If you have a chance to visit Jeff SOMMER’s blog or New York Times’ web page, you can be familiar to last developments in economical and business arena. Jeff SOMMER interviewed some people who are in business issues about global economic situation, possible developments of Saturn, expansion of Amazon and rising share holder dissent.
Relating to global economic recession, different opinions are stated. According to some thoughts, on the technical point of view it is not a recession but it is look like a recession and when it is compared to last winter, economic indicators relating to production or industrial output is better. The arguments for economic recovery were also discussed in that interview. There are some strong arguments which give clues about the economic recovery like housing industry, budget balance and rehiring of people. Also based on the Barkley’s opinion, it is expected to 5 % GDP growth for the next year first quarter.
Regarding to global recession, one important matter is people’s fear of deflation. People are worrying about it but for the actors in economy, deflation is short-run phenomena. Conversely, for the long-run inflation is the real phenomena. Another important matter according to economic experts is the value of gold. Gold is stored by people as investment tool but as what happened to oil in last summer, the value of gold will fluctuate. Last summer barrels of oil increased to $ 145 and then it landed down softly up to $ 33. Therefore it can be thought that the value of gold for the moment might be overvalued. Also the depreciation or appreciation of currencies among themselves might be problem. Especially depreciation of yuan against euro and pound will affect the international trade and foreign trade deficit.
Lastly regarding to global economic crisis, on the first anniversary of collapse of “Lehman Brothers” President OBAMA warned economic actors on the weakness and fragility of financial system. He especially asked Wall Street executives to accept the strict rules voluntarily.
This year G-20 Summit will be held in Pittsburg on September 24-25. Strengthening transparency and accountability; promoting integrity in financial markets; reinforcing international cooperation; and reforming the international financial institutions are the some major topics which will be assessed during summit[1]. Another possible topic for USA and Chine to be discussed is international trade conflict. After 35 % tariffs was imposed to Chinese tyres by USA, Chine immediately started to investigation of damping on American chicken and car parts. Formidable negotiations are waiting for these countries.
One of the major development in business arena last week was the announcement made by GM regarding to Saturn cars. GM stated that if Saturn car was not sold, the production of this car would be stopped in 2011. Roger PENSKE, chairman of Penske Automotiv Group. seems to be volunteer to acquire brand name of Saturn. In 1980’s he succeed to make profit for GM. He can motivate people and increase their productivity. Probably, he will use the same car retailer network. Authorities think that Mr. Penske will success in this project.
The last development for the last week is expansion of Amazon. It started to sell books online 14 years ago, it still sells books online but now it sells variety products online. Last year it grew approximately 35 % and competing with Amazon for the small business companies is becoming more difficult each year. It has some serious advantages like storing capacity of products, selling some products to some states without tax, and using its scale in negotiation with suppliers. For the moment, stopping to Amazon’s growth seems not possible.
See you next time…
Sources:
http://www.nytimes.com/pages/business/index.html?scp=1-spot&sq=business&st=cse
https://www.pittsburghg20.org/Calendar.aspx
http://farm4.static.flickr.com/3264/3161995578_b27ec4971f.jpg
No comments:
Post a Comment