Archive for the ‘Grow Page’ Category

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Things Are Looking Up For Greece

Thursday, August 19th, 2010

Greece, after plummeting into an economic black hole a few months ago, is slowly crawling back to more stable territory.

  • Greece is in the process of implementing their austerity program, which includes civil service pay, reduced pensions and increased taxes.
  • The initial success of this program allows Greece to receive the next installment of its bailout package – a $9 billion boost.
  • Though the progress of Greece’s economy is overwhelmingly positive, there are still large economic glitches to overcome.
  • In the first half of the year, tax collection was below target and local government spending was over budget.

Facts & Figures

  • The Euro, which dropped to $1.19 in June has rebounded to $1.32.
  • Greece is trying to dig itself out of a $400 billion budget deficit.

Best Quote

“You have a government here that is clearly determined to move ahead. This program is off to a very good start. I would say a very impressive start.” – Paul Thomsen, Head, I.M.F. Delegation.

Financial Regulation Shifts The Focus Of Wall Street’s Leaders

Wednesday, August 18th, 2010

It’s a new world on Wall Street and banks are looking for leaders who can handle the unfamiliar territory.

  • The new financial regulation measures deter banks from trading simply for their own benefit and push them to focus on riskier investments that directly serve customers.
  • As a result, choosing the head of an investment bank can no longer be based solely upon a person’s level of financial success and leadership skills.
  • Chief executives of banks must also be astute risk managers who can handle varying business lines.

Facts & Figures

  • Citi is scaling back trading and expanding advisory business.

The Growing Market For Online Shows

Tuesday, August 17th, 2010

Although the market for internet shows declined during the recession, it is now attracting increasing amounts of sponsorship and advertising.

  • Interest in Web-based shows has waxed and waned in recent years, but it’s now on the rise again. As people continue to spend more time online, traffic for these types of shows is expected to increase.
  • The new faith in these programs comes from the realization that online shows won’t replace TV shows anytime in the near future, but they can provide an alternative viewing experience with different standards.
  • Many funding deals for these shows come from increasingly popular branded entertainment deals, where a company sponsors a show in return for having its brand somehow incorporated into the show itself.

Facts & Figures

  • An estimated 86% of users in the United States watch at least one online video per month.
  • Last month, YouTube put up $5 million in grants for online producers.
  • Commercials for professionally-produced internet shows cost $15-$35 per thousand views; banner ads cost $5-$15 per thousand views.

Best Quote

“I often think of my daily business life as a guy running a cable network in the early 1980s. There is, no matter how you slice it, a timeline for any new industry to grow.” –Rob Barnett, Chief Executive, My Damn Channel

Media Outlets Are Betting On Tumblr

Friday, August 13th, 2010

Many media companies are using Tumblr to reach out to their readerships.

  • Tumblr is considered the new hot social networking tool, and many media outlets are hoping it will become the next big thing.
  • Although Tumblr’s audience is currently much smaller than Twitter’s or Facebook’s, the companies that have chosen Tumblr think that the audience will expand greatly in the near future.
  • Tumblr’s greatest asset is the way in which it allows users to create a page that reflects their personality.

Facts & Figures

  • Tumblr currently has 6.6 million users.
  • An estimated 25,ooo new Tumblr accounts are created daily.
  • The company recently raised $5 million in venture capital.

Best Quote

“Going back 20 years, publications like Rolling Stone didn’t interact with readers except for letters to the editor. One of the realizations that cultural leaders and publishers have had is that there is a lot of expertise, wisdom and ideas in their readership.” –James E. Katz, professor of communications, Rutgers University

Competition Between Two Power Search Engines Intensifies

Thursday, August 12th, 2010

As the search engine Bing accumulates more users, Google attempts to adopt some of their new features.

  • Google has long held the majority of users in the search engine market, but its percentage is now dropping, while Bing’s and Yahoo’s ia rising.
  • Google has favored a simple, no-frills approach to searching, but now, faced with Bing’s breadth of new features, it is rethinking that strategy, going so far as to imitate Bing in some areas.
  • Although Bing still has only a fraction of Google’s audience, we’re likely to see the competition between the two search engines ramp up even more in the future.

Facts & Figures

  • Google handles 62.6% of all internet searches; Bing only handles 12.7%. However, Bing’s percentage has increased from only 8% when the search engine was first introduced.
  • Over the last 12 months, Microsoft’s online services division suffered losses of $2.36 billion on revenue of $2.2. billion.
  • Google made 500 adjustments to its search algorithm in the past year alone.

Best Quote

“There is a cold war going on. Clearly, you can see how Bing’s competition is forcing Google to try and catch up in some places.” –Sandeep Aggarwal, Senior Internet and Software Analyst, Caris & Company

More Concerns About The Economy

Wednesday, August 11th, 2010

The U.S. is still slowly recovering from the worst recession since the 1930s.

  • The economy has now grown (slowly) for four straight quarters.
  • The slow economy growth has made little impact on the unemployment rate.
  • New home construction, imports, and business investments all increased in the second quarter.
  • Consumer spending, which normally accounts for 70% of U.S. economic activity, didn’t rise as much as expected.

Facts and Figures

  • The current unemployment rate is 9.5%.
  • While imports increased by 28.8%, exports increased by 10.3%, creating a trade deficit.
  • Business investment increased by 17%, which was the largest increase since the beginning of 2006.
  • New home construction increased 27.9%.

Our Ever Weakening Dollar

Tuesday, August 10th, 2010

As concerns about the struggling economic recovery rise, the U.S. dollar falls.

  • The dollar index has hit a 3 month low (81.354) after reports were released that the economy slowed 2.4% in the second quarter.
  • Other currencies, like the Euro, Sterling, and Aussie, increased.
  • Experts said that the rise in other currencies is unlikely to continue if the U.S. economy continues to struggle.

Facts & Figures

  • The Euro rose 0.2% to $1.3072, nearing a 3 month high.
  • The Sterling hit a 6 month high of $1.5820.
  • The Yen fell from an 8 month high.

Best Quote

“We’re seeing a disconnection as U.S. data stays weak yet risk appetite is strong. Weak U.S. data will translate into risk aversion at some point.” -Tom Levinson, Currency Strategist, ING

With India and Britain, The Empire Doesn’t Strike Back

Friday, August 6th, 2010

India experiences colonialism role reversal as Britain scrambles to hook into their budding economy.

  • The British Prime Minister, David Cameron, plans a visit to India that will focus on increasing trade between the two countries.
  • Mr. Cameron’s trip indicates the global economy’s shift towards developing nations and his commitment to latch onto India’s booming business world.
  • During Cameron’s trip he will ring the opening bell on the Bombay Stock Exchange, introduce a solar-powered mobile handset and deliver a speech entitled “U.K. and India: A New Economic Partnership” to bankers and businessmen.

Facts & Figures

  • British companies Marks & Spencer and Bentley Motors have started investing in India in recent years to tap into new wealth.

Best Quote:

“India is an incredibly dynamic market that will grow substantially in the next five to 10 years.” - Stephen Phipson, President, Smiths Detection.

A New CEO, New Plan For BP

Thursday, August 5th, 2010

With Robert Dudley as BP’s new CEO, the company plans a much needed face-lift.

  • BP’s CEO has just been replaced (from Tony Hayward to Robert Dudley).
  • BP plans to pay $32.2 billion for the oil spill but may face later fines if found negligent over the spill.
  • Looking forward, BP promises to be more focused on safety and reliability.
  • Dudley encourages the entire global oil and gas industry to rethink its safety systems and equipment used in deep water.

Facts & Figures

  • The oil spill wiped out almost 40% of BP’s market value.
  • BP reported a 2nd quarter loss of $17.12 billion.
  • BP is assuming that it won’t be found guilty of gross negligence.

Best Quote

“Mr. Dudley is not a new broom. As an insider, one wonders if he has the appetite to push for radical change at BP.” -Ivor Pether, Fund Manager, Royal London Asset Management

Ford Gives The U.S. Hope

Wednesday, August 4th, 2010

Ford reports an exceptionally strong first half of 2010 and causes optimism for the U.S. auto industry.

  • Ford’s second-quarter earnings were much stronger than expected and the company is on track for “solid profits” in 2010.
  • Ford plans to discontinue its Mercury brand and sell Volvo to China’s Geely in the 3rd quarter because it wants to focus on mass marketing Ford and Lincoln brands.
  • Ford was the only large U.S. automaker to avoid bankruptcy in 2009, and is therefore in greater debt than GM and Chrysler.
  • Ford paid back 7 billion dollars of debt in the 2nd quarter (now $27.3 billion in debt) and plans to continue debt reduction.

Facts & Figures

  • Second-quarter net profits were $2.6 billion, compared to $2.26 one year ago.
  • Ford revenue increased by $4.5 billion to $31.3 billion.
  • This is the 4th consecutive quarter that Ford has reported profits.

Best Quote

“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions.” -Alan Mulally, Ford Motor Co., Chief Executive

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