Any other business

City Life | 2 August 2008

Paul Theroux, in The Great Railway Bazaar, paints a louche portrait of the capital of Laos. ‘The brothels are cleaner than the hostels, marijuana is cheaper than pipe tobacco and opium is easier to find than a cold glass of beer,’ he wrote in 1975. When Theroux finally got his beer, the waitress told him sex was on the menu too. Gosh, if only I’d know about Vientiane in my gap year. It might have taught me more about the real world than three months at the British Institute in Florence and a lost week in Fez. These days, of course, Laos is firmly on the gap-year trail, but Vientiane (one hour from Bangkok by air or 11 by train) has cleaned up its act. If you want a cold beer and a smoke in a pristine hostel, it’s not difficult to arrange.

Rumours of the death of music are exaggerated

David Crow says the record industry’s attempt to clamp down on illegal downloads is belated and befuddled — but the good news is that live music is thriving again Back in the late 1990s when the music download revolution was gathering pace, sentimentalists predicted the death of music. Those who spent their youth in rented flats littered with LPs before moving to mortgaged houses furnished with neat racks of CDs felt that free and illegal MP3 files would cannibalise the industry. But the huge irony of this revolution is that it has led to a resurgence in live music. CD sales fell by 10.6 per cent in Britain in 2007 — forcing artists to return to the stage. Last year saw more music festivals than ever before; live music revenues were up 8 per cent on 2006.

And Another Thing | 30 July 2008

‘We can cause laughing by tickling the skin,’ wrote Darwin in Emotions (1872). We all know that. Difficulties arise when we probe a little deeper, where tickling hovers uncertainly on the borderline between eroticism, buffoonery and the slow, pleasurable but perhaps innocent process of having the flesh gently disturbed by the tips of another person’s fingers. Tickling is a very complicated matter, insufficiently explored by neurologists, Freudians and students of human behaviour, including novelists and poets. Erotic forms of tickling are themselves complex. When the Glasgow girl in the song says ‘Stop yer tickling, Jock!’, does she really mean it? In the phrase ‘slap and tickle’, the man does the tickling and the woman the slapping. Or do they?

The decline of the empire of Starbucks

Matthew Lynn says coffee is the pure brew of capitalism — as the credit crunch bites, no wonder the world’s most ubiquitous coffee-house chain is heading for trouble In Christopher Guest’s witty canine mockumentary Best In Show, there is a line of dialogue that tells you everything you need to know about the world’s biggest coffee chain. ‘We met at Starbucks,’ says a woman character of her current romance. ‘Not the same Starbucks, but we saw each other at different Starbucks across the street from each other.’ Not many companies are so instantly recognisable that their brand names can be dropped straight into a movie without introduction. Nor are there many whose ubiquity could be the punchline for a gag.

And Another Thing | 23 July 2008

For anyone interested in fine painting, as distinct from ‘great art’, there is a treat at the Tate for them: a display of works by British artists, from the 17th to the 20th centuries, who depicted the Orient and those who liked to dress up in Eastern style. Many of the pictures are from private collections, and this is a rare chance to see them; they are often in their original frames, well preserved and of great beauty.

Who’s in charge? It’s hapless Hank

It’s becoming harder and harder to believe that anyone is really in charge of the world’s largest economy. Each day brings a new catalogue of woes, miscues and missteps, each of which should have been foreseen long ago. And at the centre of each fresh foul-up stands one man: Treasury secretary Hank Paulson, ‘Hammerin’ Hank’, once boss of mighty Goldman Sachs, now reduced to a sort of Frank Spencer figure, constantly bemused by domestic disaster. Only in Hank’s world it’s the American mortgage industry that’s falling apart, not just the kitchen table.

And Another Thing | 16 July 2008

The other evening I went to a ‘pig roast’ in our Somerset village. It was a tremendous turnout from far and wide. There is something about the idea which stirs up deep guzzling instincts, and certainly this pig on his spit looked, and smelt, gastronomically alluring, despite the fact that six of his live colleagues waited in a nearby pen for their ‘pig race’, another local custom. People sat on bales of hay, eating slices of the pork wedged in buns. There is no elegant way of doing this, I reflected, an observation subsequently confirmed by study of the photographs taken. So what?

Can London be turned around like a troubled company?

Tim Parker, the bubble-haired venture capitalist hired to cut costs at City Hall and make Mayor Boris’s vision a reality, strolls down the curved walkway to greet me smiling widely, just like his photographs. Tall and rangy, this socialist-turned-capitalist, who is to be paid just £1 a year, is all charm and apologies for failing to turn up for our appointment the day before. He takes responsibility like a good leader should, although I suspect the serried ranks of apparatchiks from the not-so-ancien régime of attempted sabotage. They should watch out: while turning round the AA, Parker earned the sobriquet ‘Prince of Darkness’ for his skill at excising surplus staff.

Any Other Business | 12 July 2008

Martin Vander Weyer's thoughts on the world of business Shell and Barclays were the two highest-profile British companies in South Africa during the apartheid era. Both pursued non- racial business practices as far as they could, but both endured years of disrupted shareholder meetings and flak from the student Left. Shell stuck it out — and shortly after his release from prison in 1990, Nelson Mandela declared, ‘We’re glad you stayed.’ Barclays bowed to the protesters and abandoned its network of 900 branches in 1986; when the bank returned in 1995 to open one office in Johannesburg, Mandela told the men from Lombard Street, ‘You should never have sold.

Private education

School fees: a luxury you can’t afford The credit crunch is taking a terrible toll on the middle classes. They’ve started to give up their organic boxes (sales are down 10 per cent at some companies), their foreign holidays (can the new fad for camping really be a choice thing?), their Chelsea tractors, and even their privacy (their second homes are now available as holiday lets). So what’s next? Probably their children’s private education. School-fee inflation is running at well over 6 per cent a year, the average day school costs £3,000 a term, and top schools such as Eton and Wycombe Abbey charge £9,000-plus. Fifty-one schools in the UK charge more than £25,000 a year.

And Another Thing | 12 July 2008

One of the most moving stories in the history of animal life is the racing career of Red Rum. This little horse won the Grand National in 1973 and 1974, came second the next two years and then, amazingly, won it again in 1977. This third victory, the only such in the history of the race, left the hard-bitten racing crowd in tears. The horse had a proud habit of cocking his ears as he passed the winning post ahead of the field — he knew he had won. He lived to the ripe old age of 30 and is buried beside the starting gate at Aintree. No one can quite explain why certain animals make huge efforts to achieve distinction which in a human context we would call heroic.

Good news for the prudent: we’re heading for recession

So Britain is talking itself into recession. Keep chattering. If people want a recession, let them have one, so that the rest of us can benefit from it. This is not a suggestion that cold showers do us good or that a spell of reality in the housing market is overdue; it is a reminder that when other consumers have lost their confidence, the bold can take advantage of their apprehension. Slumps mean opportunities. When the majority are out of the market place, the brave can go there without being crushed or outbid. This is the time to be counter-cyclical. If for the past five years no builder even had time to give you an estimate, next year you will be swamped with workmen undercutting each other to win your job. Want a new carpet?

And Another Thing | 5 July 2008

Somebody asked: ‘How do you express your love of country in this leaden age? How do you sweep aside the multicultural poison and simply assert — “I am an English patriot?”’ I answer: ‘Create a garden, or help those who do so.’ There is no more English activity than gardening, and it has been so for over a thousand years. Indeed, there were Anglo-Saxon gardens before: traces remain. Gardens grew under castle walls, and were tended by the wives of men who wore chain mail. They took the place of water lilies when the moats were peaceably drained. The first great English essay, written by Francis Bacon early in the 17th century, is ‘Of Gardens’. I have just reread it.

Fading memories of the Raj in the tea gardens of Assam

Richard Orange says the Indian tea industry is enjoying a revival — but that the traditional tea-planters’ way of life, established by the British, is passing into history There is not much to distinguish Dhanesheva Kurmi from the rest of the crowd at the Hautely Tea Estate, a remote garden an hour and a half’s bumpy drive from the Assamese town of Jorhat. Richard Orange says the Indian tea industry is enjoying a revival — but that the traditional tea-planters’ way of life, established by the British, is passing into history There is not much to distinguish Dhanesheva Kurmi from the rest of the crowd at the Hautely Tea Estate, a remote garden an hour and a half’s bumpy drive from the Assamese town of Jorhat.

The market’s favourite scapegoat

Oh, dear, what a setback. The usual suspects have slipped through the net. They will have to be locked up in the Financial Services Authority’s waterside fortress for 42 days, while the investigators try again to find some evidence. These suspects are the short sellers: everyone’s favourite scapegoat. They are accused of rocking the banks’ leaky boats, of destabilising the stock market, of profiting from other people’s misfortunes, of driving share prices downwards to suit their own book. If it wasn’t for them, we should all be rich, or richer, at any rate, than we are now — or so we are led to believe. The textbook way to become a short seller is to borrow some shares and then sell them.

The veteran batsman who just hates to lose

Judi Bevan meets Sir Martin Sorrell, the hard-driving Eighties entrepreneur who is still chasing acquisitions for the company he created, the advertising giant WPP ‘Building a company is the nearest thing a man can do to giving birth and nurturing a child to maturity,’ says Sir Martin Sorrell, the founder and chief executive of WPP. Judi Bevan meets Sir Martin Sorrell, the hard-driving Eighties entrepreneur who is still chasing acquisitions for the company he created, the advertising giant WPP ‘Building a company is the nearest thing a man can do to giving birth and nurturing a child to maturity,’ says Sir Martin Sorrell, the founder and chief executive of WPP. ‘Nobody has a bigger emotional connection with this business than I do.

Pound sold to highest bidder

Matthew Lynn on domain name sales In Amsterdam, on the afternoon of 26 June, the pound is finally being sold off. No, Gordon Brown hasn’t decided to repeat his famous trick of dumping a chunk of the nation’s gold reserves at the nadir of the bullion market. Nor has Mervyn King decided the outlook for the British economy is now so grim he might as well sell what he can before taking himself off to Grand Cayman. Instead, ‘£.com’ is up for sale. The winner of the auction for what its owners, with a lively sense of hyperbole describe as the ‘World’s Most Exclusive Financial Domain’, will be able to use the £ sign for anything they like.

And Another Thing | 28 June 2008

In the early 1960s, Harold Macmillan used to say: ‘The three big interests any prime minister should beware of taking on are the Brigade of Guards, the National Union of Mineworkers and the Roman Catholic Church.’ The maxim was true enough in those days but 50 years later makes little sense. The Brigade still has a certain leverage, I concede, at the War House, more so than Gunners, Sappers, Greenjackets, etc., but is of no consequence outside strictly army affairs. When did you last see a Tory MP or the chairman of a big quoted company wearing a Brigade tie? The power of the NUM was destroyed by Margaret Thatcher in the 1980s, and Arthur Scargill, the man who helped her do it by his obstinate stupidity, is forgotten.

Global Warning | 28 June 2008

No doubt a Martian arriving on earth for the first time would perceive little difference between an inhabitant of Great Britain and an inhabitant of New Britain (off the coast of New Guinea), except perhaps that the former showed a greater propensity than the latter to get drunk and scream in public. Similarity and difference are what G.E. Moore would have called non-natural qualities, and are in the eye of the beholder: as a woman was overheard to remark in a Dublin bus, now that the Emerald Isle has become an El Dorado, ‘Russians, Nigerians, Chinese, they all look the same to me.’   It was Freud who remarked on the narcissism of small differences: but what, exactly, are small differences?

Wishful thinking at the Economist

In 1990, the former Wall Street trader Jim Rogers (interviewed here by Jonathan Davis, 15 March) set off to circumscribe the globe astride a large motorcycle. He returned in 1992 having pondered the meaning of life — and the answer was ‘commodities’. As a player of markets, he did not have to do anything so practical as to go out and drill or mine. He just kept buying more commodity futures — a gigantic bet that commodity prices would rise. He was right, and became hugely wealthier as a result. But as the price of oil, the world’s most essential commodity, continues to rise, listen for the sound of market ideologies creaking under a weight they cannot bear: for example, in the Economist’s editorial last week. ‘Speculators do not own real oil...