose two-sided risks. On the downside, further declines in commodity prices would worsen the outlook for already-fragile commodity
producers, and increasing yields on energy sector debt threaten a broader tightening of credit conditions. On the upside, the recent decline in oil prices may
provide a stronger boost to demand in oil importers than currently envisaged, including through consumers’ possible perception that prices will remain lower for
longer.
23
Policy Priorities
With the projected pickup in growth being once again weaker than previously expected and the balance of risks remaining tilted to the downside, raising actual
and potential output through a mix of demand support and structural reforms is even more urgent.
In advanced economies, where inflation rates are still well below central banks’ targets, accommodative monetary policy remains essential. Where conditions
allow, near-term fiscal policy should be more supportive of the recovery, especially through investments that would augment future productive capital. Fiscal
consolidation, where warranted by fiscal imbalances, should be growth friendly and equitable. Efforts to raise potential output through structural reforms remain
critical. Although the structural reform agenda should be country specific, common areas of focus should include strengthening labor market participation and
trend employment, tackling legacy debt overhang, and reducing barriers to entry in product and services markets. In Europe, where the tide of refugees is
presenting major challenges to the absorptive capacity of European Union labor markets and testing political systems, policy actions to support the integration of
migrants into the labor force are critical to allay concerns about social exclusion and long-term fiscal costs, and unlock the potential long-term economic benefits
of the refugee inflow.
In emerging market and developing economies, policy priorities are varied given the diversity in conditions. Policymakers need to manage vulnerabilities and
rebuild resilience against potential shocks while lifting growth and ensuring continued convergence toward advanced economy income levels. Net importers
of commodities are facing reduced inflation pressures and external vulnerabilities, but in some, currency depreciations accompanying reduced capital inflows
could limit the scope for monetary policy easing to support demand. In a number of commodity exporters, reducing public expenditures while raising their
efficiency, strengthening fiscal institutions, and increasing noncommodity revenues would facilitate the adjustment to lower fiscal revenues. In general, allowing
for exchange rate flexibility will be an important means for cushioning the impact of adverse external shocks in emerging market and developing economies,
especially commodity exporters, though the effects of exchange rate depreciations on private and public sector balance sheets and on domestic inflation rates
need to be closely monitored. Policymakers in emerging market and developing economies need to press on with structural reforms to alleviate infrastructure
bottlenecks, facilitate a dynamic and innovation-friendly business environment, and bolster human capital. Deepening local capital markets, improving fiscal
revenue mobilization, and diversifying exports away from commodities are also ongoing challenges in many of these economies.
Oil prices have fallen further since early December, when the assumptions about commodity prices used in this WEO Update were finalized
24
Table 1. Overview of the World Economic Outlook Projections
(Percent change unless noted otherwise)
Year Over Year
Estimates
Projections
Q4 Over Q4
Difference from
October 2015 WEO
Projections1
Estimates
Projections
2014
2015
2016
2017
2016
2017
2015
2016
2017
World Output
2/
3.4
3.1
3.4
3.6
-0.2
-0.2
3.0
3.4
3.6
Advanced
Economies
1.8
1.9
2.1
2.1
-0.1
-0.1
1.8
2.2
2.0
United States
2.4
2.5
2.6
2.6
-0.2
-0.2
2.1
2.7
2.5
Euro Area
0.9
1.5
1.7
1.7
0.1
0.0
1.5
1.8
1.6
Germany
1.6
1.5
1.7
1.7
0.1
0.2
1.5
1.7
1.7
France
0.2
1.1
1.3
1.5
-0.2
-0.1
1.3
1.6
1.5
Italy
-0.4
0.8
1.3
1.2
0.0
0.0
1.3
1.3
1.1
Spain
1.4
3.2
2.7
2.3
0.2
0.1
3.4
2.3
2.3
Japan
0.0
0.6
1.0
0.3
0.0
-0.1
1.5
1.2
-0.3
United Kingdom
2.9
2.2
2.2
2.2
0.0
0.0
2.0
2.2
2.2
Canada
2.5
1.2
1.7
2.1
0.0
-0.3
0.6
2.0
2.2
Other Advanced
Economies 3/
2.8
2.1
2.4
2.8
-0.3
-0.1
2.0
2.5
3.3
Emerging
Market and
Developing
Economies 4/
4.6
4.0
4.3
4.7
-0.2
-0.2
4.0
4.5
4.9
Commonwealth
of Independent
States
1.0
-2.8
0.0
1.7
-0.5
-0.3
-3.3
0.1
1.6
Russia
0.6
-3.7
-1.0
1.0
-0.4
0.0
-4.1
0.2
1.4
Excluding Russia
1.9
-0.7
2.3
3.2
-0.5
0.8
-
-
-
Emerging and
Developing Asia
6.8
6.6
6.3
6.2
-0.1
-0.1
6.5
6.2
6.3
China
7.3
6.9
6.3
6.0
0.0
0.0
6.8
6.1
6.0
India 5/
7.3
7.3
7.5
7.5
0.0
0.0
7.3
7.5
7.6
ASEAN-5 6/
4.6
4.7
4.8
5.1
-0.1
-0.2
4.6
4.8
5.5
Emerging and
Developing
Europe
2.8
3.4
3.1
3.4
0.1
0.0
3.7
5.0
2.6
Latin America and
the Caribbean
1.3
-0.3
-0.3
1.6
-1.1
-0.7
-1.5
0.3
2.0
Brazil
0.1
-3.8
-3.5
0.0
-2.5
-2.3
-5.6
-1.6
0.5
Mexico
2.3
2.5
2.6
2.9
-0.2
-0.2
2.5
2.7
3.0
25
Year Over Year
Estimates
Projections
Q4 Over Q4
Difference from
October 2015 WEO
Projections1
Estimates
Projections
Middle East,
North Africa,
Afghanistan, and
Pakistan
2.8
2.5
3.6
3.6
-0.3
-0.5
-
-
-
Saudi Arabia
3.6
3.4
1.2
1.9
-1.0
-1.0
3.6
0.5
2.3
Sub-Saharan
Africa
5.0
3.5
4.0
4.7
-0.3
-0.2
-
-
-
Nigeria
6.3
3.0
4.1
4.2
-0.2
-0.3
-
-
-
South Africa
1.5
1.3
0.7
1.8
-0.6
-0.3
0.4
0.9
2.4
Low-Income
Developing
Countries
6.0
4.6
5.6
5.9
-0.2
-0.2
-
-
-
World Growth
Based on Market
Exchange Rates
2.7
2.5
2.7
3.0
-0.3
-0.2
2.3
2.8
3.0
World Trade
Volume (goods
and services)
3.4
2.6
3.4
4.1
-0.7
-0.5
-
-
-
Advanced
Economies
3.4
4.0
3.7
4.1
-0.5
-0.4
-
-
-
Emerging Market
and Developing
Economies
3.7
0.4
3.4
4.3
-1.0
-1.1
-
-
-
Oil 7/
-7.5
-47.1
-17.6
14.9
-15.2
4.8
-42.7
5.3
11.1
Nonfuel (average
based on world
commodity export
weights)
-4.0
-17.4
-9.5
0.4
-4.4
0.1
-19.0
-2.2
0.3
Advanced
Economies
1.4
0.3
1.1
1.7
-0.1
0.0
0.4
1.3
1.9
Emerging Market
and Developing
Economies 4/
5.1
5.5
5.6
5.9
0.5
1.0
7.0
9.9
20.4
Memorandum
Imports
Commodity
Prices (U.S.
dollars)
Consumer
Prices
26
Year Over Year
Estimates
Projections
Q4 Over Q4
Difference from
October 2015 WEO
Projections1
Estimates
Projections
London
Interbank
Offered Rate
(percent)
On U.S. Dollar
Deposits (six
month)
0.3
0.5
1.2
2.2
0.0
0.0
-
-
-
On Euro Deposits
(three month)
0.2
0.0
-0.3
-0.2
-0.3
-0.3
-
-
-
On Japanese
Yen Deposits (six
month)
0.2
0.1
0.1
0.1
0.0
-0.1
-
-
-
Source: IMF, World Economic Outlook Update, January 2016
Note: Real effective exchange rates are assumed to remain constant at the levels prevailing during November 9–December 7, 2015. Economies are listed on
the basis of economic size. The aggregated quarterly data are seasonally adjusted.
1 Difference based on rounded figures for both the current and October 2015 WEO forecasts.
2 Countries included in the calculation of quarterly estimates and projections account for approximately 90 percent of world GDP at purchasing power parities.
3 Excludes the G7 (Canada, France, Germany, Italy, Japan, United Kingdom, United States) and euro area countries.
4 Countries included in the calculation of quarterly estimates and projections account for approximately 80 percent of the GDP of emerging market and
developing economies at purchasing power parities.
5 For India, data and forecasts are presented on a fiscal year basis and GDP from 2011 onward is based on GDP at market prices with FY2011/12 as a base
year
6 Indonesia, Malaysia, Philippines, Thailand, Vietnam
7 Simple average of prices of U.K. Brent, Dubai Fateh, and West Texas Intermediate crude oil. The average price of oil in U.S. dollars a barrel was $50.92 in
2015; the assumed price based on futures markets (as of December 10, 2015) is $41.97 in 2016 and $48.21 in 2017.-IMF
27
The Leaders - Oil Prices: What’s Behind the Drop? Simple Economic
Oil Prices:
What’s
Behind the
Drop? Simple
Economic
The oil industry, with its history of booms and busts, is in its deepest downturn
since the 1990s, if not earlier.
Earnings are down for companies that made record profits in recent years,
leading them to decommission more than two-thirds of their rigs and sharply
cut investment in exploration and production. Scores of companies have
gone bankrupt and an estimated 250,000 oil workers have lost their jobs.
The cause is the plunging price of a barrel of oil, which has fallen more than
70 percent since June 2014.
Prices recovered a few times last year, but the cost of a barrel of oil has
already sunk this year to levels not seen since 2003 as an oil glut has taken
hold.
Also contributing to the glut was Iran’s return to the international oil market
after sanctions were lifted against the country under an international
agreement with major world powers to restrict its nuclear work that took
effect in January.
Executives think it will be years before oil returns to $90 or $100 a barrel, a
price that was pretty much the norm over the last decade.
What is the current price of oil?
1. Brent crude, the main international benchmark, was trading at around $42
a barrel on Tuesday.
2. The American benchmark was at around $42 a barrel
Why has the price of oil been dropping so fast? Why now?
28
Some think it will be years before oil returns to $90 or $100 a
barrel, a price that was pretty much the norm over the last decade.
around $1.76 a gallon, roughly down about 43 cents from the same time a
year ago — is also disproportionately helping lower-income groups, because
fuel costs eat up a larger share of their more limited earnings.
Households that use heating oil to warm their homes are also seeing savings.
Who loses?
This a complicated question, but it boils down to the simple economics of
supply and demand.
United States domestic production has nearly doubled over the last several
years, pushing out oil imports that need to find another home. Saudi, Nigerian
and Algerian oil that once was sold in the United States is suddenly competing
for Asian markets, and the producers are forced to drop prices. Canadian and
Iraqi oil production and exports are rising year after year. Even the Russians,
with all their economic problems, manage to keep pumping.
There are signs, however, that production is falling because of the drop in
exploration investments. Wood MacKenzie, a consulting firm, identified 68
large oil and natural gas projects worldwide, with a combined value of $380
billion, that have been put on hold around the world since prices started
coming down, halting the production of 2.9 million barrels a day.
Meanwhile, RBC Capital Markets has calculated projects capable of producing
more than a half million barrels a day of oil were cancelled, delayed or shelved
by OPEC countries alone last year, and this year promises more of the same.
But the drop in production is not happening fast enough, especially with
output from deep waters off the Gulf of Mexico and Canada continuing to
build as new projects comes online.
On the demand side, the economies of Europe and developing countries are
weak and vehicles are becoming more energy-efficient. So demand for fuel
is lagging a bit.
Who benefits from the price drop?
Any motorist can tell you that gasoline prices have dropped. Diesel, heating
oil and natural gas prices have also fallen sharply.
The latest drop in energy prices — regular gas nationally now averages
For starters, oil-producing countries and states. Venezuela, Nigeria, Ecuador,
Brazil and Russia are just a few petrostates that are suffering economic and
perhaps even political turbulence.
The impact of Western sanctions caused Iranian production to drop by about
one million barrels a day in recent years and blocked Iran from importing the
latest Western oil field technology and equipment. With sanctions now being
lifted, the Iranian oil industry is expected to open the taps on production soon.
In the United States, there are now virtually no wells that are profitable to drill.
Chevron, Royal Dutch Shell and BP have all announced cuts to their payrolls
to save cash, and they are in far better shape than many smaller independent
oil and gas producers.
States like Alaska, North Dakota, Texas, Oklahoma and Louisiana are facing
economic challenges.
There has also been an uptick in traffic deaths as low gas prices have
translated to increased road travel. And many young Saudis have seen cushy
jobs vanish.
What happened to OPEC?
Iran, Venezuela, Ecuador and Algeria have all pressed OPEC, a cartel of oil
producers, to cut production to firm up prices. At the same time, Iraq is
actually pumping more, and Iran is expected to become a major exporter
again.
On Feb. 16, OPEC members Saudi Arabia, Venezuela and Qatar, along
with Russia, announced a plan to freeze output at current levels. The plan
represents a reversal for Saudi Arabia in particular. As oil prices have slumped,
the country, the de facto leader of OPEC, has avoided trying to manage the
market through cuts, or even talking of them. Instead, it has continued to
ramp up production, even as prices dropped sharply.
29
Nonetheless, if prices remain low for another year or longer, King Salman,
who assumed power in January 2015, may find it difficult to persuade other
OPEC members to keep steady against the financial strains. The International
Monetary Fund estimates that the revenues of Saudi Arabia and its Persian
Gulf allies will slip by $300 billion this year.
Is there a conspiracy to bring the price of
oil down?
There are a number of conspiracy theories floating around. Even some oil
executives are quietly noting that the Saudis want to hurt Russia and Iran, and
so does the United States — motivation enough for the two oil-producing
nations to force down prices. Dropping oil prices in the 1980s did help bring
down the Soviet Union, after all. But there is no evidence to support the
conspiracy theories, and Saudi Arabia and the United States rarely coordinate
smoothly. And the Obama administration is hardly in a position to coordinate
the drilling of hundreds of oil companies seeking profits and answering to
their shareholders.
When are oil prices likely to recover?
Not anytime soon. Oil production is not declining fast enough in the United
States and other countries, though that could begin to change this year. But
there are signs that supply and demand — and price — could recover
some balance by the end of 2016.
Oil markets have bounced back more than 40 percent since hitting a low of
$26.21 a barrel in New York in early February.
However, some analysts question how long the recovery can be sustained
because the global oil market remains substantially oversupplied. In the
United States, domestic stockpiles are at their highest level in more than 80
years, and are still growing.
But over the long term, demand for fuels is recovering in some countries,
and that could help crude prices recover in the next year or two.- THE NEW
YORK TIMES
30
The Leaders - Fifa corruption crisis: Key questions answered
Fifa corruption crisis:
Key questions
answered
Why does this matter?
Fifa is the body responsible for running world football. It has recently been
dogged by accusations of corruption, particularly after awarding the 2022
World Cup to the tiny but rich and influential Gulf state of Qatar. In December
2014, Fifa chose not to release its own investigation into corruption, instead
releasing an executive summary which it said exonerated the bidding
process. The report’s independent author, American lawyer Michael Garcia,
resigned in protest.
The World Cup is the most-watched sporting event in the world, larger
even than the Olympics. It generates billions of dollars in revenue from
corporate sponsors, broadcasting rights and merchandising. These arrests
and investigations cast doubt over the transparency and honesty for the
process of allocating World Cup tournaments, electing its president, and the
World football has been convulsed by the US investigation
administration of funds, including those earmarked for improving football
Fifa, football’s world governing body, has been engulfed by
facilities in some of Fifa’s poorer members.
claims of widespread corruption since summer 2015, when the
US Department of Justice indicted several top executives.
Is Sepp Blatter still Fifa president?
This is unclear. He was already suspended, so he was president in name only.
It has now claimed the careers of two of the most powerful men in football,
Speaking after the verdict was delivered; he maintained that he could only be
Fifa President Sepp Blatter and Uefa President Michel Platini, after they were
stripped of the presidency by a vote including all the member nations of Fifa.
banned for eight years from all football-related activities by Fifa’s ethics
There is no precedent for these events so the point at which he no longer has
committee. A Swiss criminal investigation into the pair is also continuing.
the title of president is unclear. However, the one thing we do know is that he
is not running the organisation.
Fifa’s president Sepp Blatter has always denied any wrongdoing - but in
September, he too was made the subject of a Swiss criminal investigation,
launched alongside the US inquiry.
Is this the end for Sepp Blatter and Michel
Platini?
Yes, unless they win the appeals they intend to lodge against the charges. Mr
The scandal erupted in May, with a raid on a luxury hotel in Zurich and
Blatter had already said he would step down as Fifa president in February but
the arrest of seven Fifa executives - conducted at the behest of the US
the eight-year ban will make this immediate.
authorities.
Michel Platini had hoped to run as a candidate to replace Mr Blatter but the
In May the US indicted 14 current and former Fifa officials and associates
ban on him will halt these ambitions. He will also have to step down as the
on charges of “rampant, systemic, and deep-rooted” corruption following a
head of the European football association (Uefa). The bans would also likely
major inquiry by the Federal Bureau of Investigation (FBI).
mean that the two men would fail Fifa ethics standards if they ever tried to
return.
And in December, 16 more officials were charged following the arrest of
two Fifa vice-presidents in at the same hotel in Zurich. Former Brazil football
federation chief Ricardo Teixeira was among those accused of being
“involved in criminal schemes involving well over $200m (£132m) in bribes
and kickbacks”.
31
What were they accused of ?
Meanwhile, the US authorities have charged 14 defendants with racketeering,
They were found guilty of breaches surrounding a £1.3m ($2m) “disloyal
wire fraud, and money laundering conspiracies. The 47-count indictment,
payment” made to Platini in 2011. The Fifa ethics committee said that pair
unveiled in a US federal court in New York, said the defendants participated
had demonstrated an “abusive execution” of their positions.
“in a 24-year scheme to enrich themselves through the corruption of
international soccer”.
They have both maintained that the payment was for work by Mr Platini as the
president’s advisor in 2002. Mr Blatter has maintained that Fifa did not have
A key figure is Charles “Chuck” Blazer, former general secretary of the
enough money to pay Mr Platini at the time, so they agreed to delay payment.
Confederation of North, Central America and Caribbean Association Football
(Concacaf), who is co-operating with US prosecutors.
What next?
Fifa is already holding a presidential election in February to replace Mr Blatter
He has said that between 2004 and 2011:
so this will continue as planned. Uefa will also have to hold elections to
• he and others on the Fifa executive committee agreed to accept bribes in
decide on a new head, but they may well wait until after Fifa has picked a
connection with the selection of South Africa as the host of the 2010 World
new president.
Cup
Both Mr Blatter and Mr Platini were already suspended and so were not
• one of his co-conspirators received a bribe in Morocco for its bid to host
running their organisations. Fifa will continue to be run by Fifa vice-president
the 1998 tournament, which was eventually awarded to France
Issa Hayatou until after elections in the new year. Uefa will also continue to
be run by its vice-president Angel Villar Llona, who is also head of Spain’s
• he and others also accepted bribes in connection with broadcast and other
football association.
rights to the Concacaf Gold Cup tournament in 1996, 1998, 2000, 2002
and 2003
Why were the officials accused?
The FBI has been investigating Fifa for the past three years. The investigation
Much attention has been focused on a $10m deal that US prosecutors say
was initially sparked by the bidding process for the Russia 2018 and Qatar
was a bribe to secure the 2010 World Cup for South Africa.
2022 World Cups, but was widened to look back at Fifa’s dealings over the
past 20 years.
An email obtained by a South African newspaper appears to show that the
then South African President, Thabo Mbeki, and Mr Blatter agreed to the
The Department of Justice’s indictment says that the corruption was planned
deal. In the email, Fifa Secretary-General Jerome Valcke wrote to a South
in the US, even if it was then carried out elsewhere. The use of US banks to
African minister asking when the transfer could be made, and saying that
transfer money appears to be key to the investigation.
both Mr Blatter and Mr Mbeki had discussed the matter previously.
There is a separate criminal investigation by the Swiss attorney general,
The South African government insists it was a legitimate payment to promote
which has named Mr Blatter as a suspect. It was evidence unearthed during
Caribbean football, but documents seen by the BBC suggest then Fifa vice-
this investigation that led to his and Mr Platini’s Fifa bans.
president Jack Warner used the payment for cash withdrawals, personal
loans and to launder money.
What is alleged?
Swiss prosecutors have accused Mr Blatter of criminal mismanagement
Michael Lauber, the Swiss attorney general, has said that he is investigating
or misappropriation over a TV rights deal and of a “disloyal payment” to
suspicious activity around Fifa’s Swiss bank accounts. His team is combing
European football chief Michel Platini.
through a “huge amount” of seized data, focusing on 53 “banking relations”
reported by the Swiss anti-money laundering framework.
32
Who are the accused?
Apart from Mr Blatter, the most senior figures accused are football
powerbrokers in North America,
Latin America and the Caribbean.
They are connected to Concacaf, the continental confederation which
operates under the Fifa umbrella and is essentially in charge of football in that
region. One of its key roles is helping to agree World Cup TV and sponsorship
deals in the US.
Jeffrey Webb is the head of Concacaf and was widely seen as being groomed
as a successor to Fifa president Sepp Blatter. He has been extradited to the
US.
His predecessor, the above-mentioned Jack Warner, has also been indicted.
Mr Webb replaced Mr Warner after he was forced to step down after an
internal Fifa fraud inquiry.
Latin American football chiefs also figure heavily in the list. There are two
former presidents of Conmebol, which represents South American football
nations: Nicolas Leoz and Eugenio Figueredo.
Switzerland is processing US extradition requests for several officials. Mr
Warner is on bail in Trinidad pending extradition to the United States. Mr Leoz
is currently under house arrest in Paraguay.
Aaron Davidson, head of a sports marketing firm’s US division, has pleaded
not guilty in a federal court in New York to charges including racketeering
conspiracy, wire fraud and money laundering, and has been released on bail.
Former Fifa Vice-President Juan Napout has also pleaded not guilty.
Four individuals - one of them Chuck Blazer - have already pleaded guilty.
33
How much money is involved?
Massive amounts.
The US indictment alleges that US and South American sports marketing
executives paid and agreed to pay “well over $150m” in bribes and other
illegal payments to obtain lucrative media and marketing rights to international
football tournaments.
That does not include other possible alleged corruption around the world.
Fifa makes nearly all its revenue from the World Cup. Last year’s tournament
cost the host country Brazil an estimated $4bn, and yet Fifa made more than
$2bn from the tournament via sponsors, the sale of broadcasting rights and
merchandising. The costs of the next two World Cups are expected to dwarf
this: Qatar 2022 is reported to be costing above $6bn.
And what next for football?
The future of the 2018 and 2022 World Cups is a major question.
The US indictments focus on historical corruption but not the forthcoming
World Cups. But the FBI - and a separate Swiss investigation - are now
looking into the allocation of those tournaments. However, it would take
overwhelming evidence to run the bidding processes again.
In practical terms, moving the 2018 Russia World Cup would be fraught with
difficulty. Very few countries have the stadiums, infrastructure or money to
host the event at such short notice. Even most English stadiums would need a
major refurbishment to meet Fifa standards. Germany offers the best option,
having hosted the 2006 World Cup.
Qatar is more vulnerable and has been dogged with controversy and
allegations of corruption ever since it was awarded the tournament. However,
it has already seen out several corruption scandals, an unprecedented move
from a summer to winter tournament, and a scandal over the treatment of
migrant workers.-BBC
34
The Leaders - Why The Best Investment In 2016 Might Be Global Real Estate
Why The Best Investment In 2016
Might Be Global Real Estate
Market consensus now has equities flat to negative in 2016. Much of it is
of 2015 brought in $625 billion of direct property investment worldwide,
due to rate hikes and an end to QE in the U.S. After that, China and oil are to
representing an 11% increase over the same period of 2014, according to
blame for everything else. It’s hard to find an equity bull except at the value
Real Capital Analytics. This year is expected to be even more.
funds. Bonds? Forget about it. Outside of a handful of emerging market local
currency debt managers, global bond funds are bracing for a drought.
“Our report suggests that…long term secure investment in core markets will
be the norm,” says John B. Friedrichsen, CFO of Colliers International. “Large
“Volatility is likely to rip through financial markets in the first half of 2016.
volumes of capital already raised will increasingly seek out opportunities in
Today’s turbulence is only the beginning,” says Nigel Green, CEO of deVere
tier-two cities and in recovering markets.”
Group, a financial advisory firm based in the U.K. “There’s a cocktail of
uncertainty, with the main ingredients including China’s economic woes,
Of the more than 600 investors surveyed, 52% said they will increase
higher interest rates in the U.S., historically low oil prices, Britain’s referendum
allocations towards real estate this year. Only 11% will decrease. Real estate
on exiting the European Union, and increasing tensions in the Middle East,”
is the one asset where investors are almost unanimously bullish. London,
he said.
Paris, New York, San Francisco, Tokyo and Sydney are the main targets for
direct cross-border real estate acquisitions over the next 12 months.
For fixed income, Christopher Wyke of Schroders in London adds his pocket
full of six pence to the table: “We are entering a period of a bond bear market
“Los Angeles and San Francisco are red hot,” says Seth Kaplowitz, an
that I think will last the next 25 years.”
attorney with Blumberg Law Group and lecturer at San Diego State University.
Kaplowitz spent over 20 years in Asian real estate, including most recently
So where’s the safe haven with a plausible return on investment this year?
as founder of Ecotech Design Build Asia, which worked on Asian properties
in cities like Hong Kong and Shanghai. He said the Chinese are still investing
Investor sentiment toward real estate is projected to remain positive, according
in California. ”In Los Angeles alone the Chinese have invested close to
to Colliers Global Investor Outlook 2016, released on Monday. Primary
$5.9 billion. These investors also participate in private money placement for
target markets will continue to draw the most interest, with moderating risk
developers. Sometimes the private lending is just easier to deal with than a
appetite, stable economic conditions, and low interest rates driving increased
bank.
investment in secondary markets. Transactional activity in the first 9 months
35
The Leaders - Why The Best Investment In 2016 Might Be Global Real Estate
” Global transactions are expected to exceed 2014 levels and will approach
properties.
pre-financial crisis levels in 2016, according to Colliers estimate. More than
half of the respondents with multi-asset real estate portfolios said they will
In Asia, Japan and Australia take a commanding share of investment
add to their holdings in the next 12 months.
capital, followed by Hong Kong, China and Singapore. A little over a third
of respondents said they will be allocated more funds to real estate there.
For some fund managers, it’s getting harder to meet return expectations,
The top cities are Tokyo, Sydney and Melbourne. Within the emerging Asian
particularly in the “overcrowded” core markets. Cities like New York and
markets, only Beijing and Shanghai top the list. Office space, residential and
London, where entire real estate projects are often built and marketed
logistics are some of the biggest targets in those markets this year.
for wealthy foreigners, are too niche and maybe getting a bit tired. Some
fund managers told Colliers that they are having a hard time meeting client
For retail investors who like this idea but don’t have a million dollars to burn
expectations in those cities.
on studio apartments on the Upper West Side, there are exchange traded
funds for this market. The three largest include State Street Bank’s SPDR
On the risk side, there is apprehension that the economic environment could
Dow Jones International Real Estate (RWX) fund; Vanguard’s Global Real
change at a moment’s notice. China and U.S. interest rates are just two issues
Estate Fund ex-USA (VNQI) and the U.S. overweighted SPDR Dow Jones
resonating with investors.
Wilshire Real Estate (RWO) fund. They sort of track one another with the
exception of RWO, which has the U.S. to thank for its alpha. Over the last
Ironically, despite high risks in the world economy, real estate buyers are
12 months, all three have underperformed the Dow Jones Real Estate Titans
taking on increased debt to fund purchases. It’s a “when all else fails”
30 Index.
approach that keeps real estate hot in most world class cities. Fixed income
is largely failing. Rental and lease rates might be as good as it gets.
Colliers said that the equity phase of the cycle is giving way to a debt phase
for project finance. This is particularly true in Europe, where interest rates
are likely to stay low for longer and further QE rounds from the European
Central Bank are expected to make real estate the new fixed income play
for Western Europe.
Big Cities, Preferred Properties
Within the Americas, the U.S. is the only place to be with 94% saying they will
increase their investments here this year. Only 5% said they will be investing
more in Mexico and even less said so about Brazil. Within the U.S., the top
three cities are San Francisco (27%), New York (24%) and Los Angeles
(22%). Logistics, such as warehousing, office space and shopping malls are
the top three candidates for increased investment this year, according to the
Colliers survey.
In Europe, the U.K. is far and away the hot spot with 63% adding to their
property portfolios there this year. London (43%) takes the cake, of course,
followed by Paris (19%) and Frankfurt (14%). Offices, shopping centers
and luxury retail are among the top three investments in continental Europe,
while U.K.-bound investors are after office space, logistics and residential
36
The Leaders - Essential Career Advice For The Freelance Economy
Essential Career Advice
For The Freelance
Economy
Like it or not, the gig economy — where jobs are done by part-timers,
Fortunately, as more organizations are competing for the skilled freelance talent,
freelancers, temps and contractors— is here to stay. And it is growing.
they’re finding ways to make their work environments more accommodating
and financially rewarding for the growing contingent workforce. In fact, the
That’s one of the key takeaways from a new global survey by Deloitte: Global
cover story in this month’s Workspan, the WorldatWork association magazine
Human Capital Trends 2016. It found that 42% of U.S. executives expect
(The Contingent Workforce is Coming!) sounds a warning bell for employers.
to use more contingent workers (the technical term for giggers) in the next
“Workplace flexibility isn’t about accommodating your employees, it’s a do-
three to five years. The report also said that one in three workers in America
or-die competitive strategy as more and more workers consider themselves
are freelancers and that the number is expected to grow to 40% by 2020.
free agents,” the article said.
Given the trend towards hiring gig workers, it’s important to know how to
Of course, just as employers need to adapt to changing times, so do you.
make yourself the strongest candidate the next time you seek employment
Even if you’re presently employed in a full-time job, it’s important to recognize
as one and I’ll tell you how momentarily.
that at some point, your situation might change.
Why Gig Is Big
4 Steps to Be More Marketable
Fortunately, there are steps you can take now to make yourself more
What’s making gig so big?
marketable when you need (or want) to look for a more flexible gig down the
road. Here are four suggestions.
The global marketplace, advances in technology and the rapid pace of
change in business are all causing companies and nonprofits to rethink the
1. Take advantage of employer-sponsored training.
way they’re structured. To thrive in the new economy, organizations must be
The more updated and relevant your skills, the more marketable and attractive
able to expand, contract and pivot quickly — and often.
you’ll be as a freelancer.
Another factor driving the demand for flexibility is the changing demographics
While few companies still provide lucrative tuition reimbursement plans, many
of the workplace: specifically more Millennials and older workers. Many
offer other types of training opportunities, including workshops, webinars
Millennials want jobs that let them work when, and how much, they wish
and off-site training retreats. Some may also sponsor you to attend industry
and many boomers hope to find more flexibility as they downshift into semi-
conferences and training sessions, an excellent way to power-up your skills
retirement.
and expand your network.
Once the domain of lower-level workers, contingent workers are now found
in every field imaginable. It is no longer unusual for a company to hire highly
2. Polish your teamwork and project management
skills.
skilled knowledge workers — scientists, writers, engineers, etc. — on a
The Deloitte report emphasized that companies are rapidly moving away
project or freelance basis.
from being top-down hierarchical organizations and towards a team-based
orientation. The report said “in some ways, businesses are becoming more
37
The Leaders - Essential Career Advice For The Freelance Economy
like Hollywood movie production teams and less like traditional corporations,
” Those could be your friends, relatives, former coworkers and social media
with people coming together to tackle projects, then disbanding and moving
connections, Hannon notes. That’s good advice for grabbing all the gigs you
on to new assignments once the project is complete.”
want, which you just might need to do.
As a result, firms are increasingly interested in hiring freelancers who can
demonstrate that they have strong teamwork and project management skills.
So whenever possible, volunteer at your current job to take on projects that
will help strengthen your resumé in these two key skill areas.
3. Monitor the freelance job boards.
A growing number of online job boards specialize in freelance, project and
contract work. As I explained in this Next Avenue post, some cover a wide
range of industries; others are industry-specific.
By keeping an eye on the listings, you’ll get a sense of the skills and job
experiences that are most in-demand in the free agent marketplace. Then,
you can work on getting the ones you need.
4. Increase your in-person networking activities.
Most independent contractors find their best assignments through networking.
So while you’re still employed, take advantage of the opportunity to fortify and
expand your network of contacts by ramping up your networking activities.
Even if you don’t expect to make a move anytime soon, it can’t hurt to
heed my Next Avenue colleague’s Kerry Hannon’s advice. “These days,”
says Hannon, author of Getting the Job You Want After 50 for Dummies,
“employers tend to hire people they know, or people who know people they
know. So, reach out to at least one person every day and ask for help and
advice as well as names of people he or she knows who might be able to
lend a hand.
38
The Leaders - Forbes’ billionaire’s list: The world’s richest people 2016
Forbes’ billionaire’s list: The
world’s richest people 2016
Volatile stock markets, cratering oil prices and a stronger dollar led to a
Facebook’s Mark Zuckerberg had the best year of all billionaires. The
dynamic reshuffling of wealth around the globe and a drop in 10-figure
31-year-old added $11.2 billion to his fortune. He and Amazon’s Jeff Bezos
fortunes for the first time since 2009. For our 30th annual guide to the
both make their first appearance in the top 10 of Forbes’ annual ranking of
world’s richest, we found 1,810 billionaires, down from a record 1,826 a
the world’s wealthiest.
year ago.
Among the most notable newcomers are Cameron Mackintosh, the first
Their aggregate net worth was $6.48 trillion, $570 billion less than last year.
theater producer to make the billionaire ranks; WeWork’s Adam Neumann
It was also the first time since 2010 that the average net worth of a billionaire
and Miguel McKelvey; and Pinterest’s Ben Silbermann and Evan Sharp.
dropped – it is now $3.6 billion, $300 million less than last year.
Neumann, Silbermann and Sharp are three of a record 66 billionaires
under the age of 40. The youngest billionaire in the world is a 19-year-old
Behind these figures is a story of huge upheaval: 221 people fell off the list,
Norwegian heiress, Alexandra Andresen, who has a 42% stake in her family’s
while 198 newcomers joined the ranks; another 29 people from 2015 died,
business.
while 29 who’d previously fallen off climbed back on.
The reshuffling starts at the top. Only two people in the top 20 managed to
hold onto their ranks. Bill Gates remains the richest person in the world with
a net worth of $75 billion, despite being $4.2 billion poorer than a year ago.
He has been No. 1 one for three years in a row and topped the list 17 out of
22 years. (In the 30 years Forbes has tracked global wealth, only five people
have held the title of richest person on the planet; three of those five still rank
among the four richest in the world.)
39
The Leaders - The rise of Africa’s super-rich
The rise of
Africa’s super-rich
The millionaires’ club is growing in Africa.
At the end of 2014 there were 169,000 millionaires in the continent -- a
number expected to rise by 53% over the next 10 years, according to the
Knight Frank Wealth Report 2015.
In addition, the total wealth held by Ultra High Net Worth Individuals, or
UHNWIs - those with a net worth of at least $30 million - was $200 billion.
Wealth advisers expect their UHNWIs in Africa to spend more on luxury
goods than the previous year as a result.
Johannesburg, South Africa – The commercial capital of South
Africa has far more millionaires than any other African city. With
298 people with a net worth over $30 million, it’s the city with the
most ultra-rich individuals in Africa.
But it’s not just the super-wealthy with money to burn.
Sections of Africa’s rising middle class are increasingly finding themselves
with greater spending power -- although debate remains about how to define
Africa’s middle class and whether it is resilient as middle classes elsewhere
in the world.
‘Bling-fuelled’ spending patterns
Luxury brands such as Italian menswear label Ermenegildo Zegna have been
investing heavily in Africa over recent years.
“Despite the numerous challenges to overcome in the region, other luxury
brands are certain to follow the likes of Zegna, Hugo Boss and Porsche in
opening new outlets in the Sub-Saharan Africa region,” says Fflur Roberts,
Head of Luxury Goods at Euromonitor International.
“Prada, for example, has already confirmed plans to open in Angola.”
Roberts believes the rising aspirational classes on the continent are key
customers for these new designer stores.
“There has been a lot of enthusiasm about a burgeoning middle class with
a rising disposable income in the youthful and populous continent of Africa,”
Roberts continues.
40
Cairo, Egypt – Egypt’s capital has the second highest number of
high net-worth individuals -- 150. However, that’s still only half that
of the city which claims the top spot on the list.
“As often seen in developing markets, luxury brands are used as a symbol of
status and wealth, creating demand for designer labels and heavily logoed
products.
“This bling-fuelled consumption culture is being driven by a young population,
urbanization and a growing middle class.
“As aspirational consumers place a premium on appearance, retailers have
responded to this by introducing credit schemes enabling consumers to
purchase products they otherwise could not afford.”
Brands face challenges
Cape Town, South Africa – The number of African individuals with
$30 million in assets is set to more than double over the next
decade. Cape Town has long been one of the continent’s most
affluent cities, and has 115 ultra-high-net-worth individuals.
Despite this huge growth in wealth on the continent, luxury brands are
advised to do their research before rushing in and opening stores.
The gap between the rich and the poor in Africa often makes it difficult for
brands to expand.
“Adding to the problem of market segregation is the challenge of a poor retail
infrastructure, with supermarkets and shopping malls present only in large
urban areas,” says Roberts.
“In order to succeed, brands will need to overcome these challenges through
the careful research of suppliers, local partners, end consumers and the
business environment.”
“The African middle class is growing but their purchasing power is still
relatively low in international terms. “The African Development Bank loosely
defines the middle class as those spending between US$2 and US$20 a
day in PPP terms.
“This level of per capita daily consumption is low in comparison to many
consumer markets in other parts of the world.”
Nairobi, Kenya – Single malt whiskey is a popular luxury alternative
to beer in Kenya, a country whose economy has grown rapidly in
recent years. The capital Nairobi has 69 UHNWIs.
41
South Africa as a gateway
Despite these challenges, South Africa is tipped as “the gateway to the
continents luxury market” by Euromonitor.
This is largely due to its well-established luxury market, good transport and
supplier links and high quality shopping centers.
Kenyan luxury blogger and luxury consultant on Africa Maryanne Maina
defines further areas of growth within the luxury sector.
She says we could see “the creation of concept stores to house art, luxury
and premium brands. Ignored opportunities by luxury brands include the
African wedding market and wedding and honeymoon destinations.”
Roberts predicts high-end companies will start to change the types of
Dar Es Salaam, Tanzania – The rise of the urban middle class is
encouraging modern retail development in many of the continent’s
major cities. Tanzania’s trade center and economic capital Dar Es
Salaam has 36 super-rich individuals.
products they offer.
“Luxury goods companies, formerly aiming exclusively at the rich, can start
changing some product offerings to cater for the continent’s expanding
middle class.”
“Although they will also need to adapt their products to meet the taste, needs
and budgets of the local middle class, the fact that the African middle class
has been so far overlooked and underserved means a relatively empty
marketplace with a very receptive audience.”
Addis Ababa, Ethiopia – Real estate giant Knight Frank ranked
Ethiopia’s capital as one of its Global Cities of the future in its 2015
Wealth Report. The city is in eighth place, hosting 21 UHNWIs.
42
The Leaders - Apple announces four-inch iPhone SE and smaller iPad Pro
Apple announces four-inch iPhone SE
and smaller iPad Pro
Apple CEO Tim Cook took the stage at Apple’s Cupertino campus to introduce a smaller, four-inch version of the iPhone, called the iPhone SE.
The key marketing words for Apple products have usually been thinner, faster, bigger. IPhones have grown up over the past nine years, going from the original
3.5-inch display to the iPhone 6S Plus’ 5.5-inch screen. Apple went in the opposite direction and announced a new iPhone that’s actually smaller.
Cook also introduced a new iPad Pro, new Watch bands and some software updates. And he kicked off the event by previewing Apple’s court battle with the
FBI on Tuesday over iPhone encryption.
The 4-inch iPhone SE
New 9.7-inch iPad Pro
The big announcement of the day was the smaller iPhone SE -- a 4-inch
Apple’s other big hardware news is that it took the iPad Pro and make it
iPhone with updated internals.
smaller. Also called the iPad Pro, the new 9.7-inch version includes many of
the same powerful features as the larger 12.9-inch Pro model.
It looks like the iPhone 5S, Apple’s last 4-inch phone released in 2014, but
has the same processor and graphics performance as the iPhone 6S. Inside
Inside is the same A9x chip. The screen is less reflective but brighter and has
is Apple’s A9 chip, which doubles the speed of the iPhone 5S. It can use
more color saturation, for all those pros using it as a primary work device. It
Hey Siri, the hands-free voice assistant, has a 12MP camera, and shoots 4K
has a true tone display that measures the color temperature of ambient light
video. There is an NFC chip inside so the phone can work with Apple Pay.
with new light sensors and adjusts the screen accordingly.
The smaller iPhone is an attempt to appeal to fans of more pocketable
The smaller iPad Pro works with the Apple Pencil stylus and new line of snap
devices. Last year, Apple sold 30 million phones that were 4-inches and
on keyboards the company introduced in with the original iPad Pro. People
smaller. A chunk of Apple customers have resisted upgrading to the recent
really like using the cameras on their tablets, for some reason, so the new
4.7-inch and 5.5-inch smartphones. According to Mixpanel, a third of iPhone
iPad Pro has a 12-megapixel camera and a LED back-facing flash.
owners are still using a device with a 4-inch screen or smaller.
The tablet starts at $599 for the 32 GB Wi-Fi version and $749 for the 129
The 16 GB iPhone SE starts at $399 but will be free with a two-year contract
GB model. In a first, Apple is offering a new larger 256 GB option that starts
or $17 a month on an installment plan. The company will start taking orders
at $899. It comes in silver, gold, space gray and rose gold.
for the phone on March 24, and it will be available on March 31.
43
The Leaders - Apple announces four-inch iPhone SE and smaller iPad Pro
patients taking the proper steps after a major surgery. The first application
is a partnership with major universities and medical centers for monitoring
Parkinson’s.
Encryption
Before the iPhone SE and Watch announcement, Cook opened with what he
admitted is “on everybody’s mind”: encryption.
“We built the iPhone for you our customers and we know that it is a deeply
Apple Watch gets cheaper, more colourful
Apple (AAPL, Tech30) really wants people to try out the Apple Watch. Tim
Cook announced a new line of straps for the wearable, including all new
woven nylon bands, a space black Milanese Loop, and additional sport and
leather bands in a variety of colors.
personal device,” said Cook. “For many of us the iPhone is an extension of
ourselves.”
“We need to decide as a nation how much power the government should
have over our data and over our privacy,” said Cook. “We will not shrink from
this responsibility.”
Pretty watch straps on their own might not be enough to lure in new
customers, so Apple dropped the price of the watch. It now starts at $299.
Why go small? Apple says it sold 30 million four-inch iPhones in 2015, so
there’s clearly demand for a smaller, cheaper iPhone.
Apple likes the environment
Apple brought out Lisa Jackson, its vice president of environment, to talk
about a new, special Apple employee, Liam.
Liam is a custom robot that takes old iPhones apart to recycle them. While it
Software Updates
disassembles them, it detects what components can be reused and recycled.
The latest version of Apple mobile operating system, iOS 9.3, is available
It identifies materials in a device like gold, silver and tungsten. In the future,
starting today. Key new features including Night Shift, which adjusts the
you might see a Liam robot doing its thing inside an Apple store.
screen for late night reading for better sleep, and finger print lock for top
secret documents in the Notes app.
Apple uses 100% renewable power in 25 countries including the US and
China. In China, Apple even built a solar farm to accommodate adorable
There is a small update for the Apple TV OS that adds folders for apps and
Siri voice dictation.
It also announced a new health-related jSDK called CareKit. It’s built for
personal care apps. For example, a hospital might make an app to help
44
grazing yaks.
The Leaders - 10 million Indians use his app
Teke, CEO of Mobond and inventor of m-Indicator app.
10 million Indians use his app
Sachin Teke is a behind-the-scenes kind of guy. That’s why most Indians
probably don’t know that he created one of the country’s handiest apps.
But mention the name “m-Indicator” to a Mumbai resident and chances are
that they’ll immediately pull it up on their smart phone.
Teke, a native of Mumbai, launched the transportation app m-Indicator in
2010. It was a direct product of his frustration with Mumbai’s public train
system.
“I was traveling two-and-a-half hours every day to my job,” said Teke, 31.
“The trains are very crowded. Sometimes I would leave the office at 10 p.m.
just to avoid the evening rush.”
Besides the crush of people -- some 7.5 million people ride Mumbai’s
suburban trains daily -- Teke was tormented by occasional delays and service
changes.
The IT engineer had enough. “I had to make my journey more comfortable
for myself,” he said.
While working as an app developer for a software firm, Teke made m-Indicator
his side project.
He designed the app’s architecture, wrote the code himself, and enlisted
family, friends and volunteers to enter train timetables for the 232 trains
that make 3,000 daily trips through 108 stations in the city’s vast railway
network.
“We had a total of 84,000 timetable entries,” said Teke. The process took a
few months. He launched his startup Mobound on May 3, 2010, the same
day he debuted the free app and resigned from his job.
Teke said m-Indicator provides accurate, real-time information for Mumbai
train schedules, including arrival times, route changes and delays.
Almost all of this information is collected and verified daily by his team of
eight employees.
“Train platforms in Mumbai have electronic boards with some of that
information, but it’s not always accurate,” he said.
45
The Leaders - 10 million Indians use his app
Today, M-Indicator has 10 million subscribers and generates $1 million
The app ranks No. 2 in the India travel apps category on Google Play, the
in annual revenue (mostly from Google (GOOGL, Tech30) Adwords) for
app store for android apps. (Teke said 95% of m-indicator’s subscribers use
Mobound.
android phones.)
M-Indicator’s success didn’t happen quickly. One reason was that Teke was
Teke bootstrapped his startup and hasn’t taken any outside funding. Now he’s
spreading awareness about the app organically, by word of mouth.
hoping to raise $8 million to expand the app to other Indian cities.”We want to
do this quickly for Delhi, Pune, Ahmedabad, Kolkata and Bangaluru,” he said.
Teke would open the app on his phone while riding the train. A few curious
passengers would ask him about it and he’d implore them to download it.
Six months later, this method has gotten him only 2,500 users. “I was very
worried. I had left my job for this app,” said Teke.
Realizing he had to do something radical to attract more users, he added a
“share” function so users could tell their network about m-Indicator.
It worked.
By the end of the first year, the app had 500,000 subscribers. Even
Mumbai’s railway authority took note of its growing popularity. Teke said his
team is notified by local authorities anytime major train schedule changes
are in the works.
The app has since evolved into a one-stop shop for Mumbai’s train, bus,
metro and even ferry schedules. Some add-ons: It helps locate nearby picnic
spots, hotels, hospitals and movie theaters.
“We also post job listing and apartment rentals,” said Teke.
A new Train Chat feature lets users directly communicate with other users.
“We’re also planning a ride-sharing feature,” he said.
46
The Leaders - Malaysia’s total trade up in January 2016
Malaysia’s
total trade up
in January
2016
MITI said the export performance in January 2016 was affected by a
contraction in exports of mining goods due mainly to lower exports of liquefied
natural gas and crude petroleum-Bernama Photo
KUALA LUMPUR: Malaysia’s total trade rose marginally to RM118.31 billion
This was the 219th consecutive month of trade surplus recorded since
in January 2016 from RM118.25 billion recorded in the same month in
November 1997.
2015, supported by exports of manufactured goods.
On a sectoral basis, MITI said the export performance in January 2016 was
The International Trade and Industry Ministry (MITI) in a statement said the
affected by a contraction in exports of mining goods which declined by 40.9
higher trade numbers serve to underline Malaysia’s resilience despite the
per cent due mainly to lower exports of liquefied natural gas and crude
challenging global economic environment.
petroleum.
According to Bernama, exports of manufactured goods for January 2016
This was partly cushioned by higher exports of both manufactured and
grew by RM1.95 billion to RM50.59 billion, accounting for 81.8 per cent of
agricultural goods which increased by 4.0 per cent and 5.7 per cent,
Malaysias total exports.
respectively.
The increase was supported mainly by higher exports of machinery,
Agricultural goods accounted for 8.5 per cent of Malaysias total exports in
equipment and parts by RM588.7 million, electrical and electronic products
January 2016 while mining goods contributed 9.1 per cent.
(up RM566 million), manufactures of metal (up RM496 million) as well as
optical and scientific equipment (up RM407.1 million).
Higher trade was recorded with ASEAN which grew by RM1.6 billion, China
(up RM827.2 million), the United States of America (up RM727 million),
India (up RM600 million), Germany (up RM353.1 million), Switzerland (up
RM350.8 million) and Turkey (up RM317.9 million).
A positive trade balance of RM5.39 billion was recorded in January 2016,
despite overall exports decreasing by 2.8 per cent to RM61.85 billion while
imports expanded by 3.3 per cent to RM56.46 billion.
47
The Leaders - Oscar 2016: Fashion review by Malaysia’s fashion fraternity
Fashion review
Oscars 2016
by Malaysia’s fashion fraternity
KUALA LUMPUR: The 88th Academy Awards show was one of the
And talking about ball gowns, Alia Bastamam, the designer who understands
unforgettable ones with great performances especially by Lady Gaga, Dave
the contours and the charm of women’s physique like no other, dubbed
Grohl and the host, Chris Rock, who sent laughter upon laughter in the grand
as one of the ‘tastemakers’ of Asia, was not the least impressed with the
Dolby Theatre with his non-stop #OscarSoWhite not-so-subtle sarcasm and
abundance of ball gowns sweeping the red carpet. But Alia personally feels
racist innuendo.
that the ladies in the simpler silhouettes and fresh looks reigned supreme
this year.
However, personally, it is not so with the Oscars fashion this year. The Oscars
fashion is something and everything one has seen before. Fair to say, it
For a young designer whose creations concocts minimalism, gender fluid and
is after all the 88th time that the red carpet has been rolled in and out,
norm core silhouettes into a series of wearability, Zakwan Anuar observed
showcasing a wide array of style and fashion, all lined up to outshine – so
that the trend was in favour of thigh-high slits dresses – as seen on Rachel
chances of seeing something new can be slim.
McAdams’s emerald green, halter-neck, open-back August Getty Atelier
design and Rooney Mara’s ivory Givenchy Haute Couture gown.
Well, that is just a take from a fashion observer slash writer like this writer
but having said that, we have gathered some of Malaysia’s fellow members
of the fashion fraternity and here is what they have to say on the last Oscars
fashion and style.
The trend
Gold and bold fashion connoisseur, Zaihani Zain, agrees that the Oscars
fashion has not changed since its first inception 88 years ago. According to
this nation’s most sought after stylist and consultant, the trend for the Oscars
red carpet has not evolved since yesteryears – cinched waist, flare skirts,
strapless gowns and off-shoulder dresses.
But for young and influenced shoemaker and shoe marketeer, Xavier Mah,
founder of XALF
MALAYSIA’S FASHION POLICE: (from left) Zaihani Zain, Alia Bastamam,
Zakwan Anuar and Xavier Mah.
Star gazing
Zaihani is well-known for her classy taste in fashion; however, it was surprising
Design, he was rather surprised that the styling of most celebrities was
that she was looking out for Lady Gaga. In fact, she was on the lookout for
“unpretentious yet elegant”, understated glamour with dark hues except for
Lady Gaga since the past six months, when Gaga had appeared to have
a few such as Oscars winner, Alicia Vikander’s yellow and silver ball gown by
gone through a transformation – from radically raunchy style to really classy
Louis Vuitton.
and chic.
48
The Leaders - Oscar 2016: Fashion review by Malaysia’s fashion fraternity
Xavier takes star gazing as an excitement. Seeing the attire and style of past
years’ winners and observing their efforts to outdo themselves each year
sends him all enthused. This year it was Julianne Moore, and for Xavier,
Moore never fails to disappoint.
Alia is always on the lookout for ‘Miss Klutz’ Jennifer Lawrence who is
perpetually resplendent on the red carpet. However, this time, Alia was again
‘unimpressed’ with the superstar’s below average look.
“Perhaps, because it isn’t Raf Simons’ design for Dior anymore?” Alia
wondered.
As for Zakwan, he’s always on the lookout for Cate Blanchette. Why?
BEST DRESSED: (from left): Lady Gaga in Brandon Maxwell, Brie Larson
in Gucci, Charlize Theron in Dior Couture and Naomi Watts in Armani Prive’
Tacky stars
“She’s extraordinary. That’s the reason why.”
Shining stars
Whilst Zaihani was amazed by Lady Gaga’s transformation, she was also
shocked by Heidi Klum’s tacky choice on the red carpet.
Zaihani voted for Lady Gaga as her shiniest star on the Oscars red carpet.
“What has happened to her? What hit her? She has suddenly lost her fashion
Zaihani added that the Poker Face singer’s transformation is on point – from
sense, very un-European. What has gotten into her stylist? Or is she now
meat dress to that stellar white jumpsuit all pure in white strapless jumpsuit
without one?” Zaihani wondered.
and over skirt by Brandon Maxwell complemented with wavy Marilyn-style
long blonde bob. Gaga topped her fabulousness with emerald cut earrings
Former Mrs Seal opted for an OTT (over-the-top) frilly lavender Marchesa
that were said to worth US$8 million with her heart-shaped engagement ring.
gown with sexy cut-out which definitely wasn’t the best look for this
supermodel.
“What an amazing transformation!” exclaimed Zaihani.
Alia agreed with Zaihani and she added Kerry Washington in her list of worst
Both Xavier and Zakwan were fascinated by Oscars’ Lead Actress winner,
dressed Oscars star. Alia said both made the wrong choice – Washington and
Brie Larson. Xavier feels that Larson’s charisma matched her exquisite blue
Klum should have gone with subtler choices if they really wanted to try a look
custom-made gown by Gucci. And Zakwan was just stunned by her beauty
out of their comfort zone.
in that Gucci.
Zakwan and Xavier also shared similar views. Like Alia, they both feel that
“Definitely a dress that is Oscar-worthy,” said Xavier.
Jennifer Lawrence’s black lace Dior dress was less than mediocre. Though
Xavier is reluctant to pin-point his pick for worst dressed, nonetheless he
Although Alia was unimpressed with the overflow of ball gowns on the red
said, “Jennifer Lawrence should have known better not to wear a dark, half
carpet, however, she found it hard to choose between Charlize Theron’s killer
transparent gown that doesn’t look good together with her too blonde hair.”
red dress by Dior Couture, Brie Larson’s blue Gucci dress or Naomi Watts’s
rock glamour sequinned Armani Prive’.
“Their dresses, hair, make-up and accessories were all well styled and
complemented each of their own styles and attitudes very well,” Alia added.
49
The Leaders - Boom: A plane faster than Concorde with fares a quarter of the price?
Boom: A plane faster than
Concorde with fares a quarter of
the price?
Boom airplane concept – If realized, the Boom concept plane could fly New
York to London in 3.4 hours or Los Angeles to Sydney in six.
Virgin options 10 planes
It’s certainly piqued British entrepreneur Richard Branson’s interest: On
Wednesday his Virgin Group optioned 10 planes.
A Colorado startup wants to build supersonic passenger planes faster than
Concorde but with fares a quarter of the price -- and Virgin Galactic has just
The deal, if it’s followed through, could be worth a reported $2 billion.
got on board.
Boom has also optioned 15 additional planes to an unnamed European
The Boom airplane would travel at Mach 2.2 -- more than twice the speed
carrier, the firm told TechCrunch, racking up a potential income of $5 billion.
of sound and 2.6 times faster than any other airliner -- and fly from New York
Despite the big figures, the reality of a supersonic passenger jet remains
to London in 3.4 hours.
small.
That’s San Francisco to Tokyo in 4.7 hours or Los Angeles to Sydney in six.
Denver-based Boom is still working on a third-scale prototype that isn’t slated
That transatlantic trip cuts the standard seven-hour journey by more than half.
to fly until 2017.
With a round-trip price tag of $5,000 it’s not exactly “affordable” travel, but
for the world’s business elite, it’s a steal.
CEO and founder Blake Scholl recently told Fortune he couldn’t say when
full-size planes would be ready for commercial flights.
So right now it’s just one of many new supersonic and hypersonic plane
concepts promising shorter and shorter flight times, with none yet to see a
runway.
50
The Leaders -Boom: A plane faster than Concorde with fares a quarter of the price?
Come fly with me? Boom at London’s Heathrow Airport.
How will they do it?
Team has worked on 30 aircraft
So how does Boom plan to do it?
Former Amazon exec Scholl, 35, has recruited ex-employees of NASA,
Boeing and Lockheed, while U.S. astronaut Mark Kelly is an adviser.
And how will it avoid the pitfalls encountered by its glamorous, doomed
predecessor Concorde?
A Virgin Group spokeswoman confirmed to the Guardian that Virgin Galactic’s
space division, The Space Company, “will provide engineering, design and
Modern aerodynamics, carbon fiber composites, the latest engine technology
manufacturing services, flight tests and operations,”
and a smarter business strategy, it says.
“Concorde was just too expensive to fly, and to fill 100 seats at $20,000
To reduce weight, the plane will be made of a carbon-fiber composite instead
each,” Scholl told the Guardian.
of aluminum.
“You have to bring the ticket price down, and make the aeroplane the right
Seats will be similar to standard domestic first-class -- so no fancy laydown
size so you can fill the seats.”
beds or hefty fripperies.
There’ll be just 40 of those seats too, making it a lot easier to fill than the
100-seater Concorde -- a strategy, says Boom, that cost Concorde dear.
They’ll be split into two single-seat rows, so everyone has an aisle seat AND
a window seat -- and no turf wars over armrest space.
Then there’s the view from the windows: Boom plans to cut flight-time by
flying at 60,000 feet, meaning passengers will be able to see the curvature
of the Earth.
51
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Untitled - The Leaders Magazine

Transcription

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