[include_top2.htm]

The weekly newsletter for everyone interested in barter--the world's most versatile business tool!

Your Name:
Your E-Mail:

July 31, 2001

Forbes Predicts China Will Barter Weapons For Oil Within A Decade

The July 23rd issue of Forbes reports that oil demand in China and India will be dramatic within a decade. Last year Asia accounted for 92% of global net growth in oil consumption, whereas U.S. growth is only 1% a year and consumption in Western Europe is flat.

By 2010 the East-West Center, a Honolulu-based research institution, predicts Asia is expected to be importing 20 million barrels of oil a day...twice as much as the U.S. does today.

With more than 50% of the world's population, but endowed with only 4% of the world's proven oil reserves, East Asia is going to be dependent upon the Middle East for at least 80% of its oil. And the article predicts it's a good bet that China will barter weapons for some of that needed oil.


Starve Ups Alliance Embraces Barter To Move Forward

With venture capital funding drying up, a group of young companies based in Oregon have formed an alliance...naming themselves Starve Ups.

Their goal is to share insight and feedback on their businesses, offer resources to one another, and introduce each other to potential funding sources and customers. (The group excludes funders, vendors, consultants, and service providers who are often found feeding at the pond of start-ups.)

While networking is fairly common among start-ups, this group took it to the next level and formed a unit, and are bartering their individual expertise with each other. Formed in October 2000, the Portland group now has 13 members.


Three Indications Of Slowing Economy

#1) PricewaterhouseCoopers has backed off its prediction of a hotel-industry upturn in 2002, and is now slicing its estimates for lodging performance this year as well. A measure of room price and occupancy, revenue per available room, is, for only the second time in the 32 years such data has been tracked, falling.

(Since 1957, lodging led the decline during five of the past seven cycles, by an average of six months, so it's been a predictor of past recessions.)

#2) Executives who oversee computers and other tech gear at the biggest corporations have no plans to boost spending in the second half of the year, and they say they don't expect a return to their old spending ways anytime soon, according to The Wall Street Journal.

When they do buy something, they want to see a quick payoff from their investments. (That means big-ticket, long-term projects--the kind that mean hefty profits for tech companies--are out, and small deals are in.)

#3) The International Energy Agency, the West's answer to OPEC, says that world demand for oil will contract, and it expects the average growth in oil demand this year to be just 460,000 barrels a day, down sharply from the 1.9 million barrels a day it had initially expected last summer.



Here And There. . .

  • Change continues in the advertising world...as the world's largest advertising holding company, Interpublic Group, is pooling more than $40 billion in global ad-buying power in a bold bid to get better pricing for clients.

  • The new entity, Magna Global, is in essence a bulk shopper that will deal with the media powerhouses that control much of the most appealing advertising space, such a network television and national magazines.

  • Willing to trade your time and effort in exchange for free wheels? If so, AutoDriveaway.com may be of interest to you. They have more than 50 locations in the U.S. and Canada, looking for independent travelers to deliver cars from Point A to Point B. (Local offices are found on their web site.)

    It's easier to get a car if you're an older driver, planning to travel to major cities, and willing to travel in winter months. Try to set up the arrangement at least two weeks before you need the car, and expect to drive about 400 miles a day.

  • Music Buddha, a San Francisco-based music company which specializes in customized music research products and services, has signed twelve new radio stations to contracts for its online services. The company offers a variety of affordable pricing solutions which include barter.

  • AllBusiness, created as a result of the merger between AllBusiness.com and barter company BigVine, has appointed Tony Glaves as CEO. Glaves most recently served as
    president of Magnify Marketing Services.

  • Old PCs can be bartered for store discounts at a Staples office-supply store in Southern California. The Costa Mesa-based Staples takes the old PCs and strips them for recyclable parts, such as steel and plastic.

  • Across America the 771 taxpayer-supported public radio stations are acting more commercial all the time...the audience for public radio is up 57% over the past decade, while radio overall has seen listenership hours decline 13% since 1993. Corporate underwriting has ballooned as companies seek to reach an educated, affluent, and influential demographic.

  • In today's topsy-turvy world, we now see ailing or dead dot-com stocks (certificates) worth more than when things were booming. It all revolves around the most spectacular failure (the dot-coms) in recent stock market history.

    So now stock certificates of "famed" dot-com companies are actually selling for more than their market-listed prices. And the same is true for the dot-com companies that have gone out of business!

  • Gross profit margins on new cars is 8% at best and used cars around 11% on average, making it tough to trade with dealerships...unless substantial "ratios" are used. The same isn't the case when talking barter on service and parts, where profit margins are upwards of 60%.

  • Businesses made progress whittling inventories of unsold goods in May due to greater sales. Economists say it's crucial for companies to pare excess inventory in order to lay the foundation for increased production, later in the year.

  • Junk bonds saw a record $54.1 billion of defaults in the year's first half! A slowing economy, especially in the telecommunications sector, led many companies to miss interest payments or seek bankruptcy protection.

    The all-time record for defaults meant that total returns for the risky, higher-yield (normally) junk bonds are just 3.8% this year...lower than super-safe U.S. Treasury bonds.

  • Microsoft has traded its 75% ownership of Expedia to USA Networks, in exchange for a 4% interest in USA Networks.

 

We welcome your comments, questions, and observations.
Copyright BarterNews 2003. Redistribution of BarterNews content expressly prohibited without the prior written permission of BarterNews.