Japan - Next To Fall?

Kan, the sixth prime minister in the last 4 years, had promised that the government together with the Japan’s national bank, will work together to prevent such crisis. Kan said that the government is aiming to focus on developing an extensive but stable financial policy . He also added that the government will consider tax raising, a step which according to him, previous governments were afraid of performing.

Ailon.

The CEO Game.

Carson River Community Bank from Nevada held 51.5 million dollars in assets and 50 million dollars in deposits, while Rainier Pacific Bank from Washington held 717.8 million dollars in assets and 446.2 million dollars in deposits. The closing of River bank will cost to the Deposit Insurance Fund 7.9 million dollar, while closing Rainier bank will cost 95.2 million dollar to the fund.

Rainier Pacific Bank.

According to estimations  by fund officials, closing bank rate is expected to overcome in the coming months. The “problematic” banks list of the insurance fund in the fourth quarter climbed to 702 from 552 in the previous quarter, although the industry recorded a small profit.

The banks earned 914 million dollars in the fourth quarter, compared to the loss of 37.8 billion dollars during the same period last year, which is considered the climax of the crisis. Still, nearly one in three banks has reported a loss last quarter.

During the year of 2009- 140 banks were closed, the highest number since 1992. These closers have cost the Deposit Insurance Fund more than 30 billion dollars. In comparison, during 2008- 25 banks were closed, while during 2007 only 3 banks were closed. The Deposit Insurance Fund estimates that the cost of closing the banks will climb to 100 billion dollars during the next four years.

Lucy.

The CEO Game.

Eric Schmidt.

• Congress should help start-ups. He claims that smaller businesses should be able to compete with their larger rivals: “They don’t need favors, just a level playing field. Congress should ensure that every bill it passes promotes competition over protecting the interests of incumbents”.
• We need to realize that not everything we do will succeed. “If we want to be a leader in new industries such as green energy, we have to accept that some of our investments won’t pan out.” Schmidt says there are no 100 percent successful innovative programs and society must become tolerant to failure on the way.
• Extend R&D taxes. Schmidt wants more emphasis on our knowledge base: “The decision by Congress to double science funding last year was a big step in the right direction. Now we need to extend the R&D tax credit so businesses can confidently invest in their future.”
• More government support for broadband is critical. “Government-funded research should be made public through “a Wikipedia of ideas,” so entrepreneurs can harness ideas commercially.”
• Let me hire foreigners. Eric requests to hang on to talented people: “The best and brightest from around the world come to study at U.S. universities. After graduation, they are forced to leave because they can’t get visas. It’s ridiculous.

In conclusion in his letter the searching giant’s CEO lays out what he thinks should be done in order to fight the high unemployment rate, the lack of innovation which is also known as the “innovation deficit” and more. He believes we have everything we need in order to climb out of this downhill, and that information and innovation are the keys to success.
Omer  Shachnai

The CEO Game.

Fancy buying a circus?

Times also reports the sell is intended to raise money which will help deal with the massive debts that “DubaiWorld”, the investment capital of the Persian Gulf residing emirate, has accumulated. The debts sum up to 22$ billion, and experts predict that the DubaiWorld’s financial advisors will try and sell each property seperately instead of trying to locate a single purchaser for the entire portfolio. “Istithmar World” which is a private investment arm of DubaiWorld holds most of the properties which will be put up for grab.

Just like DubaiWorld, Istithmar World was founded in order to make hefty profits in a time of prosperity in the world’s capital markets, which ended with the beginning of the sub-prime crisis and the credit absence which followed. Amongst the rest Istithmar purchased Barney’s, New York’s W and Oriental Mandarin Hotels (which was sold 283$ million short lately) and as aforementioned prime real estate in the heart of London. By the way, 2.2% ownership of the Standard Chartered Bank is worth a nice round billion dollar.

Istithmar funded all these by investing some 18$ billion between 2003 and 2007. “Only” 3.8$ of this sum was funded by Istithmar own money, as for the rest of it- loans did the trick. In that shopping spree, Istithmar acquired its crown jewel the QE2 luxury boat- which is one of the biggest of its kind. The boat was bought by the foundation in June 2007 for 100$ million, in order to make it a floating luxury hotel near the coast of Dubai.

The plan never succeeded and now the boat itself is offered for purchase. All the sales will be conducted by the major accounting firm Deloitte and Touche, which is in charge of DubaiWorld’s entire debt “rendition” operation. One last thing, in case you do decide to buy the circus or the boat if you wish, you must get a permission first for DubaiWorld’s biggest creditors: HSBC, Lloyds and the Royal Bank of Scotland. “Bona fortuna” and enjoy your shopping.
 

Omer Shachnai

The CEO Game.

The price advertisers paid for the 30 seconds advertisement during the Super Bowl game, which will be held this Sunday and will be broadcast by CBS, is expected to range between 2.5 to 2.8 million dollars – which is less than the 3 million dollars price it cost in the last Super Bowl. Last year NBC had made 224 million dollars from broadcasting the Super Bowl. CBS had already sold all the advertising spots , a week faster than NBC last year. According to estimations 100 million people are expected to see the Super Bowl on TV this year.

Super Bowl Madness

Several advertiser who traditionally bought spots on the Super Bowl , will be missing this year due to the financial recession, among them are the  car manufactures General Motors and Ford, and PepsiCo which wont advertise its leading trademark , Pepsi, or any other trademark for the first time in 23 years, after spending not less than 254 million dollars for advertisements during Super Bowl games in the last two decades.

Among the companies that will appear this year  are Intel, Motorola, Electronic Arts, The online broker eTrade, Honda , Hyundai, VolksWagen and Chrysler.

Ailon.

The CEO Game.

The retail sales had hit a 17 years bottom. The retail sales had decrease last month at 0.3% which is the first decrease in the last 3 months, so said the US Trade Office. The economist predictions were an increase of 0.5%. Car sales had decrease at 0.8%, Electronics sales and home supplies decreased at 2.6%.

In annual summery the values of retails sales stood on 4.14 trillion dollars at 2009.

More about how the retail sales will affect the stock market can be seen on the following movie.

Ailon.

The CEO Game.

The US senate had approved with a majority of 70 vs. 30 that Ben Bernanke will continue to he’s second terms as the chairman of the Federal Reserve. Bernanke got Barak Obama’s support for the nomination after Obama claimed the Bernanke’s policy helped the US to minimize the damages of the global financial crisis.

Although Obama declared that he supports Bernanke’s nomination few months ago, the objection of republican senators had put a question mark over Obama’s ability the pass the nomination.

For more about this story.

Ailon.

Ben Bernanke will get enough votes in the sent to get the second term in the chairman position – said David Axelrod, one of President Obama’s top advisors

“The president is confident that the chairman’s appointment will be approved“ Said Axelrod. At the weekend president Obama contacted the Democratic Party leadership to confirm that Barnanke will receive the required votes for his appointment, an indication for the growing concern in the government about Bernanke’s weakened position.

On his way to a second term?

The uncertainty about Bernanke’s re appointment was worsened this weekend, after two democratic senators had announce that they object his appointing, which caused a sharpest falls in US stock market for the last 10 months. Bernanke critics, which object his second term, claims that the Federal Reserve Bank had failed to prevent the worst financial crisis since 1929 and that the bailout that was handed to the banks came on the cost of US tax payers.

Ailon.

The CEO Game.

Like Obama, the European Union is stuck with a high unemployment rate.

For the first time since the Euro currency was launched in 1999, the unemployment rate among the 16 countries which are members of the EU and use the common currency has reached 10%. EuroStat, the Statistical Office of the European Union, had published last week the data which shows that the unemployment rate had risen in 0.1% from October, and is now standing on the highest level since August 1998, an 8% increase compared to 2008 at the time.

As mentioned above, Spain is suffering from the highest rate of unemployment at 19.4%, while Holland is proud to have only 3.9%, the lowest rate. This inequality re-raised the claims that the common Euro currency is of more beneficent to some countries than to others.

The unemployment rate of 27 EU members which don’t use the Euro like Britain and Sweden had also risen in November by 0.1% to 9.5%. Through out the entire Euro bloc you can find countries who are suffering from the recession such as Spain, Greece, Cyprus. In addition, many economies are rapidly shrinking for instance in Estonia, Latvia, Hungary, Romania and even in the United Kingdom.

Altogether in November, 22.9 million of people where unemployed in the European Union, 15.7 million out of them are from the Euro bloc. The EuroStat had also published data showing on a 0.4% growth in the Euro bloc’s economy in the third quarter of 2008, due to Germany and a 0.3% growth in the entire European Union. A reason to be optimistic? We aren’t so sure…

Omer Shachnai

The CEO Game.