Business news
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Recent market trends have led to sharp increases in volatility which has led the VIX, the ETF that tracks volatility, to shoot ever higher. Both the DowJones and Nasdaq have been spiking upwards or downwards, in conjunction with varying news reports mostly regarding the European bond crisis. As these peaks and troughs become more dense in trend points, a breakout either upwards or downwards is increasingly likely. Overall both the DowJones and Nasdaq have been trending downwards. As such, it is likely that the DowJones and Nasdaq will continue to fall, possibly very quickly.
As concerns continue to arise regarding the viability of the European Union (EU), markets around the world have become increasingly unstable. Economists believe that a recession in Europe is like which might lead to shockwaves throughout the world markets. This recession appears to be stemming from valuations of bonds held on various governments throughout Europe. As fears are arising that bondholders will have to take a haircut on their bonds to protect certain nations, which have been dubbed PIGS (Portugal, Italy, Greece, and Spain), the institutions who own these bonds may have sharp contractions in their business. This may lead to these European banks declaring bankruptcy, which may set off a worldwide recession or depression. Even if this drastic step is not taken, budget cuts by various municipalities may lead to recessionary pressures.
Both the DowJones and Nasdaq, although the represent United States based companies, have companies that have large international components in their business. As such, they are likely to suffer as Europe and China suffer. China sells a significant portion of their goods to Europe, similar to their relationship with the United States. However, currency fluctuations, and possible inflationary pressures, have increasingly led to stock market ralities, as the dollars the stocks are in decline in value, the stocks should surge.
Filed in: Business news
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Many companies today take it upon themselves to institute policies of social responsibility beyond that is require by law. While some of these companies then use these policies as little more than a great advertising campain, others find that the employees make the company even better than they were before.
Corporate structure is shaped by social responsibility in several ways. First, it makes sure that the company creates and follows a business model that is not only legal, but ethical as well. This means that the company not only profits from it’s sales, but that it also treats employees fairly, pays fair wages, and has a positive impact on the customers, investors, and the environment.
While the standards of social responsibility vary, there is no doubt that one company stands out above all others as using social responsibility solely as a marketing tool. British Petroleum (BP) Gasoline had a corporate restructuring following the oil spill in the gulf of Mexico and created a huge advertising campaign based around the fact that even though it was their oil that spilled, they were doing everything they could to restore the area to it’s pre-spill conditions. Many people saw this as what it was, a ploy to use a horrific accident to their advantage.
On the other side of the coin though, there are a number of companies that are doing great deeds in the name of social responsibility. Starbucks Coffee has shown a consistent commitment to it’s workers, both in the Starbucks stores worldwide and in the coffee fields. They pay fair wages and make sure that their field workers are paid a fare wage for their coffee beans. They are a sustainable company and use recycled and recyclable materials whenever possible, and subtly advertise their commitment to their customers on their website and printed materials. Starbucks is a great example of a company that uses social responsibility for it’s intended use and one can only hope that other large corporations follow suit.
Filed in: Business news, Corporate Social Responsibility
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According to a report from the Kaiser Family Foundation, the annual cost of premiums for family health insurance averaged over $15,000 in 2011. That was a 9 percent increase over the previous year. Salaries increased at a much lower rate, which means that the health-insurance premiums were taking a bigger bite out of workers’ income.
Employers paid most of the premium costs, paying an average of $10,944 for the year for family health insurance. Workers, though, still had to pay an average of $4,129 for the yearly premium costs.
The annual cost of health insurance premiums for workers who got coverage only for themselves, as individuals, was $5,429 in 2011. That was an increase of 8 percent over the cost in the previous year. The rate of increase for workers getting individual health insurance plans was only slightly less than the rate of increase for workers who had family plans. Of the $5,429 annual cost, workers paid an average of $921 out of their own pockets.
Salaries increased by an average of only 2.1 percent in 2011, and inflation was 3.2 percent. The increase in health-insurance premiums was significantly higher.
The study also found that 60 percent of companies offered health insurance to their employees, a rate which was essentially unchanged from previous years.
The Kaiser study was based on surveys conduced in January and May of 2011. It is the 13th annual study that the Kaiser Family Foundation has conducted. Researchers at the University of Chicago also worked on the study.
This article has been written by the German Finance site Financial Tombstones. They are producers of tombstones for financial deals and covering the financial market.
Filed in: Business news, Health
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Internet behemoths and technology bellweathers have much to be worried about these days when it comes to the development of tablet hardware. Amazon has entered into the fray of recent tablet wars with its Kindle Fire. This multi-touch computer with built-in wi-fi was introduced by Amazon’s CEO Jeff Bezos on Wednesday, September 28, 2011, in New York. The handheld device is set at an introductory price of $199, just half of the price of Apple’s iPad. While the device does not offer 3G network connections, the mobile unit is bound to be a hit with entertainment affecionados due to its access to Amazon’s extensive online library of books, music and movies. The unit utilizes Google’s Android operating system and includes access to the Android mobile application marketplace for applications like Angry Birds and Fruit Samurai. At a news conference held in New York, Brezos unveiled the Kindle Fire as the latest entry in the mobile tablet computer war that has competitors amid the likes of HTC, Samsung and Apple. As the world’s largest online retailer, Amazon enters into the market of mobile devices with a strong offering that shall surely shake up the entire mobile marketplace. The Kindle Fire provides a seven-inch display screen that makes the mobile device more than just an upgraded e-reader. Amazon will offer a free 30-day trial of its Amazon Prime, valued at $79 for membership, to Kindle Fire users. In addition, Amazon also offers Amazon Silk as a cloud-based application for enhanced, high-speed content transmission. On the news of the introduction of the Kindle Fire, Amazon’s stock on the Nasdaq stock market price rose by $5.50 to $229.71. Amazon’s leading competitors Apple and Barnes & Noble both suffered stock price losses, indicating that the tablet computer war is truly on and in full swing.
Filed in: Business news, Tablets
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Is the sky really falling? Chicken Little suggests you breakout the Tarot cards, the new pair of Vegas dice the hotel gave you as a gift, or cross your fingers an hour each day. The business and economy is not going to prosper. It will most likely move forward like a slow-moving sloth. On the other hand you would never know that to be the case if you lived in my coastal-college area of central California. The California unemployment may be sky high but small businesses here are growing faster than moss on a Mississippi tree stump.
Usually when any reporter wishes to dip his or her finger into the “business and economy uncertainty pool” they will set up appointments with the CEO’s of large companies and the owners of small businesses to discuss the current situation. However, there is a place called the Confidence Index that juggles all the questions and answers and plans of CEO’s as to whether the business and economy is in the rear-view mirror or not. The final tally rated tepid on the “hot” scale.
It appears the dagger-through-the-heart for expansion and hiring plans can be summed up in three words. Regulations, caution and healthcare costs. When 39 percent of owners and bosses state that the bubble hasn’t moved in a long time and the prospects for 2012 are just as bleak, 99 percent place the blame on the lack of leadership in Washington.
Other findings by a recent Confidence Index survey was that few if any new investments will be appearing on the horizon and slow hiring in many businesses. The consensus appears to be that employers will hang tough with current employees, much lower profits than last year, and new investments will fall back to 2010 levels, which isn’t worth writing home about.
Filed in: Business news, environment
