In China, Wal-Mart presses suppliers on labor, environmental standards

Workers at this soap plant in China are paying more attention to how the soap is packaged so that the packaging is more environmentally friendly, including a switch away from styrofoam. The reason isn't entirely altruistic -- it's because Wal-Mart insists on it. The giant retailer -- which if it was a country would be China's fifth largest export market -- is insisting that all its suppliers, including ones in China, clean up on environmental and labor practices in order to keep Wal-Mart's business. It's a great example of companies affecting social change when governments are unable -- or in the case of the United States, unwilling -- to do so.


In China, Wal-Mart presses suppliers on labor, environmental standards - washingtonpost.com

China’s Industrial Heart Facing Acute Shortage of Factory Workers

These people aren't political protesters or bored former students protesting their grad school grades (hi to the Academic Fraud lady on Brown Street!). Instead, they're managers from factories in Guangzhou advertising labor positions to keep their factories running. Apparently so many workers have not returned from Chinese New Year yet that factories are running behind capacity and white-collar managers are being asked to work on the factory floor. Most factories are now paying more than the minimum wage, which starts at $120 per month in China, to attract workers.


China’s Industrial Heart Facing Acute Shortage of Factory Workers - NYTimes.com

Hedge Funds Try 'Career Trade' Against Euro - WSJ.com

If you've been thinking about going to Europe you may want to wait just a few more weeks if you can. The Euro, which has been as high as 1.50 against the dollar in the last year, is currently trading at 1.35. There is now talk about the Euro achieving parity with the US Dollar, something absolutely no one could have predicted. Part of the reason for the movement is the role of currency traders, who are looking at the battering the Euro is taking as an opportunity to make lots and lots of money. Good for tourists, good for European exporters (Airbus and French wine), probably bad for European carmakers who locked in hedges at a stronger rate, good for European companies that can take advantage of the low rates to lock in future hedges (no one expects the dollar to become stronger than the Euro), and bad for European companies buying oil priced in US dollars. Isn't currency fun?

Hedge Funds Try 'Career Trade' Against Euro - WSJ.com

Bloom Energy Servers - Good Enough to be Real?

When I was a kid I used to dream about flux capacitors and warp drives. The Bloom Energy Server, a solid fuel cell array, makes me think of those imaginary devices as well. Is it too good to be true? Here's my thoughts on it.

Italy Convicts Google Execs for Something They Knew Nothing About

Before Google bought YouTube, it ran a site called Google Video. Back in 2006 (eons ago in Internet time), some students in Italy uploaded a video of them bullying an autistic classmate. When an advocacy group contacted Google, Google immediately took the video down, identified the uploader, and turned her identity over to authorities who prosecuted her. Italian prosecutors then took the breathtakingly stupid step of charging Google executives, namely in-house lawyers, who had nothing to do with Google Video and weren't in Italy, with "allowing" the video to be uploaded. Yesterday three of those execs were convicted in criminal court and sentenced to six months in prison each (suspended under law). Do the Italians really want to make their legal system a laughing stock on the world stage like this?

DailyTech - Italy Convicts Three Google Execs for Violating Privacy Laws, Ruling Could Stifle Web Content

Asia Roaring Out of Recession

Europe remains in a "funk," the U.S. looks uncertain, and Asia is roaring back with double digit growth. In the meantime, consumers in emerging markets combined spent more on consumer goods than U.S. consumers did. It all adds up to a very different global economic picture than 20 years ago. 20 years ago, the U.S. consumer was king, and all the world's exporters paid the most attention to the U.S. which gave Americans unprecedented power to dictate consumer tastes in fashion and electronics. The tide has shifted away from America, and along with that shift, the U.S. influence on a global scale will wane as well.

Spain Stresses the Euro

Could Spain leave the Euro zone? That's certainly the subtle implication in this morning's Wall Street Journal. A combination of factors is stressing Spain's economy to the breaking point, and being in the Euro zone means the government's ability to respond is very limited. A brief recap: unemployment is at 20%. A housing bubble has burst, leaving many homeowners feeling poor and upside down on mortgages. The GDP contracted nearly 4% in 2009 and is expected to shrink again this year. The country is in its worst recession in 50 years. As a result, holders of Spanish debt are demanding higher interest rates, requiring the government to go even deeper into debt. Unlike the current crisis in Greece, though, Spain is a lot bigger -- it's the fourth largest economy in the Euro-zone, and a debt crisis in Spain would be a lot more disruptive than what we've seen so far from Greece.

Spain has three options: do nothing and live with years of economic stagnation, launch an "austerity program" to cut back on government spending including generous government benefits for the unemployed, or leave the Euro zone. Leaving the Euro would immediately allow the government to devalue its currency, allowing exports to become cheaper and the economy to grow again. While that seems like a dramatic step, the first two options are politically unappealing. In either of the first two options, richer European countries may have to step in with a bailout -- to the tune of more than 250 Billion Euros -- to maintain confidence in the Euro.

Bottom line: anyone or any company contemplating doing business in Spain is going to have to look very closely at any proposition, because the economy seems to be headed for some really rough waters and no one knows when things will become calm again.


The Euro's Final Battleground: Spain - WSJ.com

Hummer Bites the Dust

Hummer is dead. During GM's bankruptcy reorganization, the company decided to ditch slow-performing brands such as Saturn, Pontiac, Saab, and Hummer. Smaller companies interested in bidding for those brands all fell through on their commitments except Saab. Hummer's buyer, an unknown Chinese company, offered about $100 million for the brand but yesterday GM cancelled the sale after the buyer was unable to obtain approval from Beijing's central government for the acquisition. Hummer will therefore join Pontiac and Saturn this year in that brand graveyard in the sky and generations from now, people will look back and say "what was that?" when they see a picture of one.

Hummer's likely demise disappoints its SUV-loving fans - Drive On: A conversation about the cars and trucks we drive - USATODAY.com

Professor Freezes, then Smashes, Student Laptop

I've had some bad days in the classroom, but I admit I've never felt the need to do... this.

Women-only lavatory coming to a plane near you

I don't know how I feel about All Nippon Airways' plan to introduce one female-only toilet on its long-haul international flights. On the one hand, I understand the desire to avoid using a bathroom where the previous male may have had *ahem* "poor aim" and left the floor and seat all icky and gross. On the other hand, real estate on a plane is really precious and dedicating an entire toilet to at best 50% of the plane seems like a waste. It'll be interesting to see how this experiment pans out for ANA.

Women-only lavatory

Facebook Gets Slammed by Greenpeace

It's not easy being Facebook these days. There's pressure by venture capitalists to take the company public through an IPO in 2010, renewed competition from Twitter and Buzz, and lots of angry users upset at the privacy policies and connection problems. Now, the one piece of good news coming out of Facebook HQ, the opening of the "world's greenest data center" in Oregon, has been slammed by Greenpeace because it turns out the data center will be powered by coal rather than renewable energy. The company can't catch a break in this always on, always scrutinized world all companies operate in.

Asian Economies Continue to Boom

Last week Singapore and Japan both reported stronger-than-expected economic growth, and this week Thailand and Taiwan followed the same trend. Thailand's GDP grew at the quickest pace in 10 years, expanding 3.6% in the fourth quarter. On a seasonally adjusted annualized basis, the Thai economy grew 15.3%.

The pace in Taiwan was even more startling. Fourth quarter growth was 9.22%, yielding an annual growth of 18%.

U.S. companies like Huntsman and Goodyear are seeing dramatic growth in multiple Asian countries, and much slower growth in Europe and the U.S. Expect the trend to continue, with more and more companies attracted to high growth markets in lieu of smaller and slower economies.




Thailand, Taiwan Post Strong GDP Growth - WSJ.com

N-hexane Poisoning Scare At Apple Supplier In China

There's nothing like opening the box on a brand new electronic gizmo, and holding the pristine cold metal in your hands, unsoiled by human fingerprints and smelling like.... wait, what is that smell? If you've ever wondered how the factory got that screen so perfectly clean on the gizmo (well, let's call it an iPhone or iPod Touch), wonder no more. The factory has been using a chemical called n-hexane, and it's illegal.

Wintek China, which supplies the screens for the iPhone and iPod Touch from its subsidiary in Suzhou, is the target of an investigation involving the use of n-hexane rather than alcohol to clean screens. Several workers have fallen seriously ill, and one has died. Lax labor laws, no government oversight and relentless pressure to lower costs and increase quality are all contributing to continued safety violations in China. But hey -- we gotta have our clean iPod screens, right?

N-hexane Poisoning Scare At Apple Supplier In China - ChinaTechNews.com - The Technology Source for the Latest Chinese News on Internet, Computers, Digital, Science, Electronics, Law, Security

Women M.B.A.s Continue to Lag in Pay, Promotions - WSJ.com

Not a huge surprise here, but the WSJ reports that women continue to earn much less than men when both hold MBA's. A study of more than 9000 respondents graduating from 26 MBA programs between 1996 and 2007 (that's what we academics call a large sample size) found that starting from the first job, post-MBA women lag behind men. More than 60% of women described their first job as entry level (compared to 46% of men), and on average women earned $4600 less than men did on their first job.

Women M.B.A.s Continue to Lag in Pay, Promotions - WSJ.com

Slow is Good

Containerization has been one of the key drivers of globalization, making shipping of even low value items cost effective from all corners of the globe but especially from Asia. Speed used to be important in shipping containers, but Maersk, a major operator, has started to halve the top speed of some of its container ships. The result has been a 30% reduction in energy consumption, and a 30% reduction in carbon emissions as well. Expect to see more companies slow down their ships -- after all, Wal-Mart and Best Buy can always wait an extra week to receive their cheap Asian imported goods.

Data Centers Get Outsourced

There are some industries that naturally make sense when it comes to outsourcing. Data centers, the massive server farms that store and process information for Internet-based companies, is one of them. After all, what does it matter where the data center is located? A company in Washington D.C. focused on Green IT has figured out a way to reduce power costs, reduce carbon footprint, and increase profit when it comes to running data centers -- move them to Iceland. Free year-round cooling, abundant renewable energy, cheap electricity and fast connections to the U.S. and Europe -- it all makes sense.

The Mekong River

If you don't have any money to go to Vietnam, Laos or Cambodia, but you've always wanted to go, then hop on board with NPR's Michael Sullivan as he visits these countries along the Mekong River and along the way, speaks with citizens about their worries, concerns and happiness. Extraordinary photos too. Just like being there.

The smell of fear

This is a video that Microsoft recently released to convince business and IT departments that switching from Microsoft Exchange to Google Apps (including Gmail) is a BAD idea. It's really remarkable that someone at Microsoft thought it would be a good idea to attack Google --- on Youtube, a Google company. Judging by the comments on Youtube, this campaign is not going well.

Tokyo for $299?

IACE, a travel agency, is selling $299 roundtrip tickets to Tokyo from any city in the U.S. Tickets are only on sale this Saturday, February 20. With taxes, that works out to about $400. Not a bad way to hit the land of the rising sun!

2/20 One-day Outrageous Sale

A Look at the Tax Returns of the Top 400 Taxpayers - Real Time Economics - WSJ

The rich lead a life that very few of us could ever possibly imagine. Take, for example, what the IRS called the "top 400" taxpayers in the United States. Here are some interesting facts about them:

* The top 400 earned 1.59% of the nation's household income in 2007, and paid 2.05% of all individual income taxes.
* 220 of them were in the top marginal bracket.
* A taxpayer has to have income of $138.8 million to make the group.
* The group earned $137.9 billion in income, and paid $22.9 billion in federal income taxes.
* 6.5% of that income came from salaries and wages.
* 81.3% of that income came from capital gains, dividends or interest.
* The group paid an average tax rate of 16.6%.

That last number raised my eyebrows. I sometimes hear a lot of kvetching about tax rates and how unfair it is to penalize wealthier Americans. Seems to me that those 400 are doing pretty well if they're only paying 16.6%. I mean, I would LOVE to pay only 16.6%. I'm just sayin'.


A Look at the Tax Returns of the Top 400 Taxpayers - Real Time Economics - WSJ

No Soup for You!

Seinfeld's hilarious Soup Nazi created the notoriously delicious soup that New Yorkers willingly lined up and suffered abuse for, but for most of us in the real world, condensed soup in a can is the most common type of soup consumed. In fact, it's a $1 billion business in the U.S., and generates the bulk of profits for Campbell's. The problem for the company is trying to convince consumers to buy more soup, and today they are unveiling the results of a two-year biometric study into how to redesign their labels to become more appealing. Among the changes outlined in the graphic above are steam, removal of the spoon, an updated and modern white bowl, removing the brand to the bottom of the label, and putting the different varieties, color-coded, up top. Time will tell if the new label will help the company achieve the 2% annual increase it's looking for.

The Real Thing

Intellectual property protection is a big concern in Asia, where cheap knockoffs and copies of just about everything abound. This anti-counterfeiting ad comes from Thailand, where certain "genetic enhancements" are also popular. The tagline is "Use the real thing." Hilarity ensues.

Is it time for a financial transactions tax?

As part of the potential recovery of bailout funds to banks, many have suggested a financial transactions tax, perhaps 0.05% on every stock sale. The British are now considering it seriously, and Oxfam, a British nonprofit advocacy group, is lobbying furiously to get the so-called "Robin Hood tax" passed (really, is that the best name they could come up with?). The U.S. government won't go anywhere near this, but it's an intriguing idea, as the following ad demonstrates.

The Puzzler | Do you know your presidents? - KansasCity.com

Happy President's Day! How much do you know about our Presidents? For example:

As a result of an incident involving President George H.W. Bush, the Japanese came up with “bushururu,” a slang word for what happened. What does it mean?

a. Refusing to eat broccoli

b. Being impersonated by Dana Carvey

c. Joking about a woman’s big butt

d. Vomiting in public

Click the link for more questions, and the answers of course!

The Puzzler | Do you know your presidents? - KansasCity.com

My Life as H.J. Heinz: Confessions of a Real-Life Twitter Squatter - Advertising Age - Guest Columnists

This guy created a Twitter account called "HJ Heinz" and spent over two weeks twitting about how great Heinz is, posting recipes, etc. Mind you, he did this in December, barely two months ago. Eventually Heinz found out about him, and asked Twitter to change his account name, which Twitter did. How many other unregistered Twitter accounts in the names of brands are out there, ripe for the picking?



My Life as H.J. Heinz: Confessions of a Real-Life Twitter Squatter - Advertising Age - Guest Columnists

Uniqlo Parent Fast Retailing Pursues Global Deals - WSJ.com

If you've never heard of Uniqlo before, you may soon. The Japanese fashion retailer (think Japanese version of Gap) announced plans yesterday to spend up to $11 billion to acquire a strong U.S. or Europe company to become bigger than Gap or H&M. Chairman and Chief Executive of Fast Retailing Co., Uniqlo's parent company, Tadashi Yanai (pictured here and one of Japan's richest men) told the WSJ that "we could grow organically,, but it would take a long time." The solution therefore is to buy another company! "The bigger the better" he says.

The company won't necessarily bring in the Uniqlo brand. It tried several years ago in the U.S., and all closed down except the outlet in SoHo. Yanai believes Uniqlo should only expand in major urban areas more accepting to foreign brands.

So what kind of U.S.-based clothing retailer can $11 billion buy these days?

Uniqlo Parent Fast Retailing Pursues Global Deals - WSJ.com

A Vet Visits Prison S-21

Anyone who has ever visited Phnom Penh (Cambodia) and seen the former school turned prison and torture camp known as S-21, or visited the killing fields outside the city, has seen first-hand some of the remainders of the brutal Khmer Rouge regime. In this moving piece, a former U.S. soldier visits those sites, and finds himself sick, literally, over what he sees.

Did a Secretive Culture Lead to Toyota's Problems?

It seems like hardly a day goes by without more bad news for Toyota. It went from sticking floor mats to sticking gas pedals to faulty brake electronics to faulty steering components and now, today, a recall for a power steering hose in 2010 Camrys. How did a company so famous for its manufacturing processes, obsession to detail, prized for its quality and lean efficiency, stumble so badly? In a provocative Page 1 article, the Wall Street Journal suggests that the answer may lie in the secretive Japanese culture that surrounds Toyota, depriving the U.S. subsidiary of any real decision making authority and understating the problem until it was too late. The most startling part of this story is description of NHTSA officials when they found out Toyota knew about the runaway acceleration problems for almost a year before telling them -- they were "steamed."

Delay in Response Led to Rift Between Toyota and U.S. Regulators - WSJ.com

America the Miserable

Has America become the land of the miserable? In a provocative essay published in the UK, a British immigrant to the United States finds that the country has changed in measurable ways from the time he first came here in 1977. Back then, he says, Britain was a country that looked at broken things and said "what a pity, it's broken." In America, people said "it's broken, but we'll soon fix it." Has that optimism and lack of fatalism disappeared from American life? And if so, why? Read on...

America the Miserable | The Spectator

Peking Acrobats Coming to Cincinnati Next Week

Chinese acrobats have always been a fascinating and amazing thing to me. From their contortions to their balance to their mind-defying tricks, it's guaranteed entertainment. Now, you won't have to go to China to see a troop perform, as the Peking Acrobats will be at the Aronoff Center in Cincinnati next Friday night. Tickets start at just $22.

IAI Presentations Inc.

Google Ad

Amidst the Dorito-filled coffins and houses built from beer cans, Google ran this minute-long commercial during the Super Bowl last night. Reaction across the net has been hugely positive, but I have to confess being a little nonplussed. I think it's great that Google chose an international flair for its first television commercial, but aren't we supposed to hate the French?

Operators Pin High Hopes on Singapore Casinos - NYTimes.com

Singapore will soon see the opening, for the first time in its relatively short history, of casinos. The tiny city-state decided five years ago to encourage development of the casino and entertainment industry, in hopes of developing a new sector of the economy (and to convince Singaporeans who otherwise went underground or overseas to spend in taxable casinos instead). The goal is to nearly double the number of visitors to Singapore to more than 17 million a year, and to increase their annual spending to over 20 Billion USD a year. The government also anticipates over 35,000 new jobs to be created and an additional point added to GDP growth. Whether the casinos, who are heavily indebted and have busted their budgets, can make money, remains to be seen.

Operators Pin High Hopes on Singapore Casinos - NYTimes.com

While Dayton may have received around a foot of snow, the folks in D.C. are dealing with well over 24 inches of this stuff. Here's a great video showing what is was like in Columbia Heights today, where I used to live.

Tuna May be Off the Menu Soon

If you like tuna sushi, it may be time for you to enjoy it one last time. Today, the United Nations group that oversees the Convention on International Trade in Endangered Species recommended that the world should ban the fishing and export of Atlantic bluefin tuna. This follows on the heels of news that the European Union is close to banning the export of bluefin tuna as well, with France being the latest member to join in the calls for a ban, as long as there's a two-season transition for their fishing industry to adjust. Stocks of Atlantic bluefin are down 80% over the last century, so there's a lot of evidence to suggest the species has been hunted to near extinction. So go ahead, enjoy your last tuna roll, because it really may be the last one you'll enjoy.

European Companies Revitalize Plants to Save Jobs - NYTimes.com

Americans tend to view their economy as nimbler and more able to respond to external shocks than Europe's. Europe has forged a different path, preferring to pour investment into large companies so that they can provide employment for greater numbers of people. The result in this recession has been a milder job loss than the U.S.

European Companies Revitalize Plants to Save Jobs - NYTimes.com

Will T-Mobile Become Independent?

T-Mobile, the fourth largest wireless carrier in the U.S., is owned by German telecom giant Deutsche Telekom. The company has been underperforming in the U.S. for years, unable to gain any traction with consumers in spite of rock-bottom pricing and aggressively carrying phones operating Google's software. Now, Deutsche Telekom is exploring ditching the unit through an IPO. My question is, who's going to buy this?

Deutsche Telekom Weighs IPO for T-Mobile USA - WSJ.com

European Country Briefing: The Netherlands

The Benelux Committee of the European American Chamber of Commerce is hosting a business seminar and cocktail and networking reception from 3:30 pm to 5:00 pm at the Taft Museum of Art, 316 Pike Street, Cincinnati OH 45202, on Thursday, February 11, 2010. Guest speakers include Willem Schiff, Consul General of the Netherlands and Pierre van Kleef, Director of the Netherlands Foreign Investment Agency. Cost is $45 for pre-registration. Register online at www.europe-cincinnati.com

Phil Sees His Shadow

Well, February 2 is here, and there is a GREAT new machine at the Recplex that will give you a serious workout if you dare. It's also the exact midpoint between the winter solstice and the vernal equinox, which means starting winter is half over. In the U.S., this is called Groundhog Day. A groundhog in a small town in Pennyslvania is raised up for thousands to see, and if he sees his shadow, that means there's six weeks of winter left. If he doesn't see his shadow, then spring is around the corner. The metric of success is the number of days above 40 degrees between now and the vernal equinox. Alas, Phil saw his shadow, so spring is not around the corner. For those who hate winter, however, take comfort that the federal government feels the groundhog has "no predictive skill."