Financial Times Blog

23 June 2018

Question: According to BestLife on MSN.com, what are 20 social etiquette mistakes you should stop making by age 40?

The General Electric-free Dow is the index we deserve – Pg. 7

–          The avatar of American agglomeration is now slimming down its aviation, healthcare and power businesses.

–          …struggles to reverse the third steep slide in GE’s shares since the start of the century, one challenge he faces is that its brand is freighted with misconceptions  (Prof Note: Brand and identify, whether to a company or person are critical.  When earning my MBA I considered the two least important classes to be Human Resources and Marketing.  Now, my greatest worry with businesses and my personal identity are addressed by both.  Personally, I believe they are taught by the wrong individuals.  Business owners should be teaching these classes, not executives in the field.  How both of these, critically important, affect company and persons is critical to understand.  My businesses are ramping up marketing expenditures daily.  Brand and identify are critical, especially today!)

–          GE was the sole survivor of the Dow’s starting line-up, but the US economy has changed since 1896, ….

–          Today it is no longer even the US’s most valuable industrial group

–          For many Americans, the Dow is almost synonymous with its economy

–          Investment sophisticates find this something of a joke.  The Dow tracks a mere 30 stocks, compared to the S&P’s 500; the points moves get increasingly meaningless as markets rise, and with no Facebook, Amazon, Netflix or Google it is missing most of the market-moving Faangs.  Worse, the Dow is weighted by stock prices rather than market capitalization, which can make its reshuffles look mathematically baffling

GE decline symbolized by group’s fall from Dow Jones – Pg. 9

–          After more than a century, General Electric’s run on the Dow Jones Industrial Average has come to an end.  The industrial group will be replaced on the index by pharmacy chain Walgreens

–          In the 1990s GE was the largest US company by market capitalization and, as recently as 2009, was one of the five largest listed groups in the world

Answer: (1) Interrupting (Prof Note: My standard line when I recognize I have interrupted an individual, “I am sorry.  I interrupted you.”  Then I wait for them to continue.; (2) Passing just the sale; (3) Leaving your hat on inside (Prof Note: This is sooo a Millennial thing!  However, be careful and sensitive.  I would never ask for a hat to be removed as the true reason of leaving it on is unknown.); (4) Not following up after interviews (Prof Note: Hmmmmm…this must be done appropriately and changes by personal preference); (5) Leaving on Read Receipts; (6) Using the Wrong Utensils (Prof Note: Just use the utensil the host(ess) uses and you will never go wrong.  “As little ships go out to sea, I push my spoon away from me!”); (7) Not saying, “Excuse me” when trying to get past someone; (8) Being on your phone while ordering; (9) Not holding the door; (10) Answering the phone with something other than “Hello” (Prof Note: Ridiculous!  I answer, “This is Roger Staiger”); (11) Eating with your Elbows on the table (Prof Note: As I age and it becomes more difficult for me to hear about background news, I lean over the table, placing elbows upon.  I am aware but the alternative is I cannot hear the conversation.); (12) Shushing someone; (13) Leaving your sound on; (14) Using the last of something without replacing it; (15) Reaching across the table; (16) Grooming in Public; (17) Talking in movie theatres; (18) Not walking single-file on a crowded sidewalk; (19) Not putting your napkin on your lap (Prof Note: I actually tuck the top of the napkin into my belt as mine tends to fall on the floor); (20) Putting your bag or feet on seats (Prof Note: This is a general note, manners have greatly regressed over the years to a more relaxed state.  I love having people over for meals and much prefer home cooking to restaurants.  Personally, I consider restaurants a “treat” rather than a staple.)

22 June 2018

Question: According to money.cnn.com what percentage of Americans have no emergency savings at all?

Intel chief forced to step down for non-disclosure of employee affair – Pg. 1

–          ..forced to resign after it emerged that he did not disclose an affair with an employee, which was against company policy at the world’s largest chipmaker

–          (Prof Note: Come on people!  I get passions of the heart and passions of other things but really???!!!  Disclose or do not disrobe!  Mr Krzanich, was it really worth it?!)

–          It was unclear whether Mr Krzanich would miss out on a payment of more than $45m that he would otherwise have been entitled to, …

US shops triumph in court over online rivals – Pg. 2

–          Bricks-and-mortar retailers secured a big win over online rivals yesterday as the US Supreme Court overturned a ruling that had enabled many ecommerce groups to avoid collecting sales tax from customers

–          In a case with profound implications for the consumer economy, they justices ruled by 5-4 that US states had the right to levy tax on online sales even if the retailer did not have a store or warehouse in their territory

–          …Supreme Court ruled that a requirement that sales tax be tied to a retailer having a “physical presence” in a state was outdated and “unsound”

–          The rule, which overturned a 1992 judgment, was quickly celebrated by the representatives of traditional retailers such as Walmart and sent the shares of online stores lower

Answer: 25%

21 June 2018

Question: According to CNN:Money, when is it okay to splurge?

US consumers expect higher prices because of trade dispute – Pg. 3

–          Mr Trump has made reducing the US’s $375bn annual trade deficit with China a primary goal of his trade policy.  The problem facing him is that much of what the US imports from China is in the form of goods that consumers want and may not like paying more fore

–          More than $100bn of the $505bn in merchandise that the US imported from China last year was in two categories – mobile phones and computers.  The top 15 products by value from China accounted for $350bn of imports, and 10 of those were consumer goods

Berkeley [Housebuilder] warns of 30% fall in profits as London house prices begin to subside – Pg. 11

–          …would return to “more normal levels” for the financial year ending in 2019 and were expected to be 30% lower

–          Last year, house prices in London dropped for the first time since 2009 as Brexit-related uncertainty and slow wage growth took their toll

Low gilt yields pave way for higher UK public spending – Pg. 19

–          The special relationship between the US and UK does not extend to their respective debt markets – …

–          The UK 10-year gilt has been trading in a yield range of between 1 and 1.5% since autumn 2016, while during that period the equivalent US Treasury yield has nearly doubled from 1.6% to 3%.  As a result the gap between long-dated gilts and Treasuries stands at its widest for more than three decades

–          Britain’s low yields have kept a lid on debt servicing costs; combined with sustained investors demand for UK debt, that has added fuel to the national debate on public spending.  The Treasury still has some room to sell more gilts without sending prices sharply lower…

–          Demand from pension funds and other institutional investors for ultra long-dated UK debt has resulted in an inverted yield curve, with 50-year paper yielding less than 30-year bonds.  Such a backdrop suggests the UK Debt Management Office can increase sales of ultra-long maturity bonds

Answer: The following questions should be considered when answering this question…(1) Do you have adequate savings?; (2) Can you afford the splurge; (3) Will it derail other savings goals and plans; (4) Will it give you long-term pleasure; (5) Have you done your research? (Prof Note: A peer purchased a hot tub for $6,500…life time goal.  After purchase it was realized the service to his house was only 100amps an he needed 60 amps alone for the hot tub ($4,500 upgrade (included more than hot tub but total expense outlay)).  Platform needed to be constructed for hot tub: $1,500.  Area where hot tub was to sit needed to be landscaped and grated: $1,500.  Total cost (which excludes operating cost of hot tub: $6,500 + $4,500 + $1,500 + $1,500 = $14,000.  Be careful!); (6) Have you done your research?; (7) Will you be able to rein it in again?