Metropolis Opinion

Today, oil makes its new record again. Oil runs to $120 per barrel. The main factors behind the new record are USD weak against Euro and Sabotage in Nigeria. If we look back, when governments worried when Oil ran close to $100 per barrel then $108 per barrel, some day before $112 per barrel and $118 per barrel, and hold at $120 per barrel today.
Some week ago, we got good news from Brasilia that they have found the new oil mine. The new oil mine can supply more then 20 percent of OPEC supply. The new made oil price declined to $112 per barrel. Now bad news comes.

Why oil price is too sensitive? When Oil Price was running high and high, the factors didn’t come from the supply, but Stock Exchange did. Investor took profit; Dollar was declined against Euro and some major currencies.
Why Dollar is too sensitive to make Oil Price fluctuating? Why we still use Dollar as Oil Price? Why not Euro or Japan Yen?
The question had been asked to my lecture in university. Why we still use Dollar as the measurement of Oil Price? I said. Actually I didn’t get best answer from him? I read the television; some analysts said that the main factor why we still use USD as Oil Price is because Dollar is transparent and more fluctuating currency if we combined with others. Full Article »

Samsung Chief is reported to retire from his position.

Lee Kun-hee (66) Head of the Korean Giant Samsung Group reported decide to put his position after 22 years. The decision rose as his indicting to evasion tax and avoids this beach of trust, Reuters report.

Internal staff reported that Lee and his family still control Samsung.

Lee came to Samsung when the company was on trouble and in his hand and some fortune, later Samsung began a largest company in Korea and he also became conglomerate.

I would like to share my opinion about Tax Evasion, not about the Samsung Chief.

Many conglomerates and success businessmen are trouble go to the Jail because of Tax Evasion. As we know well, Tax makes our profit decline. So many businessmen try to manipulate their tax, the goal is high profit net (profit minus tax).

I don’t mind why they do tax evasion. For example (illustrate) if Samsung books profit net (in normal case with no tax evasion) around $ 100 million. With tax evasion the profit turns to $ 120 million. It means there is $ 20 million is illegal money and the amount is much. Full Article »

Intel Co Goes to Taiwan

Couple years before, I heard gossip about Microsoft will invest their money in Indonesia but the plain was stop because Indonesian government declined the offers. The government claimed that they still focus on agriculture and industry-agriculture, didn’t interest to Intel Co offering.

Today, we have good news for Taiwan and bad new for Indonesia. Intel Co decide to invest in Taiwan around $ 500 Million USD and not in Indonesia. Suppose that $ 500 Million enter to Taiwan, and also transfer technology such as input (machine, Skill Labor, Land). While the government has devise, their labor also get advantages especially skill labor.
In economic perfective and theory, Investment means Money. If Intel comes to Taiwan with $ 500 Million, the Government (destination) gets more than $ 500 Million. Intel does like others company, goes to the source and efficiency. Investment in outside, means Intel (others companies calculates that they can pay less to the local labor, pay less for land rent, facilities, tax).
Another opinion said that Foreign Direct investment means closer to consumers. Intel Co invests in Taiwan means efficiency in shipping, so the Average Cost will lower. Final goal is increase their market segment.

To read about the news, Intel to invest $ 500 Million in Taiwan, follow the link. What does Intel produce in Taiwan?

Government has responsibility to education, formal education through make a good decision in law and rules in order to all citizens have full access to education to avoid and to decrease blind people, decrease poor people. Education in many cases is related to how to increase income per capita.

When social benefit is larger than social cost, government has success, although government has loss in money. I have learned at welfare countries, learn about how they services in education and the education create multiply effect to others.
Investment to people on education is believed for experts, governments, World Bank that education is the best way to solve all problems in poor countries and also rich countries.

For example,
Health education investment to woman, has thousand multiply effects, when a woman (young woman) know much health, she and her baby is save, she know how to care his baby, giving good nutrition, teach his baby with useful ways make her baby growth well.
If moms and their babies live in health condition, no problem rose in their health, they can save their money on health post. When the condition is being permanent, budget for health can be used to others needs such as nutrition needs, formal education, actualization process, and more.

Let us see more deep when save for health is rising, their babies can get opportunity go to the school. I know exactly, that foods and other basic needs can be reached with hard working. And the trend is the employers need high education labor (skill labor) to hire. So don’t be wrong perception, if we have low education level, no much money we accepted. Full Article »

The Biggest US Bank, Citigroup Bank is hurt by Credit Loses. But the new chief executives, Vikram Pandit, outside analysts are showing their optimism that Citigroup can change face and handle those problems in loans in future.
Based on their report, Citigroup suffers more than $16 billion. Main factor is credit and loans case. The impact goes to labor. An internal staff said that they will cut another 9,000 jobs.

Their New Executive said, “We’re not happy with our financial results this quarter,” Pandit said on a conference call. Nevertheless, he said his confidence in Citigroup’s future is “extremely high.”
Many hope for Pandit, they said. So let us see Pandit’s efforts to bring Citigroup escaped from the financial problems. Pandit said that in the beginning they focus on internal costs, like cut employees, credit repair, and they also focus on a new plan, sell Diners Club International.
Follow this link to read full article from Citigroup.
Source Reuters.com

According to JPMorgan Chase & Co based on Reuters News on April 17th, JPMorgan Chase & Co has loss quarterly profit fell 50 percent from previous quarterly report. But the good news is the share rise up 5 percent. JPMorgan Chase & Co is also appreciated by their ability to skirt and cripple their rivals. Credit Problem, Loans, and time lag on interest rate cutting became the constraint to the third-largest US Bank.

Based on the Reuters, net income in the first quarterly falls to $2.37 billion or 68 cents per share down from $4.79 billion in previous report. It means net income falls amount $1.34 billion.
Low in net income doesn’t indicate that JPMorgan is lost in quarterly. The staff said that the recent JPMorgan is pretty good, JPMorgan Chief Executive Jamie Dimon said on a conference call with analysts
Read more news related to JPMorgan Chase & Co
JPMorgan Sees Income Fall 50 Percent as Mortgage Woes Bite Big Full Article »