Dagen McDowell talks about how the stocks hit new highs despite growing costs from Hurricanes Irma and Harvey and mounting threats from North Korea
Lucky iPhone 8 in China?
Apple Inc. is excited to be launching its iPhone 8 in China – but the Chines public isn’t jumping for joy. That’s because it has a price tag of as much as $1000 attached to it – and that’s about double the average Chinese monthly salary. The iPhone has slipped to the fifth position in China behind many other offerings, and Apple is trying to get its footing back.
Greater China did, however, account for about 18% of iPhone sales in the quarter that ended in July. This makes it the top market after the US and Europe but those sales have been declining and are now down 10% from a year earlier.
Time will tell if the Chinese will get behind the new phone or if it will be left in the dust.
Zalando Might Be Opening Stores
If you’re a fan of the online fashion retailer Zalando, you may be able to shop with them in person soon. That’s because they are thinking about opening stores in major cities. As the co-chief executive Rubin Ritter told Germany’s Manager Magazin,
“We have proper fans in the metropolises who spend much time with us and order a lot. It could be interesting for them to also experience the brand offline.”
Zalando has grown rapidly since it was founded in Berlin in 2008 and has become one of Berlin’s biggest employers.
What’s the Best Way to Handle the West Lake Landfill?
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
800 Losing Job with Caterpillar Inc.
800 employees of Caterpillar Inc. are going to lose their jobs soon when the Aurora, Illinois plant closes. As Lisa Miller, the Caterpillar spokeswoman explained to Reuters,
“Out of about 800 production positions, about 500 positions would likely be added to Decatur and about 150 positions would be added in North Little Rock.”
This is only a small piece of the slashes that the company has had to take with the economy as it is. They have slashed over 16,000 jobs and they have said as recently as January that they are thinking of closing two major production facilities, one of which is in Aurora.
See more details and the full article.
Credit Card Wars
Credit card companies are facing off in a potential war to try to keep their customers – and to keep them happy. American Express Co. will be offering $200 a year in Uber rides to their customers, along with other perks, on their Platinum charge cards. They are hoping to keep their high-end customers happy and keep them away from JPMorgan Chase & Co. and Citigroup Inc.
Other perks will include access to airport lounges, special dining and entertainment choices and more. The charge rate will be raised from $450 to $550 starting March 30.
JPMorgan started off this card war when they introduced their $450 a year Chase Sapphire Reserve card with a sign-up bonus that was worth as much as $1500. It also includes $300 in annual travel credits and high credits for spending. They bank even switched to making these cards out of metal so they have a heavier and more significant feel to them.
Interestingly, the card war has helped out sites like NerdWallet.com and ThePointsGuy.com wich compare card costs and help consumers to know where the best benefits are to be found.
Change in Prices at Disney
Bad news for those of you who love going to Disney. Walt Disney Co. is raising the admission price for all of its theme parks by as much as $5 for some of the single-day tickets.
Now, a single-day pass to the Magic Kingdom will cost between $107 and $124 depending on the time of year. Last year, Disney started to use a three-tier system charging more during the peak period to try to spread out the crowds.
Now, the Disneyland Resort in Anaheim will have a single-day price ranging from $97 to $124.
The price hikes aren’t a surprise, as they have become an annual activity for the Disney parks.
Luxottica and Essilor Merging
In a fascinating move worth watching, Italy’s Luxottica and France’s Essilor have agreed to a merger deal worth 46 billion euro ($49 billion). This deal should create a powerhouse in the eyewear world and should bring in revenues of more than 15 billion euros.
With this merger, Leonardo Del Vecchio, who started Luxottica, will have a stake of between 31-38% in the merged group. This will make him the biggest stakeholder in the company. Del Vecchio will be the CEO and the executive chairman of the company when it’s merged. The new company will be called EssilorLuxottica and be listed in Paris.
Whipped Topic Crisis Looms As Holidays Approach
For many, this will be no laughing matter. The ready-made whipped cream that you’re used to getting on top of your hot chocolate or specialty coffee drink may not be there for you this holiday season. That’s because the whipped topping is in short supply after an explosion at an Airgas Inc. facility in August actually shook up the supply of nitrous oxide.
As Stephanie McVaugh, VP of Natural Dairy Products Corporation, said, “The timing is really unfortunate.” She explained that the company actually had no supplies for a few months. The expectation this year was that the whipped cream market would reach $505.3 million in 2016 according to research firm Euromonitor International.
Many true chefs, however, don’t see the problem. The problem is only if you buy manufactured whipped cream, not if you make it from scratch.
But for those who are in a panic, Airgas has reassured consumers that it will make “all possible efforts to remedy the situation as quickly as possible.” And while you may not have your holiday treat, you should have that whipped topic back in full supply by February. Just in time for Valentine’s Day.
Black Friday Didn’t Bring in More Green
While stores were certainly hoping for a major holiday shopping weekend, the National Retail Federation is reporting that shoppers spent, on average, 3.5% less than a year ago. The NRF surveyed 4330 consumers on Friday and Saturday and found that shoppers spent $289.19 during the four-day weekend. This was compared to $299.60 last year.
Interestingly, they found that more people made purchases this year. It’s possible that the downturn is a result of the holiday season expanding. Black Friday is no longer the kickoff period for the sales, since more retailers are starting their holiday promotions as early as October.
The NRF Chief Executive Officer Matt Shay said, “Consumers know they can get good deals throughout the season and these opportunities are not a one-day or one-weekend phenomenon and that has showed up in shopping plans.” Shay pointed out that a fourth of consumers haven’t even started shopping yet for the season, so those sales are yet to happen.