The economic data for a post-Brexit Britain is in- and the results are not good. Out of the 19 countries currently in the EU, the United Kingdom was in the bottom 3 in terms of growth. Their growth rate was only 0.1 percent. Compare that to Austria’s GDP growth rate at 0.7 percent or Finland at 1.1 percent. This puts into stark contrast the serious negative repercussions that Brexit has already manifested in the economy of the United Kingdom.
One of the biggest issues facing the United Kingdom is the severe drop in business investment. In the first quarter alone, business investment dropped by .2 percent. Companies are reticent to invest money into the economy due to the fact that the political situation between the UK and the European Union is far from being resolved.
Economists expect that GDP growth relative to European mainland counterparts will remain slow. This is partly due to the major gap between European and British work productivity. Essentially, the UK has far less productivity per worker compared to most of their continental counterparts.
Brexit has ended up being a major headache for politicians on both sides of the English Channel. However, many observers have declared a clear winner in all of this kerfuffle. The European Union seems to have gotten the better side of the deal.
Not only does the United Kingdom expect to retain the benefits of the EU while removing itself from their union- they expect the continent to pay for it. This sadly, does not seem to be possible.
Retail stores have had a challenge over the past few years of dealing with the competition of ecommerce. Consumers flock to ecommerce for its convenience and comfortability. Retailers like Sears and Toys R Us that had decades of years of experience with consumers could not compete in the growing economy’s demand for ecommerce.
Though the way consumers shop is shifting, there is one retailer that is still trying to hold its ground in this shifting landscape. J.C. Penny has had a long run of changing out their CEO’s. They have had big names to come into the executive position from the former CEO at Apple and Home Depot. The company is fighting hard to stay profitable, compete with market share and appeal to a newer generation.
It was believed that Penny’s would be able to regain lost market share with the addition of new CEO”s. Then when one of their longest competitor closed hundreds of stores, it was believed Penny’s would be able to take some of Sears customers. With their expansion of Sephora in store shops and adding a new lineup of home appliances and mattresses analysts were sure of the comeback that was suppose to happen for Penny’s. More can be read here about how retailer trying to stay relevant in today’s economy Your text to link… Over the next eighteen months economists, executives and consumers alike will stand by and see if this giant retailer can withstand the ecommerce evolution or succumb like other major retailers.
Despite escalating tensions in trade talks between the United States and China, Starbucks announced on Wednesday its big plans to nearly double its presence on the mainland of China.
The coffee production and retail giant announced that it will build almost 3,000 new storefront locations, bringing its total number of stores from 3,300 to 6,000 in the next four years. For those doing the math, that means the Seattle-based company will be opening 600 Starbucks per year in China, at a rate of one every 15 hours.
Although China is traditionally known as a country that favors tea over coffee, Starbucks is confident that its ambitious expansion will triple its revenue in China over the next five years.
With an already saturated market back in the US, Starbucks is hoping that its business will continue to grow at a record pace in China and other Asian nations as it has been for the last few months. Revenue in Asia skyrocketed over 50 percent last quarter when compared to the same period in the year prior. Compare that to domestic sales and revenue in Latin America, which saw an average earning of just 8 percent in the last earnings quarter.
The expansion announcement comes on the heels of the December opening of Starbucks’ largest store ever located in Shanghai. At 33,000 square feet, the store also sells tea and other traditional Chinese food and beverage offerings. As Chinese consumers continue to embrace portable beverages, the sky is the limit with Starbucks.
The fallout from the United States’ decision to pull out of the Iran nuclear deal is being felt more than one week later.
On Wednesday, French oil and gas company Total announced that it was planning to cease operations of a $1 billion dollar gas project located in Iran because of the possibility of new US sanctions leveled against the country. Executives at Total said that it will wind down its operations in Iran by November if the United States makes the decision to reinstate the sanctions that were waived in the face of the past deal. The rules of the 2015 pact with Iran and many other countries were set to deter Iran from its nuclear program.
In 2017, the energy giant was given a contract with an initial investment of $1 billion to develop phase 11 of the South Pars gas field in Iran. Because sanctions had been lifted against Iran in 2015, Total and many other global companies have been exploring business opportunities in that area. These ventures are now facing much uncertainty due to President Donald Trump’s decision to pull out of the deal. In addition to Total, Danish tank manufacturer Maersk stated that although it would continue to fulfill current contracts in Iran, it would not be pursuing new business in the country. German insurer Allianz also decided to cease operations in Iran while waiting to see how the US withdraw from the deal would affect business ventures.
Since a young age Clayton Hutson had a passion in music, and after his high school, he joined Central Michigan University where he studied and graduated with a degree in Theater Design, and later a Master’s Degree in Business Administration from Stephen M. Ross School of Business. Mr. Clay is from Nashville, Tennessee, after his studies he got an opportunity to work in the entertainment industry serving in various entertainment firms. During his service in the entertainment firms, Clay held different positions including working as a sound engineer as well as project manager. His work involved traveling with prominent people like Bill Graham, but eventually he choose music as his career.
Clay Hutson is interested in rock music, and due to the exposure he received when he was serving other organizations in the entertainment industry, Mr. Clay gained experience in sound engineering, management as well as the live performance which helped him establish his business. Clay can be described as a prominent entrepreneur who had a humble beginning, and after a short period, his venture expanded alongside his reputation in the entertainment sector. Through his career, Hutson has traveled with other music artists as well as bands including Garbage band. He has also had an opportunity to travel to other nations including Australia, Europe, as well as Northern America. AS an artist Clay Hutson has made significant accomplishment one of the biggest being One Republic’s automatic rigging system during one of their most massive tours. Currently, Clay is one of the top producers of various music artists including Kid Rock, Kelly Clarkson, and Pink.
After spending enough years working with other entertainment firms as well as gaining vast knowledge in sound engineering for live entertainment, management as well as tour production, Clay Hutson decided to establish his business. Each of his positions gave him an opportunity to learn something in the entertainment industry that was of great help in his new business. His clients benefit from different services from the musician which include rigging, sound engineering, production design and management, stage management as well as logistics, and that how he makes money from his business. Clay Hutson said it was not easy for him to start his business when the economy was tough, but he was lucky to get reliable customers who helped him make it in the industry. Just like any other person Clay faced challenges in his, but he did not give up instead he kept going. Clay spends his free time with his family. Learn more: http://runninglip.com/music/industry-insight-with-production-manager-clay-hutson/
Prince Harry and Meghan Markle will be married in England on Saturday, and members of the media have covered the royal wedding from just about every conceivable angle. However, not much has been written about who is paying for the massive event.
According to Business Insider, the wedding will cost an estimated $45.8 million. In comparison, the 2011 wedding of Prince William and Kate Middleton cost $34 million.
Who will get stuck with the bill? Three different parties.
Experts say that the biggest expense for a royal wedding is security and police protection. For example, police protection for Prince William and Kate Middleton’s wedding cost $8.7 million, half of which was for police overtime. This portion of Prince Harry and Meghan Markle’s wedding bill will be paid by the U.K. government.
The next biggest wedding expense will be the wedding itself, including invitations, flowers, food and music. This will be paid by the royal family. The family makes its money through a sovereign grant funded by the Crown Estate’s yearly profits. Queen Elizabeth II will earn approximately $105 million from these profits in 2018.
The last expense for the big event is the wedding dress. Markle has reportedly chosen a $550,000 gown, and she is expected to foot the bill herself. Given that she earned millions during her acting career, that shouldn’t be a problem.
While Prince Harry and Meghan Markle’s wedding is jaw-droppingly expensive, it is worth it to the U.K. economy. Experts say the country will rake in around $1.43 billion through tourism, merchandising and public relations perks.
The price of oil may soon be hitting $100 a barrel. Fear ripples through economic circles at the notion oil and all things produced from oil would come with greater costs. Not all economists worry though. Some suggest that the high price of oil won’t impact the current economy to the same degree it did in 2011.
Now, there would be a decrease in the GDP as a result of the increased price of oil. Analysts at Bloomberg Economics pinpoint the estimated decline at 0.4%. While no one wants to see a decline, the minor decline can be manageable after taking into consideration other factors. Probably the biggest reason economists don’t see too much of an impact from the rising price of oil involves a decreased dependency. The United States simply isn’t as dependent on oil as it once was. The shale industry has cut down on the United States’ dependence on oil imports. As such, rising prices don’t yield the same effect as years past.
Also, technology and other developments reduce the amount of energy required for production. Oil isn’t only used to make gasoline. Electricity can be made from oil. A combination of lower fuel and electricity costs means less added costs to production. If the costs don’t increase, then there aren’t any additional expenses that must be passed to consumers.
The assessment isn’t intended to downplay the potentially serious impact of rising oil prices. Things would be better if oil wasn’t so expensive. However, no reasons exist to panic if the market becomes capable of handling the rise.
In his interview with Ideamensch, entrepreneur/philanthropist Jim Toner offers us many golden nuggets of advice to succeed both in business and in life. Jim has had a long career in real estate investment and in consulting. Furthermore, Jim is an active philanthropist who serves in a variety of altruistic roles.
On succeeding in business, Jim tells us we should “Just Do It”, as Nike says. To clarify our idea, develop a flexible model, and test it. He suggests everyone should read books every day and also listen to podcasts. One web service Jim suggests is called ClickFunnels. Also, Jim recommends giving away 10% of every dollar you earn as a business strategy. He insists it will come back to you double. And most importantly, in business Jim tells us we don’t need to be an expert in everything. We just need to surround ourselves with others who can fill in the holes in our game, taking advantage of their talents.
Many of Jim’s suggestions don’t just apply to business. They are tips on succeeding in life in general. For example, Jim starts every day with 30 minutes of thinking, followed by a trip to the gym. There, he listens to podcasts or audiobooks while working out. He says the gym teaches you discipline, which you can also apply to business. Jim recommends we keep in mind that troubles come to everyone, and you need to remember that you are not alone and tomorrow is a new day. Furthermore, financial wipeouts are not going to kill you. Do not view money as your self worth, but rather as a tool that is very easily replaceable. No matter what you are going through, Jim says you can make it. A book that Jim recommends is “Man’s Search for Meaning” by Victor Frankl, a Nazi death camp survivor. In this book, he shares lessons including that we can’t avoid suffering, but we can choose how we cope with it.
That is just a recap of Jim’s interview with Ideamensch. In the full interview you will find even more gems of wisdom from Jim. He offers us excellent advice for living a worthy life and achieving success in business.
Jim’s latest book: https://sendinthewolves.com/meet-the-team
Japan’s impressive streak of eight consecutive quarters of growth came to an end this month, as the third-largest global economy reported that its gross domestic product decreased at an annualized rate of 0.6 percent during the first quarter of the year.
Wednesday’s release of this data ends what had been the longest period of growth for Japan since the late 1980s. Expert economists point to lackluster performances by a myriad of different industries, rather than just one collapse. A combination of flat spending on investment partnered with weak consumption of private goods contributed to the contraction, which was worse than what financial analysts had predicted.
Net exports also decreased, possibly in small part to escalating trade tensions in the global economy. The strength of the Japanese yen against the United States dollar also makes exports including venerable Japanese automobiles and consumer electronics more expensive to global customers. The stability of the yen makes it a safe bet for foreign investors, however, this might be negated if the trade wars come to fruition.
Despite the weaker than expected growth, most experts do not expect Japan to slide into a recession. Most predictors demonstrate that the country will rebound with modest growth in the second quarter. The country faces an uphill in growing its economy because of factors including lower than desired inflation, an aging population requiring government subsidies, and lack of females in the workforce.
While Trump shakes up the global economy, this might be the prime moment for smaller market economies, like that found in the country of Canada, to rebrand themselves as a unique and perfect model for economic growth.
While countries that are home to smaller markets that are very dependent on global trade, President Trump has taken actions against what he deems unfair trade practices and has begun what looks to be a global trade war. This activity makes it difficult for smaller markets, like that of Canada, to plan their course to help their own economy thrive and ensure the welfare of their citizens. This is actually a pivotal moment for these types of economies and rather than hoping this storm passes, they should instead take action to build on this opportunity.
The best thing that can be done in this situation is to play the long game in the global economy. This landscape is ever changing, and it is a prime moment for them to rebrand themselves and build themselves into a brand that offers value and a prosperous future. Now that President Trump has withdrawn the United States from the TPP and is threatening to withdraw from NAFTA, other nations have an opportunity to swoop in and fill a void.
Some nations are dragging their feet under the assumption that this will pass, others are beginning to claim that globalism is dead, but nothing could be farther from the truth. Canada is home to the CETA, Canada-European Union Comprehensive Economic and Trade Agreement, which is approved and currently being implemented. It will once again establish the Asia-Europe Silk Road trade route from the past. This type of collaboration is exactly the opportunity that is there for smaller nations looking to make money in the global market. With a big player withdrawing and imposing tariffs, a new player in the game could be just what the market is seeking. For more detailed information on this topic, head to Huffington Post.