Aviation World at Odds Over Loans for Aircraft

This week, negotiators from the U.S., E.U., Japan and Brazil are meeting to discuss the sensitive topic of how airliner sales should be financed and how much government assistance should be permitted to state-owned airlines in buying new aircraft.  Under a current "home-market" rule, airlines based in the U.S., France, Germany, Britain and Spain cannot use government loans to help them buy aircraft.  That may change under a new agreement.

Aviation World at Odds Over Loans for Aircraft - NYTimes.com

The Simpsons

In response to allegations that The Simpsons outsources most of its animation to a company in South Korea, UK graffiti artist Banksy created this controversial opening sequence for the show last week.



YouTube - Simpsons: "- Sent using Google Toolbar"

Jili Journal - Silk Craft Fades in Village That Clothed Emperors

The Chinese village of Jili was once known throughout the world as a producer of extremely high quality silk.  Using traditional methods of sericulture, villagers produced silk for emperors and royalty everywhere.  Now, industrialization means most silk is produced in factories.  Environmental degradation means the water in Jili is no longer clean enough for sericulture.  And higher wages in booming cities elsewhere means there are no longer any young people willing to learn the craft of silkmaking in Jili.  Within a few years, the town will probably close its last silk mill, as the NY Times reports.

Jili Journal - Silk Craft Fades in Village That Clothed Emperors - NYTimes.com

Singapore Casino Experiment Pays Off

Singapore Casino Experiment Pays Off - WSJ.com

Rampant Fraud Threat to China’s Brisk Ascent

From students who cheat on college entrance exams to pilots who fake their flying credentials to dairy companies that sell poisoned infant milk to scholars who promote fake or unoriginal research, rampant fraud is beginning to emerge in China. Fang Shimin (above), exposes academic fraud on his website, New Threads. He has exposed more than 900 cases of fakery, some involving university presidents and nationally known researchers.

Rampant Fraud Threat to China’s Brisk Ascent - NYTimes.com

China's Car Economy Revs Up

China has built more than 30,000 miles of expressways in the last decade.  Auto sales were up 46% last year to 13.6 million vehicles, and there are expected to be 200 million vehicles on the road by 2020.  Business models that started in the U.S. fifty years ago to capitalize on this new car culture are taking off in China.  From McDonald's drive-in's (there are currently 105 with 100 more planned for each of the next three years) to suburban strip malls to big box retailers to hotels to tourism to parking lots to commercial radio stations, the domestic car culture is driving big investment -- and big profit potential -- for these industries.

China's Car Economy Revs Up - WSJ.com

Yum Brands Raises Profit Outlook, Helped by China

Faced with a mature market and slow growth in the U.S., Kentucky-based Yum Foods (which owns the Taco Bell, KFC and Pizza Hut brands) has looked to China to propel new profits.  That strategy is paying off, with the company reporting a 6% jump in revenue in China, compared to only 1% in the U.S.

Yum Brands Raises Profit Outlook, Helped by China - WSJ.com

In Vietnam, Politburo Tries 'Friending'

In communist Vietnam, the authoritarian government clings to tight control of the media and squashes dissent even while the economy is allowed to flourish under relatively free enterprise rules.  The rise of social media sites like Facebook and Twitter has the government worried about subversives, so the government has launched its own social media site, go.vn, with many features that would look familiar to a Facebook user.  The big difference?  Pre-registration with a person's real name and government-issued ID number, as well as government monitors who closely read what's posted online.

In Vietnam, Politburo Tries 'Friending' - WSJ.com

Volkswagen Aims At Fast Lane in U.S.

German automaker Volkswagen says it wants to overthrow Toyota to become the world's biggest carmaker.  In order to do that, it has to do something to improve its sales in the U.S., which at 2.2% market share are behind even Kia.  Now, VW says it's about to do something it's never done before -- tailor its cars for mainstream American driving tastes.

Volkswagen Aims At Fast Lane in U.S. - WSJ.com

Philippine Low Cost Carrier Jazzes Up Inflight Safety Demo to Lady Gaga

A Thai Region Where Husbands Are Imported

A Thai Region Where Husbands Are Imported - NYTimes.com

Free donuts as Krispy Kreme opens in Bangkok

Above, shoppers line up at Siam Paragon yesterday as Krispy Kreme opened its first outlet in Thailand.

Free donuts as Krispy Kreme opens in Bangkok | CNNGo.com

Medical Tourism Recovering in Thailand

Medical Tourism Recovering in Thailand - CNBC.com

Captain's Release Sparks Furor in Japan

The Chinese boat captain captured by Japan and arrested for being in territorial waters claimed by Japan has been released after China began to withhold exports of rare earth minerals to Japan late last week.  That has sparked a furor in Japan, where many Japanese citizens believe the government caved in to China.  Now, China is demanding an apology and compensation from Japan, something Japan has flatly denied it will do.  Japan in turn is seeing compensation from China for damage caused to its naval vessels during the incident.  Above, protesters rally in Hong Kong with signs saying "Japan Get Out."

Captain's Release Sparks Furor in Japan - WSJ.com

China Imposes a Steep Tariff on U.S. Poultry

A year ago, President Obama imposed a stiff tariff on tires from China in an antidumping case. Less than two days later, the Chinese began an investigation into whether the United States harmed China's poultry industry by exporting chicken parts for less than it cost to produce them. Now, China has decided to impose tariffs on American poultry of up to 105.4%. The United States exports about $4 billion a year of chicken products, of which $678.2 million went to China last year. It is one of the few industries in which the U.S. maintains a positive trade balance with China.

China Imposes a Steep Tariff on U.S. Poultry - NYTimes.com

Top Executives Find It Pays to Spend Time in Asia

Kasper Rorsted, CEO of German company Henkel (above), just spent nearly six weeks working in Asia, an unusually long time away from headquarters for a CEO.  His trip spanned 9 countries and involved nearly 100 meetings.  The company makes 14 percent of its sales and 20 percent of its profits in Asia Pacific, and nearly 20 percent of its employees are based in the region with that number poised to grow to one-third in the coming years.  Many companies are now considering moving headquarters to Asia, or splitting their headquarters to include a "co-HQ" in Asia.  Once Cisco executive puts it this way: after changes in trade, manufacturing, development and research, "the next phase of globalization will be the decentralization of headquarters functions."

Top Executives Find It Pays to Spend Time in Asia - NYTimes.com: "- Sent using Google Toolbar"

One-on-One With Thailand's PM

Thailand's economy is one of the best performing in Asia, as this video demonstrates.

One-on-One With Thailand's PM - CNBC.com: "- Sent using Google Toolbar"

Thai Property Fundamentals Very Sound

Thai Property Fundamentals Very Sound - CNBC.com

China's Premier Threatens Japan Over Boat Dispute

Japan's arrest of a Chinese fisherman in disputed waters is causing a major rift between China and Japan. For the Chinese, this is a chance to show domination over a former invader. For Japan, it's a chance to stand up to a growing power. For the U.S., it's a chance to countervail China's growing influence in the region. No resolution is in sight.

China's Premier Threatens Japan Over Boat Dispute : NPR

Ikea Expects to Double Buying of Goods in India

Swedish furniture giant Ikea is privately held, which means it does not have to worry about declaring dividends to shareholders.  As such, its strategy is driven by long term growth, not short term profits.  The company therefore adheres to a management style that is not always the norm.  For example, Ikea will not form joint ventures even if local law requires it.  This week, Ikea CEO Mikael Ohlsson (above) announced IKEA is scrapping plans to open stores in India because of the local requirement that foreign retailers partner with an Indian partner and own a maximum of 51% of the Indian operation.  In spite of that, Ikea plans to spend about 1 Billion Euros in the next three to four years on Indian suppliers, mainly in textiles and fabrics.

Ikea Expects to Double Buying of Goods in India -- NY Times.com