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News Digests

Stay abreast of what’s happening internationally with developments in corporate public affairs. Here is news that you may find useful and interesting:

Robots creating a wages and employment 'death spiral' warns IMF ND


Stephen Letts, ABC News, Wednesday May 23 2018

According to an International Monetary Fund research paper, the future of automated work appears to be a dystopian march to rising inequality, falling wages and higher unemployment. The research looked at a range of scenarios, from modest substitution of labour by robots and AI to a world where they take over all traditional technologies. In call cases, “automation is good for growth and bad for equality,” the study found. “In scenarios where the traditional technology disappears and robots take over the automatable sector, the economy either ascends to a virtuous circle of ongoing endogenous growth or descends into a death spiral of perpetual contraction," the IMF report said. "Unfortunately, the odds strongly favour the death spiral."

For the full story see www.abc.net.au/news

Smart traffic lights which always turn green to be trialled on Britain's roadsND


Francesca Marshall, The Telegraph, Wednesday 23 May 2018

New smart traffic lights that will always turn green are to be trialled on Britain’s roads, it has been announced. The smart lights are designed to put an end to stop-go driving, and will advise motorists of the speed they should drive at in order to arrive at the next set of lights when they turn green. Part of the desired outcome of the lights is to help create roads for driverless cars, and the concept is one of five shortlisted entries into a competition by the National Roads Commission, Highways England and Innovate UK to this end. The scheme, designed by engineering firm AECON, will be tested using a simulation model of the A59 in York. It is hoped it will cut congestion and reduce emissions through more efficient driving. “We are excited and are eager to get started so we can better understand the potential impact of vehicle-to-infrastructure technologies on our local road network in York,” Heather Hawkings, AECOM principal consultant, said.

For the full story see: www.telegraph.co.uk

Netflix partners with Barack and Michelle Obama to produce 'inspiring' films and TV showsND


Alle McMahon, ABC News, Tuesday May 22 2018

Netflix has signed a mammoth deal with Former US president Barack Obama and first lady Michelle Obama to produce a series of films and TV shows for the worldwide, on-demand streaming service. The former first couple say they’re looking forward to producing ‘inspiring’ content, but critics say the deal is just further evidence of the liberal propaganda prevalent on ‘Leftlix’. While not specifying exactly how long the deal is set to last, the official statement described it as a ‘multi-year agreement’ which could include scripted and unscripted series, docu-series, documentaries and features. "Barack and Michelle Obama are among the world's most respected and highly recognised public figures and are uniquely positioned to discover and highlight stories of people who make a difference in their communities and strive to change the world for the better," Netflix's chief content officer Ted Sarandos said.

For the full story see www.abc.net.au/news

That summer food stand job is no longer just for teenagersND


Kim Severson, The New York Times, Tuesday May 22 2018

The kinds of summer food memories many of us had from summer jobs selling churros or hot dogs are fading fast, with more and more of these jobs going to temporary workers from other countries or local adults trying to make the gig economy work for them. Although youth employment in the US still spikes in the warmer months, the number of teenagers in the summer labour force fell to 43 percent in 2016 from almost 72 percent at its peak in 1978. There are many reasons for this. School started going for longer, employment laws became more restrictive and scooping cones over summer was no longer considered a worthy CV builder. At the same time, demand for summer workers rose. And as vacationers started arriving earlier and staying later, employers began making use of workers from other countries with H-2B visas, which are granted to business that have specific kinds of seasonal work. But under the Trump administration, changes have been made to these visas in order to protect American jobs. Such changes may mean that some business relying on foreign seasonal workers will be unable to open this summer.

For the full story see www.nytimes.com

A new policy at Starbucks: people can sit without buying anythingND


Jacey Fortin, The New York Times, Sunday May 20 2018

Last month, Starbucks was at the centre of a scandal caused by an employee who called the police on two black men who would not leave the café after being denied use of the restroom as they hadn’t bought anything. Starbucks’ actions prompted boycotts, protests and accusations of racism. Now, Starbucks has changed its policy, saying that “any customer is welcome to use Starbucks spaces, including our restrooms, cafes and patios, regardless of whether they make a purchase.” The men who were arrested at the Philadelphia store, Rashon Nelson and Donte Robinson, were waiting for another mean, Andrew Yaffe, who is white, for a business meeting on April 12 when the officers arrived. Their arrest was captured on video, now viewed millions of times on social media. “What did [the police] get called for? Because there are two black guys sitting here meeting me?” Mr Yaffe asked in the video. The company said it had reached a “confidential financial settlement” with Mr Nelson and Mr Robinson, and the men also made a deal with the City of Philadelphia, with each man accepting a symbolic $1 and accepting a pledge by the city of $200,000 to help young entrepreneurs.

For the full story see www.nytimes.com

Women are less likely to be replaced by robots and might even benefit from automationND


Fabrizio Carmignani, The Conversation, Thursday May 17 2018

According to research, women are better positioned than men to resist the automation of work and possibly even benefit from it. Women are overrepresented in industries that require high levels of social skills and empathy (like nursing, teaching and care work), where it would be difficult to replace a human worker with automation. In advanced economies, women also have on average higher levels of education and digital literacy, giving them a competitive advantage in a labour market continually transformed by digital innovation. This does not mean that automation will eliminate any form of gender gap in the labour market, but it does mean that women have less to fear than men from the advent of robots.

For the full analysis see www.theconversation.com/au

Facebook disabled 583 million fake accounts and millions of spam, sex and hate speech postsND


Tony Romm & Drew Harwell, The Washington Post, Tuesday May 15 2018

Facebook has removed more than half a billion fake accounts and millions of pieces of violent or obscene content during the first three months of 2018. Such a magnitude of posts highlights the massive task ahead in cleaning up the world’s largest social network, where artificial intelligence and human moderators have joined forces to fight back a wave of offensive content and abuse. As well as fake accounts, Facebook said that it had removed 21 million pieces of content featuring sex or nudity, 2.5 million pieces of hate speech and almost 2 million items related to terrorism by al-Qaeda and the Islamic State in the first quarter of 2018. Despite such progress however, Facebook still has issues coming from regulators in Europe. In the U.K., Facebook again resisted a request from British lawmakers to testify as part of their investigation into Cambridge Analytica. Facebook said that Zuckerberg has ‘no plans to travel to the UK’ in a statement Tuesday. “If Mark Zuckerberg truly recognises the ‘seriousness’ of these issues as he says he does, we would expect that he would want to appear,” one British MP said.

For the full story see: www.washingtonpost.com

Google investigated over massive data collection that could be costing consumers 'millions'ND


Margi Murphy, The Telegraph, Tuesday May 15 2018

Google is being investigated over claims smartphone owners are paying for the company to harvest their location data, potentially costing consumers millions. The Australian Competition Commission is looking into concerns raised by software giant Oracle that Google is harvesting up to a gigabyte of information every month, which could mean millions for Australians alone. Location services on smartphones are powered by GPS, which is free to use as it does not require internet connectivity, but phones using Google’s Android operating system send location data back to Google’s servers, which incurs a data cost if the person is not connected to Wi-Fi. Since 2017, Google began accessing smartphone owner’s whereabouts even if they had switched location off by collecting addresses of nearby cell masts. The search giant said it would put a stop the practice at the end of last year.

For the full story see: www.telegraph.co.uk

This is how Germany perfected the free electricity modelND


Lars Paulsson & Jesper Starn, Bloomberg, Tuesday May 15 2018

The renewable energy revolution has upended the old utility model and the European power markets more than anything else. Nowhere is this clearer than in Germany – the biggest trading market and where on some days, like Christmas and other national holidays, there’s so much supply of electricity that it outstrips the nation’s demand. The result of this is an electricity price below zero and factories can then potentially earn money for taking the surplus off the hands of producers. And that’s posing questions for utility executives. Do they shut down their plants for a few hours, or keep them online with no chance of making money? “You have to shut for the time being,” said Markus Krebber, CFO at RWE AG. But generators can still make money, and here’s how Krebber explained it to Bloomberg on a conference call. “First, it’s never clear in the forward market what hours will actually be negative, so you have a ‘blended’ power price for a day or a week. The generator sells that contract to lock in a tiny margin and you will never make a lot of money from the hedging. But then you see the daily volatility in the hours and when the power price is negative you shut down your power plant and you buy the power from the market. In the other hours, where prices are higher, you bring on additional capacity from which you earn additional money. The higher the volatility is, the more we can actually make.”

For the full story see: www.bloomberg.com

94% of Australians do not read all privacy policies that apply to them – and that’s rational behaviourND


Katharine Kemp, The Conversation, Monday May 14 2018

According to new Australia-wide research on consumer attitudes to privacy released by the Consumer Policy Research Centre (CPRC) today, Australians are agreeing to privacy policies they are not comfortable with, and would prefer companies only to collect data that is essential to the delivery of their service. The report found that 94% of Australians don’t read all privacy policies that apply to them, and although some suggest that it is because Australians simply don’t care about privacy, there are four good reasons as to why this isn’t the case. First, we don’t have enough time. According to international research, it would take the average person 244 hours per year to read all the privacy policies that apply to them. Next, we can’t understand them. Usually, the title of privacy changes will be a feel-good statement like “We care about your privacy” and the text of the statement will be filled with vague and open-ended terms. Thirdly, we usually have no ability to negotiate about how much of our data the company will collect, and how it will use and disclose it. And finally, we can’t generally avoid the service altogether. According to the CPRC, over two thirds of Australians have agreed to terms they’re not comfortable with, because most often it is the only way to access the service in question.

For the full story see www.theconversation.com/au

In India, Facebook’s WhatsApp plays central role in electionsND


Vindu Goel, The New York Times, Monday May 14 2018

Pranav Bhat, a youth leader of the ruling Hindu nationalist Bharatiya Janata Party, last week joined a political rally for the Prime Minister. But the most intense political rallying was not taking place at such rallies but on WhatsApp, a messaging service owned by Facebook that has about 250 million users in India. Mr Bhat said he used WhatsApp to stay in constant touch with the 60 voters he was assigned to track for the party. He sent them critiques of the state government, warnings about Hindu leaders being murdered by Muslims and jokes ridiculing Congress leaders. “Every minute, I’m getting a message,” he said. The role that WhatsApp plays in influencing voters has received far less attention than that of its sister services Facebook and Instagram, but in developing countries it is becoming one of the most significant platforms for politicians and voters alike to use in elections. Because it is used more heavily outside the U.S., WhatsApp has largely escaped this notice. But it has several features which help create the perfect storm for misinformation to spread. Users can remain anonymous, groups are easy to set up by adding the phone numbers of contacts, people tend to belong to numerous groups – and so receive the same messages repeatedly, and when messages are forwarded there is no hint of where they came from originally.

For the full story see www.nytimes.com

Google aims to help smartphone addiction by making devices easier to ignoreND


James Titcomb, The Telegraph, Tuesday May 8 2018

In response to fears that smartphones are becoming too addictive, Google will add an update to its operating system which will set time limits on apps and make smartphones easier to ignore. It is one of the first times a major technology company has acknowledged that smartphones and social media apps may have become too distracting. Google unveiled the changes at its annual developer conference in Silicon Valley, and said future Android phones would include an optional app timer that will alert owners when they are approaching the time limit, then making the app’s icon black and white when they have passed it. Two other updates will allow users to specify a particular bed time, and allow the mobile phone to automatically recognise when it has been placed face-down on a table and respond accordingly, by silencing notifications such as phone calls and text messages.

For the full story see: www.telegraph.co.uk

How Telstra plans to turn computer games into a game changerND


Jennifer Duke, The Sydney Morning Herald, Wednesday May 9 2018

Telstra’s plan to turn itself into a technology company as well as a telecommunications provider was on full display on Tuesday at its 5G Innovation Centre on the Gold Coast, where the Australian e-sports team The Chiefs were among the first gamers in the world to use the latest ultra-fast mobile network. On a 5G network, latency – the delay between pressing a button and getting a result – is considered ultra low, at six milliseconds, compared to 20 milliseconds on 4G. Telstra’s Executive Director for Network and Infrastructure Engineering Channa Seneviratne told Fairfax Media that ahead of e-games, the company plans to take on a much more significant roles in industries like medical, transport, defence, agriculture, logistics and workforce management, including ‘co-creating’ products as soon as 2020. “We want to be able to value create ... collecting data and doing analytics and providing more enriched experiences of what the network is connecting to,” he said.

For the full story see: www.smh.com.au

Nordstrom Rack Apologizes to Black Men in St. Louis Falsely Accused of StealingND


Matthew Haag, The New York Times, Tuesday May 8 2018

The president of Nordstrom Rack flew to St. Louis to apologise on Tuesday to three black teenage friends who were falsely accused last week of trying to steal clothing at one of the company’s stores. The friends had stopped into a store last Thursday to look for last-minute deals before a high school prom on Friday night. After being followed closely by employees, they were reported to police. On leaving with the goods they had purchased, police were waiting for them. Episodes such as this can quickly turn disastrous for companies, who because of bad employees in one store risk blemishing an entire organisation’s reputation. In a statement, the company said that guidelines had not been followed and that it “does not tolerate discrimination of any kind”. The company is investigating the actions of its employees during the episode.

For the full story see: www.nytimes.com

The carbon footprint of tourism revealed (it’s bigger than we thought)ND


Dr Arunima Malik & Dr Ya-Yen Sun, The Conversation, Tuesday May 8 2018

The carbon footprint of tourism is about four times larger than previously thought, according to a new study published today in Nature Climate Change. Researchers assessed the entire supply chain of tourism, which includes transportation, accommodation, food and beverages, souvenirs, clothing, cosmetics and other goods. All up, global tourism produces around 8% of global greenhouse gas emissions. Tourism is a trillion-dollar industry which is growing faster than international trade, and from 2009 to 2013, tourism related emissions increased by around 15%. This rise mostly came from tourist spending on transport, shopping and food. Change will ultimately come from implementing regulations and incentives together to encourage low-carbon operations, but at a personal level it’s worth looking at the carbon cost of your flights, choosing to offset your emissions where possible and supporting tourism companies that aim to operate sustainably.

For the full story see: www.theconversation.com

Energy sector must use new tech to ensure the vulnerable aren't left behindND


Dev Tayal, The Guardian Sustainable Business, Friday March 16 2018

According to a Choice survey released last year, more than 80% of Australian are concerned with rising electricity bills, with South Australians and West Australians among the most concerned. But providing everyone with electricity in a fair, affordable and efficient way seems to be problematic for governments, with increasing costs, growing environmental problems and unreliable supply all proving to be stumbling blocks. Australia’s current pricing structures make lower income households spend a higher proportion of their income on electricity. New technologies on the way could provide some relief. These technologies can create clean and renewable energy, provide ways to store it, and automate its use in the most efficient and affordable way. Disruption of the energy sector is only going to get faster, so the energy sector must ensure it works with these new technologies to ensure the vulnerable are advantaged rather than disadvantaged. Many opportunities are beginning to exist for governments, policymakers and investors to innovate. Let’s not waste these opportunities.

For the full story see: www.theguardian.com/sustainable-business

The future of well-being in a tech saturated worldND


Janna Anderson & Lee Rainie, Pew Research Center, Tuesday April 17 2018

When the Pew Research Center polls American internet users on their bottom-line judgment about the role of digital technology in their lives, the vast majority feel it is a good thing. But the past 18 months have brought to the fore a number of concerns about the personal and societal impacts of technology. In light of such concerns, Pew Research Center and Elon University asked technology experts, scholars and health specialists on this question: Over the next decade, how will changes in digital life impact people’s overall well-being physically and mentally? 1,150 experts responded to this question. 47% of respondents predict that individual well-being will be more helped than harmed, while 32% say it will be more harmed than helped. The remaining 21% predict there will be not much change compared to now.

For the full results see: www.pewinternet.org

Amid the APRA inquiry fallout, who is to blame for CBA’s woes? ND


Karen Maley, The Financial Review, Wednesday May 2 2018

Two and a half years ago, Commonwealth Bank’s chairman, David Turner, told shareholders that being Australia’s most ethical bank would become its ultimate competitive advantage. Now, former CBA insiders are privately conceding Turner’s comments are ‘laughable’ in view of the damning APRA review, which identifies that a “widespread sense of complacency has run through CBA, from the top down”. So, what all went wrong? Former CEO Ian Narev shares some of the blame, a highly qualified and popular character but who lacked banking experience. Nor did former CBA Chairman David Turner have a wealth of banking experience to draw from. There is hope for the future, with new chairman Catherine Livingstone and new CEO Matt Comyn expected to have firmer hands on the tiller.

For the full story see: www.afr.com

Business Council is not a de-facto mouthpiece for the Liberal PartyND


Geoff Allen, The Sydney Morning Herald, Wednesday May 2 2018

The Business Council of Australia is facing criticism for its decision to run advertisements promoting is policy recommendations to the public in pursuit of tax reform. In the last elections, it was criticised by Liberal Party leaders and the business media for not being active enough on the same issue. For some time, members of the Liberal Party have voiced the view that the BCA should be a tribal cheer squad for the Liberal Party as a direct reciprocal of the ACTU and unions for the ALP. But this never was, nor could it ever be, the purpose of Australian public companies and foreign owned companies, nor them collectively through the BCA. The Council’s official aspirations were established at its creation 35 years ago and remain largely unchanged. It would attempt to be objective, long term and proactive in its focus, research-based and rigorous in argument, and it would be CEO-driven. It is not surprising that the BCA policy stances have more often been closer to the Coalition than the ALP but historically both sides have been influenced by its advocacy. To criticise the BCA for trying to reach the public with its message is simply nonsense. It is entitled to do what it can to broadcast what it believes in.

For the full op-ed see: www.smh.com.au

Facebook to launch dating service as Zuckerberg takes aim at TinderND


Matthew Field, The Telegraph, Wednesday May 2 2018

Facebook has announced it will launch a dedicated dating service in a challenge to the popularity of dating apps like Tinder. Facebook will launch features within its current app which connect uers to people who are not their friends to help them meet new people and start relationships. Facebook’s announcement sent shares in Match, the owner of Match.com and Tinder, spiralling, with shares dropping more than 22 percent by close. Facebook’s shares rose 1.1% at close following the news.

For the full story see: www.telegraph.co.uk

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