FACEBOOK: A success story? Which makes jealous persons

Facebook is a social networking website which was launched on February 4, 2004, by Mark Zuckerberg. Initially the membership was restricted to students of Harvard.

In May 2005, Facebook raised $12.7 million in venture capital from Accel Partners.
On August 23, 2005, Facebook bought the domain name facebook.com.

FACEBOOK value is 10 billion $


According to the wall street journal Microsoft would negotiate to buy shares of Facebook, at the level of 5 %, is an investment from 300 to 500 million dollars.
Of this fact the valuation of FACEBOOK will be 10 billion dollars more or less 5 billion pounds.

The CEO and the founder of FACEBOOK : Mark Zuckerberg want to keep it independent. Last year FACEBOOK refuse an offer of Yahoo who want to buy FACEBOOK for 1 billion $.

Facebook want to compete Microsoft and google, so Mark Zuckerberg wants to raise 500 million dollars for the development of its activities.

According to the financial time of Wednesday 26 September 2007 FACEBOOK has over taken one their most important competitor MySpace.


In UK 20% of the internet user visited the FACEBOOK site during august.
This is a record for FACEBOOK the first times that is overtaken their competitor in Europe.

Furthermore the visitor number increase more than 500% in UK this is Incredible. While in the same period MySpace grew just 20%...
I think that you can explain this development by the fact that you can stay alone on face book you have to invite your friend and your friend invites their friend…. Domino effect Strengthen also by the numbers of the application more and more important and attractive…

In my opinion it just the beginning of the success of facebook. It’s a very fun and useful web sites. Personally, he help me to find lot of old friends with who I have no news for very long times. And for my semester in London it permits to keep contact with my friends and family to show us pictures….


geoffrey THIRIEZ geoffrey.thiriez@espeme.com

The eure 1,41 dollar the new evereste

Since the creation of the euro in 1999:

The euro is at the pick.

The euro could climb until 1,44 dollar in the next two months, estimated one a big European bank, which considered that there was a " weakness generalized by the dollar ".

To follow the evolution of the euro click here!

Why euro is so strong ?

Because of the BCE: European Central Bank and the president Jean-Claude Trichet or of the interest rates so strong, since they afraid about the increase of the inflation rates.
But I think is not the principal reason.
The first one is because euro is “sexy” more and more country wanted euro for money like Malta and Cyprus in 2008, Slovakia in 2009, Lithuania, in 2010 Latvia, Hungaryin 2011, the Czech Republic, Poland in 2012, Rumania in 2014 and Bulgaria and Estonia indefinite date.

Lot of country has reserves of exchange in euro for example China, Kuwait….
Eight years ago, the euro, it was hardly 20 % of the reserves in the safes of the central banks of the whole world, it is 25 % today.

But because the euro is the currency of a major power, Europe, Euro-zone more exactly. 380 million of habitants. A production close to that of the United States. A globally rich, dynamic and healthy economy. Here is what attracts; here is what strengthens the euro.

The impact for European economy ?

The euro strong is worst for European economy especially for us export in front of the competition of the other countries like USA…

Just one positive point the petrol sell in dollar so for European country is cheapest but at 84 dollar the barrel is expensive. But it is another subject has to follow on our bog.

Geoffrey THIRIEZ geoffrey.thiriez@espeme.com

Spring:

http://www.lesechos.fr/ http://www.lefigaro.fr/ wikipedia.org ; boursorama.com ; lemonde.fr

1929 Wall Street Crash : The black week!

At the time of the crash, The New York Stock Exchange (NYSE) was the largest stock market in the world.

So now we can say that the 1929 crash was one of the most devastating stock market crashes in American history.

The reasons of the crash:

The 1920’s was very strong increase in United State. for example between 1921 and 1929 the production increase more than 50%, the stock exchange increases by 300 % over the same period.

A speculative bubble

A speculative bubble, begins by 1927. She is amplified by the new system of credit purchase of shares, since 1926: The investors can buy titles with a cover of only 10 %. The rate of loan depends on the short-term interest rate; the perpetuity of this system thus depends on the difference between the rate of appreciation of the shares and this rate of loan.

The economy from the beginning 1929 is not so strong any more: for example the automobile production falls of 622 000 vehicles in 416 000 between March and September. The industrial production, it, moves back of 7% between May and October. This slowing down is partially due to a phenomenon of asphyxiation: current assets run up to the stock exchange rather than towards the "real" economy.

October 24th, 1929 Black Thursday, the market finally turned down, and panic selling started. 12,894,650 shares were traded in a single day.

The numerous investors who borrowed to speculate are forced to liquidate their positions.

At 12 o’clock the wall street loses 22,3% But an emergency meeting between five of the main bankers of New York improves the situation is finally the stock exchange loses only 2,1 %.

Monday and Tuesday BLACK

The situation is still the same but the bankers do not intervene so the stock exchange going down: He loose 13% on Monday and 12% and Tuesday.

Between October 22nd and November 13th, the Dow Jones index passes from 326,51 to 198,69 (39 %), what corresponds to a virtual 30 billion dollar loss.

The consequences of the crash:

The reliable loss due to the stock market crisis affects the consumption and the investments during the months following the crash. The investors who speculated by borrowing cannot pay off any more and talk dead losses the crisis becomes then a banking crisis from 1930.The production continue to fall, the unemployment explodes (from 1,5 millions to 15 millions in 1933), and the banking crisis becomes an economic crisis in 1931.

It is that with the entrance of the United States to the Second World War at the end of 1941 that the country stands up durably.

Geoffrey THIRIEZ geoffrey.thiriez@espeme.com