U.S Economy which seems to have share some respite in the form of companies depending on the overseas operations seems to spell trouble. The overall economic growth seems to be spiraling down, with rising inflation and low growth rate the companies depending on the overseas market seems to be hitting the U.S economy harder. Example of these are given by Reuters as Nike and United Parcel services which depend heavily on overseas market. Inflation becoming an international phenomena and with rising fuel prices the global players are facing trouble
Current Affairs Archives - Page 2 of 11 -
Microsoft has announced that it is no longer interested in the deal with Yahoo and this has paved the way for Yahoo to go ahead with talks with Google. The announcement of Microsoft came in even when the Software giant was ready to pay around $33 per share. With the new announcement of Google and Yahoo coming together, both the companies are looking at ways to expand the partnership.
Yahoo will control how Google’s ad would displayed along with its own advertising. It is said that there would be three and half a month delay for regulator review.
The ongoing talks with Yahoo and Google also paves way for for Yahoo to pursue a deal with Microsoft.
EU’s Telecom Commissioner Viviane Reding, has proposed guidelines for Telecom Industry. The objective of the guideline would be provide a fair sum of return on investments by the investors. In Ms. Rending words The guidelines would prove to be more beneficial now as the EU telecom industry is on the path of providing or proposing to provide high speed internet infrastructure facility and hence it becomes a necessity to exploit the existing EU framework. According to her it would also facilitate new entrants for a share of the infrastructure being provided by bigger companies, though of course for a fee. Hence this guidelines aims to provide a fair share of returns and also a fair share of the infrastructure that is being build in order to make investments in telecom much more attractive and lucrative. I guess such a guideline would serve as a great encouragement to investors and new entrants as well.
I guess what holds the attention for others will hold the attention of mine too. It is the features of 3G iphone, looks like most of the rumors about the features were true. In the article ‘Apple confirms iPhone Rumors’,by Lalee Sadighi. The second generation i phones supports 3G which makes it faster and even Steve Jobs confirmed that it is as close as Wi-Fi. The other much expected features were the built-in GPS (already present in Blackberry). Appearance wise it looks like it would be sleeker in the in the edges and the colors would be in Black or White. Many of the Apple followers would be happy with the announcement.
Apple iPhone second generation would be available in 70 countries by the end of the year.
As the European Central Bank turns 10 there are many problems that the bank is facing right now. First are the rising inflation and fuel prices. Jean Claude Trichet who is heading the ECB is having his hands full dealing with the various problems that the European Union is facing. A man of steel he is definitely showing grit and determination in handling situations. According to ‘Reuters’ the common decision taken by the ministers of the Union is that countries belonging to the union should not slash taxes or ‘wage awards should not be indexed’ as this would only aggravate the problem and makes it into a long term one. One important suggestion by President Nicolas Sarkozy, last week was capping of fuel prizes by European Union if the prices kept rising.
With a global problem of rising inflation and fuel prices, policies must be framed in such a way that not only caters to short term problem but looks into the long term aspect too.
Vodafone would be soon bidding adieu to its erstwhile CEO Arun Sarin. Sarin has announced his decision to resign after a span of five years. Arun Sarin has led the company through the times of rapid change and has timed the Hutchison Essar’s bid in India at the right time. The group is expecting to adjust its operating profit to rise between 11 billion to 11.5 billion after a 6% growth.
Arun Sarin would be replaced by deputy CEO VIttorio Colao. During Sarin’s tenure the return on Vodafone’s share was 70.1%.
Looks like the Fed’s forecast might put many a spirits down and analysts might be quite apprehensive about its global impact. In its recent announcement the Fed. has put down its expectation of the U.S economy growth. According to ‘Reuters’ Fed. has put the growth rate from 0.3% to 1.2% from the range of 1.3% to 2% (forecasted about three months ago). It might also be expected that Fed. might not lower the ‘rate’ any further due to increasing risk of inflation. In spite of the vigilant measures extended it looks like the inflation might be quite high for the U.S, another alarming factor that the economy could be facing might be increasing unemployment rate. With lower growth rate, increasing inflation and unemployment rate looks like it would be while before all the three factor settles down.
Meanwhile what would be the global impact in such a scenario is yet to be seen. On one hand is the rising price of oil which many expect to touch the $200 mark in such a scenario what could be a corrective policy measures that varios global economy would adopt is to be seen.
My team and self are heading to the WES (Wireless Enterprise Symposium 2008) summit to be held in Orlando, Florida better known for Disney World.
This is a week’s trip to U.S – we would be spending two days in Orlando, two days in Chicago and the last two days in New York. Will keep you updated from wherever possible.
So Ciao and keep watching the blogs for some great snaps and updates!
It looks like Global slow down in growth and the rising inflation is the prime issue now, with the Oil prices shooting up to $123.93. It is upto the Central Banks of respective countries to counter the slowing growth and rising inflation. The Banks stocks are down to 1.2% at present.
With the recovery of the Stock conditions and the credit conditions, the focus is now on rising inflation. Energy, food and commodity prices seem to be surging high which seems to be eating into corporate profits according to an article by ‘Reuters’ and this could pose as a serious problem.
This situation might prompt Central Banks around the world to increase the interest rates to couter react to the increased prices.
This looks like a much awaited weekend, for both Yahoo and Microsoft. All might not be lost between Microsoft and Yahoo, as there seems to be a last minute effort to bring about some sort of consensus before the deal is totally done away with. News has that Microsoft might increase its bid for a few dollars more. The deal is now worth around$42.2 billion. Yahoo seems to be on the gaining side with its share prices rising up with the news. Yahoo supporters seems to believe that Microsoft might have the deal with the prices at $35 or below per share.