Insight into current trends in Business, Finance, Psychology, Economics, and Fitness.
This blog provides running commentary on impactful and relevant current events and research. Insights into topics including Business, Finance, Psychology, Economics, and Fitness are provided by a rising Industrial/Organizational Psychologist.
FTC to approve Office Depot and Office Max merger
The Federal Trade Commission is reportedly to give antitrust approval to the merger of Office Depot and Office Max. The two retails would not have to make divestitures under the deal as the FTC concluded the merger wouldn’t reduce competition substantially. Larger retailer Staples and the prevalence of e-commerce in that sector have been assessed to be resilient to a merger.
Chinese media attacks Starbucks over prices:
Starbucks has become the most recent consumer facing organization to come under media fire in China. Starbucks has been charging customers in China higher prices than other markets, earning the company strong profit margins. A medium-size latte costs about $4.43 in Beijing, which is about a 33% premium over the cost on the same drink in Chicago. Retail sales of coffee in China grew more than 90% between 2007 and 2012, hitting $1.5B last year. Starbucks had a profit margin of 32% in China-Asia Pacific in its second quarter, compared to 21% in the Americas and 2% in Europe, Middle East, and Africa. The Chinese media can complain all they want, but if Starbucks can continue to raise prices in this market without loosing sales, why shouldn’t they?
Check out this awesome graphic from the Wall Street Journal on all the cost components that go into a Starbucks Latte in China.
AT&T and Crown Castle Announce $4.85B Tower Transaction:
AT&T has agreed to lease 9,100 cell towers and sell another 600 towers to Crown Castle International for $4.85B. After the lease expires in an average of 28 years, CCI will have the ability to purchase those towers for about $4.2B. This deal comes amid consolidation of cell-phone tower operators and positions both companies well for future growth.
JPMorgan to pay $13B in settlement with authorities:
JPMorgan has reached an agreement to pay $13B to settle several investigations into its business practices. Among the penalties is a $4B payment to resolve claims by the Federal Housing Finance Agency alleging the bank sold questionable mortgage loans to Fannie Mae and Freddie Mac. Another $4B would go to consumer relief and $5B to settle other inquiries. While I am sure everyone does have their price, the $13B wasn’t enough to settle the ongoing criminal investigations. The resolution of those charges will be an interesting process to watch unfold.
This week’s top posts:
2. Deadlines Spur Action: Congress strikes a deal to avoid default and fund government
3. Using Game Theory To Resolve The Stalemate In Washington
4. Amazon Positions Itself Inside Supplier Warehouses
5. Twitter chooses NYSE as Sales and Losses Rise
Other Suggested Reading:
Renting vs. Buying: Why buying a house generally wins
A list of the special favors in the “Clean” debt ceiling bill
Even in tragedy, Wall Street Traders see opportunity
Why fans of bad teams are more likely to be obese
The long term economic effects of birth control
The Weekend Hangover: Everything you need to get back to baseline after a long week and a late night.
How to deal with student loan debt: I read this post with particular interest because as of late my own burden has been weighing on me. The emotional impact of debt can be as stifling as the financial burden. Anxiety, shame, anger, sadness, and frustration are common emotions. I predict that when I finally pay off all my debt (I’ll have to take on more before I can even begin to pay it off) it will go down as the happiest days of my life. Apologies to my unborn kids and unmet future wife.
Do Dogs Miss Us When We’re Gone?: Mom, don’t read this… Yes, dogs do miss us when we’re gone and the longer we’re gone the more they miss us.
What Curt Schilling’s Bankruptcy Can Teach Us: First, just because you love something doesn’t mean you know it or can do it. For exampling loving the NFL and fantasy football doesn’t mean I could play quarterback for the Patriots. A backup for the Jets… Second, don’t throw all your eggs in one basket. Diversify! Third, maintain a disciplined long-term outlook.
Study: Settling for Less Out of Fear of Being Single: I read this fascinating study this week in the Journal of Personality and Social Psychology, it found that people who fear bing single, settle for less in romantic relationships. If you’re afraid of being single, know that you’re more likely to settle for someone in a future relationship.
If you feel lost in your 20s, remember these five things: 1. We’re all different, don’t compare yourself to others. 2. Experience is more valuable than money. 3. Don’t fear moving on. 4. Get used to being uncomfortable. 5. Be brave.
Not everyone finds confidence attractive: Sometimes it can be intimidating.
9 fascinating insights from Nobel prize winner Robert Shiller: “Society is a constant feedback loop”
How Starbucks Turned Pumpkin Spice into a Marketing Bonanza:
10 Pumpkin products you can’t live without: There are some unique things here… None of which I’ve tried… yet.
What saying “I” says about you: People who often say “I” are less powerful and less sure of themselves than those who limit their use of the word. Those who say “I” often believe they are subordinate to the person they are talking to.
The Science of Office Seating: By shifting employees from desk to desk every few months, scattering those who do the same types of jobs and rethinking which departments to place side by side, companies say they can increase productivity and collaboration. It improves knowledge sharing and inspires collaboration.
Is your office making you unproductive?
The new way of watching TV: How many of you just watch TV without also scrolling through your twitter or Facebook timelines on your smartphone or your laptop? Not many. Most people are multitasking (like I am while writing this post) and about 17% of TV viewers multitask by engage in real-time socializing about the TV shows they’re watching.
The Whites of Their Eyes: Stanley Milgram’s obedience show someone is more willing to inflict pain on another if they are further away. The explanation for this includes empathy, denial, reciprocal fields, experienced unity of act, and incipient group-formation.
The three types of intelligence you need for success: General intelligence, emotional intelligence, and social intelligence.
8 incredible and alarming labor force statistics: hourly earnings have risen by 2% in the past 33 years. Health care benefits account for 20% of workers’ compensation and more.
30 Mind Blowing Stats About Americans Under the Age of 30: Highlights: Only about a third of all adults in their early 20s are working a full-time job; In 2007, the unemployment rate for the 20 to 29 year old age bracket was about 6.5 percent. Today, it’s percent. Half of all recent college graduates are working jobs that do not require a college degree. 100,000 janitors and 317,000 waiters and waitresses have college degrees. Young Americans have been handed $17 Trillion in national debt they will have to pay off their entire lives.
What would have happened if the U.S. defaulted: It would have been bad. Very bad.
A good night’s sleep clears cellular waste: A good nights sleep cleans out all the gunk in your brain that accumulates while you’re awake. People who are sleep deprived have trouble learning and making decisions. Maybe it’s time for you to go take a nap.
Why you can’t get over your ex
The male-female pay gap hasn’t moved much in years: Women earn 77 cents for every dollar a man ears, which has been about the same since the early 2000s.
Parents Music Shapes the Way Kids Think
Why Experienced Beer Drinkers Love Strong, Hoppy Beers
Why the Tax Man may help abolish automatic tipping
10 interesting and little known facts about the S&P 500
The Psychology of Stuff and Things: Our lifelong relationships with objects
Three ways to get a promotion: Take initiative, choose your battles, and show you can manage people.
Obamacare exchanges providing insurers with wrong data:
The technology problems affecting the roll-out of the health insurance exchanges seem to be ever worse that earlier thought, with insurance carriers saying the marketplaces are generating flawed data. This flawed data is hindering their ability to handle even the small flow of enrollees who have gotten through so far, indicating tech problems extend beyond website traffic and software issues. Errors include duplicate enrollments, spouses reported as children, and missing information.
Automaker General Motors nine-month sales grew 4.6% to 7.25M vehicles. Volumes in China climbed 11% to 2.31M when including GM’s partners. Globally GM, has managed to stay out ahead of Volkswagen in the race for the top spot globally, whose nine-month sales rose 4.8% to 7.03 on the back of 2.35M shipments to China. GM, Toyota, and Volkswagen are in a race for global sales supremacy.
Shares jump as Google beats earnings:
Shares of Google jumped 8.35% after the Internet giant’s earnings for Q3 beat predictions. Strong paid-click growth offset softening prices for advertising. Like both Facebook and Twitter, Google saw a jump in mobile usage boosting its search volumes. Google’s net profit rose 36% to $2.97B, and revenue climbed 12% to $14.89V.
Mark Cuban is a badass businessman with a net worth of over $2.5 billion and owns the Dallas Mavericks. He has also been cleared of insider trading charges alleging he sold his take in a Canadian Internet company nine years ago to avoid a $750,000 loss. Cuban reportedly spent much more than that on his defense in this case alone. A Jury of two men and seven women found that the information Cuban traded on wasn’t confidential and that he had not promised not to trade on it. Cuban prides himself on knowing when to pursue a good investment and when to walk away. This was a low-stakes case that turned into a high profile loss for the SEC. Learn from Mark, sometimes you just have to walk away.