MarketLine Blog

Posts written by Tom Hawthorn

From GM to PSA: Why the sale of Vauxhall Opel is good for shareholders but bad for workers

MarketLine

US-based General Motors is the world’s third largest automobile manufacturer by sales, and second largest by revenues. French-owned Groupe PSA, which sold nearly 3.2 million vehicles and had revenues of €54bn ($57bn), is a fairly small player in comparison. GM’s ownership and continued management of Vauxhall Opel is at odds with the rest of its portfolio – the company primarily operates in the US and Asia, selling brands including Chevrolet, Buick, Holden and Wuling – while PSA operate Peugeot, Citroen and DS Automobiles primarily out of Europe. The sale of… Read more

Piracy: The social acceptability of theft and its effect on the movie industry

MarketLine

Internet piracy has been around almost as long as the internet itself. Communities exist, consisting of millions of web users, which are dedicated to sourcing, converting and sharing valuable copyrighted material. Some – The Pirate Bay – were the inspiration for political parties. Others – Megaupload – were responsible for accelerating the fortunes of a small group into the billions of dollars. But all major sites have been in the spotlight for a decade, coming and going, constantly switching web hosts from Sweden to Somalia to Costa Rica, managing to… Read more

Tesco-Booker: The Squeeze on Small Businesses

MarketLine

Tesco, one of the largest retailers in the world, is the most dominant supermarket in the UK market. Its recent announcement to merge with Booker was a surprise to all. Booker occupies a very different area of the market, primarily offering bulk-purchase supply to small retailers, both independent and franchised stores under brands it owns, such as Londis and Budgens. At first glance then, this seems an odd target for Tesco; to merge operations with a company whose target market is so different to its own. Indeed, no one considers… Read more

OPEC: Supply restriction amid global oil glut

MarketLine

OPEC, consisting of 13 oil-rich governments, is the only true cartel allowed, albeit grudgingly, to operate in today’s global economy and it wields considerable power. In 1973 Arab members imposed an oil embargo on the US during the Arab-Israeli war which tripled prices in a matter of months. Three times in recent history OPEC has stepped in to shore up the oil market, and each time prices rallied within days of action being taken. It is fair to say, therefore, that OPEC is a force to be reckoned with. Or… Read more