BlackBerry takes out ads to reassure customers

BlackBerry seeks to reassure customers:

Troubled smartphone retailer BlackBerry took out full-page ads in major newspapers yesterday to soothe worried customers. They asserted that customers could continue to count on BlackBerry since they have substantial cash on hand and a debt free balance sheet, but their actions speak louder than their words. The retailer has cut smartphone shipments amidst plunging sales and has cut 40% of its workforce. BlackBerry’s best hopes are the swirling merger and acquisition rumors that may dismantle the company. Taking out a full page add smells of desperation, and the decision to do it in print instead of online raised eyebrows.

Also read:

BlackBerry Open to Breakup

A New Buyer For BlackBerry

Things Are Still Getting Worse For BlackBerry

Deal In Place For BlackBerry To Be Sold For $4.7B

Amazon positions itself inside supplier warehouses

Amazon takes up space in Proctor and Gamble warehouses:

Amazon has stationed workers in several Proctor and Gamble warehouses where they will be able to ship consumer staples directly to consumers. This program is called Vendor Flex, and Amazon is seeking to also collaborate with Kimberly Clark to broaden its offerings within the program. Vendor Flex allows Amazon to significantly cut costs and improve speed of delivery, which may eventually catalyze its same day delivery and online grocery shopping business. This will allow the companies Amazon partners with like Proctor and Gamble and Kimberly Clark to boost online sales.

Apple hires Burberry chief to lead retail and online operations

Apple hires Burberry chief to lead retail and online operations

Apple has named Burberry CEO Angela Ahrendts as their Senior VP of Retail and Online Stores. Ahrendts spent seven years leading the British Fashion house, tripling their sales and quadrupling their share price. Apple CEO Tim Cook as been in charge of the retail division since John Browett was fired a year ago. 

Senate Leaders Near Deal

Senate leaders near deal

Senate leaders are close to a deal that would extend the U.S.’s borrowing capability to February 7, fund the government until January 15, and force Washington to hold budget talks by December 13th. Even though this deal would fend off a potential default, end the 15 day government shutdown, and change the immediate deadlines in favor of three new ones over the next four months, Tea Party republicans are expected to oppose the deal. This deal is not a final solution, rather an extension to give congress time to negotiate. At this point, kicking the can down the road is progress because it takes us away from the edge of financial collapse.

Crumbling Public Infrastructure Increases Business Costs

Crumbling public infrastructure adds to business costs

One in nine U.S. bridges is “structurally deficient” and 42% of major urban highways are congested according to the American Society of Civil Engineers. This poor infrastructure could cost companies an extra $430B in operating expenses by 2020 and cause an additional $1.7T in lost sales. Detours to avoid these public hazards are costly in terms of time, gas, and vehicle wear and tear.

Boeing to furlough employees if shutdown continues

Boeing to furlough employees if shutdown continues

Boeing (BA) plans to furlough a significant part of its workforce this week should the government shutdown persists. Workers in its defense, space, and security unit would be the latest Americans to directly feel the pain of the government shutdown. The cuts would come as a result of limited access to federal instillations, funding cuts, shortage of government inspectors, and stop-work orders from customers who are largely from the government. This unit accounted for about 40% of Boeing’s $82B in revenue in 2012.

GM opens $200M plant to cut costs

GM opens $200M plant to cut logistics costs

General Motors is scheduled to open a $200M metal stamping facility in Texas next to the automaker’s factor in Arlington. The plant is expected to reduce shipping costs by $40M per year. New labor contracts enabled the automaker to play new workers lower wages, which catalyzed the opening of the plant.

Netflix in talks to partner with cable providers

Netflix in talks to partner with cable providers

Netflix (NFLX) is reportedly in talks with Comcast (CMCSA), Time Warner Cable (TWC) and other cable television providers to make its video streaming service available to their customers. This partnership would include an app added to set-top boxes of cable operators, which would enable customers to search for web-based movies and television along with traditional programs. Cable providers ostensibly see Netflix’s $7.99 per month service as a tool to attract and retain customers, essentially subscribing to the view, “If you can’t beat them, join them.”

Twitter's IPO Date:

Twitter Eyeing November IPO:

An early version of Twitter’s S-1 states the company’s IPO lockup period ends on February 15th. These lockup periods typically last 90 days, so backtracking from there an IPO on Friday November 15th would be likely. This would be just in time for you to gift Twitter stock for Thanksgiving or Christmas!

You can read more about the IPO details here and here and how they caused Tweeter to jump nearly 2,000% here.

BlackBerry Warming to Breakup:

BlackBerry More Open to Breakup:

BlackBerry is reportedly more open to breaking up and selling off the business piecemeal as doubts continue to be raised that Fairfax Financial will be able to obtain the funding for its $4.7B bid to purchase the company outright. Other companies who would be interested in parts of the firm include SAP, Cisco, and Samsung. Firms believe that breaking up the company unlocks more value for the buyer and some companies like Intel are only interested in BlackBerry’s patent holdings.