Latest news with #BostonConsultingGroup
Yahoo
4 days ago
- Business
- Yahoo
Why consumer surveys vs. hard data show 2 versions of the economy
Boston Consulting Group chief economist, managing director, and partner Philipp Carlsson-Szlezak joins Market Domination Overtime host Josh Lipton to discuss the state of the US economy as consumer sentiment raises red flags while economic data shows resilience. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. As investors, Phillip, obviously we're always looking for lines of sight into the consumer and how how they're holding up. You say here, consumers are not to be trusted on the economy. What do you mean by that, Phillip? Well, so consumer sentiment has delivered a number of false alarms the last few years. Remember the inevitable recession that never arrived? A lot a lot of times it was pinned on consumer sentiment, which was was very low. But in the end, consumers are pretty good at judging their own finances. So if you ask them how they're feeling about their own finances, 75% say pretty good or even even good. But if you ask them to judge the economy, suddenly they say only 25% say the economy's doing well. What why is that, Phillip? Well, I think a lot of it has to do with observability of facts. You know what's on your payslip, you know what's going in and out of your bank account. But why would the average person in the street know much about how the economy's doing? So they're substituting observability with pessimism, right? So pessimism, where does that come from? Well, it comes from media, social media, discomfit, TikTok. Oh, always the media. It always comes out to media, Phillip, I get it. But that really that is interesting. Also, and I want to get your take on this when we talk about sentiment readings, you also often hear people say there is a political element to it, correct? I think that's fair. So if you look at um consumer sentiment by party affiliation, it's very clear that it's really a political proxy, like which party do you vote for? I mean, just an example, um inflation expectations. So Republicans this year uh consistently said inflation would be as low as 1%. At some point they even thought it was negative. It would prices would be falling. And Democrats thought, well, and continue to say inflation will be as high as 10 or 11%. Well, neither of these numbers is remotely credible, right? And unfortunately, it's not like you can just add them up and divide them by two, get an average, right? You can't get a bipartisan reading by averaging them out. If you add 1 and 10%, it's 11 by 2, 5.5. So, 5.5% inflation is too high. It's outside the range of what's plausibly playing out this year. As we saw this morning, yeah. So so what do you let me ask you this. What do you do with these sentiment indicators? Do I ignore them? What How How should I approach them? So I've been telling clients for the last few years, uh don't listen to what consumers say, watch what they're doing with their money. Right? You can look at consumer spending. So, just focus on what they're actually doing. What they're actually doing. And if you look at household spending, if you look at retail, I mean, household consumption's been a straight line up since, you know, the first COVID dip and the bounce back, it's just been a straight line higher, all the way through, little wiggles here and there, but basically a straight line up, totally flying in the face of what consumer sentiment surveys said all through those two, three years that we've gone through. Sign in to access your portfolio
Al Mayadeen
5 days ago
- Politics
- Al Mayadeen
Gaza Ministry reports 105 martyrs in 24 hours amid Israeli aggression
Over the past 24 hours, Gaza Strip hospitals have received 105 fatalities, including one body retrieved from the rubble, and 356 wounded, the Gaza Ministry of Health reported in its daily report on Monday, emphasizing that a large number of victims remain unreachable for rescue teams. The ministry's report further stated that the death toll from the Israeli war on Gaza has risen to reach 57,523 people killed and 136,617 people wounded since October 7, 2023. Since March 18, the number of deaths has reached 6,964, while those wounded reached 24,576. Meanwhile, according to the report, the toll of aid-seekers brought to hospitals in the past 24 hours has risen to seven dead and over 74 injured, bringing the total number of casualties among those seeking aid to 758 dead and more than 5,005 injured. The Gaza government media office accused the US and "Israel" on Sunday of secretly planning to forcibly displace Palestinians through a scheme involving the so-called Gaza Humanitarian Foundation and the Boston Consulting Group, warning that all parties involved would be held accountable for any crimes against civilians. The Gaza government media office cited a Financial Times investigation revealing "Aurora," a covert plan involving a financial model to depopulate Gaza by forcibly relocating over 500,000 Palestinians through foreign-funded "resettlement packages." The statement accused the US- and Israeli-backed Gaza Humanitarian Foundation of acting as a front for the scheme, allegedly managing what it called "death traps in Gaza" under the guise of humanitarian aid while being linked to 751 civilian deaths, 4,931 injuries, and 39 disappearances. The statement revealed that the project had covertly secured funding and backing from US private security firms while conducting aid operations that violated humanitarian standards, adding that the exposure of these schemes led to the expulsion of several BCG partners.
Al Mayadeen
5 days ago
- Business
- Al Mayadeen
UK probes US firm over Gaza ethnic cleansing charges
A prominent US consulting firm is under formal investigation by a UK parliamentary committee over its involvement in planning efforts that human rights advocates say amount to the ethnic cleansing of Palestinians from Gaza. Boston Consulting Group (BCG), one of the world's most influential management firms, has been asked to explain its role in a controversial "postwar reconstruction plan" for Gaza, which reportedly included financial modeling for the mass displacement of Palestinians. Liam Byrne MP, chair of the Business and Trade Select Committee, has sent a formal request to BCG seeking 'clarification and information' regarding its activities, particularly its collaboration with the Gaza Humanitarian Foundation (GHF), a US- and Israeli-backed group criticized for disguising forced displacement as humanitarian relief. A report by the Financial Times revealed that BCG was hired to provide financial analysis for a postwar development plan. As part of the assignment, BCG reportedly calculated the cost of 'voluntarily' relocating hundreds of thousands of Palestinians, a proposal widely denounced by legal experts and human rights organizations as a euphemism for ethnic cleansing. The investigation has also drawn in the Tony Blair Institute (TBI), whose staff reportedly took part in early discussions about the Gaza plan. Internal documents suggest that TBI shared a postwar scenario paper with BCG during the preliminary phase of the project. Although the institute has denied authoring or endorsing the proposal, its involvement has triggered public outrage, particularly given Tony Blair's contentious role in the US invasion of Iraq in 2003. BCG has since disavowed the project, stating that the work was 'unauthorized' and that two senior partners involved have been dismissed. Nevertheless, Byrne has made it clear that the firm's explanations thus far are 'not sufficient". He has demanded a detailed timeline of BCG's engagement, identification of all clients and collaborators, and full disclosure of any UK-based entities, including companies, NGOs, or think tanks, that may have been involved. 'Who commissioned or requested this work?' Byrne asked. 'Which individuals or entities did BCG engage with in this context? Is any such work ongoing or active in any form?' BCG's ties to the Gaza Humanitarian Foundation are now facing parallel scrutiny in the US. Senator Elizabeth Warren has requested a formal investigation by the State Department into GHF's funding sources, as well as into the transparency of BCG's internal review. While BCG has not denied that some of its employees contributed to the financial framework of the plan, CEO Christoph Schweizer acknowledged in an internal message that the firm's involvement is 'deeply troubling and reputationally very damaging.' The UK parliamentary committee has given BCG until 22 July to respond. In a short statement, the firm said, 'We are aware of the request from the House of Commons Business & Trade Committee. We are reviewing the request and are committed to responding.'
Middle East Eye
7 days ago
- Business
- Middle East Eye
BCG 'paid over $1m' for Gaza maritime aid project
The Boston Consulting Group (BCG) was paid over $1m for advising a private US maritime aid initiative for Gaza that operated outside the traditional United Nations-led system, according to the Financial Times. The payment coincided with BCG's involvement in the Gaza Humanitarian Foundation (GHF), a controversial project accused of undermining humanitarian principles. Earlier this month, the FT reported that BCG had signed a multimillion-dollar contract to support GHF's operations, including modelling a plan to "relocate" Palestinians from Gaza. BCG helped design and run the US- and Israeli-backed effort, which aimed to bypass UN aid coordination and replace it with a new system. On the maritime aid initiative, BCG worked with Fogbow, a US group led by military veterans, on a Qatar-funded scheme to ship food from Cyprus to Gaza. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Initially advising pro bono, BCG later billed the Geneva-based Maritime Humanitarian Aid Foundation (MHAF), a group established by Fogbow, for work carried out from March 2024 to February 2025. The plan was eventually overtaken by former US President Joe Biden's decision to build a US floating military pier off the coast of Gaza, launched in May 2024. BCG's scope included establishing MHAF's Swiss entity, drafting monthly updates for Qatari officials, and assisting in hiring and contractor selection. The firm said the engagement followed internal protocols. GHF involvement scandal The latest revelation comes days after two BCG senior partners resigned following mounting backlash over the firm's role in the GHF project. The initiative has drawn sharp criticism from UN agencies and humanitarian groups, who say it risks enabling the forced displacement of Palestinians and fails to meet international aid standards. Palestinian health officials report that over 800 Palestinians have been killed by Israeli forces near GHF-run aid centres since they began operations. According to The Wall Street Journal, the scandal has angered BCG clients and sparked internal dissent, with employees and alumni openly criticising the firm's involvement. Ex-CIA officer running Gaza aid security advised Boston Consulting Group Read More » In June, partners Matt Schlueter and Ryan Ordway, who BCG claims "essentially went rogue", were dismissed. BCG says it ceased work with GHF as soon as leadership became aware of it, and that it was not paid for those efforts. The firm's connection to GHF reportedly began through a feasibility study commissioned by US security contractor Orbis. BCG - which counts Israeli Prime Minister Benjamin Netanyahu among its alumni - was selected due to its ties with Phil Reilly, a former CIA officer and longtime BCG advisor, as Middle East Eye first reported. Reilly now heads Safe Reach Solutions, a private firm providing security for GHF aid hubs in Gaza. The FT also reported that staff from the Tony Blair Institute (TBI) were involved in post-war Gaza planning sessions, which included controversial proposals like a "Trump Riviera" resort and financial models originating from BCG. TBI denied authorship of those materials, saying staff were present "in listening mode".
AU Financial Review
13-07-2025
- Business
- AU Financial Review
BCG earned over $1.5m for mothballed Gaza aid project
New York | London | Boston Consulting Group was paid more than $US1 million ($1.5 million) for work with a private US company trying to move food into Gaza by sea, over the same period it began a controversial association with the Gaza Humanitarian Foundation, the Financial Times has learned. A team from the consulting firm worked with Fogbow, an aid delivery group led by US military veterans, on a Qatar-funded project that aimed to sail humanitarian aid on barges into Gaza from Cyprus, according to people familiar with the work.
