Articles Flashcards
Denmark Intervenes
**Central bank purchases a record amount of foreign currency to protect the krone’s peg to the Euro
-Denmark’s national bank net purchases of foreign exchange Kroner. Scale of intervention was a record for Denmark’s central bank which made net purchases of foreign currency the previous month
-“The Danish Central Bank may need to consider extreme measures to reinforce the peg further,” like temporary capital controls or transaction taxes. Purchases were almost all Euros
-Denmark peg cornerstone… fixed exchange rate. The central bank aims to keep the Euros exchange rate within 2.25% above or below
**Denmarks central bank is standing firm on the krone’s peg to the Euro
As the US $ Surges…
-South Floridan bought a Parisian house this summer
-She paid 758,000 Euros or 785,606 dollars. What propelled her to buy was the strength of the U.S dollar
-The dollar is rising so much so she saved a total of $80,000
*Taking advantage of most favorable exchange rates in a generation and reeling away from exploding prices back home.
*Six European Markets where American interest is notable
-London
-Paris
-Provence
-Tuscany
-Lake Como
-Libson
*America dominates the Knight Frank Study with nine of the top 20 spots held by U.S cities
**Phoenix, Miami, San Diego
*The current parity between the Euro and the dollar is somewhat deceptive.. making the Euro seem stronger than it actually is.
*Credit to America’s status as a net energy exporter and the Fed’s monetary policies. Blames Euro’s weakness on the Ukranian War
L’Oreal
*Loreal has had trouble pushing its market share higher than 4%
*India: sell smaller packets to poorer customers
*L’OReals transition to tinier packaging shows how growth in India can be elusive and complicated
Indians buy sachet products more than regular products
Unilever Ad
**Critics slammed the online video for its popular body wash as racially insensitive
-Doves facebook showed a black woman taking off a t-shirt, then morphing into a white woman. Did the same thing and turned into an Asian woman. Attracted criticism.
*Was SUPPOSED to mean that body wash is for every woman and be a celebration of diversity.
*Another ad scandal was when Dove come out with various shaped body wash bottles made to mimic body sizes.
Gum Makers…China
**Gum is growing at double digit rates in China
**Expanded distribution and offered flavors such as grapefruit, cucumber, and tea to encourage China’s swelling middle class to chew more.
*Rising disposable incomes are negative but agressive marketing
*While nearly all sales of packaged food has been affected by China’s weakening economy, gum is seeing dynamic growth due to manufacturer promotions and rising consumer demand
