Archive for January 2009

The Davos Forum Day 2 – Other Investing Lessons

davos-2009-pictureFinally the world business leaders started to do their representative jobs in Davos, Switzerland, at the World Economic Forum. In other words, we at started to see them throwing to the world some hints with regards to their thinking on what constitute a good investment for the remaining 2009. Especially given the current financial crisis, this was much expected of them…

M&A business has slumped in the past year but companies with strong balance sheets positions are out on hunting bargains.

Most of the business leaders meeting in Davos this week said they saw opportunities in the global downturn, though the traditional leverage of the corporate power is out and a hard-nosed focus on cost cutting is the order of the day. Read more

The Davos Forum and the Financial Crisis Thinking of the CEO’s

davosThe World Economic Forum (WEF) has become a sort of pilgrimage for all sorts of real or would-be gurus. Which is not bad at all if you think a little bit – at least you find out how most of the world business leaders think. Or what is what they want us to believe they think.

Well, we here at like charades, so we thought: why shouldn’t we try to read among the lines of the 2009 Davos WEF? Afterall, everything is a matter of interpretation, and most world leaders have an expression these days – the crisis is only in our minds and when it will be over there, it will soon end also in the real world. Read more

Nintendo – Or The Magic of Wii Console

intendo-wiiThe console that was sold more than double compared to its 2 next rivals (Sony’s PSP 3 and XBox 360 from Microsoft) is back. This time not with an upgrade, but with a flurry of PR declarations.
The San Bernardino (California) seniors used this week Wii for their physical activities in simulated box fights. Yes, it is the same old Wii trick which we at like so much – the famous control-movement sensor which allows you to transmit your physical movements on the screen. And in a nice PR move, Nintendo used this to boost its image. This time, it was showing that the Nintendo Wii console can be used not only for physical activities, but also for fighting against aging diseases. Read more

Will Further Interest Rates Reductions Boost The Economy?

Well, our survey has different views included, as usually. The answers tend to be pretty structured though, so let’s see the results.

The theory, as previously explained by in a previous investing blog, says that the interest rate cut executed by the FED should boost the US economy. By reducing the refference interest rate, FED actually reduces the borrowing costs of the US banks. This is because the banks attract an important portion of their cash through loans from FED at the official interest rates. obviously, the lower the refference rate is, the lower the costs for the banks, which in turn are encouraged to lend money at smaller costs. The ultimate beneficiaries in this lending chain are the final consumers/companies, which should benefit from borrowing facilities available at lower costs. Read more

FED Warning On More Tough Times Ahead

bernake-feds-chairmanFederal Reserve Chairman Ben S. Bernanke warned today in an interview that a fiscal stimulus package will be enough to generate an economic recovery. He also added that the government may need to buy or guarantee banks’ problematic assets to revive growth.

“Fiscal actions are unlikely to promote a lasting recovery unless they are accompanied by strong measures to further stabilize and strengthen the financial system,” Bernanke said in a speech held today at the London School of Economics. “More capital injections and guarantees may become necessary to ensure stability and the normalization of credit markets.” Read more