If you have young
children or grandchildren, you may have read “Alexander and the Terrible, Horrible,
No Good, Very Bad Day” by Judith Viorst. Well, that’s what last week was like on
the European continent from an economic perspective.
Hopes of economic
recovery were put on hold when gross domestic product (GDP) figures across the
region showed no – nada, zero, zip – growth overall during the second quarter
of 2014. First quarter’s growth (0.2 percent) hadn’t been all that impressive
either, but at least it was headed in the right direction. The strongest second-quarter
performers were Netherlands, Spain, and Portugal, according to The Economist. However, some of Europe’s
largest economies (Italy, Germany, and France) contracted during the period.
Geopolitical
unrest prompted the Euro area’s poor showing. Turmoil in the Middle East,
violence in Ukraine, and sanctions against Russia have, among other things, led
to a slowdown in demand for luxury goods that has negatively affected European
economies. After delivering strong performance in 2013, the MSCI Europe
Textiles, Apparel, & Luxury Goods Index was down more than 10 percent in
the month of July and down 4.75 percent for the year. China’s anti-bribery and
corruption campaign also has reduced demand for luxury goods, according to Bloomberg.
The Euro area’s
economic growth (or recent lack thereof) has sparked fears of deflation in the region.
The Economist offered this insight:
“Deflation would
be particularly grave for the euro area because both private and public debt is
so high in many of the 18 countries that share the single currency. Even if
inflation is positive, but stays low, it hurts debtors as their incomes rise
more slowly than they expected when they borrowed. If deflation were to set in,
the effects would be worse still: when prices and wages fall, debts, which do
not shrink, become harder to repay.”
Woes across the
Atlantic put a shine on markets in the United States, according to Reuters. Major U.S. stock markets
finished the week ahead and benchmark U.S. treasury yields finished the week at
a 14-month low.
at a certain age, you begin to understand
why your elders shook their heads at newfangled ideas like
television, 24-hour convenience stores, automobiles, and buying on credit. Here
are a few business and marketing trends that may change the way baby boomers think
about things:
·
Where words fail,
music speaks.
Athletic shoe companies, fast-food retailers, and luxury brands are using
digital music services to amplify their brand identities and engage with
customers. For instance, a well-known cruise line’s playlist includes tunes
with fun summer vibes, while a shampoo brand’s list embraces
singing-in-the-shower songs.
·
Have a commercial
with that commercial.
A popular music identification app is helping television networks and
advertisers connect with consumers’ second screens – their smart phones and
tablets. The app’s logo appears during commercials and TV shows. If viewers
interact with the logo, then the show or product has opportunities to re-market
to viewers through their mobile devices.
·
It’s a meal
ticket, literally.
Some of the hottest restaurants around aren’t taking reservations anymore.
They’re selling tickets in advance. It’s a business decision that eliminates
the cost of last-minute cancellations which may lead to better prices for
diners, according to experts cited by National
Public Radio.
·
Want to attract a
crowd?
New and growing businesses have a lot of options when it comes to raising
capital. If a business wants to borrow money, in addition to traditional
sources, they can turn to peer-to-peer and social lending platforms. If a
company wants equity investors, they may pursue equity crowdfunding. In fact, a
recent study reported:
“Today, it’s
apparent the crowdfunding phenomenon has indeed affected the VC (venture
capital) ecosystem – as a complementary force. With thousands of
consumer-oriented hardware campaigns looking for financing for everything from
smart watches to beacon technologies, crowdfunding platforms… have provided VC
investors with a valuable source for dealflow.”
Whether
you’re a consumer or a businessperson, it’s important to remain aware of the
ways in which the world is evolving and take advantage of opportunities that
can make your life easier and/or your business more successful.
Weekly Focus – Think About It
“If your actions
inspire others to dream more, learn more, do more and become more, you are a
leader.”
--John Quincy Adams, Sixth President of the United States
No comments:
Post a Comment