Quarter 2 Year 2018

ECONOMIC NEWS:

 

ADMIN NOTES:

1. Remember that Peacock Industries is now CLOSED to all simulation teams. Any contracts entered with Peacock will be cancelled. If your firm needs finished goods, go to the "Chat" tab on the Globalview.org homepage to access the Message Board/Chat Room forum.and find other simulation teams that can supply your firm with finished goods.

 

2. To access the chat room/message board forum, please request the general forum password from your simulation administrator, Kristi. Kristi will send you the general forum password that will allow you to enter the platform. You may then register for an individual firm account with the forum to post messages or enter the chat room. The chat room/message board forum is how your simulation administrator Kristi will make special announcements mid-week, so it is important that all firms have an account set up.

 

3. To request a Special Report, please contact your simulation administrator, Kristi. The Special Report contains additional reporting data on all firms within a given market group (ROI, ROE, Current Ratio, Production Efficiency Factor, Average Compensation, and more). The report is updated each quarter with new data and we do not archive old reports, so please request the special report for a given quarter before the following quarter's deadline, or the report may not be available. There is a $2000 simulation dollar fee for each report, billed as a miscellaneous expense in the following quarter. The special report is the only additional report available outside of the simulation menus.

 


 

ECONOMIC NEWS:

GDP grew nearly 2% in the quarter.  It appears those economists predicting high rates of growth to be accompanied by serious inflation were correct.  Politicians in NAFTA and the EU are becoming more sensitive to inflation’s serious threat.  Most people on retirement incomes and pensions have some cost of living adjustments.  However, the increases are generally capped at 3% or less per year.  It appears that in 2018, a 3% COLA will not be sufficient.  Given that many are already being pressed to cover heating and medical bills, a ‘quiet’ crisis among the aged population is upon us.

 

Central banks keep absorbing excessive liquidity in the system.  T-Bill rates again moved up another ½%.  This is not good news to cash strapped firms engaged in major expansions or needing additional operating cash due to increased sales.  The exchange rates remained fairly stable.

Labor negotiations are underway in many NAFTA industries.  Unemployment is down to acceptable levels so workers, especially those in unions, are ready to push for a ‘fair’ wage.  There have been some protests about rising costs and low wages throughout the EU.  As of yet, EU unions and political parties have not publicly addressed the issue.