All posts by Amelia Jacobs

About Amelia Jacobs

Amelia Jacobs began her career in business following a surprisingly successful trip to China. Having visited the region as a tourist, she returned to America as an import-exporter. Today, Jacobs runs a thriving import-export company, splitting her time between Chicago and Shanghai. Contact Amelia at amelia[at]businessdistrict.com

Heinz Company Selling Chinese Frozen Food Subsidiary

Companies, News, , , ,
Heinz Selling Long Fong Foods

In advance of the $23 billion buyout this month of H.J. Heinz Company, the famous ketchup and condiments producer is selling of its China packaged food business, Shanghai Long Fong Company.
The buyer is Zhengzhou Sanquan Foods Company whose stock rose on the Shenzhen stock exchange to its highest point in eleven months as a response to the announcement of the purchase. The company, which sells frozen snacks and meals on the Chinese mainland, hopes to enlarge market share and increase its competitive edge as a result of the purchase of Long Fong. The companyannounced that it will be using internal financing and has not released the value of the deal.

Heinz stated that the sale is consistent with its “global strategy to de- emphasize non-core frozen food businesses outside the U.S.”

The Pittsburgh-based company added that the move is not connected with its sale to Berkshire Hathaway Inc. and 3G Capital Inc. for approximately $23 billion.

“The decision to seek a buyer for our Long Fong frozen foods business in China is unrelated to the merger agreement with Berkshire Hathaway and 3G Capital,” a spokesperson for Heinz stated.
 

Nemo Didn’t Hurt Car Sales, Ford Motor Says

Automobile Industry, , , , , ,
Cars OK After Nemo

According to Ken Czubay, head of US sales, service and marketing at Ford Motor Company, no expected downturn in sales should result after the recent blizzard that hit the northeastern United States.

It is wrong to compare the effects of the February blizzard, which some news outlets have dubbed “Nemo,” to the damage which Hurricane Sandy inflicted on auto sales back in November. In the case of Sandy there was actual damage to infrastructure which affected Ford’s ability to produce cars. Also, Sandy incapacitated approximately 200,000 brand new vehicles, says Chief Economist Paul Taylor of the National Automobile Dealers Association. Nemo is not expected to cause any significant damage to infrastructure.

Car manufacturers say that whatever losses they suffered in October and early November from Hurricane Sandy was made up in the following few months.

Business Versus Labor: Creating New Immigration Laws

News, , ,

Usually at odds over immigration laws, the AFL-CIO, the giant labor organization, and the Chamber of Commerce, have been requested to chisel out a proposal that will make everyone on both sides of the aisle in Congress happy.

This request was made by Senator Charles Schumer, Democrat of New York, in the hope that, given these two groups’ opposing interests, a compromise both Republicans and Democrats can live with will be created.

Most controversial on the list of reforms that labor and business don’t see eye to eye on is a guest worker program which will allow future immigrants to come into the country legally. Labor groups see the permission of foreign workers into the country as threatening since these workers will work for low wages. Business, on the other hand, would like to see more low-wage workers brought into the country, and the more legal they are, the better.

At the moment both sides of the issue appear optimistic that they can reach an agreement. Schumer is cautious however, since he and other observers note that this issue derailed a similar attempt at creating comprehensive immigration reform legislation back in 2007.

Better Late Than Never: Sandy Victims Applaud Aid Package Passage in House

Economy, News, , , ,
New Jersey Governor Chris Christie

In a joint statement delivered by New Jersey Republican Governmor Chris Christie and Democratic New York Governor Andrew Cuomo, the leaders stated their appreciation of the passage of a $50.5 billion Hurricane Sandy recovery aid package  in the House of Representatives.

“The tradition of Congress of being there and providing support for Americans in times of crisis, no matter where they live across this great country, lives on in today’s vote in the House of Representatives.”

The legislation allocating the funds will now have to go to the Democratic- controlled Senate, where it is sure to pass through quickly.

Republicans in the House did not move to pass the aid package as quickly as they could, debating on the effects of such a large allotment of funds on US debt reduction, spending and taxes.

New SEC Head May Push Through Advertising Proposal for Hedge Funds

News, , , ,
New SEC Chairman Elisse Walter

Elisse Walter, the newest head of the Securities and Exchange Commission, is likely to successfully push through a deal to ease rules which have been in place for decades restricting hedge funds, buyout shops and small businesses from marketing their wares in public.

Walter, a Democrat who took over the reins of the SEC last week, recently expressed her concern about the proposal. She has fears that loosening the restrictions on public advertising could result in instances of fraud or the sales of securities whose risks investors do not completely understand. Walter pointed out that although the regulators stand to benefit from the change in rules it is still the responsibility of the SEC to insure that investors are protected from risks and oversee hedge fund compliance.

Walter is the head of a commission split between two Republican members and two Democrats, one of them her. This make-up of the commission makes it appear like a compromise proposal will be hard, if not impossible, to achieve.

Analysts contend, however, that Walter will be able to persuade at least one of the Republicans to come to her side and adopt the new rule. It is believed that she will find common interests with the Republican members of the commission who want to allow advertising in this industry. The JOBS act mandated the provision for solicitation of investors by legislation which was approved in April by Congress.

“I am optimistic that Walter and the two Republicans can reach a deal,” said Brian Lane, a former director of the corporation finance division at the SEC while Arthur Levitt was chairman during the Clinton administration.