Archive for the ‘Finance’ Category
IMF World Economic Outlook Update
Last 7 July, the IMF updated its World Economic Outlook and is now expecting the world economy to grow at around 4.5% in 2010 and 4.25% in 2011. That is, increasing by 0.4 percentage points its growth estimate for 2010 and leaving 2011 intact.
This better short-term outlook for 2010 is product of a rosier picture in emerging economies (especially in Latin America and Developing Asia).
How to Pitch Venture Capitalists: Guy Kawasaki
- Know the sweet spot. VCs have types of companies and industries they tend to invest in, as do partners. If you do not match their investment criteria or fit into their area of expertise, you need to find another VC. No matter how good the idea. Do your homework, just as you would do before a sales call. Find out what they like to invest in and why.
- Reach out and get connected. Your company’s ability to communicate with the outside world is directly related to a VCs willingness to fund you. Get the word out about your personal brand and the company’s efforts and manage the information about you from the start. This means more networking, attending conferences, engaging industry leaders, blogging, tweeting and generally be active in the social media world. Your ability to network and publicize your business is directly related to how well you will be able to sell your product. And remember, VCs view cold-calling as a sign of weakness. Emailing a partner directly with no introduction from a connected contact just screams “desperate.” Navigate to a strong, warm introduction every time.
- Think like a risk manager. Every salesperson will tell you: sales 101 is getting inside the head of your target customer. For a VC, a funding decision revolves around minimizing risk and maximizing profit. Don’t make them uncover the risks. Feature them as part of your pitch and lay out your plan for managing the risks. Provide realistic assumptions—nothing kills a deal faster than when a VC rolls their eyes at the hockey stick charts that promise great profit margin than a monopoly like Microsoft! Project the image of a confident executor, not a dreamer.
- Read the rest of this entry »
The demise of the dollar
In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
Firms Get a Hand With Twitter, Facebook
From the WSJ
Sylvester Chisom began paying a consultant last summer to blog on Twitter, post status updates on Facebook and run marketing campaigns on both sites for his auto-detailing business.
He thinks the service, which costs $450 a month, is worth it. “It’s just better having somebody else dedicated to thinking of stuff to put up,” says Mr. Chisom, co-owner of Showroom Shine Express Detailing LLC in St. Louis.
Some small-business owners, overwhelmed by the time commitment required of marketing their products and services via social media, are hiring consultants to lend a hand. But the price of such support can vary widely based on the extent of work involved, and many entrepreneurs with already meager resources for marketing and advertising may need to think carefully before taking on the extra cost.
The start-up 3 Green Angels, for example, charges clients a $400 fee to organize Twitter parties — real-time discussions on specific topics. Everywhere LLC, another specialty firm in Atlanta, charges clients up to $20,000 to arrange three streaming video press conferences led by popular bloggers.
Oliver Stone returns to Wall Street for a sequel – Jim Cramer will play a part
Last Tuesday afternoon, a black Cadillac Escalade arrived at the Federal Reserve Bank of New York in Lower Manhattan, built in the 1920s to resemble the Renaissance-era palaces of Florence, Italy. From a rear seat stepped a man in a cashmere sweater and dark slacks.
‘This is where the money is,’ he said, borrowing the words of Willie Sutton, the Depression-era bank robber. ‘There is more gold here than anywhere in the world.’
This is familiar terrain for Mr. Stone: his father was a broker, and his 1987 film, ‘Wall Street,’ became emblematic of an era of excess the filmmaker thought was fading, but in fact was only beginning. Now he is here to make a sequel, to capture greed on celluloid all over again, set against the backdrop of the financial collapse that began with the fall of Bear Stearns.
In a meandering walk through the crooked streets of Manhattan’s financial district — it was a week before shooting of the sequel, titled ‘Wall Street 2,’ was scheduled to begin — Mr. Stone said he never expected high finance to serve again as a tableau for his storytelling.
‘I thought it was a bubble that was over,’ Mr. Stone said of the 1980s. ‘I thought those days were going to come to an end. The excess.’
Despite his own years of hard living and a peripatetic existence — he would be heading to Venice in a few days — Mr. Stone looked refreshed and, at 62, surprisingly young. His original film was a morality tale about greed and unvarnished ambition, and Mr. Stone’s own views on the excesses of capitalism were obvious. But the film and its famous lines — ‘Greed is good,’ ‘Money never sleeps’ — have had a cultural endurance that he never expected, and perhaps never desired.
México, la mejor opción para invertir en AL: Santander
De El Economista
El mercado accionario mexicano es la mejor opción para invertir durante el resto del año en América Latina, por encima de Brasil y Chile, de acuerdo con Banco Santander en Estados Unidos.
En un reporte emitido este miércoles en Nueva York, Santander elevó la calificación de las acciones mexicanas, mientras que redujo las de sus antiguos mercados recomendados: Brasil y Chile.
El reporte señaló que una de las razones para elegir a México es que las valuaciones actuales del mercado accionario mexicano darán mayores retornos que las del chileno y el brasileño.
Conspiracy theory: Yellow Submarine iPod touch on 9/9/9
From The Apple Core
Apple will finally announce a partnership with The Beatles and its label, Apple Corps Ltd., at its media event that’s been rumored for September 9, 2009. At least that’s my theory.
Here’s why:
Cramer baking a cake
This Jim Cramer is hilarious. He was baking a cake in the show and splash!
Microsoft Needs To Hire Better, Less Racist Graphic Designers
(Via Gizmodo)
Holy cow. Is that a MacBook in this Microsoft website photo?
(Via Microsoft U.S.)
Seriously though, that is the least of their problems when it comes to the Polish version of this Microsoft photo.
(Via Microsoft Poland)
Where Apple Prints Money
That would be the Apple Store on 5th Avenue in New York City. Newmark Knight Frank Retail estimates it pulls in over $350 million in revenue a year, or about $35,000 per square foot for the 10,000 square foot space.
To put that in perspective, Tiffany & Co. says diamonds has sales of about $18,000 per square foot. In fact, it might be the highest grossing retailer on Fifth Ave. ever, according to an estimate by Prudential Douglas Elliman Real Estate.
$350 million. Kee-rist. Good luck touching that, Microsoft.
(Via Gizmodo)
Cramer sneezes!
Bless you, Cramer.
I have never seen anyone else sneeze on T.V. How do they repress it?
Hedging Bets on Bank of America
From the New York Times
John A. Paulson and Sallie L. Krawcheck are staking a lot on the revival of Bank of America’s fortunes, Breakingviews.com writes. Mr. Paulson, the billionaire hedge fund manager, is now the bank’s fourth-largest shareholder.
Meanwhile, Ms. Krawcheck, Citigroup’s former wealth management and finance chief, has been brought in to run the bank’s asset management and Merrill Lynch brokerage businesses, making her a contender for the top job. She has also snapped up $1 million worth of shares.
These might seem like gambles. After all, Bank of America is hardly out of the woods. Its core operations are likely to continue losing money for the rest of the year. Takeovers that struck both at the height of the bull market and in the depths of the crisis either used up precious capital or revealed poor risk management — or both — and left the bank in need of $45 billion of taxpayer support. And the shenanigans surrounding year-end losses and bonuses at Merrill cost Kenneth D. Lewis the chairman’s role and his reputation.
Microsoft’s Ballmer on the iPhone two years ago
April 30, 2007
Microsoft CEO Steve Ballmer on music, gaming
Q: People get passionate when Apple comes out with something new — the iPhone; of course, the iPod. Is that something that you’d want them to feel about Microsoft?
It’s sort of a funny question. Would I trade 96% of the market for 4% of the market? (Laughter.) I want to have products that appeal to everybody.
Now we’ll get a chance to go through this again in phones and music players. There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.
9 Free Advertising Solutions – Free Advertising, Marketing on a Budget, Marketing Your Business
From Entrepreneur.com
When sales slump due to a slow economy, a business owner’s first inclination is often to cut the marketing budget. After all, one has fixed costs and cash flow can be irregular. But marketing should be the last activity you eliminate or you risk an even faster downward spiral. Advertising your business and attracting new customers should be an ongoing process, and there are many things you can do that cost absolutely nothing. In these times money might be tight but the need for revenue is continuous, here are just a few suggestions.
Become the expert
Submit articles related to your business to the local paper, trade journals and professional organization’s newsletters. Choose a topic that reflects your expertise on the subject and make sure your business is mentioned. You might also find a website that may be interested in letting you host a guest column. Whenever you get published, make copies and send them to all your current and potential customers.
Be a great public speaker
Professional meeting planners are always looking for presenters and workshop leaders for conferences. Research contact names in the Directory of Meeting Planners or start with your local Chamber of Commerce or Rotary Club. If, like most people, you dread the thought of public speaking, join your local Toastmasters [http://www.toastmasters.org/] club; this is also a great way to meet potential customers. When you do get the opportunity to make a presentation, be sure to collect business cards for a drawing to win a book or other prize related to your business.
Rumored Apple event roulette wheel lands on September 9 – Ars Technica
From Ars Technica
Ever since the launch of the original iPod, Apple has scheduled a special press event for music-related products right around the time the young’uns head back to school. The same is expected for this year, and All Things D has taken a gamble on September 9 based on information from an inside source.
On September 9, the company plans to announce music-only items and not talk about the fabled tablet, the source says. It will take place in San Francisco (though the writeup says ‘most likely at Yerba Buena Center for the Arts, where it has occurred in years past,’ but this is not entirely true—2007’s music event was held at Moscone but last year, it was scheduled at Yerba Buena because of a conflict at Moscone). ‘Our sources insist it will not involve any discussion whatsoever of the tablet that Apple is reportedly developing,’ wrote All Things D’s John Paczkowski.
Rumors have been ramping up about the tablet in recent weeks, but most Apple watchers don’t expect it to be released (or even announced, in some cases) until 2010. I, for one, will not be surprised in the least if it turns out that Apple only discusses iPod touches and nanos at this September’s music event. The company has always strictly adhered to iPods for the music event and announced other products at later dates. As usual, we’ll keep you informed if we find out more about this event, but for now, I’m banking on September 9.
(Via Ars Technica)
Paulson Hedge Fund Buys Banks That Lost Value in Credit Crisis
From Bloomberg
John Paulson, the hedge-fund manager whose wagers against the U.S. housing market helped him earn an estimated $2.5 billion last year, bought Bank of America Corp. and Goldman Sachs Group Inc. stock in the second quarter, while adding to stakes in gold companies.
His firm, Paulson & Co., bought 168 million shares of Charlotte, North Carolina-based Bank of America valued at $2.2 billion as of June 30, according to a filing yesterday with the U.S. Securities and Exchange Commission. It was the biggest new purchase in the second quarter for Paulson, 53, and made him the bank’s fourth-largest owner.
‘It’s ironic because he was the one that made the right call shorting subprime,’ said Jerome Dodson, who oversees $2.5 billion at Parnassus Investments in San Francisco. ‘His timing is good but he probably won’t be as successful with this purchase as he was with betting the housing market would collapse.’
Walmart Profit Tops Estimates on Inventory Management
From Bloomberg
Wal-Mart Stores Inc., the world’s largest retailer, reported second-quarter profit that exceeded some analysts’ estimates after managing inventory to reduce costs. Comparable-store sales trailed the company’s forecast.
Net income totaled $3.44 billion, or 88 cents a share, the Bentonville, Arkansas-based company said today in a statement. Analysts projected 86 cents, the average of 22 estimates compiled by Bloomberg.
Walmart will accelerate efforts to cut costs after U.S. stores reduced inventory by almost 6 percent, Chief Executive Officer Mike Duke said today on a recorded call. The chain also attracted more customers, helped by price reductions on its Sam’s Choice Black Angus beef patties, baked beans and flat- panel televisions to lure consumers grappling with shrinking paychecks and the worst unemployment since the Great Depression.
World’s Most Expensive Streets Fall in Value
Times are tough in Monaco.
According to the Wealth Bulletins latest list of the Worlds Expensive Streets, prices on Avenue Princesse Grace (still the priciest street in the world) have plunged by more than a third. One square meter of prime space now costs the equivalent of a mere $11,152 a square foot–down from $17,657 last year.
The overall value of prime residential property on the 10 most expensive streets in the world fell 12% in the past year, the survey found, with European streets faring better than those in the U.S. and in emerging markets. The overall markets in the U.S. and London have fallen 20% or more. Here is the Bulletins list of the Most Expensive Streets. Caveat emptor, it is developed with luxury Realtors.
Apple’s sexiest feature
From Fortune Brainstorm Tech
It’s undeniably interesting to talk about the health of Steve Jobs. And whether Apple plays nice with the competition. Oh, and the multiple conflicts of interest between the boards of Apple (AAPL) and Google (GOOG), even after Eric Schmidt removed himself as an Apple director. (Genentech Chairman Art Levinson remains on both boards, and unless something has changed recently, Apple lead director and Steve Jobs confidante Bill Campbell is still Eric Schmidt’s executive coach and a heavily involved advisor to Google’s senior managers.)
This is all true, and truly worth jabber-jawing about. It also explains why there hasn’t been all that much chit-chat about an astounding if unexciting report released earlier this week by the respected Sanford Bernstein analyst Toni Sacconaghi that details just how freaking profitable Apple is. The once-beaten company’s ability to spew out cash may indeed be its neatest trick of all.
Apple’s tablet will be more than a niche product
From AppleInsider
A new financial analysis predicts that Apple’s yet-to-be-announced tablet will launch in early 2010 and sell about 2 million units in its first year — and at an estimated $600 each, that would be an additional $1.2 billion in revenue.
The report, from market research firm Piper Jaffray, states that potential revenue from such a device has not yet been included in forecast models for Apple on Wall Street. The firm predicts that the product would increase the company’s overall revenue by 3 percent in 2010.
‘While at first glance this may appear to address a niche market, we believe the addressable market is larger than that of the Apple TV, of which Apple sold about 1.2m in its first year,’ the report states.
Piper Jaffray analysts also shared inside information that further suggests that the tablet will launch in early 2010. That reaffirms claims made by AppleInsider’s own sources.