Google’s shares rose six percent on third quarter results that showed net income up 26%. The number of paid clicks grew 28%, and the number of employees grew by almost 2,600 (9%) in the past three months. At an annualised rate of 36%, this fast growth in costs is worrying analysts. But revenues jumped 37%, …
Category archives: Problems
Gap to close stores in US, open in China
GAP has announced that it will close 21% of its 889 US stores over the next two years, and triple its number of outlets in China by the end of 2012.
Global fears and fortunes truly linked
Even China’s strong internal growth can only partially compensate for the negative impact of the West’s economic and debt crises. In the 12 months to September, exports grew by ‘only’ 17% (down from 25% in the year to August). In the same period, imports grew by ‘just’ 21% (compared with 30% in the year to …
Cooperation between emerging market bourses
Globalisation of the world’s money markets has taken a big step forward as stock exchanges in Brazil, Hong Kong, Russia, India, South Africa announced they will cross-list each others’ stock index futures and contracts for index options.
Burma releases political prisoners
Burma’s government has freed numerous dissidents signalling a desire for reform. http://www.ft.com/cms/s/0/9e7affae-f493-11e0-a286-00144feab49a.html
The unintended consequences of QE
Quantitative Easing was intended to kick-start the economy by tackling the credit crunch, making new credit available in the US and Europe. What actually happened was that the financial institutions preferred to place the money where they could get a bigger return — emerging markets — with the result that not only did the intended …
Activist shareholders increase pressure on large companies, call for sell-offs
There has been a near-doubling in the number of companies worth more than $1bn who have come under pressure from “activist shareholders” to rethink their strategies and corporate governance. The result is that these companies are engaging earlier and more carefully with shareholder groups in order to avoid fights at AGM voting time. Focus is …
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Global salaries are equalising
But the change is coming slowly. http://www.ft.com/cms/s/0/3aa54f1a-f3fe-11e0-b221-00144feab49a.html
World grain output grows
Although US grain production was hit by bad weather, global production of wheat, rice and corn have risen on the back of higher market prices — by around 10%-40% in the past 11 years. Russia is still imposing an export cap, the Thai government is stockpiling rice, and grain supplies remain “on a razor’s edge” …
British Government lacks a strategy
Strategy means choosing what not to do, but the UK government is committed to “ambitious goals on pretty much everything.” “That’s not a strategy: it is an all you can eat buffet.” “Britain’s governments should set long term goals.” http://www.ft.com/cms/s/0/0fedc67a-f3ff-11e0-b221-00144feab49a.html