To add value to McCafe, takeover Dunking Donuts to compete with Starbucks

Dunkin’ Donuts is an international doughnut and coffee retailer founded in 1950 by William Rosenberg in Quincy, Massachusetts;[1] it is now headquartered in Canton. While the company originally focused on doughnuts and other baked goods, over half of its business today is in coffee sales, making it more of a competitor to Starbucks than to more traditional competitors such as Krispy Kreme.[3]
The company has opened more than 10,000 locations in 32 countries worldwide [3], which include more than 6,700 Dunkin’ Donuts locations throughout the United States and more than 3000 international locations.[4] This figure compares with the 17,009 stores of coffee chain Starbucks, whose baked goods are usually prepared out of shop. Nearly all of Dunkin’ Donuts locations are franchisee owned and operated.[5] Only 75 franchisees exist west of the Mississippi River, mostly in Arizona, Nevada, New Mexico, and Texas.[6] Within their Northeast home base, however, Dunkin’ Donuts is particularly dominant and can be found in many gas stations, supermarkets, mall and airport food courts, and Walmart stores across the region.
Dunkin’ Donuts, along with Baskin-Robbins, is co-owned by Dunkin’ Brands Inc. (previously known as Allied Domecq Quick Service Restaurants, when it was a part of Allied Domecq). Dunkin’ Brands used to own the Togo’s chain, but sold this in late 2007 to a private equity firm. Dunkin’ Brands was owned by French beverage company Pernod Ricard S.A. after it purchased Allied Domecq. They reached an agreement in December 2005 to sell the brand to a consortium of three private-equity firms, Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners.

In the United States, Dunkin’ Donuts is sometimes paired with Baskin-Robbins ice cream shops. While such locations usually have two counters set up for each chain (much like the Wendy’s/Tim Hortons co-branded locations), depending on business that day, both products can be bought at the same counter (usually the Dunkin’ counter), much like the Yum! Brands stores.
The company’s largest competitors include Krispy Kreme donuts and Starbucks, as well as small locally owned donut shops. In Canada and parts of the northern United States, Tim Hortons is a major competitor. In Colombia Donut Factory had been its local rival, although Dunkin’ still is preferred and has encouraged this desire by adapting their donut selection to local tastes.[7] Mister Donut had been its largest competitor in the United States before the company was bought by Dunkin’ Donuts’ parent company. The Mister Donut stores were rebranded as Dunkin’ Donuts. Dunkin still controls the trademark rights to the Mister Donut trademark through various new and amended older trademark registrations with the USPTO.
First advantage, ready market worldwide, second, branding where McCafe can be side by side Dunking Donut, extended markets for both products where automatically I can list McCafe with as big a capitalisation as Starbucks after that. Whatever ROI you invest will be doubled. This is a once in a lifetime opportunity where the returns are guaranteed, you will not lose money.
You make money then you want you can reward me, I actually do not need anything in return. Once I complete my own projects I will worth more than Apple, Google, Microsoft, Facebook combined.
– Contributed by Oogle.

It is possible to travel beyond the speed of light

“By warping two different points in space thru a black hole, where the two different points are brought together like a warped tunnel, it is possible to travel beyond the speed of light, where time travel is also possible into another dimension.” – Contributed by Oogle.

Wednesday, 10 October 2012
University of Adelaide applied mathematicians have extended Einstein’s theory of special relativity to work beyond the speed of light.
Einstein’s theory holds that nothing could move faster than the speed of light, but Professor Jim Hill and Dr Barry Cox in the University’s School of Mathematical Sciences have developed new formulas that allow for travel beyond this limit.
Einstein’s theory of special relativity was published in 1905 and explains how motion and speed is always relative to the observer’s frame of reference. The theory connects measurements of the same physical incident viewed from these different points in a way that depends on the relative velocity of the two observers.
“Since the introduction of special relativity there has been much speculation as to whether or not it might be possible to travel faster than the speed of light, noting that there is no substantial evidence to suggest that this is presently feasible with any existing transportation mechanisms,” said Professor Hill.
“About this time last year, experiments at CERN, the European centre for particle physics in Switzerland, suggested that perhaps neutrinos could be accelerated just a very small amount faster than the speed of light; at this point we started to think about how to deal with the issues from both a mathematical and physical perspective.
“Questions have since been raised over the experimental results but we were already well on our way to successfully formulating a theory of special relativity, applicable to relative velocities in excess of the speed of light.
“Our approach is a natural and logical extension of the Einstein Theory of Special Relativity, and produces anticipated formulae without the need for imaginary numbers or complicated physics.”
The research has been published in the prestigious Proceedings of the Royal Society A in a paper, ‘Einstein’s special relativity beyond the speed of light’. Their formulas extend special relativity to a situation where the relative velocity can be infinite, and can be used to describe motion at speeds faster than light.
“We are mathematicians, not physicists, so we’ve approached this problem from a theoretical mathematical perspective,” said Dr Cox. “Should it, however, be proven that motion faster than light is possible, then that would be game changing.
“Our paper doesn’t try and explain how this could be achieved, just how equations of motion might operate in such regimes.”

No pain no gain : Why early retirement planning can help you be financially free

September 14, 2012
Study after study has been released describing Americans’ inadequate preparations for retirement. Many soon-to-be retirees haven’t saved enough, and many people in the younger generation aren’t taking the appropriate first steps. Here are four necessary ways to prepare for a successful retirement:
1. Live within your means. This is the first rule of successful finances, but far too many people neglect it. Living within your means isn’t just about making sure that you don’t exceed your income each month. It’s also about planning ahead, and setting aside money for rainy days and for retirement.
Living within your means involves being ready for just about anything financially. You can’t be ready if you spend every cent you bring in each month. You have to prioritize your spending, and cut out unimportant expenditures. Not only will this help you save up for retirement, but it will also help you develop good financial habits that will ensure that your budget remains under control in retirement.
2. Maximize your employer match. When you aren’t taking advantage of your employer match, you’re leaving money on the table. If your employer’s plan isn’t very good, contribute the amount necessary to get the match, and then open your own retirement account. A Roth IRA is a good choice if you meet the requirements. Try not to leave free money behind when you could be using it to your advantage.
3. Pay off your debt. It is ideal to have no debt at all by the time you retire. Aim to pay off all your debt before retirement. This includes mortgage debt as well as credit card and car debt. The more debt you have, the larger the demands on your income.
When you are living on a fixed income, the fewer obligations you have, the better off you will be. Make it a point to create a debt reduction plan that will have you financially free by the time you retire.
4. Ongoing planning. Our finances are rarely set in stone. You will typically need to do some ongoing planning. It’s important to periodically revisit your retirement plan. Do you still have the same goals and interests? Has your financial position changed? Is your portfolio helping you meet your goals?
Every so often, review your retirement plan, and make tweaks as needed. This is important even after you have retired. Your account and life insurance beneficiaries and the portion of your budget that goes toward health care costs are examples of things that might need to be adjusted during retirement.
You also need to consider aspects of your retirement that may not be directly related to finances. Don’t forget to think about the kinds of activities and hobbies you want to engage in, as well as the relationships that you plan to build. Developing your social life and hobbies can improve your quality of life in retirement.
Jeff Rose is a certified financial planner and U.S. combat veteran. He blogs at Good Financial Cents and Soldier of Finance.
Most important Rule : You need to earn enough money to buy insurance to cover all your risks for a rainy day umbrella. Not only that, have enough savings of at least six months CASH in case of emergency. After you have achieved that then have enough savings to plan for investments to have multiple incomes to quickly reach your goals. You can set smaller goals in shorter timeframe with multiple tasks, achieving one by one, and eventually reach your final goal. You need to monitor your portfolio periodically to see how far away you are from your goals and tasks. That is the work of a financial planner to give you advice. That is the only way to plan for retirement planning where you will find financial success.
– Contributed by Oogle.

China Economy is still a Closed economy, it need to open up it’s Financial markets for Capital Inflows so that it will balance the outflows

“For a long time, Chinese banks’ yuan holdings for purchasing foreign exchange have been a channel for the central bank to create money. Now the old pattern is about to change, which means the central bank needs to find new ways to issue currency if it wants to maintain stable money supply growth,” said Cao Yuanzheng, chief economist at the Bank of China Ltd.
China posted a monthly capital outflow in August for the third time in 2012, as its economic growth fell to a three-year low and softened for the sixth consecutive quarter.
Yuan holdings among banks for purchasing foreign exchange, an important measure of capital flows, declined by 17.4 billion yuan ($2.75 billion) in August to 25.64 trillion yuan, marking the second straight monthly fall.
It widened from a decline of 3.8 billion yuan in July as the nation’s economic growth slowed to its lowest rate in three years.
Foreign exchange has become a main source of the country’s liquidity over the past two decades as the central bank sterilized its fluctuation to stabilize the yuan exchange rate.
Yuan holdings of foreign exchange purchases started to increase at the beginning of the year after three consecutive monthly declines in the fourth quarter of 2011. But the hikes ended in April, when a 60.6 billion yuan monthly fall was reported.
In the first eight months, the average monthly increase of yuan holdings was only 35.2 billion yuan, far from the average monthly gain of 231.6 billion throughout last year.
“In August, despite the significant drop in international market hedging demand, banks’ yuan holdings still declined. This proves that pressure for yuan devaluation will remain in the medium and long term,” said Liu Yuhui, director of the financial lab of the Chinese Academy of Social Sciences.
This year, offshore non-deliverable yuan forwards have been higher than the onshore spot exchange rate, and the spread between the two is likely to become much greater, “which indicates that expectations remain that the yuan will depreciate”, said Cao.
“But we tend to believe that the conditions do not exist for the yuan to depreciate further, as the Chinese economy is still in a stable and controllable range, and foreign reserves remain large.”
The depreciation tendency once again indicates that the yuan’s exchange rate is close to equilibrium, he said.
“We believe that capital flows related to yuan exchange rate expectations is the most uncertain factor affecting overall capital flows,” said Wang Tao, head of China economic research at UBS Securities Co Ltd.
Capital outflows will be constant and substantial as China’s current account surplus continues to decline and global demand remains weak. The trend is also due to growing expectations that the yuan will depreciate, and the fact that Chinese residents prefer to hold foreign assets, she said.
“The financial account deficit plus a lower current account surplus means that China may have entered a new era, that is, the stagnant growth of foreign exchange reserves.”
Wang said the central bank, the People’s Bank of China, has to change the combination of liquidity management tools, although the tone of monetary policy would not be affected.
“For several years, with massive foreign inflows, managing domestic liquidity was fairly straightforward – ensuring that enough liquidity was mopped up. The central bank combined open market operations with higher reserve requirements to do this,” said Louis Kuijs, chief China economist at the Royal Bank of Scotland.
“With trend inflows now lower, monetary policy needs to be more agile.”
Cutting the reserve requirement ratio for commercial banks had been a commonly used tool of the central bank to deal with capital outflows.
“For example, from December to May, the central bank lowered the RRR three times as capital flew out and liquidity tightened,” said a report from Guotai Junan Securities Co.
“But since July, despite capital outflows, it seems that the central bank has been reluctant to cut the RRR. A major reason behind that is probably the hike in foreign currency-denominated deposits,” it said.
In the first six months, such deposits held by banks have increased by $130.1 billion, up $99.4 billion compared with the same period last year, according to data from the State Administration of Foreign Exchange.
Adjusting the RRR usually lacks flexibility, and once the yuan appreciates, enterprises and individuals would prefer to convert those deposits to yuan, adding extra liquidity to the market, said the report.
The central bank has been increasing its use of short-term money market tools such as reverse repurchase transactions to ease liquidity tension, after it last cut the RRR in May by 50 basis points to 20 percent for major banks.
It injected massive liquidity through another round of reverse repurchase operation in the last week of September.
From Sept 24 to 27, it injected 365 billion yuan, a record high weekly injection through open market operations.
On Sept 25, the central bank pumped a record 290 billion yuan into the market by conducting reverse repos to ease a cash crunch as the quarter came to an end and the Mid-Autumn Festival and National Day holidays approached.
In a statement published after its third-quarter monetary policy meeting in September, the central bank said it would continue to implement a prudent monetary policy, while fine-tuning the stance with more targeted, flexible and forward-looking tools.
It added it will closely monitor the impact of recent rescue and stimulus policies in Europe and the US, as global economic growth remains weak.
Zhao Xijun, deputy dean of the School of Finance at Renmin University of China, said the international financial market remains troubled at present and, judging from the current situation, there is no clear direction of capital flows.
“It’s still hard to say whether the capital outflows will continue in the next few months. But certainly the increase in yuan holdings for purchasing foreign exchange would fall compared with past years, mainly due to drops in the trade surplus,” Zhao said.
“Generally speaking, liquidity supply has already changed, although it wouldn’t put too much pressure on the central bank right now.”
Buying treasury bonds in the secondary market would become a major channel for the central bank to create money in the future, China Business News reported, citing an anonymous analyst close to central bank decision-makers.
But controlling liquidity through purchases and sales of treasury bonds requires a bigger and more mature secondary market. Otherwise, large-scale purchases made by the central bank would raise interest rates and spur the issuance cost of such bonds, said the analyst.
“Currently, central bank bills and treasury bonds are in separate markets. Only if China completely frees interest rates could the two markets be linked and the central bank could operate like the US Federal Reserve,” Zhao said.
Before the sterilization of foreign exchange fluctuations became a mainstream channel to issue currency, re-lending to commercial lenders was the main tool of China’s central bank to create money, accounting for 80 percent of newly injected money in the 1990s.
It’s unlikely that China will return to relying on re-lending, which lacks a direct connection with the real economy, said analysts.
Some said it was too early to say that the liquidity supply system will turn from a “passive” to “proactive” pattern as the yuan would probably go up and attract capital inflows due to policy loosening in major economies, such as the Fed’s third round of quantitative easing, the European Central Bank’s bond-buying plan, and the formal launch of the 500 billion-euro European Stability Mechanism on Monday.
The yuan climbed on Sept 28 to its highest level against the US dollar since it was unpegged from the greenback in July 2005.
Yu Yongding, a former adviser to the central bank, said in September that it’s time for the central bank to reduce intervention in currency markets and let the yuan float freely, as economic growth will remain at a lower level compared with recent years and capital flows become two-way.
China should take advantage of the opportunity that market sentiment might drive down the dollar to broaden the range of the yuan’s exchange rate, said Liu Yuhui from the academy.