In the News...

Some Business headlines at home and abroad....


Hundreds lose jobs as mill closes

Over 350 jobs are set to be lost after it was decided Inverurie Paper Mill is to close.
International Paper has announced the mill in Aberdeenshire will shut by the end of March as no financially viable alternative has been found.


Slowdown in house price decline


Scottish house prices have continued to fall but the rate of decline has slowed, according to research by Lloyds TSB.
The bank's Scottish House Price Monitor showed the average domestic property dropped in value by 2.3% in the three months to 31 January.
The previous figures published in November showed a 4% fall - the largest in the 16-year history of the monitor.
On an annual basis house prices have risen by 1.6%.
Lloyds TSB said the average mix adjusted Scottish house price was now £158,820.

Domino's delivers strong profits

Domino's Pizza has reported strong profits growth in 2008 after consumers looked to cheaper alternatives to eating out during the downturn.
Profits at the pizza firm in the UK and Irish Republic rose 24.7% to £23.4m, with like-for-like sales up 10%.
The company opened 52 new stores during the year and created 1,800 jobs, with total sales up 18.4%.
Fast food and home delivery chains are some of the few businesses profiting during the recession.
Indeed a third of the company's 2.7 million customers during the year were new customers.
The company has also seen a strong start to the new year, with like-for-like sales up 15% in the first six weeks of 2009.
Domino's plans to open another 50 new stores this year, taking the total number of Domino's outlets to over 600. It hopes to have at least 1,000 open within the next 10 years.

Air bag jacket 'could save lives'

Dozens of motorcyclists' lives could be saved every year if air bag jackets were made compulsory, accident and emergency doctors have said.
The jackets are the equivalent of car air bags and inflate if the rider is thrown off during a crash.
In one version, the jacket is attached to the bike by a lead which detaches when the rider has come off suddenly.
The Department of Transport said it had no plans for a new law but said it welcomed anything to improve safety.

China warns against protectionism

China has warned that protectionist measures in other countries' economic stimulus packages will make the bad financial situation even worse.
A commerce ministry spokesman expressed "deep concern" about the measures.
At the weekend, a commentary published by the official news agency Xinhua singled out the "Buy American" provisions in the US' stimulus package.
China fears this is a sign the Obama administration will pursue protectionist policies in the future.
America's multi-billion dollar stimulus package was approved by Congress on Friday.


20,000 jobs may go in California

Cash-strapped California is to start notifying 20,000 state workers that they may lose their jobs.
A spokesman for Governor Arnold Schwarzenegger made the announcement after California lawmakers failed to approve a $40bn (£28.2bn) budget.
California, the world's eighth biggest economy, has been hit by the housing crisis, unemployment and falling consumer spending.
The jobs on the government payroll would be cut in June.
It would be done in preparation for the next fiscal year, which starts in July.
"In the absence of a budget, the governor has a responsibility to realise state savings any way he can," said Aaron McLear, a spokesman for Republican governor Schwarzenegger.
"This is unfortunately a necessary decision."


Japan finance minister steps down

Japan's Finance Minister Shoichi Nakagawa has resigned, amid claims that he was drunk at a recent G7 meeting.
Mr Nakagawa said earlier that he would wait until parliament had approved a supplementary budget to step down.
But he brought forward his departure after calls for his immediate exit escalated.
Prime Minister Taro Aso said he respected Mr Nakagawa's decision and named Economics Minister Kaoru Yosano to take over the finance portfolio.
Mr Nakagawa apologised for "causing such a big fuss" and told journalists: "I decided that it would be better for the country if I quit."


Intel announces $7bn plant plan

Computer chipmaker Intel has announced plans to build new plants worth $7bn (£4.78bn) weeks after announcing the closure of five plants.
The world's biggest chipmaker says the investment will fund 7,000 jobs in Oregon, Arizona and New Mexico.
Last month, Intel said it was cutting up to 6,000 jobs in response to slowing consumer demand for computers.
It also aims to increase production of faster chips. Two of the plants being closed make older-style chips.
"Spending this money will lower our costs and give us more competitive products. It's something that's fundamental to our business model," said Intel chief executive Paul Otellini.
"From our perspective this is a cheaper, better technology," he said.

Source: BBC News

So there are some headlines from, around the world. Interesting that some firms such as Domino's are bucking the trend of shedding jobs. Also this is the first real test of the Asian/Pacific Tiger Economies of which you know I am quite interested in. Japan had a long deflationary period and a recession of its own, but now it is the turn of South Korea, Thailand, Malaysia and also the new powerhouse on the block, China.

Remember the video on Wal-Mart? Most of their goods were made in China. Even during the boom times the terms and conditions for the employees were pretty scandalous... so what will it be like now?

How does the world recover from this recession? That is the $1 Trillion Dollar question. Obviously more public money will be used to start spending projects (in the Great Depression the Americans built the Interstate system and the Nazis built the Autobahns) but it doesn't always work. Perhaps it is just a case of the balance or equilibrium falling back into place. So that after times of over-inflated prosperity there has to be times of hardship. Not good news, I know, but perhaps closer to the truth.

If you have time, look at what is know as the Kondratiev Wave theory and also look up a little known US politician Huey Long.

I'll be asking about this in class and I will post the answers in a week or so. Both are interesting and relate to what is happening at present.