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Scooped by
Graham Watson
onto Microeconomics: IB Economics |
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The energy regulator Ofgem says it is concerned about customers who cannot afford to keep their meter topped up
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WWF-Norway says the government has breached the law ‘without adequately assessing the consequences’
Graham Watson's insight:
This Guardian article looks at the negative externalities associated with deep-sea mining, with WWF-Norway taking the government to court because it has breached its obligations to protect the marine environment.
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Food group illegally prevented retailers from sourcing products from EU states where prices were lower
Graham Watson's insight:
Naughty, naughty Mondelez having been found guilty of anti-competitive practices by the European Commission of stopping distributors buying and selling their products in different markets, in the search for greater profit.
In essence, it seems like a way of trying to control distribution channels, and runs contrary to EU law. Other firms that have fallen foul of this include VW who at one time used to stop Northern Italian car dealerships from selling to German customers who'd travelled across Switzerland and into Italy to buy cheaper cars.
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Southern Water wants to increase its bills by £436 a year, but is not expected to get approval.
Graham Watson's insight:
The process of negotiating future bill increases in the water industry, with firm's asking for the ability to increase bills by between 24% and 91%, in the case of Southern Water.
At this stage, negotiations with the regulator are a 'game' - in the strictest economic sense of the term - with the firms presumably bidding high in the hope of being allowed to increase their bills by as much as they can.
Given the figures quoted, I'd also like to see the regulator fix executive pay in nominal terms for the 5 year period too; they might start justifying their salaries at this point.
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The FDA is developing front-of-package labels that corporations may have to start printing as early as 2027
Graham Watson's insight:
This lengthy Guardian piece looks at the relative lack of food labelling in the United States where food producers have been reluctant to adopt the sort of traffic light system used in Chile or any other such scheme in the other countries with them.
However, the Food and Drug Administration (FDA) may be on the point of changing all of this and by the start of 2027 this might become law, meaning that food manufacturers have to provide better quality information to their customers, allowing them to make healthier choices and potentially reducing rates of obesity and the negative externalities associated with it.
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Even the English Breakfast Society has welcomed the ‘baozi’ as supermarket chains feed off interest in world food
Graham Watson's insight:
Changing consumer tastes, with the rise of the bao bun is highlighted in today's Guardian, and I have to say they are lovely, not least at the excellent Tiger Bites Pig on Stephenson Street in Birmingham.
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A report suggests shareholders have taken billons but failed to invest as water bills look set to rise.
Graham Watson's insight:
A report from the University of Greenwich suggests that water industry investors have banked over £85bn in dividends since the sector was privatised, perhaps explaining why there's been such a lack of investment in the sector.
However, the figure is contested by both the water companies and the water regulator, OFWAT.
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Luxury-wine makers, producing some of the most expensive wine in the world, will pay up to $50,000 for a single barrel to age their wine. But not just any barrel: a foudre. A foudre is a massive wooden vat that impacts and preserves the overall taste of the wine. Making a foudre starts with French oak, a tightly grained wood that adds unique flavoring to the wine. Cooperages like Foudrerie François pay close attention to the quality of the wood they source to make the foudres they sell and ship all over the world. The wood is so precious — and so expensive — that the French government heavily regulates its sales through annual auctions of oak forest plots.
Graham Watson's insight:
One of the more unusual luxury goods - French oak barrels - this clip looks at the use of these barrels in wine making, and the unusual regulation of the market.
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The water firm made 60,000 sewage spills last year but insists river quality is improving.
Graham Watson's insight:
I'll just leave this here - and allow you to reflect on executive pay - is this another instance of the labour market operating efficiently or not? And how is the story presented?
Might the photo of Liv Garfield, the CEO of Severn Trent, affect how you feel about the article, and is there some inherent sexism at play: do we react differently to a female CEO earning such a large salary relevant to a male CEO.
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There has been an unexpected slowdown in sales of electric cars. Could this be more than a blip?
Graham Watson's insight:
The BBC appear to have gone big on this new format - InDepth - perhaps to conceal what I think is the generally lower quality of their Business offering.
This piece looks at the electric car sector and poses the question as to whether the sector is struggling. This is because the ambitious targets for decarbonization of transport are going to require ever-faster sales of electric cars to reach proposed targets.
There's some interesting stuff here - but for me it's also illustrative of the fallacy that progress is going to be linear; it rarely is, and there were always going to be bumps in the road at some point, largely as a result of supply-side constraints.
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Polytag system prints invisible tag on to containers, which can be picked up by readers located at recycling centres
Graham Watson's insight:
An interesting application of technology to the issue of plastic waste with Marks & Spencer using new technology, and an invisible tag on its plastic containers, allowing it to track them and see how they're disposed of.
In theory, it should allow for the more efficient disposal of plastic waste in future.
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Nio's new brand Onvo has launched its challenger to the world's best-selling electric vehicle.
Graham Watson's insight:
There's greater competition in the market for electric cars, and the launch of Nio's new brand Onvo has been heralded as indicative of this.
According to the article "With prices starting at 219,900 yuan ($30,465, £23,990), the L60 SUV is more than 10% cheaper than the world's most popular EV, Tesla's Model Y, which has a price tag of 249,900 yuan." And in a market where price might be a significant determinant of demand, that could give the company a competitive advantage in the world's largest electric car market.
It will be interesting to see how quickly the Onvo reaches the EU and the UK...
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The announcement comes after Anglo American rejected a £34bn takeover bid from rival BHP.
Graham Watson's insight:
It seems as though the takeover bid from BHP has prompted Anglo-American to restructure its business - perhaps an admission of diseconomies of scale - to focus on key areas, notably copper, iron ore and crop nutrients.
As a result, the company is spinning off its DeBeers diamond business and its platinum mining business too.
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No longer just drunk for courage at karaoke clubs, the ‘food-friendly’ rice spirit is becoming a first choice of connoisseurs
Graham Watson's insight:
Changing consumer tastes with the growth of the market for sake as consumers have started to consume greater quantities of the Japanese national drink. |
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A household using a typical amount of gas and electricity will pay £1,568 a year.
Graham Watson's insight:
The energy price cap is falling with the average bill due to fall by £122 in July, to £1,568, the lowest for two years.
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The inquiry comes amid worries that there is lack of information available for pet owners.
Graham Watson's insight:
The Competition and Markets Authority (CMA) have announced an investigation of the market for veterinary care, citing a lack of information in the market, a lack of choice for some, the sizeable profits earned by some veterinary companies and the ongoing regulation of the sector.
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Employers in UK, one of 15 countries studied, willing to pay 14% wage premium for jobs requiring AI skills
Graham Watson's insight:
It seems as though jobs that require AI skills are now earning a wage premium, with people in those sectors earning 14% more than other workers, because these skills boost their productivity.
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Airline profits rise despite fuel costs as it warns deliveries of Boeing jets could be further delayed
Graham Watson's insight:
A 20% rise in fares has seen Ryanair's profits rise by "34% to €1.92bn (£1.64bn) despite a sharp rise in fuel costs". Surprisingly, this seemingly implies that the demand for fares is inelastic - with the rise in price seeing a less that proportionate change in quantity demanded, although, of course, other conditions of demand are likely to have changed, so other factors are likely to have contributed to the airline's stronger performance.
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Pent-up demand from would-be buyers pausing their plans last year has led to price rise despite mortgage rates remaining elevated
Graham Watson's insight:
D&S basics - with the added bonus of the macroeconomic implications of rising house prices...
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Plastic is one of the most incredible materials in the modern world - but the way we use it damages the environment. What’s the solution?
Graham Watson's insight:
This BBC clip looks at the double-edged nature of plastic: it has significant utility, but how well do we use it? The clip highlights the extent to which it is useful, but also the extent to which plastic waste generates negative externalities.
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If the forecast proves correct, it would mean a typical annual bill could be £500 lower than last summer.
Graham Watson's insight:
Cornwall Insights are forecasting another 7% fall in energy bills and the energy price cap this summer, meaning that, if true, bills would be £500 lower than the same time last year.
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The firm has huge debts and it may have to be taken over by the government if it runs out of money.
Graham Watson's insight:
The BBC looks at the fate of Thames Water, wondering if the decision of the representative of its major shareholder to resign from its board, is particularly significant. It also speculates as to the options that exist should the firm collapse, including renationalisation.
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It says the move is due to customer demand for cheaper prices in the wake of the cost of living crisis.
Graham Watson's insight:
A follow-up to the news that the price of British lamb has spiked - Morrisons is now offering New Zealand lamb as an alternative. Lots of lovely concepts - XPED, the nature of demand in a market (to what extent is the demand for lamb price-determined?) and the implications of the move for the Morrisons brand.
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Cold and wet weather also thought to have led to more lambs dying in early season, as Morrison drops 100% British lamb pledge
Graham Watson's insight:
D&S and Brexit help explain the fact that the wholesale price of British lamb has reached £8.50 per kilo, with increased demand from Easter and Eid and falling supply due to cold weather, disease and import problems.
However, the flip side of this coin is that Antipodean lamb - from Australia and New Zealand has fallen to £3 per kilo, as a result of a glut, so you might also be able to bring in cross price elasticity of demand to explain the implications of this for British farmers.
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Ken Murphy's package includes a pay-out from shares awarded after he joined the supermarket giant.
Graham Watson's insight:
Executive pay: I love hearing the justifications for paying Chief Executives large sums. In this case, Ken Murphy, the CEO will see his pay and bonus package double to £10m. Put in simple terms that's £38,451.54 per day, far higher than the average income in the UK, and indicative of the fact that Mr. Murphy is clearly many hundreds of times more productive than the ordinary worker.
At least the High Pay Centre recognises the lunacy of these sort of pay packages.
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The first in a series exploring the myths and realities surrounding heat pumps
Graham Watson's insight:
The Guardian explores the running costs of heat pumps and argues that, in cost terms, there's currently little to choose between running a heat pump and a conventional gas boiler at present. However, the most efficient heat pumps are cheaper to run, and this is only likely to improve.
It's another example of why perfect information is important in helping markets to operate efficiently; it's believed that many UK consumers aren't fully aware of their benefits/running costs. |
Ofgem is concerned about rising fuel poverty in the UK; it should be. Fuel costs have outstripped average earnings in the recent past, particularly for the poor who pay more for their energy via pre-payment meters.