...Wall Street Journal Project List of Articles * Deal Trips Up Caterpillar in China * Shell Plans to Boost Exploration Budget * Nasdaq Faces Facebook Fine * SEC Freezes A Swiss Account Over Heinz Trades * Payroll Tax Whacks Spending * Fed Sticks to Script, Bank Goes Off * Advisers Help Decide When to Fire an Accountant * China Audits Demand Hong Kong Rigor * FASB Proposes to Amend Guidance on Discontinued Operations * Regulators Close Banks in Kentucky, Florida Deal Trips Up Caterpillar in China Tuesday, January 22nd, 2013 Last June, Caterpillar Inc. paid $700 million for ERA Mining Machinery Ltd. Ever since the purchase last June, Caterpillar hasn’t been doing so well in China. ERA’s value could be written down “by $580 million, blaming “deliberate, multiyear, coordinated accounting misconduct” that was designed to overstate profit at the unit before the deal.” If Caterpillar doesn’t end up doing well in China then it risks losing it’s higher ranking among other construction machinery. Caterpillar still has a few plans to try before giving in easily. Shell Plans to Boost Exploration Budget Friday, February 1st, 2013 Shell and many other oil companies, are planning on expanding the funding for exploration this year. The oil industry is a competitive market and all companies are constantly thriving to become on top. In order to replace declining oil reserves, Shell, and other oil companies are needing to use more of their...
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...Foreigners Embrace Japan Debt As a Haven (Friday, September 21, 2012 C1&C2) Foreign investors bolstered their ownership of Japanese government debt to the highest level on record last quarter, capping an incongruous trend that has seen buyers flock to Japan despite paltry bond yields and the country’s mounting debt burden. Offshore investors owned about ￥82 trillion, or 8.7%, of all Japanese government debt at the end of June, according to quarterly figures released by the Bank of Japan on Thursday. That is the highest since 1979 and about 20% higher than a year earlier. At the end of last year, China held ￥17.954 trillion in outstanding Japanese bonds, including government and private-sector securities, making up 19.6% of foreign holdings of Japan debt. That makes the country the largest single overseas investor in such debt, with the U.K. second at 12.5%. For years, many investors were derisive of Japanese debt, which offered among the lowest yields. Currently, the 10-year yield is less than 1%. But the recent wave of quantitative easing around the world has brought down interest rates in other developed nations, notably the U.S. and Germany. As well, Japan is suffering a period of deflation, meaning the value of Japanese interest rates actually is rising over time. And, with the yen rising as more money flows into Japan, returns for foreign investors are growing. Still, some investors remain bearish on Japan. Jeffrey Sica, the president and chief investment officer...
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...In the article, “What impact do lower fuel costs and other changes have on American Airline’s break-even point?” the author explains how airlines such as American Airline Group (AAL), United Continental Holdings, and Southwest Airlines recorded record profits in 2014. These record profits are caused by the decrease in the price of oil in recent years. Changes in the cost of airline operations can have a huge impact on the airline’s breakeven points- this includes the change in the price of oil. A 3% increase in airfare could impact the breakeven point by decreasing it. Since the selling price of tickets went up, the contribution margin per unit will go up, making the breakeven point per units decrease. The 18% decrease in the price per gallon of jet fuel is a variable cost per unit that would also result in the decrease of the airline’s breakeven point. The increase in the number of seats sold impacted the breakeven point because it was easier to reach the point since more people are buying seats. The increase in the total money spent on jet fuel would make the breakeven point increase since the airline is spending more but not making more profit. The increase in the cost of labor contracts would raise the breakeven point because the fixed cost would go up. All these impacts result in either increasing or decreasing the breakeven point of the airline. Although the cost of jet fuel per gallon has decreased, airlines are spending more on jet fuel because they are buying more fuel...
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...Minimum Sense By HANS-WERNER SINN April 30, 2007 While the German economy is finally booming again and employment rising rapidly, the situation of the low-skilled and long-term unemployed remains difficult. Their wages, if they can find a job at all, have come under increased pressure in recent years due to the extensive outsourcing and offshoring activities of German firms. They are the obvious victims of globalization. As the ex-Communist countries and India, accounting together for no less than 45% of mankind, decided to participate in the market game, equilibrium wages for ordinary labor in the industrialized world, including Germany, have fallen. Berlin is considering introducing minimum wages to fix this problem. This is at least what the Social Democratic Party and its labor minister, Franz Müntefering, demand. Chancellor Angela Merkel's Christian Democratic Party, the coalition leader, is still reluctant to endorse this proposal. But its opposition is eroding in view of the public support minimum wages enjoy. Left-wing politicians and journalists dominate the debate. Minimum wages, they say, are necessary to maintain the living standards of the poor. They argue that minimum wages pose no problem for the economy: After all, most other European countries have them already. They fail to acknowledge, however, the negative experience these countries had with minimum wages. The vast majority of empirical studies show they tend to cost jobs. In France, for example, a 1%...
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...plan to acquire Annie’s, an organic-food marker, with 37% premium to the share price in the deal. Because organic and natural foods is more attraction than traditional brands such as General Mills. General Mills tried to cut costs and shrink capacity to finish deal and respond to week demand. But Investors and markets response is not good. The share price is declining 3.7% in afternoon trading. From the article, we can know, the operating environment quite challenging recently. The overall news for General Mills said total revenue and earnings are declining. The overall performance missed expectations that Wall Street analysts came out. From the article, I think this deal is not good. Nearly a week ago, I have saw general mills to buy Annie’s Inc. on Wall Street Journal for 820 million dollar, was 37% premium to the share price before the deal. Right now, Wall Street Journal published “General Mills Drops 25%”, which means markets are down on this deal. Also, investors shrug off this deal. Obviously, stock price were decreasing in afternoon trading afternoon, which was down 3.7%. Market reaction is not good. Also, under the bad situation during the whole industry, General Mills cuts costs and shrink capacity to try acquire Annie’s with 37% premium to the current share price in the deal. The action seems not wise. With continues lower earnings, company still perform risky behavior. The result turns out performance of company business even worse. I think General Mills’ deal is...
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...Jordan Belfort, More Noise From Victims After Movie Launch Audience and victims are becoming more curious and alert after the success of the movie “the wolf of wall street” by Leonardo Dicaprio , people all over the globe and myself are questioning , Belfort: Good or Bad ? Rich or Broke? hiding money or not and when will victims claim their money back. Some victims claimed that they have lost all their money savings, others said that the movie showed Belfort as a myth of which triggered them to ask for more actions to have their money and many claimed that these type of movies shouldn’t show these people as heroes instead they should have shown real victims and how they suffer rather than showing the partying, prostitution and drugs. The movie globally affected public opinion in terms of injustice towards such frauds. 1989, as a talented salesperson who graduated with a Biology degree decided to set up his own company Stratton Oakmont, building up on his learnings from working as a stock broker in LF Rothschild which was to be known prestigious at that time before falling in 1987. The ambitious Belfort taught his employees sales calls for penny stocks and lead this company to being a boiler room: a term used to describe high pressure sales environment. Employees followed him blindly and he gained their trust with his everyday speeches and high commissions. It was said that he had around 1,000 broker dealing with a $billion worth of trades. The pump and dump scheme he followed...
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...The Wall Street Journal Monday, September 13, 2010 “The U.S. Needs Its Own Industrial Policy”- A19 By: Jeremy Wiesen After reading this opinionated article on how Jeremy Wiesen believes the United States needs its own industrial policy, I came to a conclusion that the main economic concept of this article could very well be summed as normative economics. Normative economics is the practice of recommending policies to solve economic problems (Hall & Lieberman 9). I chose this as the main economic concept of this article because Wiesen reiterates many times throughout the column that ”the United States needs new fast growing businesses like Microsoft, Google, and Home Depot that can grow from a few employees to tens of thousands.” What Wiesen is trying to express is an opinionated perspective of how a certain policy he deems to be correct can stimulate our economy. Wiesen then goes on to state “if the U.S. Small Business Administration were staffed by people with a deeper knowledge of entrepreneurship, then it could step up its small business investment corporation…” Here is another narrow-minded view of Wiesen, also known as normative economics, that he believes will help the United States strive. Although I am a little rusty on my Industrial Policies of the United States and the world, I can see where Wiesen is forming his hypothesis. But what makes this column one of normative economics is the fact that although many other economists, including me agree with Wiesen...
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...Dawn M. Hampton Mrs. Pfeifer Composition 1 July 8, 2014 Are Publications Truly Different in Nature? Most people can recognize the name or are familiar with The Wall Street Journal (WSJ) and National Enquirer (NE). Closely examining the two newspapers, it can be stated that there are some similarities and definitely differences. Although the readership can be assumed to be of different personality types WSJ and NE contain similarities and differences in terms of their graphics, advertisements, and article content. To start with, comparing the graphics of the two publications, it is noted that both have similarity with the use of bold larger font lettering for their headlines making a visual effect in separating articles. Both papers use colored ink for images and pictures and also feature photos of people that mirror human emotion. For example, the WSJ’s article “Teens Care Spurs Wider Fight” has a picture of the teen’s mother looking distraught and another article in the WSJ sports section titled “Team Canada: Officially Unstoppable” shows a hockey player with his hands up in the air and a look of celebratory victory with a huge smile on his face. In like manner, NE has numerous photos of people showing emotion. For instance, the article “Mad Mel’s Even Madder” contains a photo shot of Mel Gibson with a look of anger and appears as if he is yelling; while another article on the same page “Celine’s Cancer Stricken Husband” shows a picture of Celine Dion looking...
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...Case Study 2: Etch A Sketch Ethics MGT 214 – Managerial Foundations 6/12/2013 1. Was it ethical of the Ohio Art Company to move production to China? What were the economic and social costs and benefits of this decision? What would have happened if production had not been moved? In my professional opinion, I believe the Ohio Art Company’s decision to move the production of their Etch-A-Sketch product to China was ethically sound. The Ohio Art Company was losing money while manufacturing in Bryan, Ohio. Even though outsourcing resulted in layoffs in Ohio, it also saved the jobs of many other employees by keeping the company profitable. Furthermore, even though outsourcing may result in lost jobs in the USA, it does provide employment for people in other countries. If the Ohio Art Company hadn’t moved production, it may have been forced out of business due to high manufacturing costs and immense pressure from distributors to keep prices low. 2. Assuming that the description of working conditions given in The New York Times article is correct, is it ethical for the Ohio Art Company to continue using Kin Ki to manufacture Etch-A-Sketch toys? Continuing to use Kin Ki would be highly unethical, assuming that the New York Times article is correct and that Kin Ki would not immediately resolve the issue. According to the case study, Kin Ki was misrepresenting numerous aspects of their operation. These aspects included wages, hours worked, work conditions, and living...
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...critical attention to this problem that we are facing. As I see it only positive outcomes could come from this article. The only that I can tell is that the government will be more aware of the unemployment growth and take action. It is clear that since President Obama has come in to office he has done increased our economy by supplying more jobs for the citizens. Coming to the end of his term it is clear that our economy is starting to go back down so I hope that this article helps bring to his attention what is going on in the country that he is in charge of. They believe the winter climate is to blame for the unemployment rate increase last week. The total of unemployment claims at the end of the week of Feb. 28th was 320,000. The wall Street Journal had expected 290,000. Thursday reported stated that the number of claims filed continued to rise and had increased by 17,000 to 2.42 million for the week ended in Feb. 21st. Job claims have been at a continuous increase over the past month from the lowest level since the last economic expansion. A total of 240,000 jobs were added in the month of February by employers. In the summer of 2014claims were below 300,000 and remained at that state for the rest of that year. There was an average of 336,000 jobs added by economy a month since November of 2014. Which is the largest increase of jobs since 1997. In every state that year unemployment fell in the nation’s capital. This is something that has not happened in 30 years, according to...
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...The Genre of this article would be a public relations article. The purpose of the writer is to inform users of third party applications that retain personally identifiable information of the potential security breach. There are a few unfavorable impressions provided in the article, he does not seem to remain neutral but more implying that Facebook willingly provided this information to its third party affiliates. The language that would imply that would be the name dropping used in the article, the statement that was included from The Wall Street Journal would be the biggest indicator of legitimacy in the article. The intended audience would be people in their middle ages that would have a cause for concern if their personally identifiable information would be collected by anyone at all. This relates to the genre by informing the public about ongoing relations with Facebook and third party applications. Making it clear, that this article would without a doubt is a public relations article. The evidence provided by the writer that influences the purpose of the article would be the last two sentences in the article which state the “Facebook needs to provide privacy setting that let member control which apps have access to their personal information” Steel, E. (2010, October 18) Facebook in Privacy Breach. WSJ, p.6 http://www.wsj.com/articles/SB10001424052702304772804575558484075236968 as well as suggesting they “invoke a more stringent validation for third party applications”...
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...8/30/2014 McDonald's Faces 'Millennial' Challenge - WSJ Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com See a sample reprint in PDF format. Order a reprint of this article now BUSINESS McDonald's Faces 'Millennial' Challenge Customers in Their 20s and 30s Are Defecting to Fast-Casual Restaurants Like Chipotle, Five Guys By JULIE JARGON Aug. 24, 2014 9:05 p.m. ET McDonald's is trying to enhance its credibility with young customers by marketing more on digital channels and testing mobile ordering and payment. Associated Press Behind McDonald's Corp.'s worst slump in a decade is a trend that may augur even tougher times ahead: The Golden Arches is losing its luster with younger consumers. The world's largest restaurant company by revenue earlier this month reported its sharpest monthly decline in global same-store sales since early 2003, adjusted for calendar irregularities. In the U.S., with more than 40% of McDonald's 35,000-plus global locations, sales at restaurants open at least 13 months have been flat or falling for most of the past year. The hamburger giant on Friday announced it was replacing the head of its U.S. division for the second time in less than two years. The company tapped a former executive, Mike Andres, to take the helm...
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...Week 9 Case Analysis 2 Demetrius Sanders Dr. Golabek HRMG 5000 Webster University Week 9 Case Analysis 2 Paul was faced with a large task before leaving Utiliscan, and many of those issues came because of the morale in the employees. Most of the employees loved what they did, most loved the company they worked for, and then there were those that wanted change immediately. So Paul did what any Director of HR that loved what they did, he sought on the employees and gave them the opportunity to voice their concerns, and even voice their appreciations. With this survey comes the need to seek change and of course we know that with change comes expenses. In addition to performing interviews when employees leave to determine why they are leaving, this survey Paul created is what is known as a stay interview. This allowed Paul the ability to see why long time employees are still there and what it will take to keep them there. Looking over the survey and the results of the survey, and having to determine where the major needs are, and how to manage the cost of expenses. So looking at the areas listed, the most expensive of the list would have to start out with the attempt to improve benefits available to all employees. Yearly employee benefits increase and with organizations trying hard to find and retain the best of the best. With employees feeling certain ways about the organization can damper the morale. So with 44% of your employees says they aren’t happy...
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...Exhibit 7 raise? What questions do the ratios on peer firms in case Exhibits 8 and 9 raise? •Liquity ratios muestran estabilidad en la liquidez y capacidad para afrontar pasivos. •Profitability ratios como operating profit margin y net profit margin muestran como se incrementaba el ingreso reportado por Krispy Kreme y por consecuencia sus ganancias. •En comparación con otras marcas de la industria Krispy Kreme tenía ingresos por ventas por debajo de su competencia sin embargo sus ratios sobre return on assets, return on equity, EBIT margin y net profit margin superaban a la de las demás marcas. 3. Is Krispy Kreme financially healthy at year-end 2004? No, por las siguientes razones: • Debido a los artículos publicados por the Wall Street Journal el precio de la acción alcanzo su menor precio en la historia corriendo el riesgo de dejar de ser listada en bolsa. • Parte de sus activos se vieron afectados por la multa impuesta debido a sus malas practicas contables. • Las ventas, y por tantos los ingresos habían tenido una disminución considerable desde meses antes. • La readquisición de las franquicias, después de la corrección en sus estados financieros, dejarían de ser un active intangible y pasarían a ser amortizados, lo cual...
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...FRAUDES CONTABLES ADELPHIA COMMUNICATIONS FUNDAMENTOS DE AUDITORIA Grupo No 4 INTEGRANTES: Barragán Rojas Jonathan Francisco Moreira Herrera Damarys Ivette Ronquillo Burgos María Fernanda Vergara Ortiz Lady Marisela Adelphia Communications Antecedentes de la empresa * Adelphia Communications * Ubicada en Wall Street esta división de la organización se centró en el desarrollo local, regional y nacional que anuncia las oportunidades promocionales con la inserción comercial en las redes locales, regionales y nacionales de las redes del cable, de las noticias e internet. * Fue creada en 1952 por John Rigas por $300.00. Era un hombre que sabía cómo manejar sus finanzas, para adquirir la corporación sobregiro su cuenta bancaria. En años posteriores el Sr Rigas pidió préstamos consecutivos para poder adquirir nuevas franquicias rurales en Pennsylvania y Nueva York. Rigas apenas podía permanecer frente a los acreedores moviendo el dinero de una cuenta a otra. Además podía considerarse que tenían considerables dificultades para cobrar a la familia Rigas, Con el afán de que la Corporación sea familiar sus hijos se unieron apenas consiguieran sus títulos universitarios Timothy y Michael. * Adelphia Communications ofreció Televisión por cable, también cable digital, acceso a internet de gran velocidad, servicios telefónicos interurbanos y seguridad casera. Análisis del caso -Tipo de delito e infracción que cometió * Conspiración * Fraude...
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