Thursday, July 31, 2014

7 Cover Letter Mistakes That Will Sink You - TIME

http://time.com/3043580/cover-letter/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 28, 2014
    


Cover letters don’t get a lot of love. And considering how tough it is to write a good one, it’s kind of understandable that people tend to throw them together at the last minute (or update one they wrote last month), attach it to their resume, and call it good.
But this, my friends, is the biggest cover letter mistake you could make. In fact, this document is the best chance you have to give the hiring manager a glimpse of who you are, what you bring to the table, and why you—above all those other candidates—are the one for the job.
Don’t give up your chance to share your best qualifications in a fresh, unique way. And while you’re at it, don’t make these seven other common cover letter mistakes I see all the time.

1. Starting With Your Name

How do you start a cover letter? Let me set the record straight now and say it’s not with, “My name is John Smith.” Unless you’re already famous, your name just isn’t the most relevant piece of information to start with. Not to mention that your name should be listed on your resume, the sign-off in your cover letter, and in other parts of your application.

Instead

Start with a relevant qualification as a way to introduce yourself. If you’re a recent grad with a passion for environmental activism, go with that. Or, maybe you’re a marketing professional with 10+ years of healthcare industry experience—introduce yourself as such, and connect it to the position you are applying to. (Here’s a bit moreabout kicking off your cover letter with an awesome opener.)

2. Rehashing Your Resume

If your cover letter is basically your resume in paragraph form, you’re probably going to need to start over. Your resume likely the first thing a recruiter looks at, so you’re wasting your time (and the recruiter’s) if your cover letter is a harder-to-read version of something he or she has already seen.

Instead

Focus on one or two (OK three, max) examples of your work that highlight what you can bring to the position, and try to help your reader picture you doing the work by really diving deep and detailing your impact. You want the hiring manger to be able to imagine plucking you out of the work you’re describing on the page and placing you into his or her team seamlessly.

3. Not Being Flexible With the Format

Remember those three paragraph essays you wrote in middle school? Your cover letter is not the place for you to be recalling those skills. Rather than fitting your message into a particular format, your format should be molded to your message.

Instead

Consider what message you’re trying to get across. If you’re going to be spending the majority of the letter describing one particular relevant experience—maybe that three-paragraph format makes sense. However, if you’re thinking about transferable skills or want to explain how your career has taken you from teaching to business development, a more creative approach could be appropriate. I’ve seen cover letters use bullet points, tell stories, or showcase videos to (successfully) get their point across.

4. Going Over a Page

There are always exceptions to the rule, but in general, for resumes and cover letters alike, don’t go over a page. Unless you’re applying for a managerial or executive position, it’s unlikely a recruiter would look beyond your first page of materials anyway.

Instead

Keep it concise and, ideally, wrap up around three quarters of the way down the page. Remember that you’re not trying to get everything on one page—you’re trying to entice the hiring manager enough to bring you in for an interview. Think of your cover letter as the highlights reel of your career.

5. Over Explaining

Are you a career changer or doing a long distance job search? No matter how complicated your reasons for applying to a job are, it would be a mistake to spend an entire paragraph explaining why you’re moving to San Francisco from New York.

Instead

If your reasons for applying to a position would be made clearer with some added explanation, add them in, but keep them short. Limit yourself to a sentence either in the first paragraph or the last paragraph for a location change, and no more than a paragraph to describe a career change.

6. Focusing Too Much on Training

Maybe you just finished your master’s degree or finally got the hang of coding. Great! But even if your most relevant qualification is related to your education or training, you don’t want to spend the majority of your time on coursework. At the end of the day, what hiring managers care about most is your work experience—what you can walk through the door and deliver on Day 1.

Instead

Certainly mention your educational qualifications if they are relevant, but focus the bulk of your cover letter on experiences. Even if your most relevant experience is education, present it more in the form of projects you worked on and job-related skills you gained, rather than actually explaining course content.

7. Sharing Irrelevant Information

Cultural fit is one of those big buzzwords in the recruiting world now, and there’s no question that it’s important to tailor your cover letter to each company to show your compatibility. But it starts getting a little weird when you start writing about your bowling league or active social life. (And don’t try to tell me this doesn’t happen—I’ve seen it.)

Instead

A better way to show that you’re a good cultural fit for the job is to focus on values—not activities. Mine company websites for the way they describe their company culture, then use that intel to show how your own values align. (Here’s some moreon how to show you get the company culture in a cover letter.)

For the companies that have moved away from a cover letter requirement, an additional opportunity to show off what you have to offer is lost. But, for those that require cover letters or at least make them optional, you should absolutely make the most of them—and, of course, avoid these all-too-common mistakes.

Wednesday, July 30, 2014

4 Ways the TSA Could Really Speed Up Airport Security Lines - TIME

http://time.com/3056046/airport-security-lines-tea-contest/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 29, 2014
    
We've all been thereAndrew Harrer—Bloomberg/Getty Images

There's actually a science to these things


The Transportation Security Administration needs your help. The organization that scans your bags and invariably yanks your spouse out of line for the hairy-eyeball treatment when you are late for a flight desires to do something about wait times. I’m presuming that the TSA wants to make the lines shorter. Maybe I should double check.

This doesn’t seem like a particularly difficult goal in some respects. Here’s the way the TSA worked at the Delta terminal at New York City’s LaGuardia Airport on a busy afternoon the last time I was flew: There were two positions open to check IDs and three screening lines for bags and people. The line was nearly out the door. I’m no math expert, but I’m thinking that increasing the number of screening lanes by one increases throughput by 33%. Just a guess.
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Increasing capacity—that is, adding ID checkpoints and scanning lanes—or at least manning all available lanes, seems like the most obvious way to shorten the lines. But that would involve spending more money, and Congress has proven again and again that it cares little for the flying public, which helps explain the current state of flying.
So instead, TSA is trying to crowdsource a solution. It is looking for someone or some group that can create the Next Generation Checkpoint Queue Design Model. Your model will have to incorporate the TSA’s (very successful) Pre Check program, along with plans to accommodate coach, business/first, crew and special needs passengers. Do that successfully and the TSA will reward you. The agency is handing out $15,000 in prize money for the best ideas, including a $5,000 top prize.
Glad to help:
Ban mobile phone calls in the queue. People who talk on the phone while simultaneously trying to get out their laptops and take off their shoes ought to be shot, but I’m willing to merely silence them to speed things up.
Start a Spirit Airlines line. Passengers on ultra-low cost carriers like Spirit and Allegiant are, let’s say, inexperienced at air travel; okay, hopeless. Even with their own line, they’ll still take forever.
Make every airline charge more for using the overhead bins than for checked baggage. Higher fees=fewer bags=shorter waits. Stop hating me. In an ideal world, all baggage would go underneath—for free—and show up 10 minutes after landing.
Fine the TSA for delays. Airlines get fined, so why not the TSA? If it takes me more than 20 minutes get through, the TSA is not doing its job right.
Have a giant, discount health and beauty store at every airport. No need to bring all that product in 3-oz. bottles. Just order in advance and buy’em at the airport, cheap.
There is indeed a science to lines, whether it’s applied to supermarkets, tollbooths, amusement parks, fast food joints, or in the bakery chain Le Pain Quotidien in my office building, where the front end system was designed by people who think dentistry isn’t painful enough. The science is known as queuing theory, and it was invented in 1909 by Danish physicist and mathematician A.K. Erlang to try figure out the optimal size of a central telephone switch to accommodate the most customers most of the time. One of queuing theory’s later advances is something called Little’s Law, expressed as L = λW , where L is the expected number of users in a queuing system, W is expected time in queuing system per user, and λ is the arrival rate. Seems easy, right?
Nope. The TSA’s problem is far more complex because it’s not a steady state system—it ebbs and flows based on the time of day and number of flights, among other factors. “The math gets really hairy, really fast,” says Dick Larson — “Dr. Q” — who teaches queuing theory at MIT. “No human knows how to derive the actual equations.”
Companies like Disney use simulations even before they create rides to try to predict the lines, says Larson, but the math attached to security lines is surely beyond the TSA. “I wish them luck,” he says.
Larson believes that half of the problem in queuing is psychological. People are stressed out about making their flights, about their cranky kids, about setting off an alarm and being groped by TSA agents. Larson’s suggestion for improving matters isn’t mathematical, it’s behavioral. “The key idea is stress reduction versus duration reduction,” he says. “If you can reduce the stress, the complaints would plummet.”
That could be done by guaranteeing that people who arrive at the security line within the airline’s minimum will make their flights, for instance. Diversion may help too. In post World War II New York, office workers in skyscrapers often faced long waits for elevators. The solution wasn’t more elevators, which was not possible. Instead, landlords mirrored the walls at the elevator banks; complaints dropped as worker bees had something to take their minds off the wait.

You can’t do that in airports, but maybe there’s a similar approach. Comedians? A brass band? Magicians? Or how about security-line mimes? Then passengers would have something to hate more than the TSA and the airlines.

Tuesday, July 29, 2014

These 5 Facts About Apple Will Blow Your Mind - TIME

http://time.com/3043545/5-apple-facts/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 28, 2014
    

Even in a slow quarter the iPhone by itself generates more revenue than all of Amazon


This post is in partnership with Fortune, which offers the latest business and finance news. Read the article below originally published atFortune.com.
After Apple reported its quarterly earnings Tuesday, Slate’s Jordan Weissmann offered several eye-opening comparisons. Among them:
  • If the iPhone were a company in its own right, it would be bigger than McDonald’s and Coca Cola combined.
  • The iPad generated more revenue last quarter than Facebook, Twitter, Yahoo, Groupon, and Tesla combined.
  • Apple’s sales from hardware accessories is larger than Chipotle’s revenue.
  • Apple’s iTunes, software, and services businesses are bigger than eBay.
  • While sales of the old iPod line may be shrinking, it’s still 77% larger than Twitter.

Monday, July 28, 2014

10 Things Americans Have Suddenly Stopped Buying - TIME

http://time.com/money/3030959/guns-gum-soda-cereal-gluten-sales-drop/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 26, 2014
    
Ross Culshaw—Getty Images

America is just not the clean-shaven, gun-buying, soda-drinking, Chef Boyardee-eating place it used to be

For a variety of reasons—including but not limited to increased health consciousness, the harried pace of modern-day life, and plain old shifting consumer preferences,—Americans have scaled back on purchases of many items, sometimes drastically so. Here’s a top 10 list of things we’re not buying anymore, at least not anywhere near as frequently as we used to.
Cereal
In one recent four-week period, cereal sales were down 7%, and cereal giant Kellogg’s sales decreased 10%. The reasons for cereal’s declining dominance at the breakfast table are many. As theWall Street Journal reported, consumers are more apt nowadays to turn to yogurt or fast food in the morning, and they’re less likely to have time to eat breakfast at home at all—not even if it’s a simple bowl of cereal.

Consumers also want their breakfast to pack more punch, protein-wise. “We are competing with quick-serve restaurants more, but the bigger driver is that people want more protein,” Kellogg CEO John Bryant told the Journal. It’s no coincidence that milk sales have been falling alongside cereal, with cow’s milk struggling especially due to the rise of alternatives like soy and almond milk. (Sales of yet another breakfast-at-home staple, orange juice, have plummeted 40% since the late 1990s.)
To try to put cereal back on the spoon of more breakfast eaters, food makers have been resorting to all manner of gimmicks, including the promoting of new higher-protein cereals, as well as the idea thatcereal is a great late-night snack rather than just a breakfast-time basic.
Soda
The crash of soda—diet soda in particular—has been years in the making, with consumers increasingly turning to energy drinks, flavored water, and other beverages instead of the old carbonated caffeine drink of choice. The latest Wall Street report from Coca-Colashowed that the soda giant missed estimates, partly because sales of Diet Coke in North America fell in the “mid-single digits.”

While a lot of soda’s slump can be attributed to shifting consumer preferences—more organic, less sugar—the broader war on sodainvolving taxes and big-beverage bans must factor in too. And if First Lady Michelle Obama has any say in things, the decline of soda is a trend that’ll continue: Her ongoing “Drink Up” campaign encourages kids to consume more water—and, consequently, less soda.
Gum
Likely due to heightened competition from mints and candies, chewing gum sales have dipped 11% over the past four years, theAssociated Press reported. The editorial board of the News Tribuneof Washington state, for one, weighed in that it is wonderful that gum sales are down in the gutter, sniffing, “Gum-chewing doesn’t do us any favors, making us look like cows chewing our cud. For humans, that’s not a good look.”
Guns
Gun sales have been booming in recent years, with sales periodically juiced when perceived anti-gun politicians enter office or a high-profile mass shooting takes place, prompting consumers to seek guns for protection—or just out of fear they won’t be able to buy them in the future because tougher gun regulations might be passed.
Lately, however, gun sales have fallen, sometimes sharply. The big reasons why this is so seem to be that there’s little in the way of likely gun control for gun enthusiasts to motivate new purchases, and also that everyone who has wanted to buy a gun in the past couple of years has already bought one (or seven). In the first quarter of 2014, the guns-and-ammo-focused Sportsman’s Warehouse retail chain saw comparable stores sales drop 18%, while gun sales at Cabela’s fell 22%.
But a little perspective is necessary. While guns sales and background checks are down compared to the past couple of years, they remain far above the levels of the early ’00s. As gun industry experts have put it, the decline probably just represents a “returning to normal” for gun sales—which aren’t as strong as they once were, but are still very strong nonetheless.
Cupcakes
Well, it looks like many of us at least have stopped buying the pricey “gourmet” variety of cupcakes. That’s the conclusion to be drawn with the collapse of Crumbs, the 65-store chain that shut down abruptly in early July. The news was widely interpreted as a sign that the gourmet cupcake trend is officially dead.
Chef Boyardee
ConAgra recently issued a warning to Wall Street that its consumer food volume experienced a 7% decline, and that it faced “continued profit challenges” due to some of its flagging, tired products—in particular, Chef Boyardee, the 86-year-old canned pasta brand.
Golf Gear
It’s not surprising that going hand in hand with fewer people playing golf, there are also fewer golf purchases being rung up at sporting goods store registers. The most notable eye-opener occurred this past spring, when Dick’s Sporting Goods announced that its golf equipment sales were down around 10%, at the same time the average driver was selling at a price of 16% less.

Razors
Beard-loving hipsters were blamed for the decline in razor sales last summer, and in 2014, razor giants like Procter and Gamble (owner of Gillette) has continued to blame poor sales on the trendiness of beards. Everything from the shaggy beards worn by the World Series champion Boston Red Sox, to month-long no-shave “challenges” likeMovember and Decembeard have been cited as reasons why guys have scaled back on razor purchases. In response, marketers have introduced even more varieties of new high-tech razors, while also pushing the concept of “manscaping,” with special razors designed just for the task. The hope is that even if men aren’t shaving their faces, they might still shave one or several other parts of their bodies.
Bread
According to one survey, 56% of American shoppers said they are cutting back on white bread. White bread was surpassed in sales by wheat bread sometime around 2006, but in recent years the gluten-free trend has hurt sales of all breads. Sales are even down in European countries like baguette-loving France, where consumption is down 10%. In American restaurants, meanwhile, there’s anepidemic of free bread disappearing from tables, as fewer owners want to bear the expense of putting out free rolls and other breads that no one is going to eat.
Convertibles
The fun-loving, wind-in-your-hair thrill of driving in a convertible just hasn’t been enough to keep consumers buying the classic ragtop in strong numbers. Businessweek noted that convertible sales have fallen 44% since 2004, and automakers have been significantly scaling back the number of models that are even offered in convertible form. Apparently, too many consumers see convertibles as impractical, and/or not worth the $5,000 or so premium one must pay compared to the regular model.

Data recently released from Experian Automotive indicates that the convertible is largely now a toy purchased by the rich. Nearly 1 in 5 convertible buyers have household incomes of at least $175,000 (compared to 11% of buyers of all cars), and 12% of convertible buyers own homes valued over $1 million (compared to 4% of buyers of other cars). For what it’s worth, convertible drivers are also better educated than the average car owner (50% of convertible buyers have at least a bachelor’s degree, versus 38% overall), and nearly one-quarter of all convertibles are now purchased in three sunny states with ample coastlines: California, Florida, and Texas.

Saturday, July 26, 2014

Only Germans Think They Are Helping to Fix Global Warming - TIME

http://time.com/3028723/germany-climate-change-coal-poll/

July 24, 2014
    
Wind turbines stand behind a solar power park on October 30, 2013 near Werder, Germany.Sean Gallup—Getty Images
Germans have a pretty high opinion of themselves when it comes to environmental stewardship, according to a recent TIME poll, but their pride might be a little premature.
From among six large countries surveyed in a recent TIME poll, only Germany sees itself as more a part of the solution to global warming (60%) than part of the problem (40%). Only in Germany did the majority of poll respondents report that their country has a “mostly” or “somewhat positive” role in combating global warming.
The TIME poll surveyed 3,505 online respondents between May 10 and May 22 from the Germany, the United States, Brazil, Turkey, India and South Korea, with an equal number of respondents in each country. The margin of error in the survey is 1.8%.
Despite their environmentalist pride, Germans are not optimistic about the ability of the world as a whole to change its polluting ways—just 19% of Germans think the planet can reduce carbon emissions by 80% by 2050, compared to 37% of respondents overall.
The Germans’ pride likely stems from Energiewende, or “energy transition,” Germany’s closely-followed effort to ramp up energy production from renewable sources. The country has indeed significantly increased solar and wind power, and the American Council for an Energy Efficient Economy in April found Germany to be the most energy-efficient major economy on earth. Germany hit a new record around noon on a day in May this year, producing 74% of its electricity needs from renewable sources.
The problem is that, while solar power plants may be super-effective power producers at noon on a sunny day, without scalable energy-storage technologies they aren’t so effective producing power for other times—when it’s dark, for example. Because Energiewende has been accompanied by a rapid move away from nuclear power following the Fukushima disaster Germany has had to make up its energy deficit by increasing its reliance on coal for the first time in years. German CO2 emissions have actually been rising over past three years.

The country is continuing to perfect and expand its renewable energy portfolio and may one day succeed in cutting back again on its coal habit. For the time being though German perceptions aren’t quite in line with the reality.

Friday, July 25, 2014

A Small World Concept - in Science of Networking

A Small World

The Small World Concept is derived from the notion that in this vast and complicated world there are bound to be some common threads that link people and things together through some underlying connections which may not be obvious at first glance. These subtle links will reveal themselves if we observe the system from the right perspectives and the Science of Networks will provide us with the tools to carry out such observations and analysis.
In 1967, a US social psychologist called Stanley Milgram conducted a strange experiment. He sent a number of letters to various unrelated persons in the Mid- West . He explained in his letters that each letter was, in fact, intended for one of his sharebroker friends who lived in the Boston area whose address he had mislaid. The recipients of his letters were asked to try their best to assist him in forwarding the letter to this friend of his with just the details of his friend's name and profession. As if by divine intervention, most of his letters reached the hands of his sharebroker friend in Boston in something like six steps. This was the birth of the now famous phrase - “ Six Degrees of Separation “ after which a movie was made. As unlikely as it may sound, it is claimed that all people on earth are connected to every other person only by a personal link of no more than six people. This is the origin of the Small World Concept. We are actually more closely connected than we would at first realize.
To understand this idea better, we must first know some basic facts about networks in general. There are three main kinds of networks for expressing the relationships between different variables. The first kind is a random network, the second one is the fragmented network and the third is the small world network. The first kind, as lts name implies, does not have any connections or feed-back loops among its constituent parts while the second kind contains connections among each local module but not as a whole. The third kind is the most interesting and useful one. Such a configuration means that there are shortcuts in the access routes between different parts of the small world network that can be exploited to increase the effeciency in communications among these divided regions of the network. These are the subtle connections, so to speak.

It is easy to visualize how the small world effect can come about in just a few examples. Let us look at some of these in turn. Suppose you are an accountant and your circle of friends are mostly accountants. Then, suppose your wife is a doctor and most of her circle of friends are in the medical profession. Normally, accountants and doctors have no frequent and necessary contact with one another but because of the relationship between you and your wife these two seemingly separate groups of people are subtly linked and may very well develop social and professional contact through you and your wife. Due to the multiple capacities each person must necessarily assume, each person's social and professional networks of friends may cover vast and complicated groups of seemingly unconnected people. If you add the blood relationships and in-law relationships of each person to his or her lists of possible groups of people they will interact, you can easily build up an extensive and colourful social network for each person. You may not realize the potential connections but they are there and can be very useful for you when you need them. For social networks, the significance of understanding such connections will be advantageous in terms of potentials in friendships, business development, personal assistance, job opportunities and exchange of important information when you need it.

 However, if the small world effect is applied to other phenomena such as epidemics, its proper understanding can save precious lives.The most vital and rewarding characteristic of the small world effect that scientists have discovered is that subtle or informal connections may be even more important and decisive in the functioning of any particular network in which the effect is present. The following example will illustrate this point. The formal communication network in a big corporation is, of course, the local area network of computers but before any policy is finalized and approved by the management it has to be discussed. Therefore, any hints of a forthcoming administrative policy will not come from the formal information system. 

In fact, management scientists have conclusively discovered that the most sensitive information system for capturing intelligence on upcoming company policy decisions exists in the informal circle of the secretaries of the various department heads during their coffee break gossips. This finding is the absolute truth and not a joke ! The chatting and gossiping of a group of secretaries is actually the medium for the propagation of the small world effect in any big corporation. The subtle link in the present example shows how the various parts of a big corporation can be connected by an informal sub-system and that remarkable shortcuts can be found in the corporate network's information system outside the mainframe computer. This, once again, is the same lesson taught us by the Science of Networks as in other theories to be meticulous in our observations and not simply following our instinct of paying attention only to the conspicuous facts. In many cases, it is the inconspicuous details that make the vital difference. 

Thursday, July 24, 2014

Think Your Flight Delays Are Bad? Try China, Where the Military Hogs Most of the Skies - TIME

http://time.com/3022331/china-flight-delays-aviation-shanghai/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 23, 2014
    
Air China aircraft stand parked at Shanghai Pudong International Airport in Shanghai, China, on Saturday, Oct. 26, 2013.Bloomberg—Bloomberg via Getty Images

Even in this era of jam-packed commercial air travel, the armed forces still control most of China’s airspace


Last week, I flew in and out of Shanghai over two days. Both flights idled on the tarmac for more than one hour. I felt rather lucky.

Airport delays are such a constant in China that a mere one-hour wait is practically a gift from the aviation gods. International flight monitors put Chinese cities at the bottom of a list of on-time takeoffs at major airports worldwide. On July 21, nearly 200 flights leaving from Shanghai’s two airports, Pudong and Hongqiao, were cancelled. Around 120 more planes were delayed from takeoff by two or more hours.

The same day, a notice attributed by state media to the Civil Aviation Administration of China warned that a dozen airports in eastern Chinese metropolises would suffer even more serious delays through August 15. The reason? An unnamed “other user” would be hogging the skies. That aerial monopolist is thought to be the Chinese military, which even in this era of jam-packed commercial air travel still controls most of China’s airspace. On July 23, the People’s Daily, the mouthpiece of the Chinese Communist Party, tweeted a picture of dejected looking passengers camped out on the floor of the airport in Dalian, a port city in northeastern China. The cause, according to the paper, was mass cancellations stemming from “planned military activity.”
On Monday, Jiao Xuening, a resident from the southern city of Shenzhen, described on his Chinese social-media account how he had been stranded at a Shanghai airport for almost six hours. “At first I was disgruntled,” he wrote. But then he listened to a stream of flight cancellations over the loudspeaker. “I was told my flight was merely four hours delayed and was not cancelled, so I became happy again.”
On July 22, the Shanghai Daily, the state-controlled newspaper in China’s most populous city noted that Pudong airport’s outbound on-time rate had nosedived to 26% the day before. “Shanghai’s air traffic control authority has refused to explain” the Shanghai Dailycomplained of the delays. “With the authority remaining tight-lipped about the reasons behind this, speculation has been rife on the Internet.”
Such conjecture, though, can be dangerous. Earlier this month, some people had speculated online that a dragnet around a “high-ranking official” had perhaps prompted the grounding of planes in Shanghai. The Chinese authorities didn’t take kindly to such gossip; nearly 40 “rumor-mongers” were detained or “held” for wondering online about the flight cancellations, according to the Shanghai Daily.
The chronic flight delays are a huge hassle. But the opacity surrounding their circumstances also speaks to the inefficiencies of doing business in China. In the first half of 2014, non-financial foreign direct investment in China dipped, compared to the same period the year before. Government paranoia about social instability is such that Facebook, Google and Twitter are inaccessible within mainland China. Major foreign news websites are also blocked by censors. Basic things overseas businessmen expect to do can’t be done.
Then there’s the suffocating air pollution, which has dissuaded some expatriates from traveling to China, much less living here. Now, with the routine airport delays, it’s no longer practical to, say, fly from Hong Kong to Shanghai in the morning, attend a few meetings and then return to Hong Kong by the evening. A Beijing-Shanghai-Beijing run makes more sense by the punctual high-speed train service. But that still means committing around 10 hours to traveling the rails.
In the meantime, customer-service representatives for Chinese airlines are trying to cope as best they can. Political sensitivities are such that the carriers cannot complain about the Chinese air force’s monopoly of the skies. Employees for Air China and China Southern said they were only informed about the continuing air congestion the day after the latest round of delays began on July 21. Air China says it will send text messages to passengers’ cellphones to update them on the latest scheduling. “Most of our customers understand the situation,” said an Air China customer-service staffer in a somewhat beleaguered tone. To cope with the long waits in airports notorious for meager services, the statement attributed to the Civil Aviation Administration of China dispensed further advice: “Flight passengers please bring with you food and water.”

with reporting by Gu Yongqiang/Beijing

Wednesday, July 23, 2014

Will MH17 air crash damage Russia's Putin? - BBC NEWS

http://www.bbc.com/news/world-europe-28421196

By Dmitri TreninDirector, Carnegie Moscow Centre, Moscow
Russia has been accused of providing military help to the rebels to shoot down the Malaysia Airlines plane

Right up until the downing of flight MH17 over eastern Ukraine on 17 July, President Vladimir Putin's handling of the Ukraine crisis was seen in Russia as fairly successful, both strategically and tactically.
Russia was obviously supporting the militants in the Donbass region, while still pursuing a policy of plausible deniability. At the same time, it had joined Germany and France in a diplomatic effort to promote a political settlement within Ukraine that would also take Russia's interests into account.
The European Union was balking at further sanctions against the Russian government, with a number of countries resolved to protect their important economic relations. The Obama Administration's attempts to rally the Europeans around the sanctions agenda appeared largely ineffectual.
Russia and China signed a landmark gas deal in May 2014, boosting relations between the two countries
Mr Putin was, by contrast, expanding Russia's relations with China, gaining a measure of moral support from the other Brics countries (Brazil, India, China and South Africa), and rekindling old and striking new friendships in Latin America.
The MH17 tragedy abruptly changed all that.
The United States and several of its closest allies have immediately accused Russia of aiding and abetting, if not actually perpetrating, a heinous crime.
Mainstream Western media are already calling for Russia to be treated as a pariah state. As a majority of the victims were from the Netherlands, relations with Europe are particularly likely to suffer.

UK PM David Cameron sees the crash as a "defining moment" for Russia
The gap between the US and EU approaches to sanctions on Russia is about to become narrower, destroying Moscow's hopes of a serious divergence within the West.
In Asia, where Russia is now "pivoting" to, the shooting down of the Malaysian passenger plane may also give rise to anti-Russian sentiment. Mr Putin recently signed a 30-year gas deal with China.
Elsewhere in the non-Western world, which still relies to a significant degree on the Western media for covering world developments, the reputations of both Russia and President Putin will take a big hit.
President Putin publicly backs an international inquiry into the MH17 disaster
Some in Russia may see the dramatic worsening of relations with the West over Ukraine as being driven by an undeclared US policy of containing Russia, but few welcome it.
While most Russians sympathise with the plight of the people of eastern Ukraine, around two-thirds are against a military invasion of Ukraine.
With Mr Putin's popularity still topping 80%, he has been widely credited so far with pursuing the right course: protecting Russia's interests, while avoiding unacceptable risks.

The MH17 air disaster, however, raises questions.
Russians, by and large, have long assumed that Moscow is giving the self-declared people's republics of Donetsk and Luhansk more than moral and political support.
At the same time, they hear from their own leaders that Russia does not control those whom it publicly backs. For a while, they may have accepted this apparent incoherence as a diplomatic ruse.
If the international investigation, however, establishes that Russia has indeed given the Donbass militants powerful weapons which they used to shoot down - by mistake - a passenger plane, part of the Russian public, not necessarily pro-Western or liberal, will see the Kremlin's approach as irresponsible brinkmanship.
Sensing this danger, Vladimir Putin is pushing back hard against the US-backed version of the crash.

The stakes are very high.
If the investigators' verdict does eventually fall against Russia it is not so much Vladimir Putin's integrity that will suffer, as respect for his strategic skill. He has, after all, never said that the rebels had nothing to do with the disaster; instead he blamed Ukraine for attacking them.
Mr Putin will survive politically, but will have to work hard to restore faith in him, and his good fortune.
Russia may, however, avoid the blame. And if it does, then the onus for the crime, and the responsibility, will be on others. And Vladimir Putin will have dodged that bullet, too.

Tuesday, July 22, 2014

Malaysia, the World’s Unluckiest Airline, Will Now Struggle to Survive - TIME

http://time.com/3011201/malaysia-airlines-ukraine-crash-survival-business-mh370-mh17/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 21, 2014
    

Malaysia’s national carrier was already in a weak financial position. Now its future is highly uncertain



Only four months after Malaysia Airlines Flight 370 vanished somewhere in the Indian Ocean with 239 passengers on board, Flight 17 was shot down over Ukraine, causing the loss of another 298 souls — an unprecedented blow to a major international airline. Even a robust operator would have trouble overcoming twin disasters like that. But the fact is that Malaysia’s flag carrier is in no financial shape to absorb these catastrophes. In fact, analysts wonder if it will ever be able to recover.
“The outlook is very dire,” says Mohshin Aziz, an aviation analyst at Kuala Lumpur–based Maybank. The airline, he fears, “won’t be able to survive beyond the year in its current form.”
The next months could prove humbling for an airline that had grand ambitions. The Malaysian government had high hopes that its national carrier would compete with the region’s best, and invested much money and emotion into building it. But Malaysia Airlines got badly squeezed in the fiercely contested Asian airline industry. Its cost base is too high to compete with lean and mean budget carrier AirAsia, also based in Kuala Lumpur. At the same time, it lacks the prestigious brand image to raise its ticket prices and take on East Asia’s more premier airlines, such as Singapore Airlines and Hong Kong’s Cathay Pacific. As a result, the company has been bleeding for years. The airline’s Kuala Lumpur–listed parent, Malaysian Airline System, has racked up losses of more than $1.4 billion since 2011. Management has tried cutting costs and improving service to turn around the airline’s fortunes, but such efforts were making only minimal progress.
Now whatever hope remained may get dashed by the two crushing tragedies. Analysts are concerned that the fallout will scare passengers away from flying on the airline, or force management to discount tickets to convince them to book — reducing revenue either way. That could push the airline’s fragile finances to the breaking point, causing “the ticking time bomb to explode,” says Daniel Tsang, founder of consultancy Aspire Aviation in Hong Kong. That reality will likely force Malaysia Airlines to take more drastic measures to stay afloat. Even before the latest crash over Ukraine, CEO Ahmad Jauhari Yahya told shareholders in June that the MH370 incident “sadly now added an entirely unexpected dimension, damaging our brand and our business reputation, and accelerating the urgency for radical change.”
There are options, but all are equally unsavory. Mohshin believes that Malaysia Airlines will have to greatly shrink its business, perhaps eradicating most of the international routes it flies, to focus on the more profitable parts of the operations. “It will never get back to the large size it was before,” he says. “The sooner they accept that fact, the better off they will be.” Tsang says that bankruptcy proceeding would be a “pretty good option” for Malaysia Airlines. That process would make it easier to strip out more of the legacy costs and make the airline more competitive.
What happens next ultimately depends on the Malaysian government. A state-controlled investment fund owns a majority of the shares in the carrier’s parent company, and that makes the future of Malaysia Airlines a political issue. The airline’s powerful union has been able to fight off previous efforts at radically overhauling the carrier and analysts say that rescuing Malaysia Airlines this time will require a high degree of political commitment. Still, if Malaysia Airlines manages to streamline its operations, it may live to fly another day.
“The restructuring will be painful for a lot of people,” Tsang says. “But a phoenix can rise from ashes.”

Monday, July 21, 2014

Amazon’s Kindle Unlimited Is Worth It If You Read This Many Books - TIME

http://time.com/3006110/amazon-kindle-unlimited-value/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

July 18, 2014
    
The logo of the Penguin publishing house, part of Pearson Plc, is seen on a Kindle Fire HD e-reader at a bookstore in London, U.K., on 
Amazon on Friday announced Kindle Unlimited, a new all-you-can read e-book service allows customers to read as many titles as they want for $9.99 per month. Kindle Unlimited has a library of over 600,000 books, including well-known titles like Harry Potter and Life of Pi. If you’re a voracious reader, the Unlimited program could be a good way to save money while feeding your reading habit. Let’s break down the math to see whether you plow through enough books regularly to justify the cost.
At $9.99 per month, Kindle Unlimited costs about $120 per year. E-books on Amazon can vary wildly in price, from $0.99 to hundreds of dollars. During 2013, e-books on the Digital Book World best-sellers’ list mostly sold for between $7 and $8 on average (the price in the most recent recorded week in 2014 was $7.52). If we say that the typical e-book best-seller costs $7.50, a customer would need to read more than 16 books per year to derive a greater value from Kindle Unlimited than buying the books individually.
This doesn’t necessarily mean avid readers should dive head-first into Kindle Unlimited. Customers lose access to Unlimited’s library of books if they end their subscription, whereas readers can typically hold on to purchased books forever. Also, books from major publishers such as Penguin Random House, HarperCollins, Simon & Schuster and Hachette so far don’t appear to be part of the service.

Think of Kindle Unlimited more like Netflix, which has a spotty selection of movies for its streaming library (especially during its early days) rather than Spotify, which typically gets new album releases the same day they go on sale in physical stores. Either way, Amazon is offering a 30-day free trial of Kindle Unlimited, so you can test your binge-reading capabilities before committing to pay for the service.

Sunday, July 20, 2014

With Jet Strike, War in Ukraine Is Felt Globally - New York Times

http://www.nytimes.com/2014/07/20/world/europe/with-jets-fall-war-in-ukraine-is-felt-globally.html?emc=edit_th_20140720&nl=todaysheadlines&nlid=56381892&_r=0

By PETER BAKERJULY 19, 2014

    Emergency workers on Saturday carried a body from the site of the Malaysia Airlines Flight 17 crash in the Donetsk region. For many, the disaster brought home a struggle that had seemed distant. CreditMaxim Zmeyev/Reuters
    WASHINGTON — From the start, the telephone call did not go well. Dispensing with pleasantries, President Vladimir V. Putinlaunched into an edgy and long-winded complaint about the new American sanctions imposed on Russia the day before.
    President Obama, on the phone from the Oval Office on Thursday morning, responded that Russia was arming rebels in Ukraine — citing among other things the antiaircraft weapons that the United States believed they had been sent. “This is not something we’re making up,” Mr. Obama said, according to an American official.
    Then, more than halfway through the tense, hourlong call, Mr. Putin noted, almost in passing, that he had received a report of an aircraft going down in Ukraine.
    Mr. Putin was vague about the details, and the conversation moved on. But in that instant, the monthslong proxy war between East and West took a devastating turn, one that would shift the ground geopolitically amid the charred wreckage and broken bodies in a Ukrainian wheat field.
    C


    The downing of Malaysia Airlines Flight 17 rippled across multiple continents — from Amsterdam, where friends and family had just seen off their loved ones, to the distant shores of Asia and Australia that had been waiting for 298 passengers and crew who would never show up. The tragedy reached as far as a college campus in Bloomington, Ind., shocked to find one of its doctoral students among the dead.
    It was a day of confusion and anger, of grief and disbelief, of charges and countercharges, of politics and war. It was a day that brought home in vivid relief the consequences of a struggle in a torn society that had seemed far removed for many. And it was a day that was a long time in the making.
    Cor Schilder had been looking forward to his vacation with his girlfriend. Two months ago, he posted pictures of an Indonesian resort on his Facebook page. “We will stay with a private pool with rose petals floating in it,” he wrote in Dutch on May 17. “We won’t leave before all those petals have withered away.”
    A florist and amateur musician who played drums in a band called Vast Countenance, Mr. Schilder, 33, and his girlfriend, Neeltje Tol, 30, closed up their Amsterdam flower shop on Wednesday, leaving a sign saying that they would reopen on Aug. 4. As they passed through customs at Amsterdam’s Schiphol airport the next day, Mr. Schilder kept updating his Facebook page.
    “Mind your step, mind your step,” he wrote two hours before the flight, echoing the automated warning message of the airport’s moving-walkway system.
    Before boarding, he posted a picture of the plane, exactly the same model owned by the same airline as one that vanished mysteriously in March en route to China. “In case it goes missing,” he wrote wryly, “this is what it looks like.”
    That may have been less amusing for a couple who were also passengers, Maree Rizk and her husband, Albert, who lost relatives aboard the never-found Malaysia Airlines Flight 370. Ms. Rizk’s stepmother’s brother and his wife were among those lost in March. The couple was returning home to Australia after a four-week vacation in Europe. “We thought it was unusual they would fly Malaysia because that earlier flight had gone down,” said Phil Lithgow, a friend.
    Photo
    Flowers were laid amid the wreckage on Saturday at the site of the crashed Malaysian passenger plane, shot down by a missile.CreditAlexander Khudoteply/Agence France-Presse — Getty Images
    The flight took off from Amsterdam and headed east along a flight plan filed before departure. As it crossed over Ukraine, it cruised at an altitude of 33,000 feet, making sure to stay above a new minimum of 32,000 feet set just three days earlier so as to avoid any fighting on the ground or in the air. Some airlines had stopped traversing Ukraine altogether because of its violent insurgency in the east, but most had not.
    Until that week, pro-Russian separatists fighting in the east had been known to possess shoulder-fired, heat-seeking missiles known as Manpads, weapons that can typically fire to a maximum altitude of roughly 12,000 feet. But in the days before the doomed Malaysia Airlines flight, combatants had made clear they now had access to a weapon of a different magnitude, a radar-guided SA-11 that can deliver warheads at three times the speed of sound to a target as high as 70,000 feet.
    On Monday, such a missile had brought down a Ukrainian Antonov-26 military transport plane flying at 21,000 feet, a feat requiring expertise and training that only a military could provide. American intelligence agencies believe the missile came from the Russian side of the border, which Moscow denied. Separatists said they brought the plane down themselves.
    Either way, Ukraine that same day set the 32,000-foot minimum for civilian airliners. Russia followed suit two days later. But no one banned passenger jets from the area, despite the obvious change in the threat.
    Dramatic Shift in Battle
    The missile strike that brought down the Malaysia flight was in many respects a result of a dramatic change in the battlefields of eastern Ukraine. After declaring unilateral cease-fires that failed to lead to meaningful negotiations, Ukraine’s president, Petro O. Poroshenko, let the latest cease-fire lapse and ordered his military to resume efforts to crush the insurrection by force.
    After the military plane was shot down on Monday, fighting escalated. On Tuesday, a blast destroyed a residential building in Snizhne, a town 12 miles from the Russian border controlled by rebels. Ukraine said a Russian plane had carried out the attack; the rebels blamed the Ukrainian military. Whoever was responsible, a new air war was clearly underway. On Wednesday evening, Ukraine said Russia had sent a MIG-29 fighter jet across the border to engage with Ukrainian Su-25s. In the ensuing dogfight, one Su-25 was shot down, while another was damaged but escaped

    A Ukrainian security official was complaining about the Russian incursion at a briefing on Thursday around the same time Malaysia Airlines Flight 17 was taking off from Amsterdam.
    In eastern Ukraine several hours later, residents noticed what they presumed was a missile climbing into the sky. American intelligence analysts later traced the launch to an area around Snizhne and the nearby town of Torez. The plane exploded in midair and plummeted down into a series of large fields of wheat, grass and sunflowers, its fuselage and landing gear twisted into a mountain of metal, wires, engines and seats.

    Bodies lying in the field struck strange, unnatural shapes in the tall grasses, many naked but for their shoes. Some were nestled together among piles of open suitcases, including a man in a mint-colored T-shirt lying near a woman in torn jeans whose right arm was thrown up over her head as if she were trying to protect herself. Others lay alone, like the tiny girl, probably no older than 3, dressed in a red T-shirt without pants.
    The sight was overwhelming, even to rebels, who stood in stunned groups trying to comprehend. “I have four children,” said a miner named Sergei who said he had found many bodies of children. “I’m in shock.”
    New Shock in Malaysia
    The shock was felt nearly as powerfully in Kuala Lumpur, where the Malaysian government and its people remain deeply traumatized from the March episode. Prime Minister Najib Razak was at his personal residence when he was notified that Flight 17 had apparently gone down. He rushed to the Malaysia Airlines emergency response center at Kuala Lumpur’s airport and ordered his defense minister, foreign minister, aviation director and airline executives to meet him there.
    “People were incredulous, but people weren’t emotional,” said a Malaysian official who spoke on the condition of anonymity because he was not authorized to comment on the government’s response. “You looked at the faces around the room, and everyone had been battle-scarred from MH-370.”
    Photo
    A candlelight vigil was held on Saturday in Kuala Lumpur, Malaysia, for the air-crash victims.
    After bruising international criticism of the response to that catastrophe, Mr. Najib was determined to handle this one more smoothly. The last time, he waited a week to make a public statement. This time, he appeared before cameras within hours. Last time, it took Malaysia Airlines six weeks to release a cargo manifest. This time, it would take 36 hours.
    In Moscow, the first news reports appeared in early evening as RIA Novosti, a state-run agency, said that the separatists — Russia’s news media often refers to them as “volunteers” — had downed another Ukrainian Antonov-26 military transport plane.
    Mr. Putin was also in the air above Eastern Europe that afternoon, as he was returning from a six-day tour of Latin America aboard his presidential Airbus, referred to as Aircraft No. 1 by the media. The Russian jet apparently passed near the doomed Malaysian plane, both flying in roughly the same airspace over Warsaw at 33,000 feet some 37 minutes apart, according to an Interfax report. He got on the telephone with Mr. Obama shortly after landing.
    As soon as it became clear that the downed plane was not a military craft but a civilian passenger plane, Russian news media shifted their narrative from a separatist attack to a variety of other explanations, including the possibility that Ukraine’s military had shot it down. The coincidental proximity of Mr. Putin’s plane even led to conspiracy theories that whoever destroyed the Malaysia jet was actually trying to target the Russian president. Rossiya 24, the state-run cable network, played past clips of Ukrainian public figures saying they wished Mr. Putin dead and then interviewed supposed experts about how the two planes might have been confused.

    Mr. Putin released a statement 40 minutes after midnight, blaming Ukraine. “Certainly,” he said, “the government over whose territory it occurred is responsible for this terrible tragedy.”
    Obama and the Disaster
    After hanging up with Mr. Putin, Mr. Obama boarded his Marine Onehelicopter to fly to Andrews Air Force Base. During the flight, news broke that Ukraine was blaming a Russian-made missile. Dan Pfeiffer, the president’s senior adviser, received an email and told Mr. Obama about the allegation.


    Once he boarded Air Force One, which was scheduled to take him to Delaware and New York for a policy speech and political fund-raisers, Mr. Obama was briefed by his national security aide, Brian McKeon. By the time the president landed outside Wilmington, Del., it was clear he would need to address the disaster. Speechwriters at the White House emailed a statement to the plane.
    Josh Earnest, Mr. Obama’s press secretary, gave him a copy and explained that a line about concern for Americans stemmed from reports that as many as 23 were on board.
    Mr. Earnest told the president that the number came from Ukrainian officials and seemed dubious. But even as Mr. Obama went before cameras and made his brief comments, Vice President Joseph R. Biden Jr. got on the phone with Mr. Poroshenko, who told him the Ukrainians had intercepted conversations indicating the separatists had shot down the plane.
    Mr. Obama was briefed by telephone after his speech by Antony J. Blinken, his deputy national security adviser, who told him about the Poroshenko call, and the president decided to call the Ukrainian leader as well as Mr. Najib from Air Force One. The flight to New York was so short, however, that the pilots had to fly a long, looping route to give the president enough time to talk with the leaders.
    Once in New York, he headed to his first fund-raiser at an upscale apartment. In a den, where a secure telephone line had been set up, Mr. Obama convened a conference call with his staff for an update. He was told most of the dead were from the Netherlands and so arranged to call the Dutch prime minister.
    The next morning, back at the White House, he was told that one American had been on board, as well as AIDS researchers and activists heading to a conference that he himself had addressed two years earlier. He recognized that he had probably met some of them. “That seemed to kind of rattle him,” an aide said.
    As a cloudy morning dawned on Ukraine on Friday, the horror of the crash site was on full display. Small white pieces of cloth dotted the grassy farmland, marking the locations of bodies. The smell of burned flesh hung heavily near a broken hulk of metal on the road. A foot with part of a leg lay nearby.
    The scene was strangely empty. There was no yellow tape, no investigators poring over the giant metal carcass. Four local rebels wearing fatigues and carrying hunting rifles wandered through the ruins, poking around the debris more out of curiosity. On the grass were photographs of a family vacation, a baby announcement postcard and a boarding pass.
    One of the men, who had never seen a boarding pass, asked what it was. Another picked up an English-language tour book and flipped through it before throwing it back in the heap. “I can’t read it anyway,” he said.

    Reporting was contributed by Keith Bradsher and Chris Buckley from Kuala Lumpur, Malaysia; C.J. Chivers and David Montgomery from the United States; Nicola Clark from Paris; Thomas Erdbrink from Amsterdam; David M. Herszenhorn from Kiev, Ukraine; Michelle Innis from Sydney, Australia; Neil MacFarquhar from Moscow; Michael S. Schmidt from Washington; and Sabrina Tavernise from Grabovo, Ukraine.