Friday, March 4, 2011
We Are Not Alone
The market is climbing at a relatively steady rate giving the feeling that investors are more confident even though the U.S. economy is still sluggish, making this recovery slightly different than previous turn a rounds. What’s up? Well international business is the name of the game. U.S. markets are heavily involved with emerging markets such as China and India. Obviously a double edged sword, as unrest can derail our stock market as much as boost returns. Performance of other global stock markets, economic growth and inflation, and the large amount of US debt held by foreign investors (especially China) are direct influences.
sources: Bloomberg Businessweek, MarketWatch
Talking About a Revolution
How will the global unrest and regime changes affect the U.S. stock market? On Wednesday, March 2nd, oil prices rose to $102 a barrel, an amount not seen since September of 2008, according to Associated Press. With the demand for oil in the U.S. ever increasing the conflict in Libya has caused a drop in supply. The price of gas at the pump in the U.S. is up more than 25 cents since the crisis began.
Sources: Associated Press, MarketWatch
It’s Not Your Supply Chain Any More
For the last year Starbucks and Kraft have been working to separate a partnership that’s lasted over twelve years. Starbucks, after downsizing in 2008 and reforming their image back to a neighborhood coffee shop has increased its profits to over $217 million. The chain now wants to manage its own distribution to stores. On February 25, 2011 Kraft lost an appeals court ruling that allows Starbucks to end the twelve year deal.
Sources: The New York Times, ibmadison.com