Archive by Author | derbyng626

Verizon Talks Tough to Vodafone

It’s all fun and games until someone decides to take a stab at someone. In today’s news, a long time joint-venture between Verizon and Vodafone could be getting ugly in no time. Verizon’s chief executive, Lowell McAdam, made an announcement today saying that Verizon might not pay to its two owners this year.

As of right now, Vodafone still owns 45% of Verizon Wireless, but at the end of the day, Verizon Wireless still call the shots and they make the finals decision to when payouts are made. I believe this move has come as a result of Vodafone asking for a much higher price for their acquisition than Verizon had hoped for. Verizon might have planned this move to ultimately give Vodafone a stalemate.

This type of news reminds us all that no matter what business partnerships companies are involved in, there are no friends. At the end of the day, businesses will look out for their own benefit and no relationship or long term partnerships will change that. Business ethics exists but only to a certain extent.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324582004578459272139837606.html?mod=WSJ_business_LeadStoryRotator 

Intel Names Krzanich as New CEO

Paul Otellini, who is now the former CEO of Intel, had decided to step as CEO. He had been CEO of the chip manufacturing company for eight years and Brian Krzanich is set to take over his position. Krazanich who was the chief operating officer since January of last year and had been working for Intel for about 30 years. He will take over the position during their company’s shareholders meeting. 

This move came after the company reported drops in both net income and in revenue for their first quarter of 2013. The company will also name a new President in effect for May 16th. Their new president, Renee James, who had also taken leadership positions in Intel. Seeing these promotions of Intel, it’s easy to see that most companies usually promote from within the company and in order to move up in the career ladder, it is important for us to start early in taking leadership positions and be as involved as we could.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324766604578458650267324178.html?mod=WSJ_business_whatsNews

Pentagon Expected to Embrace Apple, Samsung Devices

Smartphone giants, Apple Inc. and Samsung are having their products utilized in our country’s department of defense. The pentagon are integrating new smartphones for their employees. In the coming two weeks, the United States government agencies  will be adding Samsung’s famous galaxy smartphones, along with Apple’s iconic iPhones and iPads. Both Apple Inc. and Samsung have been fighting to enter an industry has been dominantly owned by Research in Motion.

This move could be super beneficial for both Apple and Samsung, since more people will now be using their products and the smartphones will be used in more occasions now. Since the technology will be used in all areas in the U.S. government, it could a way of advertising for Apple and Samsung.

The move for Department of Defense could affect Blackberry and Research in Motion big time, as their sales have dropped significantly the past few years and now Apple and Samsung are taking an area that Research in Motion had the most success in. It will be interesting to see how Blackberry will do in the next coming weeks as their competitors are entering the market that they have been in.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324582004578456940454210134.html?mod=WSJ_business_whatsNews

Apple to Sell $17 Billion in Bonds

Apple Inc. set a record amount for a U.S. investment-grade corporate offering on Tuesday. Apple Inc. sold $17 billion of bonds, people familiar with the offering said this offering generated more than $50 billion in new orders. The largest investment-grade corporate offering before Apple Inc.’s move today was a $16.5 billion offering back in February of 2009. Apple’s stockpile of cash is now extremely large and most of their money are overseas. 

From the many investors that Apple has, Goldman Sachs Group Inc. and Deutsche Bank AG are leading the sales of the offering. One of the top reasons that has influenced Apple to make this move is that the move will now put them in debt and by being in debt, Apple Inc. could escape some of their tax duties. 

This may be a smart move for Apple and hopefully the sales of their products will be a huge success in the next coming few months. I can’t be picture Apple doing poorly after their success in the past few years.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324482504578454691936382274.html?mod=WSJ_hps_LEFTTopStories

S&P 500 Notches a Record

It has been a few years since our 2008 recession, and signs that the market has been showing has been positive for our investors. Today, S&P 500, closed at a record high. S&P rose 11.37 points to their record 1593.61. NASDAQ and the Dow Jones had already been doing well in recent months. As for the S&P 500, tech companies had been performing extremely well. Blue-Chip companies such as Hewlett-Packard, Microsoft and IBM rose in a high percentage. Their success could be a result of their earnings meeting expectations if not exceeding them.

S&P 500 is usually as a standard measurement on how the market has been performing, since the companies on their index had been performing decently. If they continue to do so, the outlook of our economy could be extremely positive for our future. As an undergraduate like myself and my peers, hopefully this market would continue to grow and recover.

I hope not only do tech companies perform better but all of the companies. This will boost our economy and hopefully make it easier for me to get a job to when I graduate.

-Derby Ng

http://online.wsj.com/article/SB10001424127887323528404578452422289319726.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Key Executive Said to Be Leaving JPMorgan Chase

First Data Corporation, a payment processing firm is set to have a new chief executive . Frank J. Bisignano said in a statement, that he will be leaving JPMorgan Chase. The now former co-chief operating officer took office back in July of last year and had faced many challenges since. The nation’s largest trading losses at about $6.2 billion happened to JPMorgan Chase and his departure is set to be voluntary. I would not doubt it if this statistic played a role in his decision of leaving JPMorgan.

The bank is now facing many investigations regarding misleading information given to investors and could face potential legal trouble. Bisignano himself has already testified before court for his mistakes at the bank and his regrets might ultimately be the decision to why he has chosen to leave JPMorgan.

These negative publicity could have many negative effects in JPMorgan Chase and their shareholders could take a hit in the near future. As for now, Matthew Zames will take over as the Chief operating officer and he will hopefully pick up the slack that has been left behind.

-Derby Ng

http://dealbook.nytimes.com/2013/04/28/key-executive-said-to-be-leaving-jpmorgan-chase/

 

Verizon Price Gap: $30 Billion

One of the largest global joint ventures might come to an end in the near future, as the dynamic duo in telecommunications are planning on a buy out. Verizon Wireless and Vodafone group, the two companies have been in a joint venture for a long time but their dispute comes in the issue of the buy out. 

There has not been an official made by either company but there has already been many disagreements in terms of pricing, Verizon has planned on a bid worth over $100 million dollars but Vodafone believes that it is worth around $130 million. 

If Verizon is willing to executive this deal with the approval of Vodafone, it would be one of the largest mergers in history. Vodafone is a giant cellular company outside of the United States and with these assets, it could make Verizon an even bigger company. 

-Derby Ng

http://online.wsj.com/article/SB10001424127887323789704578445180890685490.html?mod=WSJ_business_whatsNews

Businesses Take a Cautious Approach to Disclosures Using Social Media

In the beginning of this month, Securities and Exchange commission released guidelines and rules regarding the disclosure of company information on social media giants such as Facebook and Twitter.

Zynga being on the first companies to take a stab at this new method of releasing their information through their corporate blog and through Facebook and Twitter. This idea is relatively new and it is still risky for companies to put their corporate information on Facebook or Twitter. There are still a lot of uncertainties about this approach but as technology grows, more companies will able more willing to try out this method.

The new rules and guidelines set by the SEC could be a changing factor for investors in the future, for new start ups and younger corporations, these laws could make easier for the newer corporations to reach out to investors and make it less skeptical for these start ups to do  so.

-Derby Ng

http://dealbook.nytimes.com/2013/04/25/businesses-take-a-wary-approach-to-disclosures-using-social-media/

Fed Debate Moves From Tapering to Extending Bond Buying

Recently, the talk of a reduction in government stimulus has been floating around given the economy’s improving condition. However, since the F.O.M.C. meeting last month, many more, including those who directly vote on bond policy, have voiced their opinion for continued market intervention. Now, it can be said with a fair amount of confidence that the Fed will not be reducing bond buybacks by the year’s end, rather they will continue to maintain their policy for a few more years to ensure that the withdrawal of economic assistance does not have too many negative side effects.

Experts expect  a “full throttle” year, with the Fed breaking records in terms of the amount of assets it has. This is due to the fact that while the economy is improving, it has still failed to meet the goals designated by the Fed. For example, consumer prices rose 1.3 percent compared to last year, but that is still short of the 2 percent desired by the Fed. Also, the ever important unemployment number is still not optimal, and the Fed remains on guard for a potential spring slowdown of hiring. As for positive news, some are saying that the housing market is finally starting to become a positive lift for the economy, rather than a drag.

Source:
http://www.bloomberg.com/news/2013-04-25/fed-debate-moves-from-tapering-to-extending-bond-buying.html

Apple Snaps Growth Streak

For the first time in a decade, Apple Inc. posted a decline in profit. The feeling of fear in investors are slowly rising as Apple’s stock, one of the most widely held stock in the United States, dropped nearly 40% since their historical high in September of the year 2012. With the recent bad signs of Apple’s shares, Apple has planned to return cash to their shareholders with stock buybacks and more quarterly dividends through the next few years.

Meanwhile, Apple’s executives are still extremely confident in Apple’s performance in the near future and their C.E.O. has mentioned that Apple’s new products are going to amazing. Maybe this is a good time to stock up some Apple’s stock, or it could the worst decision of your life. As the smartphones slowly becoming commodities, it will be interesting to see how Apple will differentiate themselves again.

Apple’s main competitor, Google, has a stock price that is nearly doubling Apple’s stock. Maybe it’s time for Apple to look at a new direction in their products if their latest inventions will disappoint the company and their shareholders this coming Fall. Nearly two-third of Apple’s revenue came from their international sales, this could be a direction that Apple aims for in the future and try to compete in a larger market share globally.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324874204578441153601139278.html?mod=WSJ_business_LeadStoryCollection

Apple Has an Identity Crisis

It feels like Apple, Inc. makes the news every day ever for the past decade and for the most part they have been involved with positive news. For much of recent weeks, the news for Apple hasn’t been anything to write home about. Their expected first quarter earnings is expected to show decline for the first time for a decade. Ever since their stock peaked late last year, Apple hasn’t seen much of success and now the company doesn’t even know what company they are trying to be.

Rather they are a hardware or software company, Apple has to distinct themselves again from their competitors. Their best sellers, iPhones and iPads could die out as fast as they came, as more of their competitors are trying to make similar products and eventually iPads will be seen as a commodity.

It’s interesting to see when Apple will release their new phone and if that will help out their stocks and shareholders in the near future. Apple has been around for years and I am sure they could find a way to once again distinct themselves from the rest of the pack.

-Derby Ng

http://online.wsj.com/article/SB10001424127887323551004578439162453339122.html?mod=WSJ_hpp_LEFTTopStories

Budget Cuts Threaten to Worsen Air Delays

After the sequester of the budget cuts for air-traffic controllers passed by the Federal government went in effect for the first day, plenty of flight delays has already happened. As Monday comes, only more trouble and traffic is expected to happen as heavier traffic is expected during weekdays. 

Two of the most congested airports in New York City has already gave out delay warnings for J.F.K. and La Guardia, as busy airports take on more delays and heavier traffic, the Airlines will be the ones taking the most damage. 

I am curious to see how these budget cuts will affect Airline’s stocks and shares in the coming week. As so many businesses require their employees to fly to different cities throughout the week, will the delays have a huge effect on the economy or will our newest technologies help us get through geographical differences. These budget cuts could mean more savings for the government but it could also mean Airlines will take a cut in their revenue as their flights get delayed. We will see how they do in the next coming weeks and maybe changes will be made.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324874204578436982662471390.html?mod=WSJ_business_whatsNews

Hong Kong Home Owners Start to Cut Prices

Hong Kong, one of the most famous cities in the world, infamous for shopping and site seeing for many tourists, has one of the highest and most expensive real-state prices in the world. For the past few years, Hong Kong has one of the highest selling housing market internationally, but for the past few months the rate of the houses selling as significantly dropped. This low activity on the housing market marked the lowest since the SARS pandemic back in 2003, exactly a decade ago. As the prices went higher and higher in the recent years, results in Hong Kong being one of the least affordable places in the world. As the prices go up, buyers started to hold on to their money which led to no one buying houses at all.

As a Hong Kong resident myself, this might be actually good news for my family and I, if the houses become more affordable I would have another reason to move back to Hong Kong and eventually stay there. The newly elected Chief executive in Hong Kong has created more programs to try to cool down the prices and make it more affordable for everyone. If people do not have to worry about saving all their salary just for housing, they might be more willing to spend more on the economy which will benefit the whole society at the end.

-Derby Ng

http://blogs.wsj.com/chinarealtime/2013/04/16/hong-kong-home-owners-start-to-cut-prices/

Beer Merger Advances

After a proposed arrangement submitted Friday, the federal court has approved Anheuser-Busch Inbev to purchase the 50% of Grupo Modelo that it doesn’t already own. Anheuser-Busch the brewer of two of the top selling beers in the United States, Bud Light and Budweiser would close their deal in June. The merger is expected to be worth $20.1 billion. This is an important acquisition for Anheuser-Busch InBev as Mexico sales of beer expands much quicker than the United States. Being one of the largest beer brewers already, Anheuser-Busch will now own Corona as well making their market share even larger than it already was. 

Anheuser-Busch InBev already has 12 breweries in the United States and with the purchase of one of Mexico’s largest beer brewers, it might be a good sign that the United States could soon produce more beers. Without having to rely on foreign produced beers, breweries in the United States could open more breweries and eventually producing more jobs. This merger could ultimately be very beneficial to Anheuser-Busch’s sales. 

-Derby Ng

http://online.wsj.com/article/SB10001424127887324763404578432702248392218.html?mod=WSJ_business_whatsNews