Microsoft Cuts Even More Jobs; Greece Banking on Another Bailout; Barclays Boots its Chie

NO-kia…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

It’s not exactly a good day at Microsoft today  (or Greece, for that matter but we’ll get to that a bit later). The tech firm just announced that 7,800 more layoffs are coming down the pike, on top of the 18,000 layoffs the company announced last year. It seems the Windows maker just isn’t at the forefront of the latest tech era and its hitting the company in its portfolio. Microsoft had already sold off its online advertising business to AOL but a lot of their latest ills are courtesy of its $7.2 billion acquisition of Nokia. As luck would have it, that not-so-little purchase to make headway into the smartphone market wasn’t all that smart. Microsoft now has plans to write down $7.6 billion on the Nokia unit. The company just couldn’t seem to make strides against the reigning competition from Apple’s iPhone and Google’s Android. Microsoft’s smartphone market share was just an abysmal 3% – a major letdown from a company who had so often dominated tech realms.

Here we go again…

Image courtesy of africa/FreeDigitalPhotos.net

Image courtesy of africa/FreeDigitalPhotos.net

Well, Greece finally whipped out its big grand plan which definitely loses points for lack of originality. Like a teenager who doesn’t seem to want to learn from his or her mistakes, the cash-strapped, debt-infused country has asked for yet another bailout. This time around, Greece asked for a three year bailout from the annoyed eurozone’s rescue funds. However, Greece is promising to implement pension and tax reforms. To be fair, no real details were actually given. Hmmm. Greek officials said they would map out a “comprehensive and specific reform agenda” by tomorrow. We’ll see about that. Now all those eurozone finance ministers have to decide if they’re going to give in to Greece. And while Greece’s Prime Minister, Alexis Tsipras, wants to reach a deal with creditors that needs to be fair on both sides, he also warned that his peeps need to be on board. Otherwise, no dice. What Tsipras and the fine people of Greece don’t dig are austerity measures. Any whiff of austerity and chances are no deal will be reached and more fiscal chaos will ensue. U.S. Treasury Secretary Jacob Lew finally commented on the situation stressing that Europe ought to help Greece restructure its debt. Which would be super-great because maybe then stocks all over the world will finally cooperate and go up instead of taking bad financial cues from Greece.

The skills to pay the bills…

Image courtesy of biosphere/FreeDigitalPhotos.net

Image courtesy of biosphere/FreeDigitalPhotos.net

Major drama coming out of Barclays today, where Chief Executive Antony Watkins received an unwelcome surprise – he got the boot. Fired. Shown the door. In a statement, Barclays, which has seen its share of scandal in the last few years, said “a new set of skills” was needed for the individual who will take the reins at the company. Ouch. Apparently, officials at the bank thought Watkins wasn’t doing enough to dig Barclays out of its scandal-laden pit. Board chairman, John McFarlane, will serve as interim chief until a more permanent replacement can be found –  one who presumably possesses that much desired skill-set. Barclays, Britain’s biggest bank, is currently staring down the wrong end of fines and investigations over its role and manipulation of London Interbank Offered Rate (LIBOR) as well as its other un-flattering role in foreign exchange rate manipulation. Nice, huh?

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Is Xiaomi the Next Big Thing to Hit the Smartphone Scene?; Russia’s Ruble in the Rubble; Shake Shack Shaking Up Wall Street

Third’s the word…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Here’s a riddle for you: If Samsung is the number one smartphone maker in the world, with Apple perched at the number two spot, then who has taken third? Hint: It’s not LG. Or Nokia. Or Motorola. Or… In fact, the number three smartphone maker in the world has yet to reach our shores, even though the company’s got a $45 billion valuation and is slated to become the most valuable IPO. Ever. In case you haven’t figured it out – and it’s okay if you didn’t –  I am talking about Chinese smartphone maker Xiaomi. The company which, just pulled in another $1.1 billion in funding, is number one in the mammoth Chinese market. It also happens to be the fastest growing smartphone maker and the most valuable start-up in the world right now (yes, even more so than Über and Pinterest, if you can believe it). And by fast I mean the company’s sales are up 211% in the third quarter, having taken a 5% bite out of the market share. Xiaomi, whose Mi4 smartphone coincidentally, bears a striking – make that very striking – resemblance to the iPhone, actually makes most of its money from apps and add-ons, and not from the phone itself. It also apparently has some nifty marketing strategies, though I can’t weigh in on that one. Xiaomi is currently focusing on branching out into places like Indonesia, Russia and Mexico with no immediate plans to come to the US, which clearly hasn’t been a problem for it.

Is that a recession I smell…

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Russia’s not having a very good week. News is out now that the economy there shrank for the first time in five years. The GDP fell by .5% with the Russian government saying that next year the GDP could go down by as much as 4%. How do you say “yikes” in Russian? The ruble is continuing its slide,  falling the most in two weeks, and is about 40% weaker than the dollar. It’s down by about 70% since the beginning of the year. Of course the international sanctions imposed on Russia by other countries who were not cool with its incursions into the Ukraine are being blamed. And, of course, Russia then decided to block imported food – a move that has not been good for anyone on either side of the issue. Then there’s the price of oil which keeps dropping and dropping and…well, it’s no fun to see oil numbers drop if you happen to be the largest energy exporter and well, that’s exactly what Russia is.

Yeah, it’s that good…

Image courtesy of KEKO64/FreeDigitalPhotos.net

Image courtesy of KEKO64/FreeDigitalPhotos.net

Apparently the Shake Shack is so good that Wall Street will get to partake of its delicacies in the form of a $100 million IPO that the company just filed today. Conceived by restaurateur Danny Meyer, the chain will be listed on the New York Stock Exchange under the aptly named ticker symbol SHAK. The company began as a single “shack” in New York City’s Madison Square Park and quickly grew to 63 locations…worldwide, with half of those operated by licensees. Shake Shack reported sales of $140 million in 2013, a scrumptious $81 million gain from the year before. Investors are awfully curious to see how Shake Shack will fare considering the mixed results the market has seen from food companies like perennial fave Chipotle to less than stellar performer Noodles & Co. If that’s not enough to whet your IPO appetite, then how about the fact that they pay an average hourly wage of $10.70 with health benefits and paid time off?