All posts by Alison Meadows

About Alison Meadows

Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]businessdistrict.com

Russia Joins North Korea to Condemn “The Interview”

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Spokesman for the Russian foreign ministry Alexander Lukashevich condemned the United States on Thursday for permitting the release of Sony Pictures raunchy comedy “The Interview.”

After Sony was hacked by an unknown entity, but most likely North Korea, the threat of further cyberattacks convinced the giant entertainment company to shelve the film to protect their interests. As a result of that decision Sony was inundated with criticism, including from President Obama, that caving into threats was not the way the United States, the world’s symbol of freedom and free speech, should respond. Sony relented and the film, an essentially low-brow, expletive not deleted, sexually suggestive trashy comedy became an ironic symbol of free-speech which opened in theaters across the country on Christmas Day.

North Korea already voiced its displeasure, insulting President Obama in the crudest language, a bit reminiscent of the movie they condemned. Now Russia is adding its angry voice to the chorus.

“The very idea of the film is so aggressive and scandalous that the reaction of the North Korean side… is completely understandable,” explained Lukashevich, referring to the film’s story which involves the assassination of the North Korean dictator Kim Jung Un.

“We believe that the threats of revenge and calls on other countries to condemn North Korea voiced in the United States are absolutely counterproductive and dangerous,” he added, adding that the escalation of tensions should be avoided.

Faulty Airbags Force Ford to Recall More Mustangs

News, , ,
2005-2009 Ford Mustang GT/CS
2005-2009 Ford Mustang GT/CS

The recall of older model Ford Mustangs was expanded to include over half a million vehicles suspected of having faulty passenger-side Takata-made airbags. Last month Ford was one of five car manufacturers asked by the US regulatory agency the National Highway Traffic Safety Administration to enlarge the recall of cars with potentially defective airbags to beyond the limits of areas with high humidity.

Takata had warned that there was a possibility that inflators of the airbags could malfunction when exposed to high humidity for prolonged periods of time. They expressed concern that the malfunction could cause potentially deadly metal shrapnel to be shot out at passengers upon inflation of the airbags.

Before the expanded recall Ford had already recalled about 55,000 vehicles with problematic airbags. The NHTSA asked for the expanded recall when it learned that there were reports of airbag malfunctions outside the limited high-humidity areas. Driver-side airbag inflator events have been connected to at least five fatalities, none in Ford-made cars. Ford stated that it knew of one accident with an injury which might be linked to an airbag defect.

The recall includes 500,439 Mustangs from model years 2005-2008 and 2,050 of 2005 and 2006 niche two-seat sports car Ford GT.

Layoffs on Horizon as GSK on Verge of Restructuring

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British-based pharmaceutical giant GlaxoSmithKline is planning on initiating cost-cutting measures that will ultimately cause hundreds of jobs to be lost.

On October 22 this year GSK, Britain’s leading drug company, announced their Q-3 results and also stated that they will save about 1 billion pounds ($1.56 billion) in yearly costs over three years. It has not yet been announced who will be laid off to save this money.

The company’s head of North American pharmaceuticals, Deirdre Connelly, will brief US employees on the upcoming changes. Sales of GSK respiratory drugs have been falling of late in the US.

“Each business unit is currently deciding how to respond to this challenge. When we do have proposals, we will first share those with our employees,” said a GSK spokesman.

Sky is Not the Limit for Singapore Airlines

Transportation Industry, , ,
Singapore Airlines photo by Rolf Wallner
Singapore Airlines photo by Rolf Wallner

Imagine paying $28.99 for in-flight internet service and getting a bill for $1,200 at the flight’s end. That is exactly what happened to one hapless Toronto traveler last week on a Singapore Airlines flight from London to Singapore.

Jeremy Gutsche is the head of consultancy website Trendhunter.com. He thought he would check his emails while flying to Singapore, and decided to sign up for the more expensive data plan offering him 30mb for almost $30. He said he knew he surpassed the data limit, but was still shocked by the $1,200 bill.

“I think the sum is shocking, and if you were a family traveller or someone like my mother, that bill would certainly ruin your vacation,” Gutsche said to CBS News in an email.
Gutsche says he was not video chatting or streaming movies. His bill was accrued with 155 page views, something he says is just plain wrong.

“I was aware of the pricing, and even though I limited my surfing, my overage wasn’t $50 or $100, it was an excessive $1,200. I get that the pricing model is listed in the terms and I was aware of it, but even so, my work ended up well over the limit. That had me thinking that just because someone agrees to terms and conditions does not actually mean that the pricing and terms are ethical.”

Gutsche compared Singapore Air’s internet pricing scheme to that of other airlines.

“Compare that with $14 for 24 hours on American Airlines, United, Air Canada, Delta, US Airways and Virgin. And on Jet Blue, Wi-Fi is free.” Gutsche said. “And if I could burn $1,200 on 155 pages (and likely an update or two running in the background), an aggressive surfer or game player could far surpass that.”

NABE Survey Sees Trouble Looming in China

Economy, , , , ,
China economy boom or bust?
China economy boom or bust?

According to a new survey conducted by the National Association for Business Economics, a bit beyond half of US business economists believe that China marching towards a serious debt crisis in the next few years.

When asked whether they agreed that “China will face a debt crisis within the next few years,” 52 percent said yes, 25 percent said no, and 23 percent were undecided.

“The biggest concern that has been in discussion is the housing boom and bust in China,” said Jack Kleinhenz, NABE’s president and chief economist at the National Retail Federation. “I think it’s just an overexpansion like we’ve seen in other housing bubbles that have occurred, here in the United States and elsewhere.”

Problems brewing in the Chinese economy include a weakening housing market, expanding debt on the local government level, and a squeezing of supervision of shadow-banking services.

Not all agree with US economists however. Changyong Rhee of the International Monetary Fund said in April that he does not see a full-blown financial crisis for China on the horizon. Kleinhenz added that even if there were a housing bust in China it “shouldn’t have an impact globally” like the housing crisis in the US did. That housing crash helped ignite the 2008 global financial crisis.

The NABE survey was given to 47 member of NABE and was conducted from May 8-21. The economists were also asked about European economics. The vast majority, 84 percent, said that they believe the problems facing Russia and Ukraine “will hinder the economic recovery in Europe.” Whether the crisis will impact the US, however, only 34 percent think it will.