Month: December 2010

UK Economy: The Recovery

1. Unemployment in graphics
2. Private sector’s role
3. UK ‘will lose fewer public jobs’
4. UK recovery is on track – Osborne

“The UK’s manufacturing sector grew at its fastest rate for 16 year in November, a closely-watched survey suggests”. UK where mostly focused on the service portion of production before began to increase their effort in the secondary industry after the economic downturn that began since 2008.

“The purchasing managers’ index (PMI) climbed to 58, compared with a revised rate of 55.4 in October, well ahead of analysts’ expectations.” This good news not only foresees the further growth ahead in UK, becoming the market leader in Europe, but also the most important and most direct impact, reduces government spending on aiding the economic recovery.

“The stand-out number was the survey record increase in employment, raising hopes that job creation in manufacturing can plan a wider role in broadening and sustaining the recovery.” “Manufacturing currently accounts for about 13% of the UK’s total economic output”. The increase in growing exports is expecting to play a greater role to improve the UK’s economy in the future. in terms of both keeping a steady rate of inflation and a relatively contant rate of unemployment in the future.

Based on all the mentioned figure and facts, UK can experience an even further improvement in the future. Playing a significant tole in the dominating European economy and becoming the lead.

Source: http://www.bbc.co.uk/news/business-11886932

The probe does not imply any wrongdoing by Google

Google is facing strong negative publications about their content, competition and trustworthiness. “Complaints by search service providers about unfavorable treatment of their services in Google’s unpaid and sponsored search results coupled with an alleged preferential placement of Google’s own services.”

Despite Google denies about the fact, EU decided to investigate into the business for better understanding and more trustful information. For example, “the commission will look into allegations that Google manipulated elements of its system that determine the price paid for ads from these sites”, “the sites duplicates 79% of its content from other sites”, says the complaints.

They’ve been also investigated how the company deals with advertising partners: “exclusivity obligations on advertising partners, preventing them from placing certain types of competing ads on their web sites, as well as on computer and software vendors” which could be good to some extent saying that they prevent attracting businesses from making unethical competition actions on their website; and can be bad to some extent saying they are trying to get away from some accurate information of facts.

To conclude, Google should pay more attention on their publications by monitoring their business behaviors more broadly in all sectors, and to set clear regulations and goals among business structure.

Source: http://www.bbc.co.uk/news/technology-11876443

PepsiCo said the deal would help it expand in eastern Europe and central Asia

“Soft drinks maker PepsiCo has said it is buying a 66% stake in Russian dairy and fruit juice maker Wimm-Bill-Dann for $3.8bn.”

Since PepsiCo is a well known soft drink brand worldwide, its reputation will have a large impact on any businesses related to them, especially the not that well-known ones: Wimm-Bill-Dann.

For Wimm-Bill-Dann, “The deal is the biggest foreign investment in Russia outside the energy sector”, it brings large opportunity to them to gain good reputation, but also gain knowledge and professional business and marketing skills from PepsiCo’s long and successful experience.

On the other hand, for PepsiCo, “The transaction will establish PepsiCo as the largest food and beverage business in Russian, make it a leader in the country’s fast-growing dairy category and build its presence in key markets in eastern Europe and central Asia”. Therefore, it is in the market-seeking process of PepsiCo’s to become the market leader of soft drink worldwide.

Overall, this deal is a win-win on for both PepsiCo and Wimm-Bill-Dann to increase market share and total business revenue encouraging the businesses to set more competitive and risky goals to expand further in the future.

Source: http://www.bbc.co.uk/news/business-11899792

“A presidential panel set up to help trim the US budget deficit has called for steep spending cuts and tax rises.”

Panel co-chairmen Alan Simpson and Erskine Bowles devised the recommendations

“The proposal would cut defense, social security and other spending, slashing a total of $4.1tn from the budget deficit by 2020.” This is a huge cut on the basis of decreasing harshly on citizen’s living standard and basically, their physical security rights has dropped dramatically.

“President Barack Obama proposed a two-year pay freeze for federal government workers as part of efforts to reduce the budget deficit.” Although this may be a part of government workers’ responsibility in order to save citizens’ daily expenditure. However, this is in a risk of being disincentive to the workers of reducing their effort in initiating ideas and implementations to solve national economic issues. Their recommendations include “reduce social security retirement payments to wealthier Americans, while gradually increasing the retirement age and the amount of wage income subject to the social security tax”, “limit annual cost increases for Medicare and Medicaid, the federal healthcare programmes, to 1% of economic growth rate”, “eliminate corporate subsidies in the US tax system” and others to reduce expenditure. These reduce their citizens’ living standard straight forward and decreasing subsidies can cause discouraged employees as well.

Source: http://www.bbc.co.uk/news/world-us-canada-11890399