Then write about it. Don't use a story that has been used by someone else.
- 100 words minimum, 200 words maximum.
- Be clear, concise, concrete, and complete.
- Put the URL (web link) of the news story on the post.
Thursday, January 24, 2013
Week 2 Spring
Go to http://news.google.com and click on "Business" on the left side of the screen. Click on something that seems related to Supply or Demand. That is, look for an article that a) specifically deals with some product or service b) that has experienced a change in producers' ability to produce or buyers' willingness to purchase. Make a note if there has been a change in the price.
Then write about it. Don't use a story that has been used by someone else.
Then write about it. Don't use a story that has been used by someone else.
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http://www.telegraph.co.uk/technology/apple/9822856/Apple-We-cant-keep-up-with-demand.html
ReplyDeleteMy article discusses how Apple is having trouble keeping up with the increasing demand for it's products. Apple recently announced record profits, selling a record 47.8 million IPhones in September alone, with older models of Apple's products are rapidly selling as well. The total revenue from this quarter by Apple was $54.5bn. This was 18pc higher than in 2011. With the arrival of the new Ipad mini, and talk of launching a TV product - sales shouldn't go down too much either. Tim Cook, chief executive of Apple, says the supplies was definitely not enough to keep up with the demand.
http://www.foxbusiness.com/news/2013/01/27/canadian-car-parts-suppliers-set-for-high-gear/
ReplyDeleteThis article focuses on positive economic forecast for the Canadian auto parts sector. The US is Canada's most important market, and in 2012, sales to the US rose 13.5 percent to 14.5 million vehicles. 2013 sales are projected to reach 15.3 million vehicles. What is the reason for this increase? Polk, a research firm, attributes it to low interest rates, a healthier housing sector, and a wave of impressive, new vehicles. "Consumers are eager to trade in their worn-out vehicles after delaying their purchases during tough times," says DesRosiers, an industry consultant. For the first time in years, many citizens are willing to purchase new automobiles because they feel financially secure. Another incentive for the US to purchase Canadian auto parts is the fact that Canadian supplier stocks are cheaper than many other sellers.
http://online.wsj.com/article/APf8745d6a10a64599b015c1ea0caabaa3.html
ReplyDeleteThis article talks about the effects of the recently passed Affordable Care Act, focusing on New York. This is an odd think because there has been a huge increase in demand for health care, not because people want it, but because it is required to be given. New York has estimated that roughly 1.1 million people will be joining the New York Health Benefit Exchange and another 500,000 joining Medicaid. That is 1.6 million new customers in a state with only 19 million residents. This is a huge increase in demand. The question that now remains is whose is going to supply it. Huge required demand means a huge required supply. The federal government supposedly is going to foot a majority of the bill, but everything is still a bit uncertain. One thing is for certain though, there has been a huge shock in the realm of health care and its effects are going to shake the market for quite a while still.
Household spending is going up due to consumer confidence. Companies are ordering more goods, and prices of houses are on the rise. This has caused businesses to invest more and boost the economy. This is a shock to consumption, which is an aggregate demand shock, and the curve is moving to the right. With consumer confidence on the rise output will go up, but inflation might stay the same if not drop. Due to the spending cuts and tax increases which are going to take place if Congress does not make a budget deal by the end of this year, known as the fiscal cliff.
ReplyDeletehttp://www.washingtonpost.com/business/us-consumer-confidence-business-spending-and-home-prices-up-fiscal-cliff-threatens-gains
http://www.bloomberg.com/news/2013-01-28/orders-for-durable-goods-in-u-s-rose-4-6-ex-transport-up-1-3-.html
ReplyDeleteIn this article I read that the durable goods from the US rose in December which indicates manufacturing will keep growing in 2013. Some Americans manufactures from General Electric Co. (GE) to DuPont Co. (DD) are the ones that will help with the global growth. There is also an increasing demand for communications gear and machinery also points to gains in U.S. business spending this show how the companies are looking for ways to trim the budget deficit. The GDP has increased by 0.3% after raising 2.2% the previous month. The report on Jan 30 will probably show a growth of 1.1% annual pace in the final quarter of 2012, helped by growth in consumer spending, corporate investment and housing(according to the Bloomberg).
The recent problems of Boeing Company’s new 787 Dreamliner jet may be straining relationships between Boeing and its customers and suppliers in Japan. Two of the largest Japanese airline companies, All Nippon Airways Co. and Japanese Airlines Co. have had to cancel hundreds of flights as the planes are examined. Yet the airlines are not the only Japanese companies to be affected. According to Boeing, more than a third of the parts of a 787 are built by Japanese manufacturers, and “roughly 43% of Japanese aerospace employment is linked to Boeing projects.” Thus far, however, neither of the two Japanese companies who manufacture batteries and circuit boards for the 787 have been found at fault. ANA and Japanese Airlines are sticking with Boeing as there plane of choice, but are being advised to “reassess the risks of relying on one plane supplier.” ANA’s vice president Shinzo Shimizu remains confident that his company will come out alive, but other companies are likely to defect.
ReplyDeletehttp://online.wsj.com/article/SB10001424127887323644904578270101206587038.html?mod=googlenews_wsj
The article I read was about how the price of lumber is expected to rise this year. Lumber is an agricultural commodity. The prices for lumber were already pretty high in 2012, but they are expected to rise even farther. With the recovery of the real estate market lumber has become more and more popular. Lumber production is at an all-time low since the 1980’s. The competitive prices of China’s lumber market are not helping the forecast for lumber. The real estate market is now slightly dropping because of the high price of lumber. Unfortunately, the lumber prices do not look like they will experience a decrease until the end of 2014. What we have here is a classic high demand low supply scenario.
ReplyDeletehttp://blogs.marketwatch.com/thetell/2013/01/28/lumber-poised-to-surge-with-housing-china-demand-capital-economics/
http://www.bbc.co.uk/news/business-21226611
ReplyDeleteIn this week’s article I read about Toyota making it to the biggest car maker in the world for 2012. In 2012 they sold 9.75 million cars. They suffered in the past two years due to natural disasters. Despite that they came back strong. Of course it did help that the Yen fell against the dollar since Toyota relies heavily on car sales overseas. When this did happen the supply of Toyota cars went up but the demand for them went down; until the Yen went down. Then the supply went down and demand went up, making Toyota the biggest brand of the year 2012.
http://www.nytimes.com/2013/01/29/business/generous-executive-pay-at-bailed-out-companies-treasury-watchdog-says.html?_r=0
ReplyDeleteThe article I chose to write about discussed the salaries of executives. Not just any executives though, this article focused on executives in certain companies who had recently received large sums of bailout money from the United States government; particularly Ally Interest, General Motors, and A.I.G. A recent study conducted by a special inspector from the Troubled Asset Relief Program, a program that was started back in the final days of the Bush admiration. The study discovered that executives at firms and corporations who are only still in existence because of stimulus money are very well of financially. The study found that that 68 out of 69 executives at Ally Financial, the American International Group and General Motors received annual compensation of $1 million or more. It should be noted that compensation money is in addition to their yearly salary. Naturally, the Treasury approving of handing millions of dollars in compensation money to companies that have already received bailout money
http://www.independent.co.uk/news/business/news/hotels-face-hard-2013-as-supply-outstrips-demand-8449991.html
ReplyDeleteThe article I read explains the "Olympic-sized hotel hangover" in London. There where 5,000 new rooms in the capital, including the Shangri La's 202-room hotel, which spread over 19 floors of the Shard skyscrape. Now these rooms are unfilled and dorment. PricewaterhouseCoopers said "the average price of a London hotel room would fall 2.7 per cent this year to £139.07." The hotel revenues per available room will fall 6.8 per cent this year according to the forecasts. This example shows that the pressing demand for hotel rooms during the Olympics; however, it also shows the major decrease in demand for rooms months after the Olympics.
http://www.reuters.com/article/2013/01/29/us-yahoo-results-idUSBRE90R12M20130129
ReplyDeleteYahoo's shares were up 4.5% after a recent revamping of the website in order to increase the time spent on their several websites. This is testament to how modernizing and making a website more "interesting" can increase demand. If customers feel a need to spend time on Yahoo's websites, Yahoo’s consumer numbers will go up and their advertisements will cost more money, causing the stock prices to go up. Although this seems backwards compared to the demand goes up, cost goes down system that we learned about in class, the amount of stocks is limited, so they become a hot commodity—rare, but with high demand.
http://www.reuters.com/article/2013/01/29/us-yahoo-results-idUSBRE90R12M20130129
ReplyDeleteChief Executive of Yahoo Marissa Mayer says that Yahoo will begin a slow revival of the company. She began in July of 2012 and has mapped out several plans for the company as it were. The company will overhaul dozens of online sources to increase amount of time users spend on the website. Another tactic the company will use to increase business is more advertising. Mayer says though it is bound to heal, the process will not be immediate. The advertisement takes up a large sum of money including forty percent of its revenue. But during the fourth quarter of last year, the revenue increased four percent which raises total annual revenue to 1.22 billion. Improvement is being shown. It will still take time though to revive itself.
I would like to add that when I checked the previous posts, it did not show Elaina's before I started mine. Though she technically did post first, I repeat I did not see it up then.
Delete