Failed Chinese deals increase tensions
The Wall Street Journal is reporting that several failed deals with Chinese firms trying to invest in the U.S. are increasing tension between the two countries. The latest deal between Hawker Beechcraft, who wanted to sell to a Chinese firm, fell apart because of potential national security objections and difficulties separating its defense aerospace operations from other businesses. A wind power deal in Oregon fell apart due to its location near a military base. The attempted sale of battery maker A123 Systems to a Chinese auto parts manufacturer was also denied. Chinese investment in the US rose 18 percent last year and estimates are that the amount invested will be even larger this year. Yet China sees the US as difficult to invest in due to the myriad of regulations. The posturing of the presidential candidates regarding their toughness on China also exacerbates the situation.
Airbus to double amount spent in US
Airbus, which last year spent $12 billion on US parts and services for its airplanes, will double that spending by 2020, according to Reuters. The company plans to build a $600 million plant to assemble its A320 short and medium distance planes. Southern California is likely to become the winner when the plant is built in Valencia, California. The Airbus company indicates, however, that California’s educational system must become more competitive with other states in order to retain the business. By 2015 Airbus expects to have 13 daily flights by its carriers to LAX. That equates to $9.4 billion in added economic activity and 3,900 new jobs.
Google’s stock plunges after early release of data
Google’s release of poor earnings was compounded by the mistake of a contractor who filed the release early, causing the stock to fall $60.95 per share. It closed at $695. Google earned $2.18 billion, according to the Associated Press, but net income was $6.53 per share compared to $8.33 per share a year ago. Most of the trouble was with Motorola Mobility, a cellphone maker that Google acquired by May. RR Donnelly & Sons, Google’s printer, filed the release three hours earlier than anticipated, causing greater alarm than expected since the earnings were far below analysts expectations. The Dow dropped 8.06 points on Thursday ending at 13,548. Asian markets were mixed on Friday while European markets are down.
Newsweek to end print publications at year end
Newsweek will end its print publication at year end, due to the collapse of advertising in print magazines in recent years. The Washington Post indicates that Newsweek struggled with $40 million of annual costs despite a loss of readership in the past decade. The recent appointment of Tina Brown as editor in chief has improved the reputation of the organization, providing edgy content appealing to a younger generation of readers. Brown and CEO, Baba Shetty, indicate the magazine will continue to thrive in an all digital environment.
Washington apple growers see boom
Warm spring weather, followed by an untimely frost, damaged apples in New York and Michigan this year, causing declines in production of as much as 60 percent. But the Associated Press reports that the state of Washington is experiencing a record harvest of 108 million bushels, the second highest on record. Nationally the US Apple Association expects the total amount of apples to go down by about 10 percent. This will cause the price of apples at the grocery store to increase. New York, who usually harvests 30 million bushels of apples annually, will produce less than half that amount. Michigan will drop from 28 million bushels to about 3 million. Washington will ship more apples across the country than in most years. Virginia and Pennsylvania, usually small harvesters, may pick up their production.
Big Bird costumes fly off shelves for Halloween
Big Bird costumes are out of stock, according to USAToday. After becoming a symbol of the Presidential debates this year, Halloween costume shops have not been able to keep Big Bird on the shelves. But all of the other Sesame Street characters are still available. If you still want to be Big Bird, however, costume shops are suggesting ebay?
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.