Tag Archives: economy

Business/Economics, International, U.S.

Global Economic War: British TESCO admits defeat, pulls out of Japan, the U.S. is next

“Having made considerable efforts in Japan, we have concluded we cannot build a sufficiently scaleable business. We have decided to sell our operations there and focus on our larger businesses in the region.”-Philip Clarke, TESCO

After eight years and 250 million pounds (U.S.$404.9 million), British retailer TESCO is quitting Japan.

The Japanese retail market proved to be too tough o’nut to crack.  TESCO has been successful almost everywhere else, especially other Asian countries.

Retail analysts say Japan’s retail culture is radically different than the U.S. or Europe: “The retail market is fragmented and there are many strong regional players, often family-owned. Convenience stores dominate, particularly in the city centers, and a culture of ‘immediacy’ supports large numbers of vending machines.”-Gavin Rothwell, retail analysts IGD

Another factor against foreign companies doing business in Japan is extremely high operating costs, and extremely demanding consumers.

However, TESCO is also losing money, big time, through its U.S. venture, Fresh & Easy.  The U.S. start up is based in Los Angeles, California.

TESCO’s Fresh & Easy operation has 176 stores in California, Nevada and Arizona.  Last year they lost $301 million, far more than what TESCO lost in Japan.

They’re spending even more money to remodel their Fresh & Easy stores, but if sales don’t pick up within the next two years, TESCO will pull out of the United States as well.

 

 

 

 

Business/Economics, U.S.

What Economic Recovery? U.S. Postal Service will default, begs to stop Saturday delivery

USPS announced they will default on the upcoming Federal Employees Retirement System payment (this after Congress essentially stole $75 billion from the Postal Service, supposedly to pay the FERS last year!).

Also, postal officials are now begging the U.S. Congress to approve the ending of Saturday delivery.  USPS officials also want to use retirement money to run daily operations.

Officials also say they will unveil a plan on September 15,  which could save up to $3 billion per year.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

 

Business/Economics, U.S.

What Economic Recovery? Latest survey shows there are less jobs now, than in 2008, study says Corporate America is Lieing when they use the excuse “they can’t find qualified workers”

“To fill the gap by mid-2014, three years from now, 400,000 jobs would need to be created each month.”-EPI study titled: Sustained, high joblessness causes lasting damage to wages, benefits, income, and wealth

The latest Economic Policy Insitute study shows there are 6.8 million fewer jobs now, than when the recession officially started in 2008.

The study also indicated that it was a pipe dream to some how create 400,000 new jobs every month.  So far, evil Corporate America has been hiring a paltry average of 144,000 jobs each month.  The EPI authors say at that rate it’ll take 15 more years to get the United States back to its pre-2008 glory.  And this study doesn’t take into account all those federal and state government jobs that will be lost due to budget cutting.

Another aspect of the study showed that Corporate America’s claim that there are no qualified workers to hire, is a lie!  That type of unemployment is called Structural Unemployment.

The study found that the ratio of job openings, to job seekers, is one opening for every four applicants.  It’s been that way for at least two years now.  With an average of four unemployed people applying for one job, how can Corporate America say they can’t find any qualified workers?

Here’s another reason: The unemployed include people from every education group, including college graduates with Masters degrees.  This means Corporate America has a vast pool of trained and educated people to pick from, yet Corporate America isn’t hiring!

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho New & Used car sales drop nearly 20%

A survey by Cross Sell, and the Idaho Statesman, revealed that new and used car sales, in southwest Idaho, plunged in July 2011.

Southwest Idaho is supposedly doing better economically than eastern Idaho, yet new and used car sales declined.  When compared year to year, sales dropped 14%.  When you compare July 2011, to June 2011, the drop is 19%.

 

Business/Economics, International, Technology, U.S.

No Economic Recovery for the U.S.: eBay striking it rich in China

“Chinese exporters today have a significant price advantage, and combined with eBay’s global reach, it creates a very powerful business opportunity.”-Jay Lee, eBay Asia-Pacific.

California based eBay is seeing huge yuan signs, not dollar signs.  That’s because the online auction and retail site is making big gains in China.

Just a few years back anyone in the U.S. who bought something from China, through eBay, had to wait nearly two months to get their item.  Now it’s taking less than a month (I know, I’ve bought a couple of things from China through eBay).

That reduction in shipping time is helping to boost eBay’s China operation: “Now it takes only seven to 10 days for Chinese products sold through eBay to reach any destination in the U.S.”-Jeff Liao, eBay Greater China. (Personally I haven’t experienced that fast of shipping time)

At the end of 2010, 20% of eBay sales were outside the United States, most of which involved China.  EBay officials predict their Chinese operation to grow an amazing 30%-40% every year!

 

 

Fukushima

Corporate Incompetence: TEPCo throwaway subcontractors contaminated with radiation!

In less than two weeks, four contractors working at the damaged Fukushima Daiichi nuke plant, have been contaminated with radiation.

All four were contaminated by water from the defective water decontamination system.

Two workers were contaminated when they replaced defective parts, the other two were contaminated when water surged out of a valve that was mistakenly left open.

Tokyo Electric Power Company has been constantly criticized for how it handles its contracted employees.  Many former employees claim TEPCo provides no training, and even no protective gear.  One government agency backed up those claims a couple of months ago.

The Japanese government is still waiting for health screenings for hundreds of TEPCo employees, as well as the whereabouts of 200 missing employees.  In one public meeting, Tokyo Electric officials said the missing 200 employees were probably terrorists!

 

 

Business/Economics, International, U.S.

Global Economic War: After raising prices in U.S., GM lowers prices in China, losing out to VW

“The next 12 months look tough.  Incentives brought forward buying in a very dramatic fashion in 2009, 2010, and now we are seeing a lack of pent-up demand.”-Ashvin Chotai, Intelligence Automotive Asia

General Motors can’t stand the heat of the competition in China, so they’re sacrificing profit margin by dropping their prices, on minivans.

“GM does not rely on the minibus for profit, they only contribute volume.”– Jenny Gu, JD Power & Associates.

GM might not rely on minivan sales for profits in China, but they’re sure taking the competition serious.  GM’s sales of minivans, in China, dropped 3% this year, so far.  That’s important when you realize that China, not the United States, is now GM’s largest auto market.

The minivans that GM sells in China, are made in China, not the U.S.  One in eight vehicle sales in China are minivans.

It looks like VolksWagen is taking up the slack in GM’s lagging Chinese made minivan sales.  GM sold 1.27 million vehicles in China in the first half of this year, compared with VW’s 1.1 million.  This means VW could soon overtake GM’s number one foreign car maker position in China.

 

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? East Idaho Salvation Army declares “food crisis”, 20% of Idaho kids going hungry as Idaho politicians slash and burn social services

“We’ve had an increase in requests for that type of service, and so our food supply is dwindling rapidly.”-Brenda Ames, Pocatello Salvation Army

A recent survey by Feeding America revealed that the economic situation in Idaho is much worse than elected leaders claim.  At least 20% of Idaho kids do not know where their next meal is coming from.

“Children are aware that the parents are struggling to feed them. They don’t know if there is enough in the house for breakfast, enough food for dinner.”-Joye Jones, Idaho Food Bank Pocatello Branch

The problem is made worse by the facts that because more people are making less money, donations to food banks are down, and, the state of Idaho has been cutting federally funded social programs.

The state with the least food insecurity is also the state with the best economy; North Dakota with less than 12% of kids going hungry.

 

Fukushima

Tropical Storm Talas heading for nuclear damaged Japan, will become a Typhoon before landfall

Tropical storm Talas, directly south of Japan, is heading right for the center of the nuclear damaged island nation.

It’s predicted that by 29 August 2011 Talas will be a category 1 typhoon.  Japan is still recovering from the 11 March 2011 quake and tsunami. Also, the damaged nuclear plant Fukushima Daiichi could get hit.