An APPLE A Day - EU & Ireland (Tax)

 A huge tax recovery to the tune of 13 billion Euros is what the EU official says that  Ireland must recover. Not taken warmly the US cries "Wolf". Unfair it says the retroactive tax against the global giant APPLE Inc.

The fallout is just not tax alone it is also looked at the way the EU treats American businesses. The anomaly is a result of illegal aid granted to Apple for a period of twenty years. This helped the company lower its tax assessment and hence save.

According to the EU members cannot accord benefits to selected companies. The US says that this will undermine the business environment as far as Europe is concerned. The massive retroactive tax could result in the growth potential of the company as well as reduce employment.  

The drastically lower tax rate applicable to Apple subsidiaries in Ireland was to increase jobs in that country. About 1 percent tax is far lower than US's 35% and Ireland's 12.5%. This is an unfair cry the lawmakers in Europe and US as well.

Logically Apple is going to appeal the decision as have Starbucks and Fiat Chrysler. There are many US companies under the tax authorities' scanner hence more are yet to come.

This ruling may be technically right but then the retroactive enforcement would be a big discouragement for investment due to uncertainty whence the country's taxation arrangements could be undermined by the European Commission.  

Shivraj Chouhan Highlighting Madhya Pradesh for Business in US Visit

On a five day visit to USA, Shivraj Chouhan the Chief Minister of Madhya Pradesh highlighted the State for business opportunities. The Minister met with eminent business personalities in order to promote economic opportunities prevailing in the State also known as MP. 

The State although has vast tracts of forest cover is offering growth opportunities in urban surroundings. Indore with accessibility to major industrial towns like Mumbai and New Delhi is flourishing as far as trade and manufacturing is concerned. My major agglomerations like Bhopal (Capital), Jabalpur and Gwalior lag behind.

On major platforms he highlighted MP as investor friendly State bereft of  terrorism, labor problems and red tape. Stable power, friendly policies and strong agriculture all that are conducive to business exist here. The State is rich in mineral wealth and labor resources.  Though skilled man power is limited whence compared to major economic hubs in India, nevertheless it is not a problem with rising number of technical and management institutes.

Shivraj Singh stressed upon certain sectors like IT, manufacturing, tourism, food processing and pharma which is prepared for growth. In spite of all the positive aspects at many places the State lacks proper road infrastructure and resources that are exigent for manufacture. Nevertheless excellent connectivity vis a vis railways, transportation and flights have now come into picture.    

He invited American Businessmen to Global Investors Summit being organised on 22 and 23 of October 2016 at Indore the commercial hub of this heartland region.

It should be noted that major public sector manufacturing units concerned with defense, power, electronics, agrofood processing and engineering are based since many years. Hence Madhya Pradesh is no stranger to  commercialization only the full potential has to be explored.     

Scotch Whiskey in India...Hic!

In spite of more and more states joining the dry bandwagon the consumption of liquor in India is on the rise. The rich and no so rich are all game for whisky more often as a social trend rather than a habit. One of the most expensive and desired types of alcohol in India is scotch whisky. Apart from being heavenly smooth, some types contain a smoky flavor thanks to the use of peat mass for firing in the distilleries. 

The malted barley mash is distilled, brewed, and matured using the water and peaty in the peat bogs of Scotland (Islay) this liquor is one of the most pricey in the World.  In India scotch is a prized catch. A status symbol unparalleled. The most popular brands in the country are as follows:

Johnnie Walker Red/Black/Blue Label Scotch - Diageo
Chival Regal - Pernod Ricard
Glenlivet Single Malt
Ballantine 

Many more brands are popular besides those mentioned above. But presumably, the above brands have a higher market consumption than the rest. 

The battle-hardened brands are Diageo and Pernod Ricard and the stiff competition amidst them is the talk of the industry. Though the figures are highly contentious Chival is definitely tightening the noose over its rival the famous Johnnie Walker stuff.    

Steel No More Steel

After a lull in steel prices, the market seems to be picking up and a brighter forecast spells a steady rise in the segment. This is also the same with iron ore partly due to the rise in demand from the Chinese market. The demand from China seems to be improving steadily as demands arise from its infrastructure development projects. 

There has been an improvement in steel demands in US and Europe as well. The imposition of anti-dumping duty has also benefited concerns like Arcelor Mittal.  

But the biggest concern in news is the Tata's Steel concerns in the UK. Due to hurdles regarding the pension fund which has created a liability of seven hundred million pounds, it seems a sell-off is unlikely. A potential strategic partnership seems to be a better bet for the ailing business.  But this is a tardy process and is at a preliminary stage.  Another recourse is to cut costs as much as possible. How this will be brought is not clear.     

The problem has arisen due to low prices in the steel market. This was in making as the World was oversupplied with steel. The China-driven demand faced a standoff due to slack in its industries. To make matters worse the local production of Chinese arose significantly. Excess production was dumped outside the country triggering stiff competition from global manufacturers. 

The rising prices have raised some hopes till the Chinese concerns raise their output to offset the gain in prices. 

Ringing Phone - Cell Phone for $4

Ringing Bells is a company based in New Delhi that promises to sell Android phones for Rs.251. The Indian startup is selling the phones at a loss and hopes for a Government subsidy to aid the project. The aim of Ringing Bells is to spread mobile phones all over the country especially covering those who can ill afford these devices. Aiming at creating a communication revolution in India it plans to sell a number of products many of which will be sold at a profit.     

As per the company, almost 200000 cell phones are ready to be shipped all across the Nation. This is despite that many players find the price of the smartphone incredible. Is there a catch somewhere that the owner of the company  Mr. Goel strongly denies it? 

With a market scaling more than one billion subscribers success is a cheese and a big one at that. The gadget feature almost all that big brands promise despite the price. It is tied up with some companies for pre-installed apps which are supposed to bring the cost down since the company does not have any manufacturing setup.    

In absence of manufacturing set up Ringing Bells is importing knocked-down kits from Taiwan. But the critics are still in disbelief at the incredible pricing is this a publicity gimmick or what?

Post Brexit Outcome & Adjustments Next

What happens next is a major question that the Brits face post-exit from the European Union. Instability and adjustment are the imperative that the economy may face. The pound sterling has already seen a downfall and banks easing regulations for lending subsequently.  This is after the Bank of England has infused about 150 pounds into the National economy.

After many years within the EU Britain decided to leave. This decision was due to immigration policies that the people of the UK did not favor. This was evident post-voting. Apart from economic uncertainty, there was significant political turmoil especially within the Conservative Party amidst those who favored separation. The major opposition, Labor Party experienced some trouble as well.    

Twenty-eight countries in Europe are tied to Article fifty after the departure procedure is confirmed there will be twenty-seven left. The UK will join Norway at the independent window. But only after the formality is commenced i.e letter to the European Council of intent to leave will the uncertainty evaporate. The effect so far has been catastrophic to some extent.            

In wake of Scotland's desire to remain within the EU things fell into the quagmire of total uncertainty since affirmative would be required from the Scottish Parliament albeit blocking cannot prevent the separation.     

The turmoil of exit read further the article on The Atlantic

Microsoft's LinkedIn Acquisition

Finding going tough in the search market and its products challenged by Google Microsoft is diversifying into being a service provider of shorts. In spite of the expansion of its core businesses quite successfully the growth graph was much to be desired as per the company's liking.    

This has propelled the company into introducing new business models. Greater emphasis is being given to serving business customers hence the acquisition.    

LinkedIn justifies the purchaser's shifting strategy with a large base of corporate professionals and an equally large base of seekers for jobs and contacts. The online service provider has an overlap with Microsoft's customer base making the purchase a sensible act.     

The giant is certain it will integrate with many offerings of LinkedIn and propel the company forward. After Steve Balmer's desperate effort to boost the revenue, Satya  Nadella is seeking new openings.    

Oil Uptick The Ripple Strikes Back

The merciful slow down in oil was a big relief for Nations highly dependent on energy imports. The fossil fuel responsible for global warming is here to stay. No matter what progress is being made in alternative fuels oil remains the major source.    

Well it is a simple global demand and supply game as the Oil Market Report portrays.  The increase in production some time back was due to fracking boom in USA, Iraq recovery and production splurge by KSA. Weak economies dithered the upward rise as consumption receded.   

Inspite of Iran sanction being no more and the 700000 mpd addition the upward swing is noticeable. This is due to natural disasters, political uprisings and terrorist sabotage in Nigeria.  The low prices of crude had encouraged usage in many countries as well as by fast developing Nations like India.    

Low prices has also discouraged fracking in the oil fields of Texas in USA. Shale oil production exhibits a catch 22 situation as reduced production in case of low prices would experience an upward swing if prices bounce back sufficiently higher.    

From 33$ to present fifty dollars the crunch is being felt but not so much as it was during high prices over 100$ per barrel.  

Made in China

The impact China has made through product exports in recent times is phenomenal. World over Chinese made products rule the roost. Most of the popularity lies in countries like Pakistan, Australia, India, Canada, USA and Europe. For   many countries China is the main trading partner.  

Mass production is the key to this phenomena and the cost matters as well. Hence both factors impel these countries to import. It is a fair game and any country that fulfills these two factors can export in large quantities. But the buck does not stop here quality and precision matters as well.    

Hence rapidly gained markets are fast dwindling as users realize the imperfect products they land up with. Like in India we have experienced the low reliability of many imports from China. Many products have failed quality tests pushing consumers away. 

The Make in India initiative should propel manufacturing in India that is the objective. Will the country be able to achieve excellence in manufacturing and challenge the leader? Well time will tell.  

Promotional Products for Business

Business promotion is key to success all over the World. In order to increase sales or make an entry into a particular field entrepreneurs resort to create visuals that are appealing. This creates an image of the products in the mind of the customers and hence lure them to make a purchase. This is a form of advertisement which may include documentaries, hoardings and items that are brought into every day use. 

The items are cleverly designed keeping the cost in mind since they have to be used in bulk quantities. This is one of the key aspects of marketing where traditional and modern product line is used to imprint the logo or an ad message.          

Also known as promotional marketing there many companies that utilize this strategy to gain popularity and hence increase sales. The items are either utility or attractive showpieces which are made in large quantities. The distribution is important since the ad material should land in the hands of targeted audience.    

The key to a successful campaign is innovation whence building product line is concerned. The sales force should be effective in distribution to the right people or sections of the society. An experienced marketing tea, is required in order to make the campaign successful.  

The large line of products that are manufactured using various technologies offer a good potential for success. The innovations are more attractive especially whence technology is involved. But this does not mean that traditional art forms are less effective. The art forms are expensive but mass production using technology fetches the price down with the creation of duplicate.        

Most effective are the specialty promotions that fetch results. The imprints are widely used in order to attract consumers to the product. The expertise plays an important role in the whole campaign. Hence a unique marketing field is created.