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Productivity gap yawns across the UK

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NewsHubProductivity, or more precisely the lack of productivity, is one of the great puzzles of the British economy at the moment.
Productivity growth since the credit crunch has been dreadful and that matters, because unless we make more and work more efficiently we cannot pay ourselves more.
In an attempt to understand what is going wrong, the Office for National Statistics (ONS) is bringing all its productivity statistics together and conducting new research. It throws up some interesting details and possible explanations about what is going wrong.
Output per hour worked increased by 0.4% in the three months to September last year, that is an improvement but according to (ONS) economist Richard Heys: „It is still weak compared to that experienced in the recent past. “
Part of the reason for low productivity lies in Britain’s regions. While London and south-eastern England have productivity well above the national average and equal to the levels seen in rival economies like France and Germany, the rest of the country lags behind.
Tower Hamlets, which includes the financial district of Canary Wharf, is the most productive part of the country, a huge 79% more productive than average.
Powys in central Wales is the least productive and, overall, Wales and Northern Ireland have productivity levels 19% below the national average.
The only towns in the country that have above average productivity are London, Aberdeen (centre of the off-shore oil industry) and Bristol (a high tech and aviation industry hub).
The least productive city is Sheffield, once home to a huge steel industry but now lagging well behind; Sheffield is 19% less productive than the national average.
This part of the productivity puzzle is perhaps the best understood. The most productive industry is finance and that is concentrated in London, while many regions suffer from poor infrastructure and communications and have never recovered from the loss of major parts of their economy in previous decades: mining, heavy engineering, ship building and many more.
Perhaps more interesting, is new research by the ONS into the efficiency of family-owned and run manufacturing firms.
That found well-structured management practices were better among larger businesses, multinationals and family-owned businesses that were not managed by members of the owning families. To put it bluntly the management of family-run firms (which make up more than half of all manufacturing companies) is awful.
Even a small improvement in management would see a huge boost in productivity in such businesses.
At first sight this might seem strange, but there is a fairly obvious explanation.
What are the odds that the best-qualified and most competent person in the world to run a business just happens to be the son or daughter of the current boss?
As one economist has put it, this is like selecting the children of previous gold medallists to be members of the country’s next Olympic team, rather than picking the best athletes.
There is also the issue of how such companies will attract top staff if they know nepotism means they will never make it to the top, which helps explain why the handling of promotions was one of the issues most associated with productivity.
Solving the productivity gap in the UK will not be an easy job, certainly better regional policies would help, but just convincing family- run firms to appoint competent outsiders to run their business would also have a huge effect.

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Weekend practice alone ‘has poignant health benefits’

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NewsHubCramming all your endorsed weekly practice into one or dual weekend sessions is adequate to furnish critical health benefits, a investigate suggests.
And being active but handling 150 mins of assuage activity a week was still adequate to revoke a risk of an early genocide by a third.
The findings are formed on a consult of about 64,000 adults aged over 40 in England and Scotland.
Health experts pronounced eloquent practice was pivotal to improved health.
Researchers from Loughborough University and a University of Sydney analysed information on a time people spent doing practice and their health over 18 years.
They found that no matter how mostly people exercised in a week or for how long, a health advantages were identical as prolonged as they met a activity guidelines. Fighting a flab
This was good news for people with a bustling lifestyle who incited into “weekend warriors” in sequence to fit in all their endorsed earthy activity, they said.
Compared with those who didn’t practice during all, people who did some kind of earthy activity – either frequently or irregularly – showed a revoke risk of failing from cancer and from cardiovascular illness (CVD), that can lead to heart attacks and strokes.
“Weekend warriors”, who did all their practice on one or dual days of a week, were found to revoke their risk of failing from CVD by 41% and cancer by 18%, compared with a inactive.
Those who exercised frequently on 3 or some-more days per week reduced their risks by 41% and 21%.
Even a “insufficiently active” lowered their risk by a poignant volume – 37% and 14%, a researchers said, essay in an essay published online in JAMA Internal Medicine. How most earthy activity should we do?
People aged 19-64 should try to do:
Or
Source: NHS Choices and Public Health England
Dr Gary O’Donovan, investigate author and consultant in earthy activity and health, from Loughborough University, pronounced a pivotal was doing practice that was “purposeful, and finished with a goal of improving health”.
“You are not going to pester or mount your approach to health,” he said.
He combined that a joining to an active lifestyle was customarily accompanied by other healthy lifestyle options, that done a certain disproportion regardless of physique mass index (BMI).
But Dr O’Donovan pronounced nobody nonetheless knew a best approach of assembly a weekly endorsed practice total. ‘Every small counts’
The investigate can’t uncover a approach couple between earthy activity and a rebate in health risks in individuals.
But endless investigate has shown that practice and a healthy diet can revoke a risk of a operation of diseases – such as cancer, heart illness and type-2 diabetes – as good as assisting to control weight, blood vigour and revoke symptoms of depression.
Justin Varney, inhabitant lead for adult health and wellbeing during Public Health England (PHE), said: “The limit health advantages are achieved from 150 mins of assuage activity per week.
“However, each small depends and only 10 mins of earthy activity will yield health benefits.”
PHE’s How Are You quiz gives we a health measure and links to giveaway internal information, apps and collection to urge that score.

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China voices concern about North Korea statements on ICBM test

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NewsHubBEIJING, Jan. 9 (UPI) — China expressed concerns regarding North Korea ’s repeated threats to test-launch an intercontinental ballistic missile, according to Xinhua news agency.
Beijing is taking the statements seriously, including the most recent announcement issued Sunday that reiterated an earlier statement Kim Jong Un made during his New Year’s speech.
On New Year’s Day Kim said the country had reached the last stage of preparing a test launch of an intercontinental ballistic missile that may be capable of targeting the U. S. mainland.
Pyongyang said the launch would take place at an arbitrary time and place determined by Kim. The statement has raised the threat level in South Korea, where the military is monitoring the situation.
Lu Kang, China’s foreign ministry spokesman, told reporters Monday that Beijing fears a situation that only escalates tensions in the region.
„The United Nations Security Council has clear rules for North Korea regarding its use of ICBM technology to test missiles,“ Lu said. „In this complex and sensitive situation, China asks all relevant parties to not engage in acts that will raise tensions. “
The spokesman also said China is closely watching for new developments, and that the country is ready to play its „given role“ for the sake of peace and stability in the region.
Lu’s statements on Monday was in part a response to remarks U. S. Defense Secretary Ash Carter said on NBC’s „Meet the Press“ on Sunday.
Carter had said North Korea’s nuclear and missile programs are a „serious threat“ that it would shoot down any missile if aimed at „us“ as well as „friends or allies. “
The latter statement has raised Beijing’s concerns, according to Yonhap.

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S. Korean dies after setting himself ablaze over Japan deal

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NewsHubA South Korean Buddhist monk has died days after he set himself on fire to protest the country’s deal with Japan on former Korean sex slaves, a Seoul hospital said Tuesday.
The monk, 64, set himself ablaze Saturday during rallies against impeached President Park Geun-hye. In his notebook found at the scene, he criticized Park’s 2015 agreement to settle an impasse over Korean women forced to be sex slaves for Japanese troops during World War II in return for an apology from Japan’s prime minister and a pledge of millions of dollars.
The monk was pronounced dead Monday night of multiple organ failures caused by his burns, according to the Seoul National University Hospital.
Disputes over sex slaves are a legacy of Japan’s 1910-45 colonial occupation of the Korean Peninsula. Many in both North and South Korea, divided at the end of the Japanese rule, still harbor bitter resentment against the Japanese period.
Park’s Japan deal prompted criticism because it was announced without approval from surviving former sex slaves. Under the agreement that both countries described as „final and irreversible“ at the time of its singing, Japan promised to fund a Seoul-based foundation aimed at supporting the victims.
South Korea, in return, said it would refrain from criticizing Japan over the issue and try to resolve a Japanese grievance over a bronze statue — representing the wartime sex slaves — that had been placed in front of its embassy in Seoul.
The future of the deal was thrown into doubt earlier this month after Japan said it would recall its ambassador to South Korea and suspend economic talks in response to the placing of another such statue in South Korea’s second-largest city of Busan. Seoul’s Foreign Ministry said the decision was „very regrettable. „

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Can North Korea's nuclear expansion be stopped?

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NewsHubWhen President Trump (as he will then be) enters the White House, he will have an item flashing as urgent in his email inbox: North Korea. In the election campaign, he offered to sit down with the country’s leader Kim Jong-un over a burger, but that generosity seems less likely now.
Eight years ago, when President Obama moved in, the tone was similarly helpful. Right at the start of his tenure, the new president made a gesture of conciliation to the North Korean leader, not quite an offer of friendship but an indication that nose-to-nose threats need not be the way.
In his inaugural address in 2009, President Obama said he would offer an outstretched hand to those who would „unclench their fists“.
A few months later, Kim Jong-un responded with the launch of a substantial, multi-stage rocket and an underground explosion of a nuclear device. Both tests were seen by the United Nations as a defiant contravention of the policy of the non-proliferation of nuclear weapons.
Some presidents talk tough but trip over realities. George W Bush said in 2006 that North Korea launching a long-range missile would be „unacceptable“ – just before one was launched.
A year earlier, he had said that „a nuclear armed Korea will not be tolerated. “
Yet, on all expert estimates, North Korea has made substantial progress in achieving that aim, of having a nuclear arsenal capable of devastating cities in the United States at very short notice. The ability is not there yet but many technology experts think it is getting there.
So the Obama (and Hillary Clinton) policy of strategic patience is giving way to louder talk of military impatience. The doctrine of squeezing North Korea with sanctions and waiting for change is being supplemented by military plans.
South Korea said it was bringing forward plans to form army units trained to „decapitate“ the regime – in plain English, to kill Kim Jong-un. The outgoing secretary of defence in Washington said that any test of a long-range missile which threatened the United States or its allies (South Korea and Japan) would result in it being shot down.
The Pentagon planners are working overtime. But what are the military options?
Not many, is the answer of most experts. Dr Jeffrey Lewis, of the Middlebury Institute of International Studies at Monterey in California, said that shooting down a test missile fired by North Korea would be very difficult to do and the attempt might lead to massive retaliation by conventional artillery against Seoul, the outskirts of which are within sight of North Korea.
He told the BBC that North Korea’s nuclear and missile sites were scattered and that, in any case, intercontinental ballistic missiles (ICBM) could be launched from mobile trucks.
Another expert echoed that view. Rodger Baker, an analyst of the region with Stratfor, a global consultancy on geo-politics, said that the trouble with any limited military action against North Korea was that it could easily trigger all-out conflict.
„They could fire additional short range missiles into South Korea and US military facilities,“ he explained.
There is similar scepticism about the idea of assassinating Kim Jong-un in the absence of open war. Dr Heather Williams, who lectures at the Defence Studies Department at King’s College London, said: „If South Korea pursues this option, they are really playing with fire and might be testing whether or not North Korea really will retaliate – but it would be retaliation against South Korea. “
She is annoyed at Mr Trump’s tweeting – after Kim Jong-un’s assertion that North Korea might get ICBM, the president-elect tweeted: „It won’t happen. “
Dr Williams added that „so much of nuclear strategy is about signalling and what type of message you are sending. Deterrence is rooted in signalling, so changing from a very carefully-crafted, nuanced nuclear messaging to nuclear messaging in 140 characters is incredibly dangerous. “
Much more likely military options than overt aggression, according to the experts, are attempts to slow the nuclear programme by, say, assassinating scientists or inserting viruses into the industry’s computer systems (as was apparently done in the case of Iran).
It is worth noting, too, that Iran and North Korea are very different. Iran did not have nuclear devices, whereas North Korea has already detonated five of them and has a well-developed and large testing site (3D images courtesy of the Nuclear Threat Initiative).
Iran had elections and so the leadership had to take more account of the economic discontent of the people. It had a much more open society, internally and towards the outside world. All this makes the North Korean nut so much harder to crack.
Some experts – and not just from dovish institutions – say that there may come a time soon when the reality of a nuclear North Korea has to be accepted.
Eric Gomez, a policy analyst at the Cato Institute in the United States, told the BBC: „The US long-term goal is de-nuclearisation and that is a noble long-term goal and I think it should remain a long-term goal.
„But, given the status of their nuclear programme now, I just don’t think it’s a very realistic goal in the immediate term.
„If we can come to the table over some sort of limitation to the current arsenal in terms of delivery systems, that might be the first step towards a larger agreement down the road. “
But there are difficulties with that:
It is not a word he likes.

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South Korea official admits to blacklist of artists critical of Park Geun-hye

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NewsHubSEOUL, Jan. 9 (UPI) — A senior South Korean official said she is aware of a government „blacklist“ of artists.
Seoul’s Culture Minister Cho Yoon-sun said for the first time the blacklist was created in order for the government to keep track of artists who were banned from receiving public support, The Korea Times reported.
„As far as I know, there was a list of artists who were banned from receiving state support for their political beliefs,“ Cho said.
The official said she wasn’t briefed on the blacklist until January, although she took office in September, Yonhap reported.
Cho made the remarks during the seventh hearing on the case of Choi Soon-sil, who has been charged with interfering in government affairs and embezzling funds, using her connections to President Park Geun -hye as leverage when seeking donations from major South Korean corporations.
Cho’s statements were somewhat inconsistent, according to Yonhap.
At one point the official reportedly said she was aware of the list in late 2016, but that she did not know it was the list one of her staff members had submitted to prosecutors for investigation.
Cho also said the list had about „600 people“ but stated she had „never seen such a document. “
The Korea Times reported a more extensive list of 9,000 people, including internationally renowned film director Park Chan -wook and poet Ko Un, who has visited North Korea , was created because of their opposition to Park and their criticism of the government’s handling of the Sewol ferry sinking in 2014.
Do Jong-hwan, a member of the opposition Minjoo Party, said the presidential Blue House and the national intelligence service determined the list of artists who held unfavorable views of the Park administration.

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Ex-North Korea diplomat says he wants to meet with Trump's team

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NewsHubSEOUL, Jan. 9 (UPI) — A senior North Korean diplomat who fled Pyongyang’s embassy in London said he wants to meet with members of the incoming Donald Trump administration to provide them with information on the Kim Jong Un regime.
Thae Yong-ho, who defected to Seoul last summer, said Sunday he would eventually like to meet with U. S. policymakers and inform the American people about the „reality“ of North Korea, Yonhap reported.
„If properly informing the [U. S. government] of the true intentions of North Korea’s nuclear development helps the United States to establish a rational, precise policy toward North Korea, I would not hesitate visiting the United States,“ Thae said.
Thae had previously told South Korean reporters not even an incentive of „$1 trillion, $10 trillion,“ would make Kim Jong Un give up his nuclear weapons.
Thae had also said he would work to prevent a catastrophe on the Korean peninsula, according to Yonhap.
„The most important thing is to maintain a strong U. S.-South Korea alliance,“ Thae said while emphasizing the need for Washington and Seoul to strengthen cooperation on North Korea policy.
„The situation on the Korean peninsula is quite uncertain in 2017. It is unforeseeable how the Trump administration will implement its North Korea policy,“ Thae said, adding the situation must be stabilized to avoid a crisis.
Thae also said the political situation in South Korea is adding to the unpredictability, but the country is ready to play a bigger role in solving problems on the peninsula.
The former North Korea diplomat added Kim Jong Un’s declaration of readiness to test an intercontinental ballistic missile is aimed at governments in transition in the United States and South Korea.
Kim, however, has been unable to observe ceremonies for his mother, Ko Yong Hui, because of her background as a former resident of Japan, Thae said.
North Korea media avoids publicizing Ko’s birthday or her life history, according to Thae.

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Business News Roundup, Jan. 10

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NewsHubYahoo said Monday that after it sells its Internet properties to Verizon, the holding company that remains will be called Altaba Inc. That firm will manage the company’s investments in Alibaba and Yahoo Japan. Altaba’s board will be reduced to five directors: Tor Braham, a former managing director at Deutsche Bank Securities ; Eric Brandt , a former Broadcom Corp. CFO ; Catherine Friedman , a former managing director of Morgan Stanley ; Thomas McInerney , former CFO of IAC; and Jeffrey Smith , chief investment officer of activist investor group Starboard Value. Brandt, who became the chairman of Yahoo’s board on Monday, will continue to hold that role at Altaba.
There are six directors that plan to resign after the Verizon deal closes, including Yahoo CEO Marissa Mayer and co-founder David Filo. Yahoo declined to comment.
It’s unclear if the Verizon deal will go through.
Previously, Yahoo had planned to spin off its Asian investments in a new company called Aabaco. That plan was scrapped after the Internal Revenue Service indicated the deal wouldn’t receive favorable tax treatment. Yahoo’s small-business unit still carries the Aabaco name.
The Obama administration cut mortgage-insurance premiums charged under a government program that’s popular with first-time home buyers with little money for a down payment, a move that may ease the burden of rising interest rates.
The annual fees the Federal Housing Administration charges to guarantee mortgages it backs are being cut by a quarter of a percentage point, the Department of Housing and Urban Development said on Monday. With the reduction, the annual cost for most borrowers will be 0.60 percent of the loan balance.
The change — which could be reversed after President-elect Donald Trump takes office — will force the Trump administration to weigh Republican objections over lower fees against the benefits to home buyers.
The reduction, which lowers the cost of a home for those who use the FHA, is charged to mortgage borrowers. HUD on Monday said the fee cut would save new FHA-insured homeowners an average of $500 this year. The cut would take effect on Jan. 27.
Consumers increased their borrowing in November at the fastest pace in three months.
The Federal Reserve says total borrowing in November climbed $24.5 billion, compared to a smaller $16.2 billion in October. The increase pushed total debt to a fresh record of $3.75 trillion.
The acceleration reflected a big jump in the category that covers credit card debt, which rose $11 billion, compared with a much smaller $2.4 billion increase in October.
It was the largest monthly advance since March and was a good sign at the start of the holiday shopping season.
Growth in the category that covers auto loans and student loans slowed a bit in November, showing a rise of $13.5 billion after a $13.8 billion increase in October.
Alphabet Inc. is in talks to sell the Skybox Imaging satellite business it acquired for $500 million less than three years ago, another sign the technology giant is ratcheting back grand ambitions to blanket the globe with Internet service.
Planet Labs , a San Francisco satellite imaging startup, may acquire Skybox, according to people familiar with the situation. Some employees from the Alphabet division , renamed Terra Bella last year, are moving to Planet Labs as part of the deal, while others may get different positions at Google, according to these people. They asked not to be identified because the transaction is private.
A representative from Planet Labs, now known as Planet, declined to comment. A spokeswoman from Alphabet’s Google unit declined to comment.
The move signals an ambitious agenda for the startup, which has raised more than $150 million. In contrast, Google parent Alphabet has been curbing its Internet-access plans. In October, the company cut about 9 percent of staff from its Fiber fast Internet service.
The Chevy Bolt has been named top car in North America, an important milestone for a car General Motors hopes will finally get Americans hooked on electric vehicles. The honors were announced Monday morning at Detroit’s Cobo Center as the North American International Auto Show’s press preview days kicked into high gear.
The Bolt beat out the Genesis G90 and Volvo S90 for the car award. The electric car from Chevrolet went on sale late last year. It gets more than 200 miles per battery charge, which is more than the average American drives in a day. The Bolt also sells for around $30,000 when a federal tax credit is included. Electric vehicles have failed to catch on with most American consumers, but General Motors hopes the improved range and price help shift opinions.
Chronicle News Services

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America's favorite car is under attack

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NewsHubDETROIT (AP) – The Toyota Camry has been the nation’s top-selling vehicle for 15 years, if you exclude pickup trucks. Now it’s in danger of losing its crown, a potential victim of the SUV craze. And even a much-anticipated revamp unveiled Monday at the Detroit auto show may not be enough to keep the competition at bay.
Toyota’s own RAV4 small SUV and Honda’s CR-V have racked up impressive sales gains as buyers shift away from passenger cars toward the higher-sitting and more versatile SUVs. The CR-V, for instance, outsold the Camry an uncharacteristic five months last year.
The Camry, last reworked four years ago, has made a living by being a solidly reliable if dull ride for people who simply want to get from place to place. It’s not much fun to drive, and in the past some analysts compared its looks to an appliance. Although styling has improved, it’s still square-looking when compared to competitors such as the Honda Accord or Chevrolet Malibu.
Toyota says it increased the distance between the wheels on the new version by 2 inches and lowered the hood and roof height. The result is a lower center of gravity and a wider look that the company calls „beautiful and futuristic. “ Toyota describes the new interior as cockpit-like.
The revamped Camry gets two all-new engines, a 3.5-liter V6 and a 2.5-liter four, both paired with a new eight-speed automatic transmission.
All 2018 Camrys come standard with a suite of safety systems that includes automatic emergency braking.
Horsepower, gas mileage and price weren’t released. The new Kentucky-built Camry will be available late in the summer.
Dealers have been promised game-changing updates before, such as with the 2013 model year. But Toyota executives conceded they didn’t want too much change, fearing that they’d alienate loyal Camry buyers.
Stu Stewart, general manager of his family’s Toyota dealership in North Palm Beach, Florida, says close-up pictures of the new car he saw at a recent dealer meeting give him hope that this version will live up to its billing. „I’m excited to see something pretty sporty,“ he says.
But a sportier look may be too little to help the Camry or any midsize car given the seismic consumer shift to SUVs.
Five years ago, midsize cars made up 15.8 percent of U. S. auto sales, says Tom Libby, an industry analyst with IHS Markit. This year the market share fell more than three percentage points to 12.5. During the same five years, small SUVs rose from 12.7 percent of U. S. sales to 18.7 percent, Libby says.
A Camry with nicer styling, improved engines and reduced weight for better fuel economy will help, but Libby sees no sign of the trend away from cars changing. „That’s all they can do,“ he says of Toyota, adding that the company must be prepared should the market shift back, perhaps if gas prices shoot higher.
The midsize car market is still huge, Libby says. Although sales fell more than 8 percent last year, Americans still bought over 3.2 million of them. Toyota sold more than 400,000 Camrys annually from 2012 to 2015, but sales dropped 9.5 percent to about 389,000 last year, according to Ward’s Automotive. By comparison sales of the RAV4 rose almost 12 percent in 2016 to 352,000, while Honda’s CR-V posted a 3 percent gain to just over 357,000. If Camry sales this year fall by the same amount as 2016, and the CR-V and RAV4 grow even slightly, both will pass the Camry.
Michael Kranjec, sales manager at Adams Toyota in Lee’s Summit, Missouri, near Kansas City, says that in the past, Toyota has discounted the Camry to keep it No. 1. But with the market shift, he doubts that will be enough in the future.
Still, he hopes Toyota will set the Camry apart from competitors, which he says all look alike. „I’m hoping it’s waking up some of the designers,“ he said.

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Baseball notebook: Manny Ramirez plans to play in Japan

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NewsHubTOKYO — Manny Ramirez has agreed to terms with the Kochi Fighting Dogs of Japan’s independent Shikoku Island League.
The four-team Japanese independent league is based in Shikoku, the smallest and least populous of Japan’s four main islands.
The 44-year-old Dominican, whose signing was announced Monday, played for Taiwan’s Rhinos in 2013, .hitting .352 with eight home runs and 43 RBI.
Ramirez finished his 19-season major league career with a .312 batting average, 555 home runs and 1,831 RBI.
A 12-time All-Star, Ramirez helped the Boston Red Sox win World Series titles in 2004 and ’07, the first for the franchise since 1918.
On the Hall of Fame ballot for the first time this year, Ramirez was suspended for 50 games in 2009 while with the Los Angeles Dodgers for using a banned female fertility drug. He retired in 2011 rather than face a 100-game suspension after testing positive for a performance-enhancing substance. He applied for reinstatement that December, and his suspension for the second failed test was cut from 100 games.
Brown pitched and coached for the Texas Rangers, who said Brown died Sunday after a long illness. Brown died in Holdenville, Oklahoma, the community where he was born.
Brown was the Rangers’ pitching coach from 1979-82, and later had stints in that role for the Chicago White Sox (1992-95) and Tampa Bay (2002).
Washington announced on Twitter that its star right-hander has a stress fracture in the knuckle of his right ring finger.
The team said the ongoing rehabilitation will keep Scherzer off the U. S. team at the WBC, which is in March, but he is still “expected to be a full participant” at spring training, which starts next month.
Scherzer went 20-7 with a 2.96 ERA and 284 strikeouts last season, including a record-tying 20 in one game, for the NL East champion Nationals.
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