This document provides an overview of economics concepts for journalists. It discusses three main types of corporate financial disclosures - profit and loss statements, balance sheets, and cash flow statements. When reporting on earnings, journalists should focus on net profit and revenue year-over-year changes. The document also summarizes an article about Hong Kong's Hutchison Whampoa reporting a 12% rise in profits and explains economic growth and business cycles.
The document summarizes key aspects of Keynes' monetary theory and the Keynesian model. It introduces liquidity preference theory, explaining the speculative, precautionary, and transactions motives for holding money. It discusses the money market equilibrium where money supply equals money demand. The IS-LM model is explained as interpreting Keynes' theory, with the LM curve sloping upward and the IS curve downward, intersecting to determine equilibrium income and interest rates. Money is integrated into the real economy through its effect on investment and interest rates.
La -boy deliveryman aids heart attack victim sign-onsandiego.comLa Z Boy Furniture
A La-Z-Boy deliveryman, Hugo Peña, saw a neighbor of a customer lying unconscious on a porch and called an ambulance. Peña waited with the man, who had suffered a heart attack, until paramedics arrived. Peña was honored for going above his duties to help the customer recover. Both Peña and the customer were praised for their actions by La-Z-Boy and local officials.
This document summarizes the key findings from an analysis of past deleveraging cycles in the US economy in the mid-1970s and early 1990s. Some of the main points include:
- Past deleveraging cycles were actually good periods for stock market performance and saw leadership from consumer discretionary and technology stocks.
- Deleveraging is a lagging phenomenon that typically occurs late in an economic slowdown.
- Housing activity, as measured by building permits, tended to bottom out early in past deleveraging cycles and then rise steadily through the cycle.
- Inflation tended to decline during deleveraging periods, suggesting disinflation may lie ahead.
- Mon
This document provides a quarterly report for Western Reserve Hedged Equity (WRHE) fund for the second quarter of 2005. It summarizes the fund's performance for various periods and compares it to market benchmarks. It also discusses the fund's investment strategy and outlook, including being bullish on growth stocks and bearish on "conventional value" stocks that they believe have formed a bubble with overvalued valuations. The document analyzes various companies and sectors that the fund has investments in, both long and short positions.
The document discusses the aggregate demand-aggregate supply (AD-AS) model used to analyze short-run economic fluctuations. It explains that in the short-run, real GDP fluctuates around its long-run trend due to shifts in AD and SRAS curves, which can cause changes in output, employment, and price levels. However, in the long-run the economy returns to potential output and natural unemployment as prices adjust and SRAS becomes vertical. Events like recessions, oil price shocks, and fiscal/monetary policy changes are analyzed using the AD-AS framework.
This document defines key terms related to business cycles and fluctuations such as recessions, peaks, troughs, expansions, and leading economic indicators. It describes the typical phases of a business cycle as consisting of recession, trough, expansion and peak. It also discusses some common causes of business cycles, including changes in investment and innovation, monetary policy decisions, and external shocks. The document notes that leading economic indicators and composite indexes can be used to forecast changes in GDP and the timing of recessions and recoveries.
The document summarizes key aspects of Keynes' monetary theory and the Keynesian model. It introduces liquidity preference theory, explaining the speculative, precautionary, and transactions motives for holding money. It discusses the money market equilibrium where money supply equals money demand. The IS-LM model is explained as interpreting Keynes' theory, with the LM curve sloping upward and the IS curve downward, intersecting to determine equilibrium income and interest rates. Money is integrated into the real economy through its effect on investment and interest rates.
La -boy deliveryman aids heart attack victim sign-onsandiego.comLa Z Boy Furniture
A La-Z-Boy deliveryman, Hugo Peña, saw a neighbor of a customer lying unconscious on a porch and called an ambulance. Peña waited with the man, who had suffered a heart attack, until paramedics arrived. Peña was honored for going above his duties to help the customer recover. Both Peña and the customer were praised for their actions by La-Z-Boy and local officials.
This document summarizes the key findings from an analysis of past deleveraging cycles in the US economy in the mid-1970s and early 1990s. Some of the main points include:
- Past deleveraging cycles were actually good periods for stock market performance and saw leadership from consumer discretionary and technology stocks.
- Deleveraging is a lagging phenomenon that typically occurs late in an economic slowdown.
- Housing activity, as measured by building permits, tended to bottom out early in past deleveraging cycles and then rise steadily through the cycle.
- Inflation tended to decline during deleveraging periods, suggesting disinflation may lie ahead.
- Mon
This document provides a quarterly report for Western Reserve Hedged Equity (WRHE) fund for the second quarter of 2005. It summarizes the fund's performance for various periods and compares it to market benchmarks. It also discusses the fund's investment strategy and outlook, including being bullish on growth stocks and bearish on "conventional value" stocks that they believe have formed a bubble with overvalued valuations. The document analyzes various companies and sectors that the fund has investments in, both long and short positions.
The document discusses the aggregate demand-aggregate supply (AD-AS) model used to analyze short-run economic fluctuations. It explains that in the short-run, real GDP fluctuates around its long-run trend due to shifts in AD and SRAS curves, which can cause changes in output, employment, and price levels. However, in the long-run the economy returns to potential output and natural unemployment as prices adjust and SRAS becomes vertical. Events like recessions, oil price shocks, and fiscal/monetary policy changes are analyzed using the AD-AS framework.
This document defines key terms related to business cycles and fluctuations such as recessions, peaks, troughs, expansions, and leading economic indicators. It describes the typical phases of a business cycle as consisting of recession, trough, expansion and peak. It also discusses some common causes of business cycles, including changes in investment and innovation, monetary policy decisions, and external shocks. The document notes that leading economic indicators and composite indexes can be used to forecast changes in GDP and the timing of recessions and recoveries.
This document provides an introduction to economic journalism. It defines economics as the study of how people deal with scarcity and make choices about allocating limited resources. Key economic concepts discussed include supply and demand, incentives, business cycles, and how governments measure and influence economic performance. The role of economic journalists is to provide context and perspective on these issues.
This document provides an overview of mergers and acquisitions (M&A), initial public offerings (IPOs), and international trade. It discusses different types of M&A deals, global M&A activity from 2004-2012, the M&A process, questions to consider in M&A deals, and valuations. It also covers the IPO process, trade terminology, arguments for and against free trade, government trade policies, and the relationship between trade and currency values.
This document provides an overview of foreign exchange and bond markets. It discusses the major global currencies and daily forex trading volumes. It also outlines factors that influence currency values such as interest rates, inflation, and trade imbalances. Additionally, it defines what bonds are, how bond markets work, and key factors like interest rates and credit ratings that affect bond prices. Yield curves and spreads are also explained as tools used in analyzing bond markets.
The banking system channels savings from individuals to borrowers. As financial intermediaries, commercial banks take deposits and make loans. They must keep a portion of deposits as reserves set by the central bank. When the reserve ratio is lower, banks can lend out more, expanding the money supply through the money multiplier effect. Non-bank financial institutions also participate in shadow banking.
This document provides an overview of financial markets for journalists. It discusses the key characteristics of markets, including that they bring together buyers and sellers, allow standardized trading of fungible products by any participant, and make trade information public. The document also summarizes the main types of financial markets like commodities, stocks, bonds and forex, and the participants, price formation processes, and factors that influence prices in these markets.
The document provides an overview of analyzing corporate profit and loss statements. It discusses key components of a P&L statement such as revenue, expenses, profit, earnings per share, and how it shows the path from revenue to net profit. It also discusses interpreting P&L statements, including checking footnotes and understanding the treatment of items like depreciation, subsidiaries versus associates, and minority interests. An example P&L statement is then presented for Hutchison Whampoa Limited to demonstrate these concepts.
The document provides an overview of international trade concepts including absolute advantage, comparative advantage, trade barriers, and trade policies. It discusses how free trade creates winners and losers between importing and exporting countries. Specifically, domestic consumers in importing countries and domestic producers in exporting countries tend to benefit from free trade, while the opposite is true for domestic consumers in exporting countries and domestic producers in importing countries. The document also outlines the effects of tariffs on prices and trade volumes.
PCCW reported a 20% decline in first-half net profit due to lower revenue contribution from its property development unit. Net profit fell to HK$656 million from HK$822 million a year earlier, while revenue declined 2% to HK$11.37 billion, mainly due to smaller contribution from its property development subsidiary. Revenue from PCCW's core telecommunications services rose 11% and from its broadband TV business increased 45%, but it did not offset the decline in property revenue. An analyst said net profit was below expectations due to continued investment in the TV business.
This document provides an overview of government economic policy tools used by central banks and finance ministries. It discusses fiscal policy tools like taxation and government spending and how they can be used to stimulate or contract the economy. It also explains monetary policy tools controlled by central banks, including interest rates, required reserve ratios, and open market operations to influence money supply and achieve goals of steady growth and low inflation. Specific policy examples from the US, UK, Japan, and Europe are also mentioned.
The document discusses key economic goals of governments including full employment, steady annual growth, and stable prices. It then covers concepts of absolute and comparative advantage in determining what goods countries will produce. It provides an overview of common economic indicators used to measure economic performance such as GDP, CPI, unemployment, and money supply. It also discusses important considerations for analyzing and reporting on economic data.
The document provides an overview of key concepts for covering stock markets and shares, including:
- What a share represents in terms of ownership stake and entitlement to profits
- Factors that influence share prices such as supply and demand, the economy, and company earnings
- How share prices reflect market expectations about a company's future performance
- Tools for analyzing stocks such as indexes, sectors, market capitalization, price-earnings ratios, and technical indicators
- Sources of information like brokerage ratings and finding contextual factors behind price movements
The stock market rebounded after earlier losses as concerns eased over European banks' access to funding. French banks reassured markets and investors watched for progress on Europe's debt crisis. Major U.S. stock indices ended higher, led by gains in industrial, materials and tech stocks, as signs pointed to stabilization in the markets.
Hutchison Whampoa reported a 12% rise in net profit to HK$14.17 billion in 2009, despite a 14% drop in revenue to HK$300.55 billion. Gains from property and asset sales offset losses in its energy and 3G businesses. While losses in 3G operations fell 67%, the division is still dragging on earnings. However, results from property completions and asset sales boosted profits.
The document provides an overview of covering company news as a financial journalist. It discusses why companies exist, the differences between private and public companies, and how public corporations function. It also outlines various types of corporate stories to cover, including earnings announcements, new products/business lines, executive changes, initial public offerings, and secondary fundraising. Key details on how to report on these stories such as common questions to ask and elements to include in articles are also reviewed.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy. It discusses established indicators like the Consumer Price Index and copper prices. It also categorizes indicators as lagging, coincident, or leading in relation to economic activity. The document advises that good indicators are original, measure important economic activity accurately and consistently, and correlate closely with broader economic measures. It gives some hypothetical alternative indicators as examples from past classes.
This document provides an overview of corporations for journalism students. It discusses why companies exist, the difference between private and public companies, key industries, how public companies function, costs and profit, types of corporate stories to cover, and earnings announcements. The document is from a class on economics for journalists that focuses on reviewing supply and demand, examining the economic efficiency of gifts, and discussing corporations.
The document contains three proposals for small business profiles to cover:
1. A Chinese company called Yage Era Corp. that deletes negative posts and links online for clients and how it navigates regulations in a growing market.
2. A cat cafe in Hong Kong called The Cat Cafe that lost its restaurant license but continues operating as a cooking school with resident cats.
3. A music therapy center in Hong Kong called Pang's Music Therapy Center that offers treatments to both special needs and normal clients, and the growing but limited market for music therapy in Hong Kong.
This document provides an overview of week 2 topics from an economics course for journalists, including supply and demand. It discusses key concepts such as scarcity, opportunity costs, comparative advantage, and how supply and demand determine market prices. Government policies like rent control are also examined. An example writing assignment is given asking students to explain why a dog walker earns more than nurses based on economic concepts from class. Assessment criteria for the assignments focus on correctly applying relevant economic ideas and constructing a logical argument.
This document provides an overview of a course on global financial journalism. It discusses key themes like how everything in today's global financial system is interrelated and how business journalism isn't just about numbers but also about people. It defines what constitutes business news and explains why business journalism is important. The document outlines learning outcomes, assignments students will complete, reading assignments, the assessment process, and the course schedule. The goal is for students to learn to write different types of business news stories and analyze financial documents and events.
This document provides an introduction and overview for a course on economics for journalists. It defines economics as the study of how people deal with scarcity and make choices with trade-offs. The course will cover topics like how economies, companies, banks, markets and governments work, and economic theories. Students will write assignments, do a group project, and take a midterm and final exam. The instructor emphasizes applying economic concepts clearly and citing sources to avoid plagiarism. The first assignment is to set up an RSS reader for daily economic news and write an economic diary entry.
This document provides an introduction to economic journalism. It defines economics as the study of how people deal with scarcity and make choices about allocating limited resources. Key economic concepts discussed include supply and demand, incentives, business cycles, and how governments measure and influence economic performance. The role of economic journalists is to provide context and perspective on these issues.
This document provides an overview of mergers and acquisitions (M&A), initial public offerings (IPOs), and international trade. It discusses different types of M&A deals, global M&A activity from 2004-2012, the M&A process, questions to consider in M&A deals, and valuations. It also covers the IPO process, trade terminology, arguments for and against free trade, government trade policies, and the relationship between trade and currency values.
This document provides an overview of foreign exchange and bond markets. It discusses the major global currencies and daily forex trading volumes. It also outlines factors that influence currency values such as interest rates, inflation, and trade imbalances. Additionally, it defines what bonds are, how bond markets work, and key factors like interest rates and credit ratings that affect bond prices. Yield curves and spreads are also explained as tools used in analyzing bond markets.
The banking system channels savings from individuals to borrowers. As financial intermediaries, commercial banks take deposits and make loans. They must keep a portion of deposits as reserves set by the central bank. When the reserve ratio is lower, banks can lend out more, expanding the money supply through the money multiplier effect. Non-bank financial institutions also participate in shadow banking.
This document provides an overview of financial markets for journalists. It discusses the key characteristics of markets, including that they bring together buyers and sellers, allow standardized trading of fungible products by any participant, and make trade information public. The document also summarizes the main types of financial markets like commodities, stocks, bonds and forex, and the participants, price formation processes, and factors that influence prices in these markets.
The document provides an overview of analyzing corporate profit and loss statements. It discusses key components of a P&L statement such as revenue, expenses, profit, earnings per share, and how it shows the path from revenue to net profit. It also discusses interpreting P&L statements, including checking footnotes and understanding the treatment of items like depreciation, subsidiaries versus associates, and minority interests. An example P&L statement is then presented for Hutchison Whampoa Limited to demonstrate these concepts.
The document provides an overview of international trade concepts including absolute advantage, comparative advantage, trade barriers, and trade policies. It discusses how free trade creates winners and losers between importing and exporting countries. Specifically, domestic consumers in importing countries and domestic producers in exporting countries tend to benefit from free trade, while the opposite is true for domestic consumers in exporting countries and domestic producers in importing countries. The document also outlines the effects of tariffs on prices and trade volumes.
PCCW reported a 20% decline in first-half net profit due to lower revenue contribution from its property development unit. Net profit fell to HK$656 million from HK$822 million a year earlier, while revenue declined 2% to HK$11.37 billion, mainly due to smaller contribution from its property development subsidiary. Revenue from PCCW's core telecommunications services rose 11% and from its broadband TV business increased 45%, but it did not offset the decline in property revenue. An analyst said net profit was below expectations due to continued investment in the TV business.
This document provides an overview of government economic policy tools used by central banks and finance ministries. It discusses fiscal policy tools like taxation and government spending and how they can be used to stimulate or contract the economy. It also explains monetary policy tools controlled by central banks, including interest rates, required reserve ratios, and open market operations to influence money supply and achieve goals of steady growth and low inflation. Specific policy examples from the US, UK, Japan, and Europe are also mentioned.
The document discusses key economic goals of governments including full employment, steady annual growth, and stable prices. It then covers concepts of absolute and comparative advantage in determining what goods countries will produce. It provides an overview of common economic indicators used to measure economic performance such as GDP, CPI, unemployment, and money supply. It also discusses important considerations for analyzing and reporting on economic data.
The document provides an overview of key concepts for covering stock markets and shares, including:
- What a share represents in terms of ownership stake and entitlement to profits
- Factors that influence share prices such as supply and demand, the economy, and company earnings
- How share prices reflect market expectations about a company's future performance
- Tools for analyzing stocks such as indexes, sectors, market capitalization, price-earnings ratios, and technical indicators
- Sources of information like brokerage ratings and finding contextual factors behind price movements
The stock market rebounded after earlier losses as concerns eased over European banks' access to funding. French banks reassured markets and investors watched for progress on Europe's debt crisis. Major U.S. stock indices ended higher, led by gains in industrial, materials and tech stocks, as signs pointed to stabilization in the markets.
Hutchison Whampoa reported a 12% rise in net profit to HK$14.17 billion in 2009, despite a 14% drop in revenue to HK$300.55 billion. Gains from property and asset sales offset losses in its energy and 3G businesses. While losses in 3G operations fell 67%, the division is still dragging on earnings. However, results from property completions and asset sales boosted profits.
The document provides an overview of covering company news as a financial journalist. It discusses why companies exist, the differences between private and public companies, and how public corporations function. It also outlines various types of corporate stories to cover, including earnings announcements, new products/business lines, executive changes, initial public offerings, and secondary fundraising. Key details on how to report on these stories such as common questions to ask and elements to include in articles are also reviewed.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy. It discusses established indicators like the Consumer Price Index and copper prices. It also categorizes indicators as lagging, coincident, or leading in relation to economic activity. The document advises that good indicators are original, measure important economic activity accurately and consistently, and correlate closely with broader economic measures. It gives some hypothetical alternative indicators as examples from past classes.
This document provides an overview of corporations for journalism students. It discusses why companies exist, the difference between private and public companies, key industries, how public companies function, costs and profit, types of corporate stories to cover, and earnings announcements. The document is from a class on economics for journalists that focuses on reviewing supply and demand, examining the economic efficiency of gifts, and discussing corporations.
The document contains three proposals for small business profiles to cover:
1. A Chinese company called Yage Era Corp. that deletes negative posts and links online for clients and how it navigates regulations in a growing market.
2. A cat cafe in Hong Kong called The Cat Cafe that lost its restaurant license but continues operating as a cooking school with resident cats.
3. A music therapy center in Hong Kong called Pang's Music Therapy Center that offers treatments to both special needs and normal clients, and the growing but limited market for music therapy in Hong Kong.
This document provides an overview of week 2 topics from an economics course for journalists, including supply and demand. It discusses key concepts such as scarcity, opportunity costs, comparative advantage, and how supply and demand determine market prices. Government policies like rent control are also examined. An example writing assignment is given asking students to explain why a dog walker earns more than nurses based on economic concepts from class. Assessment criteria for the assignments focus on correctly applying relevant economic ideas and constructing a logical argument.
This document provides an overview of a course on global financial journalism. It discusses key themes like how everything in today's global financial system is interrelated and how business journalism isn't just about numbers but also about people. It defines what constitutes business news and explains why business journalism is important. The document outlines learning outcomes, assignments students will complete, reading assignments, the assessment process, and the course schedule. The goal is for students to learn to write different types of business news stories and analyze financial documents and events.
This document provides an introduction and overview for a course on economics for journalists. It defines economics as the study of how people deal with scarcity and make choices with trade-offs. The course will cover topics like how economies, companies, banks, markets and governments work, and economic theories. Students will write assignments, do a group project, and take a midterm and final exam. The instructor emphasizes applying economic concepts clearly and citing sources to avoid plagiarism. The first assignment is to set up an RSS reader for daily economic news and write an economic diary entry.
1. Economics for Journalists
Week 4: Circles & Cycles: How economies work
Jeffrey Timmermans
Monday, 25 February, 13
2. Review: Corporate disclosure
✤ Three main types:
✤ Profit & Loss Statement (also called P&L or income statement)
✤ Balance Sheet
✤ Cash Flow Statement
Monday, 25 February, 13
3. Reporting on earnings
✤ Always focus on net profit, and how it changed from a year earlier
✤ Make sure to include revenue, so reader can judge the “quality” of
earnings
✤ Make sure to include year-earlier figures!
✤ Look for any dramatic year-on-year changes in figures in disclosure,
or big asset sales/purchases
✤ Is cash flow from operations positive, growing?
Monday, 25 February, 13
4. HK’s Hutchison Whampoa reports 12pct rise in profits
01-Apr-2010 | AFP | 7:01 AM
Hong Kong’s Hutchison Whampoa said Tuesday net profit rose 12 percent last year, as gains
from property sale and the sale of assets more than offset losses at its energy and 3G
technology units.
The port-to-telecoms conglomerate, headed by Hong Kong’s richest man Li Ka-shing, said in a
statement to the city’s stock exchange that net profit was 14.17 billion Hong Kong dollars (1.8
billion US) in 2009, up from 12.68 billion dollars in 2008.
The result was lower than the average forecast for a net profit of 15.54 billion dollars in a poll
of six analysts by Dow Jones Newswires.
The group’s total revenue dropped 14 percent to 300.55 billion dollars, mainly because of a
business slump at its Canada-listed affiliate Husky Energy resulted from sharp declines in oil
and gas prices last year, it said.
And income at its ports division dived 16 percent due to lower trading activity amid the global
financial crisis, the statement said.
Losses in its third-generation technology operations slumped 67 percent to 5.28 billion dollars,
primarily due to the merger of its 3 Australia with the Australian unit of British mobile phone
giant Vodafone.
Li said in the statement that its 3G results were expected to improve and make a positive
contribution to earnings.
The company was one of the world’s first to introduce 3G mobile business and has operations in
Italy, Britain, Ireland, Australia, Sweden, Denmark and Austria.
The group’s earnings have been dragged down since 2003 due to the cost of the 3G business.
But last year’s losses were partially offset by a 50 percent jump in profits from the completion
and sales of several residential projects.
The gains also came from a 12.47 billion Hong Kong dollar total profit from the disposal of
investments including its equity interest in three power plants in mainland China and its
telecoms assets in Israel and Indonesia.
Li said the company performed satisfactorily despite the challenging conditions last year and its
operations “are well placed to benefit from a recovering economic environment.”
Source: AFP via Intellasia
Monday, 25 February, 13
6. Types of economies
Command Free-market
Economy Economy
Total No gov’t
intervention intervention
U.S.
Hong Kong
N. Korea
Sweden
Monday, 25 February, 13
10. Economic Growth &
The Business Cycle
Real output
Peak Trend line
ry
Re
ce
ove
ss
io
Rec
n
Re
ry
ce
ove
ss
io
n
Rec
Re
ce
ss
io
n
Trough
Time
Monday, 25 February, 13
11. U.S. Economic Growth
(1940-2010)
Source: St. Louis Federal Reserve Bank
Monday, 25 February, 13
12. U.S. Business Cycle (1970-1980)
Source: St. Louis Federal Reserve Bank
Monday, 25 February, 13
13. Why do economies grow over
time?
✤ Population growth
✤ Investment
✤ Accumulated knowledge
✤ Improved productivity
✤ Better technology
Monday, 25 February, 13
14. What causes a downturn?
✤ An external shock, like a sharp rise in oil prices (1970s)
✤ Over-investment (and subsequent plunge in investment) (2001)
✤ A financial crisis (2008)
✤ High interest rates (when central banks step in to slow things down)
Monday, 25 February, 13
15. The Regulatory Cycle
Crisis in un- or under-
Recession regulated area Deregulation
Politicians respond to Politicians respond to
people’s anger companies
Regulation,
followed by quiet
period Lobbyists/companies Growth
seek deregulation
Monday, 25 February, 13
16. Market Cycles:
Dow Theory
✤ Charles Dow (1851-1902)
founded Dow Jones & The Wall
Street Journal
✤ Dow noticed that prices on
markets follow both long-term
and short-term trends
✤ Short-term trends are
reactionary and won’t
necessarily derail long-term
trend Source: Library of Congress
Monday, 25 February, 13
17. Dow Theory: key assumptions
✤ The theory assumes the price of an asset traded on a market reflects
all available information
✤ A market price is the sum of all fears and the sum of all hopes
✤ Because a market price reflects everything market participants
expect will happen, prices are forward looking
✤ Prices are news!
Monday, 25 February, 13
18. Remember...
✤ Journalists can provide perspective and context:
✤ A recession isn’t the end of the world
✤ A growth & recovery phase won’t go on forever
✤ This time isn’t different!
✤ Regulatory response isn’t always appropriate and is influenced by
political considerations
Monday, 25 February, 13