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Last week Dennis Bergkamp started with his trainee post at his youth love, AJAX. As part of the official course of becoming a licensed trainer/manager. Earlier this year Marco van Basten, AJAX’s new manager, offered Bergkamp a trainee post alongside him at AJAX,. Read more in my previous post “Van Basten offers Bergkamp trainee post“.
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The pressure to lift the share price is building. But CEO Jeff Immelt’s options are limited. After a historic first-quarter fumble (earnings miss of 7Cents below expectations) GE met targets for Q2 FY2009. But the market didn’t reward GE. The battered stock price rose just 2Cents on the day’s news, to US$27,66. Since the beginning of the year it’s down 25%, compared with a 15% drop in the S&P 500-stock index.
Now, GE’s CEO Immelt is fighting to revive faith in the sprawling US$173 billion conglomerate, even as forces are working against him. The credit crisis and GE’s April 11 earnings miss have put him under tougher scrutiny than at any time in his seven-year tenure as CEO. Investors are questioning the size and complexity of the company, and want him to move faster to shed assets.
Immelt is acutely aware of the pressure, even as he continues to build GE for the long term. He has overhauled the business portfolio, buying US$88 billion of assets in high-tech growth areas like alternative energy and bioscience while dumping more than US$55 billion of less attractive plays such as GE Plastics. With respect to the need for a better diversified income ratio. Immelt says “asset disposals and the boom in infrastructure should bring the ratio back to about 60% industrial and 40% financial by 2010″ (now half the net).
Immelt says he doesn’t plan to change his strategy—other than raising his cost—cutting targets by $1 billion to $3 billion for this year. While he may not like the economic climate, he’s confident that the shares will ultimately reward solid execution. In the meantime, he’s doing what he can to help GE thrive. “Everybody would like to see the stock price higher,” he says, “me at the front of the list.
* Slideshow: GE’s Generals (Overview of General Electric’s five legendary CEO’s over the past 50 years.)
* Slideshow: GE’s Sprawling Empire (Overview of General Electric’s (GE) business segments)
London’s hedge fund managers and stockbrokers have more than their bonuses to worry about: many are now fretting about their marriages, according to a new study.
About 80 percent of those surveyed believe that the turmoil — and lower bonus payments — will prompt more women to seek a divorce before their husbands’ wealth evaporates further.
Here you can find the complete article.
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To date foreign Telecom players like SK Telecom (S-Korea), Telefonica (Spain), and Vodafone (UK) have been limited to minority stakes of under 7% in Chinese telecom operators.
However brighter times for foreign telecom operators may lie ahead! Owing to the ongoing Chinese telecom industry restructuring (consolidation wave) and a planned infrastructure revamp (issuing of 3G Network licenses). As Chinese Telcos are not primarily looking to attract more capital the latter can provide opportunities for foreign players. Respectively for foreign telecom operators that are already engaged in 3G networks in their home markets.
Foreign telecom operators have the technology and experience their Chinese counterparts lack.
Sphere: Related Content“We should attract more foreign investment when we roll out 3G and use other people’s money to build the networks,” says Beijing University of Posts & Telecommunications professor Lu Tingjie (source).
[click to enlarge, sorry about that, couldn't get it to go bigger than this in the post]
How much more can markets digest?
Inflation worries, near-record oil prices and fears of further bank losses have led to a sell-off of shares across global stock markets.
Key share indexes in India and China both fell 3% while Japan’s main index fell for its ninth consecutive day for the first time in four years.
In Europe, the FTSE 100 fell 2% while Paris and Frankfurt saw similar losses.
Lack of confidence also hit US markets, with the Dow Jones Industrial Average opening down more than 100 points.
Banking and airline shares were especially weak, the former hit by talk of further sub-prime related losses.
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The July / August 2008 edition of the Trendwatching Trend Briefing is now online, covering INNOVATION AVALANCHE, including no less than 41 new business ideas, many of them begging to be introduced to the Dutch market. So get your act sorted and gear up into action mode!
The Economist has devoted a special report on the Future of Energy. A previous post related to this matter can be found here.
The cover story of the special report suggest the following to encounter the big energy question:
Sphere: Related ContentThe best thing that rich-world governments can do is to encourage the alternatives by taxing carbon (even knowing that places like China and India will not) and removing subsidies that favour fossil fuels. Competition should do the rest—for the fledgling firms of the alternative-energy industry are in competition with each other as much as they are with the incumbent fossil-fuel companies.
Is all the negative publicity around China over the last few months truly justified? If you look above the surface the answer may be yes. However much change in happing in China below the surface as well. For example China is increasingly opening up to international media: BBC website ‘unblocked in China’.
Although this great initiative there is still a long way to go for complete freedom of speech in China: Stories China’s media could not write. Nevertheless, generation Y in China seems to have much more in common with generation Y in the West as initially thought by most Westerners: China and its Talent, and Modern China.
From a macroeconomic perspective China is well positioned to live upon its potential somewhere within a decade and half a century. Thus somewhere between the medium run (>1decade) and the long run (>half a century) source.
On the medium run the supply side (technology advancement, capital usage, labour force skill fullness) matters more then the demand side (consumer confidence, interest rates).Taking in account the aforementioned, the future seems to be bright cos of the entrepreneurial spirit of China’s generation Y: China’s young entrepreneurs.
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