There is an "unhealthy correlation" between the building of skyscrapers and subsequent financial crashes, according to Barclays Capital.
Examples include the Empire State building, built as the Great Depression was under way, and the current world's tallest, the Burj Khalifa, built just before Dubai almost went bust.
China is currently the biggest builder of skyscrapers, the bank said.
India also has 14 skyscrapers under construction.
"Often the world's tallest buildings are simply the edifice of a broader skyscraper building boom, reflecting a widespread misallocation of capital and an impending economic correction," Barclays Capital analysts said
Source BBC News
Showing posts with label Recession. Show all posts
Showing posts with label Recession. Show all posts
Wednesday, 11 January 2012
Sunday, 27 November 2011
Chancellor unveils £40 billion loans package
Chancellor George Osborne will unveil credit easing schemes to release up to £40bn in loans to small firms when he delivers Tuesday's autumn statement.
Under one plan, the government would underwrite banks' borrowing so they could pass on cheaper loans to firms turning over less than £50m. Loans of £20bn will be involved initially but this could be doubled.
Shadow chancellor Ed Balls commented that access to credit alone would not restore business confidence.
Mr Osborne is proposing three schemes in an attempt to boost economic growth.
The first scheme would see the government provide a guarantee for banks to borrow on the financial markets.
It is understood that the second £20bn of loan guarantees are being held in reserve for the moment but could be made available in the next two years.
The chancellor will also propose that the government takes a stake in an investment fund with private sector investors to provide a source of credit or loans to medium-sized companies.
A third scheme would offer an alternative to traditional bank loans by encouraging firms to sell bonds - or company IOUs - to the market.
Source: BBC Business News
Saturday, 26 November 2011
£1 billion plan to get young people back to work
Deputy Prime Minister Nick Clegg says a £1bn plan to provide subsidised work and training placements will "provide hope" to thousands of young people.
The three-year youth contract scheme will give employers subsidies worth £2,275 to take on 160,000 18-to 24-year-olds for six months.
Youth unemployment hit 1.02 million in the three months to September.
Labour questioned how it would be funded, following reports that working tax credits were to be squeezed.
Thursday, 24 November 2011
America's Worst Cities for finding a job
In a recent survey, job search aggregator firm Indeed found that the hardest city of find a job was Miami, with 4 applicants for every job.
LA was second with 3.48 applicantets per job, Riverside, CA was thirds with 3.25 job seekers, Las Vegas was fourth with 3.1 applicants.
Fifth was motown itself, Detroit, where 2.75 people applying per job.
LA was second with 3.48 applicantets per job, Riverside, CA was thirds with 3.25 job seekers, Las Vegas was fourth with 3.1 applicants.
Fifth was motown itself, Detroit, where 2.75 people applying per job.
Saturday, 19 November 2011
Who Britain owes its debts to...
Click here to see a good interactive diagram representing just exactly who the UK owes its debt to.
Comparing the UK to some of the others makes for eyewatering reading...
Foreign debt per person (in Euros)
UK 117,580
Japan 15,394
USA 35,156
Germany 50,659
Spain 41,366
France 66,508
Portugal 38,081
Greece 38,073
Ireland 390,969
Our risk level is still low even though we do have the second highest amount of foreign debt.
Friday, 18 November 2011
How nations can go bust....
A good video on how countries can go bust from the BBC's Business Editor, Robert Peston:
Sunday, 14 February 2010
Toyota - Product Recall Recent History
Toyota for many years has been a name synonymous with quality and perfection. Not for nothing is the Corolla the biggest selling car of all time.
However, Toyota's seemingly unblemished image is unravelling at speed.
Here is a history of product recalls over the past 3 years from the Japanese automobile giants.
September 2007, US: 55,000 Camry and Lexus cars in floormat recall
October 2009, US: 3.8m Toyota and Lexus vehicles recalled due to floormat problem
November 2009, US: floormat recall increased to 4.2m vehicles
January 2010, US: 2.3m Toyota vehicles recalled due to accelerator pedal problems (of those, 2.1m already involved in floormat recall)
January 2010, US: 1.1m Toyotas in floormat recall
February 2010, Europe: 1.8m Toyota's in pedal recall
February 2010, Japan, US: 200 reports of brake faults in new Prius. Cars recalled
February 2010, worldwide: 436,000 hybrid vehicles in brake recall. Also, 7,300 Camry vehicles recalled in the US over potential brake tube problems
February 2010, US: 8,000 Tacoma pick-up trucks recalled over concerns about defective shafts
With a dreadful start to 2010, perhaps this is Toyota's annus horibillis?
How can Toyota recover from such bad press and negative perceptions about reliability and quality, their biggest strengths when taking on the US giants of Chrysler, General Motors and Ford?
Perhaps the question should be how long will it take for them to recover. But in this global recession who knows?
However, Toyota's seemingly unblemished image is unravelling at speed.
Here is a history of product recalls over the past 3 years from the Japanese automobile giants.
September 2007, US: 55,000 Camry and Lexus cars in floormat recall
October 2009, US: 3.8m Toyota and Lexus vehicles recalled due to floormat problem
November 2009, US: floormat recall increased to 4.2m vehicles
January 2010, US: 2.3m Toyota vehicles recalled due to accelerator pedal problems (of those, 2.1m already involved in floormat recall)
January 2010, US: 1.1m Toyotas in floormat recall
February 2010, Europe: 1.8m Toyota's in pedal recall
February 2010, Japan, US: 200 reports of brake faults in new Prius. Cars recalled
February 2010, worldwide: 436,000 hybrid vehicles in brake recall. Also, 7,300 Camry vehicles recalled in the US over potential brake tube problems
February 2010, US: 8,000 Tacoma pick-up trucks recalled over concerns about defective shafts
With a dreadful start to 2010, perhaps this is Toyota's annus horibillis?
How can Toyota recover from such bad press and negative perceptions about reliability and quality, their biggest strengths when taking on the US giants of Chrysler, General Motors and Ford?
Perhaps the question should be how long will it take for them to recover. But in this global recession who knows?
Friday, 27 November 2009
Wellworths... 8months later
The Woolworth's store in Dorchester that closed and then reopened as Wellworths is getting ready for the busy Xmas period.
Claire Robertson, the manageress who bought over the failing branch remains upbeat and confident about the future.
She is the epitome of the little person who refuses to let a dream die. Whether or not she can keep her unique Wellworth's store alive in such hard fiscal times is another matter.
Indeed many Woolworth's employees are struggling to find work. Woolworth's was not only the most sentimental casualty of the recession, but it left the most people unemployed.
Fingers crossed that Claire and her team (including 20 former Woolies veterans) can survive and prosper.
Claire Robertson, the manageress who bought over the failing branch remains upbeat and confident about the future.
She is the epitome of the little person who refuses to let a dream die. Whether or not she can keep her unique Wellworth's store alive in such hard fiscal times is another matter.
Indeed many Woolworth's employees are struggling to find work. Woolworth's was not only the most sentimental casualty of the recession, but it left the most people unemployed.
Fingers crossed that Claire and her team (including 20 former Woolies veterans) can survive and prosper.
Friday, 3 April 2009
From Woolies to Wellies
In Dorchester, an ex-manager of the failed Woolworths brand has created a phoenix from the ashes, documented in a show on BBC 1 last night.
Claire Robertson re-employed all the axed Woolies staff and renamed it Wellworths. She changed the stock a bit - with help from a new buyer who was obssessed with picture frames - and changed the look of the store slightly. She axed the poor selling CDs and DVDs - which did not keep everyone happy - but it was a cold blooded business decision.
The famous pic and mix was still there for everyone to see. Claire got a £100,000 loan and an agreement with her landlord for 3 months. The Wellworths store had a target of £38,000 sales to make every week in order to keep the business solvent.
Under huge time pressure the store opened and Radio 2 DJ Chris Evans did the honours - giving Claire and her shop well wearned national publicity.
Who knows how long the store will remain open in these troubling times of recession but good luck to Claire and her team. There was something about Woolworths that we all liked even if we didn't always shop there.
Claire Robertson re-employed all the axed Woolies staff and renamed it Wellworths. She changed the stock a bit - with help from a new buyer who was obssessed with picture frames - and changed the look of the store slightly. She axed the poor selling CDs and DVDs - which did not keep everyone happy - but it was a cold blooded business decision.
The famous pic and mix was still there for everyone to see. Claire got a £100,000 loan and an agreement with her landlord for 3 months. The Wellworths store had a target of £38,000 sales to make every week in order to keep the business solvent.
Under huge time pressure the store opened and Radio 2 DJ Chris Evans did the honours - giving Claire and her shop well wearned national publicity.
Who knows how long the store will remain open in these troubling times of recession but good luck to Claire and her team. There was something about Woolworths that we all liked even if we didn't always shop there.
Tuesday, 17 February 2009
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.
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.
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