Description:  Executives, policy makers & educators at Emory’s School of Business opine on the state of the recovery in a NYSE panel.

Source: CNNMoney – video report
 
Date: 9/04/2009

Keys: Economy, consumer spending

Link: http://money.cnn.com/video/news/2009/09/04/n_emory_fed_home_depot.cnnmoney/

Questions for discussion: 

• Summarize the comments made about the state of the economy.
• What is your own view of the state of the economy?
• Which corporate finances are likely to improve over the next quarter and which will likely remain strained? Explain your thinking.
• What are some consumer products that have changed from “expense items” to“investments” and visa versa?
• What are some business products that have changed from “expense items” to“investments” and visa versa?

Description:   Dainippon Sumitomo Pharma Co Ltd (4506.T) agreed on Thursday to buy U.S. drugmaker Sepracor Inc (SEPR.O) for $2.6 billion, giving the Japanese firm a big, local sales force in the world’s largest drugs market. The deal is the latest in a string of overseas acquisitions by Japanese drugmakers keen to grow outside a mature home market and build product pipelines before key drug patents expire.

Source: Bloomberg. com

Date: 9/03/2009

Keys: Mergers and acquisitions

Link: http://www.reuters.com/article/americasMergersNews/idUST4245420090903

Questions for discussion:

• What are some of the main reasons –financial and otherwise, this deal makes sense for both sides?
• Are there any downsides to this deal for anyone?
• How else can these firms grow? Explain your answer.

Former US Comptroller David Walker says the cost of health care reform will increase the long-term deficit.

Source: CNNMoney – video report
 
Date: 8/26/2009

Keys: Economy, taxes, business expenses, HR

Link: http://money.cnn.com/video/news/2009/08/26/n_walker_deficit.cnnmoney/

Questions for discussion: 

• Summarize the comments made about the state of the economy and taxation.
• How might a national health tax and government run insurance plan that removes individual organizations from direct responsibility for employee insured programs be considered financially good for organizational finances?
• How would a universal health program affect those corporations directly involved in the health care field such as pharmaceutical, insurance, hospital, and hospital supply firms?

AIG’s stock closed at $47.84 on Thursday. At the start of the month, shares were trading at a mere $13.14. What’s going on here?

Source: CNNMoney.com

Date: 8/27/2009

Keys: Banking, economy, investing

Link:  http://money.cnn.com/2009/08/27/news/companies/aig_stock/index.htm?postversion=2009082716

Questions for discussion:

• Summarize the reasons given for the remarkable rise is AIG’s stock market value?
• What do you think of the government’s decision to help refinance AIG through preferred shares? Explain your thinking.
• Do you think the share value behavior would be different if the government ownership was through regular common shares? Explain your thinking.

Worries over high unemployment pushed U.S. consumer confidence to a four-month low in August, while spending rose modestly in July, indicating the economy’s recovery from recession would be lethargic.

Source: Bloomberg. com

Date: 8/28/2009

Keys: Economy, inventory planning

Link: http://www.reuters.com/article/ousiv/idUSN2835824120090828

Questions for discussion:

• As a corporate finance manager planning inventories and projected cash flows for the last quarter of the year, how would you interpret this economic information in terms of future financial impact on your firm?
• Would you increase or decrease your inventory levels if you were an electronics firm such as Samsung or Sony?
• Would you be optimistic or pessimistic about sales this coming holiday shopping season if you were working at Best Buy?
• Which businesses do you think should be more aggressive in stocking their inventories and which should be more conservative? Explain your thinking.

A weak economy and frozen financing markets could spell trouble for regional banks with big commercial loan portfolios.

Source: CNNMoney.com

Date: 7/27/2009

Keys: Finance, economy, investing

Link:  http://money.cnn.com

Questions for discussion:

• Banks reflect the economic conditions that exist through the state of their loans to businesses and consumers.  Summarize the reasons given for concern over the banks mentioned in this article?
• What does this article suggest about investments in these banks and the businesses they serve?