Gov. Shwarznegger hits Splitsville

This will probably be my last post on this blog for awhile. However, this momentous news is so shocking that I must record it here.

CNN just released the news that Arnold Schwarznegger and his wife Maria Shriver have "split amicably." The Schwarzeneggers have just celebrated their 25 years of marriage two weeks ago. Reported by CNN, "At this time, we are living apart, while we work on the future of our relationship."

This is very sad news and I wish Arnold and his family the best. 

LinkedIn is Worth $3 Billion?

Wow, I'm not sure who's doing the valuations these days but it seems that every social network website is worth billions! That's right, maybe I'm in the wrong major here. But I'll definitely remember to tell kids that Computer Science is the way to go.

According to WSJ, LinkedIn is seeking an IPO worth $3 billion! Now, considering how Gilt Groupe received $138 million in funding, $3 billion doesn't seem too ludicrous.

LinkedIn said Monday it plans to sell 7.84 million shares at an estimated price range of $32 to $35 apiece, raising as much as $274 million. The price range values the entire company between $3 billion and $3.3 billion. The shares will trade on the New York Stock Exchange under the symbol LNKD.

However, buyers beware. I'm skeptical of the recent social media bubble with Facebook and Twitter. Let's not repeat what happened in another dot-com fiasco please.

Amy Chua On Stephen Colbert

The Colbert Report
Tags: Colbert Report Full Episodes,Political Humor & Satire Blog,Video Archive

Wanna be a CEO? Check out who is earning the big bucks (and who isn't)!

WSJ released a composite chart featuring CEOs at U.S.'s biggest 350 companies. The pay period is roughly from May 1, 2010 to April 30, 2011. The total compensation calculated includes base salary + annual incentives + stock option grants + restricted stock grants + performance award.

While most people expect CEOs to earn millions each year, and they do, some CEOs have earned $0 as their income this year. You can check out the complete list at WSJ. But here are the highlights with Top 5 and Bottom 5.

Top 5 Paid CEOs of 2010
1. Viacom - Philippe Dauman - $84 million
2. Oracle - Lawrence J. Ellison - $68 million
3. CBS - Leslie Moonves - $53 million
4. Jarden - Martin E. Franklin - $45 million
5. DIRECTV - Michael White - $32 million

Bottom 5 Paid CEOs of 2010
1. Whole Foods Market - John P. Mackey - $0
2. Citigroup - Vikram S. Pandit - $0
3. Apple - Steven P. Jobs - $0
4. Google - Eric Schmidt - $1.8
5. Amazon.com - Jeffrey Bezos - $81.8

Does this list surprise you? I'm astounded by the $0 earning from some of the top technology firms. Google? Amazon? APPLE? I guess this is not a great indicator of how well a company is doing!

What should Google do?

Early this year, Google announce that they will replace Eric Schmidt with Larry Page as the next Chief Executive Officer. Ironically, the reverse situation happened in 2001 when Page was the CEO.  This April, Larry Page officially returned to his former executive position. Shuffling the power balance among the triumvirate – Page, Brin, and Schmidt – will grant Page complete control on product development and technology strategy. Mashable claims boldly that it is now “Larry Page’s company.”

Google has become a household name. Instead of searching an encyclopedia or a dictionary for an answer, most people will tell you to “Google” it. It all began with two Stanford graduates, Sergey Brin and Larry Page, and a simple mission – to “organize the world’s information and make it universally accessible and useful.” In the last eleven years since inception, Google has made several significant mistakes that have raised many criticisms. 

Because of Google has the monetary and human capital to enter new ventures, Google has partaken in social media (Google Buzz), online video hosting (Google Video and YouTube), mobile phone industry (Android OS), and computer clouding (Google Docs) industries. Yet, how many of these projects are profitable?

During Google’s recent attempt with social media, Google purchased a blogging website, tried to buyout Friendster, launched its own online community website Orkut, and implemented Google Buzz, a messaging and social networking tool that integrated into Gmail. This happened sporadically over the last seven years (2003-2010).

Unfortunately, Google cannot battle Facebook vis-a-vis. Not only has Google’s profit earning been a disappointment to investors, it is lagging behind the Standard & Poor’s 500-index index and being outpace by Facebook. Instead, Google needs to consider a strategic alliance with LinkedIn or any social media website to utilize their best attributes: Google’s search knowledge and a reputable site with a large database. If Google does not hurry, Facebook will certainly overtake Google’s territory one day. Rumor has it that Facebook has a plan to enter the Chinese market with a little help from Baidu, China’s #1 search engine and Google’s largest rival.

In a similar situation with online video hosting, Google acquired YouTube for the price tag of $1.65 billion after the failure of Google Video in 2006. The deal made YouTube co-founders Chad Hurley and Steve Chen happy men, but what about the rest of us? Sadly, Google is still waiting to make back its money as of today. The latest news I heard is that Google is on track to recover 50% of what they paid the YouTube guys by 2011. In the words of Google CFO Patrick Pichette, “YouTube will soon be very profitable.” Keyword – soon.

When Google noticed that they are terrible at investments, they moved their energy to create in-house products. Two popular Google products are Google Docs, a cloud computing form of Microsoft’s Office software program, and Android OS, an open source mobile platform that challenges Apple’s iPhone OS as the market leader. Both are still in its infancy stage and share a striking flaw – they are not making Google money.

A major downfall for engineering firms is the lack of focus on increasing values for stakeholders, a very important factor for a publicly traded company such as Google. Instead of just releasing “cool” products, Google needs to focus on worthwhile endeavors in protecting the interests of investors.

I salute Google for its valiant efforts to create unique products such as Android OS and Google Docs. However, from an investor’s point of view, it is a death warrant for Google to try to disrupt either market with its reverse positioning.  Especially when veterans Microsoft and Apple control the dominant market shares in their respective industry.

It is inevitable that one day Google will struggle to sustain its high growth rate. Indeed, Google has even mastered the art of network effects. But at what cost?

Business Week covered an article in January regard the current condition of Google:  

“The creative chaos inside Google's halls—a decentralized jungle of innovation, as one prominent venture capitalist puts it—once empowered employees to make bold moves… [with] a culture has recently produced a string of flops.”

To sum up the story of Google thus far: Good at search, bad at investments.  

Now the billion-dollar question remains – what should Google do next? How will Page enhance its value for the stakeholders?

Google is infamous for their disregards against the normal standard. The company has a 20% innovation time off to allow engineers to work on pet projects. By allowing Google engineers to take 1 day off a week to work on an independent project of their interest, this has resulted in the conception of  half of Google’s new products.

Yet, these only serve as supplements to Google’s core competency: a superior search algorithm unmatched by any competitors. I have the perfect proposal for Google to take things to the next level: Go back to what works!

According to the Official Google Blog, Google’s bread and butter are its search engine and its cost-per-click ad service, which together generate 99% of annual revenue. Not only has Google maintained the leader position in the U.S. search engine market, but Google’s value to users and advertisers is worth $119 billion.

Yet, no one at Google is working on improvements. The SearchEngineWatch Blog’s latest post reveals that Microsoft’s Bing.com jumped 5% in searches while Google.com declined 2%.  In Hitwise’s recent survey of “search success rates,” Bing scored higher (81%) than Google (66%). Jaynotes’s finding concurs, “Often, Google fails where contextual topic search is critical.”

With the arrival of Page, Google’s Mountain View headquarter need to shake things up! After Page’s first monolithic move of company restructuring, it is clear that Page is on the right track. Now, Page must ensure Google’s dominant presence in the search market by continuously fine-tuning its search algorithm.          

Because consumers’ switching cost is very low, Google certainly needs to maintain its reputable claim as the ultimate search engine. It is dangerous for Google to lose users at its current rate as advertisers pay for the potential foot traffic that Google can provide. Especially in the fast-paced world of high tech where technology can become obsolete overnight, today’s Google may become tomorrow’s Netscape.

The word “google” is synonymous to “search.” That is exactly what Google should do – Keep on searching!

Facebook + Baidu = Dream Team?

There has been rumors of Facebook teaming up with China's #1 search engine, Baidu. Baidu came to prominence when it took over the search engine market after rivaling with Google and eventually became the top dog. What does it mean if Facebook teams up with Baidu? One way for Facebook to make money is to license its search algorithm or form strategic alliances to leverage its humongous information database.

Facebook issued the following statement: "Facebook is currently studying and learning about China, as part of evaluating any possible approaches that could benefit our users, developers and advertisers."

You are now a Princess

Prince William and Kate Middleton's wedding has been dubbed the "wedding of the century." For those that stayed up during the twilight hours to watch the wedding, as did I, must have loved every regal moment. From the timeless wedding dress to the classic Aston Martin DB borrowed from Prince Charles, this was the perfect fairy tale wedding.

For royal wedding pictures, check out U.K.'s top tabloid newspaper Daily Mail: 

This iconic balcony picture captured the happiness yet if you look in the lower left corner, it is very easy to spot the angry little bridesmaid, oh the irony...

Osama Bin Laden Is Dead

The biggest headline I've seen on WSJ yet... 

OSAMA BIN LADEN IS DEAD, PRESIDENT OBAMA SAYS

Obama: 1, Trump: 0

"In case there are any lingering questions tonight (regarding the birth certificate), I'm prepared to go a step further tonight," President Obama said. "For the first time, I am releasing my official birth video." Cue The Lion King's opening song.

How Will Barnes & Noble Get Its Groove Back?

What is the fate of the brick and mortar bookselling industry? Borders just announced plans for bankruptcy and foreclosure of 226 stores in February. For Borders, they just made one too many mistake. Experts at Wall Street Journal have highlighted three missteps – operation of too many unprofitable physical stores; lack of sales in the outdated format of music CDs; and missteps of not joining the first the e-book wave. Seeing how rapid changes occur in technology, the brick and mortar bookstore and physical book selling industries are in grave danger.

Although Barnes & Noble dodged the bullet this round, the company must be ready to battle its biggest threat, the giant online retailer Amazon. Barnes & Noble has already  tightened its belt by eliminating dividends while reporting a 7.3% profit in its latest fiscal quarter. As the largest book retailer, Barnes & Noble must avoid find ways to leverage its core competencies: upscale store atmosphere, superior customer service, and the NOOK e-Reader.

Currently, Barnes & Noble lacks the appeal to attract consumers. With some serious changes though, it can definitely improve its odds.

Here is my list of recommendations: 1) to enhance the brick-and-mortar stores’ ambiance and environment by opening newer redesigned stores, eliminating shelf space, and integrating in-store NOOK functionality; 2) to create partnerships with schools and Starbucks to drive NOOK adoption and capitalize on powerful network effects; 3) to introduce an unlimited subscription service on the NOOK to add value to the customers and gain market share.

From Borders’ failure, we recognize that the key to success lies within the fierce competition over e-book. Whoever dominates the e-book market wins. In order for NOOK e-reader to gain market share, Barnes & Noble must integrate NOOK into a store’s floor design. Many customers come to Barnes & Noble to browse and read books without purchasing anything. By allowing customers who own a NOOK to have special perks inside a Barnes & Noble retail store, it will increase brand awareness and promote NOOK sales. For example, Barnes & Noble can implement a member card that can be imbedded in the customer’s NOOK that will keep track of every book read by him. When he enters the store and swipes the card, the NOOK will notify him of a “Book of the Week” that is specific to his interests. The NOOK now has become a consumer’s personal shopper while he browses the store.

Barnes &Noble can further extend this strategy by expanding their existing partnership with Starbucks, which offers its coffee products through Barnes & Noble café. Last year, Barnes & Noble released a beta version of their Read in Store^TM feature on the NOOK. This feature allows users to read books on their NOOK in any B&N store, free for one hour. Essentially, NOOK owners gain free browsing access to Barnes & Noble’s enormous selection of books by walking into any brick and mortar store.

If Barnes & Noble wants to broaden its network effect, they should consider extending this feature to regular Starbucks cafés. Any NOOK owner would be able to enter a Starbucks and read any book on their NOOK for free. Given the ubiquity of Starbucks cafés, this partnership will offer many advantages for its consumers. It is advantageous for Starbucks as well because of their third place ideology. Starbucks uses the catch phrase “third place” to promote the ambiance of their stores – “there is home, there is work, and there is Starbucks”.

I see this as a win-win situation. If Starbucks were to continue to open additional locations in the US, more NOOK owners would be able to use their NOOK in more places. Likewise, if NOOK sales continued to grow rapidly in the coming year, Starbucks could expect an inflow of new consumers who have come in to buy a coffee while reading a book on their NOOK.

And here is my brightest and boldest idea – The Netflix Model. Netflix broke away from the traditional brick-and-mortar format with an Internet-based video rental business. It beat its competition with a completely different pricing strategy through the creation of a prepaid subscription service with unlimited rentals and elimination of single-rental service. Netflix singlehandedly destroyed Blockbuster and won the loyalty of 20 million subscribers.

Borrowing from Netflix, I want to adapt its “unlimited subscription” model to fit into Barnes & Noble’s e-book business. Barnes & Noble must develop its broad and open e-book platform, its relationships with smaller publishers, and its specific focus on books to offer an unlimited subscription model for a majority of its e-books.

Blogger J.D. Roth comments that most books published in the past century do not sell as well as e-books because of their comparatively higher prices, free books at the public libraries, used bookstores, eBay, and even Amazon’s used book marketplace. Barnes & Noble’s unlimited subscription model would revive millions of book titles that are otherwise gathering dust at publishers’ storage shelves.

Similar to the Netflix’s model, customers of Barnes & Noble’s unlimited subscription model would be able to “check out” a maximum of 2-3 books for as long as they wanted, and exchange their finished e-books for new ones at their leisure. Think of the model as a digital library rather than a digital bookstore.

According to The Washington Post, one study found that one in four adults does not read a book yearly. If Barnes & Noble could price its unlimited subscription model as low as one or two times the average price of a physical book per month ($15-$20), it would still profit immensely from the majority of Americans who read less than one book per month.

The main media industry leaders including Netflix and Apple have been successful because they make access to their products effortless for their users. The newly proposed plan offers consumers the convenience of one-click, on-demand e-book downloads without having to worry about the complexity of tiered subscriptions or the effort of comparing book prices. Additionally, the service would offer dramatically lower risk for consumers because they would not be stuck with a book they dislike.

Barnes & Noble’s ability to outlast the recession and competitors is rooted within the company’s strong brand in book retailing and foresight into digital books. With the implementation of brick-and-mortar store redesign, advanced partnerships, and new subscription platform, Barnes & Noble will regain its unyielding position as the number one book retailer.

What's the difference between East and West?

I found this humorous link that illustrates the culture gap between the East (red color) and West (blue color).


The first picture is "What's trendy" and the second picture is "Child".

 

The third picture is "While waiting in line" and the fourth picture is "Sunday afternoon".

Shark Tan Feature: Kevin O'Leary-ISM

For those that haven't noticed, I love Shark Tank! These Sharks depict the real dog-eat-dog world that these business moguls have struggled and survived, and ultimately came out as the Top Dogs.

By far, my favorite quotes have been coming from Kevin O'Leary, a self-made entrepreneur who sold his business to Mattel for $3.7 billion.

1. Let me tell you something. If you were in one of my business school classes, I would spray you down with water and every time you say "I don't know." I'd hit you with an electric cattle prod. You gotta know this stuff!
2. I'm going to sneeze I'm allergic to bad ideas. 
3. My money has its own soul.
4. Can it make me money? That's all I care about. 
5. I just love my money too much. I'm out.

Someone should make a book from these memorable quotes!

New Information Regarding Berkshire's Scandal

In my previous post about the Berkshire's scandal, new details have emerged today in WSJ's Deal Journal. David Sokol, the apparent heir of Berkshire Hathaway, suddenly quits his job has raised questions of the situation.


Three key incriminating evidence that the audit committee found are:

1. Warren Buffet did not know that Sokol bought shares in Lubrizol after Sokol asked bankers to kick off possible acquisition talks. 
2. Sokol lied to or misled the Berkshire CFO.
3. Sokol asked Bueffett to strike a paragraph in a press release regarding the impact of the Lubrizol stock purchases.

Top Affordable Colleges in America

Wall Street Journal's Smart Money just released a list of top affordable colleges in America

1. Cooper Union (Free Tuition)

Runner Up: Curtis Institute of Music, City University of New York Macaulay Honors College, Deep Springs College (all-male).

2. University of Pennsylvania (No-Loans College)

Runner Up: Boston University (for income-eligible students who graduate from Boston's public schools); Rice University (for families with income of $80,000 or less); Vanderbilt University (for all students receiving need-based aid).

3. University of Florida (Bargains for In-State Residents)

Runner Up: University of North Carolina at Chapel Hill (around $6,700 per year in tuition and fees); University of Texas at Austin ($10,400); University of Washington ($12,600).

Another Donation For USC - $110 Million!!!

This just in... The Mork family has donated a historic gift to USC, in the form of $110 million. Announced on the USC's official website, this is the largest sum of donation in USC undergraduate scholarships history. The USC Mork Family Scholars Program is aimed towards incoming freshmen and are awarded based on academic merit. It runs similarly to the USC Trustee and Presidential Scholars programs. Recipients have to maintain at least a 3.5 GPA and will enjoy the same benefits offered to Trustee and Presidential Scholars, including residence in the residential college for honors students and special programming throughout the academic year.

Did USC just get $200 million, $15 million and now $110 million in the last 2 months or so? So basically I go to the best school in the history of the universe! Fight on! 

Bold Claim: Nintendo 3DS Are Good For Kids?

One of my gamer friends showed me this article to convince me that video games have more benefits than people think! Really? I personally question the true intentions behind these "US optometrists" that gave this recommendation.

To sum it up, the claim here is that the new Nintendo's 3DS can help detect eye problems in young kids at an early stage. 

An earlier report that had the upcoming Nintendo 3DS gaming console's screen bad for the eyes of users, especially those of children under six, is being discounted by US optometrists. USAToday reported on Friday that manufacturer's warnings don't need to be followed for undeveloped vision of the young kids. Eye specialists suggested the just the opposite and condoned the use of the game consoles by that age group, as it could help parents catch vision disorders early.

"The 3DS could be a godsend for identifying kids under six who need vision therapy," said Michael Duenas, associate director for health sciences and policy for the American Optometric Association.

 If you were a parent, would this article convince you to let your kids play video games?

USC Hires New Professors

According to the official USC website,

Lord John Eatwell, a well-known British economist, member of the House of Lords, and president of Queens’ College, Cambridge, and Lady Eatwell (known professionally as Suzi Digby) an acclaimed choral conductor and recipient of the Order of the British Empire for services to music education, have been appointed to the USC faculty for the Fall 2011 semester by president C. L. Max Nikias.

Lord Eatwell will join the faculty of the USC Dornsife College of Letters, Arts and Sciences, where he will teach a graduate course in the Department of Economics on Classical Economic Theory and Its Critics, and an undergraduate course in the School of International Relations on Global Economy 2020. For this latter course he will invite six prominent political figures and experts to give guest lectures on crucial factors and policy issues that will influence global society over the coming decade.

Suzi Digby (Lady Eatwell) will join the faculty of the USC Thornton School of Music, where she will teach an undergraduate course on English Choral Literature with Nick Strimple, a professor of choral music and an acclaimed composer, conductor and scholar. In addition to teaching, she will be involved with a variety of artistic and educational endeavors within USC Thornton.

So, for those that are still taking courses next semester, sign up!

Water for Elephants

I watched  Water for Elephants during its opening weekend! The story goes something like this: "A veterinary student abandons his studies after his parents are killed and joins a traveling circus as their vet." It is based on a New York Times bestseller and features a star-studded cast: Robert Pattinson, Reese Witherspoon, and my favorite villain playing actor, Christopher Waltz. My friend who loved the book dragged me to see the movie and of course, I went along to see the handsome R-Pat in action.


The movie brought back nostalgic feelings of me going to the circus as a young girl. I loved the scene when Rosie, the elephant, stood on her front legs. I couldn't help but let out a "wow" when I saw it. It reminds me how much I loved the circus!

I'm also glad to hear that no animals were harmed during the filming process. According to E! as we know it, "the perception of abuse was created using makeup, fake blood, computer-generated images and post-production sound effects. Read a report from on the set of “Water for Elephants” and a detailed description of how the animal action was achieved safely at http://www.americanhumanefilmtv.org/water-for-elephants/."

Overall, the movie was good (3.5 out of 5 stars). If you find yourself at the theater but nothing appeals to you, then give this a try. For me, it was a little too reminiscent of Big Fish and The Notebook. Yet, Water for Elephants didn't leave me with an impressionable memory as the other two movies did. Nonetheless, I did recommend the movie to those that are anti-Edward Cullen fans. Robert Pattison's acting has improved since Twilight!

Get in the Shark Tank 2

I've been addicted to Shark Tank. It took me one day to catch up with the current season (they just aired episode 6 on Hulu)! In the latest episode of Shark Tank, 4 of the 5 sharks fought over 1 guy's idea of SweepEasy Broom, basically an improved version of a scraper broom. The product itself is a gold mine. It's simple to understand and use, no need to educate consumers, and the profit margins on these babies are great. True to their names, these sharks were fighting over each other in one of the most heated scenes I've seen yet on this show. At one point, Kevin O'Leary said to Barbara Corcoran that if she messed up his deal, he would "slap her like a baby seal." Interesting choice of words, don't you agree? You can see the action for yourself by clicking here.


As I was watching the show, I became very curious with one thing -- are the deals made on Shark Tank legally binding?

According to Chubbybrain,

The offers are not binding it seems until due diligence occurs. Investing any amount of money with no due diligence would be foolish on the part of an investor no matter how wealthy as they need to understand your company and verify the veracity of your claims (patents, revenues, number of customers, etc).

From an entrepreneur's perspective, a deal is not done until the ink dries on the papers both in real life and on the Shark Tank.

Get in the Shark Tank

I recently discovered a great show for entrepreneurs who want to see how to negotiate with investors -- angels, VC, or in this case, sharks.

Some of the presentations are very interesting. I was very moved by a full-time mom who started her business in her garage. She began her business after her husband was fired from his job and she had to find some ways to make ends meet. Her company, Mod Mom Furniture , creates eco-friendly toy boxes with a pretty lucrative profit margin.

After doing some researches, it turns out that after the episode aired, many people besides Robert Herjavec contributed to her success. Check out her own blog post about her experience on Shark Tank!

At the Met: Alexander McQueen Exhibit

If you are in NYC area between May 4 to July 31, make sure you check out an upcoming exhibit at the Metropolitan Museum of Art -- "Alexander McQueen: Savage Beauty." It features over 100 ensembles and 70 accessories from the designer's career that spanned 19 years.

The Met's exhibition follows themes —such as Gothic design, exoticism and nationalism—and silhouettes that recurred in Mr. McQueen's collections. "He loved clothes that referenced history and idealized the female form," said Mr. Bolton.

Most designs are high concepts but celebrities like Lady Gaga and Sarah Jessica Parker have walked the runways rocking McQueen's most notorious outfits.

Check out  Vogue UK for a full preview.

Cheaper Eggs Coming Your Way

Happy Easter! For those that are out celebrating with egg decorations and egg hunts, I have great news for you!

According to WSJ,

The average retail price of eggs was $1.73 a dozen in March, down 5% from a year ago, according to the U.S. Department of Agriculture. Meanwhile, the wholesale price of $1.28 a dozen in the week leading into Easter is down 7 cents from a year ago and 10 cents from two years ago.

Right now, egg demands around Easter have been less than previous years. And this does not translate well for the egg producers. Maro Ibarburu of Iowa State University's Egg Industry Center said, "If they are not making money now, I don't see how they are going to make money for the next three or four months."

So bring out your paint and brushes, and get crackin'!

(Photo Credit: Crunchy Domestic Goddess)

New Leader Born in Macau's Ho Empire

Casino mogul Stanley Ho has passed his throne to his fourth wife, Angela Leong, after a power struggle within his family. Ms. Leong now controls one of Macau's most lucrative gambling operation, which earned $457 million on revenue of $7.4 billion from its 20 casinos last year.

WSJ reports that Ms. Leong has an ambitious plan to "spend $1.3 billion to build a Macau theme park and resort with six hotels, an indoor beach and an equestrian center. The complex won't have a casino, however, in line with the Macau government's efforts to diversify the economy."

Whether this project will expand the Ho empire further, I give Ms. Leong two thumbs up for creating job opportunities to the people of Macau. Macau is outpacing Las Vegas in terms of revenue, which Macau earned "more than quadruple that of Las Vegas."

Eggception!

Although my blog is focused on business talk, this post features a random and fun event!

I want to share a couple of very interesting videos with everyone! I found a few that captured an egg phenomenon. The credibility seems reliable because multiple sources have discovered the same thing. So, which came first? The chicken or the egg?

1. Big Egg from Elman511 in the United States


2. Double Egg - 2 eggs in 1! Mutant! from itzoa in Bulgaria


3. 日本一！？　大きな鶏卵！！　衝撃の中身 　BIG　EGG from la76ayk in Japan

China Posts First Quarterly Trade Deficit In 7 Years

Surprise! Just when everyone is criticizing China for "fixing" their Yuan, China throws a curve ball at us by posting a quarterly trade deficit of $1.2 billion for the first time since 2004. From WSJ's China Real Time Reports Blog, this is a significant step signaling the impact of rising commodity prices on China.

Xianfang Ren and Alistair Thorton from IHS Global Insight reports that "the headline data — that China recorded its first quarterly trade deficit since 2004 — may suggest some significant progress on the rebalancing agenda, but it remains far too early to make such a bold call." 

Lu Ting from Bank of America-Merrill Lynch is optimistic that China will most likely post a trade surplus for the year despite month deficits here and there. The slow trade growth is due to weaker terms of trade and rising prices.

By keeping Yuan at a lower exchange rate than other currencies, China continues to export its goods at a reasonable price. Can China keep this charade up? Will China be the next superpower?

Johnson & Johnson Pays $70 million for Bribery Charges

WSJ reports:

The Justice Department said the terms of the settlement reflect J&J's voluntarily disclosures to the government, its cooperation and the company's "role in identifying improper practices in the life sciences industry."

J&J's payments to settle the various probes include $48.6 million to the SEC in disgorgement and prejudgment interest, a $21.4 million criminal penalty to the Justice Department, and £4.8 million ($7.8 million) to the U.K. Serious Fraud Office.

A $70 million settlement to Johnson & Johnson seems like a drop in the ocean for this corporate giant. Compared to my previous post on AstraZeneca's $1.1 billion payment. Is bribery a less serious charge than tax evasion? Or is this a "sweetheart deal"?

Toyota, Nissan, and Honda resume production in Japan

The WSJ reports that Toyota, Nissan, and Honda will continue their manufacturing operations in Japan in late April. Unfortunately, the production will be at half of its original production volume, for an indefinite time length.  These 3 auto giants have discontinued their operations for three months due to the earthquake destruction. This has a ripple effect on its counterpart factories around the world -- Toyota, Nissan and Honda also have reduced production level at overseas plants.

This is good news for Japan. I'm glad to see companies are getting back on their feet. Hopefully Japan's economy will recover soon enough. Of course, this is great news for American auto makers. No longer will Japanese cars be the dominant force they once were. GM and others will finally gain the upper hand and win back the American consumer market.

Keep on Googlin'

Since the launch of its super search engine, Google also pioneered in launching brand new products: Gmail, Google Maps, Android OS, Google Checkout, etc. One of my newfound favorites is the Google Art Project, which gives users the interactive ability to visit museums from around the world. TIME Magazine praises it as “one of the longstanding promises of the Internet–of the last century’s worth of technology.” 

Many Googlers devoted their time to develop a project that handles crises. According to a recent news article from physorg.com, Google engineers are designing “a multi-lingual Crisis Response Page with links to resources such as emergency hotlines, relief organizations, maps, and a service for finding loved ones.” In the aftermath of Japan’s earthquake and tsunami disasters, the Official Google Blog reports:

In Japan, Person Finder went live within an hour of the earthquake. More than 600,000 contact entries have been made since then—more than all other disasters combined—and there have been several reports of people finding their loved ones safe.