Pilotless aircraft

This is your ground pilot speaking

Autonomous civil aircraft could be flying before cars go driverless

Nov 24th 2012 | from the print edition 

WITHIN the next few weeks a twin-engined Jetstream will take off from Warton Aerodrome in Lancashire, England, and head north towards Scotland. Like any other flight, the small commuter airliner will respond to instructions from air-traffic controllers, navigate a path and take care to avoid other aircraft. But the pilot flying the aircraft will not be in the cockpit: he will have his feet firmly on the ground in a control room back at Warton.

Why Black Friday Is a Behavioral Economist’s Nightmare

By Kevin Roose

Your yearly dose of economic irrationality.

There are many, many reasons not to participate in Black Friday. Maybe you like sleeping in and spending time with family more than lining up in a mall parking lot at 2 a.m. Maybe you object on humanitarian grounds to the ever-earlier opening times, which force employees of big-box retailers to cut their holidays short by reporting to work in the middle of the night. (Or, increasingly, on Thanksgiving itself.)

Micro stars, macro effects

Meet the economists who are making markets work better

Nov 24th 2012 | from the print edition

ON THE face of it, economics has had a dreadful decade: it offered no prediction of the subprime or euro crises, and only bitter arguments over how to solve them. But alongside these failures, a small group of the world’s top microeconomists are quietly revolutionising the discipline. Working for big technology firms such as Google, Microsoft and eBay, they are changing the way business decisions are made and markets work.

Take, for example, the challenge of keeping costs down. An important input for a company like Yahoo! is internet bandwidth, which is bought at group level and distributed via an internal market. Demand for bandwidth is quite lumpy, with peaks and troughs at different times of the day. This creates a problem: because spikes in demand must be met, firms run with costly spare capacity much of the time.

The urge to smurf

When government gets greedy, some people turn to crime

Nov 24th 2012 | RICHMOND | from the print edition

THE busy interstate highway that zips through Richmond, Virginia, and up to the crowded cities of the north-east has long been a conduit for handguns bought wholesale in Virginia and sold to drug-dealers in New York. Now I-95 is siphoning northwards another form of contraband: black-market cigarettes.

Unruly Asean not playing Beijing's game on territorial disputes

Even with client state Cambodia chairing the bloc, China finds it hard to keep members in line on how to deal with territorial rows

Greg Torode in Phnom Penh greg.torode@scmp.com 

The frustration and sarcasm were evident as Foreign Ministry spokesman Qin Gang outlined the "mathematics" at play this week behind China's troubled relations with the Association of Southeast Asian Nations.

A Water Bottle That Can Fill Itself Up

Kecia Lynn on November 22, 2012, 3:25 PM 

 What's the Latest Development?

Deckard Sorensen, a scientist and co-founder of NBD Nano, has created a prototype of a bottle that fills itself up by collecting water from the surrounding atmosphere. The water comes when air from a fan passes over a surface layered with nanoscale water-attracting and water-repelling coatings. Until now all tests have been done with solar cells and a rechargeable battery, but even that might not be necessary in order for the technology to work: Anything that moves fast enough to create an airflow -- "a car or a boat, or even a running human" -- could cause water to condense on the surface.

Fiscal Cliff War Games: Who Plays, Who Wins?

By STAFF, Reuters

November 21, 2012

 

President Barack Obama and the U.S. Congress hope to start serious negotiations after this week's Thanksgiving holiday on Thursday on how to avoid the "fiscal cliff," which has politicians and economists worried about the direction of the world's largest economy.

A ‘Cliff’ Deal Could Still Cost Consumers $218B

By YUVAL ROSENBERG, The Fiscal Times

November 21, 2012

 

Even if the country doesn’t slide over the fiscal cliff, any deal to blunt the impact of the scheduled tax hikes and spending cuts is likely to create at least some drag on an economy that is still growing only modestly. The full package of changes set to take effect in January would suck more than $600 billion out of the economy, according to the Congressional Budget Office. And while the outlines of any deal are still sketchy to say the least, Goldman Sachs economists are modeling a $233 billion economic hit as their “base case scenario.”

Why President Barack Obama should not visit Russia.

BY LEON ARON | NOVEMBER 20, 2012

Kremlin spokesman Dmitry Peskov announced last week that President Vladimir Putin had called to congratulate Barack Obama on his reelection and claimed that the American president accepted an invitation from Putin to come to Russia. Obama's plans, which have not yet been publicly announced, seem truly puzzling.

New Trading Case Casts a Deeper Shadow on a Hedge Fund Mogul

By PETER LATTMAN and PETER J. HENNING

Evidence in a criminal case suggests that Steven A. Cohen of SAC Capital Advisors participated in trades that the government says illegally used insider trading information.

In 2010, the billionaire hedge fund manager Steven A. Cohen gave a rare interview to Vanity Fair. He said that he wanted to combat persistent rumors that his firm, SAC Capital Advisors, routinely violated securities laws by trading on confidential information.

“In some respects I feel like Don Quixote fighting windmills,” Mr. Cohen said at the time. “There’s a perception, and I’m trying to fight that perception.”

Five economic trends to be thankful for

Posted by Neil Irwin on November 21, 2012 at 10:24 am

There is a dirty little secret about economics writing. The thing that offers the surest path to glory — to front page play for a story, to lots of Web traffic, to a pat on the back from editors — is doom and gloom. When we can point out something that is awful, whether it is a collapsing job market or rising poverty or skyrocketing gasoline prices, the world seems a whole lot more interested in what we have to say. It’s not for nothing they call economics the dismal science.

Why is housing such a popular investment? A new psychological explanation

Thomas Alexander Stephens, Jean-Robert Tyran, 23 November 2012

Despite its meagre real returns in the long run, many people still think that investing in housing is a good idea. This column argues that a major reason for the tendency to buy houses is that it’s rare to lose money. Recent research shows people’s perceptions of housing transactions to be shaped by whether they gain or lose money – above and beyond the real returns.

In the wake of the economic crisis that began in 2007, homeowners in many countries have faced substantial losses. Prices have fallen in both nominal and real terms. In the US, for example, house prices in the first quarter of 2012 were down more than 40% in real terms from their peak (Shiller 2012).Nevertheless, housing remains a popular investment¹. This popularity is surprising because, over the post-war period, US house prices have been essentially flat in real terms while the US stock markets have risen more than fourfold in real terms over the same period².

Banking Union and ambiguity: Dare to go further

Sylvester Eijffinger, Rob Nijskens, 23 November 2012

The Eurozone is moving towards a banking union, with the ECB at its centre. This column argues that there are worrying problems with the proposals, suggesting that the ECB ought to follow a principle of ‘constructive ambiguity’ if it wants to maintain and improve its credibility as a supervisor.

On September 12, the European Commission published a proposal to establish a banking union in the Eurozone¹. This proposal delegates the supervision of large cross-border banks to the ECB. The ECB will also be responsible for supervising smaller banks, in cooperation with national supervisors. The European Banking Authority (EBA) can coordinate this through the proposed Single Supervisory Mechanism.

Unilever to launch world's first Toilet Academy in Vietnam

Breaking the taboo and creating a sustainable and long-term solution to sanitation

• Unilever
• Guardian Professional, Thursday 22 November 2012 10.06 GMT  

For 2.5 billion people across the developing world, having no access to even the most basic sanitation is a reality faced every day Photograph: Ahmed Jallanzo/EPA

Life without access to a toilet

For the overwhelming majority of the developed world, a clean and functioning toilet is something we take for granted and perhaps don't even think to question. But for 2.5 billion people across the developing world - that's almost one third of the global population - having no access to even the most basic sanitation is a reality faced every day. Of these, 1.1 billion are forced to suffer the indignity of practising open defecation – the riskiest sanitation practice of all.

China to 'simplify' procedures for foreign investors

China has been keen to boost foreign investment in its financial markets

China has said it will "simplify" procedures for foreign direct investments, the latest step in its attempts to attract more investors.

Under the new rules, investors will not require approval for opening foreign currency accounts or for re-investing foreign exchange earnings.

EU Leaders Prepare for Battle Royal at Summit

By VANESSA MOCK

European Pressphoto Agency

German Chancellor Angela Merkel, left, talked to German Finance Minister Wolfgang Schaeuble during a debate in the lower house of German parliament in Berlin on Nov. 21.

BRUSSELS—European Union leaders are headed to Brussels on Thursday for a big showdown over the bloc's spending budget, in a battle that pits richer against poorer member states, the East of the continent against the West, and the U.K. against almost everyone else. 

With more than a handful of countries threatening a veto ahead of Thursday's summit, diplomats sounded pessimistic about prospects for an agreement on the European Union's spending ceilings for the coming seven years, in what are usually the thorniest of all EU negotiations.

Why rich guys want to raise the retirement age

Posted by Ezra Klein on November 21, 2012 at 2:14 pm

If you’re the CEO of Goldman Sachs – if you have a job that you love, a job that makes you so much money you can literally build a Scrooge McDuck room where you can swim through a pile of gold coins wearing only a topcoat – then you should perhaps think twice before saying this:

You can look at the history of these things, and Social Security wasn’t devised to be a system that supported you for a 30-year retirement after a 25-year career. … So there will be things that, you know, the retirement age has to be changed. Maybe some of the benefits have to be affected, maybe some of the inflation adjustments have to be revised. But in general, entitlements have to be slowed down and contained.

Obama, in Cambodia, Sidesteps Ghosts of American Wartime Past

By PETER BAKER

Published: November 20, 2012

PHNOM PENH, Cambodia — Four decades after American warplanes carpet-bombed this impoverished country, an American president came to visit for the first time. He came not to defend the past, nor to apologize for it. In fact, he made no public mention of it whatsoever. 

President Obama’s visit to a country deeply scarred by its involvement with the United States did nothing to purge the ghosts or even address them. Mr. Obama made clear he came only because Cambodia happened to be the site for a summit meeting of Asian leaders, but given the current government’s human rights record, he was intent on avoiding much interaction with the host.

Asian Nations Plan Trade Bloc That, Unlike U.S.’s, Invites China

President Obama with other leaders at the East Asia Summit in Phnom Penh, Cambodia, on Tuesday, including Prime Minister Wen Jiabao of China, center. China cheered a plan for a 16-nation trade bloc that would cover nearly half of the world’s people.

By JANE PERLEZ

Published: November 20, 2011

PHNOM PENH, Cambodia — Ten Southeast Asian nations said Tuesday that they would begin negotiating a sweeping trade pact that would include China and five of the region’s other major trading partners, but not the United States. 

The proposal for the new trade bloc, to be known as the Regional Comprehensive Economic Partnership, is enthusiastically embraced by China. The founding members, who belong to the Association of Southeast Asian Nations, said at the close of the association’s summit meeting here that the bloc would cover nearly half of the world’s population, starting in 2015.

Southeast Asia’s Economic Poster Child Is Stalling

How the Communist Party is fiddling while Vietnam burns.

BY BEN BLAND | NOVEMBER 20, 2012

"Long live the glorious Communist Party of Vietnam," proclaims one of the many red-and-yellow official banners that loom over central Hanoi.

Like citizens of other one-party states, most Vietnamese have developed a handy ability to block out propaganda as they buzz through the streets on their ubiquitous scooters in search of subsistence, stability, or greater riches. "Is the Party really attempting to send a message to the people, or merely trying to reassure itself?" quips one Vietnamese academic, unwilling, like most in this police state, to speak openly about the future of the country's self-appointed rulers.

China Reins In New Security Boss's Clout

Incoming Communist Party leadership appoints Meng Jiangzhu as head of domestic security, overseeing police, prosecutors, judges, spies, but downgrades the position. The WSJ's Jeremy Page explains why the Bo Xilai affair contributed to the downgrade.

Bo Xilai Affair Led to Fears the Domestic Spy Chief Had Grown Too Powerful, Leading Party Elite to Downgrade Position

BEIJING—In a sign of how the Bo Xilai affair has shaped the thinking of China's rulers, the incoming Communist Party leadership appointed a new domestic security chief but downgraded the position.

The move could strengthen the rule of law after a decade in which the security forces amassed vast new powers and resources, and party insiders say it is a direct consequence of the scandal surrounding Mr. Bo, the former party highflier whose wife was convicted in August of murdering a British businessman.

Mark Warner: Fiscal Cliff Talks Will Be Different This Time

Sen. Mark Warner (D-Va.) appears at a Barack Obama campaign rally at Byrd Park on October 25, 2012 in Richmond, Virginia. (Photo by Chip Somodevilla/Getty Images) 

* Says pain of past failures, dire consequences to ease deal

* Less cooks in negotiating kitchen a good idea

* Decides against governor's run, has unfinished Senate work

By David Lawder and Kim Dixon

Having A Little Brother Linked With Slightly Increased Blood Pressure: Study

Posted: 11/21/2012 1:11 am EST

Things that can raise blood pressure: eating too much salt, stress ... having a little brother?

A new study of Bolivian villagers shows a link between having a younger brother and slightly increased blood pressure levels later on in adulthood, though the Brandeis University researchers did note that the effect seemed to diminish with age.

Five Myths about the Chinese Internet

The Great Firewall is neither great, nor a firewall. Discuss.

BY EVELINE CHAO | NOVEMBER 20, 2012

Last week, Xi Jinping's chairmanship of the Communist Party was announced, and collectively, the Chinese Internet breathed a sigh of relief. Netizens rejoiced as the web returned to its normal speed, while censors, government officials, and Internet companies finally allowed themselves to stop fretting about making any missteps during the highly sensitive week-long, once-in-a-decade political meeting -- the 18th Party Congress -- which decided China's new leadership structure. 

European Leaders Fail to Agree on Greek Aid

By JAMES KANTER and NIKI KITSANTONIS

Published: November 20, 201

BRUSSELS — Euro zone finance ministers and international officials ended marathon talks on Greece’s intractable debt early Wednesday morning still at loggerheads over payment of further emergency aid. 

Macroeconomic adjustment and the history of crises in open economies

Joshua Aizenman, Ilan Noy, 21 November 2012

Are countries that have previously experienced banking crises less vulnerable to them in the future? This column argues that, in fact, previous crises might make future crises more likely. There isn’t much evidence of a learning process from past mistakes because the regulator often lags behind banking’s pace of innovation. Preparing to prevent the last crisis does not prevent the next and it seems that the ‘too big to fail’ doctrine provides cover for banks, delaying the day of adjustment.

Choosing your own capitalism in a globalised world?

Daron Acemoglu, James A Robinson, Thierry Verdier, 21 November 2012

Amid the current economic slowdown there is renewed interest in what type of capitalism fosters growth and best improves welfare. This column argues Nordic-style capitalism may provide higher welfare but in an interconnected world, it may be the cutthroat US capitalism, with its extant inequalities, that makes possible the existence of more cuddly Nordic societies.

Would a carbon tax cut emissions drastically? Not on its own

Posted by Brad Plumer on November 20, 2012 at 3:16 pm

Nothing to see here, just a good old-fashioned all-American carbon tax. (Ben Margot/Associated Press)

Lately, the White House and Congress have been talking up tax reform. And that’s given policy wonks an excuse to revisit one of their favorite environmental proposals — the carbon tax. The government would slap a fee on greenhouse-gas emissions to offset tax cuts elsewhere. It would boost the economy and address global warming. What’s not to love?

Market access in global and regional trade

José de Sousa, Thierry Mayer, Soledad Zignago , 20 November 2012

Do trade costs still matter in a modern era characterised by a fall in transaction costs? This column argues that there is a dearth of good analysis in the debate around market access difficulties. Complaining about restrictions in accessing foreign markets is political leaders’ current favourite hobby yet. In light of stalled WTO negotiations, shouldn’t rigour, not rhetoric, lead this debate?

Euro zone mulls Greek debt buy-back up to 40 billion euros

By Robin Emmott and Annika Breidthardt | Reuters

Luxembourg's Prime Minister and Eurogroup chairman Jean-Claude Juncker (R) talks with Spain's Economy Minister Luis de Guindos (L) at a Eurogroup meeting in Brussels November 20, 2012. REUTERS/Yves Herman

Fed Watch: Industrial Production Stalls

Industrial Production Stalls, by Tim Duy: Sober Look is questioning just how temporary will be the impact of Hurricane Sandy on the data. I tend to think about this in somewhat different terms. I am fairly confident that the impact of Sandy on the national data will be almost entirely transient. I am less confident that we are identifying underlying trends in the data as we dismiss any weaker than expected numbers as artifacts of Sandy. At the moment, however, I think this issue is largely confined to manufacturing data.

The 8 Positive Aspects of Aging

By MICHAEL HODIN, Posted: November 20, 2012

We all know the old adage: “Getting older is better than the alternative.” It’s true most of the time, but it’s also true that growing “old” today is better than it has been ever before.

Shadow Banking System Grows to $67 Trillion Globally

By STAFF, Reuters

November 19, 2012

The shadow banking system - blamed for aggravating the financial crisis - grew to a new high of $67 trillion globally last year, a top regulatory group said, calling for tighter control of the sector.

A report by the Financial Stability Board (FSB) on Sunday appeared to confirm fears among policymakers that the so-called shadow banking system of non-bank intermediaries continues to harbour risks to the financial system.

The Case for Breaking Up the Big Banks

Too Big to Fail: A Case for Breaking Up Big Banks

By MARK THOMA, The Fiscal Times

November 20, 2012

I was pleasantly surprised to hear Federal Reserve Bank of New York President William Dudley say in a recent speech that solving the too big to fail problem may require breaking up big banks. He is in favor of trying the resolution authority granted in the Dodd-Frank legislation first, but this is an untested solution to the too big to fail problem that attempts to isolate and dismantle large, troubled institutions while protecting the rest of the economy.

'Compensation Growth and Slack in the Current Economic Environment'

This is a bit technical at times, but it makes an important point that is a bit buried in the discussion that I'd like to highlight

The first step in the discussion is to explain what a non-linear Phillips curve is, and why a non-linear specification is needed:

Most Poor Children Live in Households with Major Hardships

With Thanksgiving right around the corner, this is an appropriate time to look at some new figures on hardship.  New CBPP analysis of monthly Census data finds that more than half (58 percent) of poor children last year lived in households that faced one or more of the following:

Europe in recession

November 18, 2012

The Business Cycle Dating Committee of the Centre for Economic Policy Research (the European counterpart of the U.S. NBER) last week issued a declaration that Europe entered a new recession a year ago, dating the business cycle peak at 2011:Q3.

Gaza Without End

By ROGER COHEN

Published: November 19, 2012

HOW does it end in Gaza?

This has been the issue with all the self-defeating Israeli military offensives of the past 16 years — Operation Grapes of Wrath in Lebanon, Operation Cast Lead in Gaza and now Operation Pillar of Defense, all of them, not coincidentally, initiated on the eve of national elections in Israel.

China names new Communist Party chief in Chongqing

China has appointed a new Communist Party chief in Chongqing, the city once led by disgraced politician Bo Xilai.

Sun Zhengcai was agriculture secretary from 2006-2009

Sun Zhengcai, 49, will take over from outgoing chief Zhang Dejiang, who was promoted to the Politburo Standing Committee, Xinhua news agency said

Mr Zhang replaced Bo Xilai in March, as investigations into his case began.

Fiscal Madness

What is it about fiscal policy that brings out the crazy?  Because it all seems pretty simple.  Joe Weisenthal hits the nail on the head:

The U.S. recovery has been remarkable on a comparative basis precisely for one reason: Because despite all of the rhetoric, the U.S. has completely avoided the austerity madness that's gripped much of the world.

The Chinese Party Congress Wrap-Up: 3 Surprises

Nov 18 2012, 10:48 AM ET 4

Xi Jinping's affable, plainspoken demeanor is the big story of the power transition.

A security guard watches new Communist Party General Secretay Xi Jinping speak on a screen. (Reuters)

The "Great Unveiling" of the new Chinese leadership took place as expected on November 15, and the post-mortem judgment was virtually unanimous that the final line-up reflected a "conservative" leadership stacked with more sexagenarians than what many had hoped. And as such, hopes of fundamental reforms have been dashed for now (see here, here, and here). Although the conservative vs. reformer framework always struck me as a false dichotomy, I will leave the elaboration of that subject for another time. Instead, I think the conclusion of the party congress contained three surprises, and left many questions, that are worth pondering.

China's Soft Power Surge

The People's Republic is no longer content with economic hegemony -- it's making a play for the hearts and minds of Southeast Asia. 

 BY DUSTIN ROASA | NOVEMBER 18, 2012

 

On a blustery recent Saturday morning on the outskirts of Phnom Penh, as planes roared overhead on approach to the nearby international airport, three dozen people sat in a tiny classroom at the Royal Academy of Cambodia. Crammed shoulder to shoulder, they watched raptly as a flat-panel TV showed a pair of Chinese pop stars crooning a love song in Mandarin.

Condoms, Gloves Provide Lifeline for Malaysian Rubber

Condoms are arranged on a conveyor system for packaging at the Karex Industries Sdn. Bhd. condom factory in Pontian Besar, Johor, Malaysia. Karex Industries' line of business includes the manufacturing of industrial rubber goods, rubberized fabrics, and miscellaneous rubber specialties.

By Liau Y-Sing - Nov 19, 2012 3:10 PM GMT+0700

Karex Industries Sdn., the world’s biggest condom manufacturer, will expand capacity after selling shares next year, boosting Malaysia’s bid to rejuvenate its rubber industry amid competition from Thailand and Vietnam.

Change in Negotiators Shakes Up U.S.-China Trade Policy

By KEITH BRADSHER

Published: November 18, 2012 

BEIJING — The rare congruity of the political calendars in the United States and China, with both countries choosing leaders this month, is about to produce an equally rare replacement of most of each side’s senior trade negotiators, with unpredictable results for bilateral economic relations.

The Tablet Market Grows Cluttered

The new market of keyboardless computers is quickly becoming as confusing as that of the old-school PC.

By CLAIRE CAIN MILLER and BRIAN X. CHEN

Published: November 18, 2012

Holiday shoppers with a tablet computer on their gift list this year might be forgiven for feeling a little panicked

Look at the tablets available online or at a consumer electronics store and it can be dizzying to choose from among the dozens of slim rectangles with touch screens — each with various sizes, features, prices and applications

The Unemployment Gap Between Europe and America

Yes, contractionary policies are contractionary…

Paul Krugman watches Europe's train wreck:

Transatlantic Divergence - NYTimes.com: pursuing the theme that America is doing the least worst among major economies, here’s a chart…. In the early stages… unemployment rose more rapidly in the US than in Europe. This mainly reflected differences in institutions: it’s much easier to fire people in America. From some point in 2010 onward, however, the US situation has gradually improved; initially some of the drop in unemployment was basically people leaving the labor force, but more recently there have been solid though modest gains in the ratio of employment to the relevant population (you have to adjust for aging). Meanwhile, Europe has gotten much worse; now formally in recession, but the truth is that it has been going downhill all along.

Why the divergence? The obvious answer is that the austerity stuff broke out in 2010, and the austerians took over policy much more completely in Europe than in the United States.

Source

Nose cell transplant enables paralysed dogs to walk

Jasper the dachshund walking again

Scientists have reversed paralysis in dogs after injecting them with cells grown from the lining of their nose.

The pets had all suffered spinal injuries which prevented them from using their back legs.

The Cambridge University team is cautiously optimistic the technique could eventually have a role in the treatment of human patients

Obama’s Road to Myanmar Is Paved With New Asia Intentions

American flags were being sewn at a roadside shop in Yangon, Myanmar, on Friday before President Obama’s arrival. 

By PETER BAKER and JANE PERLEZ

Published: November 17, 2012 

WASHINGTON — On the stump this fall, President Obama boasted that he had “brought more trade cases against China” than his predecessor had. In an ad, he asserted that his challenger “never stood up to China.” During a debate, Mr. Obama said he expanded trade with other Asian nations “so that China starts feeling more pressure” to play by the rules.

‘Little Hu’ eyed for the next wave of Chinese leaders

By William Wan,

Nov 17, 2012 12:04 PM EST

The Washington Post Published: November 17

BEIJING — For the past week, the focus in China has been on the country’s outgoing leaders and their replacements, who were announced Thursday in a ­once-a-decade transition.

But those looking further down the line have been studying a subset of attendees — the likely successors to this year’s new leaders.

Opportunity Lost?

Inside China's leadership transition. 

BY CHENG LI | NOVEMBER 16, 2012

For a country widely seen as the world's other superpower, we know shockingly little about the worldviews, values, and socioeconomic policies of the seven men just named the new leaders of China. Unlike American politicians, Chinese leaders carry out their campaigns largely behind closed doors, and they are not chosen by the people.