Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Tuesday, October 6, 2015

"Why Pick-your-own orchards are a Scam"

Basically you, apple self-picker, are profitable labor and sort of a bin for almost expired fruit for pick-your-own orchards: 

 Oh, the American economy 

 "Why pick-your-own orchards are a scam" by Daniel Gross -slate.com

 "A few weeks ago, the New York Times ran a poignant article about anguished fruit farmers in California. Because of a crackdown on illegal immigrants, they couldn't find workers willing to pick their pears, even at $150 per day. And as a result, perfectly good fruit rotted in the fields.

 Perhaps the California farmers, who depend on migrant Mexican labor, have got the wrong business model. Instead of paying workers to pick their fruit, they should try another strategy: making customers pay to pick the fruit themselves. Savvy farmers all over the country have discovered a practice that might not work as a nationwide agricultural policy, but that has allowed some economically inefficient orchards to thrive: Encourage yuppies and their progeny to come pick your fruit—they'll pay handsomely for the privilege, buy more than they'd ordinarily consume, and then shell out for all sorts of other value-added products. It's the best use of child labor since Manchester's early 19th-century textile mills.

... 

 We've been educated (or bullied, depending on your outlook) by foodies like Alice Waters and Dan Barber to adopt the European concept of terroir—the best stuff to consume is the stuff grown in closest proximity. For people in the Northeast, that's fine in the summer, when the Union Square greenmarket bursts with locally grown exotic greens, yellow squash, and heirloom tomatoes of such flavor (and cost) as to make a gourmand weep. 

 But in the fall, while the region's landscape lights up with foliage, the farm stands' color palette becomes more drab: potatoes, root vegetables, pumpkins, gourds, and, of course, apples. And so, to the pick-your-own orchards we go."

 http://www.slate.com/articles/business/moneybox/2009/10/against_apple_picking.html

Sunday, June 29, 2014

My Overview of the Luxury Market Movements and Investment Opportunities

Ralph Lauren Logo
The Luxury market has evolved over the recent years. And, for a while it was not much of an appealing investment.
This was due to several factors. The definition of ‘luxury’ is the antithesis of necessity. 
During the financial crisis era luxury was  not necessary. Consumer spending dipped these past years. However, companies within the luxury retail industry have had to acclimate to economic conditions.
U.S. global recession is slowly dissipating and consumer sentiment has percolated.  The recent years have left prints on the luxury retail market while experiencing an overall positive growth with shifts in the following: customer base, luxury image, and international presence.   This means high growth potential for participants within the luxury retail industry.
Diverse Luxury Consumer
One factor includes the increase in customer base which is bringing additional cash flow to these companies. Historically, a more homogenous base of affluent customers were primary consumer targets for luxury companies. Now that has shifted to a more diversified-income customer base. This is especially observed in the United States. Companies are creating labels that target the more average-income consumer; for example Ralph Lauren’s Polo Brand Groups and Michael Kors’ Kors line. 
Global Luxury
Another source of growth comes overseas. (According to Boston Consulting Group) Over 2013, global luxury spending grew by 2%. Over 2012-2016, the global luxury goods market is expected to grow CAGR (compound annual growth rate) of 7.9%. Today, the U.S. luxury market composes 35% of the global luxury market whereas in 2005 America represented 20%. Internationally, there is a burgeoning potential; especially in Europe and China. There has been a 2% and 4% growth in European and Chinese luxury markets, respectively. (According to Bain & Company,) Europe’s residents and tourists buy 34% of the world’s luxury goods. Even now, Europe serves as a capitol within the realm of high-end fashion brands. However, fashion potential has also sprouted in China: $1 of every $4 is spent on global luxury goods. Another emerging market within the luxury sphere is Africa: 11% growth for luxury. 
Luxury Image
The idea of fashion-technology marriage has further speculating a new booming industry. This has  potential for revenue growth for luxury retail as it moves toward a ‘necessity’. One prominent shift includes a dimmed desire to brandish signature emblems of a brand and interest in fashion-tech products. Luxury carries value from authenticity, exclusive motif, and utility rather than exhibitionism. (According to Bain & Company) Thirty-five percent of the luxury consumers put quality first before the logo. Now, subtle intricacies of a designer and the depth of a label yield the luxury-induced prestige. Due to this, companies are moving towards sans-logo products which includes Prêt-à-Porter products combined with technology. These companies will strengthen their luxury labels as they focus on connecting  a luxury experience directly with consumers.
Two iconic luxury retail American companies, have been making interesting strides: Ralph Lauren (RL), and Michael Kors (KORS).
Ralph Lauren
Ralph Lauren, known as an iconic American company for authentic western fashion, made Team USA’s Olympic uniforms.  This was a grand strategy towards global exposure at one of the largest international events. The company carries strong brand power. Ralph Lauren’s portfolio of brands include Black Label, Purple label, Lauren by Ralph Lauren, Ralph Lauren Collection, Chaps, Club Monaco, and more. These are some of the most recognized in the world.
Additionally, Ralph Lauren is opening more stores and expanding e-commerce to further reach out to the consumer. In New York City, Ralph Lauren will open a Polo flagship store on Fifth Avenue in September 2014.  The company is increasing it’s presence internationally.  Ralph Lauren will open a 20,000 square feet flagship store in Hong Kong. 
Previous CEO of Yves Saint Lauren, Reed Kratoff, director of LVMH Moët Hennessy Louis Vuitton, and with experience at Christian Dior, Valérie Hermann is joining as President of Ralph Lauren Luxury Collections (RRL, Black Label, Purple Label, fine Jewelry, etc.). Not only is this to expand Ralph Lauren’s luxury business (higher-end labels) but also to strengthen merchandise innovation in accessories. Ralph Lauren’s current market cap values at $14B. 
Michael Kors
Michael Kors, known for fashion with jet-set aesthetic and modern elegance, has been making waves. As it made its market debut two years ago, Kors’ entrance has posed quite a competition. This is especially for brands such as Coach which has suffered low sales recently. Kors is also penetrating the international market, turning out to be a strong rival among the European fashion houses. The company challenged European luxury by opening stores near the competition; such as in Paris, France. Given context of the Euro-zone crisis Kors’ mix of luxury, affordability, and hint of American style is appealing to Europeans. Europe sales have more than doubled. And recently, Kors opened a 5,800 square feet flagship in China. Michael Kors current valued at $18B and will reported earnings May 26th.
 Future Luxury IPOs and Competition
Luxury market faces burgeoning competition. Other market participants may follow suit with an IPO; such as, Tory Burch and J. Crew Group, Inc. group. Both are speculated to enter the equity market this year. Tory Burch has been subtly increasing its image and J. Crew has opened stores in Hong Kong and London.
With a new CEO, Craig Leavitt, and new  narrowed focus to one label only, Kate Spade (KATE) can embrace potential for further positive growth. The company recently changed their name from former name, Fifth & Pacific Companies after selling off Lucky Brand Jeans.
Michael Kors on the rise

Michael Kors' last quarter was remarkable as it grew sales by 59% and income by an even greater margin of 77%. Kors earned $230 million on a little over $1 billion in revenue. Furthermore, Kors only has 9% of the luxury handbag market. The company has an excellent opportunity to eat away at Coach's larger share of 22%.

In comparison with Kate Spade, Kors is in a better position financially as it carries no debt and has a cash account of over $800 million. Conversely, Kate Spade has a little less than $400 million in debt and just shy of $100 million in cash. On a valuation basis, Kors trades at almost half of the P/E multiple of Kate Spade, 32 versus 57.

Also, Michael Kors is expanding into new products and markets in a recent deal with Luxottica Group. The two companies are introducing a Michael Kors eye-wear collection that will debut in early 2015. Michael Kors is also working to capture more share of the growing men's luxury business in addition to its bread-and-butter business of women's luxury fashion.

Tuesday, March 11, 2014

The Cost of Making Pennies and Nickels is More Than What The Coins are Worth--Two Graphs.

WashingtonPost: Taxpayers lost $105 million on pennies and nickels last year

"In 2013, the cost of making pennies and nickels exceeded their face value for the eighth year in a row. The cost of minting a penny stood at 1.8 cents, nearly twice its face value. Nickels cost twice as much as dimes – 9.4 cents vs. 4.6 cents – despite being worth only half as much."
Two graphs that explain everything. 


Thursday, March 6, 2014

Everybody wants Drones. Amazon, Facebook, Etc.

Everybody wants Drones. Amazon, Facebook, Etc. 


WASHINGTON POST: "Facebook is in talks to acquire Titan Aerospace, a drone-production company that has just started taking orders for its Solara 50."

TECH CRUNCH: "From our understanding, Facebook is interested in using these high-flying drones to blanket parts of the world without Internet access, beginning with Africa. The company would start by building 11,000 of these unmanned aerial vehicles (UAVs), specifically the “Solara 60″ model."

Wednesday, March 5, 2014

Energy Investor? Russia, Ukraine, Global LNG (and Energy) Landscape (plus Investment Opportunities).

Energy Investor? Russia, Ukraine, Global LNG (and Energy) Landscape (plus Investment Opportunities).

Update yourself:
This is what was going in Ukraine. 

This is what happened to Russia's economy--stocks, currency, and oil/gas. Plus Updates.

This is WHY it is important and how it contributes to the Dynamic Energy Landscape: 

Europe relies on natural gas and oil from Russia--so does Ukraine. These recent events could demonstrate why the US Government's FERC should expedite Liquefied Natural Gas (LNG) export proposal applications soon. US LNG exports could potentially relieve European area's reliance on Russia's gas exports and weaken Russian influence with Ukraine and in general, within the energy sphere. 

MAIN Quick Important Question (QIQ): However, what would happen to U.S. domestic gas prices? Power/Utility companies wouldn't be so thrilled.

NEW UPDATE 3/6/14: Crimea Parliament is asking to be part of Russia (BBC). Further push for US Government to approve gas export proposals. 


Investment Opportunities due to the Natural Gas Boom in the United States: 

VALUE LINE (Investment Research Publishing): Key Movements And Investment Opportunities In The Dynamic Energy Landscape--SRajani:
Shale Gas RevolutionThe shale gas revolution has catalyzed the dynamic energy landscape in the United States. Domestic natural gas production has surged to record levels. This unexpected high shale gas output is primarily due to hydraulic fracturing technology, or fracking, which has allowed new discoveries of gas resources of reserves to pay off. These include Marcellus in the northeast, Bakken in North Dakota, and Eagle Ford in Texas.
LNG LandscapeBecause of the high supply of shale gas, there has been a surge in applications for Liquefied Natural Gas (LNG) terminals to ship U.S. gas internationally. About 30 export applications have been sent to the U.S. Government Department of Energy’s (DOE) Federal Energy Regulatory Commission (FERC). However, it has been a challenge for LNG market participants to get these export permits approved. The DOE aims to limit the amount of U.S. LNG that can be exported to resist domestic natural gas price spikes. There is also pressure from power companies and/or petrochemical companies that use natural gas as feedstock for production of petrochemicals to restrain exports. Those include: DowChemical (DOW), Huntsman Corp. (HUNCelanese (CE), and Eastman Chemical Co. (EMN).
Recently, the FERC approved an export license (subject to environmental review) for the Cameron LNG. This was a significant step towards final approval. Cameron LNG terminal is located near a major pipeline hub that serves about two-thirds of all U.S. natural gas markets. This application was submitted by Sempra Energy (SRE). Sempra Energy’s stock went up 1.5% topping at $94.21 per share that day. After the environmental review is completed, the next step will be the final regulatory approval.
The Cameron terminal is located near the Texas border near Hackberry, LA. A big proponent of this approval, Louisiana Senator Mary Landrieu, will soon be chairwoman of the Senate Energy and Natural Gas Committee.Cheniere Energy Inc. (LNG) is also building a $10 billion LNG export terminal. Given this upcoming senatorial change, export approvals may be expedited, which could be a plus for Cheniere.....continued. Read more 

Monday, March 3, 2014

Ukraine, Russia, Stocks, Ruble, Economics. Quick Important Questions (QIQs)

Ukraine, Russia, Stocks, Ruble, Economics. Quick Important Questions (QIQs)

Spiegel


Update yourself: Click This is what was going on in Ukraine and why Russia was involved


Summary: There were protests in Ukraine. Half of Ukraine did not want to be involved with Russia. Protests ousted Ukraine President Victor Yanukovych, who was pro-Russian.

UPDATE STARTS HERE:

US warns Russia not to intervene in Ukrainian matters.  Russia invades Ukraine taking over Crimea. Russian troops are telling Ukrainians to support the pro-Moscow leaders.

What is Ukraine thinkingUkraine Prime Minister Yatsenyuk said: "If President Putin wants to be the president who starts the war between two friendly and neighboring countries, he has [almost] reached this target. We are on the brink of disaster. There was no reason for the Russian Federation to invade Ukraine."

Now Russia Is Going Crazy, Economically.

STOCKS: Russian stock market crashed (RTS Index is down 12 percent.)

18:40
1,115.06
-12.01%
18:44
128.17
-1.31%
18:41
244.77
-0.50%
18:42
179.51
-0.47%
20:06
73.73
-0.98%
18:39
335.48
-8.08%

CURRENCY: Russian Ruble plunged
(Dollar hit all time high (1USD = 37 Ruble, 1EUR = 51 Ruble)
(good time to travel there)

Russian Central bank raised their interest rate from 5.5 percent to 7 percent to save their currency.
(sell your rubles)

COMMODITIES: Oil prices hiked. Russia is the world’s largest oil producer and the main supplier for refined products to Europe.

Silver lining: Norway’s Statoil stocks are benefitting. Why? They are the largest non-Russian supplier of gas to Europe.

Basically? Everyone is shutting out Russia.

What is the US doing? Secretary John Kerry has gone to Kiev for diplomatic talks/actions. 

MAIN QIQ: Is the US going to go to war because of this? TBC

NEW UPDATE 3/6/14: Crimea Parliament is asking to be part of Russia (BBC). Further push for US Government to approve gas export proposals. 


Thursday, February 13, 2014

The Big Mac Index, Invented By The Economist Since 1986--How much does your burger cost in Norway? $7.80


The Big Mac Index, Invented By The Economist Since 1986
How much does your burger cost in Norway? $7.80


The Economist: "It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries."
Burgernomics

Overvalued Countries:

  • Norway
  • Venezuela
  • Switzerland
  • Sweden
  • Brazil
  • Denmark
Want your burger cheap?
  • India
  • South Africa
  • Malaysia
  • Ukraine
  • Indonesia

India is the most undervalued, probably due to low demand of beef products.


Wednesday, February 12, 2014

USA Mapped According to Other Countries' GDP--TX Economy is the Size of a Continent

USA Mapped According to Other Countries' GDP--TX Economy is the Size of a Continent


Texas = Australia... a continent
California = Italy....which may be on the verge of collapsing?
Business Insider: "Italy's government is on the verge of collapsing, as Prime Minister Enrico Letta faces criticism from Matteo Renzi, the mayor of Florence and leader of the party that heads up Letta's coalition government. The two had a "chilly meeting" today to discuss the possibility of a takeover."

Thursday, February 6, 2014

Coca-Cola in Capsules. Soda Companies Making Moves in the Beverage World. First Zico Coconut Water and now Green Mountain.

Coca-Cola in a Capsule. Coca-Cola Makes Moves in the Beverage World. First Zico Coconut Water and now Green Mountain. 

MarketWatch


Partnering with Coca-cola via a 10-year deal, Green Mountain will make and sell Coca-Cola-branded pods to go with the machine.

Earlier this year Coca-Cola acquired pioneering Coconut Water Brand--Zico Beverages LLC. Now Coca-Cola just took a 10 percent stake in Green Mountain Coffee Roasters, Keurig single-serve coffee brewer.

Basically, buy a pod, put it in a machine, and get Diet Coke, Sprite, Dr. Pepper in your homes or offices in a cup.
 
Smart Move Coca-Cola. 

Markets: Thursday Trading: $KO up 1 percent, $GMCR up 30 percent 

Soda companies are making big moves within the beverage industry--reaching out to other trendy drinks. Pepsi-Co is also on the red carpet introducing QUA (subject to change). This competes with Coca-Colas Smart Water. 


AP: "Qua is made with tap water. The brand, which PepsiCo says is "micro-filtered" and free of sodium, is slated to be tested regionally in California this summer before expanding to other markets."
Soda Market: Soda spending and consumption, especially diet, has declined due to health-conscious consumers. So what's healthier (and sexier) than water? Luxurious looking Water. 

AP

AP: "Bottled waters have surged in popularity over the years and represent an important opportunity for Coca-Cola and PepsiCo, which are struggling to sell more soda. Since hitting a peak in 1998, U.S. soda consumption has been on a downward trend, and declines have accelerated in recent years. 
The problem with run-of-the-mill bottled waters, however, is that people tend to just buy whatever's cheapest. Coke's Dasani and Pepsi's Aquafina, for example, don't exactly have sexy images that make people willing to pay more for them. So the companies are focusing on brands they can market as being premium, thus commanding higher prices."
CNNMoney: "It's a concern on the mind of Pepsico (PEP,Fortune 500) CEO Indra Nooyi, who told investors in October that her company has seen "a fundamental shift in consumer habits and behaviors," adding that "the diet slowdown has been a little more rapid than we expected." 

Monday, February 3, 2014

Wednesday, January 29, 2014

World Economic Forum, DAVOS 2014. My Quick Overview


World Economic Forum, DAVOS 2014

Theme: "The Reshaping of the World: Consequences for Society, Politics and Business

The World Economic Forum brings together about 2500 business leaders, economists, international leaders, etc to discuss pressing issues. 

My DAVOS 2014 in Six Bullets: 
  1. Iran is ready to mingle with the rest of the world: 
    • Iran's President Hassan Rouhani says Iran is seeking "constructive engagement with the world" 
  2. "Japan is back" Says Japan's Shinzo ABEnomics signaling  
    • “Japan has sworn an oath to never again wage a war,” ... “We have never stopped, and will continue to be wishing for the world to be at peace.”
  3. England: BOE, Governor Mark Carney: IR won't rise. 
    • "No immediate need to increase interest rates"
  4. Brazil may be quite volatile but has 'huge opportunities' as other big economies heal
    • President Dilma Rousseff: “We will be more dynamic because that’s where the huge opportunities lie.”
  5. US, Larry Summers, Ex-Treasury Secretary, Spend now! Especially on infrastructure
    • “The moment when we can borrow money for 30 years in the 3% range (in a currency we print ourselves) and the construction unemployment rate is in double digits — if that is not the moment to fix Kennedy Airport, when will that moment ever come?”
  6. Euro-zone, Mario Draghi, President of ECB,  emphasizes no deflation!
Read more on MarketWatch

Iran President Rouhani on CNBC


Other Links:

Washington Post: World’s elite converge for 2014 World Economic Forum

REUTERS: "HIGHLIGHTS-Comments by policymakers speaking on a panel at Davos" regarding the Global Economy. Includes Larry Summers, Former US Treasury Secretary, BOJ Governor Haruhiko Kuroda, UK Finance Minister, George Osborne

Tuesday, January 28, 2014

After AAPL's Earnings, Shares Fell 8%, Icahn Bought $500M. Meanwhile, Watch Apple's Poetic Whitman Epic Commercial

Yes, AAPL's Earnings Were Below Estimates and Shares Fell 8%. Icahn Bought 500 M Shares.

Meanwhile, Apple's iPad Air Commercial is absolutely beautiful. Love Whitman.



"To quote from Whitman, 'You are here — that life exists, and identity; that the powerful play goes on and you may contribute a verse.' What will your verse be?"



AAPL Earnings To Know:

Tim Cook admitted that iPhone 5c's Demand 'turned out to be different than we thought.'
REUTERS: The world's most valuable technology company had lost $43 billion of its market capitalization more than the entire market value of Twitter Inc - at the stock's intra-day low of $502.07.
Carl Icahn, bought $500M worth of Apple shares. Icahn believes they are quite inexpensive right now but may go up a good amount as Apple releases a new product.

REUTERS: "Beyond the share buyback program, Icahn said he believes investors are underestimating Cook's message that the company will come out with products in entirely new categories this year. 
"I think it will be huger than people think," Icahn said. "They haven't done this in four years and the last one they did was something called the iPad. And let's not forget that Apple has a huge cult following.""
Beautiful and Poetic Apple Commercials: 





COMMERCIAL:
John Keating, Dead Poet's Society: "We don't read and write poetry because it's cute. We read and write poetry because we are members of the human race. 
And the human race is filled with passion. And medicine, law, business, engineering, these are noble pursuits and necessary to sustain life. 
But poetry, beauty, romance, love, these are what we stay alive for. 
To quote from Whitman, "O me! O life!... of the questions of these recurring; of the endless trains of the faithless... of cities filled with the foolish; what good amid these, O me, O life?" 
Answer. That you are here - that life exists, and identity; that the powerful play goes on and you may contribute a verse. That the powerful play *goes on* and you may contribute a verse. What will your verse be?"

Moi je veux crever la main sur le coeur
I want to die with a hand on my heart
Je Veux - Z az

Monday, January 27, 2014

WashingtonPost: "Moody’s just downgraded the health insurance industry." Why? One reason was Obamacare

WashingtonPost: "Moody’s just downgraded the health insurance industry." Why? One reason was Obamacare

S&P automatic default rate for healthcare industry: Moderate Risk (3). 


Washington Post: Stephen Zaharuk, Senior VP at Moodys: "For most insurance companies, the individual business has been a small part of their portfolio. It's not going to bankrupt the Wellpoints and Uniteds of the world. We also don’t think they’re going to make money on this, and they could possibly lose money on this. It is a small part of their business, and it lowers their credit outlook. Obviously as news trickles out about Affordable Care Act enrollment, and if we get positive enrollment that younger people are signing up, that takes off a bit of the pressure. And if we start seeing more robust employment, that will help too."

Thursday, January 23, 2014

Stock Investor? Corporate Profits Will Go Up. How? Goldman Sachs, Jan Hatzius has Four Reasons.

Stocks Investor? Corporate Profits Will Go Up. How? Goldman Sachs Economist Jan Hatzius has Four Reasons.



First, what happened in 2013?
  • Corporate profits strong
  • S&P 500 Profits jumped 11 percent year-over-year
And. 
  • Relatively weak U.S. GDP
  • Relatively weak U.S. Productivity 
  • Weak growth outside of the U.S.
  • Low/Declining inflation

2014?  
  1. Significant pickup in US GDP and productivity growth. 
    • Expect: acceleration 1-1.5 percentage points in 2014 vs. 2013
  2. Better growth outside the US. 
    • Global forecast: Steady
    • Particularly in Europe  and Emerging
  3.  A slight pickup in price inflation. 
    • Inflation likely to stay below Fed's 2 percent target
    • Expect: slight acceleration. Why? "recent weakness in healthcare cost inflation moderates and the output gap diminishes.This should modestly boost topline revenue growth in the corporate sector as well." (BusinessInsider)
  4. Only a modest pickup in wage growth.
    • Historically

Wednesday, January 22, 2014

China vs. USA Economic Growth--NYTimes

New York Times: China vs USA Economic Growth

China's economy is growing more rapidly than the U.S, in dollar terms. 


Numbers?: 
  • China: Grew 7.7 percent last year (after adjusting for inflation)
  • United States: Grew 2 percent last year (expected to announce on Jan. 30)
How? 
  • Faster real economic growth
  • Faster Inflation (good for Chinese Export Economy)
  • Appreciating currency (renminbi
NYT: "China’s economic growth figures released Monday morning may show a slowdown, but they still indicate that China is growing almost four times as fast as the United States in dollar terms, rapidly closing the gap in the size of the two countries’ economies.
...China’s economy more than quintupled in dollar terms from 2003 to 2013, to $9.2 trillion last year — still a little more than half the size of the American economy, but catching up fast."

Some implications: . A reduction in the program to $65 billion a month from the current $75 billion could be announced at the end of the Jan. 28-29 meeting, which would be the last meeting for outgoing Chairman Ben Bernanke." Jon Hilsenrath inThe Wall Street 

Monday, January 13, 2014

Why is Google Buying a Smoke-Detector Company for $3.2B? BC They Want To Be In Your Homes

Why is Google Buying a Smoke-Detector Company for $3.2B? Nest Labs 

Theory: Because they want to be in your home. 
Google: AndroidHeadlines
Nest's Products:
  • Track home temperature
  • Track presence of smoke
  • Track when you wake up
  • Track when you leave
  • Track when you return home
  • Can be controlled via smartphone. (Bingo. Smart Home?)
Essentially, their technology (hardware + software) uses tracking sensors and algorithms to gather data on your behavior and then program the tech accordingly.
NYT: "Internet companies are vying to be the gateway through which people live every aspect of their lives — whether searching, socializing, reading, shopping, exercising or sleeping. Their businesses, particularly advertising, are built on watching the way people behave online.
For Google, gaining visibility into people’s habits beyond computers and phones — whether watching television using Chromecast, taking a walk wearing Google Glass or managing their homes using Nest products — will provide a fuller picture of users.
“Google likes to know everything they can about us, so I suppose devices that are monitoring what’s going on in our homes is another excellent way for them to gather that information,” said Danny Sullivan, a longtime Google analyst...  
“The more they’re tied into our everyday life, the more they feel they can deliver products we’ll like and ads.”
Mr. Fadell said in an interview that he was aware of concerns among customers about Google having so much data about people, and that Google agreed that Nest’s privacy policy — which says that Nest will use customer information only to improve its products and services — would remain unchanged. 

Friday, January 3, 2014

Italian-American Carmaker Merger: Fiat and Chrysler--NYSE Future IPO?

Looking Forward to Fiat-Chrysler on NYSE in 2014--As well as Italian-American Automobiles

FT: "Carmaker Fiat-Chrysler is aiming to list in New York within the year, underlining the group’s emergence as a US-centric organisation following chief executive Sergio Marchionne’s successful broker of a full merger of the US group with its Italian partner."
An Italian-American merger of this sort, will provide wider geographical market coverage to the company.

Also, with this merger deal to buy out the other Chrysler owner's 40 percent stake, Fiat will become the world's seventh-largest automaker.

Worlds leading automakers: Toyota, General Motors, Volkswagen, Nissan-Renault, Hyundai, and Ford. With this deal, Fiat will be right before Honda.

Chrysler is the smallest of the three American car makers.

Numbers: Fiat will pay 1.75 B dollars in cash, Chrysler will make 1.9 B dollars contribution.

Together, Fiat and Chrysler sold 4.5 M vehicles in 2012.

NYT: "Though Chrysler and Fiat have shared for years such resources as product development teams, and such production assets as single platforms that can be used to build several models, consolidated ownership will allow the company to move forward more smoothly..."
Often, one global market will be up while another’s down,” said Jack R. Nerad, the executive editorial director at Kelley Blue Book. “If you’re stuck in a single region, it can be a disadvantage to compete against global players.”

UPDATED Jan. 5 2014: Reuters: Fiat Shares Could Double in Two Years 

Wednesday, January 1, 2014

FT Numbers of 2013: Business

Financial Times: Numbers of 2013, Business


10%: Apple is sitting on 10 percent of US corporate cash

30 Minutes: Jeff Bezos pledges it will take a drone 30 min to deliver an Amazon package from the moment a customer clicks ‘buy’

70%: Twitter shares soared 70 percent the first day of trading. Investors valued it at more than $30bn.

$22bn: Tesla’s Market Value was at 22 Billion Dollars at its peak—this is half the value of Ford and one-third of GM.

$13bn: JPM record penalty of 13 billion dollars to resolve civil lawsuits over residential mortgage-backed securities

8.5%: Gold prices fell 8.5 percent in one day in April—marking the steepest decline since 1983.

$1242: Bitcoin peak price.

FT Numbers of 2013: Economics/Govt.

Financial Times Numbers of 2013: Economics/Govt.



16 days: Number of days US Govt. shut down

$4tn: Size of Fed’s balance sheet

$680bn: US Budget deficit in FY2013 was 680 billion dollars—a 38 percent decline from 2012.

106,185: In the first month rollout of “Obamacare”, there were 106,185 people who were able to sign up for medical insurance.

0.3%: Eurozone grew 0.3 percent in Q2—first positive number in 18 months

20%: Francois Hollande’s approval rating was 20 percent marking the lowest for a post-war French President

0%: Italy’s Q3 GDP growth—first non-decline number after 8 consecutive quarters.

1,011tn Yen: Japan’s outstanding government bonds and borrowings end of Sept.