Good news for an American economy that needs something positive. According to the U.S. Labor Department, the American economy had the biggest job creation that it’s had in five months during October. Economists were cautiously optimistic with this news. As Carl Riccadonna, an economist at Deutsche Bank said, “This is not a gangbusters report, but it is very important. It shows us that the momentum in employment is building.”
In a White House statement, President Barack Obama said that the jobs report is “encouraging news” and he encouraged both Democrats and Republicans to propose more ways to boost the economy.
Various executive shuffles have been occurring in the corporate world in a variety of industries including cloud computing and waste disposal. These multinational firms are announcing key changes in their corporate staffing structure.
One example is the movement at Republic Services Inc., with its recent announcement of current President and COO Don Slager to become CEO following James O’Connor’s retirement at the beginning of next year. Prior to his role at the waste management firm, Slager was COO and Vice President of Allied Waste Industries.
In the world of cloud computing, EMC announced last month a new Chief Strategy Officer – Mark Lewis, along with a new President of its Information Intelligence Group – Rick Devenuti. Both new appointees will report to President and CEO of EMC Information Infrastructure Products, Pat Gelsinger.
In addition, Don Slager was appointed unanimously by the board of directors, following a “comprehensive succession planning process,” it conducted. He was also appointed a member of its Board of Directors.
For investors and asset management firms in Hong Kong, the activities of the country’s Securities and Futures Commission (SFC) is important. Thus the recent announcement by the SFC on June 25, 2010 should be of note to individuals like He-Xin, Seth Fischer and the Scott Fitzgerald Group. It will be applying the Codes on Takeovers and Mergers and Share Repurchases (Codes) to SFC-authorised real estate investment trusts (REITs). Already, most of the proposals from the beginning of the year have been adopted. According to CEO at SFC, Martin Wheatley, this marks a huge step in determining a regulatory framework to protect investors’ interests more. It also facilitates the further development of Hong Kong’s REIT market.
Learn more about Google’s economic impact and its future goals. Claire Johnson, the Vice President for Global Online Sales for Google, speaks with Economist Hal Varian about Google’s economic impact in 2009.
No economy exists in a bubble, and America is certainly not an exception to that rule. The widening fiscal issues in Europe are threatening to have an impact on the economic recovery in America. As Ruth Stroppiana, and economist in London, said about the situation in Europe, “It’ll take years of savage spending cuts, wage cuts and welfare-pension reform to eventually grow out of the debt situation.”
American businesses, which count on Europe as a major market, will certainly feel this downturn. During January and February of 2010, U.S. companies exported $36.5 billion of products to the EU nations. Should the economy continue on its downward spiral there, it will certainly have an impact on exports and on the world economy. Read more about these issues and their impact on the American economy.
In this video, Wall Street bankers who were testifying before Congress explained how the recent financial collapse was the perfect storm. Hear Dylan Ratigan and Eliott Spitzer, among others, discuss the recent financial crisis and what should be done about it.
Castle Harlan – together with Champ Private Equity (its Australian affiliate) – sold United Malt Holdings for $655 million. This transaction accords Castle Harlan with “a nice return on its investment.” GrainCorp – the fourth largest malt producer in the world – was the buyer.
A total of $90.54 million in equity was invested by Castle Harlan and Champ Private Equity in the company when it made the purchase a few years earlier from Tiger Brands and Congara Foods. Castle Harlan paid up approximately 55 percent of the equity; Champ made up the difference. Together, this investment makes the total dollar return (to both firms) 4.5 times the equity that they invested. There is an internal rate of return of around 80 percent.
When a major company, such as General Electric Co., warns of economic hardships, it’s certainly time for the rest of the American economy to listen. In a discouraging report on Friday, GE posted a 46% drop in their fourth-quarter earnings and warned that they, and many other companies, may be in for a difficult year.
As GE’s Chief Executive Jeff Immelt told analysts on an investor conference all, “The environment in total is very tough.” The quarterly revenues slipped 5% to $46.2 billion.
While the U.S. economy is on the brink of a recession, the economy did expand at a .6% annual pace during the first quarter. Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina, said that, “If you were to take out the swing in inventories, these numbers would be negative.” In an interview with Bloomberg Television, he continued by saying,“We think we’re in recession, but I don’t know that the GDP numbers are going to turn negative at all in 2008.”
The largest part of the economy, household spending, grew during the last quarter at the slowest rate that it has since 2001, during the time when the U.S. was in a recession.