News | Ripple's Web

London (CNN) — Since the financial crisis hit in 2007 the gap between rich and the poor has grown, unemployment has soared to record levels and Europe’s young risk becoming a lost generation.

Ahead of the OECD Forum in Paris next week, CNN is hosting a tweet chat Monday May 27 between 12pm and 12:30pm BST to debate how the crisis has split the world and hear your views on who is at fault and how it can be fixed.

Using the hashtag #inequalityCNN, tell us how the crisis has impacted your life, and what generation X and Y — those hardest hit by unemployment — can do to change the global story.

Join the conversation with CNN’s special guests European Youth Forum president Peter Matjasic and secretary general Giuseppe Porcaro, entrepreneur Karl Petter Rygh and Intern Aware in UK’s Ben Lyons. They are attending the OECD Forum as youth representatives.

CNN will pull the best comments into a story to run ahead of the OECD Forum, on May 28 and 29, which will be discussing how the world can pull itself out of the financial mire and revealing its global economic outlook.

The forum follows the release of OECD figures this month showing income inequality increased as much in the first three years of the crisis as it had in the previous 12 years — if mitigating factors such as taxes and welfare were not taken into account.

Demonstrators shout slogans at Neptuno Square during a march made by thousands of people on Saturday, February 23 in Madrid.

Public workers, small political parties and nonprofit organizations protest against government austerity on February 23 in Madrid.

Spanish riot police stand in front of a fire at the end of a demonstration against government austerity measures in Madrid.

Demonstrators protest on February 23, in Madrid.

Spanish police in riot gear chase protesters.

Protesters face Spanish riot police at the end of the demonstration in Madrid.

Firemen extinguish a bin on fire during a riot after a march by thousands of people.

Spain’s financial crisis has resulted in an eviction epidemic in Madrid. Ecuadorian immigrant Rocio (second left) lost her jobs when the recession hit, and has only narrowly avoided being kicked out of her apartment.

People protest against the Spanish laws on house evictions outside the Spanish parliament on February 12 in Madrid, Spain.

People attend a demonstration called by the organization Platform for Mortgage Victims on February 16 in Madrid.

Court officials protest on February 20 in Madrid, during a strike called by judges, prosecutors and justice workers against the government’s spending cuts.

Judges, prosecutors and justice workers called the strike against the government’s spending cuts.

Platform for Mortgage Victims protests to push for a new law to end a wave of evictions of homeowners ruined by the economic crisis.

Demonstrators camp at a protest in Puerta del Sol Square after a demonstration against alleged corruption scandals implicating the PP (Popular Party) on February 3 in Madrid, Spain.

Protestors gather during a demonstration against alleged corruption scandals implicating the PP (Popular Party) on February 3 in Madrid, Spain.

Policemen arrest a Spanish Airline Iberia worker during a protest against job cuts at Barajas Airport on February 18 in Madrid, Spain.

Riot police pull at a worker protesting from Spanish Airline Iberia during a rally against job cuts at Barajas Airport.

A Spanish Airline Iberia staff member blows a whistle during a protest against job cuts at Barajas Airport.

Riot Police walk forward making a cordon during a protest of Spanish Airline Iberia staff.

Staff from Spanish Airline Iberia hold flags and gather in protest against job cuts.

Protesters hold placards as they take part in a demonstration against plans to cut medical spending and privatize hospital services in Madrid on February 17.

Protesters take part in a demonstration against plans to cut medical spending and privatize hospital services in Madrid of February 17.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Madrid at the center of protests

The figures show that in countries where the financial crisis hit hard, such as Greece, Spain and Italy, poor households “either lost more income from the recession or benefited less from recovery.”

Eurozone crisis sparked protests throughout the continent. Pictured here, demonstrators fight with riot policemen during a protest against austerity on November 14, 2012 in Rome.

Students hold placards with titles of classic books during a protest on a day of mobilization against austerity measures by workers in southern Europe on November 14, 2012 in Rome.

A demonstrator sits next to a barricade of burning tires on November 13, 2012 in Barcelona, Spain.

Protesters sit down in front of a line of police.

Riot police officers face protesters during a demonstration outside the Portuguese Parliament in Lisbon on November 14, 2012 during a general strike.

Riot policemen arrest a protester in Valencia on November 14, 2012 during a general strike.

Riot policemen stand in line during a protest against austerity measures by workers in Europe on November 14, 2012 in Rome.

Greece has seen some of the most violent protests in years.

Communist-affiliated protesters gather in central Athens prior their protest march marking the 24-hour general strike on October 18, 2012.

Protesters attend a demonstration organized by Spain’s “indignant” protesters, a popular movement against a political system that they say deprives ordinary Spaniards of a voice in the crisis, near the parliament building in Madrid during a general strike.

Supporters of the Greek Communist Party waves party flags and chant slogans, during a rally calling for Greece’s exit from the Eurozone, on May 14, 2012.

1

2

3

4

5

6

7

8

9

10

11

Europe’s unemployment crisis

Greece and Spain are also the countries in which youth unemployment has reached the eurozone’s highest levels, sitting at 62.5% and 55.9% respectively. Italy youth unemployment sits at 38.4%, according to Eurostat.

Luxury sales defy economic gloom

Meanwhile the number of billionaires increased by 210 to 1,426, according to the 2013 Forbes Billionaires List, with the aggregate net wealth increasing to $5.4 trillion from $4.6 trillion.

Is this fair? Tell us what you think, Monday May 27 at 12pm to 12:30pm BST.

Key Twitter handles for the chat are:

@curlyP

@porcarorama

@BenLyons1

@karlrygh

And from CNN, join Irene Chapple and Lauren Moorhouse:

@IreneCNN

@LaurenMoorhouse

Follow the CNNi Twitter list, here.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/FrKZ9I6jknE/index.html

(CNN) — There’s fresh evidence that American teenagers may be growing weary of Facebook.

They don’t like the fact that their parents, grandparents and other adults are also there, diluting Facebook’s “cool” factor. They complain about their friends’ oversharing, and about too much “drama” on the site. And they’re increasingly flocking to other social platforms, such as Twitter.

These are some of the findings of a new Pew Research Center survey of U.S. teens’ social media use. Released Tuesday, the survey finds that teens are sharing more personal information on social media, but are also taking a variety of steps to manage their privacy online.

But it was the Facebook stuff that generated the most headlines. According to Pew, focus-group discussions with teens revealed “waning enthusiasm” for Facebook for the reasons cited, including feeling “drained by the ‘drama’ that they described as happening frequently” on the site.

“The stress of needing to manage their reputation on Facebook also contributes to the lack of enthusiasm,” the survey said.

Facebook’s IPO: One year later

Taking on Sheryl Sandberg

The Pew survey found that 24% of online teens now use Twitter, up from 16% in 2011. Other social platforms such as Tumblr, Instagram (which is owned by Facebook), YouTube and Snapchat also have seen big growth among young users in the past year.

“Those teens who used sites like Twitter and Instagram reported feeling like they could better express themselves on these platforms, where they felt freed from the social expectations and constraints of Facebook,” the Pew survey said. “Nevertheless, the site is still where a large amount of socializing takes place, and teens feel they need to stay on Facebook in order to not miss out.”

Facebook has 1.1 billion users worldwide and remains the most popular social network among U.S. teens.

A Facebook spokesperson declined to comment specifically Wednesday on the Pew report but pointed to statements by CFO David Ebersman in a recent conference call about quarterly earnings, in which he emphasized Facebook’s popularity among users under 25.

“We continue to have really high penetration rates among that age group, both in the U.S. and globally, and … younger users remain among the most active and engaged users,” Ebersman said. “Younger users are extremely active users of Instagram as well.”

Facebook executives maintain that teen use of their social network has remained steady. They argue that Facebook is not losing users to other platforms — instead, they say, more users are visiting other social media sites in addition to Facebook.

“The urban legend (that Facebook is losing younger users) flows more often than not from surveys people have done of younger users that indicate that they’re using other social services … much of the concern stems from the assumption that this is a zero-sum game, and that’s not how we see it,” Ebersman said. “We think the overall amount of time spent on services that enable you to connect and share is growing and will continue to grow.”

Jeff Hancock, a professor of communication at Cornell University and a frequent social media analyst, mostly agrees.

“Facebook’s attraction to youth is based in part on being connected, but also on being an ‘ingroup’ and ‘cool’ thing. To the degree that the cool of Facebook wears off, we should see some migration of teens to other platforms,” he said.

“People are unlikely to fully leave Facebook but simply to diversify their tools for accomplishing social interaction. Instead of Facebook being the Walmart of social media, it will become just one platform in a big ecology, including photo sharing with Instragram, broadcasting with Twitter, etc.”

Pew’s findings are based on a nationally representative phone survey, run by its Internet American Life Project, of 802 teens ages 12-17. It was conducted between July 26 and September 30, 2012. Pew also conducted two online focus groups of teenagers ages 12-17 in June 2012.

Pew found that the typical (median) teen Facebook user has 300 friends, while the typical teen Twitter user has 79 followers.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/I0ZXemdktRM/index.html

(CNN) — European Union newcomer Croatia is looking to undiscovered oil and gas fields in the Adriatic Sea to revive its ailing economy, according to the country’s president.

Ivo Josipovic told CNN that Croatia — soon to become the 28th member of the European Union — is searching for partners in the energy sector to help reveal oil and gas “green fields” in the waters that separate the Balkan nations and Italy.

Read more: Croatia PM: We need Italy to recover

The country, which relies heavily on its sun-kissed Adriatic coast to attract tourists and boost the economy, is seeking new revenue streams to combat a high national debt and a lack of competitiveness.

In 2012, Croatia’s economy contracted by 2% and is expected to contract by 1% this year, according to Eurostat — the European Commission’s data service.

“There is one way to change the economy and that is to motivate investors to come to Croatia,” Josipovic told CNN in an exclusive interview.

Croatia — a small country of 4.3 million people — is also battling against chronic unemployment over 18%, with only Greece and Spain having a higher jobless rate. But Josipovic is adamant that Croatia’s European membership, which officially begins on July 1, will attract foreign investment and prevent a so-called “brain drain” in the country’s workforce.

“Brain drain is always connected to a bad economic situation, with the EU or without the EU,” he said. He added: “But somehow by foreign investment or companies, I expect some brains to come to Croatia as well.”

Read more: Patek Philippe boss: Quality is more important than growth

One major obstacle to foreign investment is Croatia’s problems with endemic corruption. Since breaking away from Yugoslavia in the early 1990s, Croatia has struggled to choke off profiteering from those in positions of power.

In November last year, the country’s former prime minister, Ivo Sanader, was jailed for 10 years after being found guilty of taking pay-offs from foreign companies.

Read more: Luxury sales defy economic gloom

Sanader — who was premier from 2004 to 2009 — fled the country but was arrested in Austria. He is now appealing his sentence.

Josipovic said: “Corruption is now considered as something that is not acceptable for our society and anyone who is caught will go to jail. Of course, efficiency of investigation is needed through our judiciary.”

Read more: Europe’s new threat: Slow decay

Transparency International — an organization tackling corruption — ranked Croatia below Rwanda, Jordan and Cuba in its Corruption Perceptions Index for 2012. But the country still came in above Italy – Europe’s third largest economy.

Of the former Yugoslav states, Croatia will be only the second country behind Slovenia to join the EU, but the country also has designs to one day join Europe’s embattled single currency area, the eurozone.

Josipovic said the euro is already a de facto currency in Croatia but the country needs at least five years to meet the euro area criteria before it can think about joining.

“[There is] no special target year,” he told CNN. “But we think we already have the euro because if you ask someone the price, they tell you in euros. Our savings in banks are 80% or more in euros because our citizens believe in the euro because the buy euro and save in euro.”

Despite not being in the single currency, many small businesses in Croatia have debts denominated in euros rather than in kuna — the country’s domestic currency – exposing them to exchange rate risk.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/QG0oMgYTYHk/index.html

(CNN) — After a series of high-profile and embarrassing hacks, Twitter has rolled out a new, two-step login to help users prevent unwanted intrusions.

The “two-factor” verification system, which will be optional, asks users to register a phone number, e-mail account and six-digit code that would have to be entered, via text message, each time they log in to the site.

“Every day, a growing number of people log in to Twitter,” Jim O’Leary, of the site’s security team, said in a blog post. “Usually these login attempts come from the genuine account owners, but we occasionally hear from people whose accounts have been compromised by email phishing schemes or a breach of password data elsewhere on the web.”

The move comes in the wake of repeated hacks to prominent Twitter accounts in recent months.

Last month, The Associated Press’s Twitter account was compromised by someone who falsely tweeted that there had been a bombing at the White House.

It was the latest in a laundry list of media organizations hacked in recent months. Among them: The New York Times, Wall Street Journal, Washington Post, Bloomberg News, CBS, “60 Minutes” and “48 Hours.”

In 2011, Fox News saw its Twitter account compromised and used to send a fake message that President Obama had been assassinated.

In February, Burger King and Jeep were similarly hacked. And earlier this year, Twitter itself was hacked. User names and e-mail addresses for about 250,000 users were exposed.

In many cases, account hacking happens when the target has an easy-to-guess password, accesses the account via public Wi-Fi, or forgets to log out after using an account on a publicly shared computer. Accounts can obviously also be accessed when a user who hasn’t logged out loses his or her phone or has it stolen.

But high-profile victims are often targeted by phishing, where hackers send deceptive e-mails that encourage victims to enter personal information.

Privacy advocates have long called on Twitter to beef up its security. Many security experts applauded the move Thursday, at least partially.

“Right now Twitter’s 2FA (two-factor authentication) is more likely to be welcomed by individuals who own personal accounts, and small companies with a Twitter presence, than embraced by the high profile victims attacked by the (hacker group) Syrian Electronic Army in the past,” Graham Cluley, of Sophos Security, wrote on his blog.

But he said it’s unlikely that many of the media outlets and other high-profile organizations that have been hardest hit will take advantage of the new tools.

“Sadly, I don’t think it’s going to help them at all,” he wrote. “Media organizations who share breaking news via social media typically have many staff, around the globe, who share the same Twitter accounts. 2FA isn’t going to help these companies, because they can’t all access the same phone at the same time.”

For those users, he recommends a system like Facebook, on which multiple users can access the same account, to varying degrees of authority, with their own unique accounts and passwords.

Twitter’s O’Leary noted that the security upgrade isn’t a cure-all.

“Of course, even with this new security option turned on, it’s still important for you to use a strong password and follow the rest of our advice for keeping your account secure,” he wrote.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/lnrlC8u9ZeQ/index.html

.cnn_html_media_utility::before{color:red;content:’>>’;font-size:9px;line-height:12px;padding-right:1px}
.cnnstrylccimg640{margin:0 27px 14px 0}
.captionText{filter:alpha(opacity=100);opacity:1}
.cnn_html_slideshow_media_caption a,.cnn_html_slideshow_media_caption a:visited,.cnn_html_slideshow_media_caption a:link,.captionText a,.captionText a:visited,.captiontext a:link{color:outline:medium none}
.cnnVerticalGalleryPhoto{margin:0 auto;padding-right:68px;width:270px}
]]>

Jes Baker, who blogs under the name “The Militant Baker,” changed Abercrombie and Fitch’s logo to “Attractive Fat” to challenge CEO Mike Jeffries’ comments about marketing to “cool, good-looking people.” The company doesn’t carry above a size 10 or large for women.

“I was inspired by the opportunity to show that I am secure in my skin and to flaunt this by using the controversial platform that you created,” Baker wrote. Here, she poses with model John C. Shay.

Baker said Jeffries’ comments “created an incredible opportunity for social change” about body image in the fashion industry.

Baker said she was nervous about the shoot, but only because she had never modeled with another person or in a sexual manner.

“The only thing you’ve done through your comments (about thin being beautiful and only offering XL and XXL in your stores for men) is reinforce the unoriginal concept that fat women are social failures, valueless, and undesirable,” Baker wrote to Jeffries.

“Never in our culture do we see sexy photo shoots that pair short, fat, unconventional models with not short, not fat, professional models,” Baker wrote.

Baker said the shoot isn’t about larger sizes at Abercrombie, “it’s about teaching the world that everybody is equal in value.”

1

2

3

4

5

6

7

(CNN) — Jes Baker is cutting retailer Abercrombie Fitch down to size.

Baker, who blogs under the name “The Militant Baker” and wears a size 22, changed the brand’s AF logo to “Attractive Fat” in a mock, black-and-white Abercrombie ad to challenge the line’s branding efforts.

The photos come as a provocative response to contentious comments Abercrombie CEO Mike Jeffries made in a 2006 Salon article about the multibillion-dollar brand’s target audience.

“In every school there are the cool and popular kids, and then there are the not-so-cool kids,” Jeffries said. “Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely.”

The divisive remarks resurfaced earlier this month after a series of protests went viral, from Greg Karber’s video of himself giving homeless people Abercrombie clothing to a Change.org petition for larger sizes by a teenage eating disorder survivor.

Video mocks Abercrombie and Fitch CEO

The plus-size community particularly took umbrage to the CEO’s business model because the retailer currently does not offer clothes above size 10 or large for women.

“I challenge the separation of attractive and fat, and I assert that they are compatible regardless of what you believe,” Baker, 26, wrote in a public letter addressed to the CEO.

Jeffries has since apologized in a statement: “While I believe this 7-year-old, resurrected quote has been taken out of context, I sincerely regret that my choice of words was interpreted in a manner that has caused offense.”

Baker spoke to CNN about Jeffries’ comments and her motivations to address them. The interview has been edited for clarity and brevity.

CNN: You start your letter with a preface that Jeffries’ opinion “isn’t shocking; millions share the same sentiment.” The comments are from 2006 — what motivated you to act on them?

Jes Baker: It really wasn’t upset or outrage at all. I’ve been an art major for the majority of my academic life, and so I am always trying to find opportunities to do something artistic.

I just thought we don’t see the juxtaposition of typical and atypical bodies in advertising specifically. Since I am a woman and I am fat and that’s what I have to work with, I wanted to show that contrast by finding a male model.

Really, it just came because I wanted to not be angry about it. I wanted to not say, “This is an outrage, I’ve never heard of this before,” but say, “OK, well, look at this. Look at how awesome this is.”

And, I think when you’re talking about really serious subjects, and this is kind of serious, it’s important to be a little bit cheeky and pull in a little bit of humor so that it’s approachable — and it worked.

CNN: In your letter, you credit Jeffries with creating “an incredible opportunity for social change.” What did you mean by that?

Baker: In the body-positive world, which is still a subculture, fashion for fat people — what they call “fatshion” — is a really big political statement. So is the concept of, for example, a fat person walking around wearing cut-off shorts and not apologizing for their body being so observable.

Being positive and having confidence is a huge deal. Through a very, very large company that deals with fashion and also deals with unrealistic body images, it’s a perfect opportunity. You’re bringing in fashion, you’re bringing in body consciousness in general, you’re bringing in kids who shop at the mall — it’s all these wonderful things combined in one opportunity.

CNN: Have you always been comfortable in your own body?

Baker: No, no, no. I think of all of us, to some certain extent, feel the same things. I was crippled from shame my entire life. Only in this last year have I been so dedicated to this journey of learning how to survive bad days and find wanted days. If anyone tells you they have 100% good days, they’re probably lying.

I have 26 years to undo and rewire and I’m still working on it, but it’s definitely a very conscious decision. And writing has really helped, as well.

CNN: The response has obviously been huge.

Baker: It’s wonderful. I’m sure there are negatives, but for every negative, there are 20 positives.

The most powerful part is saying there is a reality that you can exist in where you’re OK, and it doesn’t make you gullible or delusional, it makes you strong.

For a lot of people, it’s just a light bulb. I know I had one where I said “What? I don’t have to live in self-loathing for the rest of my life?”

People are entertaining the idea that maybe there is a piece of self-worth for them out there somewhere. And once it starts, it grows.

CNN: Let’s talk about the actual photo shoot. Were you nervous?

Baker: I had never met the model until that day. I credit the majority of this to the photographer, Liora, because she really made it come to life.

He was the most genuine, down-to-earth person. It was so much fun.

In the beginning, I was nervous, but mostly because I had never modeled with other people. I have done solo fashion modeling, but never with another person and never in a sexual manner — so it was a really interesting experiment.

CNN: Have you heard from Jeffries or Abercrombie Fitch?

Baker: No, I didn’t write this letter technically for them. I like to not invest a lot of my time in people who are dedicated to misunderstanding me. What I wanted to do is reach women who look and feel like me. We never see this pairing; we never see a fat woman in a positive light. I want to empower the individual woman.

When Mike Jeffries is gone, there’s going to be another company. It’s not about the extra-large shirts at Abercrombie; it’s about teaching the world that everybody is equal in value.

Follow Sarah LeTrent on Twitter and CNN Living on Facebook

What do you think of Baker’s spoof ads and Jeffries’ comments? Share your opinion in the comments section below.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/AOjXZykruF4/index.html

.cnn_html_media_utility::before{color:red;content:’>>’;font-size:9px;line-height:12px;padding-right:1px}
.cnnstrylccimg640{margin:0 27px 14px 0}
.captionText{filter:alpha(opacity=100);opacity:1}
.cnn_html_slideshow_media_caption a,.cnn_html_slideshow_media_caption a:visited,.cnn_html_slideshow_media_caption a:link,.captionText a,.captionText a:visited,.captiontext a:link{color:outline:medium none}
.cnnVerticalGalleryPhoto{margin:0 auto;padding-right:68px;width:270px}
]]>

1

2

3

4

5

6

7

8

(CNN) — When Germany’s two biggest soccer clubs go head-to-head in Saturday’s Champions League final, there can only be one winner: German industry.

The Bavarians of Bayern Munich will look to rectify last year’s heartbreak on home soil against Chelsea when they take on a formidable Borussia Dortmund side that is seeking to emulate the club’s only success in Europe’s top competition, back in 1997.

Some of the biggest talents in world football will be on show at Wembley come kickoff at 1845 GMT in London, with the likes of Arjen Robben, Franck Ribery and Robert Lewandowski set to dazzle the crowd.

But the all-Bundesliga final could just be the sideshow to a bigger German act, as billion-dollar corporates gear up for one of the major advertising opportunities in world sport.

From sportswear multinationals such as Adidas and Puma to insurance giants Allianz and Signal Iduna, Wembley stadium will be awash with the household names of German commerce — all helpfully beamed to a global television audience of potentially 150 million.

Are German teams the best in Europe?

Do Bayern Munich need Pep Guardiola?

Bayern Munich puts a hurt on Barcelona

Thousands of toxic yellow and crimson red jerseys will sport the names of Dortmund’s sponsor — chemical manufacturer Evonik — and that of Bayern — Deutsche Telekom — as Europe’s largest economy struts its industrial might on club football’s most prestigious stage.

Read: Double trouble for Bundesliga?

Germany, Europe’s manufacturing powerhouse, is considered one of the economic bright spots of a continent dogged by recession despite the country posting growth of only 0.1% in the first quarter of this year, driven mostly by consumer spending.

Despite low growth, Germans — recognized as the best savers in Europe — proved they were ready to flaunt their cash as Dortmund received a staggering half a million ticket requests for the final while Bayern received 250,000. Wembley can hold just 90,000 fans.

Football finance expert Simon Chadwick said the final will provide a “brilliant showcase” for “Brand Germany,” adding that the flair and style of the Bundesliga as well as the wide array of homegrown talent on display will enhance the brands connected with the teams.

“Existing brand associations that many people around the world have with German products — notably efficiency and quality — will no doubt be reinforced,” Chadwick told CNN.

Financial model of sustainability

The ties between German industry and football run deep.

Unlike in England, France and Spain, where clubs are backed by Arab sheikhs, Russian oligarchs and American tycoons, the German league prefers a more homely approach to club financing.

Christian Seifert, chief executive officer of the Bundesliga and a self-proclaimed Borussia Monchengladbach fan, is skeptical as to whether the final will boost the national economy, but he does believe the game will be a good advert for German football.

“Bayern and Dortmund are proof that it is possible to have good sporting performance and to have solid financial behavior,” Seifert told CNN.

Unlike other top leagues which attract more global endorsers, the Bundesliga clubs are largely sponsored by domestic brands — 15 of the 18 clubs in Gemany’s top tier for the 2012-13 season were backed by local companies ranging from multi-billion-dollar insurance firms to family chicken and dairy farmers.

“The big difference that you notice between other clubs in Europe is the degree of indigenous corporate engagement,” sports finance expert Tom Cannon told CNN.

Will Mourinho replace Ferguson?

CNN Football Club: Bayern dominate Barca

Hargreaves: Scholes is the best

Even the stadia are part of the Bundesliga’s “Brand Germany” philosophy.

While fans of Manchester United or Liverpool would scorn at the renaming of Old Trafford as the Aon Arena or Anfield as the Standard Chartered Stadium, regular rechristening is the norm for the 18 Bundesliga teams.

So the Commerzbank Arena — home to Eintracht Frankfurt and located in the country’s financial heartland — is named after one of Germany’s biggest banks. Dortmund’s Signal Iduna Park, once the Westfalenstadion, and Bayern Munich’s Allianz Arena — both tagged by insurers — serve as further examples of the close links with big business in Germany.

Chadwick believes branding stadiums reveals a consensus in football that is characteristic of German society and culture, where sponsor and fan cooperation is seen as for the club’s greater good.

“This shows both a level of commercialism and a certain betrayal of history and heritage that some fans both in Germany and in other countries find unacceptable,” said Chadwick.

Read: All-German final down to youth policy

However, there is one fundamental rule for all Bundesliga teams that ensures fans are not kept in the dark when it comes to the control of their club.

The “50 plus one” rule — a revered model of football governance whereby fans are the majority stakeholder — applies to all clubs participating in the Bundesliga, with the exception of Bayer Leverkusen and Wolfsburg.

Those teams were founded by pharmaceutical company Bayer and car manufacturer Volkswagen respectively and are 100% owned by these companies, with the stadiums — BayArena and Volkswagen Arena — named in their honor.

This is due to a rule that states if a club in Germany receives major financial backing from one party for over 20 years, that party can then take a controlling stake in the club.

The boardroom structure in the Bundesliga is unique and completely different to the big clubs in England, where a relatively small ownership group dominates the board.

“The boards of these (German) clubs are packed with corporate heavyweights,” said Cannon. “It’s a confident assertion of German industry.”

CNN FC: Moyes replaces Ferguson

CNN Football Club: Alex Ferguson special

Although Bayern is owned by the fans, both Adidas and carmaker Audi have 9% stakes in the club, with the chairmen of both companies sitting on its supervisory board.

In the case of Dortmund, 82% of the club is free-float stock and owned by the fans but the corporate board is dominated by businessmen with backgrounds in banking and shipping.

Read: Football enters space age with ‘Footbonaut’

Bundesliga boss Seifert insists he is not concerned by the intimacy between big business and football clubs in Germany because the revenue generated by the teams pales in comparison to big multinational brands’ profits.

“I don’t think they’re too close,” said Seifert. “The good thing is that the 100,000 jobs are created through the Bundesliga in Germany.

“We’re talking about global brands and they’re using football as a marketing instrument all over the globe.”

Read: Time for Premier League to give youth a chance, says Hargreaves

The strategy pursued by the German Football Federation and the Bundesliga after a poor showing at the European Championships in 2000 has paved the way for the nation’s current success at both club and international level.

“Each club that wanted to play in the top two tiers of the Bundesliga — 36 clubs — had to have a youth academy,” Seifert said.

“Today more than €100 million ($128 million) per year is invested and 5,000 players are educated in the program.”

Dave Webb, a scout for English Premier League club Southampton who spent time observing the Bayer Leverkusen setup, explained that there has been major investment by Bundesliga clubs at grassroots level — and players coming up from youth level are given more time to flourish than players in the English system.

“Bayern and Dortmund are very strong at youth level and that is behind their success,” said Webb. “Players are judged a bit later in the Bundesliga — instead of 17 or 18, players can go right through to under-21 level before they reach the first team.”

Given that co-ordinated strategy allied to long-term planning, no wonder “Fussball” is coming home — to Germany.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/cW-FKO_DP5U/index.html

Hong Kong (CNN) — Japan’s main trading index, the Tokyo Nikkei, plunged more than 7% Thursday, ending a red-hot rally that saw the bourse climb nearly 50% since the start of the year.

Investors reacted to negative news from the United States and China. U.S. Fed Chair Ben Bernanke left an open question on whether quantitative easing would end earlier than hoped, while new China data revealed factory activity fell the first time in seven months.

Though questions loom over the world’s first and second largest economies, analysts and economists agree that for Japan, the world’s third largest, things are just fine — despite this week’s stock slump.

The fact that investors pulled out is “a sign of health rather than a sign of worry,” said Jesper Koll, Director of Japan Equity Research at JPMorgan in Tokyo. “When markets go one way then it’s time to be concerned. The (Nikkei) has been up basically 70% over the last seven months.”

Can ‘womenomics’ save Japan?

Japan’s farms prepare for the future

Better Japanese economy = shorter skirts

In the history of global stock markets, such a major rally is very rare, added Koll. Since World War II, similar events have happened less than eight times. A correction was due.

“This looks like the selloff that so many on the sidelines have been waiting for,” said Nicholas Smith, CLSA’s Japan Strategist in Tokyo. “The Topix was undoubtedly overbought.”

Prime Minister Shinzo Abe’s fiscal policies for growth and inflation — known to many now as Abenomics — are not to blame so much as financial quakes and questions from the world’s other major economies. In support of Abenomics, the Bank of Japan this past Wednesday affirmed its own policies to buy long-term debt and securities. The move would double the central bank’s monetary base over two years.

“Such conduct of monetary policy will support the positive movements in economic activity and financial markets, contribute to a rise in inflation expectations, and lead Japan’s economy to overcome deflation that has lasted for nearly 15 years,” the bank said in its policy statement.

During those years of deflation and up through Abe’s election to the premiership in December 2012, Japan had a fiscal policy of “musaku” or “no policy” — “all talk but no action,” explained JPMorgan’s Koll.

Now “the most import thing is that Japan does have a policy. With Abe there is action. That’s what has been making investors confident.”

Signs of proof can be found in the return to profit of some of Japan’s exporters, in part due to the yen’s weakening against the U.S. dollar past the 100-yen mark. Toyota, the world’s biggest automaker, reported net income of $9.7 billion in the fiscal year that ended March 31 — more than triple its earnings from the year prior. Panasonic forecasts a net income of nearly $500 million in the 2014 fiscal year, versus a net loss of some $7 billion in 2013.

“We think they (corporate profits) are going to rise by about 50% over the next twelve months,” said Koll, who also forecasts Japan’s Topix — considered more representative of Japan’s stock markets — will climb to 1,400 by the end of 2013 — a rise of nearly 17%.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/PTFODScVaQ0/index.html

(CNN) — “For the workers at Ford and their families absorbing this difficult news today, we will make sure that you are not left behind.”

So tweeted the Australian premier Julia Gillard, as Ford Australia, the local subsidiary of the U.S. giant, this week confirmed the worst kept secret in Australian manufacturing.

More than 1,000 workers will lose their jobs when Ford closes two production facilities in the state of Victoria by October 2016.

The decision came after Ford Australia declared a A$141 million [$135.4 million] tax loss for the year 2012/13. The company has lost around A$600 million [$575 million] over the last five years, making it unviable, it says, to continue producing cars in Australia.

The decision is a blow not only to those who will lose their jobs. It’s also bad news for the ruling Labor government, about to face an election it’s tipped to lose.
It also comes amid concerns that while Australia’s mining boom appears to have peaked, the countries manufacturing base is in decline.

Ford Australia president and chief executive Bob Graziano said the company had failed to “make the numbers work” when it modeled a number of different scenarios in an attempt to maintain its Australian production base.

A small and fragmented Australian market and uncompetitive cost structures are to blame, according to Graziano.

“There’s been a significant change in terms of the total number of vehicles sold in the large car segment,” he told a media conference. He added “costs are double that of Europe and nearly four times Ford in Asia.”

The news, which will also impact the vehicle manufacturing supply chain across the country, comes despite attempts by the Australian government to prop up the industry.

In the past decade the Australian government has given the auto industry A$12 billion [$11.5 billion] in subsidies — with Ford itself the beneficiary of A$2.5 billion of those subsidies.

But the automaker’s decision to close manufacturing completely by 2016 is likely to add to the growing concerns that Australia is too reliant on its mining industry and resource exports to China in particular, whilst its manufacturing base has been in steady decline over more than four decades.

In the 1960s, manufacturing accounted for close to 30% of GDP. In 2012, it accounted 7.2%.

The Australian Industry Group, an employers organization, said manufacturers were doing it tough in a “high cost economy” while opposition leader Tony Abbott lamented a “black day for manufacturing in Australia.”

But respected commentator Bernard Keane said the news was long overdue and unrepresentative of the state of Australian manufacturing.

“These aren’t the numbers of a company suffering increased competition from a stronger currency, but a company that can’t convince consumers to buy its flagship product any more, a company that has lost touch with consumers, as so often happens with protected industries,” he wrote in news outlet Crikey.

“Nor is the closure representative of Australian manufacturing. For all the stories about high-profile manufacturers struggling, in the year to February the total manufacturing workforce fell by just 3,000, or a third of 1%, to 954,000 in trend terms — the lowest fall in years.”

But manufacturing, once Australia’s largest employer, has seen its share of total employment eclipsed by the health, retail and construction sectors. Contrary to popular belief, the mining industry upon which Australia remains reliant is not the countries biggest employer, according to analysis published on Crikey.

George Megalogenis, economic commentator and author of “The Australian Moment,” a book that tracks Australia’s economic development said “all first world economies have roughly similar stories to tell on manufacturing.

“Manufacturing was the single biggest employer through till the 90s in some countries. But its share of employment and of GDP is declining. And it’s quite a smooth line, which started in the 60s,” he told CNN.

“But now we are at that point where societies are starting to ask themselves whether they let the trend continue to the point where they actually lose the know-how to make things.”

He added: “China will see the same decline in 20 or 30 years time. They will replicate first world trends but with a lag.”

Though it employs fewer Australians, and despite the boom appearing to have peaked, Australia’s mining industry remains the headline act.

Profitable, it provides a significant percentage of company tax revenue to government, even if the tax on super profits imposed by the Gillard government has been a disappointment; the government’s projections of a A$2 billion windfall delivered only A$127 million because the tax is structured to allow the miners to offset the value of their mines against the tax.

Former finance minister Lindsay Tanner has warned in the past that Australia needs to reduce its reliance on mining and focus its efforts on other export industries.

“Minerals are always going to be critical for Australia. There’s no question about that,” he told ABC radio.

However, the diversification of Australian exports had stagnated in the 90s, with growth in tourism, education and specialized manufacturing moving into reverse, he said.

“So it’s not so much that there’s one country that we’re dependent on. It’s that we have I think to some extent too many eggs in that basket,” said Tanner.

For Megalogenis, Australia’s economic reliance on mining would be more acceptable if it had the future firmly in sight.

“When mining crowds everything out and the economy makes room for that, to service China, knowing that it’s a highly volatile global cycle, it becomes a question of what Australia does with the spoils,” he told CNN. “Because there will be a bust,” he added.

Megalogenis says historically, Australia has wisely invested the spoils. “We built Melbourne out of the gold boom,” he said. “But we haven’t really taken the cash from this mining boom and reinvested it in expanding the capacity of the rest of the economy.”

The Gillard government has anticipated a second mining boom, he says, and allocated spending in anticipation.

“But the second chance has been denied us by Europe and the global financial crisis. We had a second crisis and Europe is still in recession. “

Even so, though mining profits are down because of lower commodity prices, profit margins remain high.

According to the Minerals Council of Australia, last year the industry paid in excess of $20 billion in company tax and royalties combined — a four-fold increase on the $4 billion to $5 billion paid at the start of the boom.

What future exists for manufacturing in Australia when the countries finite resources are depleted is a question that no doubt will have to wait until after the September 14 poll.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/CxUoqmLKmaw/index.html

.cnn_html_media_utility::before{color:red;content:’>>’;font-size:9px;line-height:12px;padding-right:1px}
.cnnstrylccimg640{margin:0 27px 14px 0}
.captionText{filter:alpha(opacity=100);opacity:1}
.cnn_html_slideshow_media_caption a,.cnn_html_slideshow_media_caption a:visited,.cnn_html_slideshow_media_caption a:link,.captionText a,.captionText a:visited,.captiontext a:link{color:outline:medium none}
.cnnVerticalGalleryPhoto{margin:0 auto;padding-right:68px;width:270px}
]]>

Introducing Gypsy Rose II, a 12-meter pirate ship created by U.S. boat builder, Captain Tim Woodson.

The remarkable vessel could be found cruising along the Mississippi River, which is perhaps better known for it’s paddle steamers than pirate ships.

Woodson recently sold the converted boat to the History Channel for $80,000, after advertising it on classifieds website, Craigslist. “It looks like a ship that has been to many islands and picked up many treasures along the way,” the 54-year-old told CNN.

The Gypsy Rose II is one of six pirate ships built by Woodson (pictured with girlfriend “Wench Maria”), and sailed along the Mississippi River as part of sightseeing cruises.

Woodson uses old house boats as the base for his pirate ships, covering them in planks of wood and staining it in varnish to “make it look like something from 1689.”

“It’s like being a kid again,” said Woodson. “Everybody just stops and stares — people in boats, standing on the shore. It brings a smile to people’s faces.”

Among Woodson’s six converted pirate ships is another 12-meter boat now lined with 18 bunk beds for school trips. “We can thank Pirates of the Caribbean and Captain Jack Sparrow for the renewed interest in pirates today,” he said.

1

2

3

4

5

6

7

Editor’s note: MainSail is CNN’s monthly sailing show, exploring the sport of sailing, luxury travel and the latest in design and technology.

(CNN) — The Mississippi River: home to grand old paddle steamers, blues music, Huckleberry Finn, and… pirate ships.

With its skull-and-cross-bones flag flapping in the wind, and swashbuckling captain at the helm, this is perhaps the last boat you’d expect to find on America’s most famous inland waterway.

But the 12-meter Gypsy Rose II is just one of six pirate ships built by 54-year-old Captain Tim Woodson and setting sail on the iconic river.

Now the buccaneering boat has been sold to the History Channel for $80,000, after being advertised on classifieds website Craigslist.

How female sailors take on men

Sailing’s greatest pay in play challenge

Breaking sailing boundaries in Namibia

“It’s probably the most photographed ship on the Mississippi River,” Woodson, from St Louis in Missouri, told CNN.

“We get a lot of kids running along the shore, trying to catch the cannonballs as we go by,” he said, referring to the 4-inch sponge balls shot from the ship.

Read: Ship-shape accommodation — World’s top five ‘boatels’

Dream boat

The professional boat builder first started making pirate ships five years ago, converting ordinary house boats into fairytale vessels.

“I wanted to find an old boat that I could transform into something really cool,” said Woodson.

“My girlfriend asked: ‘What are you going to do?’ I don’t know where it came from, but I said: ‘I’m going to build a pirate ship.’”

That’s exactly what he did, adding fake masts and covering the boat in planks of wood stained with varnish and black spray paint.

“As you walk on board you see a skeleton wearing an eye patch — that’s the old captain we pillaged the boat from,” said Woodson.

“The sails are all torn with cannonball holes,” he added. “Inside, the first thing you see is a hand-drawn map, globe of the world, and an old desk covered in treasure.”

Luxury living

The remarkable boat may appear to be something out of a 17th century European fable, but inside it has all the luxuries of a modern ship.

Read: The circus family living on a sailboat

Woodson spent just over two months building Gypsy Rose II, which can hold around 30 passengers.

It features two bedrooms, a bathroom, kitchen, and putters along at 30 kilometers per hour.

“The galley is fully functional but is stacked with rum barrels and pewter mugs,” said Woodson.

“It really is a modern-day pirate ship with 1600s treasures scattered throughout.”

Costume drama

With his battered hat, ripped vest, and dangling earring, Captain Woodson is every inch the pirate of old.

Alongside his girlfriend, Wench Maria, he can be found steering his fantastical vessels from Missouri to Illinois as part of sightseeing tours down the murky Mississippi.

Groups can also rent the boats for pirate-themed parties, with one elderly woman recently celebrating her 99th birthday on board.

Read: Back to the Future for Richard Branson boat

“When I was a kid, pirates were cool and that hasn’t changed,” Woodson said. “It’s about that feeling of being free, of being an explorer.”

“It gives you an excuse to be the bad boy.”

One man’s fleet

Among Woodson’s six converted pirate ships are a former 21-meter U.S. troop carrier and another 12-meter boat now lined with 18 bunk beds for school trips.

Once complete, each boat is advertised for sale on Craigslist, with the History Channel snapping up Gypsy Rose II for its TV series Ax Men, which follows the history of timber cutters.

Other boats have been bought by cruise operators and restaurateurs.

Read: A bright idea — Lighthouse hotels

“When I was building my first ship, people would say I was crazy,” said Woodson.

“But five years, six boats, and probably 200 cruises-a-year later — they’re not telling me I’m crazy now.”

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/1c34Aa-gyHM/index.html

(CNN) — After a series of high-profile and embarrassing hacks, Twitter has rolled out a new, two-step login to help users prevent unwanted intrusions.

The “two-factor” verification system, which will be optional, asks users to register a phone number, e-mail account and six-digit code that would have to be entered, via text message, each time they log in to the site.

“Every day, a growing number of people log in to Twitter,” Jim O’Leary, of the site’s security team, said in a blog post. “Usually these login attempts come from the genuine account owners, but we occasionally hear from people whose accounts have been compromised by email phishing schemes or a breach of password data elsewhere on the web.”

The move comes in the wake of repeated hacks to prominent Twitter accounts in recent months.

Last month, The Associated Press’s Twitter account was compromised by someone who falsely tweeted that there had been a bombing at the White House.

It was the latest in a laundry list of media organizations hacked in recent months. Among them: The New York Times, Wall Street Journal, Washington Post, Bloomberg News, CBS, “60 Minutes” and “48 Hours.”

In 2011, Fox News saw its Twitter account compromised and used to send a fake message that President Obama had been assassinated.

In February, Burger King and Jeep were similarly hacked. And earlier this year, Twitter itself was hacked. User names and e-mail addresses for about 250,000 users were exposed.

In many cases, account hacking happens when the target has an easy-to-guess password, accesses the account via public Wi-Fi, or forgets to log out after using an account on a publicly shared computer. Accounts can obviously also be accessed when a user who hasn’t logged out loses his or her phone or has it stolen.

But high-profile victims are often targeted by phishing, where hackers send deceptive e-mails that encourage victims to enter personal information.

Privacy advocates have long called on Twitter to beef up its security. Many security experts applauded the move Thursday, at least partially.

“Right now Twitter’s 2FA (two-factor authentication) is more likely to be welcomed by individuals who own personal accounts, and small companies with a Twitter presence, than embraced by the high profile victims attacked by the (hacker group) Syrian Electronic Army in the past,” Graham Cluley, of Sophos Security, wrote on his blog.

But he said it’s unlikely that many of the media outlets and other high-profile organizations that have been hardest hit will take advantage of the new tools.

“Sadly, I don’t think it’s going to help them at all,” he wrote. “Media organizations who share breaking news via social media typically have many staff, around the globe, who share the same Twitter accounts. 2FA isn’t going to help these companies, because they can’t all access the same phone at the same time.”

For those users, he recommends a system like Facebook, on which multiple users can access the same account, to varying degrees of authority, with their own unique accounts and passwords.

Twitter’s O’Leary noted that the security upgrade isn’t a cure-all.

“Of course, even with this new security option turned on, it’s still important for you to use a strong password and follow the rest of our advice for keeping your account secure,” he wrote.

Article source: http://rss.cnn.com/~r/rss/edition_business/~3/lnrlC8u9ZeQ/index.html