Goldman Sachs downgrades China
Goldman Sachs became the last bank to downgrade China’s economic growth due to financial conditions and government reforms that Goldman believes are downside risks for the economy. CNBC reports that Goldman cut China’s GDP growth forecast for the second quarter to 7.5 percent down from 7.8 percent previously. It estimates full year growth for 2013 to be 7.4 percent, down from 7.9 percent. Forecasts for 2014 moved from 8.4 percent to 7.8 percent. Chinese money market funds hit a record high last week with rates rising above 10 percent. Experts indicate that the liquidity in China’s banking system is tight but the central bank in China believes that liquidity is at a reasonable level. China’s statement has caused volatility in global markets today.
Twinkies return to shelves on July 15
Hostess is planning on having Twinkies and its other snack cakes back on the shelves on July 15, according to the Associated Press. The cakes will taste the same but the box will say “The Sweetest Comeback in the History of Ever”. Hostess filed for Chapter 11 bankruptcy in early 2012. The company said it was weighed down by higher pension and medical costs due to its unions. In November of 2012, Hostess failed to reach a contract agreement with the unions and decided to shut its doors. Its brands were sold to different companies and Metropoulos and Company and Apollo purchased Twinkies and other Hostess cakes for $410 million. The trimmed down Hostess brands has a far less costly operating structure. While many of the employees were re-hired, they are no longer in a union.
Bond Funds suffer losses
Closed-end bond mutual funds have suffered significant losses in the last month with the average high yield closed-end bond fund down 10.7 percent, according to the Wall Street Journal. The primary reason for the recent losses is leverage that debt-fund managers have take on to boost returns. Closed-end funds have a limited number of shares and often prices vary dramatically from the value of bonds in the fund. At the end of the first quarter, these funds held $276 billion, according to the Investment Company Institute. When investors see their second quarter statements, it is anticipated that many investors will choose to move their funds.
Hulu is up for sale
Hulu, the Web streaming service jointly owned by Walt Disney Company, NBC Universal and News Corporation, is up for sale. According to the New York Times, there are several interested parties including Time Warner Cable, DirecTV, the Chernin Group and two private equity firms. Yahoo also had expressed an interest prior to its acquisition of Tumblr on Thursday. The estimated value of Hulu is expected to be about $1 billion. Binding bids are due on Friday.
Lamborghini opens new stores
Lamborghini, the high-end Italian sports car company is opening dealerships in Toronto and Denver, according to USA Today. There are currently three stores in Canada and 29 in the US. Cars are priced from $200,000 and up. Lamborghini sales are up 31.2 percent in the first five months of this year. That means, however, that 269 cars have been sold. Ferrari sales are up 32.4 percent this year while Maserati sales are up 7.4 percent. Rolls Royce sales are down 21.5 percent.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.