Sunday, April 28, 2013
Many questions, few answers in Pilot Flying J case
Pilot Flying J, the nations largest truck stop chain, may be indicted for their role in an alleged scheme to defraud trucking companies out of millions of dollars in diesel fuel rebates. Basically the sales team created a system of intervention when a rebate check was scheduled for departure to an "unsophisticated" company. From the top of the corporate ladder, allegedly, came news that deemed the company unworthy of the full rebate.The FBI has already raided headquarters and taken items such as laptops and recorded training videos, but it will probably be months before any verdicts are made.
How iTunes crushed music sales.
http://money.cnn.com/2013/04/25/technology/itunes-music-decline/index.html?iid=HP_LN
Apple's famous Music Store-iTunes has been in business for 10 years and it has changed the music industry. After a decade, it has reduced music sales in the US from $11.8 billion (2003) to $7.1 (2012). The interesting fact is, during that period of time, people bought so much more music than in the past. In 2000, the US consumed 943 million CD albums without digital sales. But by 2007, digital singles proved to be superior with, 819 sales, to the CD with just 500 million. However, music sales still decreased because iTunes made music cheaper. Steve Jobs- Apple CEO was able to sell a digital album for $10 and any track for $0.99.
Apple's famous Music Store-iTunes has been in business for 10 years and it has changed the music industry. After a decade, it has reduced music sales in the US from $11.8 billion (2003) to $7.1 (2012). The interesting fact is, during that period of time, people bought so much more music than in the past. In 2000, the US consumed 943 million CD albums without digital sales. But by 2007, digital singles proved to be superior with, 819 sales, to the CD with just 500 million. However, music sales still decreased because iTunes made music cheaper. Steve Jobs- Apple CEO was able to sell a digital album for $10 and any track for $0.99.
Greek economy receives 8.8 billion euro bailout
http://www.cnn.com/2013/04/28/world/europe/greece-bailout-layoffs/?hpt=hp_t3
This article discusses the most recent bailout for Greece in their economic crisis. In order to secure 8.8 billion euro bailout they were forced to agree to reduce the number of government workers by 15,000. The reduction of Government spending may have been a stipulation of the bailout because government spending could be crowding out private investment. The article also discusses how the reduction in the government workforce will contribute to the 27% unemployment rate and likely lead to more violence in the country. Radical political factions are seeing a rise in Greece, both from the left and the right, as the economy has failed to recover thus far in the crisis.
This article discusses the most recent bailout for Greece in their economic crisis. In order to secure 8.8 billion euro bailout they were forced to agree to reduce the number of government workers by 15,000. The reduction of Government spending may have been a stipulation of the bailout because government spending could be crowding out private investment. The article also discusses how the reduction in the government workforce will contribute to the 27% unemployment rate and likely lead to more violence in the country. Radical political factions are seeing a rise in Greece, both from the left and the right, as the economy has failed to recover thus far in the crisis.
The Capitalist Manifesto
http://www.economist.com/news/books-and-arts/21576372-how-get-india-moving-again-capitalist-manifesto
This article talks about India and how they need to start heading in the right direction economically. India needs more market liberalisation to promote economic growth. A few years ago, with its economy expanding at an annual rate of nearly 10%. But policymakers have grown complacent. They assumed rapid growth would continue, but did nothing to foster it. The result is that India now putters on at less than half what it could achieve. The article also discusses how rapid expansion has brought India immense gains, and why more change is needed.
Hyperinflation in Zimbabwe
http://www.economist.com/news/finance-and-economics/21576665-grubby-greenbacks-dear-credit-full-shops-and-empty-factories-dollars-they
This article talks about how Zimbabwe, since long, is facing the problem of hyper inflation and its consequences on the economy and currency. Inflation in Zimbabwe is extremely high and reached an absurd 231,000,000% in 2008. The article also talks about how people have lost confidence in the domestic currency and the US Dollar is the common medium of transactions. Serious steps need to be taken for Zimbabwe to maintain its macro-economic structure.
McDonalds university?
http://www.economist.com/news/international/21576656-degree-burgerologyand-job-too-fries
The McDonalds university in Great Britain is a university where you learn the ins and outs of being a manger at a fast food restaurant and all of the stress and people management skills are needed. It usually entails a lot of student that have low self esteems and poor qualifications for real college but have a large work ethic and are willing to get their hands dirty. With the way the corporate ladder is set up in McDonalds people can work their way up and down the ladder with hard work no matter the education level or set up. This university could be just what the economy needs to grow.
The McDonalds university in Great Britain is a university where you learn the ins and outs of being a manger at a fast food restaurant and all of the stress and people management skills are needed. It usually entails a lot of student that have low self esteems and poor qualifications for real college but have a large work ethic and are willing to get their hands dirty. With the way the corporate ladder is set up in McDonalds people can work their way up and down the ladder with hard work no matter the education level or set up. This university could be just what the economy needs to grow.
Greece firing 15,000 government workers
http://www.cnn.com/2013/04/28/world/europe/greece-bailout-layoffs/?hpt=hp_t3
According to the article the Greek government has agreed to fire 15,000 government workers. This has been done in order to secure a further 8.8 billion euros in the bailout packages from the European Union and the International Monetary Fund. This is a part of the series of budget cuts that have been implemented in the troubled nation. Increases in taxes and cuts in fiscal spending has led to unemployment and has not resulted in any economic growth. These austerity measures have been highly unpopular in the general public and ave led to many protests.
Furthermore, the sacking of public officials would be met with outcry because the Greek constitution as guaranteed permanent employment to a government employee. However, the bailout package is very important for Greece and it is in Greece's best interest to go ahead with the decision despite its unpopularity.
According to the article the Greek government has agreed to fire 15,000 government workers. This has been done in order to secure a further 8.8 billion euros in the bailout packages from the European Union and the International Monetary Fund. This is a part of the series of budget cuts that have been implemented in the troubled nation. Increases in taxes and cuts in fiscal spending has led to unemployment and has not resulted in any economic growth. These austerity measures have been highly unpopular in the general public and ave led to many protests.
Furthermore, the sacking of public officials would be met with outcry because the Greek constitution as guaranteed permanent employment to a government employee. However, the bailout package is very important for Greece and it is in Greece's best interest to go ahead with the decision despite its unpopularity.
Spain's unemployment rate jumps to 27 percent
http://www.aljazeera.com/news/europe/2013/04/2013425849503846.html
More than six million Spaniards were out of work in the first quarter of this year, raising the jobless rate in the euro zone's fourth biggest economy to 27.2 percent. The number of unemployed climbed by 237,400 people to 6.2 million, as the Spanish economy contracted by 1.37 percent since last year. The office of the prime minister of Spain is expected to unveil new package of reforms to revive the economic activity. Spain is one of the largest economies in The Euro zone crisis, which has had lots of unemployment and economic losses. In France, the second biggest euro zone economy, official data to be released later on Thursday are also expected to show a record number of jobless workers.
More than six million Spaniards were out of work in the first quarter of this year, raising the jobless rate in the euro zone's fourth biggest economy to 27.2 percent. The number of unemployed climbed by 237,400 people to 6.2 million, as the Spanish economy contracted by 1.37 percent since last year. The office of the prime minister of Spain is expected to unveil new package of reforms to revive the economic activity. Spain is one of the largest economies in The Euro zone crisis, which has had lots of unemployment and economic losses. In France, the second biggest euro zone economy, official data to be released later on Thursday are also expected to show a record number of jobless workers.
China to buy 60 Airbus planes from France
http://www.aljazeera.com/news/asia-pacific/2013/04/201342593155160420.html
The article talks about how French President Francois Hollande begins two-day visit to China in bid to bolster economic ties. President Francois became the first president to visit china since Chinese President Xi Jinping became the head of state last month. The announcement came in on the first day of the visit, which is focused on enlarging and expanding trade relations between China and France. The majority of the planes will be built in the Boeing plant 160km outside China's capital. France accounts for 1.3 percent of china's exports. The visit from the french president came as the french officials saw the trade deficit with China of $34bn last year unsustainable. there are high hopes that French nuclear giant Areva and the Chinese energy group CNNC will sign letters of intent on the construction of a nuclear waste treatment facility. Also, the french Carmaker Renault hopes to progress negotiations on a proposed factory at Wuhan that would produce 150,000 vehicles per year. The visit is expected to vastly boost trade between the two countries.
The article talks about how French President Francois Hollande begins two-day visit to China in bid to bolster economic ties. President Francois became the first president to visit china since Chinese President Xi Jinping became the head of state last month. The announcement came in on the first day of the visit, which is focused on enlarging and expanding trade relations between China and France. The majority of the planes will be built in the Boeing plant 160km outside China's capital. France accounts for 1.3 percent of china's exports. The visit from the french president came as the french officials saw the trade deficit with China of $34bn last year unsustainable. there are high hopes that French nuclear giant Areva and the Chinese energy group CNNC will sign letters of intent on the construction of a nuclear waste treatment facility. Also, the french Carmaker Renault hopes to progress negotiations on a proposed factory at Wuhan that would produce 150,000 vehicles per year. The visit is expected to vastly boost trade between the two countries.
Samsung rings up record quarterly profits
http://www.aljazeera.com/news/asia-pacific/2013/04/201342653621483160.html
This article talks about how Samsung profit sales are through the roof as they set a new record for profit in the first three months of the year. In their earnings report, the South Korean giant reported a $6.4 Billion profit, up 41.6 percent. The earnings figures were released on the same day as the new version of Samsung's flagship smartphone, the Galaxy S4, went on sale in South Korea ahead of a planned global roll-out. However the company is expected to suffer from the Sanctions on Iran, which will hurt the company's profits as it prevents them from providing services in Iran. Also, samsung is expected to experience stiffer competition in the near future due to expansion of low to mid end smart phones market.
This article talks about how Samsung profit sales are through the roof as they set a new record for profit in the first three months of the year. In their earnings report, the South Korean giant reported a $6.4 Billion profit, up 41.6 percent. The earnings figures were released on the same day as the new version of Samsung's flagship smartphone, the Galaxy S4, went on sale in South Korea ahead of a planned global roll-out. However the company is expected to suffer from the Sanctions on Iran, which will hurt the company's profits as it prevents them from providing services in Iran. Also, samsung is expected to experience stiffer competition in the near future due to expansion of low to mid end smart phones market.
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