Greece Needs a Man With a Plan; Cruisin’ to Cuba; Starbuck$-ing Your Coffee

Ode to a Grecian fiscal burn…

Image courtesy of  jesadaphorn/FreeDigitalPhotos.net

Image courtesy of jesadaphorn/FreeDigitalPhotos.net

Today is yet another day where the world gets to sit back and cry as stocks all over the globe continue to go south because the Greeks just can’t seem to get their debt crisis under control. The mood might have improved had Greek officials bothered to come up with some sort of plan to help ease the situation. But as more than one eurozone official put it, they have “no concrete proposals.”  However, Greece’s Prime Minister Alexis Tsipras has a plan…to address the European Parliament on Wednesday, much to the irritation of many a European official, who aren’t eager to bail out Greece, yet again. Germany’s Chancellor Angela Merkel and French President Francois Hollande also have a meeting planned with Tsipras. But both leaders have very different ideas about how to handle Greece. The Germans do not want Chancellor Merkel to give in to the Greeks, once more, and would even like to see Greece out of the eurozone altogether. In fact, one German official would prefer if Merkel would just completely reject negotiations. France doesn’t see the benefits of these actions but doesn’t exactly want to pony up the cash either.

Bienvenido….

Image courtesy of Gualberto107/FreeDigitalPhotos.net

Image courtesy of Gualberto107/FreeDigitalPhotos.net

You can now add Carnival Cruise Lines to the list of operators making their way down to Cuba. “All of our research suggests there is huge pent-up demand for the Cuba experience,” a company spokesman noted. As part of the line’s “fathom” brand, travelers eager to visit the island nation will now have the chance to book that dream trip for a mere $2,990 per person – plus taxes and port fees. However, don’t bother bringing extra cash for gambling or booking reservations for snorkeling expeditions. Passengers aboard the Adonia ship, which carries just 710 passengers, will be required to spend eight hours of each of their trip days immersed in Cuban cultural experiences instead. If that sort of trip doesn’t appeal to you, then take it up with the U.S. government as this is all part of its rules and regulations in order to travel to Cuba.  At least you’ll have plenty of time to pack as the ships don’t set sail for the island nation until May of 2016. The tourism industry in Cuba generates more than $2.6 billion and plays a significant role in the nation’s economy. With the U.S.’s entry into the fold, you can expect that role to get even bigger.

Buzz-worthy?

Image courtesy of foto76/FreeDigitalPhotos.net

Image courtesy of foto76/FreeDigitalPhotos.net

Good news for Starbucks. But not for you. Coffee futures fell. A lot. But that cup of coffee you just picked up from the Seattle-based chain just got pricier as Starbucks started charging up to 20 cents more for its brew. The price per pound of coffee was over $221 back in October. But since then the price has fallen 44% to about $124.70 per pound. Overhead is the magic word here as Starbucks has a lot of it, from employee benefits, to rent to..well…coffee.  In fact, 88% of its costs come from goods sold – as in coffee . So, in keeping with corporate spirit, the coffee company has passed those price increases onto its customers. Funny how that works out. If you find yourself just a tad bit irritated by the price hike, then head on over to your local grocery store. and pick up some coffee products from J.M. Smucker. That company owns Folgers and has actually been cutting the cost of its coffee products since the price of coffee has been declining.

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Deutsche Bank CEO’s are Leaving Early and No One is Shedding Tears; McDonald’s Numbers Not Totally Horrible; Smack Talk at the G7 Summit

You’re Fitschen kidding me…

Image courtesy of biosphere/FreeDigitalPhotos.net

Image courtesy of biosphere/FreeDigitalPhotos.net

In case you were wondering how Wall Street feels about Deutsche Bank’s outgoing co-CEO’s Anshu Jain and Juergen Fitschen, then just look at the company’s stock price. Shares of Deustche Bank gleefully shot up over 8% at one point, on the news that the two men would be ditching their digs even earlier than planned. However, those gains weren’t just from the sheer joy of those early departures but also because investors totally dig their replacement, British banker John Cryan, who also happens to have a pretty decent track record. Cryan is what the cool kids call a “takeover specialist” which is something Deutsche Bank could use now more than ever seeing as how Jain and Fitschen couldn’t seem to stem the tide of legal issues that have been plaguing the bank, including a massive $2.5 settlement claim the bank had to fork over after some traders very rudely – and illegally, I might add – rigged some benchmark interest rates. In fact, most of Deutsche Bank’s troubles and scandals seemed to to come out of its investment bank, which coincidentally, was/is under Jain’s watch. The question remains as to whether or not Cryan can pull the largest German bank out of its funk. Except, first he’s got to come up with a plan. At least he speaks German. So score one for Cryan.

You deserve a break today…

Image courtesy of  atibodyphoto/FreeDigitalPhotos.net

Image courtesy of atibodyphoto/FreeDigitalPhotos.net

Things at McDonald’s weren’t nearly as bad as everyone thought they were going to be. They weren’t great but we’ll get to that. The Golden Arches saw same store sales drop .3% , which is definitely not good. However, at least those sales didn’t drop by .9%, the figure expected by all those super-educated analysts. To that I say booyah.  And then there was Europe. While everywhere else on the planet McDonald’s saw sales fall, McDonald’s needs to give much danke to Germany, France and the UK who showed the burger chain some major love in the form of a 2.3% gain. Analysts only expected Europe to bring in a tres  modest .6% gain. So you see, Chipotle, Panera and Shake Shack haven’t taken over the fast-food world. Yet. McDonald’s is in the midst of bringing about a “turnaround plan” which apparently includes offering breakfast all day. Except that’s only in – where else? – Southern California. Also, as part of the plan to reclaim its rightful place in the fast-food kingdom, CEO and President Steve Easterbrook has big lofty plans to rebrand McDonald’s as “a modern, progressive burger company.” Did you get all that?

Back at the G7 Summit…

Image courtesy of bplanet/Freedigitalphotos.net

Image courtesy of bplanet/Freedigitalphotos.net

There seems to be a bit of confusion coming from the G7 Summit. A French official told reporters that President Obama said the strong dollar is a “problem.” Then, the dollar slid against the euro. However, President Obama insists, “I did not say that.” But, still, the dollar still slipped, for the first time in three days, against the euro. In any case, other important stuff was presumably discussed at the conference where world leaders from the United States, Germany, France, Britain, Italy, Japan and even Canada talked about fiscal issues that are plaguing the world. But who doesn’t love a good “he said, he said,”  especially during a super important meeting between the world’s most powerful people. I could really see this one playing out on South Park.

How Do You Spell Economic Growth?; The Buck Still Hasn’t Stopped; Germany Puts the Brakes on Uber

Just keeps growing and growing…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

New numbers are out today that wont leave you feeling numb courtesy of the Institute for Supply Management. And guess what, oh patient consumers of the US economy? Things are looking up. Really up. Like expanding, upwards – not that that makes any sense. According to this super-duper important index, manufacturing in the US grew and grew leaving the estimates of super-intelligent economists in the wind. From a 57.1, this index grew to 59. This is major. Majorly good, as anything above a 50 means growth is happening. Not only is growth actually happening but it’s happening at its fastest pace since March 2011. Cha-ching, baby. So what does this mean for all of us? It means that almost all manufacturing sectors are growing and giving fuel to our ever-stubborn and sometimes fickle economy. Which is way more exciting than the season premiere of Scandal. Ok, well maybe not that exciting.

Buck wild…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The Dollar store war saga is back on again with Dollar General Corp upping its ante for Family Dollar Stores Inc with an offer that is worth $9.1 billion. After doing some ridiculously long division, that comes out to $80 per share. A whole $1.50 more than the previous offer Family Dollar Store rejected. Apparently Family Dollar was “concerned” about antitrust issues. That and also Family Dollar Store CEO Howard Levine’s job. A successful deal between Dollar General and Family Dollar would probably require Levine to become thoroughly acquainted with LinkedIn. So Family Dollar was instead seriously entertaining a smaller offer from Dollar Tree. But Dollar General is so convinved that there will be no antitrust issues that it graciously offered to sell 1500 stores and pony up $500 million in the event that there are indeed antitrust concerns (which I guess means there are no antitrust issues?). Dollar General even generously offered a $305 million break-up fee to Dollar Tree. If that’s not devotion, then I don’t know what is. As for Levine, well, he might want to polish up his resume…

U-burn…

Image courtesy of digitalart/FreeDigitalPhotos.net

Image courtesy of digitalart/FreeDigitalPhotos.net

Uber hit the skids in Frankfurt, Germany after the courts there issued an injunction against the ridesharing app. The suit, not surprisingly, was brought by Taxi Deuschland who was losing lots and lots of business to the San Francisco-based company and watching the five year old company grow five-fold in Germany. Uber,  currently valued at over $18 billion, was “found” by the courts not to be operating with the proper and necessary commercial permits, licenses and insurance. Whatever. Naturally, Uber is appealing.