Andrew Parker reports from the Dubai airshow that Boeing has won its largest order (estimated at $26bn) in its 95 year history. (The video runs two minutes and 20 seconds.) Emirates Airlines bordered 50 B777s. This came on top of a big order on Monday.
From the show, Parker also analyses the ascent of Emirates, Qatar Airways and Etihad amid allegations of state subsidies. (This video runs four minutes and 17 seconds.)
Sunday, November 20, 2011
Entrepreneurs Come in Many Shapes, Especially in the Emerging Economies.
In the U.S., eighty percent of job growth comes from small and medium sized businesses. Forty years ago, when Antoine van Agtmael coined the phrase "emerging markets," there was plenty of reason to doubt their emergence. But a combination of a revolution in ideas and the emergence of Schumpeter's prime mover of capitalism, the entrepreneur, has made the phrase more than a bit of public relations glitz.
The revolution came when intellectuals championed the market rather than the state as the engine of growth. This led to financial and economic globalization.
Entrepreneurs come in many shapes, especially in the emerging economies. Here are a few examples through the medium of Wall Street Journal videos:
Peru's new middle class give a whole new meaning to the phrase "living in the suburbs." The neighborhoods surrounding most Latin American cities are shanty towns where families crowd into shacks made of tin, cardboard, and whatever else might be recycled from the society's discards. Seeing the barrios around Lima with Guillermo Descalzi in 1967 set the course of my professional career. Had I any doubt that economic development would be what I studied, it disappeared then and there.
The Flores family own a firm called Topitop. It has become Peru's largest apparel maker with sales of about $200 million by focusing on the region's emerging middle class. Topitop aspires to be another Zara (2010 worldwide sales of €2.5 billion.) The Flores family grew up in the poverty of Huancavelica in the Andes. Learn how the two brothers worked their way from street venders in WSJ's Matt Moffett's report:
11/14/2011
And then, on the South American pampas, there is Daniel Burmeister, one of the world's most prolific directors. The WSJ's Matt Moffett reports from Coronel Suarez.
11/7/2011
The government of Monmohan Singh has done little lately to make it easier to start and grow a business in India. The Economist comments, "In the face of slowing growth, high inflation and awful corruption, the government is looking increasingly fossilised. No notable legislation has passed since the general election in 2009. Next year Mr Singh turns 80. He needs bright new talents to rediscover his sense of purpose." WSJ's Amol Sharma' report from Mysore shows how difficult it is for a start-up. Four years ago, Vishwaprashad Alva quit a high-paying job with GE's healthcare division in India to start his own company, Skanray Technologies. But getting the company off the ground has been a brutal process:
10/31/2011
Madecasse, the Brooklyn-based gourmet food company, is going to great lengths to find sources of premium cocoa. WSJ's Peter Wonacott reports from Madagascar:
9/23/2011
The revolution came when intellectuals championed the market rather than the state as the engine of growth. This led to financial and economic globalization.
Entrepreneurs come in many shapes, especially in the emerging economies. Here are a few examples through the medium of Wall Street Journal videos:
Can you make money marketing to customers who live in the barrio?
The Flores family own a firm called Topitop. It has become Peru's largest apparel maker with sales of about $200 million by focusing on the region's emerging middle class. Topitop aspires to be another Zara (2010 worldwide sales of €2.5 billion.) The Flores family grew up in the poverty of Huancavelica in the Andes. Learn how the two brothers worked their way from street venders in WSJ's Matt Moffett's report:
11/14/2011
One Man Movie Production Company
And then, on the South American pampas, there is Daniel Burmeister, one of the world's most prolific directors. The WSJ's Matt Moffett reports from Coronel Suarez.
11/7/2011
India's Struggling Entrepreneurs
The government of Monmohan Singh has done little lately to make it easier to start and grow a business in India. The Economist comments, "In the face of slowing growth, high inflation and awful corruption, the government is looking increasingly fossilised. No notable legislation has passed since the general election in 2009. Next year Mr Singh turns 80. He needs bright new talents to rediscover his sense of purpose." WSJ's Amol Sharma' report from Mysore shows how difficult it is for a start-up. Four years ago, Vishwaprashad Alva quit a high-paying job with GE's healthcare division in India to start his own company, Skanray Technologies. But getting the company off the ground has been a brutal process:
10/31/2011
Brooklyn Entrepreneurs Go to Madagascar for Cocoa
Madecasse, the Brooklyn-based gourmet food company, is going to great lengths to find sources of premium cocoa. WSJ's Peter Wonacott reports from Madagascar:
9/23/2011
Thursday, November 17, 2011
The Birth of Arbitrage
Arbitrage is the simultaneous buying and selling of an asset in two separate markets to exploit a price difference.
For many years, Brent crude oil sold a a very similar price to West Texas Intermediate crude oil. The former is the benchmark price for oil in Europe; the latter for the U.S. In the early years of the Brent field (between Great Britain and Norway in the North Sea), Brent sold at a discount to WTI. Thereafter they sold at parity. In the last year, Brent has opened a big premium up over WTI, averaging $27 for one recent month. What happened to arbitrage and the Law of One Price? A glut of oil in cushing, OK where the market for WTI is and a shortage in Europe.
That is about to change.
Chip Cummins reports in the Wall Street Journal that Entbridge of Canada is buying the recalcitrant half of Seaway pipeline and will reverse its flow south. Let the arbitrage begin!
This means lower margins for Kansas refiners, higher income for Kansas oil producers, and probably higher local gasoline prices.
WSJ's Liam Denning and Mean Street host Evan Newmark discuss WTI's price spike back over the $100 per barrel mark on news of a Canadian company's investment in a gulf coast-to-Oklahoma pipeline.
The Benchmarks Aren't Speaking to Each Other!
For many years, Brent crude oil sold a a very similar price to West Texas Intermediate crude oil. The former is the benchmark price for oil in Europe; the latter for the U.S. In the early years of the Brent field (between Great Britain and Norway in the North Sea), Brent sold at a discount to WTI. Thereafter they sold at parity. In the last year, Brent has opened a big premium up over WTI, averaging $27 for one recent month. What happened to arbitrage and the Law of One Price? A glut of oil in cushing, OK where the market for WTI is and a shortage in Europe.
That is about to change.
Chip Cummins reports in the Wall Street Journal that Entbridge of Canada is buying the recalcitrant half of Seaway pipeline and will reverse its flow south. Let the arbitrage begin!
For Kansas:
This means lower margins for Kansas refiners, higher income for Kansas oil producers, and probably higher local gasoline prices.
WSJ's Liam Denning and Mean Street host Evan Newmark discuss WTI's price spike back over the $100 per barrel mark on news of a Canadian company's investment in a gulf coast-to-Oklahoma pipeline.
The Birth of a New Acronym
I know of an agency in Washington that thought its status diminished by having a FLA, so it used a TLA instead. ("What's that?" you ask. An FLA is a four letter acronym, while a TLA is a three letter acronym.)
Well the would is "enriched" by a new acronym: "Sifi." Apparently one does not have to do it in all caps. (We really do need some regulation!) I read in the Financial Times, "Bank of China talks up its Sifi status."I was quite baffled. "Sifi?" I asked. The FT explained the acronym as “systemically important financial institutions.” (I caught it on the second reading.)
Well the would is "enriched" by a new acronym: "Sifi." Apparently one does not have to do it in all caps. (We really do need some regulation!) I read in the Financial Times, "Bank of China talks up its Sifi status."I was quite baffled. "Sifi?" I asked. The FT explained the acronym as “systemically important financial institutions.” (I caught it on the second reading.)
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