Philippa Kaur

In February 1908 Joseph Asscher, a master cutter of diamonds, cleaved the Cullinan at his workshop in Amsterdam. So tough was the South African diamond, the largest ever found, that Mr Asscher’s first attempt split his blade instead. The diamond industry is once again gripped by a nail-biting separation. This time, its most important company is facing the chop.After rejecting a takeover proposal from BHP, the world’s biggest miner, Anglo American announced a radical restructuring of its business on May 14th. As well as selling its coal, nickel and platinum operations, the British mining firm will shed its 85% stake in De Beers (Botswana, where its richest diamond mines are located, owns the rest). BHP has until May 29th to make a new offer for Anglo. Whatever happens, De Beers’s change of ownership marks the end of one of the company’s most enduring relationships—Ernest Oppenheimer, Anglo American’s founder, joined its board in 1926. For the industry, it signals the biggest shake-up since 2000, when De Beers abandoned its policy of controlling diamond prices by managing supply. More

“HE WHO controls the GPUs, controls the universe.” This spin on a famous line from “Dune”, a science-fiction classic, is commonly heard these days. Access to GPUs, and in particular those made by Nvidia, the leading supplier, is vital for any company that wants to be taken seriously in artificial intelligence (AI). Analysts talk of companies being “GPU-rich” or “GPU-poor”, depending on how many of the chips they have. Tech bosses boast of their giant stockpiles. Nvidia’s dominance has driven its market value to more than $2trn. In its latest results, due on May 22nd, it is expected to announce year-on-year revenue growth of more than 200%.GPUs do the computational heavy-lifting needed to train and operate large AI models. Yet, oddly, this is not what they were designed for. The acronym stands for “graphics processing unit”, because such chips were originally designed to process video-game graphics. It turned out that, fortuitously for Nvidia, they could be repurposed for AI workloads. More

IN Thomas Babington Macaulay’s “History of England”, the bustling coffeehouses of the 17th century were “the chief organs through which the public opinion of the metropolis vented itself”. But what happens when the metropolis stays away? Laxman Narasimhan, boss of Starbucks, the world’s mightiest coffee chain, is finding out the hard way.Mr Narasimhan has been in the top job barely a year. He inherited sluggish growth in China and a unionising workforce in America. Since then, things have got much worse. During the first quarter sales in America declined by 3%, year on year, and the firm slashed its profit guidance for the rest of 2024. Long wait-times and unavailable products meant around 15% of customers using the firm’s mobile app did not bother to complete their order. Starbucks’ share price has fallen by a fifth this year. To cap it all off, on May 5th Howard Schultz, the caffeine king who grew the chain from obscurity to ubiquity, condemned the firm’s recent performance in a post on LinkedIn. More

Bestowing a name on a car, as on a child, is not to be taken lightly. By naming his newest progeny X Æ A-XII, Elon Musk has condemned the boy to a lifetime of befuddled attempts at pronunciation (“ex ash ay twelve”, for those wondering). Naming the first four models produced by Tesla, his car company, S, 3, X and Y was equally asinine.Yet model names that provoke derision or outrage are surprisingly common in the car business. The Ora Funky Cat, from a sub-brand of China’s Great Wall Motors, was recently renamed the Ora 03, ostensibly as part of a new global brand strategy but mainly because it sounded daft. Peugeot’s Bipper Tepee, now discontinued, was about as bad. (Peugeot is owned by Stellantis, whose largest shareholder, Exor, part-owns The Economist.) The Nissan Cedric, a large saloon on sale from 1960 until 2004, sounded like it belonged in the previous century. It eventually became the Datsun 200 series in many overseas markets. More

Heat pumps, a type of reverse-refrigerator used for warming homes, are not the type of tech that gets most investors hot and bothered. They were, after all, invented in 1856. Harald Mix and Carl-Erik Lagercrantz, two Swedish financiers, see things differently.The pair, whose investment group Vargas is behind Northvolt, a battery maker, and H2 Green Steel, which uses green hydrogen to produce steel, sense there are a big bucks in replacing Europe’s many oil and gas boilers with heat pumps. Earlier this year Aira, a company founded by Vargas, launched a new product that it hopes will entice more people to make the switch. It is not only profits that are at stake. More

If there is one thing anyone with a job and a pulse needs to learn, it is how to lead. That, at least, is the message from the tsunami of books, courses, videos and podcasts on the topic. Business schools offer all kinds of leadership training. Authors pump out books instructing you to eat last, be daring and take leaps—which risks stomach ache if nothing else. Gurus tell you how to lead without actually being a leader; you might be on the reception desk, but you’re really in charge.Missing in all this is an inconvenient fact. Most people in the workforce are not leaders and pretty much everyone reports to someone else. The most useful skill to have in your current job may well be how to be a good follower. More

It is a time-honoured tradition for bosses to grumble about the supposed laziness of their underlings. Doing so publicly, however, is rarely wise. China offers no exception to this rule. Earlier this month Qu Jing, the head of communications at Baidu, a local tech giant, took to social media to defend the company’s gruelling culture. The resulting firestorm has highlighted the growing dissatisfaction among China’s young white-collar workers with the punishing hours common in the country.In one video, which soon went viral, Ms Qu said it was not her responsibility whether her team’s relationships or health were affected by their jobs, declaring “I’m not their mother.” In another she added that a woman who opts to spend time with “her husband and kids” should not expect a promotion or raise. She claimed that she did not regret forgetting her elder son’s birthday nor which grade her younger son was in at school because she “chose to be a career woman”. “Keep your phone on 24 hours a day, always ready to respond,” was her advice to those lucky enough to find themselves in her line of work. More

The origins of Home Depot, a big American home-improvements store, are inauspicious. In 1978 two of its co-founders were fired from senior roles at Handy Dan’s, a similar chain in southern California, in a power struggle. They decided to start a rival firm. In an effort to lure in customers on opening day, the co-founders’ children stood outside the doors and handed out dollar bills. “By dinner time they still had plenty of cash,” lamented Bernie Marcus, one of the co-founders, in his autobiography.Today the company is a giant. Over the past 12 months it racked up $150bn in sales, making it by far America’s biggest home-improvements chain and its third-largest bricks-and-mortar retailer, after Walmart and Costco. The company now employs half a million staff, who profess to “bleed orange”, a reference to the firm’s striking colour scheme. Its market value, at $350bn, exceeds that of Chevron, an oil giant, and Netflix, a streaming darling. More