MADE AT CAIRO CONFERENCE
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US PRESIDENT OBAMA WARNS IRAN ON UPHOLDING PROMISES
MADE AT CAIRO CONFERENCE
Washington, DC (pa)- US President Barack Obama bluntly told Iranian leaders this week that he expected them to uphold the promises their emissaries agreed to at the conclusion of the Cairo Conference and warned them that the United States would not ignore recent violence in Iraq that US intelligence agencies have linked to Iran. President Obama admonished Iranian leaders for failing to tighten Iran’s borders with Iraq and for allowing groups opposed to the Iraqi government to move with ease across the Iranian-Iraqi border. President Obama also said that Iran would not escape accountability if he was presented with evidence that the Iranian regime supported, funded, trained, supplied, equipped, armed, or facilitated in any way terrorist groups which targeted American troops in Iraq, Iraqi military and security forces, or Iraqi civilians.
In recent weeks several bombings and armed attacks in Iraq have killed a dozen US soldiers, scores of Iraqi military and security personnel, and hundreds of Iraqi civilians. The Iraqi government has blamed Iranian-backed groups for these attacks. US intelligence agencies have reportedly claimed that evidence exists which connects this violence to groups which have ties to Iran but which may not be formally under Iranian control. Iran has denied the charges, calling them “pernicious lies designed to legitimize US aggression, militarism, and expansionism in the Persian Gulf.”
“The American public is understandably reluctant to engage in a new large-scale conflict, possibly its third war in less than ten years, based on as-yet-undisclosed evidence from its intelligence community, agencies of government which still bear some of the blame for the questionable circumstances surrounding the US invasion of Iraq in 2003,” said Professor of International Relations and US Foreign Policy Niko Mincic. “Aware of both the need to weigh intelligence information presented to him very carefully and to prevent Iran from hindering the draw down of US troops from Iraq or leveraging the withdrawal of US troops to its advantage against the Iraqi regime, President Obama has made this issue and a renewed focus on Iran top priorities in his foreign policy,” Mincic explained. Some sources inside the administration report that the president will soon order a temporary halt to the withdrawal so that US and Iraqi forces can!
ensure that the draw down process proceeds without prompting a flare up of violence in Iraq. “Such an order could change the current trajectory of politics in that region of the world, as could the newly aggressive policy emanating from Tehran. Together these new policies could lead to future conflict between the US and Iran,” Mincic said.
EU REJECTS WORKER RELOCATION PROGRAM
Brussels, Belgium- The European Union has rejected the implementation of a plan which would have addressed Europe’s uneven economic growth by encouraging the voluntary relocation of workers from European countries and regions with low economic growth to areas of high economic growth. Such a plan would have helped to relieve the burdens of unemployment and its associated problems in low-growth areas while continuing to feed the need for workers in highly productive areas, argued EU experts involved in high-level talks on the subject. The plan was ultimately rejected because of the political and economic challenges involved in deciding which regions were “low” and which “high” growth and because EU leaders feared a backlash against the plan by powerful unions and nationalist groups in some member states.
Economic News
Economic data suggests both NAFTA and the EU had solid and sustainable growth in Q3, 2010. Interest rates and exchange rates held steady. Strong consumer demand continues. The stock market, seeing only good news soared to an all time high of 130.
Forecasters are, for the most part, in agreement that Q4 will produce record sales and record profits. While record profits are expected in both the EU and NAFTA, firms operating in the US or Canada will see additional benefits from lower labor costs resulting from the DES health plan adopted and passed with the backing of the Obama administration.
Oil prices jumped the last few days of Q2 and early in Q3 due to rumors and fears relating to instability in Iran and the report from London that the Iranians were reinforcing military outposts near their border with Iraq. Many see the disturbance in Iran as another round of political saber rattling and disregard the notion that any military incursion from or into Iran could actually take place.
FIRM 36 had a PRODUCT IMPROVEMENT BREAKTHROUGH in Quarter 3, 2010. Sales representatives reported that a NEW FEATURE on Product 2 is getting favorable buyer response.
FIRM 101 had a PRODUCT IMPROVEMENT BREAKTHROUGH in Quarter 3, 2010. Sales representatives reported that a NEW STYLE on Product 1 is getting favorable buyer response.
P2 demand increased in NAFTA. On average, retail outlets surveyed reported approximately an 8% increase. Retailers surveyed suggested that demand might have been higher and that failure to have adequate stocks on hand dampened sales. If true, Q4 could show an additional growth in demand factor, perhaps adding another 8% increase. This is important information for firms forecasting Q4 demand. Industry wide demand as well as your firm’s unique demand should be considered when estimating future sales.
P2 demand in the EU, already strong over the last year, increased by 7%. The increase should hold steady into Q4 but no additional growth in Q4 is anticipated.
**************
The industry should be aware that a ‘GREEN’ initiative is underway to identify firms that use state-of-the-art technology to minimize harmful effects of their products. Green firms would consider their raw material input, the manufacturing process and disposal of the end product and its packaging. They would agree to do whatever is necessary to minimize the impact on the global environment. Firms that qualified could use the ‘GREEN’ logo on their product.
The GREEN initiative, if enacted by all scent industry firms, would have the following affects:
- Manufactures only would need to pay $75,000 one time per plant, to control air quality;
- Manufactures only would see the cost of TYPES 1 and 2 raw materials increase by approximately 20% as materials would need to be certified ‘Green’ on arrival;
- The entire supply chain would have to absorb the increased costs.
At issue is who would absorb the cost. Manufactures, for the most part could not carry the full cost and would pass at least some of the cost on to distributors. Increasing prices to the retail stores and eventually to the end consumers would cut demand.
If the industry agreed to the initiative, costs would eventually be absorbed throughout the chain, allocated by a free market system. If not adopted by the entire industry, individual firms could proceed on their own under two very different rationalizations: (1) using the logo on their product would enhance sales (currently there is no evidence that this would occur in the scent industry); (2) sales will not increase but making the sacrifice to trade profits for a cleaner environment is worth the hit to stock price.
It must be made clear that an industry wide adoption of the green initiative would be the least costly process. Having individual firms attempt to go green on their own would be a more costly endeavor and might run their ‘green’ raw material costs up 20 to 35%.
It would require solidarity to force raw material suppliers to all be certified green. An industry wide vote (one firm – one vote) will be forthcoming. There must be a vote of at least 70% in favor of the green initiative before raw material suppliers are forced to agree. If such a vote passes, legislation will be submitted in Canada, United States, and the EU to force plants to meet clean air guidelines. If the initiative fails in an industry wide vote, no immediate changes are anticipated.
Administrative Notes and Reminders to Firms:
1. Firms 76,85, 96, and 163 will be fined in Quarter 4, 2010 for illegal dividend payments and/or stock repurchases made during Quarter 3, 2010. Remember that retained earnings must be positive after paying a dividend or repurchasing stock or your firm will be fined.
2. Special Reports are available from your simulation administrator. The Special Report contains additional reporting information about ROE, ROI, Engineering Efficiencies gained through Engineering Budget expenditures, as well as average compensation for sales staff for all firms in a market group. If your firm would like to receive a Special Report you must order one from your simulation administrator, Kristi: globalview@earthlink.net Reports are updated after each quarter and historical copies of reports are not archived so if you would like to receive a copy of a Special Report for a given quarter you must order it in advance of the following quarter's deadline. The fee for the report is $2000.
3. Remember to set Capacity and Stock Issue decisions to zero! Many firms forgot to reset these change variables in their Quarter 3, 2010 decisions, which resulted in their original decisions being duplicated for a second quarter.
4. If your firm has an excessive special loan (in excess of 2 million dollars) please contact your simulation administrator for special refinancing options.
Peacock is closed to all Advanced Firms, except Firms 85 which can buy P1 at $56 and P2 at $99. Any other Advanced firms that enter contracts with Peacock will have their contracts cancelled.
Intro Firms in Market Groups 2 and 18 can buy from Peacock at the following Prices:
P1 = $80 per unit
P2 = $115 per unit
FIRM TO FIRM CONTRACTS:
Industry 2
Accepter Buyer Seller Item Quantity
26 26 42 Finished Goods P1A1 1867
26 26 42 Finished Goods P2A1 2817
26 26 42 Finished Goods P1A2 2200
26 26 42 Finished Goods P2A2 4320
24 24 42 Finished Goods P1A1 1500
24 24 42 Finished Goods P2A1 1300
24 24 42 Finished Goods P2A2 3700
24 24 42 Finished Goods P1A2 850
23 23 42 Finished Goods P1A1 526
23 23 42 Finished Goods P2A1 850
23 23 42 Finished Goods P2A1 5455
27 27 42 Finished Goods P1A1 2530
27 27 42 Finished Goods P2A1 2016
27 27 42 Finished Goods P1A2 2099
27 27 42 Finished Goods P2A2 7550
Industry 3
Accepter Buyer Seller Item Quantity
36 36 42 Finished Goods P1A2 1700
36 36 42 Finished Goods P2A2 6000
37 37 42 Finished Goods P1A1 900
37 37 42 Finished Goods P2A1 933
37 37 42 Finished Goods P2A2 1500
32 43 32 Finished Goods P1A1 13315
32 43 32 Finished Goods P2A1 15914
32 43 32 Finished Goods P1A2 1500
Industry 4
Accepter Buyer Seller Item Quantity
42 45 42 Finished Goods P2A1 2500
42 42 45 Finished Goods P1A1 1500
42 42 45 Finished Goods P1A2 8000
42 45 42 Finished Goods P2A2 7500
48 48 33 Finished Goods P1A1 3625
48 48 33 Finished Goods P2A1 3500
48 48 33 Finished Goods P2A1 1229
48 48 33 Finished Goods P1A2 1983
48 48 33 Finished Goods P2A2 8606
46 46 42 Finished Goods P1A1 2000
46 46 42 Finished Goods P2A1 2000
46 46 42 Finished Goods P1A2 2000
46 46 42 Finished Goods P2A2 4000
47 47 42 Finished Goods P1A1 500
47 47 42 Finished Goods P2A2 6000
47 47 42 Finished Goods P2A1 500
47 47 42 Finished Goods P1A2 1000
43 43 32 Finished Goods P2A2 390
42 184 42 Finished Goods P1A1 1000
42 184 42 Finished Goods P2A1 1000
42 186 42 Finished Goods P2A1 1787
42 186 42 Finished Goods P1A2 592
42 186 42 Finished Goods P2A2 3607
42 22 42 Finished Goods P1A1 1623
42 22 42 Finished Goods P2A1 1492
42 22 42 Finished Goods P1A2 821
42 22 42 Finished Goods P2A2 4323
42 184 42 Finished Goods P1A2 1000
42 184 42 Finished Goods P2A2 2500
42 186 42 Finished Goods P1A1 500
Industry 5
Accepter Buyer Seller Item Quantity
51 71 51 Finished Goods P1A2 5800
51 71 51 Finished Goods P2A2 5500
55 186 55 Finished Goods P1A1 1185
Industry 6
Accepter Buyer Seller Item Quantity
61 61 55 Finished Goods P1A1 3000
61 61 55 Finished Goods P1A2 2000
61 61 55 Finished Goods P2A2 4000
Industry 7
Accepter Buyer Seller Item Quantity
71 71 55 Finished Goods P2A1 1400
75 75 55 Finished Goods P2A1 2000
73 73 74 Finished Goods P1A1 500
71 71 121 Finished Goods P1A1 1600
73 73 74 Finished Goods P1A2 500
72 72 33 Finished Goods P1A1 2305
72 72 33 Finished Goods P2A1 2300
72 72 33 Finished Goods P1A2 700
72 72 33 Finished Goods P2A2 2700
Industry 8
Accepter Buyer Seller Item Quantity
81 81 162 Finished Goods P1A1 3250
81 81 103 Finished Goods P2A1 1200
84 84 135 Finished Goods P1A1 3750
84 84 96 Finished Goods P1A1 11500
81 81 187 Finished Goods P2A1 1343
Industry 9
Accepter Buyer Seller Item Quantity
91 91 55 Finished Goods P2A1 800
91 91 101 Finished Goods P2A2 1800
Industry 10
Accepter Buyer Seller Item Quantity
101 131 101 Finished Goods P1A2 2000
Industry 11
Accepter Buyer Seller Item Quantity
113 123 113 Finished Goods P1A2 1000
113 123 113 Finished Goods P2A2 4700
Industry 13
Accepter Buyer Seller Item Quantity
131 131 55 Finished Goods P1A1 1400
131 131 55 Finished Goods P2A1 700
137 66 137 Finished Goods P2A2 1200
137 171 137 Finished Goods P2A2 6940
137 171 137 Finished Goods P2A2 1960
134 134 135 Finished Goods P2A2 3930
Industry 14
Accepter Buyer Seller Item Quantity
147 153 147 Finished Goods P2A2 10000
147 153 147 Finished Goods P1A2 2000
142 142 167 Finished Goods P1A1 1564
142 142 167 Finished Goods P2A1 928
Industry 15
Accepter Buyer Seller Item Quantity
151 151 55 Finished Goods P1A2 1000
151 151 55 Finished Goods P2A2 2500
153 153 42 Finished Goods P2A2 5000
Industry 16
Accepter Buyer Seller Item Quantity
165 73 165 Finished Goods P1A1 1429
165 73 165 Finished Goods P2A1 6000
165 73 165 Finished Goods P2A1 8849
161 151 161 Finished Goods P1A1 5000
165 73 165 Finished Goods P1A1 2500
161 183 161 Finished Goods P1A1 2000
161 183 161 Finished Goods P1A1 1000
161 186 161 Finished Goods P1A1 1000
Industry 18
Accepter Buyer Seller Item Quantity
187 187 44 Finished Goods P2A2 4439
187 187 42 Finished Goods P2A1 1400
187 187 42 Finished Goods P2A2 2000
Advanced Firm NPV Rankings
Intro Firm NPV Rankings
List of firms in order of net present value
Stock No. NPV Index
65 4.46 1
131 4.20 2
55 3.15 3
66 3.08 4
147 3.02 5
71 1.98 6
56 1.85 7
101 1.83 8
113 1.42 9
172 1.34 10
111 1.29 11
115 1.21 12
64 1.14 13
145 1.12 14
132 1.09 15
122 0.98 16
106 0.91 17
162 0.80 18
143 0.78 19
54 0.68 20
116 0.56 21
91 0.55 22
157 0.52 23
61 0.38 24
134 0.33 25
123 0.33 26
86 0.32 27
104 0.27 28
51 0.22 29
163 0.12 30
135 0.11 31
105 0.09 32
83 0.05 33
154 -0.01 34
141 -0.02 35
103 -0.06 36
112 -0.12 37
153 -0.13 38
81 -0.17 39
133 -0.21 40
94 -0.22 41
75 -0.24 42
126 -0.24 43
62 -0.27 44
151 -0.37 45
95 -0.38 46
125 -0.44 47
155 -0.45 48
114 -0.47 49
167 -0.49 50
73 -0.56 51
171 -0.61 52
82 -0.64 53
144 -0.71 54
173 -0.74 55
72 -0.80 56
175 -0.83 57
121 -0.88 58
102 -0.89 59
92 -1.09 60
137 -1.16 61
53 -1.18 62
96 -1.27 63
76 -1.27 64
74 -1.30 65
161 -1.36 66
84 -1.61 67
164 -1.65 68
142 -1.75 69
165 -1.79 70
152 -1.79 71
85 -1.81 72
52 -2.21 73
63 -2.65 74
93 -3.22 75
174 -3.36 76
124 -3.72 77
Stock
Number D a t e s
20094 20101 20102 20103
===== ===== ===== ===== =====
51 3.17 3.36 3.66 3.93
52 2.93 2.33 1.16 0.83
53 2.96 3.36 2.44 2.06
54 3.20 3.62 4.10 4.49
55 3.39 4.51 5.73 7.07
56 4.16 5.80 7.21 6.96
61 3.95 4.44 4.69 5.01
62 2.97 2.76 2.79 3.13
63 2.98 1.45 0.88 0.38
64 2.81 3.43 3.89 4.36
65 4.46 5.97 7.59 9.25
66 3.84 5.63 6.92 8.01
71 3.44 4.05 5.01 6.27
72 2.80 3.00 2.40 2.32
73 3.03 3.13 2.33 2.86
74 3.23 2.69 2.65 2.23
75 3.45 3.23 3.29 3.72
76 3.76 2.70 2.75 2.88
81 3.67 3.41 3.83 4.05
82 3.18 3.68 3.48 2.94
83 3.28 3.61 4.07 3.86
84 2.99 2.40 2.01 1.60
85 0.00 0.00 3.71 1.50
86 2.78 2.94 3.30 3.59
91 4.11 4.60 5.07 5.39
92 2.83 2.51 1.78 2.02
93 3.34 1.35 0.31 0.14
94 2.70 2.37 2.66 2.87
95 3.08 3.15 2.96 3.07
96 0.00 3.09 3.03 1.91
101 2.71 4.52 5.09 5.26
102 3.93 4.02 3.14 3.52
103 2.87 2.92 2.83 3.04
104 3.03 2.37 2.22 3.50
105 2.83 2.31 3.05 3.38
106 3.18 3.86 4.37 4.53
111 3.63 4.71 5.24 5.70
112 2.99 2.21 3.01 3.32
113 3.95 5.68 5.20 5.19
114 2.98 3.21 3.72 2.91
115 3.40 4.03 4.67 4.72
116 3.16 3.62 3.96 4.31
121 3.00 2.96 2.93 2.45
122 2.55 2.61 2.98 3.03
123 3.57 5.93 3.93 4.41
124 4.36 1.69 0.87 0.74
125 3.11 2.79 3.00 3.09
126 2.79 2.68 2.78 2.95
131 3.50 6.83 7.85 8.91
132 2.91 3.06 3.73 4.42
133 3.52 3.50 4.19 3.83
134 2.87 3.66 4.10 3.70
135 2.93 2.73 3.26 3.52
137 3.14 2.99 3.02 2.29
141 2.63 3.25 3.00 2.87
142 2.83 2.44 1.41 1.25
143 3.16 3.25 3.80 4.56
144 2.69 3.03 2.21 2.29
145 3.03 3.68 4.35 4.63
147 3.31 4.99 5.38 6.30
151 3.05 2.80 2.85 3.10
152 2.80 2.38 1.29 1.17
153 3.84 4.52 3.46 3.80
154 4.10 3.85 3.87 4.74
155 4.30 4.70 4.18 4.46
157 2.49 2.56 2.99 3.39
161 3.42 3.28 3.38 2.39
162 3.07 3.23 3.88 4.48
163 3.03 2.53 2.80 2.62
164 3.01 2.64 2.21 1.58
165 3.67 2.22 1.65 2.18
167 2.49 2.07 2.27 2.31
171 2.85 2.62 2.92 2.59
172 3.04 6.11 4.34 5.07
173 2.84 2.72 2.04 2.43
174 4.22 1.96 1.34 0.99
175 3.49 2.78 2.18 3.08
Mkt 3.24 3.38 3.41 3.55
TBill 0.0200 0.0175 0.0175 0.0175
Stock Shares Closing
Number Traded Price Change
====== ======== ======= ========
51 0 3.93 0.27
52 0 0.83 -0.33
53 0 2.06 -0.38
54 0 4.49 0.39
55 0 7.07 1.34
56 0 6.96 -0.25
61 0 5.01 0.32
62 0 3.13 0.34
63 0 0.38 -0.50
64 0 4.36 0.47
65 0 9.25 1.66
66 0 8.01 1.09
71 0 6.27 1.26
72 0 2.32 -0.08
73 0 2.86 0.53
74 0 2.23 -0.42
75 0 3.72 0.43
76 0 2.88 0.13
81 0 4.05 0.22
82 0 2.94 -0.54
83 0 3.86 -0.21
84 0 1.60 -0.41
85 0 1.50 -2.21
86 0 3.59 0.29
91 0 5.39 0.32
92 0 2.02 0.24
93 0 0.14 -0.17
94 0 2.87 0.21
95 0 3.07 0.11
96 0 1.91 -1.12
101 0 5.26 0.17
102 0 3.52 0.38
103 0 3.04 0.21
104 0 3.50 1.28
105 0 3.38 0.33
106 0 4.53 0.16
111 0 5.70 0.46
112 0 3.32 0.31
113 0 5.19 -0.01
114 0 2.91 -0.81
115 0 4.72 0.05
116 0 4.31 0.35
121 0 2.45 -0.48
122 0 3.03 0.05
123 0 4.41 0.48
124 0 0.74 -0.13
125 0 3.09 0.09
126 0 2.95 0.17
131 0 8.91 1.06
132 0 4.42 0.69
133 0 3.83 -0.36
134 0 3.70 -0.40
135 0 3.52 0.26
137 0 2.29 -0.73
141 0 2.87 -0.13
142 0 1.25 -0.16
143 0 4.56 0.76
144 0 2.29 0.08
145 0 4.63 0.28
147 0 6.30 0.92
151 0 3.10 0.25
152 0 1.17 -0.12
153 0 3.80 0.34
154 0 4.74 0.87
155 0 4.46 0.28
157 0 3.39 0.40
161 0 2.39 -0.99
162 0 4.48 0.60
163 0 2.62 -0.18
164 0 1.58 -0.63
165 0 2.18 0.53
167 0 2.31 0.04
171 0 2.59 -0.33
172 0 5.07 0.73
173 0 2.43 0.39
174 0 0.99 -0.35
175 0 3.08 0.90
Mkt 0 3.55 0.14
Intro Firm NPV Rankings
List of firms in order of net present value
Stock No. NPV Index
187 1.69 1
22 0.95 2
182 0.83 3
181 0.81 4
25 0.81 5
184 0.80 6
24 0.70 7
188 0.69 8
185 0.67 9
23 0.60 10
26 0.53 11
28 0.45 12
183 0.31 13
186 -0.30 14
21 -0.40 15
27 -0.61 16
Stock
Number D a t e s
20101 20102 20103
===== ===== ===== =====
21 3.65 3.90 3.58
22 3.32 3.47 4.71
23 3.32 3.52 4.32
24 3.45 4.03 4.57
25 3.31 3.51 4.54
26 3.45 3.60 4.39
27 3.74 4.19 3.45
28 3.09 3.27 3.90
181 4.22 4.64 5.55
182 2.93 3.12 4.14
183 3.35 3.48 4.04
184 3.65 4.05 4.91
185 3.42 3.69 4.51
186 2.89 3.10 2.86
187 3.92 4.28 6.19
188 3.94 5.05 5.11
Mkt 3.48 3.81 4.42
TBill 0.0200 0.0175 0.0175
Stock Shares Closing
Number Traded Price Change
====== ======== ======= ========
21 0 3.58 -0.32
22 0 4.71 1.24
23 0 4.32 0.80
24 0 4.57 0.54
25 0 4.54 1.03
26 0 4.39 0.79
27 0 3.45 -0.74
28 0 3.90 0.63
181 0 5.55 0.91
182 0 4.14 1.02
183 0 4.04 0.56
184 0 4.91 0.86
185 0 4.51 0.82
186 0 2.86 -0.24
187 0 6.19 1.91
188 0 5.11 0.06
Mkt 0 4.42 0.61
