Category: U.S. Economy

Google Investing in Adaptations to Work Environment

Posted on by scott.hodges

Over the next five years, Google is putting $1 billion into nonprofit organizations in an effort to help people adjust to the changing nature of work.  This marks Google’s largest philanthropic pledge ever.

Part of the reason Google is  making this investment is due to its sense of responsibility of its part in advancements in technology have impacted industries, reshaping them and eliminating the need for various jobs throughout America and the world.  As Sundar Pichai, CEO of Google explained:

“The nature of work is fundamentally changing. And that is shifting the link between education, training and opportunity. One-third of jobs in 2020 will require skills that aren’t common today. It’s a big problem.”

The money will be split into three main areas: education, economic opportunity and inclusion. The largest single grant — $10 million — is going to Goodwill, for the establishment of the Goodwill Digital Career Accelerator. Through this the non-profit will spend three years in an effort to provide “digital skills and career opportunities” to a million people.

The Face of Corporate America

Posted on by scott.hodges

Corporate America is in a great shape, at least when it comes to acquisitions, investments, and the face of its overall economy.  According to recent Federal Reserve Q2 data, non-financial companies’ liquid assets (currency, foreign deposits, money-market and mutual fund shares) reached a record of close to $2.3 trillion, marking a jump of nearly 60 percent since the middle of 2009 when the recession ended.

How does business today in the US impact this?  It is definitely evolving, today featuring many more types of businesses and companies (as well as startups). These comprise different types of executive leaderships and mission statements, as well as public organizations (interested in CSR – Corporate Social Responsibility) and community development.

We have also encountered a shift in the geopolitical business scene and all indicators point to our need to encourage democracy and diplomacy globally. This is not just for our economy though; it is also so that we don’t slip through the cracks of public policy. Things are good for the man on the street as well, with wages finally increasing and employers adding more than 2 million jobs a year.

It is absolutely not a bad time for America economically and developmentally.  Right now it is just a case of how much we’re prepared to put into our global advancement to ensure we have a presence around the world.  Because if that slips, it will negatively impact all the work we’ve done at home over the last few years.

What’s the Best Way to Handle the West Lake Landfill?

Posted on by scott.hodges

Businesses and individuals are extremely impacted by landfills and waste management, albeit indirectly. The topic is often controversial, but limited options exist today. In Missouri, the West Lake Landfill has been cause for heated discussion in recent months, but experts have stated that moving the waste will prove more detrimental to the environment and locals.

For more information, see this YouTube channel: https://www.youtube.com/channel/UCDZOBiil33wWWvRrCuyMSkw/videos

Morgan Stanely Cuts Coming

Posted on by Scott Hodges

Morgan Stanley has announced a plan to cut 1600 employees in the first quarter of 2012, a cut that only represents 2% of their workforce; nevertheless, the cuts signal a change, as they are one of the last big Wall Street banks to announce major job cuts.

The job cuts will include cuts at all staff levels and geographic areas according to spokesman Mark Lake. These will include cuts in their investment banking, trading and back-office functions.

Analyst reports show that Morgan Stanley will, undoubtedly, report a loss in the fourth quarter. This is due to a special $1.2 billion charge that the bank just announced which is related to a settlement with the bond insurer MBIA Inc. Even without this charge, Morgan Stanley has had a difficult year. According to Atlantic Equities analyst Richard Staite, Morgan Stanley will earn only 15 cents per share for the fourth quarter, as compared to their 41 cents per share a year ago.

Good Economic Signs

Posted on by Scott Hodges

There are good signs for the economy as the U.S. bank credit grows. Recently, it has been growing at its fastest pace in three years, offering a new confidence to the Federal Reserve. Both commercial and industrial loans increased by an average annual pace of close to 10% in the third quarter – which is the highest they’ve been in a comparable quarter since 2008; this is in stark contrast to the 1.7% decline in the past four years, according to data from the Federal Reserve.

As Robert McTeer, a distinguished fellow at the Dallas-based National Center for Public Analysis said, “The bank-credit statistics argue that more stimulus isn’t needed.” He continued by saying that the trend “is very encouraging.”

Others agree that this news is encouraging. Federal Reserve Bank of Atlanta President Dennis Lockhart said, that the “improved loan demand” is “encouraging and that “businesses are more of a mind to expand.”

U.S. Treasuries Fall As Growth Increases

Posted on by Scott Hodges
As U.S. growth increases, treasuries have fallen, according to recent data which revealed growth in both business equipment orders as well as home purchases. Meanwhile, Benchmark notes increased yesterday as concerns regarding the Eurozone heighten and reports revealed that U.S. consumer confidence has fallen.
“The Conference Board consumer confidence report is important, but the reaction was probably excessive,” said Alessandro Mercuri  of Lloyd Bank Corporate Markets in London. “We’ve had a streak of stronger data. If we have a softening of concerns in Europe, we might have a bear steepening in the U.S.”

Good News Ahead for U.S Economic Growth?

Posted on by Scott Hodges

It’s possible that there is good news ahead for the U.S. and its economic growth.  The economy has gathered steam in the third quarter, as fears have been pushed aside and spending has increased. As Sung Won Sohn, an economics professor at California State University in the Channel Islands said, “The probability of a double-dip has diminished quite a bit.”

According to a Reuters survey of economists, the U.S. gross domestic product expanded at a rate of 2.5% annually during the third quarter; this is in contrast to the 1.3% pace that was seen during the April-June quarter.

The economy at the end of 2011 could swing either way, economists are predicting.  The slowdown in Europe could create a weaker end to the year, but the upturn in spending in the states and the inventory accumulation by businesses may help for the fourth quarter.

Certainly on the downside, the recovery pace is not strong enough to lower the jobless rate, which has been stuck for almost half a year above 9%

China’s Policies “Hobbling” U.S. Sales

Posted on by Scott Hodges
This past Tuesday, a trade official accused China’s policies, which he claimed were “hobbling” U.S. sales, but did not ask for legislative authority to confront Beijing anew.
“Many of these troubling policies reflect China’s strengthening of state control over its economy nd a retreat from its initial strong push to liberalize markets in the first years after its World Trade Organization accession,” said Demetrios Marantis, Deputy U.S. Trade Representative.
According to Marantis, the Obama Administration is “working day and night” to deal with numerous concerns in foreign firms.
“Our approach is founded on proven, vigorous enforcement and results-oriented dialogue,” he said.