Business And Finance

Involuntary bumping seems to be a thing of the past

IF AVIATION had an astrological sign, 2017 would surely be the Year of the Bump. Most infamously, it was the year that a United Airlines passenger who refused to leave an overbooked flight in April was dragged violently from the plane. There followed airline policy changes to reduce involuntary bumping, a novel system to make bumping less inconvenient, and even ...

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The problem of contaminated air on planes

AT 30,000 feet the skies may be clear, but the oxygen certainly is not. Anyone who has wheezed his way through a long plane journey will know that cabin air is hardly pristine. Nearly all aircraft draw in air by way of the plane’s engine compressor. It is common for a small amount of oil to leak over the engine, ...

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Airlines want tighter control of alcohol sales in British airports

TRYING to stop Britons from boozing can be a forlorn task. Drinking has been woven into the nation’s culture for centuries, from the “loose-tongued” pilgrims of Chaucer to the apprentices who ran amok on London’s streets in the 16th century. According to Susie Dent, a lexicographer, English has 3,000 words for being drunk. Some take that list as a challenge. ...

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A firm that shares a name with its founder earns higher profits

A GOOD business name can be pricey. An entrepreneur looking for the perfect one can hire a naming agency to offer ideas, but that can cost tens of thousands of dollars. That may explain why many founders follow the example set by the American president and name their businesses after themselves. A recent article* by academics from the Fuqua School ...

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Chasing higher yields, investors pile into risky countries

WHERE can you find a 7% interest rate on a sovereign dollar-bond? You would have to take a time-machine to the mid-1990s to find such a yield on a ten-year American Treasury. Alternatively, you could slip back a few days to August 2nd and bid for the $1bn of five-year bonds sold by the government of Iraq. The yield was ...

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Investment in American infrastructure is falling

IT IS not a number to tweet about. President Donald Trump plans to plough $1trn of spending into America’s crumbling infrastructure. And a dearth of capital is not a problem: investors are keen on such assets. But investment seems to be falling. Government infrastructure spending in the second quarter fell to 1.4% of GDP, the lowest share on record (see ...

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Investors are not great at predicting politics

FINANCIAL markets are supposed to be the font of all wisdom, weighing up the information available and condensing it into a set of prices. Investors are presumed to have an insight into the future—falling bond yields are seen as a sign that the economy is slowing, for example. But are investors that clever when it comes to politics? Gambling markets ...

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How do you solve a problem like Korea? Investors are unsure

EUROPEAN markets have started the day with losses of 1% or so, following a 2% decline in Hong Kong’s Hang Seng index and the 1% loss in the S&P 500 index on Thursday. The Vix, a much used measure of market fear, jumped to 16, its highest level since the Presidential election. These are significant moves by the standards of ...

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