The Commerce Blogger

Hurricane Sandy might just be the worst disaster in over a century, affecting the East Coast of North America. The hurricane, which was surprisingly only on Category 1 of a scale of 5, caused massive destruction in major cities in the United States and delivered a painful blow to the US economy. New York in particular, suffered relatively more damage as subways were flooded and transportation within the city was left stagnant.

The New York stock exchange was forced to close due to the hurricane and it was the worst weather related shutdown in over a century. What were the implications of the sudden closure of the stock exchange?

According to former SEC Chairman Levitt, ““To see the New York Stock Exchange crippled is a body blow that will really shake the image of that institution for a long time to come.” The stock exchange serves as the symbol of United States capitalism and for it to go down without a contingency plan has definitely caused people to lose trust and reputation of that institution.

The numbers of a company in the stock exchange changes constantly as the price changes due to supply and demand and also the information about cash flows. I definitely see the value of the S&P 500 stock plunging as a result of this unfortunate news.

http://business.financialpost.com/2012/10/30/u-s-stock-markets-set-to-reopen-wednesday-after-longest-storm-shutdown-in-over-a-century/

The recent football match between Barcelona and Real Madrid was an enjoyable and thrilling one. In the end, the score was tied at 2-2. Many agreed that this match had been a fantastic one in recent years. Nevertheless, there was also some other activity going on during the match.

The stadium, which seats approximately 90,000 fans, was covered with Catalonian flags precisely at minute 17 and 14 seconds. It was not a coincidence. Instead, it was when Catalonia lost its last independence war against Spain’s monarchy in 1714. 

About a month ago, the Catalonian government decided to pursue their independence. This was followed by loads of support from the people of Catalonia, the Catalans who did so in the stadium.

The biggest issue revolving football fans is this : If Catalonia gets its independence, will Barcelona continue playing in the La Liga (Spanish Premier League) or will they have to play in the new Catalan League? If they were to switch to the other league, this would jeopardize the SPL and cause a disruption in the football world.

On the bigger picture, if Catalonia were to separate from Spain, how would they hold up? It would be bizarre if they were to have a different language, presumably Catalan, as their official tongue. Investors on the other hand, also face a similar issue. They would be unsure if they should invest in Spain or the newly formed Catalonia. This uncertainty is pushing investors even further away.

In a separatist’s point of view, would it be right to seek independence based on the current circumstances? This article on Yahoo doesn’t seem to think so.

Article : http://www.guardian.co.uk/world/2012/oct/05/barcelona-real-madrid-catalan-nationalists

After reading one blog post of my classmate, Julia Amelio, regarding her blog post; Samsung copying Apple products, I must disagree with her about Samsung’s intentions.

I do agree that Apple is innovative and special. They create unique products that have an aesthetic feel towards them. However, the recent debate surrounding Samsung and Apple is just dumbfounded. I, for one believe that Apple is suing Samsung just because Samsung appears to be their no.1 competitor.

Apple claims that Samsung’s tablet was copied based on the design of their iPad. What is not known, however, is that the curved edges, black background and silver edge features of the iPad, has all been done before Apple on a tablet PC. There were many tablets with rounded edges and black borders before Apple, for example in 2010, a Chinese company created a model tablet PC called P88. Ultimately, they decided not to sue Apple even though they could have done it.

I admit that the Apple iPad is a revolutionary and great product, but it is not a new invention. The shape of a tablet is dictated by the screen and its rounded edges are to provide comfort. What I am curious to know is how did Apple get a patent for their tablet? In the most recent news surrounding this debate, Apple has been told to admit that Samsung did not copy their iPad.

I guess that kinda proves my point, right? 🙂

It’s amazing when one looks at China’s recent growth, becoming the world’s second largest economy by nominal GDP. This industrialized country is the world’s fastest growing major economy with astounding growth rates of 10% on average each year.

BMO chief economist Sherry Cooper said, “commodity demand might weaken further as growth prospects in China, India and Brazil have dimmed and Europe is still mired in austerity induced recession and debt overload.”

The implications of China’s slowing growth rate to North America are severe. China’s accelerating decline in growth rate is influencing the fall of many major economies.

That being said, how powerful actually is China’s influence over other countries? Despite its massive economy, and fast growth rate, China is seen as a poor country with a big population. GDP per capita does not mean everything.  But it is a broad indicator of both a country’s standard of living and level of economic development.

In 2011, Lynas proposed to mine ores in Mount Weld and ship its waste to Kuantan. Lynas preferred Malaysia over Australia due to certain reasons. Gebeng, an industrial park in Kuantan, had more suitable features to  build their Lynas Advanced Materials Plant (LAMP).

The Malaysian government benefits economically from the action of Lynas corporation, as it includes a tax holiday for 12 years and the creation of 350 new jobs.

However, there has been a lot of controversy as a result of their actions. The locals in Kuantan know of the long term harmful effects the waste brings to their environment and people living in Gebeng.

“They believe that the legacy of toxic waste left behind far outweighs any economic gain,” and the local opposition has been supported by many Malaysians alike. Many organizations have been formed to raise awareness regarding the issue.

The operation is scheduled to commence in Q3 2012. Lynas indicates that by early 2013, it will be able to supply 22,000 tons of Rare Earth concentrates per annum.

The actions of Lynas corporation definitely brings huge benefits for the people of Malaysia economically. However, are their actions justified, as it damages the local economic sector and harms the lives of the locals?

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