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Business and financeGulliver

Why the Trump administration has enraged flyers across America

FOR a president elected on a populist campaign message, Donald Trump is not doing much to make himself popular with flyers in America. On December 7th, the Trump administration announced that it was withdrawing a regulation proposed under Barack Obama to require airlines and other plane-ticket sellers to disclose baggage fees when customers begin the process of buying tickets. Airlines already have to display checked baggage fees on their websites. But the Obama administration’s proposal would have forced them to do so up front in the shopping process, so that travellers could compare the fees for various airlines and routes when choosing their itineraries. Mr Trump is also scrapping another Obama-era proposal to require airlines to report to regulators how much money they make from add-ons such as paid carry-on bags and seat selection.

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Business and financeGulliver

British Airways’ franchisee in South Africa throws off two black passengers

IN THE latest—and possibly most alarming—in a recent string of allegations of racism against airlines, two black musicians claim they were downgraded from business class on a British Airways-branded flight in South Africa to make room for a white woman. Thabo Mabogwane and Bongani Mohosana, a South African musical duo known as Black Motion, purchased business-class tickets for a flight on December 4th from Cape Town to Johannesburg on the South African-based Comair, branded in British Airways’ colours. They wrote on Instagram, a social-media website, that a white woman in business class complained that her seat was broken, and they “happened to be the only two young black men in the British airline business class.” They were asked to move to economy class, and when they complained they were told to leave the plane, both claim.

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ApprovedBusiness and financeFINANCEFinance and economics

Are digital distractions harming labour productivity?

FOR many it is a reflex as unconscious as breathing. Hit a stumbling-block during an important task (like, say, writing a column)? The hand reaches for the phone and opens the social network of choice. A blur of time passes, and half an hour or more of what ought to have been productive effort is gone. A feeling of regret is quickly displaced by the urge to see what has happened on Twitter in the past 15 seconds. Some time after the deadline, the editor asks when exactly to expect the promised copy. Distraction is a constant these days; supplying it is the business model of some of the world’s most powerful firms. As economists search for explanations for sagging productivity, some are asking whether the inability to focus for longer than a minute is to blame.

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ApprovedBusiness and financeFINANCEFinance and economics

A regulatory tempest lashes China’s markets

IT IS is the kind of company that for years was a safe bet for investors. China City Construction is big, government-owned and focused on building basic infrastructure such as sewers. But the bet, it turns out, was not so safe after all. In November China City missed interest payments on three separate bonds, after failing to refinance its hefty debts. It is one of a growing number of victims of the government’s clean-up of the financial system, or what is known in China as the “regulatory storm”.

The storm has been gathering strength for the better part of a year but its intensity over the past couple of weeks has caught many off-guard. The government wasted little time after an important Communist party meeting in October before taking on some of the riskier parts of the financial system. As a result, China’s risk-free interest rate—ie, the yield on government bonds— has shot up. Overall, it has risen by a percentage point since the start of 2017.

For firms, even those closely tied to the state, the rise in borrowing costs has been even steeper. The yield on ten-year bonds issued by China Development Bank, a “policy bank” that finances state projects at home and abroad, has soared to nearly 5%, the highest in three years (see chart).

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