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Five Strategic Steps to Unlock Armenia’s Data Center Potential for Economic Growth

Five Strategic Steps to Unlock Armenia’s Data Center Potential for Economic Growth

5 Key Motivations for Emphasizing Savings and Actionable Steps to Start

5 Key Motivations for Emphasizing Savings and Actionable Steps to Start

Six buildings from around the globe setting industry standards

Six buildings from around the globe setting industry standards

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Five Strategic Steps to Unlock Armenia’s Data Center Potential for Economic Growth
Currency 2026-07-27 14:20

Five Strategic Steps to Unlock Armenia’s Data Center Potential for Economic Growth

Armenia's data center industry offers significant opportunities for economic growth, with strategic reforms in regulation, financing, and technological innovation playing crucial roles. Addressing infrastructure challenges and fostering public-private partnerships will help position Armenia as a regional digital hub. Armenia is poised for a digital transformation with the development of its data center industry. This sector holds promise for the country's digital economy.  Key opportunities such as regulatory considerations, financing strategies, and the need for technological advancements must be embraced to leverage this industry for economic growth and digital innovation.  Armenia's strategic location, coupled with its growing tech-savvy population and vibrant ICT ecosystem, make it a candidate for becoming a regional data hub. However, the current infrastructure and regulatory environment need improvements to attract international investments and foster local innovation. Addressing these issues is important for Armenia to unlock its potential. To overcome these challenges, five steps can be taken: Regulatory Reforms: Streamlining regulations to facilitate easier entry and operation for data center companies. Simplifying the process for obtaining necessary permits and licenses, as well as creating a more transparent and predictable regulatory framework, can create a more business-friendly environment that attracts both local and international investors. Financial Incentives: Providing financial support and incentives to attract investments in the data center sector. This could involve infrastructure support and sustainability incentives to companies that invest in building and operating data centers in Armenia. Additionally, exploring the establishment of public-private partnerships to share the financial risks and rewards of developing this critical infrastructure is essential.  Technological Upgrades: Investing in advanced technologies to enhance the efficiency and sustainability of data centers. This includes adopting energy-efficient cooling systems, utilizing renewable energy sources, and implementing cutting-edge data management and security solutions.  Staying at the forefront of technological advancements ensures that Armenia's data centers are competitive and reliable on a global scale. Public-Private Partnerships: Encouraging collaboration between the government and private sector can drive innovation and growth in Armenia’s data center industry. By leveraging the expertise and resources of both sectors, Armenia can accelerate development and build a more resilient digital economy. Successful examples of such partnerships can be seen in countries like the United Arab Emirates, Singapore, and India. Capacity Building: Developing a skilled workforce to support the data center industry through training and education programs. Offering specialized courses and certifications in data center management, cybersecurity, and related fields ensures that Armenia has the talent needed to sustain and grow its data center industry over the long term. The development of the data center industry in Armenia is not just a local issue; it has broader implications for the region.  Successful implementation of these recommendations could position Armenia as a digital hub in Central Asia, attracting international investments and fostering regional cooperation. The ongoing efforts to address these challenges are already showing promising results, with several key players expressing interest in the Armenian market. Moreover,  the growth of the data center industry in Armenia could have a positive ripple effect on other sectors of the economy. For example, the increased demand for high-speed internet and reliable power supply could spur investments in telecommunications and energy infrastructure.  Additionally, the development of data centers could create new opportunities for local MSMEs (such as construction companies, equipment suppliers, and service providers) which are important contributors to economic welfare.  Armenia has the potential to become a center for data-driven innovation and research. By attracting leading technology companies and research institutions, Armenia can foster a vibrant ecosystem of innovation that drives economic growth and improves the quality of life for its citizens. This could include initiatives such as smart city projects, digital health solutions, and advanced manufacturing technologies. Armenia has a lot of untapped captive renewables that can be harnessed to power these data centers sustainably. By leveraging its abundant solar and wind resources, Armenia can ensure that the growth of its tech sector is both environmentally friendly and economically beneficial. This approach not only mitigates the environmental impact but also positions Armenia as a leader in green technology and sustainable development.  While there are many positive aspects to consider, it is also important to address the potential environmental impact of data centers and the importance of sustainable practices in their development.  Data centers are known for their high energy consumption and carbon footprint, so it is crucial to adopt green technologies and practices to minimize their environmental impact. This includes using renewable energy sources, implementing energy-efficient cooling systems, and adopting sustainable building practices. Additionally, the role of cybersecurity in ensuring the safety and reliability of data centers is another critical area that needs attention. As data centers store and process vast amounts of sensitive information, they are prime targets for cyberattacks.  Therefore, it is essential to implement robust cybersecurity measures to protect against data breaches, hacking, and other cyber threats. This includes investing in advanced security technologies, conducting regular security audits, and providing cybersecurity training for employees. Continuous innovation and adaptation are crucial for Armenia’s data center industry. To stay competitive, data centers must adopt the latest technologies, including artificial intelligence and machine learning to enhance efficiency, security, and scalability. If Armenia successfully addresses these challenges, it could unlock significant economic benefits and position itself as a leader in the digital economy. The future of Armenia's digital landscape depends on the actions taken today, making it imperative for stakeholders to collaborate and drive the necessary changes. The development of the data center industry in Armenia presents a unique opportunity for the country to enhance its digital presence and drive economic growth. By addressing the key challenges and implementing the recommended solutions, Armenia can create a thriving data center industry that benefits not only the local economy but also the broader region.

5 Key Motivations for Emphasizing Savings and Actionable Steps to Start
Finance 2026-07-27 11:23

5 Key Motivations for Emphasizing Savings and Actionable Steps to Start

While the phrase "save for a rainy day" is widely recognized, its importance is often underestimated. For many, the idea of setting aside funds can seem daunting, especially when finances are already tight. The option to use credit cards or loans for significant expenses might seem practical, but it can lead to a cycle of debt and financial strain. However, opening a savings account offers numerous benefits that might not be immediately clear. The Value of Saving: 5 Compelling Arguments If you're still on the fence about the importance of saving, here are five compelling reasons to consider starting now. 1. Offers a Financial Safety Net in Times of Uncertainty Imagine losing your primary income—how would you cover essentials like housing, food, and utilities? Even with steady employment, the risk of unforeseen financial challenges is real, and research shows that nearly half of Americans couldn't cover their basic living expenses for three months without income. An emergency fund acts as a financial buffer for unexpected events such as job loss, medical emergencies, or costly repairs. By saving regularly, you can avoid falling into arrears and accumulating high-interest debt while you work on regaining financial stability. 2. Supports the Achievement of Major Life Goals Savings are essential not just for emergencies; they are also vital for achieving significant life goals. For example, if purchasing a home is part of your plans, you will likely need a down payment. As of 2024, the average homebuyer requires around $67,500 for this purpose. While accumulating such a sum takes time, starting with small, regular savings can help you reach your goal more quickly. 3. Reduces Dependence on Debt When cash flow is low, borrowing might seem like a quick solution, but it often comes with a cost. Loans and credit cards incur interest and fees that increase your financial burden. For instance, charging $1,000 to a credit card with a 22% APR and paying it off over a year would result in an additional $123 in interest. Borrowing from friends or family can also put relationships at risk if repayment is not handled properly. With savings, you have the freedom to manage expenses without incurring debt or uncomfortable obligations. 4. Improves Psychological Well-being Financial stress is a significant burden for many individuals. A 2024 survey revealed that nearly 90% of participants experience financial anxiety, with insufficient savings being a primary concern. Maintaining a savings account can alleviate this stress by affording you greater control over your finances and reducing the likelihood of procrastinating or avoiding financial management tasks. The peace of mind that comes with financial security can greatly improve your overall mental health. 5. Ensures Long-term Financial Stability Planning for retirement might not seem urgent at the moment, but it's a fundamental aspect of financial stability. To maintain your lifestyle post-retirement, you will need savings and investments that have accumulated over time. Starting early is essential, as the power of compound interest is on your side. Whether through a 401(k), IRA, or other tax-advantaged accounts, setting money aside for retirement ensures a comfortable future. Tactics to Boost Your Savings Understanding the importance of saving is one thing—implementing it is another. Here are some practical methods to get started: Open a High-Yield Savings Account: This account type offers higher interest rates, which can help your savings grow more rapidly while keeping your funds liquid. Automate Your Savings: Set up automatic transfers from your paycheck to your savings account to make saving a hassle-free and consistent practice. Start with Small Contributions: Even modest contributions, such as $5 per week, can create momentum and foster the habit of saving. Review Your Budget:

Six buildings from around the globe setting industry standards
Business 2026-07-26 18:04

Six buildings from around the globe setting industry standards

From São Paulo to Tokyo, these six projects are setting a benchmark for developers. It can be easy to focus on the bottom line over the quality of the build but the two go hand in hand: smart design can ensure the longevity of a project, making it a smart investment.best for heritage restorationBoksto SkverasVilnius, LithuaniaIt’s rare for developers to give architects the time and budget that a large-scale project requires. But Boksto 6, a mixed-use development in Vilnius, is one such case. Here, London-based architecture firm Studio Seilern was able to sensitively restore six buildings in the old town over the course of a decade. The original site had been derelict since the 1990s, when it was purchased in 2008 by Lithuanian retail entrepreneurs the Oritz brothers.Vilnius is a Unesco World Heritage site so Studio Seilern – led by the firm’s founder Christina Seilern – needed local authorities to sign off on every detail. The first phase consisted of an archaeological excavation that lasted seven years. Layers of architectural styles spanning 500 years – from Gothic vaults to Baroque structures – were revealed, as well as the evolving function of the site; over the years it has served as a chapel and a hospital. Deep foundations Boksto 6 owes its looks in part to the 500-year heritage uncovered by architects Studio Seilern during its initial work on the project.This provided Studio Seilern with a visual language for the project, which consists of private residences and offices but also a health club and spa, a restaurant, chapel and performance space across the six buildings organised around a central courtyard. “We were fascinated by the history,” says Seilern. “We also took inspiration from the Alhambra in Spain, with polished steel insertions that mimic reflective pools.”Since opening in 2022, Boksto 6 has reinvigorated a parcel of Vilnius’s city centre, sparking a wave of regeneration. How about that for a measure of a property development’s success?studioseilern.combest for apartment livingOnze22São Paulo, BrazilCompleted in 2023 and towering above São Paulo’s tree canopy, it’s hard to miss apartment block Onze22. This product of Franco-Brazilian studio Triptyque Architecture was built by overlapping suspended slabs of concrete in a style reminiscent of early Brazilian modernist architecture. It is in the city’s Vila Madalena neighbourhood, its floor-to-ceiling windows and translucent façades offering residents a panorama of the cityscape from every natural-light-flooded apartment. For Triptyque’s co-founder, Guillaume Sibaud, Onze22 was a chance to explore how to integrate the natural environment in an urban building. “We’re in an urban area but Vila Madalena is a place characterised by lots of vegetation,” says Sibaud. “It was about inserting the building in that soil and letting nature move through it.”High water markOnze22’s rooftop pool is just one of the development’s communal spaces that blend the shared and private realms to create its sense of a ‘grand house’.Triptyque was established by a group of French and Brazilian associates in 2000 and is made up of two studios: one in Paris and one in São Paulo. The resulting back and forth between France and Brazil inspires the studio to experiment with different traditions. “Brazilian architecture has pushed the principles of modernism to the limits, composing spaces horizontally with slabs that allow movement without obstacles,” adds Sibaud. “Onze22 is really in line with this tradition”.In addition to paying homage to the country’s architectural heritage, the structure also carefully strikes the balance between public and private space – an essential trait in any multi-residential structure – with the building set on pillars, elevating the ground floor apartments to ensure privacy. This sense of seclusion is enhanced by verdant gardens at the base, which provide screening from passersby. In addition to being able to wander through the gardens, residents can also enjoy communal amenities, from workspaces to a gym and rooftop pool. The result is a building whose tenants feel as though they are living in a grand house rather than an apartment – a key ambition in Triptyque Architecture’s work. “Giving house-like qualities to apartments keeps cities attractive, as dense but enjoyable spaces,” says Sibaud.triptyque.combest mixed-use developmentMercadoGroningen, The NetherlandsFor many years, Rode Weeshuistraat, a street running through the Dutch city of Groningen’s northern quarter, languished in the shadows of the warehouses and shops that backed onto it. It’s a situation that Dutch developers MWPO and Beauvast have addressed, commissioning architects De Zwarte Hond and Loer Architecten to let light and life back into the city with the construction of a new building, Mercado, in 2023.“We were working with a difficult legacy at the start,” says Frank Loer, founder of Loer Architecten. “Over the years, the warehouses in the centre of the city had become empty and unused, leaving the heart of Groningen full of vacant buildings. This applied to Rode Weeshuistraat in particular. We knew we had to transform the street.”Mercado’s graduated, stepped exteriorGreenery softens the outdoor spacesInside one of Mercado’s 41 apartmentsWorking in collaboration, De Zwarte Hond and Loer Architecten set out to make their vision a reality. Step one was to demolish a building used for storage, before opening a new square and constructing the mixed-use structure. “We worked with the council to develop a narrative for the area centred around walking,” says Henk Stadens, partner at De Zwarte Hond. Keeping pedestrians and businesses in mind, Stadens, Loer and their teams brought together a mix of retail spaces on the ground floor of Mercado with 41 apartments built on the levels above.Lush greenery overhangs the building’s boundaries, animating its exterior, while its stepped form means that it doesn’t overwhelm the street. “One thing we’ve noticed people appreciate about the building is its sense of generosity,” says Stadens. “The richness of the building, with its vegetation, the texture of its ceramic tiling and the variation in height captivates people. Often their reaction is just to come up to Mercado to touch it.”Loer and Stadens are clear that the way for cities to develop isn’t to invest in sprawl but to look for density. “In many ways, urbanism comes above architecture for us,” says Loer. “If you want to change a city, it’s important to consider public space. Then you can think of buildings as actors in your quest to create those conversations and interactions.”loerarchitecten.com; dezwartehond.nlQ&A: Muyiwa OkiThinking bigRiba President Muyiwa Oki is an architect at construction consultancy Mace Group.When Nigeria-born Muyiwa Oki assumed the mantle of president of the Royal Institute of British Architects (Riba) in 2023, he made history, not just as the institute’s first black president but also as its youngest. His election was built on a campaign that aimed to, in his words, “have the voices of younger, emerging practitioners heard”. It’s an aim he is furthering at Mipim, as one of the jury members of its Challengers programme: an initiative that invites 16 young real-estate professionals to share visions for how to build a better world. Why get involved in a programme championing the perspectives of young people in property?A key part of my work at Riba has been giving a platform for younger people to share perspectives on key issues in the built environment. That’s what I’m trying to do with the Challengers programme, in which young people write an essay suggesting solutions to the big issues – such as climate change or urban regeneration – and present at Mipim. We had more than 100 entrants from across the globe and selected 16 of them. Some of the ideas aren’t necessarily new but they’re left in the university curricula and aren’t broadcast to a wider audience, such as urban farming and how it could work in places like South America. Our hope is that people at Mipim see these as solutions to real-life problems and don’t stick to the status quo.Why is it important to look for more of these radical solutions?People are aware that the real estate, building and construction industry has an effect on the environment. About 40 per cent of global greenhouse-gas emissions come from construction. We want everyone to live as long as possible in prosperous communities, so we need solutions like these.What are some of the steps we can take?It’s about considering the notion of the triple bottom line: people, planet, profit. That has become common knowledge, so now it’s about how to make this happen – and do so in a sustainable way.best cultural developmentHaus 1 at Atelier GardensBerlin, Germany“It’s a modest paint job,” says Jacob van Rijs, partner at Rotterdam-based architecture firm MVRDV. That is one way to characterise Haus 1, an eye-catching architectural addition to an industrial area in the south of Berlin. It has been given an upgrade and finished in sunshine yellow paint.Step by stepBy taking things slowly and involving the local community, developers Fabrix won over what can be a tricky city to build in.Haus 1 is part of Atelier Gardens, a redevelopment of Berliner Union Film Ateliers (Bufa), the vast studios dating back to 1912 when Germany’s film industry was booming. In 2019, London-based developer Fabrix bought the site and commissioned a masterplan from Dutch studio MVRDV. Berlin is not known for welcoming foreign developers but Atelier Gardens has been met with enthusiasm. It hosts film festivals and launch parties, and thanks to means-tested rents, there is a diverse mix of tenants, from tech companies to micro-farming collectives. Fabrix also involved local stakeholders from the start. “We didn’t just show up with plans,” says its CEO, Clive Nichol. “We spent three years talking.” Haus 1 is proof that a grassroots approach can make even daring transformation easy.mvrdv.combest for the elderlyCharm Premier Grand nursing homeTokyo, JapanWith nearly a third of its population of 125 million now over 65, Japan is leading the way in thinking about how best to meet the diverse needs of its senior citizens. Nikken Housing System, a Tokyo design and consultancy practice, specialises in the subject: it recently won the gold medal for residential projects at the Mipim Asia Awards, for the second phase of an upmarket nursing home in Tokyo it built with Mitsubishi Estate Residence.With its balconies, picture windows and sleek wooden louvres, it’s apparent that Charm Premier Grand Gotenyama Nibankan is unlike most facilities for the elderly. “The feeling of ‘home’ can get lost amid the handrails and corner guards of nursing homes,” says architect Masahiro Suzaki, general manager of the design team at Nikken Housing System. There are double rooms for couples, cypress and stone baths, a premium food menu and 24-hour nursing. Other services include a concierge, yoga classes and dog therapy. The nursing home, in the leafy neighbourhood of Gotenyama, has 37 rooms that can be adapted to residents’ needs, with bathrooms and kitchens for those who want to live more independently. “We’ve tried to create an environment where residents can move in without feeling a major shift in their lifestyles,” says Suzaki. The design also allows for changes as care progresses and takes in the needs of nurses and wheelchair users. The dining room and lounge can be accessed from the street so that residents can come and go as they please and air circulates through open corridors, giving the interior a sense of the outdoors. While the home would be too high-end for many, the ideas here could be adapted to different settings. “Architecture can improve quality of life for the elderly,” says Suzaki.charmcc.jpbest for social housingSunflower HousesVienna, AustriaFor a fresh look at social housing, take a stroll through Sonnenblumenhäuser (German for Sunflower Houses) in Vienna. Part of the Wildgarten, a new residential neighbourhood in the city’s southwestern suburbs, it features 82 housing units across 11 buildings. Austrian Real Estate (ARE), the landowner, commissioned Madrid-based architecture firm Arenas Basabe Palacios for the project, which also features community spaces, shared bike-parking facilities and ground-floor commercial units.“The construction is the opposite of typical, conventional solutions for suburban environments,” says architect Luis Palacios Labrador of Arenas Basabe Palacios. “It follows neither the model of a garden city nor that of a single-function development of blocks.” The buildings have yellow, white or wood-clad exteriors, with south-oriented living spaces that open towards private gardens. A low-maintenance green space known as the Allmende(common land) adds to the community feel. The buildings vary in height and type, with small ones containing single-family and duplex housing mixed with larger structures of apartments. This ensures that all the interior rooms receive sunlight and shows that social housing need not be drab or overly uniform.“It follows neither the model of a garden city nor that of a single-function development of blocks”The decision to design buildings on different scales has implications beyond the Sonnenblumenhäuser: it provides a model for a variety of investors to get involved, from developers who can create smaller buildings and medium-sizedBaugruppen(co-living and co-housing projects) to the city council providing the backing for the largest blocks. “In this way, we open up the forming of the city to a more inclusive process, where all these agents are represented,” says Palacios Labrador.arenasbasabepalacios.com

Navigating the Policies of the New US Administration: Asia's Path Forward
Currency 2026-07-26 18:00

Navigating the Policies of the New US Administration: Asia's Path Forward

The new US administration's policies, including increased tariffs and other strategic moves, have the potential to significantly impact Asian economies. It is crucial for these nations to bolster their resilience through regional cooperation and open trade practices. What are the potential effects of the new US administration's policies on Asia-Pacific economies, and how should they adapt? To address these questions, the ADB has recently conducted two comprehensive studies, utilizing distinct global models—one emphasizing macroeconomics and the other focusing on trade—to gauge the possible effects. The first study delves into the repercussions of the US adopting assertive policies, such as imposing 60% tariffs on the People’s Republic of China (PRC) and 10% tariffs on other nations, alongside reduced immigration and expansive fiscal policies. The second study zeroes in on the impact of tariffs alone, hypothesizing a 60% tariff on Chinese imports and exploring various tariff scenarios for other countries, including 10% versus 20% tariffs, across-the-board tariffs versus exemptions for nations with free trade agreements with the US, and retaliatory tariffs versus no retaliation. What insights can we glean from these analyses? Firstly, the detrimental effects on China's economy from 60% tariffs are relatively limited. The macroeconomic model from the first study suggests that growth would slow by only 0.3% annually over the four-year term of the new administration. The trade model anticipates even lesser impacts due to the possibility of trade redirection and minimal effects on global output. If the US opts for the recently announced 10% additional tariffs, the impact would be even less severe, although further reviews of US trade imbalances could result in increased tariffs later in the year. One reason for the muted impact of high US tariffs is the declining significance of US exports (both direct and indirect) on China's economy, which now accounts for merely 3% of the country's GDP. Evidence from President Trump’s first term indicates that China was capable of redirecting exports to other countries, with the cost of US tariffs largely falling on US consumers and businesses. Secondly, the impact on other Asian economies is expected to be mixed, with some potentially experiencing faster growth due to new export opportunities to the US, replacing goods previously exported from China. Trade diversion opportunities, which benefited export-competitive economies like Viet Nam, were also evident during the initial US-China trade conflict. The recent shift in foreign direct investment (FDI) from China to other Asian economies, particularly in Southeast Asia, in strategic sectors is likely to be intensified. However, it would be incorrect to assume that US tariffs on China have zero-sum effects, hurting China and aiding other Asian economies. This is because the Chinese economy has become increasingly intertwined with regional economies through trade and investment, despite global geoeconomic fragmentation. Consequently, slower Chinese growth can harm other economies by reducing the demand for imports, and reduced Chinese exports to the US can negatively affect economies supplying capital equipment and inputs to Chinese exporters, notably high-tech economies in East Asia, such as the Republic of Korea and Japan. Moreover, if higher US tariffs on China encourage other Asian economies to attract more FDI and increase exports to the US, Chinese firms can still partake in these benefits by escalating their outbound FDI and exporting intermediate inputs to these economies. Such investment and trade patterns are already apparent, especially in Southeast Asia. The trade study also reveals that economies with trade agreements with the US will benefit if they are exempt from US tariff hikes while their competitors without such agreements face tariffs. Most economies in the region lack such agreements and would thus be adversely affected by a differentiated policy. Lastly, regional economies should exercise caution when considering retaliatory tariffs in response to higher US tariffs. Increased import tariffs can lead to higher import prices, contributing to inflation, making goods more expensive for domestic consumers, and raising production costs for businesses reliant on imported intermediate inputs. Perhaps more significant for Asian economies than tariffs is the impact of the new administration’s policies on US inflation and interest rates. All announced policies—to raise tariffs, reduce immigration, and extend or possibly increase tax cuts—are likely to be inflationary, leading to higher US interest rates for extended periods. These expectations are already reflected in the shift in the US bond yield structure since the US election. Despite progress by many Asian economies in reducing reliance on US-denominated debt, financial

Harnessing Trade, Digital Innovation, and Connectivity for ASEAN's Growth
Currency 2026-07-25 11:47

Harnessing Trade, Digital Innovation, and Connectivity for ASEAN's Growth

The Association of Southeast Asian Nations (ASEAN), in response to the evolving global economic dynamics, has the opportunity to strengthen economic stability and sustainable growth through a focus on trade, tourism, and digital advancement. In today's competitive global marketplace, countries are reassessing their supply chains to reduce vulnerabilities and are adopting protectionist policies to support local industries. Moreover, issues like climate change and the race for advanced technologies such as AI and big data are increasingly considered from a national security perspective. Within this context, the ASEAN community, consisting of 10 member states, must work together to ensure a prosperous economic future and to protect their national interests, with a particular focus on trade, digitalization, and connectivity. Trade, particularly in services, is set to be a key driver for ASEAN economies, including sectors like finance, telecommunications, tourism, transportation, and professional services. These areas are essential for job creation and economic growth. After the pandemic, while trade in goods has decelerated, service trade has shown an upward trend, positioning ASEAN as a net exporter of services. Tourism offers significant potential for ASEAN, showcasing the region's allure as a travel destination. To enhance competitiveness in tourism, ASEAN countries are expected to collaborate on infrastructure, skill development, marketing, and product innovation to increase intra-regional travel, which currently represents over 40% of ASEAN's international tourism, thus bolstering regional economic resilience. The regional digital economy, encompassing e-commerce and digital health, is expected to grow from $300 billion to nearly $1 trillion by 2030. With effective policies on digital connectivity through regional cooperation, this growth could be doubled. The Digital Economy Framework Agreement is crucial for this collaboration, covering areas such as digital standards, data flows, cybersecurity, digital trade, and the mobility of digital talent, among other components of digital public infrastructure. Digital collaboration is also expected to bring additional benefits, including positive environmental effects, social cost savings of $12-30 billion, increased resilience, job creation, and improved access to education and healthcare. Furthermore, both physical and institutional connectivity are vital for ASEAN's economic competitiveness, enhancing engagement with larger Asian and global economies. Sustainable infrastructure, including renewable energy, low-carbon transport, and urban energy efficiency, is gaining traction. By integrating this with enhanced digital cooperation and streamlined cross-border logistics and supply chains, facilitating the movement of goods, services, and people across borders will protect the environment and strengthen regional resilience. The collective approach to sustainable infrastructure is advantageous for ASEAN members committed to the Paris Agreement, with Nationally Determined Contributions aiming for net-zero CO2 emissions by 2050 and net-zero greenhouse gas emissions by 2065, to cap global temperature increases at 1.5°C. It is a strategic moment for ASEAN policymakers to reconsider collaboration. Amidst global economic fragmentation, there are areas that require cross-border cooperation. Economic self-reliance has increased in the region, and with pressing issues such as digitalization and climate change, mismanaged interdependence could lead to costs and economic challenges. Therefore, for the upcoming term of ASEAN regional cooperation until 2045, member countries should regard their collective actions as a regional public good, where the benefits of enhanced trade, tourism, digitalization, and connectivity will result in sustainable and resilient outcomes for the region's population.

Investing Psychology: The Impact of Emotions on Financial Choices and Strategies for Rationality
Finance 2026-07-25 18:40

Investing Psychology: The Impact of Emotions on Financial Choices and Strategies for Rationality

While investing is frequently perceived as a purely analytical pursuit, relying on data and economic metrics, it is equally influenced by psychological factors. Emotions such as fear, greed, and overconfidence can significantly sway investment choices, often steering investors away from rational, long-term financial strategies. From the anxiety during market slumps to the allure of trending stocks or the exuberance in booming markets, these emotional responses can lead to decisions that deviate from a carefully planned investment approach. Gaining insight into the psychological tendencies that sway investors and developing tactics to combat these biases can enhance discipline and effectiveness in financial decision-making. This piece delves into the psychological aspects influencing investment choices, prevalent biases leading to irrational actions, and actionable strategies to sidestep emotional pitfalls for more informed and rational financial choices. 1. Psychology's Influence on Investing Investing fundamentally involves risk management and decision-making aimed at optimizing financial returns over time. However, emotions are inextricably linked to decision-making, especially in volatile market conditions. Investors often grapple with balancing financial aspirations with emotional responses to market fluctuations. Psychological elements are pivotal in how we perceive risks, rewards, and uncertainties. Recognizing these influences is essential for becoming a more adept investor. While some emotional reactions are to be expected, unchecked emotions can result in hasty decisions that compromise investment strategies. 2. Common Biases Impacting Investment Decisions Investors are prone to biases—cognitive distortions that skew rational thinking. These biases can lead to choices that do not serve their best interests. Here are some prevalent psychological biases that can adversely affect investment decisions: Loss Aversion: This bias causes individuals to feel the pain of losses more intensely than the joy of equivalent gains. In investing, it may prompt emotional reactions to declining investments, prompting investors to cling to losing positions, hoping for recovery, potentially leading to missed opportunities and subpar portfolio performance. Tip: Assess investments based on their prospective value rather than holding onto them due to the fear of realizing losses. If an investment no longer fits your objectives, consider letting go and reallocating resources. Herd Mentality: This bias describes the inclination to follow the actions of a larger group without understanding the rationale. In investing, it can result in blindly buying into popular trends, like tech stocks or cryptocurrencies, leading to speculative bubbles where investors overvalue assets. Tip: Resist the herd mentality. Make decisions based on personal research and objectives, focusing on a diversified portfolio that matches your risk appetite and investment timeline. Overconfidence Bias: Overconfidence leads to an overestimation of one's ability to predict outcomes or "beat the market," often resulting in excessive risk or reactive trading based on short-term market movements, which can be costly. Tip: Maintain a modest outlook on investing. Acknowledge the unpredictability of markets and focus on long-term objectives and diversified strategies rather than market timing. Recency Bias: This bias causes investors to weigh recent events more heavily than long-term trends, potentially leading to poor decisions like selling during dips or buying overvalued assets during bull markets. Tip: Look at market conditions in the context of historical long-term trends and avoid basing decisions on short-term fluctuations, maintaining a balanced portfolio aligned with your goals. Confirmation Bias: This bias leads investors to seek information that confirms their beliefs while disregarding contradictory data, potentially resulting in poor investment choices. Tip: Seek diverse information and be open to reevaluating investments if new evidence challenges your assumptions. Anchoring Bias: Investors may rely too heavily on initial information, such as purchase prices, for future decisions, leading to poor choices like holding onto assets that no longer meet investment criteria. Tip: Concentrate on the fundamentals of investments rather than being anchored to past prices, and reassess your portfolio regularly to ensure alignment with your strategy and objectives. 3. Emotional Responses to Market Fluct

Editor’s letter: Andrew Tuck talks going on with the show
Business 2026-07-24 18:18

Editor’s letter: Andrew Tuck talks going on with the show

Monocle has always had a penchant for a good trade fair. Enter the halls of convention centres across the world and you are suddenly immersed into the lives of coffee traders, bathroom-equipment manufacturers, textile brands or motor manufacturers. While some events come and go from our schedule, many of these gatherings remain annual fixtures on our editorial calendar. One of these is Mipim, the world’s most important property and real estate event. The marché international des professionnels de l’immobilier (hence why they call it Mipim) has been running since 1990 and has an attractive home, the Palais des Festivals in Cannes (the venue that also hosts the town’s famous film festival).But it’s not just the chance to be in the south of France that pulls us in. As you walk the halls, track down people for interviews and off-the-record briefings, you build a detailed map of which cities and nations are on the move – often upwards with the help of skyline-defining edifices – and where’s struggling. But you also get a sense of social trends – is office life truly doomed or just transforming? Do people feel secure and welcome in the cities where they live? If not, why? And you can also spot who’s really investing in sustainability, in beauty, in liveability; and who the sharks are. We’ll be heading back there in March, finding the stories that we think you should know about and tracking down the people we should all be listening to.But why wait until then? For this issue of Monocle, we have hit the streets in cities from São Paulo to Copenhagen to meet the developers, foundations, builders and co-operatives that we think are doing some good. People and organisations that are looking beyond pure profit to deliver care homes where the elderly are embraced by architecture, offices where people find collaboration and consensus easy to achieve, buildings that have been adapted for re-use with élan. It’s a realm that we should all take an interest in – the world of property and development can make or break a neighbourhood and shape our lives for the better or for the worse.As part of the report, I met architect Guillermo Reynés of gras Reynés Arquitectos in Palma de Mallorca to see through his eyes a project that he has delivered for the Fluxà family, founders of Camper shoes among other things. It’s a series of seven buildings built around a busy intersection of roads in the El Terreno neighbourhood, once the happening heart of nightlife but in recent years down on its luck. Client and architect have come together to create a series of buildings that contain homes to rent, a café to linger in, offices, a flower shop, a bakery and a supermarket – all in a rich array of colours and materials. As with many of the people we interviewed, both Reynés and Miguel Fluxà, CEO of Camper, spoke less about profit (they could have just lobbied for another hotel) than about giving back to a city they care about.One country that seems to be hiring ever bigger booths and stands at trade fairs is Poland. In sectors from finance to medicine, architecture and, yes, property, Poland is playing an ever-more important role. But there’s one trade where its rise is truly astonishing: furniture manufacturing. Flatpack masters and high-end brands have all been coming to the country to have products expertly made. Poland is now one of the world’s top-three furniture exporters. This month,our Expotrundles through snowy forests and into hi-tech factories as we grasp what’s been happening.We also meet the conscripts in the Lithuanian army, discover the most covetable collection of graphic design for sale, see how France intends to keep crowds at the Olympic Games safe and meet the chefs who cook for presidents and kings.Some different house news. We have a lot of projects and plans in play for 2024: expect more physical Monocle spaces, new books, a digital initiative and plenty of events. The first of these is an outing for The Chiefs, the event where we ask leaders in numerous fields to tell us their stories, reveal their tips for success. It’s in Hong Kong on Wednesday 27 and Thursday 28 March. Come. We’d love to see you. We might even check out some real estate.Please feel free to send suggestions, tips and perspectives. You’ll find me atat@monocle.com.Illustrator:Motiejus Vaura

Investing and Emotional Impact: Navigating the Psychological Landscape of Finance
Finance 2026-07-24 18:00

Investing and Emotional Impact: Navigating the Psychological Landscape of Finance

Although investing is often seen as a purely analytical activity, based on data and economic indicators, it is also significantly impacted by psychological elements. Emotions such as fear, greed, and overconfidence can greatly influence investment decisions, often pulling investors away from rational, long-term strategies. Whether it's the anxiety during market downturns or the temptation of trending stocks, these emotional reactions can lead to choices that diverge from a well-thought-out investment plan. Understanding the psychological factors that affect investors and developing strategies to counteract these biases can improve discipline and effectiveness in financial decision-making. This article explores the psychological factors that influence investment decisions, common biases that lead to irrational behavior, and practical strategies to avoid emotional traps for more informed and rational financial choices. 1. The Role of Psychology in Investing Investing inherently involves managing risk and making decisions to maximize financial returns over time. However, emotions are deeply intertwined with decision-making, particularly in volatile market conditions. Investors often struggle to balance financial goals with emotional reactions to market changes. Psychological factors play a crucial role in how we perceive risks, rewards, and uncertainties. Acknowledging these influences is vital for becoming a more skilled investor. While some emotional responses are natural, unchecked emotions can lead to impulsive decisions that undermine investment strategies. 2. Common Biases Affecting Investment Decisions Investors are susceptible to biases—cognitive distortions that distort rational thinking. These biases can lead to choices that do not serve their best interests. Here are some common psychological biases that can negatively impact investment decisions: Loss Aversion: This bias makes individuals feel the pain of losses more intensely than the pleasure of equivalent gains. In investing, it might cause emotional reactions to falling investments, prompting investors to hold onto losing positions, hoping for a rebound, potentially leading to missed opportunities and poor portfolio performance. Tip: Evaluate investments based on their future potential rather than holding onto them due to the fear of realizing losses. If an investment no longer aligns with your goals, consider releasing it and reallocating resources. Herd Mentality: This bias describes the tendency to follow the actions of a larger group without understanding the reasons. In investing, it can lead to blindly buying into popular trends, like tech stocks or cryptocurrencies, resulting in speculative bubbles where investors overvalue assets. Tip: Resist the herd mentality. Make decisions based on personal research and objectives, focusing on a diversified portfolio that matches your risk tolerance and investment horizon. Overconfidence Bias: Overconfidence leads to an overestimation of one's ability to predict outcomes or "beat the market," often leading to excessive risk or reactive trading based on short-term market movements, which can be costly. Tip: Maintain a humble outlook on investing. Recognize the unpredictability of markets and focus on long-term objectives and diversified strategies rather than market timing. Recency Bias: This bias causes investors to give more weight to recent events than long-term trends, potentially leading to poor decisions like selling during dips or buying overvalued assets during bull markets. Tip: Consider market conditions in the context of historical long-term trends and avoid basing decisions on short-term fluctuations, maintaining a balanced portfolio aligned with your goals. Confirmation Bias: This bias leads investors to seek information that confirms their beliefs while ignoring contradictory data, potentially resulting in poor investment choices. Tip: Seek diverse information and be open to reevaluating investments if new evidence challenges your assumptions. Anchoring Bias: Investors may rely too heavily on initial information, such as purchase prices, for future decisions, leading to poor choices like holding onto assets that no longer meet investment criteria. Tip: Concentrate on the fundamentals of investments rather than being anchored to past prices, and regularly reassess your portfolio to ensure alignment with your strategy and objectives. 3. Emotional Reactions to Market Fluctuations

The Influence of Behavioral Economics on Personal Financial Decisions: Insights into Monetary Psychology
Finance 2026-07-23 18:06

The Influence of Behavioral Economics on Personal Financial Decisions: Insights into Monetary Psychology

While personal finance might seem like a simple mathematical pursuit involving income, savings, investments, and expenditures, the reality is that psychological elements often sway individuals from making purely rational choices. Behavioral economics, an interdisciplinary field merging psychology and economics, delves into the reasons behind these deviations from rational financial behavior. Our monetary choices, ranging from impulsive purchases to hesitancy in stock market investments, are frequently swayed by cognitive biases, emotions, and societal pressures, which can result in less-than-ideal outcomes. Gaining an understanding of these biases can enhance one's financial decision-making and lead to more effective financial planning. This piece will delve into the core principles of behavioral economics, outline prevalent cognitive biases that impact financial choices, and suggest methods for overcoming these biases to secure superior financial results. 1. Definition of Behavioral Economics Behavioral economics investigates the influence of psychological factors on economic decisions. Contrasting with classical economics, which posits that individuals act rationally to maximize their utility, behavioral economics acknowledges that individuals are often swayed by non-rational elements such as emotions, cognitive biases, and societal influences. For instance, despite recognizing the long-term advantages of saving, investing, or settling debts, individuals may still make poor financial decisions. Behavioral economics seeks to elucidate these peculiarities in human behavior by drawing on insights from psychology, neuroscience, and other fields. By grasping how psychological factors affect financial decisions, individuals can heighten their awareness of their own inclinations and adopt strategies to lessen the adverse impacts of biases. 2. Prevalent Cognitive Biases Affecting Financial Decisions Behavioral economics has pinpointed several cognitive biases that shape individuals' financial behaviors. Here are some of the most prevalent biases: Loss Aversion: Individuals tend to dread losses more intensely than they appreciate gains. This bias can result in overly cautious financial behaviors, such as retaining unprofitable investments or avoiding risks altogether. It can also lead to excessive spending to sidestep the sensation of "loss" when parting with possessions. Status Quo Bias: There is a natural preference for maintaining the status quo, even when change could be advantageous. This can be seen in financial decisions like remaining in high-interest debt or clinging to obsolete investment strategies due to a perceived safety in maintaining the current state. Overconfidence Bias: People often overestimate their financial acumen or capabilities, leading to risky investments or the illusion of market timing abilities. This can result in unsound financial decisions like incurring excessive debt or making speculative investments that do not align with long-term objectives. Present Bias: This bias prompts individuals to favor immediate rewards over future benefits. The instant gratification of spending outshines the future rewards of saving or investing, leading to impulsive purchases and inadequate savings for retirement or other future goals. Anchoring: Decisions are often heavily influenced by the initial information received. For instance, seeing a $500 jacket followed by a $200 one might make the latter seem like a bargain, regardless of its true value. This bias can influence financial decisions regarding loans, salaries, and investment valuations. Herd Mentality: Financial decisions are frequently模仿 based on the actions of peers, especially in the absence of information or when feeling uncertain. This can result in speculative bubbles and affect consumer spending, leading individuals to buy unnecessary items simply because they are popular. 3. Impact of Behavioral Biases on Financial Decisions Cognitive biases can result in various suboptimal financial behaviors with long-term negative repercussions. Here are some examples: Insufficient Retirement Savings: Present bias and procrastination often lead to delayed retirement savings, favoring immediate spending over future needs. Overconfidence can also contribute, with individuals believing they will make up for savings later, which often results in further delays. High-Level Debt: Loss aversion and status quo bias can cause individuals to maintain high-interest debt, such as credit card debt, instead of actively working to eliminate it. The fear

Bang & Olufsen is bringing back a beloved CD player
Business 2026-07-23 18:26

Bang & Olufsen is bringing back a beloved CD player

Built-in obsolescence in technology products is an open secret. As companies include mechanisms designed to feel antiquated just in time for their next release, consumers are left to reckon with the issue – and pick up the tab. In 2023, the UN estimated that individuals produce about 8kg of electronics waste every year, equating to 61.3 million tonnes of discarded computers, phones, cables, batteries and televisions worldwide.“If we continue to operate the industry in the same way, we’ll have a huge problem,” says Mads Kogsgaard Hansen, head of product circularity and portfolio planning at Bang&Olufsen (this portfolio stretches back almost a century to when the company was founded, in 1925). “We use too many materials for too short a lifespan, motivating consumers to replace their devices early without any concrete reasons. The consequence is the waste being generated and [we need to consider] how to handle the substance of the waste.”Tiina Karjalainen Kierysch, head of design at Bang&OlufsenMads Kogsgaard Hansen with a Beosound 9000It’s a windy day in Struer, on the Danish peninsula of Jutland, and Kogsgaard Hansen is walking Monocle through Bang&Olufsen’s Factory 3. Here, technicians are busy sourcing and taking apart Beosound 9000 CD players, originally designed by the late British industrial designer David Lewis in the 1990s. The Bang&Olufsen team have purchased the CD players from their previous owners to refurbish as part of Kogsgaard Hansen’s Recreated Classics Programme, a project that began in 2020 with the revisiting of the 4000c turntable from 1972; this year, it will release 200 refurbished Beosound 9000c CD players.Considering Lewis’s futuristic-looking design, with its sleek aluminium-and-glass surfaces, it seems anachronistic to watch these devices being painstakingly taken apart, cleaned and fixed by hand. Across the factory floor, boxes brimming with metal parts are carefully organised and stacked. “The refurbished products coming out of the workshop are often better than the new ones because they’ve been reassessed with knowledge that we didn’t have when we first launched them,” adds Kogsgaard Hansen, as he explains that, for example, the laser reader is always replaced during the restoration process as it is the mechanism most likely to be faulty. “We need to make sure that we’re future-proofing as well, so we replace the parts that often have a reduced lifespan or might malfunction down the line. There is a long list of proactive fixes that we can make thanks to the experience that lies in the building and in our team.”Components built to lastDetail of a Beolab 28 speakerTechnological quality speaks volumesErik Vennevold, manager of technical assembly, worked on the original Beosound 9000 in 1996 and has nearly 30 years of experience fixing them. “When we started making the Beosound 9000, it was said that the acceleration of the CD-grabbing mechanism was faster than a Ferrari,” he says, demonstrating how the CD player silently whizzes at speed between the six albums encased in glass. When the technology was first introduced, the idea of seamlessly gliding between different albums and genres was unheard of, a kind of prototype for a shuffle playlist before the age of digital streaming. Today, Vennevold is in charge of passing down his accrued technical know-how to a team of Bang&Olufsen engineers tasked with reassembling the CD players using original equipment from the 1990s that was brought up from storage especially for this project.“Bang&Olufsen has always been challenging the status quo – no one thought that a CD player could look like anything but a black box”After the manual disassembly in Factory 3, the aluminium parts are sent to the nearby Factory 5, where they can be milled, polished and painted black to look as good as new. Often the cabinets show scratches and marks on the panes. For aluminium, this is an easily rectifiable problem but the glass lids, in this instance, are being fitted from new materials so as not to compromise the overall quality of the design. Compared to the rather old-fashioned and analogue craft taking place in Factory 3, Factory 5 is where Japanese robotic arms engage in a hypnoticpas-de-deuxto bend, polish, stretch, press, fold and mill aluminium into the recognisable Bang&Olufsen shapes. The sound of machinery whirring and clanging can be heard as metal is crushed and moulded into shapes of sound systems, speakers and TVs, at times with the help of a press that can exert the weight of 117 tonnes (the equivalent of about 30 Asian elephants). On one side of the cavernous space, rows of metal parts are being dipped into vats of bubbling liquid to achieve the all-important anodising step of manufacturing: the electro-chemical process that creates a scratch-resistant surface.Electronic chip with labyrinthine groovesDecades-old equipment still in useTiina Karjalainen Kierysch, Bang&Olufsen’s head of design, joins monocle for this section of the tour. Despite being based in Copenhagen, Karjalainen Kierysch makes the four-hour train journey to Struer to visit the factories frequently. “It’s nice to be more hands-on because many of the prototypes are perfected here, in dialogue with the factory. Sometimes even a small detail, such as a polished edge, can enhance an object’s desirability,” she says, leading us through the labyrinthine layout and greeting technicians. “From a design point of view, Bang&Olufsen has always been designing the future, challenging the status quo. Before the Beosound 9000, no one thought that a CD player could look like anything but a black box.Mounting aluminium parts for anodisationRefurbished Beosound 9000c from the 1990s (on left) with 21st-century Beolab 28 speakerAs we leave the busy factory floor, it’s time to see the refurbished Beosound 9000c in action. The CD player is placed on a matching black aluminium footstand, in tandem with a pair of Beolab 28 speakers from the 2020s that can be wirelessly paired to the CD player. Through refurbishment and the addition of a Beoconnect Encore converter box, 21st-century advances can be introduced to a design from the 1990s, a compelling manipulation of time and the linear progress of technological knowledge. “All of us on the design team were reluctant to change it too much because we liked the brutalism of the simple lines. There’s everything you need and nothing you don’t,” says Karjalainen Kierysch. “So for this recreated version, we kept the integrity of the lines and the materials but we inverted the colours by reanodising the aluminium parts in black.”As the Beosound 9000c stands proud, its Lewis design looks as futuristic and slick as ever, with its six CDs on display to offer a glimpse of its owner’s musical taste, be it 1950s Ethiopian jazz or 1990s grunge. As a design, it’s a sculptural piece capable of commanding attention in any space. As a piece of technology, it provides an opportunity to dig out old CDs and engage in a more ritualistic approach to listening to music once more.Polishing also requires some elbow grease“We’re hoping to show that a second life is not a compromise but actually that it is sometimes a more attractive option,” says Kogsgaard Hansen. “We’re trying to demonstrate a different way of thinking about electronics.” This might be more difficult to argue in favour of when it comes to old, broken wired headphones with dated aesthetics but it is certainly an interesting proposition regarding a well-crafted collector’s item from the 1990s. Perhaps, then, the only cure to obsolescence is simple design that transcends time. Ready for a revival?Here three more Bang&Olufsen designs that we would love to see come out of the archive:1. Hyperbo 5 RG SteelThe Bauhaus-inspired 1934 design is a compelling early example of sound-as-furniture.2. Beovision Capri TVA 1959 television set on teak wood legs, inspired by Danish modernism.3. Beocom 6000Designed in 1998 by Henrik Sørig Thomsen, this telephone makes a stylish case for having a landline.

The Influence of Political Stability on Fiscal Space Amidst Climate Risks
Currency 2026-07-22 11:39

The Influence of Political Stability on Fiscal Space Amidst Climate Risks

Climate risks have a profound impact on fiscal space, with sovereign bond yields and debt ratings serving as indicators of the financial challenges. The role of political stability and financial development in reducing these risks is pivotal, highlighting their significance for fiscal sustainability in the long run. Climate risks, encompassing the potential negative socio-economic consequences of climate change, pose considerable fiscal threats, particularly through their impact on fiscal space. For instance, a major disaster triggered by climate change could require substantial fiscal expenditures for relief and recovery efforts. Similarly, extreme heat due to global warming might lead to significant agricultural damage, prompting governments to offer subsidies to affected farmers. Broadly, public spending on climate change adaptation and mitigation stands as one of the largest fiscal demands globally. Combined with other significant fiscal demands, such as those stemming from an aging population, climate change-related fiscal expenditures pose a substantial threat to fiscal space and sustainability in the future. A recently published ADB Economics Working Paper analyzes the effect of climate risk on fiscal space across 199 countries from 1990 to 2022. We measure fiscal space using sovereign bond yields and ratings on foreign currency long-term sovereign debt. Elevated sovereign bond yields and downgraded sovereign debt ratings signal higher borrowing costs and default risks, indicating a deterioration in fiscal space. We also explore the mitigating role of political stability and financial development in climate-related fiscal risks. Specifically, we assess whether more politically stable and financially developed economies are less susceptible to these risks. Political stability is likely to reduce these risks as it increases the probability of more sustainable fiscal policies, such as a robust medium-term fiscal framework. Consequently, a more stable political environment is likely to lessen the impact of climate shocks and other shocks on fiscal sustainability. Moreover, political stability fosters more cautious, rational, and cost-effective government planning in response to potential climate shocks, helping to preserve fiscal space. Financial development is also anticipated to reduce climate-related fiscal risks. In financially developed economies, businesses and households have access to insurance and other financial instruments that protect them from the adverse effects of climate shocks. This reduces the need for substantial fiscal outlays, thereby mitigating the negative impact on fiscal space. Additionally, financial development increases the credit available to businesses and households to help them absorb the effects of potential climate shocks. Our findings reveal that a one-unit increase in climate vulnerability results in a significant one percentage point increase in bond yields in countries with high political stability risks, peaking at 2 years post the initial impact. Conversely, in countries with lower political stability risks, the response of bond yields is not statistically significant. In the case of financial development, economies with low financial development are more vulnerable to climate-related sovereign risks. Bond yields rise by approximately 0.6 percentage points for these economies, peaking at 2 years post the initial climate shock. Meanwhile, in economies with high financial development, no significant effect is observed. Overall, our empirical analysis indicates that climate vulnerability negatively affects fiscal space, with the most pronounced effects in countries most susceptible to climate change and where fiscal space is most limited. We also find that these effects are reduced in countries with more stable political environments and more developed financial markets. More specifically, our evidence shows that climate risks are associated with lower bond risk premiums and higher sovereign ratings in countries with less exposure to both external and internal conflict. Furthermore, better financial development weakens the link between climate risks and fiscal space. Financially developed countries do not experience a climate-related bond risk premium or a persistent decline in sovereign ratings due to climate vulnerability. While fiscal consolidation is crucial for mitigating the adverse effects of climate risks on fiscal space, our results suggest that political stability and financial development can also contribute. Political stability is valuable in its own right, but our analysis provides evidence of a significant additional benefit in protecting fiscal space from climate risk. Similarly, our findings reinforce the argument for governments to promote financial development further.

Strong Institutions Shield Emerging Markets from US Monetary Shocks
Currency 2026-07-22 18:10

Strong Institutions Shield Emerging Markets from US Monetary Shocks

The global impact of US monetary policy significantly affects capital flows and credit growth in emerging markets, highlighting the importance of macroeconomic fundamentals and institutional quality in determining resilience during different monetary cycles. The United States dollar continues to reign supreme. The dollar dominates international trade and financial transactions, and the foreign exchange reserves of central banks. As such, US monetary policy still drives global financial cycles, impacting global capital flows and credit growth. Dollar dominance ultimately limits the policy choices of financially integrated emerging markets. The global influence of US monetary policy was especially visible during the seven years of easing (2007–2014) induced by the global financial crisis and its aftermath. This was followed by 4.5 years of tightening that was kicked off by the 2013 “taper tantrum.” Subsequently, three years of easing (2019–2022), largely induced by the COVID-19 pandemic, eventually led to a major tightening beginning in February 2022 as a delayed reaction to rapidly rising inflation in the US. As US monetary policy shifts have global repercussions, capital markets in emerging economies are often vulnerable to destabilizing flight-to-quality outflows during periods of heightened uncertainty. They are also vulnerable to volatile search-for-yield inflows during periods of low returns in the US. Large inflows were observed when the Federal Reserve's massive monetary easing pushed the federal funds rate close to zero in the wake of the global financial crisis. At a broader level, these episodes placed increasing pressure on the macroeconomic outlook of emerging markets and raised their risk profile. They also impacted emerging market currencies, debt repayments, and capital flows. For instance,  2023 saw many currencies in developing Asia depreciate substantially versus the US dollar due to aggressive tightening by the Federal Reserve. A natural question that arises is why some emerging markets are more resilient and/or less vulnerable to US monetary policy cycles, an issue examined in the study The Performance of Emerging Markets During the Fed’s Easing and Tightening Cycles: A Cross-Country Resilience Analysis by Joshua Aizenman, Donghyun Park, Irfan A. Qureshi, Gazi Salah Uddin and Jamel Saadaoui. One approach is to empirically assess whether macroeconomic variables such as debt levels and institutional variables such as degree of corruption can explain an emerging market’s resilience during each cycle. The study also takes a holistic approach to measuring emerging market resilience by focusing on the bilateral exchange rate against the US dollar; exchange rate market pressure; and the country-specific Morgan Stanley Capital International Index (MSCI). In addition, the role of policy factors such as exchange rate regime type and inflation targeting were also examined. At the broadest level, the existing research finds that macroeconomic and institutional variables are indeed significantly associated with emerging market performance. Furthermore, the determinants of resilience differ during tightening versus easing cycles, and the quality of institutions matters even more during difficult times.  We found that cross-country differences in ex-ante macroeconomic fundamentals and institutional variables can help explain the differences in performance and resilience of a large cross-section of emerging markets during different US monetary cycles. These determinants differ during tightening versus easing cycles. The significance of ex-ante institutional variables increased during the monetary cycles triggered by the global financial crisis and the taper tantrum. This suggests that strong institutions matter more during difficult times. To address these issues, emerging market policymakers should understand that macroeconomic variables such as the amount of international reserves, the current account balance, and inflation are all important determinants of an emerging market’s resilience to US monetary policy swings. This reinforces the conventional wisdom that  strong fundamentals protect emerging markets in the face of large external shocks. In particular, policymakers should continue to focus on vulnerable sovereigns with large external debt obligations and economies with highly leveraged property markets and weaknesses in capital markets that are typically challenged by the changing interest rate landscape. The borrowing costs of these economies might rise if there is a sudden deterioration in global financial conditions, further worsening their fragile fundamentals. To safeguard their economies against the volatility induced by US monetary policy, emerging market policymakers must prioritize strengthening macroeconomic fundamentals and institutions. This will help ensure long-term financial stability and foster sustained economic growth amidst the challenges posed by global financial fluctuations. 

The Role of Psychological Factors in Personal Finance: How Biases Shape Economic Decisions
Finance 2026-07-21 18:10

The Role of Psychological Factors in Personal Finance: How Biases Shape Economic Decisions

Personal finance, often perceived as a purely quantitative field, is heavily influenced by psychological factors and human behavior. Many economic decisions are not based on rational analysis but are instead driven by emotions, biases, and cognitive tendencies. Understanding the psychological aspects of personal finance can help individuals make more informed and deliberate financial choices, leading to improved financial well-being. This article explores the behavioral biases that affect financial decisions, their manifestations in daily life, and strategies for overcoming them. 1. Emotional Impact on Financial Decisions Emotions such as fear, greed, and overconfidence significantly impact financial decision-making. These emotions often override logical thinking and can lead to suboptimal financial choices. For example, during a market downturn, fear might cause individuals to sell their investments at a loss in a panic, while during a bull market, greed could encourage individuals to take on excessive risk. Fear and Loss Aversion: There is a tendency for individuals to dread losses more than they appreciate gains, known as "loss aversion." This can prevent people from taking necessary financial risks or lead them to hold onto failing investments, hoping for a recovery, which often exacerbates their losses. Greed and Overconfidence: In a rising market, the desire for greater gains can cloud judgment. Individuals might overestimate their ability to predict market trends, leading to speculative investments or the accumulation of unsustainable debt levels. 2. Cognitive Biases in Economic Decision-Making Cognitive biases are mental shortcuts or thought patterns that can result in consistent errors in judgment. In personal finance, these biases often distort our perception of risk, reward, and timing, leading to irrational decisions. Anchoring Bias: This bias occurs when individuals place too much weight on the initial information they receive, such as a stock's initial price or past investment returns. For example, an investor who bought a stock at a high price might irrationally cling to that price, waiting for it to return to that level before selling, even if market conditions have significantly changed. Confirmation Bias: This bias causes individuals to seek information that confirms their pre-existing beliefs while disregarding contradictory evidence. In finance, this could mean only engaging with financial news that aligns with one's market perspective or only following advisors who support their investment strategies. Availability Bias: People are prone to overestimating the likelihood of events based on how readily examples come to mind. For instance, after hearing about a friend's significant profit in the stock market, an individual might be more likely to take on excessive risks, overestimating their likelihood of success. Mental Accounting: This bias occurs when individuals categorize money into different "mental accounts" and treat it differently based on its source or purpose. For example, someone might be more willing to spend a tax refund frivolously but be more conservative with their regular income, even though the money is essentially the same. 3. The Endowment Effect: Overvaluing Our Possessions The endowment effect is the tendency for individuals to place a higher value on items they own simply because they possess them. This bias can lead to poor financial decision-making, especially concerning investments or material possessions. Overvaluing Assets: Investors might retain underperforming assets because they overvalue them, believing they are worth more than the market indicates. This can lead to missed opportunities for reinvestment or diversification. Aversion to Selling: Similarly, homeowners might overvalue their property, refusing to sell at a fair market price due to emotional attachment, even though selling could benefit their financial future. 4. Present Bias: Favoring Immediate Rewards One of the most pervasive biases in personal finance is the present bias, which is the tendency to prioritize immediate rewards over future benefits. This bias leads individuals to make decisions that provide instant gratification at the expense of long-term financial health. Spending vs. Saving: The present bias often results in excessive spending and a disregard for saving.

The best technology for your travels
Business 2026-07-21 11:39

The best technology for your travels

1.Pocket CableNative UnionThe new cable from Native Union is superbly pocketable and designed to avoid tangling. It has USB-C connectors at each end of its 17cm cable, with both able to fold back into the case for tidiness. It’s capable of supporting strong charge levels, so it’s compatible with laptops as well as phones. Get it in one of five colours, including an eye-catching bright orange.nativeunion.com2.Soundlink MaxBoseThe new Bose speaker is small enough to pack in your carry-on but sounds huge. Rugged enough to resist shocks, water and dust, it boasts a rope handle that can be swapped out for a shoulder-length strap for further versatility. The battery lasts for 20 hours and the speaker can even charge your phone while playing audio.bose.com3.Galaxy Fold 6SamsungLeave your tablet at home and take this instead. The new Samsung folds out to a bright and attractive 7.6-inch display with a centre crease that’s now near-invisible in use. An improved camera system, fast processor and larger external display add to the appeal, even if it’s still a little thick when folded.samsung.com4.Tracking CardNomadThe new Nomad tracker will help should you ever lose your wallet or have it stolen. It uses Apple’s Find My system, which means it sends a silent message to any passing Apple device when marked as lost, with its location then securely relayed to your own chosen device. Barely bigger than a bank card, it can be charged via any MagSafe charging pad, making its integration into daily life a breeze.nomadgoods.comIllustrations: Yusuke Saitoh

Plaza Gomila – the colourful construction reviving the former beating heart of Palma de Mallorca
Business 2026-07-20 18:30

Plaza Gomila – the colourful construction reviving the former beating heart of Palma de Mallorca

The neighbourhood of El Terreno, especially its epicentre at Plaza Gomila, was once the beating heart of nightlife in Palma de Mallorca. In the 1960s and 1970s it had a joyful, sunny disposition that pulled in visitors and performers alike: Jimi Hendrix and Tom Jones are both reputed to have strutted their stuff here (not together, mind). But then, as mass tourism boomed, a wall of hotels rose ever higher along the Paseo Maritimo, the boulevard that divides the district from the sea, creating a barrier that denuded the views, killed the vibe and pushed people away from the El Terreno strip. Clubs got tackier, bars closed, drug dealing became commonplace. Today? It’s reclaiming its old spirit, in part thanks to the island’s Fluxà family, the owners of the Camper shoe business.Striking graphicsMiguel Fluxà is a fourth-generation member of the Camper business. Now, along with his wider family and the foundations that they run, he is the developer of a standout project at Plaza Gomila, a point where several roads intersect. Designed by local firm Gras Reynés Arquitectos and MVRDV from the Netherlands (the in-demand Guillermo Reynés once worked for the Dutch studio, hence the connection), it’s a series of seven buildings, all in different hues and materials (from tile façades by Mallorca-brand Huguet to locally made pressed-earth bricks) and with varied roof lines to keep things interesting.Colour-coded streetscapeBrutus restaurantOffice for Gras Reynés ArquitectosThis dazzling intervention of reformed buildings (including one of the island’s first brutalist blocks, now painted dazzling white) and newly built elements is a miniature town in itself, with homes to rent, a supermarket, flower shop, café, restaurant, a just-added bakery and offices for Gras Reynés Arquitectos.Bakery designed by Jasper MorrisonFluxà explains the family’s motivation. “Tourism [on the island] started here; singers and celebrities used to come here,” he says. “It’s part of the history. We thought that it was possible to revive the neighbourhood – to make it more like it was and do something good for the city.” Fluxà says that the project has also demanded flexibility and an acceptance that when you have seven buildings to develop, you have to wait to see where it leads. In terms of motivation, he’s wary of using the “legacy” word. “I don’t care whether people know that we’re involved. We are just giving something back to where we come from.”Guillermo ReynésReformed brutalist buildingMonocle tours the project with Guillermo Reynés, who arrives on his bicycle – a mode of transport that matches the project’s success in being designed to Passive House standards, employing cross winds and external blinds to keep rooms cool and shaded. Reynés explains the colours that punctuate the scheme – a nod, he says, to the Mediterranean location and a neighbourhood that’s equally colourful. He also reveals his deep connection to the area: not only does he have a home nearby; he came here to party as a young man, in the very building that now hosts his offices.Saw-toothed and Huguet tilesThe developer and architects have changed the course of the down-on-its-luck plaza and have created something that serves the people of El Terreno. And while the economics are, of course, a key consideration, it is also clear that all involved want to do something to aid their hometown. To make a difference.Great expectations The project is pulling in many new businesses and now other architects and developers are bringing abandoned buildings back to life. And new nightlife players have arrived, such as an outpost of the upscale Lio cabaret club. But opportunities remain for people wanting to be part of a community making a shift in fortunes for El Terreno.

Harnessing the Power of Emotional Intelligence in Finance: How Our Mindset Dictates Our Economic Choices
Finance 2026-07-20 18:32

Harnessing the Power of Emotional Intelligence in Finance: How Our Mindset Dictates Our Economic Choices

Currency is not solely a medium of exchange—it is inextricably linked to our emotional landscape, values, and mental well-being. Our actions concerning money, whether it be saving, spending, investing, or borrowing, are frequently swayed by unconscious psychological elements. Gaining insight into these factors is essential for enhancing financial decision-making and securing enduring financial health. The discipline of behavioral finance, an intersection of psychology and economics, delves into how human emotions and actions can result in less-than-ideal financial choices. Ranging from fear and avarice to overconfidence and indecision, the mental dynamics of money guide our financial management and our reactions to immediate and future economic challenges. This piece will dissect the mental aspects of money, expose prevalent cognitive distortions and emotional impacts, and offer tactics to surmount these mental obstacles to execute more logical, deliberate fiscal decisions. 1. The Emotional Tie to Finances Finances often evoke profound emotions such as anxiety, embarrassment, remorse, and a sense of security. These feelings can propel us toward fiscal prosperity or steer us toward self-destructive patterns. Here's how our emotional link to money can manifest: Trepidation Over Financial Loss: Numerous individuals harbor a fear of financial loss, prompting overly cautious or conservative fiscal actions. This apprehension might lead to abstaining from investments, accumulating cash reserves, or deferring crucial financial choices like purchasing property or planning for retirement. While risk management is wise, excessive anxiety can impede individuals from undertaking actions that could accumulate wealth over time. Yearning for Financial Safety: For some, money epitomizes safety—assuring sufficient funds for emergencies, a comfortable lifestyle, and providing for loved ones. This quest for financial security can result in behaviors like excessive saving, minimal spending, or a complete avoidance of debt. While financial security is vital, an overemphasis on future savings can sometimes hinder enjoyment of life in the present. Financial Guilt and Shame: Shame related to finances is a prevalent emotional barrier. Those who believe they've made poor fiscal decisions may experience guilt or shame about their current financial standing. This can lead to avoidance behaviors, such as disregarding bills or sidestepping financial planning altogether. Overcoming this guilt is essential for progressing and establishing a robust financial future. Envy and Social Comparison: In a society driven by consumption, it's easy to fall into the trap of measuring our financial achievements against others. This can result in excessive spending or making fiscal decisions based on the desire to match peers, even if it conflicts with our actual requirements or objectives. 2. Prevalent Cognitive Biases and Their Influence on Fiscal Decisions Behavioral finance identifies several cognitive biases—mental shortcuts or thinking patterns—that can result in irrational financial decisions. Recognizing these biases can assist individuals in avoiding costly errors. Anchoring Bias: This bias emerges when individuals rely too heavily on an initial piece of information (the "anchor") when making decisions. For instance, when car shopping, a person might base their expectations on the first price they encounter, even if it doesn't reflect market value. This bias can lead to overpayment or undervaluation of financial decisions. Loss Aversion: Behavioral economics suggests that individuals tend to dread losses more than they appreciate equivalent gains. The emotional distress of losing $100, for example, is significantly greater than the joy of gaining $100. This bias can deter people from taking necessary risks, such as investing in stocks, even when potential long-term benefits outweigh the risks. Confirmation Bias: Individuals often seek information that confirms their preconceived beliefs or decisions, rather than considering alternative perspectives. For example, someone convinced of an investment's superiority might overlook warnings or red flags. This can result in poor investment choices or a failure to diversify. Overconfidence Bias: Many people believe they possess superior knowledge or skills, especially in investing. This overconfidence can lead to risky financial decisions, such as making speculative investments or underestimating the risks associated with certain financial choices. Overconfident investors may also disregard expert advice or minimize the importance of diversification. Recency Bias: This bias occurs when individuals place more importance on recent events than on

ASEAN Nations Must Capitalize on Trade, Digital Advancements, and Connectivity
Currency 2026-07-19 18:08

ASEAN Nations Must Capitalize on Trade, Digital Advancements, and Connectivity

Faced with a shifting global economic landscape, the Association of Southeast Asian Nations (ASEAN) can enhance economic stability and sustainable development by focusing on trade, tourism, and digital transformation. In an increasingly competitive global economy, nations are reevaluating their supply chains to mitigate risks and implementing protectionist measures to bolster domestic industries. Additionally, climate change and the contest for cutting-edge technologies, such as AI and big data, are now viewed through the lens of national security. Against this backdrop, the ASEAN bloc, comprising 10 nations, must collaborate to secure a prosperous economic future for their citizens and safeguard their national interests, with a particular emphasis on trade, digitalization, and connectivity. Trade, especially in services, is poised to play a pivotal role in ASEAN economies, encompassing finance, telecommunications, tourism, transportation, and professional services. These sectors are crucial for job creation and economic expansion. Post-pandemic, while goods trade has slowed, service trade has shown a positive trend, positioning ASEAN as a net service exporter. Tourism is a promising avenue for ASEAN, highlighting the region's appeal as a travel destination. To bolster competitiveness in tourism, ASEAN nations are expected to collaborate on infrastructure, skill development, marketing, and product innovation to boost intra-regional travel, which currently accounts for over 40% of ASEAN's international tourism, thereby enhancing regional economic resilience. The regional digital economy, including e-commerce and digital health, is projected to expand from $300 billion to nearly $1 trillion by 2030. With effective digital connectivity policies through regional cooperation, this figure could double. The Digital Economy Framework Agreement is central to this collaboration, addressing digital standards, data flows, cybersecurity, digital trade, and digital talent mobility, among other aspects of digital public infrastructure. Digital cooperation is also anticipated to yield additional benefits, such as positive environmental impacts, social cost savings of $12-30 billion, increased resilience, job creation, and improved access to education and healthcare. Lastly, both physical and institutional connectivity are essential for ASEAN's economic competitiveness, enhancing their engagement with larger Asian and global economies. Sustainable infrastructure, including renewable energy, low-carbon transport, and urban energy efficiency, is gaining momentum. By integrating this with enhanced digital cooperation and streamlined cross-border logistics and supply chains, facilitating the movement of goods, services, and people across borders will protect the environment and strengthen regional resilience. The collective approach to sustainable infrastructure is beneficial for ASEAN members committed to the Paris Agreement, with Nationally Determined Contributions aiming for net-zero CO2 emissions by 2050 and net-zero greenhouse gas emissions by 2065, to cap global temperature increases at 1.5°C. It is a strategic time for ASEAN policymakers to rethink collaboration. While economic fragmentation is evident globally, there are areas that necessitate cross-border cooperation. Economic self-reliance has grown in the region, and with pressing issues like digitalization and climate change, mismanaged interdependence could lead to costs and economic challenges. Hence, for the upcoming term of ASEAN regional cooperation until 2045, member countries should view their collective actions as a regional public good, where the benefits of enhanced trade, tourism, digitalization, and connectivity will lead to sustainable and resilient outcomes for the region's populace.

Embarking on a Path to Financial Independence and Early Retirement (FIRE): The Key to Freedom and Flexibility
Finance 2026-07-19 11:39

Embarking on a Path to Financial Independence and Early Retirement (FIRE): The Key to Freedom and Flexibility

The quest for Financial Independence and Early Retirement (FIRE) is an increasingly popular financial strategy, especially among younger demographics such as millennials and Generation Z. This movement promotes aggressive saving and investing to achieve financial self-sufficiency and retire well before the traditional retirement age of 65. The goal is to accumulate enough wealth to maintain a comfortable lifestyle without relying on a regular salary. While the idea of retiring early is appealing, adopting the FIRE philosophy requires strict financial discipline, a deep understanding of personal finance, and a commitment to long-term financial goals. This article explores the core principles of FIRE, its benefits and challenges, various FIRE strategies, and the steps you can take to incorporate these principles into your financial journey. 1. Grasping the Concept of FIRE and Its Mechanics The core of FIRE is based on the idea that by saving and investing a significant portion of one's income early on, it is possible to accumulate sufficient wealth to cover ongoing living expenses without the need for conventional employment. The basic idea is simple: Financial Independence (FI): This is achieved when your investments, savings, and passive income can cover all your living expenses, allowing you to rely on your assets rather than a job for income. Early Retirement (RE): After reaching financial independence, the aim is to retire early, which means leaving traditional employment. However, in the context of FIRE, retirement does not necessarily mean stopping work altogether; for many, it means moving to more fulfilling work or pursuing hobbies and passions without financial worries. To adopt FIRE, it is crucial to save a substantial part of your income and invest it wisely. Over time, the combination of consistent saving and the power of compound interest will significantly grow your wealth, eventually allowing you to live comfortably off your savings and investments. 2. The FIRE Equation: Calculating Your Retirement Savings A key component of the FIRE movement is the 4% rule—a guideline for determining the amount needed to save for early retirement. This rule is based on the assumption that you can withdraw 4% of your investment portfolio annually without depleting your savings over the long term. For example, if you want to live on $40,000 per year, you would need a portfolio worth $1 million ($40,000 ÷ 4%). Using the 4% rule, you can estimate the amount of money required to save for financial independence. This rule is based on historical market data, assuming an average annual return of 7% from a well-diversified portfolio of stocks and bonds. While the 4% rule is a useful starting point, it is important to consider factors such as inflation, market volatility, and lifestyle changes when planning your FIRE strategy. Here is a simple formula to help you calculate your FIRE target: FIRE Target = Annual Expenses × 25 For instance, if you plan to live on $50,000 per year, your FIRE target would be: 50,000 × 25 = 1,250,000 This means that you would need $1.25 million in investments to retire comfortably and sustainably on $50,000 per year. 3. Fundamental Principles of the FIRE Movement Achieving FIRE requires adherence to several key principles that guide financial decision-making. These principles include intentional saving, reducing expenses, and accumulating wealth through investments. Aggressive Saving: To achieve FIRE, you must allocate a significant percentage of your income to savings. Many FIRE advocates aim to save between 50% to 75% of their income. This involves living within your means, cutting non-essential expenses, and directing as much money as possible into savings and investments. The higher your savings rate, the faster you can achieve financial independence. Frugality and Lifestyle Adjustment: FIRE is not just about financial savings; it also involves adjusting your lifestyle to prioritize what truly matters. Many FIRE proponents embrace minimalism, reducing unnecessary spending and focusing on experiences over material possessions. Adopting this mindset can significantly reduce your expenses and accelerate your journey to financial independence.

From car to chopper
Business 2026-07-18 18:46

From car to chopper

It’s a warm July afternoon and the rotor blades of a canary-yellow Airbus H135 helicopter are turning lazily on the roof of the ÖAMTC headquarters in eastern Vienna. In the near distance, the radar atop the city’s international airport’s air-traffic-control tower seems to mirror their movement. Then, suddenly, as if the wind has just picked up with furious haste, the blades whizz into action, propelling the helicopter up into the clear blue sky, leaving a burst of downwash in its wake.The ÖAMTC (Der Österreichische Automobil, Motorrad und Touringclub) was founded in 1946 as an automobile and motorcycle club serving the burgeoning numbers of Austrian car owners. For decades it mostly provided breakdown cover but, in recent years, as a future without internal combustion engine (ICE) vehicles has become ever more likely, the ÖAMTC has undergone a reinvention. Today it is a one-stop shop for all things mobility. It still provides its members with roadside assistance but is also branching out into, among other things, travel and tourism. Its glassy, ufo-like headquarters in the Austrian capital, which opened in 2017, is meant to symbolise this transition. Perhaps most radically for a motorists’ association, today there are many cyclists among the ÖAMTC’s 2.5 million members who can take advantage of roadside bicycle assistance delivered by mechanics who ride around on electric bikes. On the car side of things, meanwhile, increasing numbers of electric vehicles (EVs) are being serviced, meaning that technicians must be as well versed in the battery-powered as in the ICE.Rescuer Ebner ready for takeoffEbner (on left) and Captain Robert GallmayerCommand room shelf, with a statuette of St Christopher, the patron saint of travellersRear doors of an ÖAMTC Airbus H135Launched in 1983, the association’s air rescue service, which provides medevac assistance across Austria, was the precursor to this diversification. The ÖAMTC has 21 air bases across the country, with a 31-strong fleet of Airbus H135s. The upkeep of these €7m aircraft is financed partly through ÖAMTC membership fees and partly through government funding and insurance contributions. Though the ÖAMTC is an NGO, it works closely with state and regional authorities, a common practice in Austria and Germany, where clubs and associations (known asVereine) frequently perform critical state-adjacent duties.Co-ordinating the ÖAMTC’s air-rescue operations is CEO Marco Trefanitz, a cool-as-a-cucumber former telecommunications executive, who doesn’t bat an eyelid or raise his voice when the helicopter whisks into action. “The whole system is organised by the state, which runs the dispatch centres in the nine provinces of Austria and sends calls through to us,” says Trefanitz as he invites Monocle to sit down in the rescue team’s helipad-side rest area, which features an array of dumbbells and exercise machines. There is an adjacent kitchen and storage room, as well as a command centre dominated by a large monitor streaming live footage from around the country, alongside real-time weather maps. Long-haired and open-shirted, Trefanitz, who assumed his position in 2012, doesn’t look like the typical Austrian CEO. There’s a bit more pressure in his new job than in his previous one but he insists that it is far more rewarding. “The work here is not about me or shareholder value. Everything we do at the ÖAMTC is about how we can improve to better help our members and our patients.”Tools of the tradeControl panel inside the helicopter cockpitMarco Trefanitz, CEO of ÖAMTC Air RescueAbout five minutes after rushing off, the H135 returns. “Storno,” mouths Captain Robert Gallmayer as he climbs out of the cockpit: “cancelled”. False alarms are routine. About 10 per cent of calls are made as a precaution rather than a necessity, says Gallmayer after the rotors have died down and it’s possible to talk normally again. Often, he is already airborne while the call is still in progress; sometimes, the operator might conclude that ground vehicles are sufficient for the job, which means flying back to base to refuel and await another call. Gallmayer, lead pilot among 13 at the Vienna base (there are 71 across the entire ÖAMTC), has already flown two missions today, a normal number for this time of year as hundreds of thousands of Austrians begin their summer holidays. Both Gallmayer’s earlier missions involved dropping divers into the Danube in search of missing swimmers; one was pulled out alive, while the other sadly could not be found. Another common call requires retrieving someone who has had a stroke or heart attack from a mountainside or forest track. Indeed, car accidents or breakdowns are in the minority, with helicopters only called to the scene when the injured need to be rushed to hospital. During the summer, there are usually about five or six missions a day, and the feedback section of the ÖAMTC air rescue’s website gives heartening indication of how successful these predominately are. Pride of place among the comments and photos is given to a child’s drawing of those famous yellow helicopters. Below it reads, simply, “Thank you for saving us.”Steering committeesAs people diversify the way they travel, car-focused organisations would do well to follow their lead. For the ÖAMTC, what began as a way of helping members has morphed into a vital service.

Ten principles for designing vibrant and liveable mixed-use spaces
Business 2026-07-18 18:54

Ten principles for designing vibrant and liveable mixed-use spaces

Creating a lively mixed-use development isn’t just about throwing up some buildings and calling it a day. Developers need to make considered decisions to deliver a successful place that matches the ambition of their original architectural renderings. It’s about clever details, an understanding of how people actually use space and meticulous design from choosing the right materials to community-building.This is the art of crafting spaces that not only house but also connect, where tenants – whether residential or commercial – feel a sense of belonging that goes beyond their address. Here, we get into the nitty-gritty of what makes a mixed-use project truly thrive, proving that vibrant developments are built one thoughtful detail at a time.1.Sensory symphonyBuilding with materials that are interesting to look at will lend character to any development. A case in point is the rippled concrete on the façade of architect Lina Ghotmeh’s Stone Garden Housing project in Beirut. Natural, locally sourced options like stone, timber and clay bricks can help imbue a project with a sense of place.2.No blockingAvoid taking up an entire block with a single, impenetrable structure. Instead, invite public life into the development by shrinking building footprints. Create public spaces and thoroughfares for people to cut through the site, improving pedestrian connections. This will prevent a project becoming a dead zone and better embed it in the city.3.Tall orderCap buildings at five storeys. Why? Well, beyond that, according to Danish urbanist Jan Gehl, residents lose their connection to the street. A good rule of thumb is to ensure that people can comfortably call down from a balcony to the footpath. By capping the height, we ensure that the building’s presence doesn’t overwhelm the street or skyline.But this doesn’t mean ignoring the needs of street level. Avoid brash glassy frontages and opt for a façade that has clear windows for passive surveillance. The doorway should be flush with the footpath (stepping up or down creates a physical barrier to entry) with awnings set only a few metres above the ground to offer a sense of cosy enclosure.4.Human scaleUse visually rich details on the lower levels of a building – think tiled façades, intricate masonry and faceted window frames. Different uses, such as public or private entrances, should be defined by these ideas and expanses of monotonous material avoided. Invite rhythm to keep passersby, or those staying longer, engaged and inspired.5.Mix and matchCreate a complex whose patronage is, well, complex. Mix commercial, cultural, residential and hospitality offerings for a perpetual hum of activity and spontaneous encounters. Meet the essential needs of the community too: a butcher, baker, dry cleaner and key-cutting shoe-repair shop within walking distance is a boon for any tenant.6.Lush lifestyleStudies have repeatedly shown that greenery can lower stress levels and improve general wellbeing; planting can also filter air and regulate building temperatures. Street-level trees and vertical gardens bring life to the façade (Singapore-based WOHA architects is an expert in this field), providing a cleaner microclimate for tenants.7.Civic serviceThe services on offer should be enhanced by the surrounding public space. In a mixed-use development, make sure restaurants front onto plazas that diners can spill onto when the weather is fine and that there are benches for workers to stop for coffee. MVRDV’s Atelier Gardens in Berlin blends office space with hospitality offerings in a prime parkland setting.If a development is more residential, make sure there are spaces for visitors to lock their bikes and communal courtyards where neighbours can stop to chat. Danish design studio SLA’s work on the South Harbor of Køge is a benchmark in this, with the residential buildings divided with linear parks.8.People firstPrioritise the pedestrian experience, so whether tenants are walking to their cars or between home and café, their time outdoors will be uplifting. Provide generous footpaths, an abundance of crossings and traffic-calming measures such as kerb extensions. Where you have to include parking, do so in a discreet underground location.9.Go greenThis is about more than using environmentally friendly materials and adding foliage. Architects should embrace the site’s microclimate and use it to enhance their design. Consider annual sun, wind and shade patterns, and position the building so that natural light and ventilation can be put to use in heating and cooling it.10.Participation awardsFinally, it’s all well and good to have a beautiful building but without buy-in from the people using it, it won’t be a success. Build a community by inviting continued resident participation: ask for ideas, host town hall meetings and encourage community gardens and public art. All of this will create a sense of ownership and belonging.

Responsible Investing: Embracing ESG for a Sustainable Future
Finance 2026-07-17 11:37

Responsible Investing: Embracing ESG for a Sustainable Future

During the last ten years, there has been a remarkable surge in responsible investing, as investors increasingly aim to harmonize their financial aspirations with their ethical beliefs. Responsible investing, also recognized as sustainable investing or ESG (Environmental, Social, and Governance) investing, is the practice of considering not just the financial performance but also the societal and ecological consequences of corporate actions when making investment decisions. This paradigm shift is transforming the financial sector, with both individuals and organizations seeking enhanced corporate responsibility and sustainability. In this guide, we delve into the essence of responsible investing, its significance, and the integration of ESG considerations into investment strategies. 1. Understanding Responsible Investing Responsible investing encompasses investment strategies that weigh both financial profitability and the enduring effects on the environment, society, and corporate governance. Unlike conventional investing, which is solely profit-driven, responsible investing aims to achieve positive societal and environmental outcomes in tandem with financial success. ESG is a prominent framework within responsible investing, assessing companies across three critical dimensions: Environmental: This pertains to a company's ecological impact, including carbon emissions, waste management, resource conservation, and overall environmental stewardship. Social: This aspect examines a company's interactions with employees, suppliers, customers, and communities, encompassing labor practices, human rights, diversity, and community engagement. Governance: Governance criteria evaluate a company's leadership, transparency, board diversity, executive compensation, and shareholder rights. Responsible investing is not limited to excluding companies with poor ESG records; it also proactively invests in entities and funds that make constructive contributions to these areas. 2. The Imperative of Responsible Investing Responsible investing is about more than just altruism; it's also about achieving financial prosperity. Here are some reasons why investors are gravitating towards ESG integration: Risk Reduction: Companies that neglect ESG considerations may incur legal, regulatory, and reputational risks. Conversely, companies with robust ESG practices are often better equipped to handle long-term challenges. Ethical Demands: As global consciousness of environmental and social concerns expands, both consumers and investors are expecting more from businesses. A commitment to sustainability can offer a competitive edge to companies perceived as responsible and innovative. Enhanced Financial Performance: Studies indicate that companies with robust ESG practices often excel financially compared to their peers. By prioritizing long-term sustainability, these companies are typically more resilient, with better growth prospects and reduced vulnerability to environmental and social risks. Constructive Impact: For investors seeking to create a difference, responsible investing offers the chance to back companies and sectors that resonate with their values, such as renewable energy, healthcare, and businesses with equitable labor practices. 3. Embarking on Responsible Investing If you're keen on integrating ESG considerations into your investment strategy, consider these steps: Clarify Your Values and Objectives: The initial phase of responsible investing is to identify which ESG issues resonate most with you. Is environmental sustainability, such as climate change mitigation, a priority? Or are social concerns like diversity, equity, and labor practices more pressing? By pinpointing your core values, you can align your investments with your personal convictions. Investigate ESG Funds and Investment Vehicles: ESG funds, which pool capital and invest in companies meeting specific ESG standards, are one way to begin responsible investing. These funds may be actively or passively managed through ESG indices or exchange-traded funds (ETFs). Seek out funds that offer clarity on their company selection process and ESG performance metrics. Conduct Screening and Selection: For those who prefer direct investment management, ESG screening can be applied when picking individual stocks or bonds. Screening identifies companies that fulfill certain ESG criteria while sidestepping those that do not meet these benchmarks. For instance, you might opt to exclude companies in the fossil fuel or tobacco industries in favor of those in renewable energy or healthcare. Active Engagement: Some responsible investors choose to engage actively with the companies they

Inside Mioveni: How Dacia transformed a village into a global auto hub
Business 2026-07-17 11:47

Inside Mioveni: How Dacia transformed a village into a global auto hub

The rumble and thud of heavy industry is overwhelming. Inside the stamping department at Dacia’s production plant in Mioveni, Romania, sheet metal is being sandwiched under pressure to create doors for the car brand’s new Duster model. For the robotic machinery to do its thing, huge, heavy moulds are being manoeuvred across the hangar by a yellow crane arm that spans the entire 15-metre length of the roof. “This is the high speed line,” shouts Alina Predescu, the department’s senior manager and a Dacia employee for the past 15 years, referencing the equipment on display. The combined 12 lines that operate here produce 4.5 million pieces a month. Next, they’re passed to the body shop where the cars start to take form.To call Mioveni a production hub would be an understatement. Opened in 1968 during the early years of Nicolae Ceausescu’s Socialist Republic of Romania, the Dacia factory is a beast that almost never sleeps. Operating 24 hours a day over three shifts, it rests only on Sundays. A car is produced here every 55 seconds, while 350,000 cars roll off its production line each year. The figures are a testament to the phenomenal success of Dacia in recent years. The brand was long seen as a budget, no-frills player but has morphed into much more. Dacia now sells more than 650,000 cars a year and its Sandero recently became the best-selling car in Europe. The relationship, though, is reciprocal; Dacia wouldn’t be where it is today without its historic mothership plant, located about a 90-minute drive northwest of the capital, Bucharest.Cars in progressGetting hands-onWhen Monocle visits the plant – a series of grey, flat-roofed buildings surrounded by large car parks – we’re told to imagine it more as a town than a factory. On a map, its 288 hectares look almost as big as Mioveni itself, which sits below the plant’s slightly raised vantage point next to woodland. Before Dacia arrived, Mioveni (pronounced with a short “I” at the end) was a sleepy village of about 6,000 inhabitants. Today the automotive town is home to 30,000 people. Many Mioveni residents have either worked here or know someone who has – attracted by what one employee calls a job opportunity “gold mine”. With revenue of €5bn a year, the plant represents some 2 per cent of Romania’s GDP and about 2 per cent of its exports. Dacia began by mass-producing cars for the local market through a licensing agreement with Renault. Car kits were dispatched from France and assembled in Romania under a local brand name, though the plant shifted to making its own parts not long after. Dacia’s debut model, the 1100, was based on the Renault 8 and its second car on the Renault 12. That relationship came full circle in 1999, when the Paris-based multinational bought the brand. Renault’s CEO at time, Louis Schweitzer, had been to Russia and seen the success of Lada. He was convinced that there was a worldwide gap in the market for Dacia, especially in post-Iron Curtain Eastern Europe. With Renault’s arrival, efficiencies were greatly increased. Monocle is anecdotally told that before that, in the 1970s and 1980s, 30,000 employees were producing 100,000 cars a year, with capacity tripling at the plant between 2004 and 2010. “The factory has changed each year,” says the plant’s general manager, Sile Fulga, who has been here since 1987, wearing a Dacia logo wristband to protect his watch. “In 2000, we didn’t have any robots.” Underlying Dacia’s expansion has been an idea that counters the trends of the automobile industry. There has been a push back against the expensive bells-and-whistles cars that had already started to come onto the market at the end of the 1990s. “The idea was to say, what if we have a piece of the group that would not play the game of always more,” Dacia’s CEO Denis le Vot, also group chief supply chain officer, tells Monocle. Under Renault’s stewardship, Dacia launched the no-nonsense Logan model in saloon and estate versions, which came with wind-down windows and no air conditioning.Mioveni workers with their 2008 Dacia Logan pick-upCatalin Filip with his Dacia 1100 from 1969A 1974 Dacia 1300 parked in central MioveniMioveni policeman with his Dacia Logan patrol carThe car bodies being welded together by automated arms when Monocle visits are very different from those of the original Logan. Given how popular SUVs are worldwide – representing more than half of all sales in Europe – Dacia’s decision to pivot to an SUV look for most of its cars has proved prescient, even if many of them are smaller superminis, compact SUVs and crossovers. But Le Vot says that, though some aspects have changed, “the spirit is the same”. The less-is-more concept, for example, still prevails. Some might call them under-equipped but Le Vot prefers to say that Dacia produces cars with only the essential features. “We like to quit anything that is not strictly necessary,” he says, adding that the idea of “essentiality” is nonetheless shifting all the time given the types of vehicles coming onto the secondhand market, often a direct competitor of Dacia. Its cars feature manually adjusted seating, plastic over leather upholstery and understated screens; air conditioning, once deemed a luxury, is now part of the package. For a long time, Dacia also shunned lane-keep assist – the sometimes tedious feature that steers you back onto the road should you drift outside the lines – as too much technology, but new EU safety regulations mean that this is now part of the brand’s essentiality too. One of the less visible reasons why Dacia has become a superstar of the region – and beyond – is the way it has been run by Renault. Though brand studios in France might get design input, Dacia has been allowed to keep plenty of devolved powers, maintaining a 3,000-strong engineering corps in Bucharest, as well as a Romanian design team. There is a strong focus on what the Dacia CEO calls “design to cost”. Dacia cars are created with a sharp focus on the core things that matter to consumers in a process meant to separate real value from unnecessary technical glitz. Despite its range of cars, with the exception of its single electric model, Dacia also keeps the same platform across its catalogue – all the bits out of the consumer’s view, including the bulk of the body structure, axles and even a lot of the powertrains – which lowers costs. Lastly, Dacia taps Renault Group HQ and its R&D, which Le Vot refers to as “big brother”, to borrow technology developed years earlier.The city of Mioveni is dominated by the St Peter and Paul Cathedral, with its distinct orthodox spires, which sits just off a main thoroughfare. Inaugurated little more than a decade ago, it’s one of the many buildings constructed here since the 1970s – many of them nondescript communist-era blocks – as the population started to grow. Walking around town, the influence of Dacia is difficult to miss. The yellow taxis driving around the streets are Dacias, as are the police cars, both Logan models. The workers in blue overalls fixing up the square arrive in a Dacia pick-up, while a family of three we talk to is driving a workhorse Dacia Solenza from 2003 that needs pushing to get its engine going. Later, we meet members of a local Dacia classic car club, all eager to show off their vintage models. Catalin Francu was a driver for Dacia in the 1980s and 1990s during the company’s original foray into rally car racing (Dacia recently announced that it would be joining Dakar Rally from 2025). Like many people, for Francu there’s a pride and perhaps even sentimentality attached to a brand that is still seen as indivisible from Romania itself. “I was born with Dacia,” he says. “And for many Romanians, it’s the same thing.” Both Alin Stanciu, owner of a 2003 Dacia 1310 estate, and Catalin Filip, whose 1969 1100 turns plenty of heads as people walk past, agree. Stanciu talks about a “nostalgia” for Dacia that clearly comes from where he has grown up. “It’s normal because everyone has a connection to the plant,” he says. “Four members of my family worked there.”Still, present-day Dacia wants to be seen as much more than Romanian, even if CEO Le Vot calls it the heart of the brand. “Dacia is Romanian but Dacia goes way beyond Romania,” he says. “The uniqueness of the brand is not specifically the geography, though the history is linked to the geography.” For one, Romania is no longer the top sales market, with top spot going to France followed by Italy. The Mioveni plant also isn’t the only factory producing cars. Le Vot is quick to add that Mioveni has a “bright future” but there are two plants in Morocco that make what the CEO calls the “low drive”, more budget cars such as the Sandero and Logan, as well as the seven-seater Jogster. The Mioveni plant focuses on higher-end cars, including the Duster. Part of that gradual shift in brand orientation involved a redesign of the Dacia logo in 2021, which started to feature on new cars from the following year. It’s one of the many logo iterations we see on Dacias during our time in Romania. The kissing “D” and “C” feels modern and has been coupled with Dacia moving away from its traditional blue to an olive green. This has been complemented by lifestyle advertising that makes Dacia feel outdoorsy. Le Vot, quoting the brand markers, says that it’s all part of being “robust and outdoors, eco smart and essential but cool”.Alongside the brand’s first electric car, the China-made Spring, which hit the UK in October (a first-generation model has been available in other markets for longer), 2025 will see the release of a large suv, the Bigster – a bid to cash in on that lucrative segment of the market. It will be made right here in Mioveni, from the metal stamping to the final conveyor-belt quality control.Alongside the evolving look and feel, Le Vot argues that the way Dacia is perceived continues to shift. While he says that Dacia is “still the cheapest on the block” for those who want it, buyers aren’t just secondhand car owners looking for the only new car they can afford. Premium brands have become so expensive, he says, that plenty of new Dacia owners have gravitated from higher-end players. It means that 70 per cent of Dacia’s sales are now made up of its most expensive models. “The market is coming to us,” he says. And with it, Dacia’s evolution continues apace.Sizing upRenault has seen growth in medium and large-sized cars, and Dacia wants a piece of the action. Its Bigster is out next year and two more similar-sized bodies are planned for the near future.

Why Enhancing Natural Capital is Key for Green Growth
Currency 2026-07-16 18:36

Why Enhancing Natural Capital is Key for Green Growth

The role of nature in green growth cannot be ignored. Incorporating natural capital considerations into the economic growth strategies of developing countries is essential for protecting the environment. As economies grow their capital stock also grows. Capital stock is made up of physical, human, natural and social capital. Natural capital in turn is composed of renewable and non-renewable forms. The former includes the present value of services provided by forests, land, water, and air, while the latter comprises sub-soil assets such as minerals, oil, and gas. For growth to be green, the value of the environment should not decline and one measure of that is for renewable natural capital not to fall over time. A recent study conducted to compare the GDP growth of 34 countries in Asia and the Pacific from 1995 to 2018 with the change in their renewable natural capital as measured by the World Bank in its Comprehensive Wealth Approach found that 24 of the countries had experienced green growth. The 10 countries that displayed a decline were Marshall Islands, Tonga, Maldives, Fiji, Vanuatu, Kazakhstan, Malaysia, Thailand, Georgia, and Samoa. The countries with the greatest percent growth in natural capital were Uzbekistan, Cambodia, Solomon Islands, Myanmar, Viet Nam, and India. The measure of natural capital, however, does not include services provided by the atmosphere against global warming. To account for that, the value of greenhouse gas emissions (GHGs) must be debited to the change in the natural capital stock. This value is uncertain, and estimates depend on many factors including the discount rate. When an adjustment was made to the natural capital for the GHGs, fewer countries had experienced green growth. With the value of GHGs calculated using a 5% discount rate, 11 of the 34 experienced green growth. With a 2.5% discount rate, which gives a higher value to GHGs, only 3 of the 34 countries had experienced green growth. By this indicator, and account for GHGs, the best-performing countries in the region were Solomon Islands, Bhutan, Lao People’s Democratic Republic, Cambodia, Papua New Guinea, and Viet Nam. The worst performing were Marshall Islands, Turkmenistan, Tuvalu, Uzbekistan, Tonga, and Thailand. This indicator of green growth complements others, such as the GGGI Index from the Global Green Growth Institute and the Global Sustainable Competitiveness Index.  These indices are a composite of many sub-indicators at a point in time. However, they do not track growth in the way this current study does. Comparing their values with the greenness measure, a positive but weak correlation was found. The three can be considered to provide complementary information on green growth. To explain the variation in greenness across the countries analysed, an econometric analysis was carried out. Significant factors were the initial value of natural capital relative to GDP (which indicates a convergence in greenness over time); a qualitative indicator of voice and accountability of civil society, which has a negative effect on greenness of growth; and a qualitative indicator of rule of law, which has a positive effect on greenness of growth. One message that emerges from the study is that greenness needs efficient growth relative to GHG emissions as well as increasing the value of other forms of natural capital.  Phasing out of high emissions sources such as coal and replacing them with renewable energy will help reduce emissions per unit GDP, but the switch should be cost-effective to also raise aggregate output. Increasing efficiency in the use of fossil energy will also raise the greenness of growth. Other policies that promote green growth include reducing pressure on natural capital exploitation by raising agricultural productivity, and raising the returns on forest conservation through carbon and biodiversity credits.  There is also a role for the private sector to promote greenness of growth. Its role will be critical in the transition to a low-carbon future. But this will need the right incentives such as subsidies for clean energy with a potential low cost, as well as disincentives in the form of a carbon tax or similar instrument to discourage the use of fossil fuels.  There is a growing but still relatively limited role for the private sector in carbon sequestration and biodiversity conservation through markets for carbon and biodiversity credits. The role of the private sector can be further enhanced by de-risking investments in climate mitigation and adaptation. While many countries have made strides in increasing their renewable natural capital, the inclusion of greenhouse gas emissions significantly alters the landscape. Effective green growth hinges not only on enhancing natural capital but also on reducing emissions through efficient, cost-effective strategies. This blog post is based on research conducted for the June 2024 ERDI-CCSD Climate Change Seminar, where Professor Anil Markandya presented "Natural Capital & Green Growth in Asia & the Pacific." The presentation discussed how protecting natural capital as key aspect of green growth is essential through various ADB strategies, including disaster resilience, climate-smart infrastructure, and private sector development.

Harnessing Innovation in Peer-to-Peer Lending: A Strategic Approach for Asia's Central Banks
Currency 2026-07-16 18:26

Harnessing Innovation in Peer-to-Peer Lending: A Strategic Approach for Asia's Central Banks

The exponential growth and subsequent regulation of peer-to-peer (P2P) lending in China have significant implications for financial stability and the efficacy of monetary policy. This serves as a crucial case study for economies with burgeoning fintech sectors, underscoring the necessity for a judicious balance between fostering innovation and ensuring regulatory oversight. The financial landscape is pivotal in the dissemination of monetary policy to the broader economy. The advent of financial technology (fintech) has had a profound impact on this landscape, particularly in recent years. Leveraging digitalization and big data, fintech has been instrumental in enhancing financial inclusion and facilitating more affordable credit access for individuals, entrepreneurs, startups, and SMEs. Conversely, the fintech sector could exacerbate the shift of credit intermediation from traditional banks to non-bank entities, leading to a more complex financial ecosystem. In this context, fintech introduces new risks to the financial sector, posing challenges to central banks in achieving their objectives. Within the fintech realm, P2P lending, which enables online lending and borrowing between individuals and small businesses without traditional financial intermediaries, has emerged as a prominent alternative financing mechanism. Benefiting from its digital technology leadership and a less stringent regulatory climate, China's P2P lending sector saw a surge in growth from 2014 to 2017, becoming a key player in the global non-bank finance arena. The industry's volume skyrocketed from CNY252 billion in 2014 to CNY2,804 billion by 2017, representing nearly 30% of all new bank loans. Regulatory interventions were introduced in late 2017 to mitigate P2P-related risks within the financial system, addressing areas such as cash loans, illicit financing, misuse of funds for student loans, investment speculation, and real estate downpayments. By 2019, P2P platforms had either transitioned into small loan creditors or ceased operations, effectively erasing the P2P lending market as it was known. Against this backdrop, a recent ADB Economics Working Paper delves into the impact of P2P lending on monetary policy transmission in China, utilizing a state-dependent local projection model. The study's findings indicate that the reactions of industrial output and inflation to monetary policy tightening are more pronounced and statistically significant in non-boom P2P lending markets compared to boom markets, where responses are largely insignificant. Specifically, inflation's response peaks at 0.8% following an unexpected 100 basis point monetary policy tightening in the non-boom phase, contrasting with 0.6% in the baseline scenario. Industrial production also experiences a significant decline in the non-boom phase, particularly in the initial periods. In contrast, during the boom phase of P2P lending, inflation's negative response only becomes statistically significant after 10 months, and industrial production responses are subdued, not significantly deviating from zero for most time frames. The research suggests that the evolution of P2P finance could negatively impact the effectiveness of monetary policy transmission. As P2P lending acts as an alternative external financing source, market participants are less affected by the rising costs of bank credit, diminishing the impact of contractionary monetary policy. While regulatory measures in China have helped to reduce financial risks associated with P2P lending, they may also have bolstered the effectiveness of traditional monetary policy transmission. This analysis holds important lessons for other economies with burgeoning P2P lending markets, particularly in developing nations such as India, Indonesia, Malaysia, the Republic of Korea, the Philippines, and Vietnam. Central banks in these regions must be vigilant about the potential impact on monetary policy effectiveness and financial stability. Moving forward, central banks and financial regulators must navigate a landscape that promotes the benefits of ongoing financial system innovation. The challenge lies in striking a balance between innovation and ensuring effective monetary policy transmission while mitigating financial stability risks.

Patience is a virtue: But is waiting in line really worth it?
Business 2026-07-15 11:41

Patience is a virtue: But is waiting in line really worth it?

The queue endures. Back before the misery of coronavirus, there was a spate of people getting in very long lines for fashion drops, over-logoed skatewear and even covetable buns. But then – phew – the pandemic killed the queue. It was replaced by text messages telling you when your time was up (not in grim reaper style, rather that your table was ready). But now? Otherwise sane folk are queueing for loaves of bread like it’s the USSR in the 1970s. People are voluntarily spending whole mornings in formation just to gobble a cream puff. Generation instant gratification has discovered a yearning for a very delayed payoff. This waiting game has even ensnared the worlds of academia and psychology as people ponder what the hell is going on. Not wanting to miss out on the action, or inaction, Monocle gets in line to find out how lust and restraint are intertwined.BistroCheap as chipsBouillon Pigalle, ParisWhen it comes to classic French bistros, Bouillon Pigalle is a hit with Parisians and visitors alike. Located on Place Pigalle, in the heart of the city’s former red-light district, the queue outside the restaurant regularly snakes around the corner of the block, with waiting times that can exceed an hour. Waiters in white shirts and black waistcoats serve dishes ranging fromsoupe à l’oignonandoeuf mayonnaiseto the French-cuisine cornerstone steak frites, all at alluring prices. Many of the people queueing outside note that this is a considerable part of the place’s appeal. “I’m queueing today with my flatmates from back home in Germany,” says Stephanie Schachel, a student living in Paris while spending a semester at Sciences Po. “I know this place: it’s cheap but good.” Another queuer, Nicolas Lopez, is also an international transplant to the city and showing visitors around. “I wanted to introduce my family to the concept of abouillon[a restaurant that serves traditional French cuisine],” he tells Monocle. “I particularly like thesaucisse-purée[sausage served with mash]. It’s French and inexpensive.” Everyone in the queue agrees, Bouillon Pigalle is perfect for an extended lunch with friends, perhaps with a carafe of wine, which here can range from a modestun quartto a supersize jeroboam; again, at prices that are hard to beat. “We are queueing because this place has theesprit bouillon[bouillon spirit],” adds Cécile Vassas. “There’s traditional French cuisine and a convivial brasserie atmosphere inside. And you can always order steak frites.” The consensus is: the queue might be long but once you make it through the door you will be rewarded tenfold.bouillonlesite.comThe prize: Bouillon Pigalle’s steak fritesWould you look at that queue!It must be our go nextYou’re kidding – we could have booked!?Maybe I should have followed her leadStarting… to get… hungryGood job this place is open till midnight…This queue is ‘Immobilier’…It can’t be for McDonald’s, surely…Ooh, a queue. Let’s joinOnigiri shopBanging the drumOnigiri Bongo, TokyoCome rain or shine, there’s always a queue outside Onigiri Bongo, a renownedonigiri[rice ball] shop in Otsuka. At the weekend people have been known to wait for more than six hours. When Monocle visits, the queue is already taking shape at 08.45 – nearly three hours before opening time. The first to arrive get a stool. Everyone in the queue is served green tea and spirits are high. Bongo’s owner is Yumiko Ukon, a youthful 72-year-old, who has been working six-day weeks for the past 40 years. “I’m the face of this place and I don’t like to disappoint people, particularly my regular customers,” she says. Her late husband started Bongo in 1960; they met after she tried one of hisonigirion a visit to Tokyo. It was love at first bite. Today, Ukon runs a tight ship with a team that starts work at 07.00 and spends the morning prepping before the doors open at 11.30. Ukon uses rice from Iwafune in Niigata prefecture and a wooden mould to make the ball, adding any of the more than 50 fillings on offer and wrapping it in seaweed. “People crave the taste of home-cooked food”, says Ukon. Kiyoe and Michiyo from Tokyo are the first in line. They saw Bongo on TV. “It’s fine,” says Kiyoe of the queue. “Women are used to waiting.” Masakazu has come all the way from Shizuoka. “I’ve never waited this long for anything,” he says. He’s planning to order the grilled salmononigiri, Bongo’s most popular.Sujiko(salted salmon roe) is another favourite, as is egg yolk soaked in soy sauce.When the restaurant recently relocated, the old interior came too, including the worn counter. “The world is changing but nothing changes here and that’s how people like it,” says Ukon. 2 Chome-27-5 Kitaotsuka, Toshima City, TokyoThe prize: Bongo’s ‘onigiri’What time does the show start?You look parched. Tea?I hope the rice balls are bigger than this stoolExcellent. A white line to keep the queue straightIt’s nearly in the bag, sisSo I said, ‘Queue must be joking!’No, you cannot go in front of meExcellent. A white line to keep the queue straightBagel shopRunning ringsIt’s Bagels, LondonNew York-born photographer Dan Martensen can name supermodels and actors among his subjects but it’s his bagel shop in north London that is turning heads. The idea to bring a slice of New York bagel culture across the pond first began as a passion project. But when the shop opened in 2023 it was clear that the business would become more than a sideshow.The prize: A snack from It’s BagelsFrom the moment it opens, a long queue grows outside It’s Bagels on Regent’s Park Road. “It gets a bit lawless,” says the manager, Franklin Arthur. “When we ask people to cross the road, to start a new section of the queue, people start jumping ahead and we don’t know who was there first.” He often has to leave the assembly line to put on a high-vis jacket and control the chaos. The shop hired its first queue manager, so that Arthur will be able to focus on the bagels. “The demand is outrageous,” he says. A mixture of north London devotees and out-of-town visitors make up the daily queue, which can be 50-people long by midday. Customers who bring friends and family are helping to drive the queues: when Monocle visits, David Lock has brought his mum, Tricia, visiting from Belfast, to his new favourite spot. Every week, Lock makes the journey from Bermondsey in southeast London to It’s Bagels and describes the occasion as “a bit of a pilgrimage”. But for others in line, the idea that waiting for your bagel makes it taste better divides opinion. “When you wait a long time for something, you have to hope [it meets expectations],” says Freddie Phelops, who is queueing for his first It’s Bagels experience. Another punter, Jack Bergman, welcomes the anticipation. “If you’re waiting 30 minutes for a bagel, it’s always going to taste better.” itsbagels.comAre we there yet?I promise… The second date will be better

Figures revitalising a 1980s mall and lifting a San Francisco landmark to new heights
Business 2026-07-15 11:05

Figures revitalising a 1980s mall and lifting a San Francisco landmark to new heights

the chairmanCharn SrivikornGaysorn Property, ThailandMarch sees the reopening of Bangkok’s Amarin Plaza after an extensive renovation. Renamed Gaysorn Amarin, the 1980s shopping mall, flanked by postmodern Grecian columns, sits in Ratchaprasong, the Thai capital’s retail centre. Landowner Gaysorn Property bought back the building’s lease in 2007, and, after exploring several different plans, it is set to become the final part of a trio of buildings that make up Gaysorn Village.The initiative is led by chairman Charn Srivikorn. Originally an investment banker, he took over the family business after the Asian financial crisis in 1997. He first worked with Hong Kong Land to redevelop Bangkok shopping mall Gaysorn Centre in a union brokered by LVMH brands. He then went on to build Gaysorn Tower, the most sought-after office space in Thailand.Srivikorn’s family ties to the area go back to the 19th century and his siblings work alongside him as caretakers of the neighbourhood (twin brother Chai was instrumental in the construction of Ratchaprasong’s elevated walkway, which connected the district’s shopping malls, offices and hotels with the skytrain, transforming the visitor experience).A respected figure in Asian property circles, Srivikorn describes himself as an urbanist rather than a retailer. He wants Gaysorn Amarin to be a lounge where the entire district can “mingle” – a favourite word. At 62, he has no intention of slowing down (despite nursing a stubborn pickleball injury), with his sights set on developing other parts of Bangkok.Did you ever consider knocking down Amarin Plaza?We did. The first scheme with architecture firm Aedas involved merging Amarin Plaza with our neighbouring building, Maneeya. We decided not to redevelop in the end because there’s too much supply in Bangkok. By renovating, we can operate at a lower cost to the competition and still provide quality. And we can always redevelop later, when the market normalises, which we think will take another 10 to 20 years.Gaysorn will be operating a lot more of the space inside. Why?Brands used to be the activators of traffic and there was the seasonality of spring/summer and autumn/winter retail and fashion seasons. But today, Louis Vuitton needs to change its visual merchandising every two to four weeks. Smaller brands don’t have the same resources and that creates a gap. So yes, we have had to move from b2b to be more B2C, but we are looking more at placemaking and activating space, not retailing. Activation can come from a civic space and urban areas can be designed to [bring life to] a place or drive a retailing programme.The Gaysorn Amarin mallIt’s one of a trio of buildings that make up Gaysorn VillageGaysorn Tower contains sought-after office spaceLouis Vuitton is back as one of your anchor tenants. How did this relationship reignite?That wasn’t intentional. We had planned for a speciality concept store. But when they heard what we were doing, they came to us. It’s going to be different; they’re not calling it a shop. Louis Vuitton loves to innovate and I think this concept will be a first in Asia. We used to work with a number of their brands at Gaysorn Centre but LVMH changed its strategy more than a decade ago and they needed a bigger floor plate. We didn’t have the space, so they have their flagship stores in Iconsiam, Siam Paragon and Emporium.You operate a number of residential buildings too. Why did you venture into this alongside retail development?It’s fun. Also, we can make an impact by bringing in what we’ve learned on the commercial side. Retail is more than just a collection of brands. The way we think and design the customer journey and experience can be applied to residential, which is all about creating the environment for people to enjoy living.Are your residential developments the biggest revenue contributor?Well, our latest residential project, Tela Thonglor, generated about THB4bn [€104m] in revenue but that’s project-based. It’s not annualised. The revenue for our mixed-use properties last year was about THB1bn [€26m]; we closed the retail in Amarin. This year it should be about THB1.3bn [€33m] and eventually around THB1.6bn [€41m].How do you feel about 2024 compared to last year?Much better. The curve is going up. But looking ahead at 2025 to 2030, we are facing a different geopolitical environment and a lot more unknowns. I went up to Everest Base Camp in search of answers and I came to this conclusion: we invest to improve people’s lives and as long as we are doing that, we are adding value.Any worries for the coming year?My wife wants me to spend more time with her but I am not ready to do that just yet.gaysornproperty.comMarkets to watchHong Kong: Best for new homesWhile many cities, such as Paris and Berlin, struggle to cope with demand for property, Hong Kong’s supply of new homes reached a record high in 2023. Though these tend to be concentrated on Hong Kong Island because of a lack of terrain suitable for construction further afield, a new initiative that taps into private land is opening up a host of possibilities.Valencia: Best for rental returnsInvesting in rental property is particularly lucrative in the laid-back Spanish city of Valencia, averaging a yield of more than 7 per cent. And while demand is already greater than in Madrid or Barcelona, it’s still growing. Overseas real-estate investment and high availability have helped to drive this boom.Zürich: Best for co-op housingSwitzerland’s largest city has a long history of supporting non-profit housing. That’s why one in five multi-residential buildings are run by private co-operatives (known by the catchy moniker ofWohnbaugenossenschaft). Unlike in most European cities, Zürich’s co-operatives are not subsidised. They instead follow the municipal government’s century-old formula for calculating rents, ensuring a consistently low rate. Residents are so satisfied that no co-operatives have ever opted out of the model.Tokyo: Best for retail spaceBricks-and-mortar retail across the globe is on the up and Tokyo is leading the way. Not only does it boast one of the most attractive prime rent-to-GDP ratios but Tokyoites still have a strong attachment to physical retail. This makes it one of the world’s most attractive cities for brands looking to set up shop.Dubai: Best for hospitalityA buoyant tourism industry in the most-visited Emirate has created significant demand for hospitality spaces in recent years. Even better, the relatively straightforward process of setting up a business in Dubai means that investors are increasingly keen to back new hospitality ventures there.the co-foundersLyndsay Caleo Karol and Bill CaleoThe Brooklyn Home Company, USAToo often, developers are happy to ignore aesthetic and social values to boost their bottom line. The Brooklyn Home Company, based in New York, is trying to do things differently. It was founded in 2007 when real-estate developer Bill Caleo asked his sister, Lyndsay Caleo Karol, and her husband, Fitzhugh Karol, to help him design a property he had bought. The company specialises in renovating and constructing residences according to sustainable principles, integrating art and design features from local creative talent.How do you do things differently?Bill Caleo: Developers get a bad reputation for their history of abandoning projects once they’re complete, leaving new homeowners confused and worried. We consciously label all our projects as The Brooklyn Home Company properties, because we want to stand by our developments. I wouldn’t say we’re perfect – issues do come up. But we make sure to take care of our customers.We also try to do things the right way by surrounding ourselves with craft, supporting local artists. We also focus on the carbon footprint of our buildings. Many years ago, we started studying passive house-building techniques. It involves super-insulating buildings and bringing in filtered fresh air. This lowers carbon emissions and eliminates fossil fuels from the picture.Brooklyn Home’s Bill CaleoLyndsay Caleo KarolOne of the firm’s light-filled interiorsIt is guided by sustainable principlesHow did your approach of working with local artisans develop?Lyndsay Caleo Karol: When we first started out, my husband Fitzhugh and I were in art school at Rhode Island School of Design, so we know a lot of craftspeople, from woodworkers to metalsmiths.We work with young artists who are still in a discovering phase in their careers. But we also work with older master craftsmen. For 608 5th Street, a Brooklyn townhouse project, we worked with the third generation of a Polish family who are master stair builders. When we come to a project, we often think we know exactly what kind of materials we want to use. But we always learn by working with master craftspeople like them.What are the challenges when it comes to developing on a residential scale according to passive house principles?LCK: I’ve leaned on details from historical buildings – architecture from 100 years ago – to create a certain type of romance, an air of nostalgia. Features like fireplaces and gas ranges do create a sense of intimacy. But they’re highly polluting. So I have to focus on creating that sense of warmth through natural materials. Having said that, we’re now seeing the development of induction ranges that are ecologically sustainable.BC: In our early days, our customers demanded gas ranges. But people are embracing induction now and changing their perspective on what can be considered beautiful and high-end. We’re seeing a shift.thebrooklynhomecompany.comthe developerMichael ShvoTransamerica PyramidDeveloper Michael ShvoThe flight of businesses and workers from central San Francisco has turned one of America’s most productive cities into a case study in downtown decay. Look a little closer, however, and the green shoots are hard to miss: major investments are happening again in the urban core and the soon to reopen, skyline-defining office tower, Transamerica Pyramid, is a beacon for this revival. It’s also a billion-dollar bet on the city’s office property market.“The Pyramid is a symbol of San Francisco, no different from the cable cars and the Golden Gate Bridge,” says Michael Shvo, the Israeli-born developer who snapped up the building in 2020 for $600m (€550m). Shvo (pictured) brought in architecture studio Foster + Partners to give his 48-storey modernist skyscraper a top-to-toe refurbishment, ahead of its reopening this quarter. “We’re upgrading the building for the next 60 years,” says Shvo.Most floors of the Pyramid have been turned into offices and, according to the developer, 80 per cent of these were leased ahead of completion, mostly to venture funds, law firms and San Francisco’s growing cadre of artificial-intelligence companies. A restaurant and skybar are in the works, along with a members’ club by New York institution, Core.San Fran’s Transamerica PyramidThe Foster + Partners team have sought to turn the ground floor into a public plaza, opening up the lobby to the surrounding streets and boulevards with vast and inviting windows, while making space for a coffee shop, architectural bookshop and florist. “My goal here is really to activate the entire city block,” says Shvo, who envisions the Pyramid’s base as a thoroughfare connecting and enlivening multiple neighbourhoods downtown. “We want people to have a reason to come here that’s not just for work.”Enticing those people back to downtown, however, is going to be a challenge. Shoplifting and flagrant drug use continue to plague San Francisco’s image and the city has been slow to address a dramatic rise in rough sleepers. The city is on the mend but it will take a charm offensive to convince many that the centre is the place to be.Monocle toured the Pyramid ahead of its reopening and the lobby is particularly impressive, with the diagonal beams that hold up the tower now revealed. The Transamerica campus also includes a spruced-up park of historic redwood trees along with a second tower nextdoor, which has been entirely gutted for a mixture of retail and office spaces, and an adjacent 1930s building that has been reskinned by the Foster team. Both are still some years from completion.When the Transamerica Pyramid first opened in 1972, designed by William Pereira for the eponymous insurance firm, it was the tallest building west of the Mississippi River. Shvo often tells an anecdote about visiting San Francisco as a seven-year-old and drawing a picture of the building that he would one day own. He’s less enamoured, however, by many of the other blocks that dominate the city’s skyline. “The reason buildings are vacant is not because Twitter decided to cut space; it’s because these buildings are not functional any more or relevant to the needs of today’s tenants,” says Shvo. There is a flight to quality, he adds. “As long as tenants are provided the right kind of office space, they will come to work.”shvo.com

Business agenda: The case for democratising aviation and the magazine business in Manila
Business 2026-07-14 18:00

Business agenda: The case for democratising aviation and the magazine business in Manila

Elevated insightsPrivate pilot perspectivesPrivate and commercial pilot Edwin Brenninkmeyer is betting big on the future of aviation. “The sector has changed a great deal. Chiefly, funding is increasingly available to help make aviation more sustainable,” he tells Monocle.As the founder and CEO of Oriens Aviation, which is based in Biggin Hill (home to a private airfield) and is the exclusive Pilatus and Tecnam UK aircraft distributor, Brenninkmeyer knows the business from inside and out of the cockpit. “Aviation is a conservative industry,” he says. “New technologies have a hard time gaining certification and acceptance but I’m convinced we will succeed as long as people don’t get frustrated and lose interest.”His passion for flight started at a young age. “I always loved model aeroplanes,” he says. He earned a private pilot’s licence at 17. But Brenninkmeyer’s career initially followed a different trajectory. His early professional years were spent in retail, gaining insights into leadership and team management. After a stint in venture capital watching the growth in the aviation sector, he returned to the skies. “There was a big opportunity in the mid-2000s with technology entrepreneurs producing cost-effective jets,” he says.The company was founded on a vision of democratising business aviation and provides services including sales, charter management and plane maintenance. Business is booming, especially in the US. “The whole infrastructure there is very different from Europe,” he says. “Seventy to 80 per cent of US business aviation customers are middle management, so it’s not just for the rich and famous,” he says. Brenninkmeyer hopes to change attitudes closer to home too. “In Europe business aviation is often seen as a frivolity rather than a practical tool to save time.” With the company’s values and foundation set, his focus is ethical business and refined hospitality. “If you have a good culture within your company, that translates to your customers.”Brenninkmeyer is keen on opportunities to support the industry and the investment it’s receiving for innovation. “If you’re developing hydrogen-powered aircraft that are more environmentally friendly, what infrastructure will those aircraft need?” he says. “That’s the next step.”For more top-flight stories, tune in to Monocle Radio’s business show ‘The Entrepreneurs‘.Paper stateMagazine meccaSpruce Gallery opened in Metro Manila at the end of 2023, close to the headquarters of the Asian Development Bank. Both share a similar mission to provide life-improving infrastructure – on a different scale. While the bank finances dams, the gallery is plugging a media hole in the Philippines’ largest metropolis. “We are the only magazine store in the entire city,” says Ric Gindap, who founded the gallery with his business partner Bonnapart Galeng.The smart space displays imported magazines alongside a rotating art exhibition. Galeng sits at the counter to provide recommendations, while chairs invite lingering. The absence of a website encourages visitors to come here to discover new titles, as well as create a community around print. Competitive pricing is another draw.Gindap and Galeng decided to act when the major bookshop chains gave up on stocking print titles. “They just pile up the back issues in one corner and expect people to respond,” says Gindap, who was the editor ofMemomagazine when Galeng joined in 2006, eventually becoming its fashion editor. “Our DNA is really in magazine creation,” says Gindap.The response to Spruce Gallery has been both encouraging and educational. Independent titles have been flying off the shelves faster than they can be restocked, while venerable or established fashion glossies have been slower sells. Teens and twenty-somethings are buying text-heavy publications with few pictures;The Paris ReviewandThe Monocle Companion(our own paperback essay series) are bestsellers. “These kids are bombarded with digital images all the time,” says Galeng. “They’re a reading generation and want to hold something that’s tactile.”Star glazingCeramic excellenceThe small Japanese city of Tajimi, famous for its rich clay soil, has a 1,300-year history of pottery. The city has been at the centre of Japanese tile production since the early 20th century and 90 per cent of tiles made in Japan now come from here – an output offset by smaller makers producing tiles using traditional techniques.Masashi Kasai founded Tajimi Custom Tiles (TCT) in 2020 to connect architects and designers with skilled makers who could produce bespoke tiles that had the handmade feel of pottery. TCT’s presence recently expanded in Tajimi thanks to a new gallery and kiosk where designers can peruse samples, order from its semi-custom range (39 shapes in 100 colours) and buy one-off pieces.Kasai wants TCT to grow and, buoyed by the low yen, overseas sales have been brisk, with projects for luxury brands and Melbourne’s new Parkville Station. TCT’s Zürich-based creative director, David Glättli has also introduced collaborations with international designers to display possibilities.“Factors beyond our control, such as interest rates, can affect our sales,” says Kasai. “But the overseas market for Japanese tiles is definitely expanding.”tajimicustomtiles.jp

Mastering the Craft of Setting Financial Goals: A Pathway to Future Wealth
Finance 2026-07-14 11:41

Mastering the Craft of Setting Financial Goals: A Pathway to Future Wealth

Mastering personal finance is a challenging endeavor, but it is a crucial skill for achieving your dreams. In the latest episode of "Temperament" by 1 Finance, host Ashish Chawla explores the nuances of setting and achieving financial goals, offering practical advice and strategies to help listeners navigate their financial journey. Unlocking Goal Setting's Full Potential The episode begins with a surprising statistic: only 20% of people set financial goals, and many of them struggle to meet them. This highlights the importance of establishing clear and attainable financial objectives. Whether your aim is financial independence, purchasing a home, or planning for retirement, having well-defined goals helps guide your decisions and keeps you focused on your long-term vision. Goals and Overall Happiness Ashish speaks with Dr. Sanna Balsari-Palsule, a behavioral scientist, who explains that the pursuit of goals is integral to our overall happiness. It's not just the achievement of the goal that matters—it's the process of striving towards it that brings fulfillment. However, many people fall into the "intention-action gap," setting vague goals and overestimating their discipline, leading to disappointment when they fail to act on them. Stories of Financial Success In this episode, Tanuj Mehta, a merchant navy captain, shares his personal journey of setting and achieving financial goals. Despite the financial turmoil caused by the COVID-19 pandemic, Tanuj's systematic approach to goal setting and planning kept him on track. His story is a powerful example of the effectiveness of intentional financial planning. Expert Insights on Financial Goal Types Financial consultant Charmi Shah distinguishes between "hard" and "soft" financial goals. Hard goals, such as building an emergency fund or getting insurance, are essential for financial security, while soft goals, like buying luxury items, offer more flexibility. Understanding this difference helps individuals prioritize their objectives and make informed decisions about resource allocation. Creating Your Financial Roadmap The podcast likens crafting a financial plan to preparing for a trip. You need to identify clear destinations (goals), assess your current financial health, create a budget, manage debt, save and invest consistently, diversify your investments, monitor your progress, and continue to learn about personal finance. Working with a financial advisor, like those at 1 Finance, can provide tailored guidance to help you achieve your financial goals. The Financial Behavioral Score (FBS) 1 Finance introduces the Financial Behavioral Score (FBS) as a tool to evaluate one's financial health. The FBS considers financial decisions, personality traits, and broader economic factors to give a comprehensive view of an individual's financial status, aiding in the identification of suitable strategies for improvement. Staying Committed to Your Goals Dr. Sanna offers practical techniques, such as mental contrasting, the "fresh start effect," and commitment devices, to help individuals maintain their focus on financial goals. These strategies balance optimism with a realistic assessment of challenges, promoting adherence to your financial plan. Conclusion: Taking Control of Your Financial Future This episode of "Temperament" emphasizes the importance of goal setting, practical planning, and disciplined action in managing personal finances. By adopting these principles, individuals can unravel the complexities of personal finance and make significant progress toward their life goals, leading to greater financial empowerment and well-being.

The business agenda: Manufacturing cranes in the US, Colombia’s hospitality scene and the business of Tracht
Business 2026-07-13 18:12

The business agenda: Manufacturing cranes in the US, Colombia’s hospitality scene and the business of Tracht

Manufacturing – USATall ordersWhile the security of global shipping routes has preoccupied governments around the world in recent months, the US has also swung its attention to another fixture of its maritime infrastructure: cargo cranes at its ports.A 2023 newspaper report alleged that US officials were concerned that technology woven into the cranes that lift containers from ship to shore might be harvesting data on the US’s maritime economy. The majority of these contraptions are manufactured in China: Shanghai-based firm ZPMC makes 70 to 80 per cent of the world’s cargo cranes. The claims have been refuted but in February the US government announced a $20bn (€18.4bn) investment in its port infrastructure, with a focus on reviving its largely dormant crane-manufacturing sector.The return of US crane production is set to take shape over the next five years, meaning that domestic manufacturing will do much of the heavy lifting in a sector of the US economy that currently generates $5.4trn (€5trn) every year. Monocle comment:There’s a fine balance between security and paranoia. Trade barriers damage as well as protect.Audio – AustriaSound effectsProfessional-grade audio equipment has long ceased to be the preserve of radio journalists and sound engineers, and established audio hardware companies are investing heavily in versatile and easy-to-use microphones and recorders.One of them, Austrian Audio, emerged as a reaction to off-shoring. In 2017, when AKG – Austria’s celebrated maker of microphones and headphones – was acquired by South Korean giant Samsung and closed its facilities in Vienna, a group of its engineers stayed behind and set up on their own. “We wanted to create something new but respectful of our heritage,” says Austrian Audio’s Perry Damiri.Though it caters to entry-level creators, its biggest sellers are expensive microphones used in the world’s best recording studios and concert halls.Transport – Canada&USASpark and rideFor school students across North America, there is one sound every morning that makes the heart either sink or sing: the trundling arrival of a bright yellow school bus. But a quiet overhaul to one of North America’s most recognisable forms of transport is under way at a new manufacturing plant built and operated by Blue Bird, the firm that debuted the famous buses in the 1920s.The facility, in the US state of Georgia, opened a year ago to cater to the soaring demand from school districts across the US and Canada for electric buses, rather than diesel. The plant has the capacity to produce almost 5,000 buses a year.School buses are well-suited to electrification. Fixed routes make them ideal for range-limited EVs and the periods outside the school run give plenty of charging time. They also ensure cleaner air for children, which has encouraged education authorities to start electrifying fleets. By 2032 it’s estimated that almost half of school buses will be electric, which will make the school run less arduous – for the environment, at least.Publishing – IbizaCreative outletWhen Sonja van der Hagen settled in Ibiza after a career at German furniture firm Dedon, she was excited to discover a rich community of artists, artisans and architects, yet many were struggling to be seen and heard. So her new book,Made in Ibiza: a Journey into the Creative Heart of theWhite Island, lands like a celebratory lifeline. On an island where superclubs and summer crowds cast shadows, she hopes her compendium of Balearic creativity will inspire more people to buy local. How much did your perception of Ibiza change while researching the book?Everyone knows the “party island” cliché but it was reassuring to discover an almost-invisible creative community and delve into thousands of years of history. But we had to dig for information, highlighting how little these layers are available. More needs to be done to honour the island’s artistic spirit.How can you encourageisland visitors to ‘give back’?I wanted to connect people to the quality of island products by showing the integrity of the people behind them. I enlisted journalists to get to the heart of their stories, some of which stretch back generations. All contribute to Ibiza’s identity.What advice do you have for others hoping to find the right publisher for their own book project?Be ready: have a good concept; make the presentation shine; be prepared to adapt. Most importantly, find a publisher that understands your vision and shares your passion.The EntrepreneursLaura Kramer on…Pure shoresNestled on Tierra Bomba Island, a breezy boat ride away from Cartagena, Blue Apple Beach isn’t your run-of-the-mill retreat. As the first island resort worldwide to earn B Corp status, it’s aiming to be a game-changer in Colombia’s hospitality scene.Tierra Bomba IslandFounder Portia Hart (pictured) didn’t set out to save the planet when she opened the doors in 2016. “I just wanted to start a company that sold rosé on the beach with good music and nice food,” she tells Monocle.  Originally from the UK, Hart followed the sun to the south of France where she worked for almost a decade before finding her way to the Caribbean coast of Colombia. “I wanted to live somewhere where there was a sense of optimism.”Founder Portia HartHart, whose mother is from Trinidad and Tobago, immediately felt a sense of belonging. “Everybody looked like they could be my cousin. For once it wasn’t hard to buy makeup or to find a hairdresser,” she says. “The country was coming out of a dark time and everyone was enthusiastic and starting businesses with no money.”Today, Blue Apple Beach has 11 bedrooms and the hotel is a love letter to Hart’s years in the Côte d’Azur, with its beach club, Mediterranean-Caribbean fusion restaurant and a DJ who spins European and Latin house tunes.Hart has three other ventures, including a non-profit focused on job creation through waste management and glass recycling. At the heart of it all is a commitment to creating vibrant businesses that play a role in the neighbourhood. “A huge part of being a sustainable business is the human side,” she says. “It can be something that improves the quality of life in the community.”For more inspiring business stories, tune in to ‘The Entrepreneurs‘ atmonocle.com/radioFashion – AustriaBack on trachtThe biannual Fesch traditional costume trade fair is held in Salzburg and attracts about 200 brands and 1,500 shop buyers – all of which are focused on what is now a growing market for long-established Alpine andTrachtdress (think lederhosen,dirndlsand some seriously good hats).Marcel Pachteu-Petz, owner of menswear label Trachten KaiserHandmade straw hats by Bittner, a hatmaker based in Bad IschlWhat started as a village uniform that was sported by 16th-century peasants across Bavaria, Austria and South Tyrol has been elevated to a focus of fashion shows, premium shops and bespoke fittings. It’s also an industry that to this day supports a world of impeccable craftsmanship and a network of family-owned ateliers.And as the ceremonial costume has ceased to be a symbol of political affiliation, today’sTrachtenhave found function as an urban alter-ego. “On the streets of Munich, it’s not unusual to see Bavarian jackets on dress-down Fridays,” says Sebastian Haufellner, head of buying at longstanding Bavarian department store Lodenfrey. It’s all a joyful way of holding on to a sense of identity.Cowhide lederhosen by Salzburg-based label BergheimerHungarian dirndl maker Kinga Mathe designed Trachten for Hugo Boss

Inside Canyon’s quest to revolutionise city cycling with high-performance e-bikes
Business 2026-07-13 18:02

Inside Canyon’s quest to revolutionise city cycling with high-performance e-bikes

“This is a do-everything bike,” says Arthur Janzen, Canyon’s global category director for urban and recreation, suitably dressed for a ride in shorts and a T-shirt. “No matter where you go, the bike supports you.” We’re on a two-wheeled tour of the bike brand’s global HQ in Koblenz. In the hills above us is German wine country and the sun is shining as we ride down a path next to the Rhine, testing the bike that Janzen is referring to, the Pathlite:On SUV, as well as the Roadlite:On CF. These are two of the latest e-bikes in this category.Canyon, with its huge number of pedal and e-bikes – from road to mountain – on offer via its website, is clearly ambitious. It’s determined to be at the forefront of a bicycle industry that’s continuing to develop at almost the same lick as the automotive trade.The Roadlite has wireless gear changing, lights integrated with its battery and a motor by Porsche-owned company Fazua. The Pathlite, a trekking bike with fat tyres, comes with the option of abs (the anti-lock braking system pioneered by car designers) to stop from you going over the handlebars, as well as a belt-drive system that lets the rider change gears with a twist of the right handlebar rather than a click shift. Both offer graded levels of pedal assist – and cost several thousand euros.The company’s new HQ – a collection of box-shaped, black-and-white buildings comprising offices, a showroom and an e-bike centre – opened last year. When Monocle meets the company’s CEO, Nicolas de Ros Wallace, he is sitting in a Vitra armchair in an office filled with high-performance bikes and cycling paraphernalia. De Ros Wallace, who has Spanish, Italian and British roots, is sporting one of the brand’s black T-shirts and, though we’re assured that dressing in company kit isn’t compulsory, most people here are embracing the look. De Ros Wallace came onboard in 2021, after leadership roles at Zara and, most recently, Nike, where he oversaw the Jordan segment from the sportswear behemoth’s European base in the Netherlands. He still commutes to Canyon from Utrecht.Fourth-generation Aeroad CFR in Canyon’s R&D departmentNew HQ in KoblenzBikes on displayAssembly lineDe Ros Wallace says that urban bikes represent about 5 per cent of global sales, something that he wants to increase. “One of our strategic pillars is urban mobility,” he says. “But it doesn’t have to come by bringing down performance. It has to come by pulling up urban mobility.” He is determined to bring a design-forward, technology-filled approach to city biking, an area that he thinks offers big opportunities for growth as metropolises reassess their transport infrastructure.Canyon, which employs nearly 1,700 people worldwide, including at a hub in Amsterdam, isn’t aiming to be the next Specialized or Giant Bicycles. In fact, being the biggest bike company in the world isn’t part of its game plan. “Others play that role,” says De Ros Wallace. “Our ambition is to be the most innovative and inspiring.” The brand is banking on differentiation to stand out from the pack as it looks to tweak its catalogue. Part of the plan, being an e-commerce player, is striving to provide the best customer service and extending the ways in which consumers can interact with the brand. This has been done through investment in an app and a forthcoming membership scheme. Canyon’s physical presence is also being extended with the growth of its Canyon Factory Service (CFS) centres – essentially repair workshops – that are currently operating in towns including Rotselaar in Belgium and Eindhoven in the Netherlands. Munich’s CFS is slated to open in early 2025.Founded as a bicycle retailer called Radsport Arnold in the 1990s by brothers Roman and Franc Arnold, the company moved into manufacturing and by 2002 had renamed itself Canyon. Franc is no longer involved, while Roman sold a majority stake to Belgium-based investor Groupe Bruxelles Lambert (GBL) in 2020, retaining equity in the company as well as chairmanship of the board. Despite its desire to push into cities, Canyon’s brand DNA still draws on its sporty beginnings, with a focus on high performance, and there remains a strong link to athletes. This is something that Monocle sees while touring the showroom, where bikes used by cyclists including Dutch superstar Mathieu van der Poel are on display next to floor-to-ceiling windows. More than 50 riders were on Canyon bikes at the Paris Olympics and the company sponsors some 270 athletes, as well as having several high-profile ambassadors, including US basketball player LeBron James.The link to sporting excellence is clearly aimed at making Canyon both inspirational and aspirational. “We build the best bikes for the pros but we also want to trickle down,” says Sven Reutter, a Canyon product manager, as we visit the Innovation Lab, part of the brand’s R&D centre, which features a soldering station and a set of small 3D printers. Ready to rideTest lab team manager Stefanie SchunckElectric bike showroomCEO Nicolas de Ros WallaceWheels in the factoryThe R&D is just one part of the Koblenz-based design and engineering machine. Canyon is keen to point out its state-of-the-art facilities, including a test lab where such things as frame stiffness are tested and gizmos including a 3D optical scanning arm are deployed to ensure that frames have been made correctly. There’s also a destructive test lab – which sounds more fun than it looks – where Canyon ensures that new bikes can stand the test of time before going into production.A short drive from the HQ, Monocle visits a big factory facility where the bulk of Canyon’s higher-end bikes are assembled. Hundreds of parts are needed to put the bikes together and these come from around the world, from Portugal to Taiwan. The factory, where a flashing green light indicates that work is about to begin on a line of bikes awaiting stages such as gear wiring or motor attachment, can produce up to 400 bicycles a day before they are boxed and shipped. So are there any plans to manufacture outside Germany? “For us, local for local is the ideal: Europe for Europe; Asia for Asia; the US for the US,” says De Ros Wallace. “It’s the ideal but not the reality because much of the industry is in Taiwan.” Still, there are plans to open a warehouse in Asia to make logistics more efficient.All bikes need oilAll bikes need oilAddressing minor scratches or blemishesCT scanner used to assess potential issues with a frameCanyon hopes to forge ahead, despite the industry looking a lot flatter than it did during the pandemic, when everyone seemed to want to hop on two wheels and get fit. Sights are set on growing the current sales of €741m to more than €1bn by 2025, with plenty of opportunity to increase market share in the US, where the company has a southern Californian outpost, as well as southern Europe and Asia. Canyon is also aiming to extend its clothing line and move into accessories such as shoes and helmets. “We’re investing heavily in talent,” says De Ros Wallace, who owns five bikes – all of them Canyons, of course. “We are the right size to manoeuvre.”Spoilt for choiceCustomisation will be a key part of Canyon’s future success. Customers will soon be able to pick out their bike’s paint finishes, wheels and more.

Reaching for the sky
Business 2026-07-12 18:38

Reaching for the sky

About three minutes ago, Monocle took off from downtown Brisbane. There’s an empty seat to our left and two more behind us. The cabin is suspended beneath the wings of a pilotless electric aircraft, whose silver propellers hum away. “Wave if you feel woozy,” says a disembodied voice. But airsickness won’t be a problem, not least because we’re sitting in a chair on an airfield in Hampshire, England, wearing a VR headset. The voice belongs to an employee of Wisk, the California-based Boeing subsidiary that built the pilotless air-taxi model in the middle of the tent.‘Is it a bird? Is it a plane?’ (It’s a plane)It’s quite a ride. The air taxi would offer a quick, scenic alternative to a tedious 30-minute car journey. And, if all goes according to plan, it might be a transfer option for visitors to the 2032 Brisbane Olympics. But will people be willing to fly in a vehicle without a human being at the controls? “It’s like a driverless car,” says Wisk’s Carrie Bennett, who has clearly encountered this reservation before. “It’s fascinating at first but then you forget about it because everything just works. And you don’t have to worry about a child chasing a ball across the street.”The Farnborough Air Show is huge. It has more than 500 exhibitors and some 35,000 people visit over its five days. This year’s iteration is quite quiet in terms of big orders for commercial jets, though that’s possibly a reflection of an industry still searching for its level in the wake of the coronavirus pandemic. At the last Farnborough before the virus struck, in 2018, a record 1,464 orders were placed with the two biggest manufacturers, Airbus and Boeing. In 2022, that figure was 441. This year, it’s 256. Manufacturers are also beset by supply-chain difficulties, which are off-putting for potential buyers. Airbus has an order backlog of 8,585 aircraft; at current rates of production, that represents more than a 10-year wait. (Nevertheless, it’s demonstrating the A321XLR, an extra-long-haul variant of its single-aisle workhorse, which Iberia hopes to start flying this year.)Air India’s new Airbus A350Among those making purchases, Qatar Airways has made a particular effort, to the extent that the entrance to Farnborough’s main exhibition hall resembles one of its tonier Business Class lounges, complete with a string duet and a Diptyque scent dispensary (the airline has confirmed an extension of its Boeing 777-9 order from 40 to 60). A physical presence is, however, no guarantee of sales. Brazilian manufacturer Embraer has parked on Farnborough’s aprons a handsome black and turquoise E190F cargo jet but has announced no new commercial deals (Embraer has, however, sold six A-29 Super Tucano attack aircraft to Paraguay’s air force).Aerospace companies setting out their stallIf there’s one thing that demonstrates just how far the Farnborough Air Show has come since it was first staged in 1948, it is its focus on clean and renewable energy. Representatives of the aviation industry seem determined to stress that the environment has no stauncher allies. Suspend your cynicism, however, and you’ll see that there’s a lot going on in this realm. The hoardings of ZeroAvia boast of the UK-US firm’s inclusion on lists of top green-technology companies. Rudolf Coertze, its head of research and development, explains that the firm is working towards having its zero-emission hydrogen-electric powertrains adapted to small passenger aircraft the size of a Cessna Caravan or a Dornier 228. And he says that it won’t stop there. “There is no reason why this wouldn’t ultimately work with a Boeing 737 or Airbus A320 – and that could be coming by 2035. It would remove a large fraction of emissions caused by aircraft.”Small aircraft will serve as pioneers in this regard. The Cassio is French start-up Voltaero’s rear-propeller electric-hybrid aircraft. There are high hopes for the plane and Global Sky has reserved 15 of them during the show (232 were pre-ordered before the end of Farnborough). Jean Botti, Voltaero’s CEO and a former chief technical officer at Airbus, is an enthusiastic salesman. He sits us in the pilots’ seats and explains how the airframe can be adapted to carry passengers, post or cargo, or perform rescue operations. Future, larger models will have retractable undercarriages and pressurised cabins. “It could replace a lot of light aircraft and also compete with business aviation,” Botti tells Monocle. “There’s a lot of criticism of private jets and, of course, this is much, much cleaner. It will also be cheap to fly: €400 to €500 per hour.”Wisk’s four-seat autonomous air taxiIf I just press here…Curved wingtips of a British Airways Airbus A320neoCommercial planes on show at FarnboroughQatar Airways Boeing 787 DreamlinerEuropa XS monoplaneFor all the talk of a cleaner, quieter future for aviation, some aspects are eternal. The most sophisticated machines will still need the most basic parts, someone will always be needed to build them and a marketplace as busy as the Farnborough Air Show will always help to sell them. Beagle Aircraft is based nearby in Dorset; customers for its components include BAE and Leonardo. Among the exhibits at its Farnborough stall are a cargo door from a business jet, an outer leading edge from the wing of a German Air Force Tornado and a flight simulator. “We didn’t make that,” says Beagle’s order-book manager, Tom Rosser. “But if you don’t have something to draw people in, they’ll walk by. And for the five or so minutes when they’re on the simulator, you have a captive audience. That lets us explain why the things that we make are important.”Coming to Farnborough, says Prosser, isn’t just an exercise in PR outreach. A lot of meaningful business gets done here. “For a company our size – just 100 to 120 people – it wouldn’t be worth doing as a loss leader,” he says. “Last year we paid for the stand with the sales that we made on the first day. And the lunches definitely help to get agreements over the line.”Up in the airGlobalIn The Jetsons, flying cars glide effortlessly around Orbit City (writes Jakob Funkenstein). But since the cartoon was first broadcast in 1962, the basic airframe and engine designs of large and small commercial aeroplanes haven’t changed very much. However, a new generation of electric vertical takeoff and landing (EVTOL) light aircraft will soon enter the market, promising to revolutionise urban transportation. EVTOL makers, prospective operators and vertiport companies claim that these vehicles will end traffic gridlock and shorten commutes – and your ride will be fully autonomous. Though it’s unlikely that we will be riding in private EVTOLs 10 or 20 years from now, we might see ride-sharing in high-density locations, such as airports, sports venues and tourist attractions.A huge effort is now under way to figure out the infrastructure needs of EVTOL operations in big cities. Traffic and avoiding collisions with other aircraft are key concerns. Vertiport construction also represents a major investment – the more landing pads, the better. However, that requires space, which is costly. All of the investment required in design certification and infrastructure development begs the question: will the end product be affordable to ordinary users? Every player appears to have a different solution for making urban air transport economically viable. Manufacturers such as Joby and Archer are so confident that not only are they producing EVTOLs, they are planning to operate them too.How the fare of an EVTOL ride is calculated will depend on factors including distance and demand but operators will probably have to charge many times more than the current land-based taxi firms. There’ll be technology enthusiasts who will jump at the chance to be one of the first to try out this next-generation commute but there’s no guarantee that even they will remain loyal EVTOL users.If you build it, will they come? In Paris, a protest movement called Taxis volants Non merci is already opposing the idea. Safety concerns aside, the movement argues that it’s not worth paying social costs such as extra noise, let alone the desecration of Paris’s skyline. So it might be decades before average citizens can hail an air-taxi.Funkenstein teaches aviation management at IU Internationale Hochschule in Berlin.Top three deals at FarnboroughFlynasThe biggest deal at this year’s event was between Airbus and Riyadh-based Flynas, Saudi Arabia’s first low-cost airline. Flynas is best known as the airline of choice for budget-conscious pilgrims visiting Mecca: during the last Hajj season, the airline filled 100,000 seats. It is now significantly expanding its all-Airbus fleet, ordering 130 A320s and 30 A330s, with delivery to begin in 2027 – a huge move by an airline whose current fleet consists of just 64 aircraft.Japan AirlinesThis year, Japan Airlines (JAL) finalised orders for 20 Airbus A350-900s and 11 A321neos, and for 10 Boeing 787-9s, with an option on 10 further 787s. The A350 order was reduced by one from the terms announced in March: the 21st had been intended as a replacement for the JAL A350 lost in a runway collision at Tokyo Haneda in January but JAL has decided that it can live without it. Boeing was clearly grateful for the 787 order: the firm’s senior vice-president, Brad McMullen, went out of his way to thank JAL for sticking with the company. Korean AirBoeing’s recent difficulties were reflected by a restrained presence at Farnborough. The much delayed 777-9, for example, was only represented by a mock-up of its cabin. So, Boeing will have appreciated the vote of confidence from Korean Air, which signed for 20 777-9s, 20 787-10s and options on another 10 787-10s – a reported outlay of $12.6bn (€11.5bn). Due for delivery in 2028, these will be a significant boost to Korean Air’s fleet ahead of the completion of its long-planned acquisition of Asiana Airlines.Automatic for the peopleThough autonomous aircraft will initially be small, there are companies now insisting that there’s no practical reason why airliners can’t be programmed to fly as reliably as any drone.

Strengthening Economic Resilience in ASEAN through Trade, Tourism, and Digitalization
Currency 2026-07-12 18:34

Strengthening Economic Resilience in ASEAN through Trade, Tourism, and Digitalization

The Association of Southeast Asian Nations (ASEAN), a collective of 10 member countries, is well-positioned to navigate the evolving global economic dynamics by leveraging trade, tourism, and digital advancements for sustainable growth. In today's competitive international market, countries are reassessing their supply chains to reduce vulnerabilities and are increasingly adopting protectionist policies to support local industries. Moreover, issues like climate change and the race for advanced technologies such as AI and big data are now integral to national security considerations. Within this context, ASEAN nations must work in concert to ensure economic prosperity and protect national interests, with a focus on trade, digitalization, and enhanced connectivity. Trade, particularly in services, is set to be a key driver for ASEAN's economies, which include sectors like finance, telecommunications, tourism, transportation, and professional services. These areas are vital for job creation and economic growth. Despite a slowdown in goods trade post-pandemic, service trade has shown an upward trajectory, positioning ASEAN as a net exporter of services. Tourism offers significant potential for ASEAN, emphasizing the region's attractiveness as a travel destination. To enhance competitiveness, ASEAN countries are expected to collaborate on infrastructure, skill development, marketing, and innovation to increase intra-regional travel, which represents over 40% of ASEAN's international tourism, thus bolstering regional economic resilience. The digital economy in the region, encompassing e-commerce and digital health, is expected to grow from $300 billion to nearly $1 trillion by 2030. With robust digital connectivity policies and regional cooperation, this growth could be even more substantial. The Digital Economy Framework Agreement is pivotal to this collaborative effort, covering areas such as digital standards, data flows, cybersecurity, digital trade, and the mobility of digital talent, which are all critical components of digital public infrastructure. Enhanced digital cooperation is also projected to bring about additional benefits, including positive environmental outcomes, social cost savings in the range of $12-30 billion, increased resilience, job creation, and improved access to education and healthcare services. Furthermore, both physical and institutional connectivity are crucial for ASEAN's economic competitiveness, facilitating engagement with larger Asian and global economies. There is a growing focus on sustainable infrastructure, including renewable energy, low-carbon transport, and urban energy efficiency. By integrating this with improved digital cooperation and streamlined cross-border logistics and supply chains, the movement of goods, services, and people across borders will be more efficient, environmentally friendly, and regionally resilient. The collective approach to sustainable infrastructure aligns with ASEAN members' commitment to the Paris Agreement, with Nationally Determined Contributions aiming for net-zero CO2 emissions by 2050 and net-zero greenhouse gas emissions by 2065, to limit global temperature increases to 1.5°C. It is a strategic moment for ASEAN policymakers to reconsider collaboration. Amidst global economic fragmentation, there are areas that require cross-border cooperation. Economic self-reliance is growing in the region, and with pressing issues such as digitalization and climate change, mismanaged interdependence could lead to significant costs and economic challenges. Therefore, for the upcoming term of ASEAN regional cooperation until 2045, member countries should consider their collective efforts as a regional public good, where the benefits of enhanced trade, tourism, digitalization, and connectivity will contribute to sustainable and resilient outcomes for the region's population.

**Navigating Economic Turmoil: Exploring Loan Restructuring Solutions**
Finance 2026-07-11 18:28

**Navigating Economic Turmoil: Exploring Loan Restructuring Solutions**

The pandemic-induced economic downturn has led to unforeseen financial challenges for many. With reduced incomes and increased expenses, the pressure of loan repayments has become a significant burden for numerous individuals. In light of these difficulties, the Reserve Bank of India (RBI) has introduced a loan restructuring scheme to help borrowers avoid defaulting on their loans. Let's explore the specifics of loan restructuring and its potential benefits. Deciphering Loan Restructuring Loan restructuring is a financial tool provided by banks to help borrowers prevent defaulting on their loans. It allows individuals facing financial difficulties to renegotiate the terms of their loans, making repayment more manageable. This process can be initiated by the borrower when they are unable to meet their current repayment schedules. In some cases, borrowers can work with their existing lender to modify the loan terms, or they may choose to transfer their loan to another lender through a 'balance transfer' option. Case Analysis: Applying Loan Restructuring Take the example of Rahul, who took out a personal loan of Rs. 5 lakh with a monthly EMI of Rs. 12,000, which was affordable with his steady income. However, the pandemic resulted in a 40% decrease in his salary, rendering the original EMI unaffordable. Facing the threat of loan default, Rahul utilized the RBI's restructuring program and approached his bank. After assessing his financial situation, the bank agreed to extend his loan term from 5 to 7 years, reducing his monthly EMI from Rs. 12,000 to Rs. 8,500, in line with his reduced earnings. Moreover, the bank allowed Rahul to convert a part of his loan into a separate loan with a lower interest rate, further easing his financial burden. This case demonstrates how loan restructuring can help borrowers adjust to temporary financial hardships by adjusting their repayment schedules, avoiding defaults, and protecting their credit scores. The Mechanics of Loan Restructuring Loan restructuring typically involves one or more of the following steps: Extending the Loan Term: Lengthening the repayment period results in lower monthly payments. Lowering the Interest Rate: Reducing the interest rate decreases the overall cost of the loan and the monthly EMI. Deferring Payments: Borrowers may be granted a temporary pause on payments for a specified period, providing immediate relief. Reducing the Loan Principal: In some cases, the lender may agree to reduce the total loan amount, offering further financial relief. These changes are primarily designed to improve the borrower's ability to repay the loan while also minimizing the lender's risk of non-repayment. Determining When to Pursue Loan Restructuring Loan restructuring may be a viable option if you are experiencing any of the following financial hardships: Missed payments or an inability to make timely repayments Substantial credit card debt or pending EMIs Consolidation of multiple loans leading to cash flow problems High interest rates on existing loans Job loss or loss of other income sources Overwhelming debt from various sources Procedure for Loan Restructuring If you're struggling with your loan repayments, follow these steps: Reach out to your lender: Don't wait until you've missed several payments. Engage with your lender as soon as possible to discuss your financial challenges. Review your options: Your lender will present various restructuring options based on your financial circumstances. Negotiate terms: Work with your lender to find a mutually beneficial solution. Be prepared to provide documentation that supports your financial difficulties. Formalize the agreement:

Embarking on the Journey to Financial Independence and Early Retirement (FIRE): Unlocking the Door to Liberty and Adaptability
Finance 2026-07-11 11:19

Embarking on the Journey to Financial Independence and Early Retirement (FIRE): Unlocking the Door to Liberty and Adaptability

The pursuit of Financial Independence and Early Retirement (FIRE) has gained momentum as a prevalent financial approach, particularly among younger generations like millennials and Gen Z. This movement encourages vigorous saving and investment practices to reach a state of financial autonomy and retire significantly before the conventional retirement age of 65. The aspiration is to amass sufficient assets and passive earnings to sustain a comfortable lifestyle without dependency on a regular paycheck. Though the prospect of early retirement is enticing, actualizing the FIRE philosophy necessitates stringent fiscal discipline, profound knowledge of personal finance, and dedication to enduring financial aspirations. This piece delves into the foundational tenets of FIRE, its advantages and challenges, various FIRE methodologies, and the steps you can take to integrate these principles into your financial trajectory. 1. Understanding FIRE and Its Operational Dynamics The essence of FIRE is centered on the belief that by dedicating a substantial portion of one's income to savings and investments at an early stage, it is possible to accumulate enough wealth to cover ongoing living costs without the need for conventional employment. The fundamental concept is straightforward: Financial Independence (FI): This milestone is reached when your investments, savings, and passive income can fully cover your living expenses, enabling you to rely on your assets rather than a job for income. Early Retirement (RE): Upon achieving financial independence, the objective is to retire early, which implies leaving traditional employment. However, retirement in the context of FIRE does not always equate to ceasing work entirely; for many, it signifies transitioning to more meaningful work or engaging in hobbies and passions without financial constraints. To embrace FIRE, it is imperative to save a significant portion of your income and invest it judiciously. Over time, the synergy of consistent saving and the magic of compound interest will exponentially grow your wealth, eventually reaching a point where you can live comfortably off your savings and investments. 2. The FIRE Equation: Determining Your Retirement Funds A pivotal aspect of the FIRE movement is the 4% rule—a benchmark for ascertaining the amount needed to save for early retirement. This rule is predicated on the assumption that you can annually withdraw 4% of your investment portfolio without exhausting your savings in the long run. For instance, if you aspire to live on $40,000 per annum, you would require a portfolio valued at $1 million ($40,000 ÷ 4%). Utilizing the 4% rule, you can approximate the amount of money necessary to save for financial independence. This guideline is grounded in historical market data, presupposing an average annual return of 7% from a diversified portfolio of equities and fixed-income securities. While the 4% rule serves as a useful starting point, it is crucial to account for variables such as inflation, market volatility, and lifestyle changes when planning your FIRE strategy. Here is a straightforward formula to assist you in calculating your FIRE objective: FIRE Goal = Annual Expenses × 25 For example, if you aim to live on $50,000 annually, your FIRE goal would be: 50,000 × 25 = 1,250,000 This indicates that you would need $1.25 million in investments to retire comfortably and sustainably on $50,000 per year. 3. Core Tenets of the FIRE Movement Attaining FIRE demands adherence to several foundational principles that direct financial decision-making. These principles encompass intentional saving, expense reduction, and wealth accumulation through investments. Aggressive Saving: To realize FIRE, you must allocate a significant percentage of your income to savings. Many FIRE proponents aim to save between 50% to 75% of their income. This entails living within your means, trimming non-essential expenses, and channeling as much funds as possible into savings and investments. The higher your savings rate, the more迅速ly you can achieve financial independence. Frugality and Lifestyle Optimization: FIRE is not solely about financial savings; it also involves reconfiguring your lifestyle to prioritize what truly matters. Many FIRE advocates embrace minimalism, reducing superfluous spending and focusing on experiences over material goods. Adopt

Embracing Innovation in P2P Lending: A Strategic Framework for Central Banks in Asia
Currency 2026-07-10 18:52

Embracing Innovation in P2P Lending: A Strategic Framework for Central Banks in Asia

The rapid expansion and subsequent regulatory developments of peer-to-peer (P2P) lending in China have far-reaching consequences for financial stability and the effectiveness of monetary policy. This case serves as a critical reference for economies with growing fintech sectors, highlighting the importance of a careful equilibrium between innovation encouragement and regulatory vigilance. The financial sector is central to the implementation of monetary policy across the economy. The emergence of financial technology (fintech) has significantly reshaped this sector, especially in recent years. By leveraging digitalization and big data, fintech has played a significant role in improving financial inclusion and making credit more accessible and affordable for individuals, entrepreneurs, startups, and SMEs. However, the fintech sector might intensify the migration of credit intermediation from conventional banks to non-bank entities, leading to a more intricate financial ecosystem. Consequently, fintech introduces novel risks to the financial sector, challenging central banks in achieving their goals. Within the fintech sphere, P2P lending, which allows online lending and borrowing between individuals and small businesses without the involvement of traditional financial intermediaries, has become a significant alternative financing channel. Benefiting from its digital technology prowess and a less restrictive regulatory environment, China's P2P lending sector experienced explosive growth from 2014 to 2017, emerging as a major player in the global non-bank finance landscape. The industry's volume soared from CNY252 billion in 2014 to CNY2,804 billion by 2017, accounting for nearly 30% of all new bank loans. Regulatory measures were implemented in late 2017 to address P2P-related risks within the financial system, focusing on areas such as cash loans, illegal financing, misuse of funds for student loans, investment speculation, and real estate downpayments. By 2019, P2P platforms had either transformed into small loan creditors or shut down, effectively eliminating the P2P lending market as it was known. A recent ADB Economics Working Paper examines the impact of P2P lending on monetary policy transmission in China, using a state-dependent local projection model. The study's findings reveal that the reactions of industrial output and inflation to monetary policy tightening are more pronounced and statistically significant in non-boom P2P lending markets compared to boom markets, where responses are largely insignificant. Specifically, inflation's response peaks at 0.8% following an unexpected 100 basis point monetary policy tightening in the non-boom phase, in contrast to 0.6% in the baseline scenario. Industrial production also experiences a significant decline in the non-boom phase, particularly in the initial periods. During the boom phase of P2P lending, inflation's negative response only becomes statistically significant after 10 months, and industrial production responses are muted, not significantly deviating from zero for most time frames. The research suggests that the evolution of P2P finance could negatively affect the effectiveness of monetary policy transmission. As P2P lending serves as an alternative external financing source, market participants are less impacted by the rising costs of bank credit, reducing the impact of contractionary monetary policy. While regulatory measures in China have helped to reduce financial risks associated with P2P lending, they may also have enhanced the effectiveness of traditional monetary policy transmission. This analysis offers important insights for other economies with growing P2P lending markets, especially in developing nations such as India, Indonesia, Malaysia, the Republic of Korea, the Philippines, and Vietnam. Central banks in these regions must be cautious about the potential impact on monetary policy effectiveness and financial stability. Looking ahead, central banks and financial regulators must navigate a landscape that fosters the benefits of ongoing financial system innovation. The challenge is to strike a balance between innovation and ensuring effective monetary policy transmission while mitigating financial stability risks.

Optimize Your Yearly Bonus: Smart Financial Strategies
Finance 2026-07-10 18:02

Optimize Your Yearly Bonus: Smart Financial Strategies

As you look forward to receiving your year-end bonus, consider the most effective ways to put this extra income to work. In 2023, the average bonus was $2,447, a significant sum that can boost your financial well-being in the coming year. Before you hastily decide to spend it, here are some astute tactics for allocating your bonus to improve your financial standing and prepare for future financial needs. 1. Settle high-interest debts Carrying high-interest debt can be a significant financial burden, especially in an environment of rising interest rates. Using your bonus to pay down high-interest debt, such as credit card balances, is a wise decision. This can reduce the overall cost of your debt and lead to substantial interest savings in the long run. For instance, if you have a credit card balance of $2,000 with an APR of 20%, applying your bonus to this debt will lower your monthly payments and interest charges, helping you to get out of debt faster and save money in the long term. 2. Invest in a high-yield savings account If you're unsure about how to use your bonus right away, consider saving it in a high-yield savings account. This approach will let your money grow while you plan your next financial moves. Look for accounts offering competitive interest rates (around 4% APY or higher) to ensure that your bonus earns more than it would in a regular savings account. 3. Build or increase your emergency fund An emergency fund is essential for dealing with unexpected expenses like car repairs or medical costs. If you don't have one or need to increase it, your bonus could be the perfect opportunity to start or enhance your savings. Aim to save enough to cover three to six months of living expenses. 4. Strengthen your retirement savings Contributing to your long-term financial security is one of the most valuable uses of your bonus. Adding to retirement savings accounts like a 401(k) or IRA can decrease your taxable income and assist in retirement planning. For 2024, you can contribute up to $23,000 to a 401(k), with higher limits for those over 50. Directing a portion of your bonus to these accounts can maximize your tax benefits. 5. Treat yourself, responsibly While being financially responsible is important, it's also okay to reward yourself after a year of hard work. Think about setting aside a portion of your bonus for something enjoyable or satisfying. A balanced approach—dividing the bonus between savings and self-reward—can keep you motivated while staying on track with your financial goals.

The Impact of Psychological Factors on Personal Finance: How Biases Influence Economic Choices
Finance 2026-07-09 18:50

The Impact of Psychological Factors on Personal Finance: How Biases Influence Economic Choices

While personal finance might seem like a purely mathematical and logical domain, it is, in fact, significantly impacted by psychological factors and human behavior. Many economic decisions are not driven by rational analysis but are instead influenced by emotions, biases, and cognitive tendencies. Gaining insight into the psychological aspects of personal finance can assist individuals in making more informed and deliberate financial choices, which can result in improved financial health. This article delves into the behavioral biases that impact financial decisions, their manifestations in daily life, and tactics for overcoming them. 1. Emotional Influences on Financial Choices Emotions like fear, greed, and overconfidence greatly affect financial decision-making. These emotions frequently override logical thinking and can result in suboptimal financial choices. For instance, during a market downturn, fear might lead individuals to sell their investments at a loss in a panic, whereas during a bull market, greed could encourage individuals to take on excessive risk. Fear and Aversion to Loss: There is a tendency for individuals to dread losses more than they appreciate gains, a concept known as "loss aversion." This can deter people from taking necessary financial risks or lead them to cling to failing investments, hoping for a recovery, which often exacerbates their losses. Greed and Excessive Confidence: In a rising market, the desire for greater gains can obscure judgment. Individuals might overestimate their predictive abilities regarding market trends, leading to speculative investments or the accumulation of unsustainable debt levels. 2. Cognitive Biases in Economic Decision-Making Cognitive biases are mental shortcuts or thought patterns that can result in consistent errors in judgment. In personal finance, these biases often skew our perception of risk, reward, and timing, prompting irrational decisions. Anchoring Bias: This bias happens when individuals place too much weight on the initial information they receive, such as a stock's initial price or past investment returns. For example, an investor who bought a stock at a high price might irrationally cling to that price, waiting for it to return to that level before selling, even if market conditions have significantly changed. Confirmation Bias: This bias causes individuals to seek information that confirms their pre-existing beliefs while disregarding contradictory evidence. In finance, this could mean only engaging with financial news that aligns with one's market perspective or only following advisors who support their investment strategies. Availability Bias: People are prone to overestimating the likelihood of events based on how readily examples come to mind. For instance, after hearing about a friend's significant profit in the stock market, an individual might be more likely to take on excessive risks, overestimating their likelihood of success. Mental Accounting: This bias occurs when individuals categorize money into different "mental accounts" and treat it differently based on its source or purpose. For example, someone might be more willing to spend a tax refund frivolously but be more conservative with their regular income, even though the money is essentially the same. 3. The Endowment Effect: Overvaluing Our Possessions The endowment effect is the inclination for individuals to place a higher value on items they own simply because they possess them. This bias can result in poor financial decision-making, especially concerning investments or material possessions. Overvaluing Assets: Investors might retain underperforming assets because they overvalue them, believing they are worth more than the market indicates. This can lead to missed opportunities for reinvestment or diversification. Aversion to Selling: Similarly, homeowners might overvalue their property, refusing to sell at a fair market price due to emotional attachment, even though selling could benefit their financial future. 4. Present Bias: Favoring Immediate Rewards One of the most pervasive biases in personal finance is the present bias, which is the inclination to prioritize immediate rewards over future benefits. This bias leads individuals to make decisions that provide instant gratification at the expense of long-term financial health. Spending vs. Saving: The present bias often results in excessive spending and a disregard for saving

Digital Currency vs. Cash: A Comparative Analysis
Currency 2026-07-09 11:13

Digital Currency vs. Cash: A Comparative Analysis

The influence of cutting-edge technology on payment methods extends beyond mere modification; it has ushered in a complete paradigm shift. The Official Monetary and Financial Institutions Forum (OMFIF) has conducted an in-depth review of future payment methods. The widespread ownership of mobile phones and the advancements in telecommunications technology are crucial drivers of the digital economy. Retail and private enterprises are experiencing a burgeoning need for real-time settlement capabilities and low-cost payment solutions. Consumers increasingly value the ability to transfer funds instantly, around the clock. During the COVID-19 pandemic, considerations of public health underscored the efficiency, convenience, universal accessibility, and safety of digital transactions, thereby reducing dependency on cash. Despite these advancements, OMFIF's report, titled "Digital Currency: The Problem of Trust," indicates that cash remains the most favored payment method globally, both in developed and emerging economies. Respondents generally perceive that cash performs optimally across five key dimensions: security, privacy, ease of use, speed, and acceptability. Following cash, credit and debit cards are viewed favorably. Core Attributes and Consumer Preferences When survey participants were questioned about the most desirable features of payment methods, security emerged as the paramount concern across all demographics. Conversely, the speed of transactions was deemed the least critical feature. Digital currencies scored poorly on security aspects while excelling in transaction speed. This discrepancy suggests that for digital currencies to gain widespread acceptance, significant enhancements in security measures are imperative. Security vs. Speed: The Trade-Off The disparity in the perception of security and speed between traditional cash and digital currencies can be attributed to several factors. Traditional cash transactions are tangible and straightforward, offering a sense of security and control to users. In contrast, digital currencies, while offering rapid transaction times and increased efficiency, face challenges related to cybersecurity, fraud prevention, and regulatory oversight. The decentralization inherent in digital currencies further complicates the implementation of robust security protocols. The Future Landscape of Payment Methods The future of payment methods will likely involve a hybrid approach, integrating the strengths of both digital and traditional cash transactions. Enhancements in blockchain technology, cryptographic security, and regulatory frameworks will play pivotal roles in bolstering the security and reliability of digital currencies. As these improvements materialize, digital currencies may begin to rival traditional cash in terms of security, thereby gaining greater acceptance among consumers and businesses alike. In summary, while digital currencies offer unparalleled speed and efficiency, their widespread adoption is contingent upon addressing significant security concerns. Traditional cash remains a steadfastly trusted medium due to its perceived security, privacy, and ease of use. Future advancements in technology and regulatory measures will be crucial in bridging the gap between digital and traditional payment methods, fostering a more integrated and secure financial ecosystem.

Millennial Wealth Management: A Blueprint for Financial Success
Finance 2026-07-08 11:05

Millennial Wealth Management: A Blueprint for Financial Success

Millennials, those born between 1981 and 1996, are navigating their peak earning years amidst economic fluctuations, escalating costs, and unpredictable global markets. Despite these adversities, millennials have the potential to secure their financial future through strategic financial management. This article explores pivotal financial strategies tailored for millennials, steering them through the current economic terrain to chart a course for future prosperity. 1. Economic Challenges and Opportunities for Millennials Millennials face unique financial challenges, such as entering the job market post-2008 financial crisis, high housing costs, student loan burdens, and stagnant wages relative to inflation. Many are struggling with insufficient retirement savings, substantial credit card debt, and a lack of emergency funds, as indicated by surveys. However, millennials also have access to a wealth of financial education, technology, and online resources. Budgeting apps, investment platforms, and financial blogs have made personal finance management more accessible. Millennials often value sustainability and ethical investing, which can influence their financial decisions. Despite these hurdles, millennials are well-positioned to accumulate wealth and achieve financial independence if they embrace prudent financial strategies early in their careers. 2. Setting Financial Goals: Short-Term and Long-Term Strategies Establishing financial goals is crucial for any comprehensive financial plan. Millennials should start by identifying their financial objectives, both short-term and long-term. These objectives will inform financial decisions and ensure resources are allocated efficiently. Short-Term Goals: These are objectives that can be achieved within a few months to a few years, such as paying off credit card debt, building an emergency fund, or saving for a vacation or significant purchase. These goals are more immediate and offer a sense of accomplishment and motivation. Long-Term Goals: These objectives are usually linked to major life events, such as buying a home, saving for retirement, or funding education. These require consistent effort and discipline. Millennials should prioritize retirement savings, even if it seems far off. The earlier you start, the more your savings can grow over time. The SMART approach to goal-setting is recommended—goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. This ensures that your financial goals are clear, realistic, and aligned with your long-term vision. 3. Building a Financial Foundation: Budgeting and Savings Before venturing into investment strategies, it's essential to have a solid financial foundation. For millennials, this involves creating a budget and focusing on savings. Budgeting: A budget is vital for any effective financial plan. It helps track income and expenses, prevent overspending, and identify areas for savings. Various methods exist, such as the 50/30/20 Rule or the Zero-Based Budget. Tools like Mint, YNAB, and Personal Capital can assist in managing finances and adhering to a budget. Emergency Fund: Life's uncertainties necessitate a financial cushion. The general rule is to save three to six months of living expenses in an accessible savings account. This fund is for emergencies, providing peace of mind and reducing reliance on credit or loans. Savings for Short-Term Goals: Beyond the emergency fund, prioritize savings for short-term goals, such as vacations or vehicle purchases. High-yield savings accounts, money market accounts, or CDs can help grow savings with minimal risk. 4. Tackling Debt: Managing Student Loans, Credit Cards, and Other Financial Obligations Debt is a pervasive financial issue for millennials, with student loans, credit card debt, and auto loans being common stressors. Managing and reducing debt is essential for financial health and freeing up funds for savings and investments. Student

Adopting the FIRE Philosophy: Journeying Towards Financial Freedom and Early Retirement
Finance 2026-07-08 18:44

Adopting the FIRE Philosophy: Journeying Towards Financial Freedom and Early Retirement

The FIRE philosophy, which stands for Financial Independence, Retire Early, has become increasingly popular in recent years. It's not just about retiring young; it's about liberating yourself to live life on your own terms—whether that means retiring early or working less to pursue other passions. The FIRE movement appeals to those who want to take control of their financial destiny, escape the traditional 9-to-5, and secure their financial future outside the confines of conventional retirement plans. In this article, we explore the principles of FIRE, strategies for achieving financial independence, and steps you can take to retire early or gain financial freedom. 1. Grasping the FIRE Philosophy The FIRE philosophy centers on the idea of aggressively saving and investing to accumulate enough wealth to live independently of a regular job. This independence means having sufficient assets to sustain your lifestyle without relying on a salary. While early retirement is a common goal, the core of FIRE is about financial autonomy—the ability to choose whether to work or not. The FIRE philosophy is characterized by these key principles: High Savings Rate: FIRE typically involves saving a large portion of your income—often 50% or more. This rate is significantly higher than the average American savings rate, which is often less than 10%. Simplifying Expenses: Those who follow FIRE often lead a minimalist lifestyle, cutting costs wherever possible. This might include downsizing their living space, avoiding non-essential luxuries, and prioritizing long-term financial goals over short-term indulgences. Investment Strategy: The heart of FIRE is investing in assets that grow over time, such as stocks, bonds, and real estate. By consistently investing in cost-effective index funds or other wealth-building investments, FIRE followers aim to create wealth that generates enough passive income to cover their living expenses. 2. The Financial Independence Formula Achieving FIRE largely involves determining the amount of money needed for financial autonomy and then working backward from that figure. The formula for calculating the funds required for financial independence is straightforward: The 25x Rule: A common guideline in FIRE is the 25x rule. It suggests that to become financially independent, you should save and invest 25 times your annual living expenses. For example, if your annual expenses are $40,000, you would need $1,000,000 in investments to generate enough passive income to cover those expenses. This rule is based on the assumption that you can safely withdraw 4% of your savings annually without depleting your principal. Required Savings=Annual Expenses×25\text{Required Savings} = \text{Annual Expenses} \times 25Required Savings=Annual Expenses×25 The 4% Rule: The 4% rule is a standard suggesting that you can withdraw 4% of your total investments each year and still maintain your funds throughout retirement. This withdrawal rate is designed to account for inflation and market fluctuations while ensuring the sustainability of your investment portfolio. While the 4% rule is central to most FIRE strategies, it's important to recognize that market conditions and individual spending habits can affect the success of this approach. 3. Tactics for Embracing FIRE Attaining FIRE requires a combination of strategies that maximize savings and investments while minimizing unnecessary spending. Here are the main tactics to consider: Income Maximization: The more income you can earn, the faster you can achieve FIRE. Look for opportunities to increase your income, whether through salary negotiations, seeking higher-paying jobs, starting a side hustle, or investing in education and skill development to boost your earning potential. Cost Reduction: One of the most effective ways to speed up your path to financial independence is to cut back on non-essential spending. By living within or below your means, you can allocate a larger portion of your income to savings and direct it towards your financial goals. Common

Redefining Progress: AI's Role in Fostering Ecological Economies
Currency 2026-07-07 11:57

Redefining Progress: AI's Role in Fostering Ecological Economies

Faced with the intertwined challenges of climate change, loss of biodiversity, and resource scarcity, there is an increasing need to rethink our economic frameworks to prioritize ecological sustainability. Artificial Intelligence presents a novel avenue for reevaluating resource management and aligning economic endeavors with environmental goals. Historically, global economic strategies have been dominated by the pursuit of GDP expansion, often to the detriment of environmental and societal health. This relentless focus on growth has led to the overuse of natural resources, deforestation, ocean depletion, and has significantly contributed to climate change. The crux of these issues lies in the flawed assumption that economic expansion can proceed indefinitely without encountering ecological constraints. Economic practices frequently disregard environmental costs, treating them as peripheral rather than integral to the equation. A prime example is conventional agriculture, which has long focused on maximizing short-term yields through the extensive use of chemical fertilizers and single-crop farming. While this approach increases immediate productivity, it results in soil erosion, water scarcity, and a decline in biodiversity, jeopardizing the long-term viability of food systems. Artificial Intelligence has the capacity to disrupt these obsolete paradigms by facilitating the shift towards circular and regenerative economies. Contrasting with the traditional "take, make, dispose" linear economy, a circular economy aims to minimize waste by reusing and recycling resources. AI can play a pivotal role in streamlining these processes, enhancing supply chain efficiency, prolonging product life cycles, and curbing waste. Imagine AI-driven algorithms that process vast datasets to optimize supply chain logistics, thereby reducing waste and inefficiencies. In the manufacturing sector, AI can assist in the creation of products that are more amenable to repair, reuse, or recycling, adhering to circular economy principles. This transformation not only diminishes the environmental impact but also decreases costs, providing economic motivation for businesses to embrace more sustainable practices. In agriculture, AI can transform practices through precision farming, empowering farmers to make informed decisions about crop and resource management. AI systems can offer real-time insights into soil conditions, weather patterns, and crop requirements, enabling more efficient use of water and fertilizers and reducing environmental impact. Precision farming optimizes resource allocation, directing inputs precisely where they are needed, thus enhancing food security, preserving natural habitats, and bolstering resilience to climate change. AI's potential extends to direct environmental conservation. For instance, AI-powered wind farms can detect the passage of migratory birds and temporarily halt operations to prevent collisions. Such innovations demonstrate AI's capacity to harmonize human activities with nature, promoting renewable energy objectives and biodiversity conservation. AI can also revolutionize reforestation and ecosystem restoration. Autonomous drones equipped with AI can plant trees in deforested regions, monitor their growth, and even identify and counter threats like wildfires or illegal logging. These initiatives are vital for carbon sequestration, biodiversity restoration, and ecosystem health. Leveraging AI to boost the efficiency and effectiveness of reforestation can significantly counteract the damage caused by years of environmental neglect. AI should be utilized to foster systemic changes that align economic activities with ecological boundaries. For example, AI can streamline the integration of renewable energy into national grids, balance energy demand with greater accuracy, and minimize waste. By harnessing predictive analytics, AI ensures that renewable energy is available at the right times and places, facilitating a smooth transition to a low-carbon economy. As we steer through the AI revolution, we act as stewards of highly intelligent toddlers—curious, rapidly evolving, and absorbing information at an unmatched pace. Like young children, these AI systems will develop based on the values, knowledge, and principles we instill in them now. If we nourish them with the right data—balanced, ethical, and rooted in the principles of sustainability and equity—they can evolve into formidable allies for a sustainable future. The decisions we make today will resonate for generations, determining whether AI becomes a force for good that nurtures the delicate equilibrium of our natural world.

Asia-Pacific Economies Face Challenges Amidst Growth Projections
Currency 2026-07-07 18:34

Asia-Pacific Economies Face Challenges Amidst Growth Projections

The Asian Development Bank's July 2024 Asian Development Outlook report forecasts that developing economies in Asia and the Pacific are likely to experience growth through 2024 and 2025, with a slowdown in inflation. However, several factors could disrupt this positive outlook, including uncertainties surrounding the U.S. election, geopolitical tensions, vulnerabilities in China's property market, and extreme weather events. Potential disruptions such as an escalation in the conflict in Ukraine and the Middle East could strain global supply chains and drive up oil prices. Other concerns include the fragility of China's property sector and the impact of adverse weather conditions. The unpredictability of the U.S. election results also adds to the uncertainty. Conflict in the Red Sea, particularly affecting Europe-Asia shipping routes since late 2023, has led to increased shipping costs. These higher costs could contribute to inflationary pressures. Despite longer shipping times, significant shortages have not yet occurred due to sufficient stock levels and low demand. However, this situation could change if conditions deteriorate. In mid-April 2024, Middle East-related events caused oil price volatility. Although various factors have kept crude oil prices below $100 per barrel, any conflict escalation involving major oil producers could lead to a surge in energy prices. Regarding U.S. monetary policy, the Federal Reserve is anticipated to lower interest rates in 2024, but there is still uncertainty. A surprising rise in U.S. inflation in March led to a prolonged period of higher interest rates, despite prices rising more slowly in later months. ADB analysis suggests that if interest rates remain constant throughout 2024, it could result in a devaluation of Asian currencies, which have already seen depreciation in several regional economies. While currency devaluation might lead to some imported inflation, it could also enhance export competitiveness and support growth. However, the effects of both are expected to be minimal. For instance, inflation in high-income technology exporters and other developing Asian economies could increase by approximately 0.15 percentage points compared to the baseline for 2024 and 2025, with the impact diminishing by 2026. The effect on regional growth would be less pronounced than on inflation. Another risk is the stress in China's property market. A more severe deterioration than anticipated could suppress consumer sentiment and domestic demand, negatively affecting industries like construction and real estate, and reducing overall economic activity. Decreased consumption and investment could also reduce global trade, impacting export-dependent economies. The fallout might be contained with appropriate government policy responses, primarily affecting China. However, if the property market downturn extends longer than expected, it could pose a threat to growth prospects, increasing global risk aversion, capital flight, and negatively impacting other Asia-Pacific economies as financial conditions tighten. Worse-than-expected weather conditions are also a risk, potentially increasing commodity prices and endangering food security. However, La Niña, expected to begin later this year, may bring some relief with cooler temperatures and increased rainfall in areas like Southeast Asia, aiding crop production. Policymakers must remain vigilant against these risks and foster resilience to external shocks, including through strengthening trade, cross-border investment, and commodity supply networks. This can help mitigate the effects of impaired global supply chains, which could result from heightened geopolitical tensions or worsening weather conditions. Chinese policymakers have implemented various policies to stabilize the property market, including support for affordable housing, improved financial access, and continued accommodative monetary and fiscal policies. There is always scope for additional and more targeted measures. Central banks in Asia and the Pacific should continue to exercise caution due to U.S. monetary policy uncertainty. Although interest rate hikes have ended in many regional economies, monetary policy remains tight as central banks address domestic price pressures. Governments must also maintain prudent fiscal management, especially considering constrained fiscal space and high interest rates.

Strategic Financial Management for the Millennial Age: Crafting a Path to Prosperity
Finance 2026-07-06 11:45

Strategic Financial Management for the Millennial Age: Crafting a Path to Prosperity

Millennials, individuals born between 1981 and 1996, are currently in their prime earning years, facing economic shifts, increasing expenses, and global market volatility. Despite these challenges, millennials have the opportunity to secure their financial future through prudent financial planning. This article delves into key financial strategies for millennials, guiding them through today's economic landscape to set a course for future financial well-being. 1. Economic Realities for Millennials Millennials confront financial hurdles not seen by earlier generations, including entering the workforce post-2008 financial crisis, soaring housing prices, student loans, and wages that haven't kept pace with inflation. Surveys indicate that many millennials grapple with inadequate retirement savings, significant credit card debt, and a lack of emergency funds. On a positive note, millennials have access to extensive financial education, technology, and online resources. Tools such as budgeting apps, investment platforms, and financial blogs have simplified personal finance management. Additionally, millennials often prioritize values like sustainability and ethical investing, which can shape their financial strategies. Despite these obstacles, millennials are poised to accumulate wealth and achieve financial autonomy if they adopt sound financial strategies early in their professional lives. 2. Establishing Financial Objectives: Short-Term and Long-Term Strategies Goal-setting is fundamental to any robust financial plan. Millennials should begin by defining their financial objectives, both immediate and extended-term. These objectives will guide financial decisions and ensure resources are allocated effectively. Short-Term Objectives: These are goals achievable within a few months to a few years, such as clearing credit card debt, establishing an emergency fund, or saving for a vacation or significant purchase. These goals are more immediate and provide a sense of achievement and motivation. Long-Term Objectives: These goals are typically associated with significant life events, such as purchasing a home, retirement savings, or funding education. These require consistent effort and discipline. Millennials should prioritize retirement savings, even though it may seem distant. The sooner you start, the more your savings can accumulate over time. The SMART approach to goal-setting is recommended—goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. This ensures that your financial goals are clear, realistic, and in line with your future vision. 3. Constructing a Financial Foundation: Budgeting and Savings Before engaging in investment strategies, it's crucial to have a strong financial base. For millennials, this involves creating a budget and focusing on savings. Budgeting: A budget is essential for any effective financial plan. It helps track income and expenses, prevent overspending, and identify areas for savings. Various methods exist, such as the 50/30/20 Rule or the Zero-Based Budget. Tools like Mint, YNAB, and Personal Capital can assist in managing finances and adhering to a budget. Emergency Fund: Uncertainties in life require a financial buffer. The general rule is to save three to six months of living expenses in an accessible savings account. This fund is for emergencies, providing peace of mind and reducing reliance on credit or loans. Savings for Short-Term Goals: Beyond the emergency fund, prioritize savings for short-term goals, such as vacations or vehicle purchases. High-yield savings accounts, money market accounts, or CDs can help grow savings with minimal risk. 4. Addressing Debt: Navigating Student Loans, Credit Cards, and Other Financial Obligations Debt is a prevalent financial issue for millennials, with student loans, credit card debt, and auto loans being common stressors. Managing and reducing debt is essential for financial health and freeing up funds for savings and investments. Student

Future proofing the real estate sector: We hear from 10 industry professionals
Business 2026-07-06 11:31

Future proofing the real estate sector: We hear from 10 industry professionals

1.“The focus for 2024 must be a robust drive toward net zero, as well as addressing the urban affordability crisis. To tackle these challenges, there’s a critical need for the industry to unite – architects, planners, developers and other stakeholders must come together to form a cohesive, visionary voice. There are bright spots: we can see groups of pioneers bringing forward transformative ideas while technological advancements, particularly in property technology, offer significant potential to revolutionise our industry.”Coen van OostromFounder and CEO, Edge, The Netherlands2.“Issues in 2024 include a severe shortage of skilled construction workers and concerns over carbon taxes and environmental protection. Addressing these challenges involves designing for waste reduction, enhancing construction methods such as prefabrication, investing in education and prioritising the use of local materials. Sustainable and eco-friendly materials are gaining maturity, while local architectural styles are being increasingly valued.”Aaron LeeDeputy chairman, JUT Land, Taiwan3.“The buzzword for property developers and agents is ‘housing’. The rise in interest rates and the weak rental market have contributed to housing becoming one of the biggest challenges for Portuguese politicians, who have created two legislative packages called Mais Habitação [More Housing] and Simplex Urbanistico [Urban Simplex] with measures designed to increase supply.”Sofia Rodrigues NunesCo-head of Real Estate, Gómez-Acebo & Pombo, Portugal4.“Initiatives in schools can help to showcase our industry, along with large-scale efforts to engage young people through employability programmes, mentoring and paid work experience.”Andrea Carpenter Director, Diversity Talks Real Estate, UK5.“I see a massive commercial opportunity in investing in buildings that are at risk of being stranded assets from a sustainability perspective and making them more environmentally friendly. This means identifying how you can reposition a building to have a measurable positive impact.”Alexander BentCo-founder, Undivided Ventures, Hong Kong6.“Preparation is the key word for this year: paperwork, licensing and assembling land for new projects. The continued strength of the office market in Ho Chi Minh City is a major bright spot in southeast Asia.”Philip CluerCOO, Refico, Vietnam7.“Intelligent concepts and customised solutions are in demand: watch out for subsidised projects and neighbourhood developments, such as multi-generational housing, based on environmental, social and corporate governance criteria. Commercial development is on the up. Companies are reorganising to shorten value-creation routes, giving the sector a positive boost.”Michael KörnerManaging Director, Invest Region Leipzig, Germany8.“As well as sustainability, we should focus on affordability and creating ways to integrate better into the community fabric of a city. The industry needs to get used to having its asset use change quickly. It still thinks in long-term trends that don’t reflect changing customer behaviour. We need, for instance, to look at the way digital media has freed up how customers consume their product; people lead more mobile, fractional lives and our homes also need to be able to adapt. On the bright side, consensus is forming about CO2 standards in construction.”Claus Mathisen CEO, Urban Planners, Denmark9.“There will be many players who will breach loans and be in self-preservation mode. For others, assets will be repriced and they’ll find wonderful opportunities to invest. The real-estate industry is facing a mountain of challenges, from building safety issues to office vacancy and valuation crunches because of the interest-rate environment. Sectors such as housing, hospitality, studios and data centres, where owners know how to operate assets, will continue to do well.”Ryan PrinceVice-chairman, Realstar Group, Canada10.“There’s a new reality and this must be acknowledged, addressed, managed and celebrated. The world has changed, and so we must address our previous assumptions. People are social creatures and have both a need and a desire to engage, experience, interact and have a community. This is an essential element to design and development that spans across all sectors of real estate.”Hanna StrueverOwner, Retail Portfolio Solutions, USA

Beyond Growth: How AI Can Reshape Economies for Ecological Sustainability
Currency 2026-07-05 18:44

Beyond Growth: How AI Can Reshape Economies for Ecological Sustainability

Amid converging crises of climate change, biodiversity loss, and resource depletion, the urgency of reimagining our economic systems has never been greater. Artificial Intelligence offers a unique opportunity to rethink how we manage resources and align economic activities with environmental sustainability. For decades, global economic policy has been driven by the relentless pursuit of GDP growth, often at the expense of environmental and social well-being. This growth-centric model has spurred overexploitation of natural resources, driven deforestation, depleted oceans, and contributed significantly to global climate change. These issues underscore a fundamental flaw: the assumption that economic growth can continue indefinitely without hitting ecological limits.  Economic activities frequently externalize environmental costs, treating them as side effects rather than central concerns. For instance, standard agricultural practice has long prioritized short-term yield maximization, relying heavily on chemical fertilizers and monoculture cropping. While this boosts immediate output, it leads to soil degradation, water depletion, and loss of biodiversity, ultimately threatening the long-term sustainability of food production and security. Artificial Intelligence has the potential to disrupt these outdated models by supporting the transition to circular and regenerative economies. Unlike the traditional linear model of “take, make, dispose,” a circular economy seeks to minimize waste by reusing and recycling resources. AI can play a critical role in optimizing these processes—enhancing supply chains, extending product lifecycles, and reducing waste.  Imagine AI algorithms that analyze vast amounts of data to optimize supply chain logistics, reducing waste and inefficiencies. In manufacturing, AI can aid in designing products that are easier to repair, reuse, or recycle, aligning with circular economy principles. This shift not only lowers the environmental footprint but also reduces costs, providing economic incentives for businesses to adopt more sustainable practices. In agriculture,  AI can revolutionize practices through precision farming, which allows farmers to make data-driven decisions about how to manage their crops and resources. AI systems can provide real-time information on soil conditions, weather patterns, and crop needs, enabling farmers to use water and fertilizers more efficiently and reduce their environmental impact. Precision farming optimizes resource usage, directing them exactly where required, thereby bolstering food security, safeguarding natural habitats, and strengthening resilience against climate change. AI’s potential extends beyond industrial efficiency to direct environmental protection. An inspiring example is the use of AI-powered wind farms that can detect when migratory birds are passing through and temporarily shut down turbines to prevent collisions. Such innovations highlight how AI can be a force for harmonizing human activities with the natural world, advancing both renewable energy goals and biodiversity conservation. AI can also be a game-changer in reforestation and ecosystem restoration. Autonomous drones equipped with AI can plant trees in deforested areas, monitor their growth, and even identify and respond to threats such as wildfires or illegal logging. These efforts are crucial for carbon sequestration, biodiversity recovery, and the overall health of ecosystems.  Using AI to enhance the efficiency and effectiveness of reforestation can make significant strides in reversing some of the damage caused by decades of environmental neglect. AI should be deployed to support systemic changes that align economic activities with ecological limits. Take, for example, how AI can streamline the incorporation of renewable energy into national grids, balance energy demand with greater precision, and minimize waste. Harnessing predictive analytics, AI guarantees that renewable energy is accessible at the right moments and places, facilitating a seamless shift to a low-carbon economy. As we navigate the AI revolution, we are like guardians of highly intelligent toddlers—curious, rapidly growing, and absorbing information at an unprecedented rate. Just like young children, these AI systems will mature based on the values, knowledge, and principles we instill in them today. If we feed them the right data—balanced, ethical, and grounded in the principles of sustainability and equity—they can grow into powerful allies for a sustainable future. The choices we make now will echo for generations to come, determining if AI becomes a force for good that nurtures the delicate balance of our natural world.

Embracing the FIRE Movement: The Path to Financial Autonomy and Early Retirement
Finance 2026-07-05 18:24

Embracing the FIRE Movement: The Path to Financial Autonomy and Early Retirement

The concept of financial independence and early retirement, commonly known as the FIRE movement, has gained significant traction in recent times. It's about more than just retiring at an early age; it's about gaining the liberty to shape your life according to your preferences—be it retiring early or having the option to work less and chase other ambitions. The FIRE movement resonates with individuals who aim to command their financial future, break free from the conventional 9-to-5 routine, and ensure their future financial security without depending on traditional retirement timelines. In this piece, we delve into the tenets of the FIRE movement, the tactics to achieve financial autonomy, and the actions you can initiate to retire early or secure financial liberty. 1. Understanding the FIRE Movement FIRE is an acronym for Financial Independence, Retire Early. This movement revolves around the notion of saving and investing aggressively to amass sufficient wealth to attain financial autonomy. This autonomy implies possessing enough assets to maintain your lifestyle without being dependent on regular employment for income. While early retirement is a goal for many in the FIRE community, the essence of the movement lies in financial independence—the power to opt to work or not. The FIRE movement is defined by the following principles: Aggressive Savings: A significant portion of your income—often 50% or more—is required for savings in FIRE. This rate far exceeds the average American savings rate, which frequently falls below 10%. Economical Living: FIRE adherents often adopt a minimalist lifestyle, trimming costs wherever possible. This can involve scaling down their living spaces, forgoing non-essential luxuries, and favoring long-term financial aspirations over immediate pleasures. Strategic Investing: The core of FIRE is investing in assets that appreciate over time, such as equities, fixed-income securities, and real estate. By persistently investing in cost-effective index funds or other wealth-accumulating investments, FIRE advocates seek to create wealth that will ultimately generate sufficient passive income to cover their living costs. 2. The Financial Independence Equation Attaining FIRE largely involves calculating the amount of money necessary for financial autonomy and then working in reverse from that figure. The equation for determining the funds needed to achieve financial independence is straightforward: The 25x Rule: A prevalent guideline in the FIRE community is the 25x rule. It posits that to achieve financial independence, you should save and invest 25 times your yearly living expenses. For instance, if your annual expenses amount to $40,000, you would require $1,000,000 in investments to produce enough passive income to cover those expenses. This rule is predicated on the belief that you can safely withdraw 4% of your savings annually without eroding your principal. Required Savings=Annual Expenses×25\text{Required Savings} = \text{Annual Expenses} \times 25Required Savings=Annual Expenses×25 The 4% Rule: The 4% rule is a benchmark suggesting that you can withdraw 4% of your total investments each year and still maintain your funds throughout retirement. This withdrawal rate is intended to factor in inflation and market volatility while ensuring the sustainability of your investment portfolio. While the 4% rule is fundamental to most FIRE strategies, it's crucial to acknowledge that market conditions and individual spending patterns can impact the effectiveness of this method. 3. Strategies for Embracing FIRE Achieving FIRE necessitates a blend of strategies that maximize savings and investments while reducing unnecessary expenditures. Here are the principal strategies to contemplate: Boosting Income: The more income you can generate, the quicker you can reach FIRE. Explore opportunities to increase your income, whether through salary negotiations, seeking higher-paying employment, launching a side business, or investing in skills enhancement and education to boost your earning capacity. Cutting Back on Costs: One of the most potent methods to expedite your journey to financial autonomy is to reduce non-essential spending. By living within or below your means, you can allocate a substantial portion of your income to savings and direct it toward your financial objectives. Common

Setting Sail Towards Economic Self-Sufficiency: A Comprehensive Five-Step Framework
Finance 2026-07-04 18:54

Setting Sail Towards Economic Self-Sufficiency: A Comprehensive Five-Step Framework

In today's volatile world, the aspiration for financial autonomy has emerged as a highly sought-after objective for numerous individuals. It is the cornerstone for achieving personal aspirations, be it purchasing a home, enjoying a tranquil retirement, or leading a life free from financial stress. While the route to financial stability might seem complex, it can be simplified with a well-thought-out approach. This article presents a five-step guide to help you navigate towards lasting financial safety. Step 1: Define Your Financial Aspirations Clarity in your financial direction is essential for financial achievement. Start by mapping out your financial aims for the immediate, intermediate, and distant future. These could include creating an emergency fund, saving for education, investing in property, or securing a stress-free retirement. Specify each goal with precise timeframes and monetary targets. This clarity will act as your compass, assisting you in focusing your efforts and allocating resources effectively. Step 2: Track Your Expenditures, Create a Budget, and Stick to It A well-crafted budget is crucial for managing your financial voyage. Begin by tracking your income and categorizing your expenses into fixed (e.g., housing, utilities, loans) and variable costs (e.g., food, entertainment). Pinpoint areas where you can cut back on non-essential spending and redirect those funds towards your financial goals. Formulate a realistic budget that allocates funds for essentials, savings, debt repayment, and investments. Maintain flexibility to adjust your budget with life's changes, but remain disciplined. Consistency is key—resist impulsive purchases and keep your financial goals in view. Step 3: Establish an Emergency Reserve The unpredictability of life can derail financial plans, making a robust emergency fund essential. Aim to save enough to cover three to six months of living expenses in an accessible account or liquid investment. This fund acts as a financial cushion, covering unforeseen expenses such as medical costs, vehicle repairs, or job loss, without compromising your long-term savings. Prioritize the creation of this fund, even if it starts small. Set up automatic monthly contributions to maintain consistency and treat this fund as a vital financial protection. With a well-prepared safety net, you can confront unexpected challenges with confidence and stability. Step 4: Invest Wisely for Future Expansion While saving is crucial, investing is the key to wealth accumulation. Explore various investment options, including mutual funds, stocks, bonds, real estate, and retirement plans like NPS. Diversify across different asset classes to manage risk and maximize returns while minimizing the impact of market volatility. Stay informed about investment trends, but avoid making hasty, emotion-driven decisions. Develop a disciplined investment strategy that aligns with your risk tolerance, investment horizon, and objectives. Seek advice from financial experts if necessary, and remember that investing is a marathon, not a sprint, requiring patience and focus. Step 5: Prepare for Retirement Retirement planning is fundamental to achieving financial security. Begin early to leverage the power of compound interest and accumulate a substantial retirement fund over time. Consider your desired retirement lifestyle, including healthcare expenses and the effects of inflation. Maximize contributions to retirement accounts such as EPF or NPS, leveraging tax benefits and employer contributions. Regularly review your progress and adjust your strategy as needed. As retirement approaches, shift your investments to more secure assets to protect your savings and ensure a steady income in your post-retirement years. Conclusion Attaining financial freedom is not just about accumulating wealth; it's about gaining control over your future. By setting clear goals, managing your budget prudently, building an emergency fund, investing strategically, and planning for retirement, you can establish a solid foundation for a fulfilling life. Begin your journey today to create a brighter, stress-free future—one step at a time. Financial security is not just the end goal; it's the freedom to live life on your own terms.

Carving out a niche in the timber-furniture industry
Business 2026-07-04 11:17

Carving out a niche in the timber-furniture industry

In late winter the weather conditions at Kleniewski Tartak can make work difficult. Surrounded by the dark forests of southeastern Poland, the sawmill is covered in snow when Monocle arrives. And yet it is buzzing with activity. Trucks rumble in, loaded with fresh supplies of wood, and cranes whir into action, extending their claws into the air.Lorry bound for Kleniewski Tartak with fresh goodsThe modern way to slice logsThe busy scene is emblematic of Poland. The country’s economy has flourished since the fall of communism in 1989 and, with more than a third of its landscape covered in forests, international furniture brands across the globe have taken note of Poland’s plentiful resources and robust financial system. It’s a situation that has helped to transform the country into the world’s third-largest exporter of furniture. Kleniewski Tartak is prospering.Success hasn’t been effortless. “When I took over the sawmill from my father in 2017, we were mainly selling to the domestic market,” says Kleniewski Tartak’s owner, Waldemar Kleniewski. “I needed to show international clients that we were a modern company.” Buying Italian and Swedish machines to modernise production, Kleniewski shifted to processing raw oak and decentralised decision-making to employees. It involved breaking with the standards that had existed in Poland for decades, says Kleniewski. “It is the right way to do business.”The Boegli horizontal band saw in actionProcessed wood in the sawmill’s drying chambersAt 29, Kleniewski is young for a sawmill owner. But his entrepreneurial energy is common across the country. Down a winding road through the forest, Monocle finds two of Kleniewski’s local customers: Beata Woloszyn and Damian Wasyl, a young couple who co-founded the furniture company Raw just over a decade ago.Finishing touches at the Converis factoryTheir path to establishing the brand is atypical for the furniture industry. Both born in the small town of Tomaszow Lubelski, it took moving hundreds of kilometres away to Warsaw – and in the case of Wasyl to Rotterdam – to realise their true calling. “I’m a third-generation carpenter,” says Wasyl. “But while my predecessors had to focus on filling in the gaps left in the market by communism, making everything from fences to doors, we can focus on the current shortage: affordable, high-quality furniture made from natural materials.” The pair ultimately returned to their hometown to set up Raw and Woloszyn says that they received an immediate, positive reaction from the community and customers. “Poles want furniture made in Poland now, not Germany or Italy,” he says. “That desire is increasing around Europe too.”Made-to-order side tables awaiting shippingWith only a handful of workers, Raw is on the smaller end of Polish furniture brands. It is in the country’s centre, in a triangle between the three cities of Lodz, Wroclaw and Poznan, where manufacturing for major international brands, including Denmark’s Fritz Hansen and Sweden’s Ikea, can be found. Also in this fertile production region is Converis, a company dedicated to rotomoulding, a plastic moulding process used to create large pieces of furniture. “Half of our customers are domestic and the other half international,” says Converis director Tomasz Dyszkant, inspecting a stack of multicoloured pieces, which will soon be made into a playground in Israel. “A Danish company designed them, we manufacture, then they are shipped off across the world.”Damian Wasyl and Beata Woloszyn in their officeThe Raw workshop team is small but tight-knitSimplicity that highlights oak is key to Raw’s designsWhen Monocle visits, the Converis team is creating Polish brand Vzor’s iconic chair, RM58, by pouring resin into metal moulds and setting it in an oven heated to 220C. “Designers are on the lookout for new possibilities and technologies,” says Dyszkant, who is overseeing the work. “There are exciting developments on the horizon.”Table saw being used with Raw’s customary precisionKaja Alaszkiewicz and Domenico Russo, the Polish-Italian duo behind NudoPieces await polishing at Nudo’s workshopIn another factory, Claudie Design, managers attest to the importance of the wider region too – specifically Ukrainian workers. Though there was a large influx following Russia’s invasion in 2022, they had long been filling gaps in Poland’s workforce. Producing its own brand furniture, the factory carries out orders for brands both foreign and domestic.School of Form’s artistic director, Agnieszka Jacobson-CieleckaWhile manufacturing takes place in the regions, Warsaw is the country’s design capital. In the city’s downtown, at Polish brand 366 Concept’s showroom, the sense of a place buzzing with international connections is obvious. It is the perfect setting for their namesake piece: the 366 armchair. Designed by Jozef Chierowski in 1960, the chair instantly became an icon of Polish design, says the brand’s co-founder, Maciek Cypryk. “But it couldn’t break onto the international stage because of communist rule. Our design heritage remained unrecognised for too long.” Now reconnected to the world, the showroom’s Parisian feel is deliberate – after all, France is the brand’s biggest market.Tutor Estera Mrowka in School of Form’s printing workshopMetal-working technician Stas MacleodAnd while there’s a design heritage to be tapped into, there’s also an urgency to secure Poland’s design future – an ambition continued by the School of Form, Poland’s leading design institution. Part of swps University, School of Form was founded in 2011 by Piotr Voelkel, a Polish businessman. “Though Voelkel had a furniture business based here in Poland, he couldn’t find any well-educated designers in the country to work with,” says the school’s artistic director, Agnieszka Jacobson-Cielecka. The school was formed in collaboration with Lidewij Edelkoort, former director of Eindhoven’s Design Academy.Pupil in the robotics workshopMegi Malinowska, product design teacherAs former artistic director of Lodz Furniture Festival and long-time curator, Jacobson-Cielecka is used to bringing people together. “We wanted to create a juncture where different mediums, experiences and influences meet,” she says. Students are invited to meet international designers several times a year. Polish tutors with experience abroad are also sought out. Down the corridor, Londoner Stas Macleod is working with students in the metal workshop, while Westminster School of Architecture alumna Megi Malinowska is teaching product design.Rolls of textiles in Claudie Design’s factoryUpholstering in actionIn the carpentry room, Monocle catches up with Szymon Pasierb, head of the school’s prototyping workshops. Returning to Poland after studying at London Metropolitan University, Pasierb is focused on reviving Poland’s forgotten education traditions. “With the changes of the past decades, Poland lost its craft schools,” says Pasierb. “But if you read the papers and listen to people’s conversations, you can sense that there is a need for them.” Pointing towards the northern port city of Gdansk and the southern, mountainous town of Zakopane, Pasierb says that the country has its own craft traditions to be proud of.366 Concept chairs awaiting futher productionMeeting of textures in Maja Ganszyniec’s designAn hour’s drive out of the capital and monocle finds evidence of that craft bubbling away. Domenico Russo and Kaja Alaszkiewicz met in Italy, when Alaszkiewicz was on a university exchange programme from Warsaw. Moving to the UK together after graduation proved to be the catalyst for establishing their own business: in London, Russo stumbled across a furniture workshop in the city’s east that inspired him to swap a desk for a workbench. “My grandfather was a woodworker back in Italy and all my memories came flooding back,” says Russo. “I realised that I needed to make a change.”Cloth being sorted for sewingThe couple set up their furniture brand Nudo in 2018 and chose the Warsaw region as the location. “It’s not as expensive as London and there is a feeling that things are happening here,” says Alaszkiewicz. The mix of Polish craft and Italian heritage has proved essential for success.In Warsaw’s Mokotow district, Maja Ganszyniec, Polish designer and founder of Nurt, greets Monocle at her brand’s showroom. “Back in 2000, it wasn’t just that Poland was a different country; it was a different universe,” she says. Being a satellite state of the ussr had frozen the country in time, Ganszyniec explains, depriving it of everything from clothes to cars. “Ikea had started manufacturing in our country in the 1960s but we weren’t even able to buy the pieces they were making.”366 Concept’s Parisian-style showroomNudo’s pieces deliberately evoke the brand name’s original Italian meaningHowever, unlike so many others, Ganszyniec grew up with a glimpse behind the Iron Curtain. “My childhood home was a beautiful 1930s villa,” she says. “It was filled with furniture from all over Europe. I knew that things had been different once.”Studying abroad in Milan and then at London’s Royal College of Art, Ganszyniec felt instinctively that her country had something to offer. “Often when people want to compliment my designs or Polish design, they’ll say it looks Scandinavian. But that’s a back-handed compliment,” she says. “We share a sea, nature, architectural styles, history; of course the designs are similar.” She has made it her life’s work to achieve recognition for Poland’s own style and aesthetic. “When someone says ‘Polish design’, people don’t have famous names or iconic pieces to relate to. Our job is to build up that picture.”There are challenges to maintain momentum but Ganszyniec says that Poland will always prosper because of its people’s innate curiosity. “Imagine you are in the most remote place on Earth,” she says. “You think that there is no one there but lift up a rock and you’ll find a Polish person. We were held back for so long. But now that we’re free, no one can stop us.”

Glimpsing the Financial Horizon for 2025: Emerging Patterns and Possibilities
Finance 2026-07-03 18:36

Glimpsing the Financial Horizon for 2025: Emerging Patterns and Possibilities

The previous year was characterized by significant economic advancements, including a reduction in inflation, lower interest rates, and an impressive stock market rebound. With the U.S. entering a new era of leadership and navigating the post-pandemic landscape, what financial changes can we expect for 2025? Let's explore the potential shifts in mortgages, investments, banking, and credit card services. Mortgage Market Outlook Initial predictions suggested a significant drop in mortgage rates for 2025. However, market unpredictability in response to the new administration has led experts from Zillow and Fannie Mae to forecast rates remaining above 6% throughout the year. Housing Demand and Pricing The demand for housing continues to outpace the supply. Despite nearly 5.8 million new homes being built over the past four years, consumer demand has kept pace, maintaining pressure on the housing market. “Addressing the housing shortage took over a decade, and resolving it will likely take a similar amount of time,” notes Rob Dietz, Chief Economist at the National Association of Home Builders. The ongoing imbalance favors sellers, leading to rising home prices. While this benefits homeowners by increasing their equity, it poses challenges for buyers seeking affordable housing options. Investment Opportunities The investment landscape for 2025 is expected to offer a mix of opportunities and risks. Positive factors like lower interest rates and potential corporate tax cuts could boost earnings growth, even as high stock valuations may introduce market volatility. S&P 500 Forecasts The S&P 500 is projected to see moderate growth in 2025, supported by macroeconomic improvements and advancements in artificial intelligence. However, high valuations could amplify market fluctuations if earnings growth does not meet expectations. Small and Mid-Sized Enterprises In 2025, smaller firms may outperform larger corporations due to their greater agility in responding to interest rate reductions and potential tax relief. Many small-cap companies rely on variable-rate debt, which can benefit more quickly from lower rates compared to the fixed-rate debt common among larger corporations. Tax cuts could also have a more pronounced effect on smaller companies, as they often generate a larger share of their revenue domestically, unlike the global operations of large-cap firms. Banking Sector Trends In the banking sector, the Federal Reserve's monetary policy is anticipated to significantly impact consumer outcomes. “We anticipate a gradual reduction in interest rates in 2025, with 25 basis-point cuts in the first two quarters followed by a pause in mid-year,” says Sophia Kearney-Lederman, Senior Economist at FHN Financial. The Fed's decisions will be influenced by inflation trends and labor market conditions. A slight rise in inflation, along with reduced unemployment rates due to changes in immigration policies, could lead the Fed to hold off on additional rate cuts later in the year. If rates decrease as expected, yields on savings accounts, money market accounts, and CDs may also decline, reducing returns for savers. Credit Card Market The Federal Reserve's rate cuts have already led to minor reductions in credit card interest rates, and further cuts in 2025 could continue this trend. However, do not expect drastic changes to your APR. Despite potential decreases in the Fed's target range, average credit card interest rates remain high, exceeding 21%. While lower rates may offer some relief, it is essential to prioritize debt repayment to avoid accumulating additional interest costs. As we move into 2025, understanding these financial trends can help you navigate the year with confidence and make informed decisions to strengthen your personal financial well-being.

Even keel: Y Yacht’s latest sailboat balances beauty and performance
Business 2026-07-03 18:28

Even keel: Y Yacht’s latest sailboat balances beauty and performance

It’s a balmy day on the Balearic Islands when Monocle steps onto the pier at Pantalán del Mediterráneo marina in Palma de Mallorca. Here, Danish architect David Thulstrup is standing alongside the latest launch from German shipyard Y Yachts. “I spent my childhood on the harbour, just outside Copenhagen, so being on a marina is very, very familiar,” he says, walking along the gangway and onto the deck of the Y8, which he has just finished working on. “But I sailed small boats when I was a kid, so this type of boat is very different. It’s quite impressive.” Impressive, indeed. This 80-foot (24-metre) sailboat, constructed at Y Yachts’s manufacturing facilities on the Baltic Sea, boasts a hull made entirely from carbon fibre. It’s a lightweight construction that lessens the reliance on engines and allows easy sailing, even in the light wind conditions typical of the Mediterranean.Cedar cladding creates a homely feelBespoke cabinetry for holding glassware“On the deck, it’s all about racing: you lift off the sunroof above the outdoor banquette, pull up the windshield and unfurl the sails, and suddenly you have this machine built for speed,” says Thulstrup. The yacht can cross the Atlantic and will be used to race in regattas around the globe. “Everything has been considered with ease of performance in mind. The Y8 even has two steering wheels, so that the captain can control the yacht from the point with the best visibility.”Despite his youth spent on the harbour and his appreciation of the performance capabilities of the Y8, Thulstrup was called in to work on its lower deck. The Copenhagen-based designer is the latest in a line of creatives, which include Denmark’s Norm Architects and Pritzker Prize winner David Chipperfield, to collaborate with Y Yachts. Thulstrup was briefed to give the interiors a sense of generosity not typically associated with the cabins of racing vessels.“The aim was to give the yacht a residential feeling rather than a typical yacht or racing boat feeling,” says Thulstrup. “So the first step was looking at how we could lay the space out so that there was a sense of openness.” The initial move was to create an open-plan living area in the centre of the yacht: on walking down the stairs and into the cabin area, you enter a generously proportioned salon-like space rather than being squeezed into a warren of hallways that typically lead to bedrooms.Generous salon spaceFreestanding furniture offers flexibilitySpacious galley kitchenThe sense of domesticity was enhanced by a decision to introduce freestanding furniture. “By having everything built-in, a yacht can become very stagnating because there’s no flexibility,” says Thulstrup. Instead of the typical banquettes and benches built into the walls of the launch, a bespoke Thulstrup-designed dining table sits proudly alongside the mast where it comes through the salon and there are also four Brdr Krüger Arv chairs are set (when the yacht is on the move, these are held in place with straps that prevent them from sliding across the floor). Two armchairs and a sofa, which sit on runners and can be fixed in place while sailing, add to the homely atmosphere, complementing Kasthall carpets and bespoke cushions in Kvadrat textiles.“If the upper deck is all about performance, then the lower deck is all about quietness,” says Thulstrup, adding that the mix of materials was a key consideration too. Matt-finishes typically associated with domestic environments were used to complete the space, with cedar-veneer on the floor and walls, and solid mahogany on the steps and handrails. “When you’re up on the deck, everything shines and shimmers, reflecting the water, which means that, visually, there’s always something going on,” adds Thulstrup.“We wanted to create a sense of relief for your eyes below deck. When you’re sailing across the Atlantic for three weeks, it’s extremely important that you have a space that helps you feel grounded and calm.”The project wasn’t just about translating Thulstrup’s residential design language into a new environment – the fit-out needed to be engineered for travelling at speed too. “It means that we were always looking for a balance between material weight and strength, and beautiful design,” says Francesca Modica, leader of Y Yacht’s in-house design team. “We are always trying to make everything as light as possible.” Modica holds master’s degrees in architecture and yacht design from Politecnico di Milano and worked closely with Thulstrup on the creation of a fit-out for the Y8 that balanced aesthetics with performance. The duo developed custom cabinets, cupboards and drawers that discreetly lock when closed, so that their contents don’t fall out when jostled by the open sea. “A yacht is a home and it’s a product,” says Modica. “You need to study every detail, like it’s a product you’re developing. But you also need to be able to live in it like a home.”The analogy is a reminder that designing a yacht really is about balance. It’s about finding an even keel between beauty and performance; between time in the marina and on the ocean; and between speed and stillness. “There’s a different relationship with time on a yacht,” says Thulstrup. “It’s all about waiting – waiting for the right weather, for food and supplies. It’s very much about coming down in tempo as a human, and even though the Y8 is a racing boat designed to go quickly, you need to have a calm space to balance that out.”When Monocle departs, the Y8’s crew are preparing for a voyage across the Atlantic – just how quick they make the crossing depends on a host of factors beyond their control. So it’s a good thing that Thulstrup designed a space that finds a happy harmony between the need for speed and the ability to comfortably pass time too. Bon voyage.

Navigating International Payments: Your Guide to Global Transaction Methods
Currency 2026-07-02 11:53

Navigating International Payments: Your Guide to Global Transaction Methods

Cross-border payments, also known as international money transfers, use advanced methods to move funds between countries. These transactions are crucial for companies that work with, purchase from, hire, or deal with international partners. When making these transfers, money often changes from one currency to another. It’s essential to follow the rules, banking practices, and exchange rates of both the sending and receiving countries carefully before processing international credit card transactions. Thanks to various advanced payment methods, many businesses can grow by leveraging exchange rates. These payments are used to buy from foreign sellers, pay employees in different countries, and receive payments from international customers. Best Methods for International Payments To find the best international credit card processing method, you need to conduct thorough research. Businesses can choose from the following foreign payment providers: 2Checkout 2Checkout, now part of Verifone, accepts payments from over 200 markets, making it ideal for European companies looking for overseas payment platforms. With no annual fees and free payments from European customers, it might be a cheaper option than larger names. However, with fees starting at 3.5% + 25p, it's mainly suited for European transactions. Opayo Opayo (formerly SagePay) offers three service levels: Flex, Plus, and Corporate. It supports multiple currencies and major credit and debit card companies. While Opayo offers a monthly fee option, its pricing isn't clearly stated on the website, making it hard to compare with other payment processors. Braintree Owned by PayPal, Braintree operates independently, providing businesses with their accounts to handle sales. Supporting over 45 countries, it's a solid choice for those seeking a foreign payment platform. General rates are 1.9% + 20p per transaction, with an additional 1% fee for cards issued outside the UK. PayPal PayPal is a popular, secure choice for online purchases, ideal for startups and small businesses due to its simplicity and reputation. It supports 25 different currencies and operates in over 200 countries and regions, making it a global option. PayPal's fees vary by currency, and international transactions can cost up to 5% + 3% in currency conversion fees. Worldpay Worldpay is an all-in-one payment service that allows websites or apps to accept international credit card payments securely. It operates in over 40 countries and supports 120 currencies. However, it requires long contracts (three years with automatic rollover) and may charge early termination fees. Pricing transparency is another issue, with both monthly fees and pay-as-you-go options unclear. Stripe Stripe offers various payment channels, allowing businesses to integrate new payment methods into their online stores easily. It supports over 135 countries and offers extensive local payment options. However, while convenient for online shops and eCommerce companies, card payments can come with high fees and potential failures. Amazon Pay Amazon Pay is a newer player in the payment scene but offers a user-friendly interface and multi-currency capabilities, making it ideal for international business growth. Starting at 2.7% + 30p per transaction, plus a cross-border fee of 0.4% to 1.5%, the fees can be high, and cheaper platforms might be preferable if users don't favor Amazon Pay. Adyen Adyen supports over 30 currencies worldwide, making it a great choice for businesses expanding into new regions. It offers a customizable online payment experience. However, its pricing is more complex, with both fixed processing fees and payment method-based fees, making it challenging to determine the total cost. Challenges Faced in International Payments While international transactions can enhance corporate operations, they come with two major drawbacks: Regulatory Hurdles Complicated and sometimes conflicting regulatory systems, such as data privacy rules, can be tough to navigate. Legal restrictions on money transfers can be confusing, and some companies might find these extra steps discouraging, potentially halting international transactions. Security Concerns Fraudulent activities such as data theft, unauthorized transactions, and account takeovers are risks in complex international payment systems. Online payment systems like Shopify implement robust security measures to combat these threats. By understanding and navigating these challenges, businesses can effectively manage international payments and leverage global opportunities to grow and succeed.

Sustainable Investing: The Rise of ESG for a Greener Tomorrow
Finance 2026-07-02 11:57

Sustainable Investing: The Rise of ESG for a Greener Tomorrow

Over the past decade, there has been a significant increase in sustainable investing, with investors seeking to align their financial goals with their ethical values. This approach, known as ESG (Environmental, Social, and Governance) investing, involves considering the societal and environmental impacts of corporate actions alongside financial returns. This shift is revolutionizing the financial industry, with both individuals and institutions demanding greater corporate responsibility and sustainability. In this article, we explore the concept of sustainable investing, its importance, and how ESG factors are being integrated into investment strategies. 1. Defining Sustainable Investing Sustainable investing includes investment strategies that balance financial returns with the long-term effects on the environment, society, and corporate governance. Unlike traditional investing, which is profit-centric, sustainable investing aims to achieve positive outcomes for society and the environment alongside financial gains. ESG is a key framework in sustainable investing, evaluating companies based on three main criteria: Environmental: This focuses on a company's impact on the environment, including carbon emissions, waste management, resource conservation, and overall environmental responsibility. Social: This examines a company's relationships with employees, suppliers, customers, and communities, covering labor practices, human rights, diversity, and community involvement. Governance: Governance assesses a company's leadership, transparency, board diversity, executive compensation, and shareholder rights. Sustainable investing is not just about excluding companies with poor ESG scores; it also involves actively investing in businesses and funds that contribute positively to these areas. 2. The Necessity of Sustainable Investing Sustainable investing is about more than just philanthropy; it's also about achieving financial success. Here are some reasons why investors are turning to ESG integration: Risk Mitigation: Companies that ignore ESG factors may face legal, regulatory, and reputational risks. Companies with strong ESG practices are often better prepared to manage long-term challenges. Ethical Expectations: As global awareness of environmental and social issues grows, consumers and investors are demanding more from businesses. A commitment to sustainability can provide a competitive advantage to companies seen as responsible and innovative. Improved Financial Performance: Research suggests that companies with strong ESG practices often outperform financially compared to their peers. By prioritizing long-term sustainability, these companies tend to be more resilient, with better growth prospects and reduced exposure to environmental and social risks. Positive Impact: For investors who want to make a difference, sustainable investing offers the opportunity to support companies and sectors that align with their values, such as renewable energy, healthcare, and businesses with fair labor practices. 3. Getting Started with Sustainable Investing If you're interested in incorporating ESG considerations into your investment strategy, consider these steps: Determine Your Values and Goals: The first step in sustainable investing is to identify which ESG issues are most important to you. Is environmental sustainability, such as reducing climate change, a priority? Or are social issues like diversity, equity, and labor practices more critical? By identifying your core values, you can align your investments with your personal beliefs. Explore ESG Funds and Investment Options: ESG funds, which pool capital and invest in companies meeting specific ESG criteria, are one way to begin sustainable investing. These funds may be actively or passively managed through ESG indices or exchange-traded funds (ETFs). Look for funds that provide transparency on their company selection process and ESG performance metrics. Perform Screening and Selection: For those who prefer direct investment management, ESG screening can be applied when choosing individual stocks or bonds. Screening identifies companies that meet certain ESG criteria while avoiding those that do not meet these standards. For example, you might choose to exclude companies in the fossil fuel or tobacco industries in favor of those in renewable energy or healthcare. Active Engagement: Some sustainable investors opt to engage actively with the companies they

The Fed Has Cut Interest Rates: What Does This Mean for Asia and the Pacific?
Currency 2026-07-01 11:31

The Fed Has Cut Interest Rates: What Does This Mean for Asia and the Pacific?

The recent interest rate cuts by the United States Federal Reserve present opportunities and challenges for central banks in Asia and the Pacific. Policymakers must adopt a balanced, country-specific approach to navigate potential inflationary pressures, exchange rate volatility, and capital inflow dynamics. The United States’ Federal Reserve (Fed) kicked off a long-anticipated monetary policy loosening cycle at its September Federal Open Market Committee meeting, cutting interest rates by 50 basis points. Committee members project another 50 basis points of cuts this year, and that Fed loosening will continue in 2025. This could have significant consequences for the global economy, including for developing economies in Asia and the Pacific. Inflationary pressures in have continued declining in the region this year, as commodity prices stabilized and the lagged effects of last year’s monetary tightening took hold. As a result, most of its central banks have paused their hiking cycle, with some switching to policy rate cuts. Others may now follow suit.  In shaping their policy stance, central banks in emerging economies need to take account of interest rate differentials with the US, which impact capital flows and exchange rates. The Fed rate cut opens up the opportunity for more of the region’s central banks to loosen policy to stimulate domestic demand and growth, without triggering capital outflows and exchange rate depreciations. Still, since the pace and length of the Fed loosening cycle remains uncertain, an appropriate policy response in Asia and the Pacific will require caution and a careful balancing act, for a number of reasons. One option for central banks is to cut rates in the wake of the Fed. This would support growth, but it may also revive price pressures and encourage excessive borrowing in economies where household and corporate debt levels are already high. Alternatively, central banks in the region could continue to maintain a relatively tight monetary stance—e.g., by cutting interest rates with a lag and/or less than proportionally with respect to the Fed. In such a case, the lower interest rates in the US could increase capital flows to Asia and the Pacific, as investors adjust their portfolios toward assets with more attractive yields. This could boost equity and bond markets across the region, providing some breathing space to more vulnerable economies. However, capital inflows could also present some challenges, as significant swings in short-term portfolio investment could increase financial market volatility.  Additionally, higher capital inflows may result in exchange rate appreciations vis-à-vis the US dollar in the region. This would benefit economies heavily dependent on oil and other commodity imports, reducing price pressures and improving trade balances. For economies with high US dollar-denominated debt, the depreciation of the US dollar would make it easier to sustain the debt burden. On the other hand, exchange rate appreciations would boost imports, with potentially negative effects on current accounts. In the medium term, stronger currencies could also hamper export growth, particularly for economies reliant on exports of traditional manufacturing goods, such as garments or textiles, which depend mainly on price competitiveness. This variety of potential effects and channels suggests that  policy responses to the Fed loosening cycle in Asia and the Pacific will need to be country-specific and nuanced, and include a combination of the following measures. As well as adjusting interest rates, monetary authorities in the region could rely on targeted measures, such as on banks’ reserve requirements, to affect financial and liquidity conditions. Forward guidance can also be an effective tool to anchor inflation expectations and reduce uncertainty and financial volatility, by clearly laying out the future path of monetary policy for market participants and economic agents. For economies receiving increasing capital inflows, well-developed financial markets are key to absorb the inflows and turn them into productive investment in the domestic economy. Policy action should focus on increasing competition, efficiency, and transparency in the financial sector, with the central bank or other overseeing independent authority providing adequate supervision.  To deal with the risks associated with rising capital inflows, capital flow management measures and macroprudential policies can be used, including measures aimed at mitigating exposure to currency mismatches.  Where capital inflows result in excessive currency appreciation, targeted intervention in foreign exchange markets could help reduce volatility, while also increasing foreign exchange reserves. Fiscal policy could be used the cushion the impact of falling exports. Depending on fiscal space, stimulus could be directed at several objectives, including boosting consumer spending; incentivizing activity in particular sectors with stronger multiplier effects on the rest of the economy; and infrastructure, energy-saving, climate-adaptation, and other projects aimed at addressing structural gaps, which would also boost the economy’s productive potential. The beginning of the Fed monetary loosening cycle brings challenges and opportunities for Asia and the Pacific. Lower interest rates in the US and a weaker dollar could lower import costs, boost financial markets, and spur larger capital flows toward the region. But these positive developments would not be without risks, including possible exchange rate volatility and renewed inflationary pressures. Policymakers will need to adopt a flexible approach, remaining vigilant and proactive in taking advantage of the opportunities and addressing the risks.

The Role of Behavioral Economics in Shaping Personal Financial Choices: Exploring the Psychology of Money
Finance 2026-07-01 18:26

The Role of Behavioral Economics in Shaping Personal Financial Choices: Exploring the Psychology of Money

Although personal finance is often perceived as a straightforward numerical exercise encompassing income, savings, investments, and spending, it is in fact a complex realm where psychological factors frequently lead individuals to deviate from purely rational choices. Behavioral economics, an interdisciplinary field that combines insights from psychology and economics, explores the reasons for these departures from rational financial behavior. Our financial decisions, whether they involve impulsive buying or reluctance to invest in the stock market, are often influenced by cognitive biases, emotions, and social pressures, leading to outcomes that may not be in our best interest. Understanding these biases can improve our financial decision-making and contribute to more effective financial planning. This article will examine the fundamental concepts of behavioral economics, identify common cognitive biases that affect financial choices, and propose strategies to overcome these biases for better financial outcomes. 1. Understanding Behavioral Economics Behavioral economics studies how psychological factors impact economic decisions. Unlike traditional economics, which assumes that individuals act rationally to maximize their utility, behavioral economics recognizes that individuals are often influenced by non-rational factors such as emotions, cognitive biases, and societal pressures. For example, even when individuals are aware of the long-term benefits of saving, investing, or paying off debts, they may still make poor financial choices. Behavioral economics aims to explain these peculiarities in human behavior by drawing on knowledge from psychology, neuroscience, and other disciplines. By understanding how psychological factors influence financial decisions, individuals can increase their awareness of their own tendencies and adopt strategies to mitigate the negative effects of biases. 2. Common Cognitive Biases Influencing Financial Decisions Behavioral economics has identified several cognitive biases that shape individuals' financial behaviors. Here are some of the most common biases: Loss Aversion: Individuals tend to fear losses more than they value gains. This bias can lead to overly conservative financial behaviors, such as holding onto unprofitable investments or avoiding risks. It can also result in excessive spending to avoid the feeling of "loss" when parting with possessions. Status Quo Bias: There is a natural inclination to maintain the current state of affairs, even when change could be beneficial. This is evident in financial decisions such as staying in high-interest debt or sticking to outdated investment strategies due to a perceived safety in the status quo. Overconfidence Bias: People often overestimate their financial knowledge or abilities, leading to risky investments or the belief in their ability to time the market. This can lead to poor financial decisions such as incurring excessive debt or making speculative investments that do not align with long-term goals. Present Bias: This bias causes individuals to prefer immediate rewards over future benefits. The immediate gratification of spending overshadows the future benefits of saving or investing, leading to impulsive purchases and inadequate savings for retirement or other future needs. Anchoring: Decisions are often heavily influenced by the initial information received. For example, seeing a $500 jacket followed by a $200 one might make the latter seem like a good deal, regardless of its actual value. This bias can affect financial decisions regarding loans, salaries, and investment valuations. Herd Mentality: Financial decisions are often made in imitation of peers, especially when there is a lack of information or uncertainty. This can lead to speculative bubbles and impact consumer spending, causing individuals to buy unnecessary items simply because they are popular. 3. The Consequences of Behavioral Biases on Financial Decisions Cognitive biases can lead to various suboptimal financial behaviors with long-term negative consequences. Here are some examples: Insufficient Retirement Savings: Present bias and procrastination often result in delayed retirement savings, prioritizing immediate spending over future needs. Overconfidence can also play a role, with individuals believing they will catch up on savings later, which often leads to further delays. High-Level Debt: Loss aversion and status quo bias can cause individuals to maintain high-interest debt, such as credit card debt, instead of actively working to eliminate it.

Unlocking the Potential of Emotional Intelligence in Finance: The Impact of Our Mindset on Economic Decisions
Finance 2026-06-30 18:52

Unlocking the Potential of Emotional Intelligence in Finance: The Impact of Our Mindset on Economic Decisions

Money is not just a means of exchange; it is deeply intertwined with our emotions, values, and overall mental health. Our financial behaviors, such as saving, spending, investing, or borrowing, are often influenced by subconscious psychological factors. Understanding these elements is crucial for making better financial decisions and achieving long-term financial stability. Behavioral finance, which intersects psychology and economics, explores how human emotions and actions can lead to suboptimal financial choices. Emotions ranging from fear and greed to overconfidence and indecision shape how we manage our finances and respond to both immediate and future economic challenges. This article will analyze the psychological aspects of money, identify common cognitive distortions and emotional influences, and provide strategies to overcome these mental hurdles to make more rational and intentional financial decisions. 1. Emotional Connections to Money Money often triggers strong emotions such as anxiety, embarrassment, regret, and a sense of security. These feelings can either drive us toward financial success or lead us into destructive patterns. Here's how our emotional relationship with money can manifest: Fear of Financial Loss: Many people have a fear of losing money, leading to overly cautious financial behaviors. This fear might cause individuals to avoid investments, hoard cash, or delay important financial decisions like buying property or retirement planning. While managing risk is important, excessive fear can prevent people from taking actions that could grow wealth over time. Desire for Financial Security: For some, money represents safety—ensuring funds for emergencies, a comfortable lifestyle, and providing for loved ones. This pursuit of financial security can lead to behaviors such as excessive saving, minimal spending, or avoiding debt altogether. While financial security is important, focusing too much on future savings can sometimes detract from enjoying life in the present. Financial Guilt and Shame: Guilt and shame related to finances are common emotional barriers. Those who feel they have made poor financial decisions may experience guilt or shame about their current financial situation. This can lead to avoidance behaviors, such as ignoring bills or avoiding financial planning altogether. Overcoming this guilt is essential for moving forward and building a strong financial future. Envy and Social Comparison: In a consumption-driven society, it's easy to compare our financial status to others. This can lead to excessive spending or making financial decisions based on the desire to keep up with peers, even if it conflicts with our actual needs or goals. 2. Common Cognitive Biases and Their Impact on Financial Decisions Behavioral finance identifies several cognitive biases—mental shortcuts or patterns of thought—that can lead to irrational financial decisions. Recognizing these biases can help individuals avoid costly mistakes. Anchoring Bias: This bias occurs when individuals rely too heavily on an initial piece of information when making decisions. For example, when buying a car, a person might base their expectations on the first price they see, even if it's not reflective of market value. This bias can lead to overpaying or undervaluing financial decisions. Loss Aversion: Behavioral economics shows that individuals tend to fear losses more than they value equivalent gains. The emotional pain of losing $100, for instance, is much greater than the pleasure of gaining $100. This bias can prevent people from taking necessary risks, such as investing in stocks, even when the potential long-term benefits outweigh the risks. Confirmation Bias: Individuals often seek information that confirms their preconceived beliefs or decisions, rather than considering alternative viewpoints. For example, someone convinced of an investment's merits might ignore warnings or red flags. This can result in poor investment choices or a failure to diversify. Overconfidence Bias: Many people believe they have superior knowledge or skills, especially in investing. This overconfidence can lead to risky financial decisions, such as making speculative investments or underestimating the risks associated with certain financial choices. Overconfident investors may also ignore expert advice or downplay the importance of diversification. Recency Bias: This bias happens when individuals place more importance on recent events than on historical data or long-term trends. For example, an investor might make decisions based on the most recent stock market performance, overlooking the broader historical context.

Robust Institutions Act as a Buffer for Emerging Economies Against US Monetary Policy Shifts
Currency 2026-06-30 11:23

Robust Institutions Act as a Buffer for Emerging Economies Against US Monetary Policy Shifts

The influence of US monetary actions on a global scale is profound, particularly in terms of capital movements and credit expansion within emerging economies. This underscores the significance of sound macroeconomic policies and robust institutions in the ability of these markets to withstand fluctuations during varying monetary phases. The US dollar remains the dominant currency in international trade and finance, as well as in the reserves held by central banks worldwide. Consequently, US monetary policy continues to steer global financial trends, influencing the flow of capital and the growth of credit globally. The dominance of the dollar ultimately restricts the monetary policy options for emerging markets that are deeply integrated into global finance. The sway of US monetary policy was notably evident during the seven-year period of easing measures (2007–2014) that were a response to the global financial crisis. This period was followed by a 4.5-year tightening phase, which began with the 2013 "taper tantrum." Afterward, three years of easing (2019–2022), largely a result of the COVID-19 pandemic, led to a significant tightening in February 2022. This was a delayed response to the rapid increase in US inflation. Given the global consequences of shifts in US monetary policy, capital markets in emerging economies are often at risk of destabilizing capital outflows during times of heightened uncertainty. They are also susceptible to erratic capital inflows in search of yield during periods of low US returns. Notably, substantial inflows were observed when the Federal Reserve's extensive monetary easing brought the federal funds rate close to zero following the global financial crisis. These episodes have broadly increased pressure on the macroeconomic prospects of emerging markets and elevated their risk profiles. They have also affected the currencies, debt servicing, and capital flows of these markets. For example, in 2023, many developing Asian currencies saw significant depreciation against the US dollar due to the aggressive tightening by the Federal Reserve. A pertinent question is why certain emerging markets exhibit greater resilience or vulnerability to US monetary policy cycles, a topic explored in the study "The Performance of Emerging Markets During the Fed’s Easing and Tightening Cycles: A Cross-Country Resilience Analysis" by Joshua Aizenman, Donghyun Park, Irfan A. Qureshi, Gazi Salah Uddin, and Jamel Saadaoui. The study employs an empirical approach to assess whether macroeconomic factors, such as debt levels, and institutional factors, such as corruption, can account for an emerging market's resilience across different cycles. The research also comprehensively evaluates emerging market resilience by examining the bilateral exchange rate with the US dollar, exchange rate market stress, and the country-specific Morgan Stanley Capital International Index (MSCI). Additionally, policy factors like the type of exchange rate regime and inflation targeting are scrutinized. Broadly, the research indicates that macroeconomic and institutional factors are indeed significantly correlated with the performance of emerging markets. Moreover, the determinants of resilience vary between tightening and easing cycles, with institutional quality being particularly crucial during challenging times. Cross-country disparities in ex-ante macroeconomic fundamentals and institutional factors can explain the performance and resilience differences among a wide range of emerging markets during US monetary cycles. These factors differ between tightening and easing cycles, with the importance of ex-ante institutional factors increasing during monetary cycles triggered by the global financial crisis and the taper tantrum. This suggests that strong institutions are especially vital during difficult periods. To address these issues, policymakers in emerging markets should recognize that macroeconomic variables such as international reserves, current account balances, and inflation are key determinants of their resilience to US monetary policy fluctuations. This reinforces the established view that solid fundamentals are a shield for emerging markets against significant external shocks. Policymakers should especially focus on sovereigns with substantial external debt and economies with highly leveraged property markets and capital market vulnerabilities that are typically affected by changing interest rates. The borrowing costs for these economies could increase if there is a sudden deterioration in global financial conditions, exacerbating their already fragile fundamentals. To protect their economies from the volatility caused by US monetary policy, policymakers in emerging markets must prioritize strengthening macroeconomic fundamentals and institutions. This will help ensure long-term financial stability and support sustained economic growth in the face of global financial challenges.

The business agenda: A Jakarta-based fragrance label and the company driving Japan’s substitute-meat market
Business 2026-06-29 18:08

The business agenda: A Jakarta-based fragrance label and the company driving Japan’s substitute-meat market

Fashion: PortugalCleaning up its actThe coronavirus pandemic saw activewear become a fashion staple and demand for casual sportswear continues to grow. Yet this sartorial shift poses environmental challenges. Petroleum-based materials such as polyester, nylon and Spandex are non-degradable and come with a chemical-heavy production process. That’s why brands are working on eco-friendly activewear. And with new EU regulations that would make them liable for their waste expected to be passed into law, the player with the winning formula would hold sway in an important market.Clothius is Portugal’s biggest producer of seamless clothes, with a hi-tech factory in the northern town of Barcelos. Here circular looms deliver clothes that are almost store ready. “They come out with the tags and washing instructions printed on them,” says Jorge Vale, Clothius’s director. Since its founding in 2014, the business has seen its clientele change from sportswear brands to fashion labels with athleisure lines, such as Karl Lagerfeld and Calvin Klein. “Only about 15 per cent of what we make is for sport; the rest sits in this hybrid,” says Vale. While high-performance gear still relies on synthetic fabrics for optimal breathability and elasticity, athleisure offers leeway for experimenting with sustainable materials. “Twenty per cent of our yarns are recycled and we offer clients natural and regenerated materials, from Lyocell to bamboo fibres,” he says.The push towards sustainability is felt across the Portuguese textile industry and businesses are betting that production innovations will give them a competitive edge over places such as Morocco and Turkey. In 2017, Valerius, Clothius’s holding company and the country’s leading textile group, invested €25m into its own recycling plant. It can now make 2,100 tonnes of recycled yarn a year from its own waste, overproduction and unsold stock. Considering that Portugal has to import many prime materials for textiles, investing in recycling plants makes a lot of sense.“Our aim is to be a completely circular business,” says Rute Santos, head of business and product development at RDD Textiles, Valerius’s research and innovation hub. Along with its work in recyclables, the centre is researching fibres made from food waste and bio dyes made from bacteria. “There’s a long way to go in terms of making this a clean industry,” says Santos. “But Portugal is well positioned to offer solutions in Europe’s textile market.”Grooming: IndonesiaHomegrown talentThe impetus for starting Oaken Lab, an Indonesian perfume brand, came from necessity. Co-founder Chris Kerrigan, wary of the effects of mass-market deodorants and aftershaves on his skin, began to experiment with making skincare products at home. He ended up taking an intensive perfume course and realised that he wanted to go further than kitchen-table R&D. He and his wife and business partner, Cynthia Wirjono, launched Oaken Lab in 2018. The duo co-founded the Goods Department, a concept store, and Brightspot Market, a boutique fashion festival that they still help to run every year.Both of these businesses are in Jakarta and have succeeded by championing local brands with thoughtfully designed and high-quality products. Oaken Lab, which sells perfume, body and hair products and other grooming essentials, now has stockists in six countries. It emphasises its Indonesian roots through products such as Batavia Barber, a perfume named after a historic barbershop in Jakarta’s Old City. The local links are more than nominal: the fragrance comprises vetiver from Java and patchouli from Sumatra, and customers have responded enthusiastically to Oaken Lab’s handsomely packaged, sweet-smelling scents, balms, candles and accessories.“We started small and we always listen to responses from the first people who adopted the brand,” says Wirjono. “It made us realise that we do have a place in the market and that it’s still very underserved.” Oaken Lab now supplies its products to restaurants, retailers and hotels. In 2023 it opened three bricks-and-mortar shops, one in Bali, one in Jakarta’s Indonesia Design District and a larger flagship, which opened in south Jakarta in October and delivers new and immersive experiences of the products. “We were waiting to find these perfect little spots,” Wirjono says of the time it took to open physical shops. “We don’t want to overexpand; we want every location to be meaningful.”Podcasts: AustriaTalk of the townAustria’s postal service has been undergoing modernisation for years but its first foray into the audio world in 2022 marked a new high. Aptly namedPostcastand inspired by the country’s long tradition of radio drama, it explained the system’s intricate inner workings from the point of view of a parcel, voiced by a well-known Austrian public radio presenter, as it travelled from Vienna to the second city of Graz.Though technically a corporate podcast, its innovative storytelling made it a hit in the roster of Oh Wow, Austria’s first dedicated podcast production house.“It was a lot of fun to make but also quite challenging because it was actually more like a semi-fictional mini-series than a corporate story,” says Oh Wow’s founder Jeanne Drach, an Austro-French musician and entrepreneur who had lived in Algiers, Dakar and New York before settling in Vienna (she puts her languages to good use, hosting shows in English, German and French).Oh Wow is partially funded by the Vienna Business Agency, whose generous schemes have powered a rise in new journalism and media initiatives in the city in recent years.Drach started the company in 2019 when she recognised a gap in the podcast market, as did the City of Vienna. Oh Wow is partially funded by the Vienna Business Agency, whose generous schemes have powered a rise in new journalism and media initiatives in the city in recent years.Another of Drach’s hallmarks is her emphasis on empowering women. All Oh Wow employees are women (the postal parcel spoke in a female voice too), while the company’s flagship show,Jeannes Welt, focuses on inspirational women in the Austrian arts, media and beyond, including musician Ankathie Koi, author Stefanie Sargnagel and rights activist Mahsa Ghafari. The show is about to get a revamp that will invoke another Austrian tradition – that of theVarietétheater– to include readings, comedy and music alongside its spoken-word content. “It is going to be a cultural audio magazine, a weekly portion of feminist optimism,” says Drach. “It will also be our own playground for new sonic experiments.”Luxury: ChinaSecond to noneMost downturns have their upsides and China’s current economic malaise is no different. The market for secondhand luxury goods is booming and Shanghai-based platform Zzer is one of the rising stars. Gross value reached a record ¥2bn (€259m) last year on the back of a push into bricks and mortar.Zzer currently has four shops and founder and CEO Zhu Tainiqi is targeting at least 10 different cities across China in the next two years. The 35-year-old credits his wife with introducing him to secondhand luxury. It was her bad experience of trying to offload several Chanel handbags that prompted him to swap private equity for entrepreneurship. “The Chinese have been buying half of the global supply of luxury goods for the past 20 years,” he says. “Our closets must be full of handbags and I thought there must be a better way to help circulation.”Experts authenticate every product on the shelves while sellers set the price and pay Zzer a cut. Customer demand drove the decision to go into physical retail. “More and more buyers wanted to see the goods and when we decided to open our warehouse it exploded,” says Zhu.Chinese consumers are willing to buy secondhand: handbags generated 60 per cent of Zzer’s revenue in 2023, with jewellery and accessories the next fastest-growing segments. Zhu attributes the change in habits to Japan’s vintage shops, a popular destination among Chinese tourists. “The market size of luxury in China is huge,” says Zhu. “Growth might slow down overall but it’s still going to be a success.”Travel: SloveniaJust the ticketSlovenia’s capital, Ljubljana, got a new railway station to mark the start of 2024: a temporary pair of platforms outside the Union Brewery.It is, however, a first step. Due for completion in 2026, the Emonika project promises spectacular new bus and rail stations. Adjacent commercial, residential and retail buildings will fill prime city-centre land that has been embarrassingly empty for decades.Emonika’s long gestation is largely due to a struggle to find the right combination of stakeholders. Several commercial investors came and went before Hungarian bank OTP stepped in, alongside Slovenian Railways and both the national and city governments. The municipality estimates the overall cost at €1bn.Ljubljana will get a track-straddling, glass-roofed railway station designed by architects Sadar 1 Vuga. For the bus station, Bevk Perovic will offer passengers an airy terminus.Architect, urbanist and co-founder ofOutsidermagazine Matevz Granda questions the need for “another shopping centre” to add to Ljubljana’s already plentiful supply of malls. And he suspects the provision of almost 3,000 car-parking spaces “shows the main purpose of the project: not to get people on a train but to get them into the shopping centre”.It seems a fair point, given that the works do not include substantial upgrades to improve train speeds and frequencies. The new station will be welcome but an improvement on 19th-century journey times would be even better.Food: USAIn the bagWhen American-Pakistani entrepreneur Umaimah Sharwani was at university, her mother, Paro, would send her Ziploc bags of spices, lentils and rice to make her favourite South Asian comfort foods. By adding water, a hearty meal would be ready in 20 minutes. Now, after working in product development and distribution – including for Google and Glossier – Sharwani has turned her knack for building direct-to-consumer products to South Asian pantry staples.The result is Paro, a US-based food brand that currently consists of a trio of larder essentials: a red daal,kitchari(a porridge-like dish with mung beans, spices and basmati rice) andtarkaseasoning oil to top it off.“If a barrier to entry to South Asian dishes is time or access to ingredients, I want to do that work for the consumers,” says Sharwani. She launched Paro in February 2023 and the business has seen a growth trajectory with a consistent, month-to-month expansion of 20 per cent.Sharwani’s advice for those looking to start their own consumer-products business is straightforward. “Look at who you can bring on the journey with you,” she says. “And have a good understanding of where you want to go, because it will help you prioritise.”fromparo.comFood: JapanBait and switchBetween depleted oceans, an unstable climate and an exploding global population, the outlook for food production looks grim. Japanese manufacturer NH Foods is tackling the problem by developing alternative foods. It launched a range of soy-meat substitutes in 2020 and from April will be selling its latest offering: plant-based tuna. “We were thinking about sustainability, primarily and the scarcity of ocean resources,” says food development manager Kenichi Watanabe. “But also about environmentally conscious consumers and people who don’t want to eat raw fish or maybe can’t for health reasons. We chose tuna because the consumption is huge.”A scientist who studied cosmetics development, Watanabe spent six months working on the “tuna”, which is made from plant ingredients such as yam powder. NH Foods (the initials stand for Nippon Ham), which was founded in 1942, is best known for its Schau Essen sausages but now also offers dishes such as deep-fried “chicken” and breaded minced “beef” cutlets made with a soy substitute.“We already had the processing techniques,” says Watanabe. “The big challenge with the tuna was getting the texture and smell right.” For now the tuna will only be going to hotels and restaurants. There’s also a soy meat Korean bulgogi wrap and a plant-based ramen broth that replaces fatty pork with a soy alternative. For this part of its business, the company is looking at annual sales of ¥10bn (€63m) by 2030 and research suggests that the alternative market globally will hit €41bn by the end of the decade.The EntrepreneursLaura Kramer on: The smell of successTo Francis Kurkdjian, imitation is not just flattery; it is a testament to his prowess as a perfumer. “It’s a mark of acknowledgment of your talents,” he says. “Coco Chanel was not afraid of dupes. It shows that you inspire other people.” Kurkdjian is talking about his intoxicating fragrance, Bacarrat Rouge 540. One of the best-selling perfumes of the past decade, it’s also one of the most copied. But countless attempts have been fruitless because, despite best efforts, true craftsmanship is hard to replicate.Kurkdjian says that he doesn’t envy those trying to match his work. “I prefer to be copied than to be asked to copy other people.” He’s highly confident in the uniqueness of his creations. Kurkdjian’s first fragrance took the world by storm in 1995; Le Mâle for Jean Paul Gaultier became a scent blockbuster. “I was just 25 years old,” he says. “How do you follow that? I had to reinvent myself.”What followed was the creation of more than 40 perfumes for fashion houses such as Nina Ricci, Burberry, Dior and Elie Saab. Collaborating with designers was a dream come true for Kurkdjian, whose early fascination with fashion fuelled his desire to work for couture houses. By 14 he knew that he wanted to be a perfumer. “I was not into smells at all,” he says. “I was dreaming about the bottle, I was dreaming about the advertising.” And it was that original love of the other aspects of perfume that led to his next move. “The business model of perfume creation was quite removed from my dream job because things were very segmented: perfumers on one side, marketing and design in other people’s hands. I felt disconnected.”So he decided to take things into his own hands. In 2009, he co-founded the eponymous haute perfumery Maison Francis Kurkdjian with business partner Marc Chaya to bridge the gap between his creations and the final product. “We had this crazy idea to make a brand that’s driven by creativity and by my dreams,” he says. As the fragrance house prepares to celebrate its 15th anniversary, Kurkdjian contemplated the future of scent. “What is important is the end goal, to make someone feel something through their senses,” he says. “We should be confident in the capacity of creators to push boundaries.”To listen to more interviews with business innovators, tune into Monocle Radio’s ‘The Entrepreneurs‘, live or as a podcast.

Understanding Interim Credits: Their Significance in Dispute Resolution
Finance 2026-06-29 11:15

Understanding Interim Credits: Their Significance in Dispute Resolution

When an unexpected deduction appears on your bank statement, interim credits can provide a temporary boost to your balance, offering financial respite while the bank investigates the issue. Have you ever noticed a "provisional" credit on your account following the discovery of a dubious transaction? This credit typically matches the amount in question and remains in a provisional state until the inquiry is completed. Let's explore the concept of interim credits and their impact on your finances. Interim Credit Explained An interim credit is a temporary amount placed into your account by your bank while they look into a disputed or potentially fraudulent transaction. For instance, if you spot a $1,200 withdrawal from your account that you didn't authorize, and you inform your bank, they might grant an interim credit of $1,200. This credit acts as a temporary placeholder until the bank determines the validity of the charge. Remember, this interim amount is not final. If the investigation reveals the charge to be fraudulent, you keep the interim funds. On the other hand, if the charge is found to be legitimate, the interim credit will be reversed, and the funds will be deducted from your account. Role of Interim Credits in Banking A sudden charge, especially a large one, can disrupt your financial planning. Interim credits are designed to alleviate this disruption, ensuring that you're not left financially vulnerable while your dispute is being resolved. The investigation can last from a few days to several weeks, depending on the complexity of the case. During this period, the bank issues an interim credit equal to the disputed amount to serve as a temporary substitute for the actual funds. Interim credits are most commonly issued in cases of suspected fraud, but they can also apply when merchants make billing mistakes, such as billing you for a canceled service or charging you twice for the same purchase. How Interim Credits Work The process begins when you report the unauthorized transaction to your bank. Typically, the bank has 10 days to investigate the issue, although more complex cases may extend this timeframe. In such cases, the bank will apply an interim credit to your account as they continue to examine the transaction. Throughout the investigation, the bank will review the transaction details, gathering evidence from both the merchant and the account holder. After the review, they will decide on the legitimacy of the charge. The interim credit is temporary and lasts only for the duration of the investigation. If the dispute is upheld, the interim credit becomes permanent. However, if the charge is confirmed as valid, the interim credit will be reversed. While the interim credit is in place, you can use the funds. However, it's wise to keep additional funds in your account in case the credit is reversed, and you need to cover the disputed amount. This process ensures that you're not left without the necessary financial support to manage your account effectively while the investigation is ongoing. Yet, always exercise caution, as interim credits can be withdrawn if the dispute is resolved against you.

Send Money Abroad for Free: A Guide to Fee-Free International Transfers
Currency 2026-06-28 18:06

Send Money Abroad for Free: A Guide to Fee-Free International Transfers

Money transfer operators that promise "no fees" for international money transfers usually don't charge commissions directly. Instead, they make their money by adding fees that might not be as obvious when you exchange your currency. This is commonly known as the spread in exchange rates. It's crucial to read all the fine print when dealing with banks or money transfer services to avoid hidden fees. To help you out, we’ve looked into four of the best fee-free international transfer providers. Keep reading! Ways to Transfer Money Internationally Without Fees 1. XE Money Transfer XE is a well-known and reliable money transfer service. They’ve been in business for over 20 years and handle transfers for 33,000 individuals and 2,000 businesses annually. XE supports more than 60 currencies and prides itself on offering free tools and transparent rates. XE is a great choice if you want to transfer less than $5,000 without paying high transaction fees. However, be sure to check the estimated exchange rate you'll be charged. The rate displayed on their website is the market rate, not necessarily the rate you'll get. Pros: The XE app is available on iOS and Android, offering interbank rates for over 100 currencies. No fees for international money transfers. Trusted and recognized brand in the financial sector. Supports both personal and business transfers. Extensive information on currency and transfers, plus a comprehensive FAQ section. Cons: Maximum transfer limit is US$500,000. Interbank rates shown may differ from actual rates received. Applies a margin when processing transfers. Payments must be made via bank transfer; no cash or cheques. BPay is available in Australia. Only 60 currencies available for actual transfers, despite tracking over 100. 2. TorFX TorFX has been popular since 2004, helping companies and individuals exchange and transfer money abroad. They employ over 240 people in multiple countries including Australia, South Africa, the UK, India, the US, Spain, Portugal, and France. TorFX is particularly helpful for frequent international transfers. They require a minimum deal size of $200 and offer competitive exchange rates for amounts over $50,000. European expats and small businesses often favor TorFX due to its cheap rates and extensive banking network. Pros: Quick same-day transfers available in over 30 currencies. Personalized service with dedicated account managers, ideal for transfers over US$25,000. Easy online quotes with no obligation. Free deposits through online banking thanks to local bank accounts in multiple currencies. No direct fees or commissions on international transfers. Cons: Transfers can sometimes be delayed due to technical or administrative issues. Maximum transfer limit of AUD 25,000. Currency exchange risks due to market fluctuations. Cash or cheque payments not accepted. Website lacks a detailed FAQ section. 3. WorldFirst Founded in 2004, WorldFirst is known for its quick and efficient international money transfers. With offices in the US, UK, Australia, Hong Kong, and Singapore, WorldFirst recently removed all fees for sending money abroad, making it even more competitive. WorldFirst offers better web platforms and cheaper exchange rates compared to union transfer services. They have an app that simplifies online transactions. However, their minimum payment of $2,000 may be too high for some. It's recommended for businesses or individuals making large transfers frequently. Pros: Competitive exchange rates for businesses. No international fees for existing clients. Quick and easy setup process. Simple online payment platform. Handy calculator for interbank rates. Cons: Minimum transfer of $2,000, higher than many competitors. Actual rate may differ from displayed interbank rate; request a quote. Only one office located in Sydney. 4. OFX Originally known as Ozforex, OFX is the largest money transfer operator owned by Australians. The company operates entirely online, from account setup to sending money abroad. Unlike union transfer services, OFX offers highly skilled customer service despite most transactions happening online. This has driven its growth through positive reviews and referrals. OFX excels in improving the online experience and customer service. However, a $15 fee for transfers under $10,000 might be a drawback for smaller amounts. For larger transfers, there are no fees, making it an attractive option for banks as exchange rates improve with higher payments. Pros: Fast setup with excellent phone support. Competitive exchange rates. Good 24/7 service. No fees for transfers over AUD 10,000. Helpful FAQ page. Cons: $15 fee for transfers under AUD 10,000. Minimum transfer of AUD 250. No credit cards, cheques, or cash accepted. No foreign currency accounts needed. Lacks personalized advice. Challenges Faced in International Payments While international transactions offer benefits, they come with two major challenges: Regulatory Hurdles Complex and sometimes conflicting regulatory systems, such as data privacy rules, can be tough to navigate. Legal restrictions on money transfers can be confusing, and some companies might find these steps discouraging. Security Concerns Fraudulent activities like data theft, unauthorized transactions, and account takeovers are risks in complex international payment systems. Platforms like Shopify implement robust security measures to combat these threats. By understanding and navigating these challenges, businesses can effectively manage international payments and leverage global opportunities to grow and succeed.

The Agenda: Business
Business 2026-06-28 18:36

The Agenda: Business

Hovercraft: JapanBouncing backAs modes of marine travel go, the hovercraft has a pleasurable whiff of yesteryear. Big in the 1960s, it has all but disappeared from view, falling out of favour due to high operating costs. In Japan, however, the hovercraft is about to be revived. Oita prefecture has bought three Griffon 12000TDs and is set to put them into operation before the end of the year. Oita used to have a popular hovercraft, the Oita Hover Ferry, which launched in 1971 and ferried as many as 440,000 passengers a year between the airport and the centre of the city in a swift half-hour. When a new expressway to the airport was built, passenger numbers dwindled and the route was dropped in 2009.Nine years later the governor realised that the hour-long drive to the airport was a backward step and looked for a way of speeding up the journey. And so, Oita has come full circle with three new 45-knot craft, made by Griffon Hoverwork in the UK, and a sparkling new terminal in Nishi-Oita. Oita has big ambitions for the 30-minute route: the projections are for 300,000 to 400,000 passengers annually and, since it will be the only hovercraft route in Japan (the world’s only other year-round passenger service runs from Portsmouth to the Isle of Wight in the UK), it should attract tourists too. Aside from trips to the airport, weekend excursions around Beppu Bay are planned. The craft have been named by the public as Tanso, Baien and Banri, after three Confucian scholars. The prefecture is anticipating an economic ripple effect to the tune of ¥61.4bn (€379m) over the first 20 years. E-motors: FranceFresh startThough most motorcycles still use petrol, the industry is undergoing a transition thanks to entrepreneurs such as Simon Dabadie, founder and CEO of DAB Motors, a boutique electric-motorcycle brand based in Bayonne in southwest France.An engineer with deep roots in the industry, Dabadie started the company in his garage six years ago. “I wanted to make something disruptive, not just a mobility instrument,” he says. “Humans need emotion and beauty, even in machines. We infuse culture, technology and just the right touch of madness in our designs.”Initially noticed for its petrol bikes, DAB Motors shifted gears to an electric concept in 2021.  “We forgot everything we know about motorcycles. The beauty of electric motorcycles is that you can start from scratch.”The challenge, however, is scaling production without compromising on design. “We have huge know-how in Europe, in automotive and motorcycle manufacturing,” he says. “I want to keep this local approach when we are manufacturing our bikes. We decided to make fewer products but do them really well.”With high-profile collaborations with Burberry and the company’s acquisition by Peugeot Motocycles last year, DAB’s presence at the top of a niche market is solid. The company is due to launch a limited-edition run of 400 bikes, the DAB 1a, made at the Peugeot factory in Beaulieu Mandeure.Dabadie (pictured) hopes that his creations will transform mobility in urban environments. “I would love to see our bikes travelling in cities, solving the problem of noisy scooters and making people smile.”The EntrepreneursGregory Scruggs on: Wheels of fortuneUK-based Icelandic entrepreneur Gunnlaugur Erlendsson, founder and CEO of tyre start-up Enso, is obsessed with tyres. He sees the topic as an underappreciated issue facing the world’s transition to cleaner transport. Electric vehicles, for all their benefits, are heavier than their non-electric counterparts so they send tyres to the landfill more quickly. That suits the tyre industry, which is eager to simply sell more just fine. Traditional tyres also generate dust particles that worsen air quality and poison waterways. “The world economy runs on tyres but we never really think about them,” says Erlendsson.He founded Enso in 2016 with a mission to build longer-lasting and less polluting tyres with higher-quality raw materials. After years of research, the company began production at an Algerian plant and subjected the new tyres to a year-long Transport for London trial. They were shown to reduce emissions by 35 per cent and extend EV driving range by 10 per cent, essential improvements for fleet vehicles operating in the UK capital’s Ultra-Low Emission Zone. Today some 1,000 London taxis roll on Enso tyres.Enso was a 2023 finalist for Prince William’s Earthshot Prize but Erlendsson (pictured, on left, with the prince) has his sights set on market share as much as accolades. By December, Enso tyres will be sold in the US, the world’s second-largest automotive market. In June, Enso signed a letter of intent with the US Export-Import Bank to invest $500m (€463m) in a manufacturing facility slated to open in 2027. At full capacity, the factory could make 20 million tyres, or 8 per cent of the domestic market. No one company currently dominates the US tyre market, which makes it ripe for newcomers. “It’s not enough for us to just develop the technology,” says Erlendsson. “We need to actually put these tyres on the market at scale.”For more ideas that are gaining traction, listen to Monocle Radio’s business programme, ‘The Entrepreneurs’.

Five property experts on how we can harness evolving landscapes
Business 2026-06-27 11:33

Five property experts on how we can harness evolving landscapes

1.The diverse business districtMore bang for your buckCéline CrestinThe high-rise office towers of the Parisian business district of La Défense are home to more than 500 companies and 180,000 office workers. The pandemic not only changed what the buildings are used for; there has also been a shift in what people want from their workspaces, including more common areas, multi-use spaces and access to good restaurants, shops and recreational activities. We have seen a shift towards co-living.But the key to making sure that La Défense continues to grow and thrive is by mixing functions. Each building should have a floor that is open to the public. We’ve had much success with designing events, including exhibitions and festivals, that interest office workers, students and residents alike. We have been working together with businesses and residences to understand how this neighbourhood should look and function. It’s about bringing people into the area who might not have visited before. But it’s also about giving opportunities to office workers to experience the district in a different way. We hope that this approach will make La Défense the model for the business district of the future.Since it was first established in the 1950s, Paris’s La Défense has defined not only the French capital’s skyline (it is home to the first skyscrapers built in the Paris metropolitan area) but also its financial markets.Crestin is the district’s chief strategy and sustainability officer and is responsible for making sure that the iconic neighbourhood hits its environmental goals.2.The role of the developerBalancing actJin LinAs a developer you have the opportunity to change city skylines. Because of this, the quality of buildings is something that we at Aqualand are very focused on. Once a building has been built, it’s a perpetual part of a city’s image, so the decisions you make during the development process need to be precise and you need to respect the land you’re building on.I have the strong view that land is a one-time opportunity: if you deliver an ugly building, it will always look that way; if you deliver a beautiful building, it will always be beautiful. Buildings outlive humans and are like sculptures, works of art, that belong to the entire city. As such, developers have a responsibility to deliver projects that aren’t just suitable from an economic perspective but also have a long-term benefit to a city’s urban design.Doing so requires patience. With Central Barangaroo in Sydney, for instance, one of Aqualand’s landmark projects, it took many years because we worked closely with the government. In the past, I’ve walked away from developments that completely worked at the feasibility level because I wasn’t satisfied with the overall urban design.“Developers have a responsibility to deliver projects that aren’t just suitable from an economic perspective, but also have a long-term benefit to a city’s urban design”In Sydney, we also hope to address the city’s ongoing housing crisis through a new scheme that focuses on low-to-mid-rise projects. We recognised that large-scale developments typically take at least five years to come to fruition and so we are focusing on smaller, shorter projects. By entering this sector and completing boutique developments more quickly, we hope to free up and provide more housing stock.Low to mid-rise development is exciting because they’re often mixed-use and community-focused. We see our buildings as hardware and the local businesses and projects that fill the developments and activate the precinct as the software. They’re both equally important.Aqualand Groupis an award-winning Australian owned and operated luxury property, hospitality and investment firm.Lin is the managing director and, over the course of a decade in the role, has overseen a slew of major projects overlooking Sydney’s iconic harbour.3.The importance of being preparedGame planCaleb DunnWhat has previously built wealth and property portfolios has been the mindset that if we put a few million pounds, dollars or euros into a particular transaction, then review tenants’ rent every five years, income will go up and up. As a result, detailed scenario planning was often put in the “too hard” basket and the outlook that, “Hey, we’ve done this before, we know how to succeed,” was prevalent.But that’s all had to shift due to new and different demands in the market. You have the “hotelification” of the office and expectations for services to come with apartments, so the return for investors is far different. Before, particularly in commercial properties, you could be very hands-off and make a lot of gains. But the expectations from tenants or clients are now extremely different.“As an owner, would you know what you’re going to do if a tenant does leave? Are you prepared to take on development risk and change the use of the building?”Owners and investors now need to be even more prepared for a situation to change rapidly. Tools are needed to quickly assess things like rapid increases in interest rates and delayed development time, which affect borrowing costs. Having scenario planning completed is important. For instance, as an owner, would you know what you’re going to do if a tenant does leave? Are you prepared to take on development risk and change the use of the building? Or are you going to put in a concierge and amenities, which is going to increase your chances of getting a higher rent, and increase your return on an investment?By thinking these things through, rather than just relying on the traditional outlook that property is a super-solid investment – and the mindset that, “We’re always going to have a tenant in this building because commercial real estate is a safe bet” – owners can be proactive, rather than reactive, and not risk losses when circumstances change. This is why being agile and planning for downside – as well as upside – is extremely important. Today, what got you here won’t necessarily get you there.After working in property and technology for nearly a decade, Dunn co-founded Pantera, noticing his clients’ need for software that could quickly and accurately create robust cash flows and investment models –his proprietary software does just that.4.The downtown sceneFocal pointsFrançois TrauschSince March 2020 people have been concerned about what to do with their office space. My initial hypothesis, near the start of the pandemic, was that if you drew a concentric circle of 5km around each city centre, the office buildings within that ring would probably do well and those outside it would struggle.We now know that in Europe and in Asia this is mostly true: tenants congregate towards the inner city, choosing to give up suburban offices. But this hypothesis was wrong in the US. In city centres in the likes of San Francisco, the downtown is struggling. This problem stems from the fact that, in the US, commutes are typically longer, which means the question for office owners is, “Does my building and its neighbourhood earn my commute?” If not, people tend to stay at home.In Europe, businesses aren’t facing this challenge: people tend to need to be huddled together to solve problems and work. Despite this, the average occupancy of an office is 50 per cent over the course of a week – at peak times it’s 70 per cent but on Fridays as low as 20 per cent. This means that you still have to cater for that peak period.So offices are still essential. We need to think about what we do with them outside peak times; how we can make them earn the commute. Do we put a playground on the roof or does the space find another use at night? It’s about making sure that the buildings in our cities are appealing and used for different purposes.Trausch is managing director of PimcoandCEO of Pimco Prime Real Estate. He is regularly on the Mipim jury and is a global trustee of the Urban Land Institute.5.The local championCommunity serviceOlaide ObohIt’s a travesty that in some of our major cities we’re creating significant developments and the local community doesn’t benefit positively from them. At Socius we have made people, not just property, our business. We realised that, as a developer, we can have an effect on people’s lives that goes beyond just housing them; we have the ability to address the health inequalities that individuals and communities face and to create education opportunities.One of the bigger challenges you face as a developer is addressing ingrained, multi-generational issues. For instance, we’re working in Cambridge: to the surprise of many, it’s one of the most unequal cities in the UK, with significant levels of deprivation. To try to turn this around, we have put boots on the ground, meeting the community to understand what the issues are and identifying which people we need to work with to address them. It’s important for us to build such connections before construction. And once the buildings are built, we don’t walk away. We continue to create the right infrastructure so that the buildings and community can continue to thrive over the long term.All of this is looking to address the element of mistrust associated with developers. It’s not just PR; it’s about credibility.Oboh is an executive director at Socius, aproperty developer that focuses on building relationships with partners and developing mixed-use neighbourhoods.

The colourful story behind the Danish paint giant’s state-of-the-art coatings
Business 2026-06-27 11:15

The colourful story behind the Danish paint giant’s state-of-the-art coatings

Farrow&Ball is known for its outré colour names that include “Elephant’s Breath”, “Arsenic” and “Dead Salmon” but the company that owns the UK paint-maker has more than the luxury interiors market covered. Hempel A/S, a 109-year-old Danish company that owns various brands such as Crown, also manufactures cutting-edge coatings including those that adorn London’s Tower Bridge, the Louvre Abu Dhabi and Amsterdam’s Schiphol Airport. Elsewhere, its innovations can be glimpsed on the exteriors of oil rigs and gas platforms, as well as wind-turbine blades and ship’s hulls. All are rigorously formulated to reduce drag and pollution, and dazzle for far more than their hue.Inside Hempel’s airy headquartersWatching paint dry has never been this fascinating or this lucrative: in 2023, Hempel’s revenue grew by a record 13.7 per cent to €2.4bn. “Our marine business has seen huge growth in the past three years,” says Michael Hansen, Hempel group president and CEO, when Monocle meets him just north of Copenhagen at the company’s headquarters in Lundtofte. “Shipping is experiencing a paradigm shift. The focus now is on the environment and decarbonisation. Our marine coatings are here to help these organisations achieve their goals and if we can solve the biggest challenges facing the wind-energy industry, there is potential for real growth there too.”The technicians in the research and development technology centre downstairs are busy tackling these issues. As we don anti-static overshoes, goggles and white coats, formulations specialist Camilla Holmberg informs photographer Mathias Eis that, due to the solvents used, this is an ATEX (“explosive atmosphere”) zone. For safety reasons, he’ll need to shoot at a minimum height of 80cms.First we visit the Colour Room, which is painted the most neutral of greys, where colours can be assessed under all sorts of lighting conditions. Next, Holmberg hands me a tongue of polyurethane paint that is used to coat the blades of wind turbines. Rain is an existential threat to offshore wind farms. In testing, Hempel subjects the blades to its helicopter-engined weather simulator and they come out looking like they’ve been gnawed by a colony of vicious rabbits. The paint’s rubbery texture counteracts this by enhancing wind resistance and providing protection against adverse conditions. Another of its miracle paints can help to maintain the integrity of burning buildings by puffing up to 50 times its original volume. It can withstand temperatures of 500c and is typically used for oil refineries but also coats the steel frame of Schiphol Airport.Paint samples in the Colour RoomCamilla Holmberg, formulations specialistHansen is particularly proud of Hempel’s newer marine coatings: one protects hull interiors against brutal cargos while also being easy to clean, enabling a quick turnaround in ports; another super-slippery, self-polishing, silicone-based external paint can reduce drag, and therefore fuel usage, by more than 17.7 per cent. There’s even a special paint to smooth over vertical welds on a ship’s outer hull. “This is really cool because welds are structural and you can’t grind them down,” says Hansen, taking nerdy delight in the details. “Using our paint on welds alone can reduce fuel consumption by 2 to 3 per cent. And it’s biocide-free, so it’s non-toxic.” To demonstrate the challenges faced when applying marine paints, Holmberg shakes a bottle of tomato ketchup. “To paint a ship, you need to be able to spray it but it mustn’t run or drip,” she says. “Just like ketchup when you shake it out of the bottle, it has to flow with the perfect consistency.”In this context, Hansen’s move from shipping to paint, after 19 years at Danish shipping giant Maersk, doesn’t seem like such an odd career change. As he notes, Hempel started out in 1915 and Maersk was its first major customer. It was responsible for formulating the trademark “Maersk blue”. There are similarities between the company’s founders too. “Like Maersk, JC Hempel was a very entrepreneurial, outward-looking and innovative man: he went into the Middle East and Asia in the 1960s, for example,” says Hansen. “In addition to this, he firmly believed in moral responsibility.”This mindset led Jørgen Christian Hempel, who died 1986 aged 91, to effectively give away his fortune in 1948 when he created the Hempel Foundation, which is still the sole owner of the company. “He did it primarily to protect the group from a hostile takeover but over the past 20 years it has grown as a philanthropic foundation, giving more and more to charity,” says Hansen. Many of Denmark’s larger organisations, such as Lego, Maersk and Carlsberg, have separate charitable foundations but it is rarer for an entire company to be owned and run by them. It does have implications when the company needs to raise funds, though. “True, it means that we have to live from our own retained earnings but we want to be the industry leader in sustainability. For that, it is an advantage to have the foundation’s long-term approach. Above all, the fact that our dividends go to philanthropy gives the people who work here a huge sense of purpose.”CEO Michael HansenThe R&D lab’s paint storage“The foundation is a major reason why so many people are drawn to roles at Hempel,” says Pernille Fritz Vilhelmsen, chief people and culture officer. “When we go to work, we know that our proceeds are not going straight to shareholders or an owner but towards doing good. It is a unique proposition in terms of employer branding and we do use it in recruitment.”This purpose-driven loyalty is one of the reasons why Hempel is considered to be among the best companies in Denmark to work for. Its HQ is appealing too. Built by Swedish architects Sweco, it has a central spiral staircase that emulates a can of paint being stirred. There is a fully staffed canteen and working hours are flexible. “Our Danish business is [financially] insignificant but we are still inspired by the country’s values,” says Hansen, who took over the top post a year-and-a-half ago. “We put our people first because innovation doesn’t come from nowhere. It also makes sense to be in Denmark. It’s easy to reach the rest of the world from Copenhagen; the reputation for quality of life here means that we attract overseas talent; and we have access to educated labour.” Since 2017 the Hempel Foundation has supported a science and technology centre within The Danish Technical University (DTU) that specialises in sustainable coating solutions. Once they have concluded their studies, many graduates join the organisation.Barnacles on a sample of a ship’s hullPernille Fritz Vilhelmsen, chief people and culture officerHempel’s business is divided into four sectors. Besides its marine, infrastructure and energy ventures, it also runs a decorative operation. Under this umbrella is paint and wallpaper company Farrow&Ball, which was founded in 1946 in Dorset, England, where it is still based. In 2021 it was bought by Hempel from US private-equity firm Ares for a reported €580m. The decorative arm also includes Crown Paints and JW Ostendorf in Germany. Farrow&Ball showrooms and Crown Decorating shops make up some of the 200 or so high street shops that Hempel runs in the UK. “Sometimes I wonder why we aren’t solely available online but the painting and decorating industry is surprisingly conservative,” says Hansen. “It turns out that professionals love to come into the shops for a cup of coffee before they start their day. It’s a big part of the appeal.” The decorative sector boomed during the coronavirus pandemic but has been hit by energy and material price hikes over the past two years. “There are still real challenges,” says Hansen. “Decorative hasn’t recovered yet.”Ana Henriques, Hempel’s executive vice-president, head of decorative, is partly responsible for nurturing the sector back to health. Henriques joined the company from AB InBev in New York and has faith that the consumer brands can innovate their way back to greater revenues. “Farrow&Ball has always been a pioneer: we were the first to have showrooms rather than just traditional paint shops,” says Henriques.Protective clothing at the lab’s entrance“We have also embraced working with colour consultants, e-commerce and collaborating with designers. These days we are very well connected with influencers and a have a more-than-two-million-strong following on social media. But what comes first is the quality of our products, which are known for their richness and depth of colour.” In total, Farrow&Ball uses 12 different pigments to blend its 132 current shades. Historically, pigments would have come from a wide range of unusual sources: “India Yellow”, for instance, was once made from the urine of cows fed on a diet of mango leaves. Today they are all chemically created. The company is in the middle of gently revamping its colour range – something that happens every five years. The expectation this year is that surfaces that were painted at the height of the coronavirus pandemic will be looking a little tatty. “It has been a while since everyone redecorated,” says Henrique.The air that we breathe in our homes and offices is a major topic among Danish architects right now. Volatile organic compounds (VOC), which are released when paint is applied, and over the longer term, are of particular concern. “Farrow&Ball was the first company to go 100 per cent water-based,” says Henriques. “People want their homes to feel healthy: they don’t want the smell of paint to linger, which means that they are going for low VOC options [Farrow&Ball paints are low-trace VOC – the best rating]. They also want to use colour to create specific moods.”Paint the town redMarine paint being mixed in Hempel’s labHempel by numbersEmployees:7,500 in total (including 400 in the Danish HQ, 1,600 in the UK and 1,000 in China).Total amount of paint produced:More than 400 million litres in 2023.Number of Hempel paint shades:6,500Number of factories:26; plus 15 R&D centres.Branding:The Hempel logo represents the helix of a stirred can of paint.The Hempel Foundation:Has total assets of €848m and donated more than €24m in 2023.Customers can enlist the help of Farrow&Ball’s colour-consultancy service, which sees a representative visit homes to suggest a palette of calming tones or energising combinations. Before the end of the year the company will also offer an upgraded virtual service. It will then be possible to scan rooms, furniture included, on your phone and see the effect of different paints.As a global company, Hempel employs a cross-cultural approach to colour and finish. “We have colour-trend teams who keep an eye on textiles, fashion, ceramics and social media,” says Henriques. “For instance, customers in the Middle East look for external paint in natural shades, you won’t see dark colours on houses and finishes need to withstand sand erosion. Cooler climates tend to like yellowish hues. In hotter climates, where the use of whiter indoor lighting is more widespread, colours appear differently. Big, bold reds are having a moment in Germany but in Scandinavia everything is white. Different countries are also drawn to different textures: in the US, smooth surfaces appeal whereas in Germany more ‘movement’ is allowed.” Even the way in which professionals work with Hempel varies. “In Germany, people prefer to use an oval paint bucket so that they can dip the roller straight in, unlike in other places, where they use trays.”Looking ahead, the popularity of cold greys is waning and warmer tones might be returning to favour. But right now, Henriques detects a definite lust for coatings with depth. “Very rich green is having a bit of a moment,” she says, nodding emphatically.

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