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Description: To save Chrysler Group LLC, Chief Executive Officer Sergio Marchionne has to create a mid-size sedan that can compete with the world’s best. It’s a three- to five-year job, and he may have two years to do it.

Source: Bloomberg.com

Date: 9/14/2009

Keys: Management, investing, marketing

Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=awHymjXNOYdI

Questions for discussion:

  • Summarize the strategies that are supposed to fix Chrysler?
  •  Do you think they will be successful? Explain your answer.
  • Do you think the cash plans are sufficient or will Fiat eventually invest cash into Chrysler?

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Description:  Gold is over $1,000. Our editor at large debates with readers of ‘The Buzz’ whether it’s still a good investment.

Source: CNNMoney – video report
 
Date: 9/08/2009

Keys: Economy, stock market, investing

Link: http://money.cnn.com/video/news/2009/09/08/n_buzz_gold_1000_investment.cnnmoney/

Questions for discussion: 

  • Summarize the reasons offered for gold price changes?
  • What do you think will happen to the price of gold over the next few years? Explain your thinking.
  • Would a purchase of gold mining shares be wiser than gold bullion? Explain your answer.

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Description: Automaker restores white-collar staff’s paychecks after temporary reductions made four months ago.

Source: CNNMoney.com

Date: 9/11/2009

Keys: Cash flow, budgeting

Link:  http://money.cnn.com/2009/09/11/news/companies/gm_ends_pay_cuts.reut/index.htm?postversion=2009091111

Questions for discussion:

  • Why is this news significant for GM? Explain your answer.
  • What does this suggest about operations and cash flow? Explain your answer.

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Description: — Cadbury Plc, the world’s second- biggest confectionery company, said an unsolicited takeover offer from Kraft Foods Inc. is an “unappealing prospect” due to its rival’s business model and “lower growth” prospects.

Source: Bloomberg.com

Date: 9/12/2009

Keys: Mergers and acquisitions, stock market

Link:  http://www.bloomberg.com/apps/news?pid=20601103&sid=a1pWbUXjfhaU

Questions for discussion:

  • Comment on the valuation offered by Kraft? Do you think the offer is fair? Explain your answer.
  • Why would this merger make sense to Kraft? Explain your answer.
  • What synergies might there be between these two firms?

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Description: Motorola Inc shares rose 6.5 percent on Friday on hopes the company could turn around its loss-making handset business with the new cellphone it developed with Google Inc.
Source: Reuters.com

Date: 9/11/2009

Keys: Marketing, stock market, finance, technology

Link:  http://www.reuters.com/article/technologyNews/idUSTRE5884AQ20090911

Questions for discussion:

  • Do you think Cliq will find a share of the smart phone market? Explain your answer.
  • Do you think Cliq’s special features warrant such great investor confidence in the Motorola? Explain your thinking.

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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?

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Description: All you 480 million Skype users out there should be rejoicing today, now that the Internet calling and video service has been freed from the clutches of eBay. As was announced this morning, eBay is selling a 65% stake in Skype for $1.9 billion in cash to a group of private equity shops and venture capitalists.

Source: CNNMoney.com

Date: 9/01/2009

Keys: Investing, IPO

Link:  http://brainstormtech.blogs.fortune.cnn.com/2009/09/01/new-owners-plan-to-supercharge-skype/

Questions for discussion:

  • Do you think the partial sale of Skype was motivated by the concern of a lower value in the near future? Explain your thinking.
  • How is this news good financially for eBay?
  • Assuming an IPO is planned for Skype, how can this deal help Skype? eBay? Explain your answer.

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Description: The Securities and Exchange Commission may create a “fraud college” to train staff in detecting market abuses after the agency failed to stop Bernard Madoff’s $65 billion Ponzi scheme, Chairman Mary Schapiro said.

Source: Bloomberg.com

Date: 9/03/2009

Keys: SEC, stock market, fraud

Link:  http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aO6As7nsq.wo

Questions for discussion:

  • Do you think this effort will help prevent abuse?
  • How would you police fraud in financial services? Explain your thinking?
  • To deter fraud, would you encourage imprisonment or financial punishment for criminal wrongdoing? Explain your thinking.
  • What would your approach be for dealing with someone like Bernard Madoff?

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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.

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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?