The Sunday Brew #45
In this brew - Foreign holding of China bonds & equities | Idiot Index & Locksmith Paradox | IMEC Corridor, iPhone 15 at Apple Fall Event and Recession in UK, Europe and US.
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two frameworks - Idiot Index & Locksmith Paradox
Idiot Index
Idiot Index is a concept developed by SpaceX founder, Elon Musk. This metric serves to highlight the cost efficiency of manufacturing processes. Essentially, it assesses how much more expensive a finished product is compared to the cost of its basic raw materials.
For instance, if a component costs £1000 to produce, yet its raw materials only amount to £100, it signifies a high idiot index. This suggests that the design may be overly complex or the manufacturing process is inefficient.
Elon Musk applied this principle to rockets, meticulously calculating the expenses of carbon fibre, metal, fuel, and other components. Using current manufacturing methods, the final product cost at least 50 times more than the sum of its raw materials.
This metric offers valuable insights into streamlining manufacturing techniques and reducing costs. It's a powerful tool for businesses looking to enhance efficiency in their production processes.
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Locksmith Paradox
The Locksmith Paradox delves into the dynamics of perceived value and efficiency. Imagine a scenario where a junior locksmith initially takes an hour to complete a basic lock-picking task and charges the customer $100, which is deemed fair. Over time, the locksmith hones their skills and becomes a senior locksmith, now able to accomplish the same task in just 30 minutes.
However, when the senior locksmith asks for the same $100, the customer is puzzled. Despite the task's result being identical, the customer's perception of value has shifted due to the reduced time input. This paradox illustrates how improvements in efficiency and proficiency can sometimes lead to a perceived reduction in value by customers.
The underlying principle is this: when someone becomes more adept at a task and can complete it more quickly, customers may be inclined to question the value of the service, simply because it takes less time.
This paradox often crops up in larger companies, where there can be an overemphasis on time spent rather than actual results achieved. It can lead to a dynamic where employees feel the need to create the appearance of longer hours, even if they're achieving tasks more efficiently.
THREE NEWS FROM THE WEEK
India - Middle East Economic Corridor announced
India-Middle East-Europe Economic Corridor (IMEC) at the 2023 G20 summit in New Delhi by the governments of India, the United States, the UAE, Saudi Arabia.
The IMEC is expected to include a variety of infrastructure projects, such as new roads, railways, ports, and airports. It will also involve the development of digital infrastructure, such as undersea cables and data centres.
The IMEC is seen as a way to counter China's Belt and Road Initiative (BRI), a massive infrastructure project that has been criticized for its lack of transparency and its use of Chinese debt traps. Read More »»»
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iPhone 15 introduced at Apple Fall Event 2023
iPhone 15 was introduced at Apple's fall event on September 12, 2023. The company announced four new iPhone models: the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max.
All four models feature the new A17 Bionic chip, which is said to be significantly faster and more efficient than the previous A16 Bionic chip. The iPhone 15 and iPhone 15 Plus also feature a new Dynamic Island design, which replaces the notch with a pill-shaped cut-out that houses the front-facing camera and Face ID sensors. The iPhone 15 line-up launches on September 22, 2023. Read More »»»
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Is Recession threat looming large?
UK economy shrunk sharply in July by 0.5%, a number much beyond the expected 0.2%. BlackRock and Amundi warn for a recession in US, while Fitch is expecting it for H1 2024. EU Commission also cuts euro zone growth prediction as Germany went in to recession.
The economic turmoil continues to persist despite a bit of inflation cooking seen since a couple of months ago. Despite the recessionary fear, base rate in EU has been raised, and UK also seem to be on the track of additional rate increase later this month. In the midst of it, market expert Hussman has suggested investors to ‘buckle up’. Read More»»»
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The Sunday Brew by The Percolator brings to you curated news on tech, business & entrepreneurship, from across the internet to give your week a perfect start.
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