Environment

More love for Naomi Osaka

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20yo Naomi Osaka deserves every success she gets. She is without doubt the hottest marketing prospect globally. There is no media spin or polish with her on any level. She is authentic in the extreme. No prima donna antics or bragging. If anything her press conferences since returning have defined her as ‘what you see is what you get.’ Humility and grace. Pray we get more millennials like her. She shows one doesn’t have to beat their chest in ridiculous ways to get attention.

No wonder Adidas want to throw $11.9m per year to sponsor her. As a Nissan ambassador, despite her media appearance in front of the Leaf electric vehicle, when asked Naomi just let her inner petrol head scream her favorite car – the GT-R. Lucky for her she will get one in white.

The world of tennis couldn’t have a better ambassador for the game. Let’s hope that the media don’t pry too deeply into her private life (good luck with that) and her sports manager doesn’t put her on a multi-year roadshow from hell to please sponsors which would put any star to the test.

NYT – try doing some research for a change?

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It is true that many airports are built near sea level. In fact many airports are built around swamps/marshland (less suitable for residential areas) which actually makes aircraft more susceptible to avian events (bird strike) than crashing sea waves. So how convenient it must have been to The NY Times to blame the recent terrible typhoon in Japan on climate change when in reality Kansai International Airport’s well known drainage inadequacies were exposed. The airport opened in 1994 and engineers quickly realized it was sinking through poor design. It needs to pump water out constantly to prevent it from drowning. It has zero to do with rising sea levels but the softer base beneath the waves. Yet The NY Times wrote about the plight of stranded passengers and how it portended their imminent peril. Puhlease.

So why didn’t NY Times journalist Hiroko Tabuchi write about the UN IPCC’s own climbdowns from their alarmism in recent years? Note climate skeptics did not write these claims. No, it was easier just to join two dots together without facts.

The IPCC wrote with respect to heavy rains:

“there continues to be a lack of evidence and thus low confidence regarding the sign of trend in the magnitude and/or frequency of floods on a global scale“

With respect to storms and cyclones:

confidence in large scale changes in the intensity of extreme extratropical cyclones since 1900 is low. There is also low confidence for a clear trend in storminess proxies over the last century due to inconsistencies between studies or lack of long-term data in some parts of the world…Over periods of a century or more, evidence suggests slight decreases in the frequency of tropical cyclones making landfall in the North Atlantic and the South Pacific, once uncertainties in observing methods have been considered. Little evidence exists of any longer-term trend in other ocean basins…”

As for rising sea levels impacting Pacific Islands.

Professor Paul Kench of the University of Auckland and Australian scientists have shown in a study of 600 coral reef islands in the Pacific, 40% are growing in size, 40% are stable and 20% shrinking…

Yet The NY Times went further. Who knew Roger Federer was also a victim of climate change?

US Open performances. 

Well the brilliant minds of The NY Times suggested Federer’s loss was caused by global warming even though it was 0.19 degrees above average. Maybe that is why Serena got hot under the collar? Or was it because 20yo Naomi Osaka’s youth allowed her to weather the heat more effectively?

Air Travel

Yet the true litmus test of humankind’s blind panic is best described by the IATA’s air traffic forecasts which point to a doubling of air traffic by 2030. It is only fair that the general population follow in the footsteps of the 50,000 climate disciples that fly half way around the world every year to COP summits to kneel at the altar of the IPCC to warn us of being destroyed by our recklessness.

Once again, ridiculously researched junk journalism is put forward by a paper that assures us “All the news fit to print.” Joke.

#MakeActivismGreatAgain

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There is a sense of irony that Democrat Party protesters still fail to get. Boycotting business doesn’t work very well. In fact the opposite could well be true. This is a picture from the front of In-N-Out burgers on Sept 2, the day after Democrat activists called for a boycott for the fast food chain donating $25,000 to the GOP in California. Why didn’t they protest and call for a boycott when the same burger chain donated $30,000 to the GOP in 2016 and again in 2017? Shouldn’t they be embarrassed for their inconsistency? Perhaps they could thank the burger chain for reducing the size of the donation? One thing is for sure Democrats need to make blue caps with ‘MAKE ACTIVISM GREAT AGAIN”

When people boycotted the NRA post the Florida school shooting, membership surged. It seems more Americans are growing tired of this constant harassment.

There is a pattern from boycotts. People can decide for themselves if they abhor such donations. They don’t require a bunch of idle pot smoking basement dwellers to yell at them and tell them how to spend their hard earned dollars.

Even in Australia, activists called for a boycott of supermarket chain Coles for reintroducing plastic bags to convenience customers. Despite studies by the UK Environment Agency which showed that man made reusable “eco bags” we’re told are so green would have to be used 286x to match the environmental footprint of the single use HDPE disposable shopping bags they replaced. If people dispose of rubbish in these same bags (using them twice) then the eco bags would be required to be used 572x to offset the environmental impact. Ironically if people can’t use such bags for their rubbish they’re forced to buy plastic bags off the shelf to do so meaning plastic consumption is neutral, not reduced.

As these activists conjure up new schemes to makes us feel bad they probably do so sipping a latte from Starbucks in a paper cup. The cost to recycle the 500 billion (and rising) coffee cups consumed annually is so astronomical (it is hard to separate the wax that stops the cup disintegrating because of the energy intensity involved to do so) that over 90% end up in landfill. No one talks about that 300 million tons of virgin paper used to make these cups! How many of us give it one thought when we need a shot of caffeine? Right?! Although Starbucks is trialing a 5p latte levy for those that elect to use a paper cup. In any event no protest.

Boycotting businesses seems to help their fortunes so keep up the good work! Perhaps they should work it into being a platform policy such is the unbridled success

Musk to be investigated by SEC over tweets

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CM has always thought that Elon Musk is the ultimate salesman. CM has also wrote that the biggest risk to being a short seller was then”cult” status of the company. On any rational investment grounds the stock is ridiculously priced but as the old adage goes, “the market can stay irrational longer than you can remain solvent!

Tesla is a car company that is worth more than GM, Ford & FiatChrysler combined. One that trades at 5x Daimler in valuation terms, a luxury competitor that is in the sweet spot of its product line up and rudely profitable.

Back in June, Musk bought $35mn worth of shares in Tesla. The whole idea that someone is willing to fork out $75bn on a whim seems somewhat implausible. Is it safe to assume that all of 100s of lawyers, bankers and brokers would need a little bit of time to prepare the necessary documentation to cement such a ridiculous sum? Or is money now just so free and easy that a billionaire deploys a vault full of cash loaded full of Zero Halliburtons into a private jet after a few phone calls?

SEC enforcement attorneys had already been gathering general information about Tesla’s public statements on manufacturing goals and sales targets. Now SEC attorneys are investigating whether his tweets about securing funding were factual.

CM is not accusing Musk of insider trading albeit as a matter of course the SEC should investigate when he knew about his mega financier. One wonders how it is that we know so little about the buyer, the term sheet, the question of shareholder approval and how “secure” it is? Taking it private will remove the lens of quarterly reporting but it doesn’t remove the fact of how dreadfully the company is run or how amateur production is. Even if public scrutiny is removed, the problems of profitability don’t disappear and the need for funds, credit ratings etc if he taps public markets for debt capital remain.

If Musk pulls it all off and the company becomes a roaring success then CM will gladly eat a whole humble pie and openly admit it was wrong.

As to the SEC investigation let’s hope it has learnt the lessons of its bumbling incompetency over Bernie Madoff and doesn’t miss anything that might be bleeding obvious.

Amazon’s Auschwitz?

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The Japanese Communist Party’s “Red Flag” newspaper wrote an article about the deaths of three Amazon Odawara warehouse workers. The article has been pulled down from the party homepage. The reality is that families of the dead never sued Amazon as the cause of death were deemed private matters. The Labor Safety Inspection Office never ordered remedial action to be taken after the deaths.

However the blogs about the warehouse are calling it “Auschwitz” because of low wages and long hours causing fatigue. In any event it seems that the Communist Party took it down on the basis that “Auschwitz” was deemed an inappropriate comparison to the plight of the factory workers at Amazon’s warehouse operations in Odawara.

The Japanese Ministry of Health, Labor and Welfare (MHLW) has been going to great lengths to improve work-life balance (e.g. Premium Friday) and limiting overtime to 100hrs a month and 720 hours per year.

Perhaps the MHLW could move to enforcing a minimum 10 working days holiday for staff. It is not hard to find holiday packages to Europe or America for  4 nights only. Hardly the ideal way to wind down.

Yet we mustn’t forget that Japan is not capitalism with warts but communism with beauty spots. Often change has to be driven at a government level because businesses are too afraid to make even boldly common sense moves by themselves for fear of losing face. Take former PM Koizumi’s “Cool biz” programme that encouraged companies to allow workers to abandon neckties and jackets in summer to combat the heat combined with power restrictions. Corporations were too afraid to think outside the “box”. The state needed to rubber stamp it as a norm.

#boycottyourself next time you buy take-away coffee

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Poor old Coles. In an attempt to listen to its customers over plastic bag use, activists push for a boycott against the supermarket chain! Yet why aren’t these same activists openly protesting in front of department stores or retail chains who brazenly use plastic bags to help their customers carry often bulky items? Why aren’t take away food court vendors openly shouted at when handing over plastic cutlery? Why is Coles subject to social media thuggery when the plethora or other retail chains escape? Talk about double standards.

While we’re at it, do people realize that the majority of take away wax-lined coffee cups aren’t recycled even though you can feel good about yourself when disposing of it? How many people elect to have their brew poured into a ceramic cup? Look net time – hardly any! The cost to recycle the 500 billion (and rising) coffee cups consumed annually is so astronomical (it is hard to separate the wax that stops the cup disintegrating because of the energy intensity involved to do so) that over 90% end up in landfill. No one talks about that 300 million tons of virgin paper used to make these cups! How many of us give it one thought when we need a shot of caffeine? Right?! Although Starbucks is trialing a 5p latte levy for those that elect to use a paper cup.

A decade ago, Japanese retailer Fast Retailing publisher in its annual report:

Additionally, in December 2007 UNIQLO introduced polyethylene shopping bags using the “Nano Hybrid Capsule 2 (NHC2) additive.” These were researched and developed by Professor Masahiko Abe at the Science and Engineering Department of the Tokyo University of Science. NHC2 helps increase the strength of the bag and reduces its weight by roughly 20% and CO2 emitted during incineration by about 40%. This new shopping bag thus reduces about 60% of CO2 emitted altogether compared to the previous model.

Most supermarket shopping bags used in Australia before the self-imposed ban were biodegradable.

In 2006 the UK Environment Agency did a study on the effectiveness of alternative packaging solutions to HDPE (conventional plastic bags) in terms of lowering environmental impact. It said,

The paper, LDPE, non-woven PP and cotton bags should be reused at least 3, 4, 11 and 131 times respectively to ensure that they have lower [impact] than conventional HDPE carrier bags that are not reused.”

So if conventional shopping bags are used to throw out garbage that means 6, 8, 21 and 262 days.

So we can virtue signal all we like. No one wants to see irresponsible use of disposable plastics cause damage to the environment but this idea that some think government intervention is the answer is palpable. In Australia’s case, after examining the most ridiculously incompetent stewardship over power generation in a country endowed with cheap energy sources (we manage blackouts and $1200kWh surges in spot pricing) they have none of the prerequisites to manage disposable shopping bags.

Coles comes to its senses that the consumer is always right

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What rubbish! Literally! The plastic bag ban in supermarkets in Australia was only ever a sop to green madness based on spurious science. Coles and Woolworths didn’t consult customers as much as they claim they did. If they did, why has Coles started to provide them for free again? Could it be a consumer backlash? Let’s see how much more business Coles does as a result!

The idea of a spontaneous shop on the way home from work. Perhaps the sick wife has asked her husband to buy milk, bread, a sack of oranges and ice cream. People want convenience. That doesn’t absolve them of being responsible stewards in their disposal. CM reuses the bags for disposing rubbish. Why should CM be punished for the laziness of others?

In a nutshell it is further evidence of the true colors of the majority of consumers with respect to environmentalism. Just like people that buy SUVs and fly overseas on holidays. Most want others to do the “save the planet” thing on their behalf. Just ask Leo DiCaprio or Cate Blanchett. They’ll preach about our need to do our bit but are the first to board a private jet to go to the next film festival.

This Coles news made it to the Japanese press. Supermarket chain ‘OK Store’ charges ¥6 for a plastic bag or you can make a box from all of the packing the food arrives in which costs nothing. After packing your box you can recycle the cardboard in the paper bin. Simple.

Yet what is this constant penchant to boycott everything. A sort of collectivist pitchfork movement.  Why not just let consumers express their free choice? If Coles see consumers reject the restoration of plastic bags they’ll take them away just as quickly. Tired husbands forced to do an emergency shop for a sick wife don’t require social justice warriors to give evil glances on the bus.

For CM, the next shop WILL be at Coles.