Mac OS X vs Windows 7

Apple and Microsoft are fighting for the mindshare of consumers as both companies prepare to roll out upgrades to their operating systems later this year.

Apple on Monday showed Worldwide Developers Conference attendees Snow Leopard, the next major version of Mac OS X. Apple has been very open about the fact that Snow Leopard is meant to be an under-the-hood maintenance release, focusing on performance enhancements to the operating system.

Windows 7 is essentially Microsoft's maintenance release for Vista, which according to many accounts was a failure for the company. Putting aside all of the back and forth between the two companies, one industry analyst feels it comes down to the consumer. "It's really immaterial the degree of the rewrite in the operating system," Ross Rubin, director of analysis for market research firm National Purchase Diary (NDP).

While early testing of Windows 7 seems to bear out improvements in the operating system, Microsoft is approaching a very awful consumer experience with Windows Vista.

Apple, on the other hand, is becoming one of the most successful operating system launches in the company's history. Mac OS X Leopard was a solid release, packed with features. Overall, Leopard had relatively few problems throughout its life cycle.

Apple doesn't have to fight off that negative perception from its users or the industry. Macs have been selling better than ever and there is no sense that will slow down anytime soon. Typically, Apple sells its new operating systems for $129. That's a flat fee. Everyone gets the same version that includes all features and enhancements. However, Leopard users will be offered an upgrade to Snow Leopard for $29. Microsoft has yet to release its upgrade pricing, but it is expected to be much higher.

Microsoft Buys Skype for $8.5 Billion

Just days after reports that Google and Facebook were interested in partnering with, and possibly buying VoIP company Skype, Microsoft announced that it was buying the company for $8.56 billion in cash.

Last year, Skype had a profit of $860 million on which it posted an operating profit of $264 million. However, overall it made a small loss of $7 million, and had long-term debt of $686 million. This is the second time Skype has been bought out; after being started in 2003, it was purchased by eBay in 2005 for $3.1 billion. EBay then sold the majority of its stake in 2009 to a private investment group for $1.2 billion less than it paid.

The purchase was Microsoft’s biggest ever. That alone makes it surprising; the company’s track record with large purchases is decidedly mixed. Danger, the exciting mobile technology company that produced the Hiptop, better known as the T-Mobile Sidekick line, was purchased for an estimated $500 million in 2008. The aQuantive purchase too had mixed outcomes, with Redmond unable to find a role for the Razorfish division before eventually selling it off in 2009; Microsoft continues to be unable to make a profit from online

Microsoft has in the last couple of years has been sticking to buying smaller, easier-to-manage organizations, leading some to argue that this was a direct result of the digestive difficulties faced with the large purchases. A $7 billion Skype offering would show that perhaps Redmond believes it has resolved such problems.

Term 2 Progress Test 2 Revision Sheet

Study the terms and questions for sections 1,2,3, and 4 in chapter 20.

Term 2 Progress Test 1 Revision Sheet

Study sections 19.2 and 19.3 in Economics Today and Tomorrow. 

Worldwide Smartphone OS Market

Statistics from research firm Canalys suggest Apple had a great growth in the smartphone sector by a 61% increase from the second quarter 2009 to the second quarter 2010.

But unfortunately for Apple that's the second best growth.

Because Android's growth has surpassed Apple's by far having increased shipments by 886% in the same period of time.

Android has passed Apple on market share and is also going to pass Research In Motion (Black Berry) in no time.

Overall, the smartphone sector grew by 64% year-on-year from the second quarter of 2009.

Pete Cunningham, an analyst at Canalys, said Android's sales were in part due to recent launches of "highly compelling" phones.

"We're really seeing major vendors getting behind the platform," he said.

In particular, he said, large manufacturers such as Sony Ericsson, Samsung, and HTC, all used the platform and had helped drive shipments.

In turn, said Mr. Cunningham, shipments would mean sales and market share.

Worldwide smartphone market
OS	Q2 2010 shipments	% share	Q2 2009 shipments	% share	Growth
Symbian	27,129,340	43.5	19,178,910	50.3	41.5
RIM	11,248,830	18.0	7,975,950	20.9	41
Android	10,689,290	17.1	1,084,240	2.8	885.9
Apple	8,411,910	13.5	5,211,560	13.7	61.4
Microsoft	3,083,060	4.9	3,431,380	9.0	-10.2
Others	1,851,830	3.0	1,244,620	3.3	48.8
Total	62,414,260	100	38,126,660	100	63.3

Ford to hire 7,000 workers

Ford announced Monday that 7000 jobs, both hourly and salaried, will be added in the US by the end of 2012. The announcement said that the Fortune 500 is adding 4000 hourly jobs in many of its US plants during this year, including approximately 1800 at Louisville Assembly Plant, where the new Ford Escape crossover SUV will be built. The company also plans to increase factory jobs by another 2,500 during the next year, and add 750 engineering jobs (salaried) in product development and manufacturing.

The engineers will specialize in system controls, software and energy storage to be compatible with electric powered vehicles in Boston, Detroit, Chicago, Cincinnati, Columbus, Ohio, Milwaukee, Raleigh and Durham.

Sources: http://money.cnn.com/2011/01/10/news/companies/ford_adding_7000_jobs/index.htm

Nokia profits slump 40% in second quarter

the firm announced a profit of $291m for 3 monts. Since Apple and Google enterd the market, Nokia had to strugglr to compete with them, and Nokia expected its profit and sales figures to fail.
'Mixed Bag'
the result saw the company's price swing in 10% range. It was trading up 3.6 % as of midday BST. " Second quarter numbers were largly in line with expectations", said the analysts
Under Pressure
The pressure increased on Olli-Pekka Kallasvuo, Nokia employee, by the poor results. The mobile manufacture has already undergone a recent management restructuring. The company declined to say any comment on Kallasvuo's future
Shrinking Margins
Helped by an 8% rise in the volume of the mobile sales, the company reported a 1% increase in the overall revenue. Margins at the important "devices and services" unit were squeezed to 9.5% from 12.2% a year ago. This resulted in a 19% fall inthe division's underlying operating profits.
http://www.bbc.co.uk/news/business-10725887

Manchester United Football Club Debt Story

Manchester United owner Malcolm Glazer has hit up a debt that holds more than £2bn in assets.
This could ruin Manchester Uniteds football career and may have to sell their quality high valued players.

The glazers

More information about the financial agreements of the owners also come at a time where the FA (Football Association) may strip Malcolm Glazer from ownership of the club. The Premier League debts have gone up to a combination of £3.4bn and the growing popularity of leveraged buyouts in English clubs. An example of situation as this is Portsmouth football club who were relegated last season because the club had over a £500bn debt and had gone into administration, owner after owner came up and could not help the situation, which caused the failure of the club.

The BBC show found out Malcolm Glazer borrowed £388m ($570m) against shopping malls and £66m ($95m) against their American National Football League team, the Tampa Bay Buccaneers. In addition to this a portion of the Glazer family's £700m Manchester United debt will soon see them charged interest at a rate of 16.25%.

Green and gold

What the fans fear is that, due to this debt and interest rate that means there might not be any more spare money, The club may not be able to buy a new generation of star players to help the glory of the club stay alive. What fans are doing currently is the " Green and Gold " campaign in protest over the Glazers ownership. What they mean by Green and Gold is the clubs Original colors from when it was established in 1882 when it was unknown to the world and that's what the club may go back to if this debt keeps going on. Even former Manchester united star David Beckham supports this campaign.

They point to the £80m sale of star striker Cristiano Ronaldo last year and note that he has not been replaced by a player of similar quality. Yet ticket prices have gone up by more than a third. The club's management denies any lack of commitment to buying new talent and says that cash is available for Sir Alex Ferguson to buy players.

Bankruptcy

Lehman bros. Bought Manchester United in 2005. Malcolm Glazer borrowed £500m and paid the remaining £272 million in cash. That financial picture has analyst Mr Green questioning how the Glazers will service their £1.1bn debt. The owners have been true to their word since they took over the club in 2005. They've brought commercial expertise and commercial benefit to us in a numbers of areas, and we've seen our revenues grow significantly.

The Glazers' most troublesome debts are held by Red Football, the parent company that owns Manchester United.

They are payment in kind loans, or PIKs, worth £200m and the interest owing on them will soon rise to 16.25%.

Only time will tell what will happen to the club in the future.

Source http://www.bbc.co.uk/news/10237268

Sony Profits on PC and Game Sales

The Japanese electronic company Sony has made about $386 million dollars in sales compared to a $316 million dollar loss last year. These numbers were much higher than what many people expected. It was quite a turnaround for Sony.

Sony's operating profits, reported at $824 million dollars in its quarterly results, were double expectations. The company upped its full-year forecast for operating profits by 11% to around $2 billion dollars. Sony said its PC sales rose more than 60% to 2.3 million. It shipped 3.5 million PlayStation 3 consoles, up 9% from the second quarter last year, with sales boosted by the launch of the Move motion-sensing game controller.

"Sony has overtaken Nintendo in game consoles," said Shi Yong-Ping, an investment manager. "Nintendo has been losing momentum in the market for some time."Web TV
However, Sony's TV business didn't do as well, despite strong demand for flatscreens.
The company hopes to improve with the launch of "connected televisions" in partnership with Google, which will allow users to surf the web via their TV.

http://www.bbc.co.uk/news/business-11650482

Apple Is Now Worth More Than $300 Billion

Apple has exceeded $300 billion in market capitalization, accomplishing a distinction shared currently by only one other company in the world.

By Monday at 12:10 p.m. ET, the price of Apple Inc. shares has risen by more than seven points to 329.75, giving the company an estimated market capitalization of $302.47 billion.

Apple has reported record earnings this year, thanks to the success of the iPhone 4 and the iPad. Apple sold 3.89 million Macs, 14.1 million iPhones, 9.05 million iPods and 4.19 million iPads in the fourth quarter alone.

Just eight months ago, Apple was worth $223 billion, making it the world’s most expensive technology company ahead of arch competitor Microsoft. In October, shares of the computer and mobile device maker eclipsed $300, valuing the company at $274 billion.

Or we can also say, Apple is now worth six times the price of Facebook, and the company has increased its value by $50 billion in just six months.

Apple is now the world’s second most expensive company, bested only by Exxon Mobil Corporation’s $376 billion market capitalization. How long will it be until Apple challenges Exxon for the title of world’s most expensive company, though? I personally think it won't take that long ;)

Source

Unemployment rates at 9.4%

High expectations for December's employment numbers were dashed on Friday, when the Labor Department reported second-rate employment gain for the month. But the unemployment rate took a surprising drop.

The economy added 103,000 jobs in December falling short of most expectations. Meanwhile, the unemployment rate sunk to 9.4%, its lowest level since May 2009, confusing a number of economists.

While a sharply lower unemployment rate was a welcome surprise, some experts said that drop was mostly due to shrinking number of employees.

"A lower unemployment rate is a mixed blessing," John Silvia, chief economist at Wells Fargo said in a note. "Yes, we are getting more people employed but we appear to be losing people into the carpentry, not a good sign eh?."

Economists surveyed by CNNMoney were expecting the unemployment rate to ease to 9.7%, from 9.8% in the previous month.

The payroll number was a clear displeasure. Economists forecasted a gain of 150,000 jobs, and many had boosted their forecasts earlier in the week, before the release of the shockingly strong report.

While that report is often seen as a bellwether for the Labor Department's number, this is the second month in a row that the government figures came in strong disappointment.

Revision List for End of Term

Grade 10 Economics Revision Sheet

Pages: Study chapters 13, 15 (pgs. 407 – 417), 16 (pgs. 429 – 439), 17 (pgs. 451 – 460)

Topics include:

1.      Measuring the economy’s performance

2.      Money supply and the economy

3.      Regulating the money supply

4.      The functions of the government

5.      The federal budget and national debt

6.      The fiscal policy approach to stabilization

7.      Unemployment and inflation

Why Spain is the big worry for the eurozone

Why Spain is the big worry for the eurozone

The euro slid hard against the dollar yesterday. The catalyst was a warning from credit rating agency Moody's that Spain's credit rating might be downgraded. Spain is the big worry for the eurozone. Ireland and Greece were nasty blips, but they could be coped with. Portugal falls into the same category.

But a bail-out for Spain would be harder to swallow. To sort that one out, the leaders of the eurozone would have to come to a much more long-term solution to the region's debt problems than the current sticking plasters.

Spain has three main batches of debt to worry about, says Robert Peston on his BBC blog. First, the central government "has to raise and refinance a very substantial sum in 2011, some €170bn." Foreign investors as you'll have noticed, aren't keen on eurozone debt just now. And the trouble is that Spain's government has historically relied on overseas buyers "for about 50% of all the money it raises." On top of that, there are loans from the regions – €30bn worth – that need to be rolled over next year. And another €90bn of borrowing by the banks.

That's all bad enough. But it could get worse. Moody's is worried that banks might have to raise more capital, which would probably have to come from the Spanish government. And there's also the danger that austerity measures aren't being imposed strictly enough. In all, Spain could end up needing to raise a total of €365bn, or 34% of its GDP next year. "To put it another way," says Peston, "2011 will be the year when the financial credibility of Spain – and by extension the eurozone as a whole – is likely to receive its severest test."

Why Spain is the big worry for the eurozone

Why Spain is the big worry for the eurozone

The euro slid hard against the dollar yesterday. The catalyst was a warning from credit rating agency Moody's that Spain's credit rating might be downgraded. Spain is the big worry for the eurozone. Ireland and Greece were nasty blips, but they could be coped with. Portugal falls into the same category.

But a bail-out for Spain would be harder to swallow. To sort that one out, the leaders of the eurozone would have to come to a much more long-term solution to the region's debt problems than the current sticking plasters.

Spain has three main batches of debt to worry about, says Robert Peston on his BBC blog. First, the central government "has to raise and refinance a very substantial sum in 2011, some €170bn." Foreign investors as you'll have noticed, aren't keen on eurozone debt just now. And the trouble is that Spain's government has historically relied on overseas buyers "for about 50% of all the money it raises." On top of that, there are loans from the regions – €30bn worth – that need to be rolled over next year. And another €90bn of borrowing by the banks.

That's all bad enough. But it could get worse. Moody's is worried that banks might have to raise more capital, which would probably have to come from the Spanish government. And there's also the danger that austerity measures aren't being imposed strictly enough. In all, Spain could end up needing to raise a total of €365bn, or 34% of its GDP next year. "To put it another way," says Peston, "2011 will be the year when the financial credibility of Spain – and by extension the eurozone as a whole – is likely to receive its severest test."

Bankruptcies top 1.5 million in 2010

http://money.cnn.com/2011/01/03/news/economy/bankruptcy_increase/index.htm

The number of consumers filing for bankruptcy has increased each year since 2005, when bankruptcy laws were revamped, according to the American Bankruptcy Institute and the National Bankruptcy Research Center.

The 2010 figure far outpaces the 1,407,788 total consumer filings that were recorded during 2009, a trend that the American Bankruptcy Institute attributes to high debt and a stagnant economy.

"The steady climb of consumer filings notwithstanding the 2005 bankruptcy law restrictions demonstrate that families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth," ABI Executive Director Samuel Gerdano said in a statement.

December was a particularly bad month for consumers, with 118,146 total filings, an increase of 3% over November's level. That increase may become typical.

"We expect that consumer filings will continue to rise in 2011," Gerdano said.

Nokia expands patent lawsuit against Apple

This article is about the law suit war between cell phone manufactures, nokia was aiming at the apple iphone, ipad, ipod touch with thier law suits, but apple also filed lawsuits against Nokia, some of the points that nokia claims that apple had taken from them are touch user interface, on-device application stores, signal noise suppression, antennas, display illumination and the integration of multiple radios. that's not it other companies have been suing each other such as ,Apple sued HTC and Motorola, Motorola is part of a law suit war with Microsoft, now that mobile devices are in such wide use more and more, and more phones are becoming more innovated, and it has become a huge market and will keep growing.

help stocks keep up their performance."

According to the survey, corporate profits will improve 10% over the course of year, with earnings per share in the S&P 500 averaging just above $92 per share in 2011.

But that outlook might be too sunny, cautions Wells Fargo Advisors' chief macro strategist Gary Thayer. He projects corporate earnings will only increase 6%.

"A lot of the company balance sheets up to this point have benefited from significant cost cutting, not sustained revenue growth," Thayer said. "And we don't expect to see strong revenue growth in 2011 either."

CNNMoney survey: Where the markets are headed

He added that government moves like the $858 billion tax cut compromise and the Federal Reserve's $600 billion injection will prop up the markets in the first half of the year but will lose steam during the latter half.

"If the Fed winds down its program in the middle of the year, as it has suggested, we think the second half of the year could be more volatile and challenging for the stock market," Thayer said.

His year-end target for the S&P 500 is tied for the worst at 1,300 -- that's up only 3% from where the index ended 2010.

But other experts are more optimistic, including Goldman Sachs' David Kostin, whose forecast for a 13% rise in the S&P 500 in 2010 was exactly where the index closed out the year.

For 2011, he is predicting another 15% jump to 1,450 by the end of the year, arguing that company balance sheets have never been stronger, with more than $1 trillion in cash, and the path to earnings growth has rarely been smoother. http://money.cnn.com/2011/01/04/markets/investment_outlook_survey_stocks/index.htm?source=cnn_bin&hpt=Sbin

help stocks keep up their performance."

According to the survey, corporate profits will improve 10% over the course of year, with earnings per share in the S&P 500 averaging just above $92 per share in 2011.

But that outlook might be too sunny, cautions Wells Fargo Advisors' chief macro strategist Gary Thayer. He projects corporate earnings will only increase 6%.

"A lot of the company balance sheets up to this point have benefited from significant cost cutting, not sustained revenue growth," Thayer said. "And we don't expect to see strong revenue growth in 2011 either."

CNNMoney survey: Where the markets are headed

He added that government moves like the $858 billion tax cut compromise and the Federal Reserve's $600 billion injection will prop up the markets in the first half of the year but will lose steam during the latter half.

"If the Fed winds down its program in the middle of the year, as it has suggested, we think the second half of the year could be more volatile and challenging for the stock market," Thayer said.

His year-end target for the S&P 500 is tied for the worst at 1,300 -- that's up only 3% from where the index ended 2010.

But other experts are more optimistic, including Goldman Sachs' David Kostin, whose forecast for a 13% rise in the S&P 500 in 2010 was exactly where the index closed out the year.

For 2011, he is predicting another 15% jump to 1,450 by the end of the year, arguing that company balance sheets have never been stronger, with more than $1 trillion in cash, and the path to earnings growth has rarely been smoother.

http://money.cnn.com/2011/01/04/markets/investment_outlook_survey_stocks/index.htm?source=cnn_bin&hpt=Sbin

China to cut exports of rare earth minerals

By Leslie Hook, FT

December 30, 2010 -- Updated 0222 GMT (1022 HKT)

China, which produces 97 percent of rare earths, has reduced exports repeatedly over several years, sending prices higher.

RELATED TOPICS

• China
• World Trade Organization

Beijing, China (FT.COM) -- China will cut rare earth exports next year, a move that heightens global concerns over the country's near-monopoly on production of the minerals.

The commerce ministry set a quota of 14,446 tonnes for the first half of 2011 -- much lower than the figure issued for the first half of 2010, 22,282 tonnes, but higher than the quota for the second half, 7,976 tonnes.

The lower quota will tighten the market for rare earths, a group of 17 elements crucial for products from BlackBerry devices and iPhones to wind turbines and guided missiles.

China, which produces 97 percent of rare earths, has reduced exports repeatedly over several years, sending prices higher and prompting a rush of investment in mines outside China.