Category: 3. Business

“We talk about thinking outside the shaft,” says Jussi Herlin, vice-chair of Finnish lift-engineering firm Kone’s board of directors. He is the fifth genaration of his family to help steer the company; his father, Antti Herlin, is chairman of the board and former long-time CEO. “We build lifts and maintain them – but our real job is designing how people move through built environments,” says Jussi.

Founded in Helsinki in 1910, Kone now operates in almost 70 countries and employs more than 60,000 staff. Its products move a staggering two billion people every day. When Monocle visits Kone’s high-rise headquarters in Espoo to meet 41-year-old Herlin (pictured), we’re told that he is waiting for us on one of the building’s upper floors. So we take one of the company’s signature lifts, which glides silently up 16 storeys and politely pings before its doors slide open. Beyond the HQ’s plate-glass windows are sweeping views of the Baltic Sea and Finland’s coastal archipelago.

Herlin’s great-great-grandfather bought Kone more than 100 years ago, when it was just getting started in the business of lifts. The Herlin family, one of northern Europe’s wealthiest dynasties, has been associated with Kone ever since, both for being its biggest backer and for running the firm for most of its history. The company, which has an annual turnover of about €11bn, manufactures and services lifts, escalators and automatic doors, and prides itself on being a Finnish export. It has continued to service Ukraine’s lifts in metro stations, hospitals and residential buildings throughout the country’s war with Russia. “Functioning lifts are essential infrastructure, especially when cities are under stress,” says Herlin.

The increasing digitisation of how buildings operate is Kone’s next frontier and the firm is hoping to rise to the challenge. Its elevators now connect to the cloud and communicate in real-time with building systems, maintenance teams and, increasingly, with users themselves, to help anticipate maintenance needs, shorten wait times or even turn on the air-conditioning in your office as you enter the building. Sensors monitor everything from vibration and temperature to acceleration and door cycles to ensure smooth travel and to optimise energy use.

These inputs help predict breakdowns and optimise performance. “We can see how a lift behaves over time,” says Jussi. “We use AI to predict issues before they happen and make maintenance proactive. This improves reliability and reduces downtime.” Kone has also opened up its systems to third-party developers, allowing smartphones, delivery robots and more to interact with its lifts.

Elevators are often described as the world’s safest form of public transport. Kone’s business has hinged on providing reliability at scale. Its systems operate in the background of daily life, helping billions of people to get around without thinking twice. But the company’s ambition goes beyond just being dependable behind the scenes. “Our one clear aim is to shape the future of cities,” says Antti Herlin. “We know cities and have enabled them to grow taller, more energy efficient and more accessible for more than a century.”

According to UN projections, by 2050 about two-thirds of the world’s population will live in urban environments. Kone sees plenty of opportunity in helping this mass of people to go about their lives smoothly. One of the firm’s flagship products is Office Flow, which offers touch-free access through turnstiles, mobile elevator calls (allowing users to summon and control lifts using a smartphone app) and real-time wayfinding. Meanwhile, Kone’s Residential Flow similarly connects doors, lifts and intercoms of homes via an app, simplifying tasks such as letting in guests and receiving parcels. In mass transit, Kone is piloting digital modelling software in metro stations in Helsinki, blending sensor data from escalators and corridors to model crowd patterns. This works to prevent bottlenecks and improve commuter experience at peak hours. “AI is revolutionising urban infrastructure and services,” says Antti Herlin. “We are constantly looking at how we can add technology to what we sell and our ways of working.”

He points to milestones such as the development of the “machine room-less” elevator in 1996 and the company’s 3,000-plus patents as evidence of Kone’s ability to lead, not just follow. One of its latest innovations is Ultrarope, a carbon-fibre hoisting solution that reduces the weight of elevators and allows them to travel further using less power. Another example is energy recovery, in which lifts are equipped with regenerative drive technology, which can recover up to 40 per cent of power used and put it back into the building’s electrical grid.

As cities become more vertical and digital, the way that people move within them is becoming increasingly important – and complex. Kone’s answer is to build tools that are elegant, intuitive and all but invisible. Its products seek to make movement feel seamless, whether you’re stepping into a metro station, navigating an airport or returning home at the end of the day. “That we move two billion people per day is not just an abstract statistic,” says Jussi. “It’s a human reality. And our job is to make every one of those journeys feel effortless.”

In the first of a new series joining people we admire on their way to work, we hitch a ride with Portuguese entrepreneur José Miguel de Abreu, co-founder of menswear brand La Paz. As a keen surfer and photographer, De Abreu has an eye for the sublime.

He uses his short scoot east from his home in the riverside neighbourhood of Lordelo do Ouro to the central Ribeira district to study the light on the water, stop at a portside café to see what the locals are wearing and unplug a little before the day ahead.

Ah, you’ve got a helmet on, so perhaps you’re not walking to work. Tell us about your vehicle of choice.
It’s a BMW c400 GT motorcycle that I’ve had for the past two years. It’s on the bigger side so perfect for riding in the city.

A soundtrack? Are there any headphones under those flaps?
That’s not possible, I’m afraid. I’ve got to listen out for other vehicles. An accident in a car could leave you with a few scratches. On a motorbike, you’re a little more exposed.

And for the day, what reading material do you bring?
I’ll always pack a book as well as my computer. I’m reading A Whole Life by Robert Seethaler and The Way of the World by Swiss photographer Nicolas Bouvier. I also pack Público, a Portuguese daily, to keep me informed.

Best time to beat the traffic?
In Porto it’s about 08.30.There’s lots of investment in transport for commuters and there are a few metro lines under construction. But right now, there’s a lot of congestion because often only one lane on most roads is available. So it gets busy in the morning; a journey of 4km could take 40 minutes. People in cars get stuck – that’s why I ride.

Any pit-stops?
Most mornings there’s an espresso at Paparoca da Foz, a café in the port where the Douro River meets the ocean. I soak in the atmosphere and see the locals; it’s very different to the city centre.

And, since you’re in the business, let’s talk outfits. No leathers?
In winter, I’ll wear a heavier jacket, which helps with safety. Usually it’s just the clothes I’m wearing that day.

How is Porto’s road etiquette?
Drivers here don’t beep their horns too much. They’re pretty polite and respectful. Even so, if you’re on a motorbike like me, you have to keep your eyes peeled.

Some people see the commute as a means to an end but you seem to enjoy it. What’s the best bit?
The view. There’s water everywhere, with bridges taking me over the river and the ocean on the horizon. In the evening the light on the waves is beautiful.

BBC

Retired women in the UK in effect go four months of the year without a pension when their income is compared with that of men, union leaders have warned.

The TUC said the income gap between men and women in retirement was 36.5%, equivalent to a shortfall of £7,600 a year on average.

As a percentage this was more than double the gender pay gap, which measures the difference in average earnings from work; it stands at 13.1%.

The union organisation said this meant that retired women effectively stopped receiving a pension from 21 August when compared with men, creating a four-month gap.

Paul Nowak, the general secretary of the TUC, said the income gap between men and women in retirement should be central to the inquiry by the pensions commission, which the government launched last month.

“Everyone deserves dignity and security in retirement, but too many retired women have been left without enough to get by,” said Nowak. “We must make sure that these inequalities are addressed for future generations.”

The commission is expected to examine why retirement incomes have failed to meet expectations after reforms more than a decade ago forced employers to autoenrol staff in occupational pension schemes.

Unions, employers organisations and pension experts will consider the best way to tackle the shortfalls.

Based on annual research by the Prospect union, the report published by the TUC found that the gender pension gap was closing steadily each year as more women were able to save for retirement, but progress was slow.

It said: “Prospect’s annual estimate of the gap is on a downward trend, driven by a reduction in the gender pay gap, historic increases in employment rates for women, and state pension changes. Between 2011-12 and 2022-23 it fell from 44.9% to 36.5%.”

At about one percentage point a year, the decline in gender inequality will take until at least 2061 to close.

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The report highlights how income and gender inequality in retirement are larger than in the working population after decades when women, who take more time off work for caring responsibilities than men, miss out on pension contributions.

The report said: “The fact that women on average earn less than men in work means that, even if the pension participation gap was closed, they would still build up their pot more slowly than male colleagues. Women’s average hourly pay is currently 13.1% lower than men’s, rising to 18.9% for workers in their 50s.”

Nowak said: “We now have a chance to make sure everyone, including women, receive the decent retirement income that all workers need.”

A surge of renewable power led to declining emissions in China over the first half of the year even as a growing chemicals sector becomes a major new source of heat-trapping gases, according to new research.

Carbon dioxide emissions from the world’s largest polluter fell 1% on an annual basis from January through June, according to a report from the Centre for Research on Energy and Clean Air. The power sector led the decline, with steel and cement also contributing to the drop.

Asian technology stocks perked up in early trade after dip buyers helped lift US stocks from their lowest levels of the day.

South Korea’s Kospi index rose over 1%, led by a gain in Samsung Electronics Co. shares. LG Display Co. climbed in Seoul while Advantest Corp. jumped 4% in Tokyo. The S&P 500 fell 0.2% and the Nasdaq 100 retreated 0.6%, still above the lowest levels of the day. Oil held its gains after a report showed a drawdown in US reserves. Treasuries steadied Thursday after climbing across the curve in the prior session.

(Bloomberg) — Asian technology stocks gained while Nasdaq 100 futures rebounded from earlier declines, after dip buyers stepped in to steady the index late in US trading.

Two stocks rose for every one that declined in the MSCI Asia Pacific Technology Index. Advantest Corp. and Samsung Electronics Co. were among the gainers. Taiwan Semiconductor Manufacturing Co. rose 0.9% after its biggest one-day fall in four months Wednesday. Contracts for the Nasdaq 100 index advanced 0.1%.

Oil held its gains after a report showed a drawdown in US reserves. Treasuries steadied after climbing across the curve in the prior session. The yield on Japan’s 20-year government bond rose to the highest since 1999 while China’s 30-year government bond yield reached the highest since December as a selloff accelerated amid a rally in local stocks.

Technology shares – particularly megacap companies – were under pressure over the past two sessions, as a steep rally since April stoked concern it may have gone too far, too quickly. Still, markets are in a wait-and-see mode as central bankers convene in Jackson Hole, Wyoming, with investors awaiting remarks from Federal Reserve Chairman Jerome Powell.

“There remains a bearish skew for equities at the moment,” said Kyle Rodda, a senior market analyst at Capital.com in Melbourne. “Equity prices are beginning to reflect the risk of disappointment at Jackson Hole, with doubts circulating about whether the Fed will pivot as aggressively in the dovish direction implied by rates markets – or even pivot at all.”

Technology stocks dropped Wednesday with the Nasdaq 100 index declining for a second consecutive day. A gauge of the so-called ‘Magnificent Seven’ tech firms fell for a fourth consecutive day, the longest losing streak since mid April.

US stocks are “in the early days” of a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks cautioned.

Declines for US megacaps dragged down the S&P 500 for a fourth straight session, despite a bounce off session lows. While most major groups in the US equity benchmark finished higher, some strategists warned that the extra-heavy weighting of tech giants may turn the “rotation” out of the sector into a broader rout.

“Rotation can only take place if the tech stocks hold up,” said Matt Maley at Miller Tabak. “If they decline, the only rotation we’ll see will be into cash.”

Meanwhile, minutes of the Federal Open Market Committee’s July 29-30 meeting showed most Fed officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank’s rate-setting committee.

Officials acknowledged worries over higher inflation and weaker employment, but a majority of the 18 policymakers in attendance “judged the upside risk to inflation as the greater of these two risks,” according to the minutes.

Given the Fed is already split on rate cuts, “the balance is going to shift in favor of those doves, who are going to be more willing to look through tariff-driven inflation,” Ian Samson, a multi-asset portfolio manager at Fidelity International, said in a Bloomberg TV interview.

In other Fed news, Governor Lisa Cook signaled her intention to remain at the central bank in defiance of calls for her resignation by President Donald Trump over allegations of mortgage fraud.

Corporate News:

Senior employees of Singapore property conglomerate CapitaLand Group Pte allegedly took bribes from a longtime contractor of its projects in India, according to a lawsuit filed in the city-state. Commonwealth Bank of Australia reversed a decision to cut 45 customer service roles due to new artificial intelligence technology after pressure from the country’s main financial services union. Great Eastern shares tumble as much as 50% in Singapore after the life insurer resumes trading for the first time in over a year. Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 11:52 a.m. Tokyo time Japan’s Topix fell 0.5% Australia’s S&P/ASX 200 rose 0.9% Hong Kong’s Hang Seng was little changed The Shanghai Composite rose 0.4% Euro Stoxx 50 futures rose 0.2% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1646 The Japanese yen was little changed at 147.34 per dollar The offshore yuan was little changed at 7.1761 per dollar Cryptocurrencies

Bitcoin fell 0.4% to $113,938.36 Ether fell 1.6% to $4,285.26 Bonds

The yield on 10-year Treasuries was little changed at 4.29% Japan’s 10-year yield was unchanged at 1.600% Australia’s 10-year yield declined four basis points to 4.26% Commodities

West Texas Intermediate crude rose 0.5% to $63.02 a barrel Spot gold fell 0.1% to $3,344.36 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson, Joanna Ossinger, Abhishek Vishnoi and Joanne Wong.

©2025 Bloomberg L.P.