Economist 7/28/16

  1. JUST like cooking a culinary masterpiece, making a hit Broadway show requires the right ingredients.On the whole musicals tend to be more lucrative than plays, especially if they are based on Disney movies. Using data from the Ulmer Scale, an index which rates Hollywood actors on their “bankability”, we found that having a big movie star boosted income tremendously.Factors outside the producer’s control also affect revenues. We found that productions which eventually win major Tony awards, performed better in their first year, though newspaper reviews seemed to matter less.shows tend to do better around Christmas and New Year. Even though its turnover has been artificially suppressed by its producers’ reluctance to raise ticket prices too sharply, “Hamilton” already has a strong claim as the most successful Broadway show of all time, and is on pace to shatter all existing records.
  2. Lawyers and indigenous leaders have long called for government action to cut Australia’s high rate of aboriginal youth imprisonment.The Northern Territory, a federal dependency, has one of the worst records. Indigenous people are almost a third of the territory’s population, compared with 3% for Australia as a whole. But they account for 96% of youngsters aged between 10 and 17 in detention.Nationwide, Amnesty says young indigenous Australians are 26 times more likely to be in detention on an average night than their non-indigenous counterparts. The high detention rates echo broader problems: indigenous Australians are poorer, unhealthier and do worse in school than their compatriots. 
  3. LUFTHANSA lowered its revenue forecast last week amid declining bookings, particularly on long-haul flights to Europe, citing “increasing political and economic uncertainties.” “Luxury Awaits Above the Clouds” is the title of Lufthansa’s Airbnb listing, the first flight to be offered on the site, according to Quartz , which first reported the curious manoeuvre. Simply posting it to Airbnb required some creative contortion on the part of the airline, which had to check all the boxes required for more typical Airbnb hosts.The listing, of course, is little more than a gimmick. Airbnb charges a hefty fee for bookings, and it’s hard to imagine anyone paying that when they can book for free on more traditional platforms.Still, it is not inconceivable that the model could change. As more travellers, and business travellers in particular, look to Airbnb instead of hotels, booking sites like Orbitz and Priceline that can package flights and lodging lose some of their appeal, since they don’t have options for private accommodation.
  4. 1MDB was launched in 2009, the year Mr Najib became prime minister of Malaysia. It was supposed to bring investment to Malaysia by forging partnerships with foreign firms. But by 2014 it was struggling to service debts of more than $11 billion. Questions about it multiplied last year when it was discovered that around $700m had entered Mr Najib’s bank accounts shortly before a close election in 2013. On July 20th America’s Justice Department began proceedings to seize more than $1 billion of assets, which it alleged had been purchased with funds siphoned out of the firm. It is the largest single action the department has ever launched.The goodies concerned include luxury properties, artworks by Van Gogh and Monet, and a jet, according to court filings. Authorities say 1MDB’s money was also spent on gambling and used to make the “Wolf of Wall Street”, a film about a high-living swindler starring Leonardo DiCaprio. It was made by a production company co-founded by Riza Aziz, the stepson of Malaysia’s prime minister, Najib Razak.
  5. Rajinikanth is no preening Bollywood star, but a balding 65-year old doyen of Tamil cinema who has acted in over 200 films, generally playing a lovable rogue. He is paid around $10m-12m a picture for this shtick.Whatever the storyline, Rajini’s movies tend to do well. His recent release ‘Kabali’, raked in $16m on its opening weekend in India and another $12.6m overseas, smashing box-office records. On Friday July 22nd, tickets fetched 1,500-5,000 rupees ($23-$75) on the black market. Indeed, for all his onscreen brio and dash, the bus conductor-turned-superstar is a courtly man off it. He wears a white dhoti, drives his own car, sports no makeup, donates money to charity and pleads with his fans not to treat him like God.
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