National / International News
The release of a new report on the world's mothers is a reminder of the gap between rich and poor — in the developing world and in American cities as well.
Marketplace’s Scott Tong reported on the fracking ban in Denton last year. He several states are considering similar bills to stop municipal fracking bans.
One of these, in Oklahoma, passed one chamber. The sponsor of that bill said he wants to "get ahead of what we're seeing in other states."
Hear the full conversation using the audio player above.
A new book suggests that tall tales on craft bourbon labels are the rule rather than the exception. They're just one example of a slew of "carefully cultivated myths" created by the bourbon industry.
Amid the latest case of poor police-community relations, critics are targeting N.Y.'s policing theory, which aims to crack down on minor offenses. But it's also praised for reducing the crime rate.
The two-week naval exercise, dubbed Dynamic Mongoose, brings dozens of vessels together, and comes amid concern about Russia's increasing aggression.
Dozens of soldiers have offered testimonials saying indiscriminate fire was tolerated, even encouraged in last summer's war in Gaza. This contributed to the high numbers of civilian deaths, they say.
But her lawyer says the former secretary of state, and Democratic presidential candidate, will appear before the panel once — not twice, as requested by the head of the Benghazi committee.
McDonald’s new CEO was pretty blunt on Monday.
“We are not on our game,” Steve Easterbrook told investors and customers while unveiling a turnaround plan for the company amid sagging sales. Easterbrook’s plan involves a major restructuring he hopes will make McDonald’s more nimble in responding to consumers' changing tastes. The company will also franchise more of its restaurants and buy back more shares.
Some investors wanted more details about menu and store changes, but there were no sweeping announcements on that. McDonald’s is experimenting with more customized orders and online ordering at a few locations, among other changes.
Tim Calkins, a marketing professor at Northwestern’s Kellogg School of Management, says the company’s immense size makes any fundamental changes across the board challenging.
“Repositioning a brand is hard and it takes time to do those things," he says. "It means there’s not a quick fix here.”
Carly Fiorina, former CEO of Hewlett-Packard, officially announced on Monday her candidacy for the presidential nomination. She told "Good Morning America" that she understands "how the economy actually works." But being a CEO isn't always an advantage for a political candidate.
Look, for instance, to CarlyFiorina.org. It's a simple site, reading: "Carly Fiorina failed to register this domain. So I'm using it to tell you how many people she laid off at Hewlett Packard." And then: 30,000 frowny emoticons.
George Anders, author of "Perfect Enough: Carly Fiorina and the Reinvention of Hewlett Packard," says layoffs were in the tens of thousands under Fiorina — in large part thanks to a merger with Compaq she pushed through.
This question of how many jobs a CEO created or destroyed is a key one for business executives who become political candidates. Just look at Mitt Romney's campaign for the presidency, and his record at private equity firm Bain Capital.
"Whether Bain Capital created more jobs than it took away was one of the great debating issues," says Mike Useem, professor of management at the Wharton School. "And that obviously is going to be debated in the case of Carly Fiorina. Net-net, was she a job creator?"
One thing Nick Carnes, professor of public policy at Duke University, says we do know about CEOs is their general political tendency: across all levels of government, he says they tend to favor more conservative economic policy choices.
The share price of social media companies – LinkedIn, Twitter, and Yelp, to name a few – have gone on some bumpy rides lately. When LinkedIn told investors the year ahead wasn’t looking as rosy as previously thought, its stock dropped 20 percent in a morning. Twitter saw a similar plunge when it surprised the markets with weak earnings.
If social media stocks seem a bit volatile, “our belief is they should be,” says Rick Summer, an equity strategist at Morningstar.
That’s not because they’re social media companies; it’s that they’re growing fast and their business models are still uncertain.
“Many of these companies are forming new advertising products,” says Summer. “We don’t have a great deal of history in understanding how you and I as users will interact with those advertising products and how advertisers will value that degree of advertising.”
Therefore, the stock price of many social media companies isn’t based on how much they make today, but what investors believe they one day will, says Shyam Patil, a senior vice president with Wedbush Securities.
If suddenly a company’s not growing as fast as expected, investors will reevaluate.
“It’s kind of like compounding, right?” says Patil. “If you’re trying to figure out what $1,000 today is going to be worth in 30 years, a two percentage change in the growth rate is going to have a significant impact."
That’s not unique to social media companies, nor does it mean they’re falling out of favor.
“When you look at the value of these stocks, they’re significant before and significant after,” says Brian Wieser, an analyst with Pivotal Research. “We can argue about whether the market overreacts – absolutely.”
Wieser says a volatile stock price doesn’t change the inherent value of these companies – just want Wall Street thinks that value is.
His reaction to Twitter’s recent drop? “Cheap now, time to buy.”