Is the economy getting any better? The New York Times reports that it’s actually becoming hard to tell. Many of the economic indicators that experts have traditionally turned to in years past seem broken or ill-suited for today’s world. The main example is the uptick in manufacturing, which, in the past, has been typically linked to job creation and more income for workers, leading to more spending, leading to more jobs, and so on. Yet it’s not clear that’s what’s happening here: “But whether growth in manufacturing indeed spells new jobs throughout the economy remains a question. Mr. Shapiro, the MFR economist, argues that companies have become permanently lean, mastering the art of producing more with fewer people — a trend with staying power.” Economists aren’t sure about the stock market, either—whether its current price levels have factored in the economic uncertainty facing the country, or not. While providing a thorough overview of the “Great Ambiguity” as the paper dubs these times, the story in a way boils down to an old joke: ask seven economists their opinion on an issue, and you’ll get at least eight different answers.
Meanwhile there’s only “One” answer to whether the mobile space is important to Google: the Nexus One, the first true Google mobile phone. The Times writes that Google is intent on staying at the top of the pack as computing shifts to a mobile platform; avoiding the fates of giants like Microsoft and IBM in previous shifts. Indeed, the story says Google has been preparing for this moment for years. “Top Google executives, including Eric E. Schmidt, the chief executive, have long said that the mobile Internet was Google’s biggest opportunity for new growth. They orchestrated a string of acquisitions of companies with mobile-related technology.” Google has also focused on mapping and location awareness in its offerings, and almost bought the local social business review website Yelp in December, to augment its mobile and local-focused advertising business. Google has also thrown its weight around, as in the wireless spectrum auction in 2008, to protect its current and future lines of business. The Nexus One, made by HTC for Google, will also put Google even more squarely into competition with its erstwhile ally and iPhone creator, Apple.
A pair of stories about the auto industry today, first the Wall Street Journal examines whether the industry has done enough to wean itself off of the fleet sales that boost sales volume but typically do little for the bottom line. Ford seems to be doing the best job at making regular, rather than volume sales, which analysts are now factoring into their ratings. And General Motors’ sales, says the Washington Post are positively booming—in China. Up 67% last year, the growth prospects of the Chinese market are tremendous. The US has 850 cars per 1,000 people, but China has only 35 cars per 1,000. GM’s Buick line led the way for the company, but overall, since vehicles are cheaper there, sizable profits from Chinese operations are still a ways away. And though growth is expected for years to come, competition from other international firms like Volkswagen and Hyundai is already heating up.
The Times looks at how Visa does everything in its power to get debit card users to sign for their purchases, and whether they are using their clout illegally, since most retailers would prefer customers use the cheaper PIN method of authorizing payment. CIT is just the latest in a recent trend of “prearranged” bankruptcies, reports the Journal. By essentially declaring bankruptcy to creditors first, and getting them to sign off on a restructuring plan, even huge, complex businesses can be in and out of Chapter 11 in a matter of weeks, though the article notes that pushback from unhappy creditors is afoot. The Post says the White House wants the FCC to make wireless Internet available to more Americans by shifting unused portions of the radio spectrum to wireless companies. A key focus in doing this in a way that promotes competition and doesn’t allow large telcos like AT&T and Verizon to concentrate their already huge power over consumers. Finally, from the Big Brother Department: Among the first bits of new from the Consumer Electronics Show is the Times report that Skype, the video chat company that was recently divorced from eBay, is bringing its video chat software to camera-equipped, Internet enabled TVs from Panasonic and LG. The Ministry of Truth had no comment.
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