Get Started for FREE
Sign up with Facebook Sign up with X
I don't have a Facebook or a X account
 Your new post is loading...
Your new post is loading...
Scoop.it!
Editorial: Consumers are drinking less red wine than ever. Producers need to revive the fresher and lighter vintages that their medieval ancestors once harvested No comment yet.
Sign up to comment
Scoop.it!
Jobs expected to go if competition watchdog approves takeover by Associated British Foods
Graham Watson's insight:
Time to toast a deal to create the UK's biggest bread brand, with Associated British Foods, the owner of the Kingsmill brand - on the point of taking over the Hovis brand, owned by a private equity company. This example of horizontal integration, seems to be a defensive move given that the market is declining in size.
However, in consolidating, the merged group - subject to Competition and Markets Authority approval - are likely to rationalise, closing factories and firing workers. Equally, there a likely to be concerns over the level of competition in the sector, although market leader, Warburtons remains out in front.
Scoop.it!
Talks continue amid warnings from environmental groups over being ‘sold out’ without meaningful or legally binding measures
Graham Watson's insight:
Who would have thought it? Talks on reducing global plastic waste enter their final day without any agreement on a legally binding measure to reduce waste and its associated pollution and negative externalities.
I told you as much when the talks started - lots to ponder here, not least the logical reason why being a free rider, in the short-term at least, might be appealing.
Scoop.it!
Move further unwinds initiative to crack down on anti-competitive practices in agriculture, drugs and labor
Graham Watson's insight:
Not much in the way of detail, more an obvious change of tenor in competition policy - it seems as though President Trump is going to revoke a Biden era Presidential decree that looked to “enforce the antitrust laws to combat the excessive concentration of industry, the abuses of market power, and the harmful effects of monopoly and monopsony”.
President Trump has decided that this is anti-growth - and seems to favour big business.
Scoop.it!
From
www
The toy retailer's 1,900 workers will get a share of profits and a say in how the business is run.
Graham Watson's insight:
Really interesting story about the nature of firm ownership, with the retiring founder of The Entertainer passing the business on to his staff by putting the chain into an employee trust so that the staff can influence its future direction and take a share of the profits.
It's an unusual move but one that reflects the values of the founder, Gary Grant, and the business and perhaps also helps explain why it has remined competitive in a market noted for its low profit margins.
Scoop.it!
Plans have provoked outrage from communities in areas of Great Britain expected to host new infrastructure
Graham Watson's insight:
This could be either Macro- or Microeconomics - as it is I've put in the latter as an example of government intervention, with the government proposing a significant increase in the electricity network to aid the green transition.
This intervention is designed to assuage some of the criticism of this, although, as ever, nimbyism will rear its head.
Scoop.it!
David Black’s decision comes amid intense scrutiny of water companies and criticism of the sector
Graham Watson's insight:
It seems as though the Cunliffe Report into the water industry has seen off the water regulator, with OFWAT being replaced and so the Chief Executive has also decided to fall on his sword too.
It is not a surprise.
Scoop.it!
Despite tough talk on sewage and pay, ministers refuse to challenge the water industry’s broken model – leaving private capital in charge of a troubled public service
Graham Watson's insight:
The Guardian is linking the lack of transparency surrounding the boss of Yorkshire Water's salary is symptomatic of an industry that simply doesn't work in consumer interests. As far as it is concerned, the case for renationalisation isn't open to debate, although it doubts whether the current government has the stomach for the fight.
Scoop.it!
As burger and sausage prices soar, Britons turn to chicken, but extra demand pushes up costs
Graham Watson's insight:
A perfect introduction to demand and supply in action, with the price of BBQ meat rising because of both demand and supply-side factors driving prices up - as a result of a shortage in the market.
Perfect for those students starting their Economics courses in September.
Scoop.it!
From
www
In South Africa, over 40,000 tons of plastic waste, is dumped into the environment each year, and much of it ends up in the ocean. On the frontlines in the fight against this waste are reclaimers who collect and sort waste, and sell recyclables. With support from PROBLUE, its multi-donor trust fund, the World Bank has pioneered waste reclaimer registration in South Africa, with the African Reclaimers Organization. Over 11,000 reclaimers have been registered since 2022, which has helped municipalities to save almost $54 million, created jobs and cleaned up South Africa.
Graham Watson's insight:
This World Bank clip looks at how the registration of waste reclaimers in South Africa has reduced the amount of plastic waste being dumped, replacing it with higher levels of recycling and a reduction in the negative externalities associated with this.
Scoop.it!
From
www
Union Pacific agrees to buy Norfolk Southern, establishing a $250bn colossus with 50,000 miles of track.
Graham Watson's insight:
There could be a historic merger in the Us rail freight sector, with Union Pacific agreeing to buy smaller rival Norfolk Southern. In doing so, it would create a coast-to-coast rail operator, and make it the largest company in the sector, worth $250bn and controlling 50,000 miles of track.
The rationale for the merger would be to make the rail freight more efficient, combining operations and potentially shaving a day or two of cross-country journey times and reducing congestion on the tracks.
Despite trade union opposition, this looks likely to be approved - the current administration takes a much more business-friendly approach to approving merger activity.
Scoop.it!
Exclusive: Increasingly extreme weather a threat to production and supply chains in Britain and elsewhere
Graham Watson's insight:
I'm not sure where to put this but here will do: it's essentially a D&S story of how increased extreme weather events are likely to have adverse supply-side implications. As a result, shortages of certain crops are likely to drive up food prices, with the Autonomy Institute think tank suggesting that food prices are going to rise by as much as a third.
Scoop.it!
From
www
Lithium mined in Chile’s Atacama desert is an essential component of the batteries that power electric cars and solar energy stores. It’s key for the global green transition. But extracting it is causing problems for the communities and environment around where the metal is found.
Graham Watson's insight:
I've already 'scooped' the article that the BBC has produced on this topic but this is the corresponding video clip showing the negative externalities that are associated with lithium mining in the Atacama desert. |
Scoop.it!
Editorial: Historical neglect of vocational training means the sector has a mountain to climb if government housebuilding and infrastructure targets are to be met
Graham Watson's insight:
An example of lots of different basic microeconomic and macroeconomic concepts - derived demand, labour mobility, the price elasticity of supply in the context of the labour market, trade-offs, opportunity cost, infrastructure investment, the multiplier effect, housing targets and so on and so on.
Almost a nice little refresher for those people going into the second year of their post-16 Economics course who wants to see how many of these concepts they can both spot and accurately define.
Scoop.it!
Global talks to develop a landmark treaty to end plastic pollution have once again failed. The UN negotiations, the sixth round of talks in just under three years, were due to end on Thursday but countries continued to negotiate into the night in the hopes of breaking a deadlock.
Graham Watson's insight:
This BBC clip highlights the inability of the global community to agree a deal to end plastic pollution, with the majority of countries looking to reduce plastic production and oil exporters who appear to have blocked the deal. As I suggested - public choice theory would suggest that this would be the case - given the self-interest of the economies involved.
Scoop.it!
Successive chancellors have steered clear of increasing taxes for motorists for 15 years, but this should be a no-brainer for cash-strapped Rachel Reeves, says Guardian columnist Larry Elliott
Graham Watson's insight:
Fuel duty has been frozen for the last 15 years; Larry Elliott thinks that it's time this policy's abandoned: it's fundamentally unfair, is regressive and would generate some welcome tax revenue.
Scoop.it!
The Arla cooperative says five in six farmers receive very few or zero applications for job vacancies
Graham Watson's insight:
The issue of food security is clearly a macroeconomic concern, however, I've put this example of a worker shortage on my Microeconomic board because it suggests that markets aren't working terribly effectively.
The Arla co-operative have noted the low level of job applications in the dairy sector - so what's the solution? It should be self-evident, shouldn't it, in that wages should rise and this would attract more applicants. However, wage rises would have spillover effects in other markets, and increase the price of dairy products.
I wonder why this hasn't happened; is it that markets aren't working in this instance?
Scoop.it!
Industry experts hope the new subsidy will boost Britain’s EV market – but not all models will be eligible
Graham Watson's insight:
The offer of a government grant to encourage take-up of electric cars seems to be a good thing. The subsidy is relatively straightforward, in that manufacturers apply for the grant.
However, the grant only applies to 19 types of car all of which are available for less than £37,000 - which excludes the majority of the market. That said, the grant is dependent upon the manufacturers having clearly-defined targets for emissions cuts. However, Chinese manufacturers have responded by cutting their prices - both moves that should increase quantity demanded.
Scoop.it!
Editorial: Delegates at UN treaty talks must not allow negotiations to be derailed again by fossil fuel interests
Graham Watson's insight:
As UN delegates attempt to agree a deal to reduce plastic pollution, I can't help thinking that we've been down this road before, with climate change, and largely failed to tackle the problem.
There are lots of starting places here, though, the negative externalities of plastic pollution and plastic waste, the policies that might overcome this and the difficulties in reaching international agreement - involving the concept of the free rider problem and the fact that game theory would suggest that even reaching agreement on the issue is going to be difficult.
Scoop.it!
From
www
Molson Coors forecast a drop in its annual profit, hit by tariff impacts on costs of aluminium it uses for its beverage cans amid macroeconomic uncertainty in the US.
Graham Watson's insight:
A nice example of an unintended consequence arising from the imposition of tariffs on aluminium imports is a fall in the profits being made by brewers Molson Coors who are forecasting significantly higher costs as a result and, hence, lower profits.
Scoop.it!
From
www
Automotive industry will have to change techniques and materials as new EU rules come into force in 2026
Graham Watson's insight:
Whilst cars have become greener over time, there are some areas where this hasn't been the case, and for traditional internal combustion engine cars, it seems as though the declining quality of brakepads might have worsened the negative externalities, in the form of particulate matter, associated with braking.
As a result, there's a call for more environmentally friendly brakepads, however, in common with much of the green transition, there are concerns about the fact that they are more expensive.
Scoop.it!
Campaigners say passengers are being priced out, with advance fares in south-east up by almost 10%
Graham Watson's insight:
Whilst regulated fares were capped by the Department for Transport at 4.6% in March, the Office for Rail and Road (ORR) have calculated that unregulated fares have gone up by 5.9% and in some instances, notably in the South East, advance fares have gone up by 10%.
Overall, fares are up by 5.1%, compared with 3.2% inflation - an increase in real fares, with the traditional excuse..."years of under-investment" being wheeled out for the 30th successive year.
Scoop.it!
From
www
The government says thousands of businesses go under each year as a result of invoices being paid late.
Graham Watson's insight:
This is an interesting intervention in markets, with the government seemingly looking to offset the monopsony power of large firms to delay their payments to suppliers, to their own benefit and the detriment of small firms who have a smaller cashflow. It's intended to initially limit invoice terms to two months, before falling to 45 days after five years.
Of course, some large firms have attempted to oppose this - and link it to higher costs associated with the recent increase in National Insurance - but I think this is disingenuous at best.
Scoop.it!
From
www
The firm agrees to fund improvements after Ofwat discovered "excessive spills from storm overflows".
Graham Watson's insight:
OFWAT has levied a penalty on Anglian Water - £62.8m - for its failure to manage storm overflow appropriately - however, the sum looks like it's been earmarked for improving the system, rather than simply being a fine.
However, looked at another way, Anglian's customers are going to be footing the bill for this, with water bills expected to rise to £631 by 2030, from £491 last year.
Scoop.it!
From
www
In South Africa, frequent power cuts is an issue that people have been battling with for 15 years.
Graham Watson's insight:
This BBC clip looks at the rise of solar power in South Africa; whereas it was once the preserve of the rich, it's now becoming more widely available and this is improving the living standards of a greater number of South Africans. |
Changing consumer tastes, excess supply and markets in action. This article looks at why French wine producers might look to adapt traditional red wine production to take account of climate change and consumer tastes. Lots of elementary - but nonetheless interesting basic microeconomic theory.
For me, it's fascinating to note that even with falling supply, there's still a surplus of red wine at current prices.