Finance is a really odd section for me to have. I don’t come from a finance background, I have no interest in fin-tech. Yet it makes its appearance here on this blog.
When thinking about this category, I decided to reflect on why its here. It’s usually where curated content sits, rather than my own ideas.
The reality of life in the west is that everything has become financialised. As I write this as people think about web 3.0, they are thinking about payment systems first and working about utility later. This implies that the open web we know won’t be part of the metaverse in terms of ideas or ethos.
Instead of economic growth consumer spending depends on different ways of creating credit. Its no accident that delayed payments finance company Klarna is the biggest thing in European e-commerce at the time of writing this page.
Back when I started writing we were heading into the financial crisis of 2008, the knock on effects of that could still be felt a dozen years later and was a contributing factor to Brexit and Trump victories. The ‘occupy’ movement was catalysed by the financial crisis and then turned into something else. For instance it became a pro-democracy movement in Hong Kong.
We had the implosion of financial brands like Lehman Brothers and the Royal Bank of Scotland. This created a lack of trust in business, the media and the government. We are still seeing that play out today, from cryptocurrency to conspiracy theories and a lack of trust by the public in experts.
Horns that seemed to portent the apocalypse and stuttering dialogue: ‘none of them received a heroes welcome, none of them, none of them. None of them received a heroes welcome’. This was the soundtrack of 1985 as part of Vietnam Requiem sampling 19 by Paul Hardcastle. At the time the sampling got me interested in music, production, technology and DJ’ing – which pretty much set the path for the various stages of my career to date.
The best part of four decades later and I finally got the see documentary that was responsible for much of the samples in 19. I can understand how Vietnam Requiem might have profoundly affected Paul Hardcastle at the time.
Scott Galloway on Silicon Valley Bank’s collapse and the rise of Saudi Arabia. More on SVB here.
BMW M1
I am a huge fan of the BMW M1 and have written about it before. So I wanted to share this documentary by Jason Cammisa on the car. The putdown of modern BMW’s current 2-series range as ‘Grand Corollas’ is actually an insult to Toyota.
Driving Japan
Before I moved to London, I had a car and drove everywhere. I even drove for leisure. One of my favourite drives was going past the local oil refinery and associated chemical works late at night for the dystopian cyberpunk vibes of mercury vapour lamps reflected from matt zinc coated lagging.
These videos of driving in Japan gave me a similar sense of enjoyment.
Au campaign
KDDI cellphone service brand Au are looking at metaverse and Web 3.0 value added services, which partly explains this new campaign. I think that it is interesting as it reminded me of CD-ROM era motion comic and how Midjourney and Stable Diffusion can be used to reduce production costs on a campaign.
If this all feels a bit 2021, its because large corporate take time to catch up with where things are. I can also understand the attractiveness of the metaverse and digital assets as a concept in modern Japanese culture. Even if it is out far, far ahead of where technology is actually going.
Silicon Valley Bank funded this documentary about their history from their founding in 1983 to 2003. It’s now preserved by the Computer History Museum in Mountain View – one of the towns that make up Silicon Valley.
Bloomberg have done a programme explaining about what happened with Silicon Valley Bank and how it went under so quickly. Silicon Valley Bank had problems due to raising interest rates, issues with their risk management and an abnormally high amount of customers withdrawing funds. However there was also an issue about the way Silicon Valley Bank communicated with the market, which in turn created a crisis in depositor confidence.
Health
Alphabet’s keynote and plans for the health industries. Usual nod to privacy (hahahaha), cloud computing, consumer devices and AI.
Chinese tourists unwilling to pay extra for sustainable travel options even as concern about climate change on the rise, McKinsey and Trip.com report says | South China Morning Post – Chinese travellers are increasingly concerned about climate change and are aware of their environmental footprint, but are still not ready to pay extra for sustainable travel, according to a recent report by consulting firm McKinsey & Company and Chinese travel services provider Trip.com Group. Data from McKinsey, which surveyed a total of 5,457 respondents from 13 countries including China, the United States, India and Saudi Arabia, showed that more than 60 per cent of Chinese travellers were worried about climate change and believed that commercial aviation should become carbon neutral in the future, putting China near the top among the countries surveyed. A separate survey conducted by Trip.com last year showed that almost 85 per cent of Chinese travellers rated sustainable travel as important or very important. However, compared to travellers from other countries, Chinese tourists are reluctant to pay a premium for sustainable travel. Only 20 per cent of surveyed Chinese tourists said they would pay 2 per cent extra for carbon-neutral airline tickets, ranking near the bottom among the countries surveyed – well what would you expect when you have been repeatedly told by your government and media that the west and the United States is to blame for it all anyway? Secondly, civil society like Greenpeace or the Sierra Club can’t operate in China which will also affect awareness
More on the serious issue of violent crime for luxury watches in London. I wrote recently about the ‘London Watch‘ where watch wearers have an empty wrist when going around central London. This is going to negatively impact everything from luxury sales to hospitality and tourism in the UK at a time when the economy can ill-afford to turn down business.
Dow said it was recycling our shoes. We found them in Indonesia | Reuters – Reuters put trackers in usable secondhand shoes to see where they would end up. The main gist of the story is that Dow recycling effort was a failure, which is also embarrassing for their partner the Singapore government.
The idea was the sneakers would be made into playground surfaces. Reuters seems to have stopped investigating the story of Dow recycling shoes, but I was left with more questions about Dow recycling than answers from the Reuters report:
Were some of the shoes more distressed than others?
Do Reuters know what happens to unwearable sneakers that enter the Dow recycling process?
Is it more ethical to sell on lightly used shoes as affordable footwear to Indonesians or recycle them regardless? Reuters doesn’t have an answer to this issue
UK struggles with transition to manufacturing electric cars | Financial Times – foreign carmakers’ core concern is that Britain’s reputation as a stable and pragmatic place in which to manufacture vehicles has been shattered, initially by the 2016 Brexit vote, and more recently by last year’s political turmoil at Westminster. “They are asking whether the UK is a stable partner,” said one person close to the Japanese companies. – Brixiteer economic expert Patrick Minford openly discussed the demise of the car manufacturing industry
Women and ethnic minorities overrepresented in advertising industry, finds report – Women and ethnic minorities are now overrepresented in the UK advertising industry following a decades-long push to improve diversity, according to a new survey. A 2022 census found that an estimated 55pc of employees in the sector were women, compared to 45pc who were men. That was after the number of women increased from an estimated 11,600 to 14,400, an increase of 24pc, the Institute of Practitioners in Advertising (IPA) said. At the same time, the proportion of non-white employees increased by almost one third to 24pc, compared to 18pc a year earlier. Women made up 51pc of the population in England and Wales in 2021, according to the Office for National Statistics, while non-white ethnic groups comprised about 18pc. In London, where most of the UK’s advertising industry is concentrated, non-white ethnic groups represent roughly 46pc of the population. The IPA said there was more work to do on diversity, as women still only get just over one third of executive jobs in the ad industry, while non-white individuals only occupy 11pc of roles. – Daily Telegraph on how it feels that ‘woke’ addend risks becoming ‘out of touch’ with the British public, but doesn’t manage to make its argument very well.
Walt Disney vs Ron DeSantis: who really won the ‘Don’t Say Gay’ dust-up? | Financial Times – Instead of candidates with backgrounds in economic development or tourism, he packed the board with political allies. Two of them are leading lights in the culture wars that have helped DeSantis build a national profile ahead of a presumed run for the 2024 Republican presidential nomination. Among them is Bridget Ziegler, co-founder of the conservative Moms for Liberty group and a champion of Florida’s Parental Rights in Education law, dubbed “Don’t Say Gay” – Disneyland Florida is pretty screwed
I don’t care that much about the comings and goings of the Royal Family, let alone minor players like Harry and Meghan. I am a citizen of a republic not a subject of the Windsors. I can remember watching the first wedding of Princess Anne on our black and while television. But beyond the sound of the wedding march; I really didn’t have much of a clue of what was going on. My Mam went around the kitchen doing what she needed to be done. This was on in the background, but didn’t feel important.
By comparison, watching the state funeral Eamon de Valera; had much more of an impact. I could feel the seriousness of my grandparents and my Uncle who lived on the family farm watching the procession of the flag-draped coffin through Dublin to Glasnevin cemetery.
I have been vaguely aware of controversy surrounding Harry and Meghan, but not the detail. I know, that if I asked, my Mum would be able to give me a blow-by-blow account while my Dad would roll his eyes. If you’d have asked me three months ago if I would have been writing part of a post focusing on Harry and Meghan, I would have expressed a strong doubt.
South Park
That all changed when they saw South Park’s episode about Harry and Meghan’s ‘worldwide privacy tour’. It seemed to be a lightning rod for their collective doubts about the couple. I then had to give them a crash course on the cultural relevance of South Park. Hong Kong friends didn’t ask about Harry and Meghan, but instead asked why South Park used Harry and Meghan to pick on Canada?
Political theorist and author Francis Fukuyama wrote one of the mis-understood books of the late 20th century. The End of History (And The Last Man) was written in 1989 and the title and Francis Fukuyama have been misquoted endlessly since.
At the 2020 Munich Security Conference Francis Fukuyama gave a talk about the book and what it actually meant from his perspective.
This one on tribalism on and populism is also very interesting.
Business
Great video on the history of HNA, which went under a mountain of debt and was unwound by the Chinese government.
HNA started off as Hainan Airlines before expanding internationally and across sectors.
Wokeness as mainline orthodoxy – Noahpinion – Musa al-Gharbi has a recent article with quite a bit of data showing that journalistic and academic attention to the topics of diversity, bias, privilege, and so on seems to have peaked, while “cancel culture” incidents have decreased on campuses and in corporations, and political opinions on various social issues have moderated a bit. Anecdotally, corporate interest in DEI seems to be waning as well. Other observers like Tyler Cowen have noticed the trend.
Luxury
Survey Finds Japanese People’s Dream Car Is a Lexus | Nippon.com – bad news for Mercedes & BMW. This isn’t about Japanese nationalism as Mercedes and BMW have enjoyed healthy sales in the country in the past. Much of this is about the massification of these brands and the decline in quality in comparison to the single-mindedness of Lexus engineers.
Marketing
The Drum | How Nestlé Is Using AI To Set Creative Rules For Its 15,000 Marketers – In 2021, Nestlé started to put all its creative through an AI platform that would rank ads based on their suitability to different online platforms and pull out the key elements that are required for maximum ROI. That process created a set of ’rules’ for successful campaigns and early tests generated transformational results, finding that ads that meet the new creative requirements generate a significantly higher return on ad spend. Now, Nestlé’s 15,000 marketers across 2,000 brands in 200 territories have to test the ads in the machine learning platform prior to rolling a campaign out – my biggest concern is that this becomes reductive in terms of creativity and self reinforcing rather than facilitating the picking of true winners. Secondly, I could see it over-indexing on brand activation rather than brand building spend and ultimately destroy value
