Discussion Topic for 10/31/2011 (Mon)

1.       Sluggish income growth led U.S. households to cut back on saving in September to raise their spending, showing the economy's recovery remains fragile. (from Reuters)
http://www.reuters.com/article/2011/10/28/us-usa-economy-idUSTRE79O4A620111028

Question 1:
Any comments, opinions? How would you predict the 4^th quarter personal income growth rate?

2.       Emerging market debt was one of the last shoes to drop when Europe’s simmering sovereign debt crisis once again turned into a full-blown panic this summer, but when it finally did, it landed with a thud. (from Financial Times)
http://blogs.ft.com/beyond-brics/2011/10/19/em-bonds-after-the-freeze/#axzz1cIZreI88

The head of Europe's rescue fund sought to entice China on Saturday to invest in the facility by saying investors may be protected against a fifth of initial losses and that bonds could eventually be sold in yuan if Beijing desires. (from Reuters)
http://www.reuters.com/article/2011/10/30/us-eurozone-idUSTRE79R1LG20111030

Question 2:
Do you think the EU Debt Crisis is an opportunity for emerging countries to go global?
Question 3:

Assume Beijing buy the yuan dominated EU bond, do you think it’s a sign that the Chinese yuan is becoming an international currency?


3.       MetLife Inc. (MET), the insurer whose plan for a dividend increase was rejected by the Federal Reserve, said third-quarter profit surged more than 10-fold on gains in the company’s derivative bets. (from Bloomberg)
http://www.bloomberg.com/news/2011-10-27/metlife-third-quarter-profit-surges-to-3-58-billion-on-derivative-gains.html

Question 4:
Give an introduction about the MetLife and the insurance industry.
Question 5:

As some big companies are reducing their package for employee insurance, how do you see the future individual insurance service?

4.       Meg Whitman wants Hewlett-Packard Co. to sell personal computers after all, a dramatic about-face by the H-P chief executive only five weeks into the latest chapter of her sweeping career. (from WSJ)

http://online.wsj.com/article/SB10001424052970203687504577002144041676680.html?mod=WSJ_hp_LEFTTopStories

Question 6:
Compare the PC business of H-P with Dell’s.
Question 7:

Do you think the tablet is a substitution of the laptop?

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Lorena Li