September, 2017


Once a leader in virtual currencies, China turns against them

BITCOIN and China always made odd bedfellows. Devotees of bitcoin love its independence from central authorities; in China the central authorities love their power. That they would accept a cryptocurrency that weakened their control over something as fundamental as the management of money seemed unlikely. Yet China had become the world’s biggest bitcoin market, dominating both its trading and computer-powered “mining”. It was not meant to be. Bitcoin’s surprising success in China appears to be nearing its end. A series of bans announced over the past month have made clearRead More

American entrepreneurship is flourishing, if you know where to look

AT FIRST glance, it seems that America’s economy is losing its mojo. Many economists, most notably Robert Gordon of Northwestern University, have lamented that productivity growth seems to be anaemic when compared with earlier golden eras (see Free exchange). A gloomy chorus of business leaders has echoed what media outlets have by now turned into a mantra, that American entrepreneurship is in steady decline. Surely America’s overall competitiveness, then, is plummeting? The answer from one influential think-tank, the World Economic Forum (WEF), is no. In its latest update to itsRead More

Three trade cases facing the Trump administration spell trouble

IN 1845 Frédéric Bastiat, a French economist, wrote an open letter to his national parliament, pleading for help on behalf of makers of candles and other forms of lighting. The French market was being flooded with cheap light, he complained. Action was necessary: a law closing all windows, shutters and curtains. Only that would offer protection against the source of this “ruinous competition”, the sun. Three similar pleas are facing the administration of President Donald Trump. But these are not parodies. On September 22nd the United States International Trade CommissionRead More

How did it end up like this?: The Killers, after five albums, are more mournful than lethal

THEY MADE the most impressive start of any rock band in the last 20 years. The first five tracks of The Killers’ debut album, “Hot Fuss” (2004), were deadly. A Las Vegas outfit inspired by the edgy British synth-pop of the 1980s—they named themselves after a fictional group from a music video by New Order—their keyboards warbled, their bass lines throbbed and their guitars growled. In Brandon Flowers they had a haughty, eyeliner-wearing frontman with a honeyed voice. His songs were dark and catchy, about murdering lovers and spying onRead More

McDonald’s wages a food fight in India

IN MOST ways the McDonald’s outlet in Jangpura, a gentrifying neighbourhood in south Delhi, looks like one anywhere else, with bright displays, plastic seating and a familiar menu. But this week a disconcerting sign warns that “unpredictable” conditions have affected tomato supplies; none are available. Not bad though for a store that McDonald’s has been trying to close since September 6th. Over a third of its 400 or so outlets in India were supposed to shut their doors then—yet nearly all are still slinging McSpicy Paneers to customers. War ragesRead More

The Bank of Japan sticks to its guns

SEVENTH time lucky? Minutes of the Bank of Japan’s (BoJ) policy meeting in July, published on September 26th, showed that the central bank had, for the sixth time since 2013, pushed back the date at which it expected prices to meet its 2% inflation target—to the fiscal year ending in March 2020. Four-and-a-half years since Haruhiko Kuroda took office as governor and embarked on an unprecedented experiment in quantitative easing (QE), the bank is still far from its goal. It has swept up 40% of Japanese government bonds and aRead More

Nordic payments firms have become acquisition targets

THE Vikings were slow to adopt coins. They preferred to pay by cutting pieces off silver bars, at least until contact with the rest of Europe convinced them of the benefits of standardised coins. Today their Nordic descendants are abandoning coins and notes in favour of electronic payments. Two Nordic e-payments firms have recently announced that they will be acquired by foreign companies. The rest of the world, too, is using less cash. And they want the financial backing to enter new markets. On September 25th Nets, a payments firmRead More

Rivigo is helping the Indian truck-driving industry out of a jam

THERE are 36 gradations in India’s archaic caste system, from the priestly to the supposedly untouchable. And then, somewhere below that, are the long-haul truck-drivers. Plying the subcontinent’s potholed highways for weeks at a time, few can settle into anything like a home life. Their marriage prospects are grim; venereal diseases and sore backs from sleeping in cramped cabs are but two occupational hazards. Despite an oversupplied national job market, the industry has struggled to attract the roughly 1m new drivers it needs each year to keep everything from AmazonRead More

Venture capitalists with daughters are more successful

RICHARD NESBITT, a former chief operating officer at the Canadian Imperial Bank of Commerce, has long been an evangelist for women in business. In “Results at the Top”, a book he wrote with Barbara Annis, he describes his efforts to convince men to promote women. When speaking to bosses, he stresses data showing that companies with more senior women are more successful. But he has noticed that men with daughters tend to be more receptive to his message. At least for venture-capital (VC) firms, recent research confirms this observation, asRead More

A shareholder pact is rocked by Liliane Bettencourt’s death

DEATH does not end all uncertainties. News that Liliane Bettencourt, a glamorous 94-year-old Parisian heiress, died on September 20th has provoked a flurry of investor speculation over L’Oréal, the world’s biggest cosmetics company. She had held a controlling stake in the firm her father, an inventor of hair dyes, founded in 1909. Its market value has since grown to be a whisker short of €100bn ($117bn). Her death brings few immediate consequences. An Alzheimer’s sufferer, she had been declared legally unfit to manage her concerns. That followed a scandal, madeRead More