BellSouth Corporation Merge With AT&T (12/29)
“AT&T Inc. (NYSE:T) today closed its acquisition of BellSouth Corporation, creating a premier global communications company committed to driving convergence, continued innovation, and competition in the communications and entertainment market. “Discuss why firms with relatively high fixed production costs merge or acquire other firms within the same market to increase their scale of operation (Scale). Review what key variables may drive up the valuation of any merger (Analysis). Discuss how increased scalability can enhance the firm’s valuation in the market.
3rd Quarter GDP Growth Slows (12/21)
“Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.0 percent in the third quarter of 2006, according to final estimates released by the Bureau of Economic Analysis.” Assess if the U.S. economic growth is indeed slowing down. (Exercise: Use Table 1 - Real GDP data to create a simple bar graph in Excel Data & Graph) Discuss what effects a slowing U.S. economy may have on world markets (Video). Review 2007 prospects for world markets and economy (Report).
No Inflation In November (12/15)
“ The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.1 percent in November, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.” Examine if inflationary pressure has been easing during the past few months (Data). Discuss why some forecasting firms are now predicting “the Fed to ease off the monetary brakes by reducing the federal funds rate in 2007 (Prediction).
The Fed Holds Its Short Term Interest Rate Steady (12/12)
“ The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Determine why the FOMC decided to keep its fed funds rate steady at the current level. Assess if the U.S. economy has slowed during the course of this year (Data). Discuss why Wall Street is calling for a cut in the short term interest rate (Analysis).
Job Market Signals Solid Growth (12/08)
“Job growth showed surprising strength in November, according to a government report that also showed the unemployment rate edging higher from a five-year low." Review the latest Employment Situation Summary report from the Bureau of Labor Statistics and identify which sectors or industries of the economy has lost or gain jobs in November (Report). Discuss how the increases in labor demand for college-educated and computer literate may have driven up their average hourly earnings in relative to other industries (Analysis).
Raise the Minimum Wage (12/07)
"For years, Democrats in Congress concerned about the struggles faced by low-wage workers have been trying to raise the federal minimum wage, which has been stuck at $5.15 an hour since 1997." Discuss why the real value of minimum wage has eroded since 1997(Data). Examine why hundreds of economists are lobbying to raising the Minimum Wage (Lobbying). What may be potential effects on teen or low skiled employment if the real minimum wage is raised (Data)? See how President Bush responded to lobbying efforts(Video).
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