Wall Street Journal Business Association

2/17/15 @ 112 Thomas from 7-8 PMGeneral Body Meeting #1

Apple

http://www.wsj.com/video/apple-700-billion-valuation-still-a-buy/38A7FBB6-13A9-4ABC-8963-BD2108C03EBA.html

Agenda● Welcome/Introductions● Organization Overview● Membership Point System● Review● Preview● Seeking Alpha● Wrap-up

Membership Point System

● Membership Point System● Attendance: 2 points● Analyzing/Presenting: 2 Points● Event: 2 points ● Active Member Status: >10 points● Obtaining more than active member points results in

distinguished member status

Corporate Tax ReformRates

● Current: 35%● Proposed 28%● High US taxes reduce the global

competitiveness of U.S. multinationals

● Need tax reform, not economic stimulus

Effects● Global vs Territorial● Patriotism● No holding income overseas● More spending/focus in U.S. on

corporate infrastructure instead of tax structure

● American Innovation● (Infrastructure spending = economic stimulus)

Corporate Tax ReformAmerica

“The Double Irish”

O Tax avoidance measure in Irish law to send royalty payments for intellectual property from one Irish subsidiary to another that resides for tax purposes in a country with no corporate law

O Ex: Google

Chinese Economic Overhaul and Reform

❖U.S. – China technology tariff agreement

❖Hong Kong – Shanghai capital market

agreement

❖Emerging Chinese middle class

SpinoffsSpinoff - The creation of an independent company through the sale or distribution of new shares of an existing business of a parent company in order to focus on core business operations.

MSG Spinoff❖MSG itself was a spinoff from Cablevision Systems in 2010❖MSG Sports, MSG Media, MSG Entertainment❖Shareholders maintain shares but can decide to split shares or transfer shares ❖MSG Sports

➢ revenues of $202.5 million increased 10%❖MSG Media

➢ revenues of $166.2 million decreased 8%. ❖MSG Entertainment

➢revenues of $194.1 million increased 19%

Other Spinoffs❖ Hewlett-Packard

➢ PC & Printer Business from Hardware

❖ Sears Holdings → Land’s End (2014)❖ Safeway → Blackhawk Network Holdings (2014)❖ Time Warner → Time Inc

➢ Separation of Entertainment & Media

❖ Kimberly-Clark Corporation → Halyard Health❖ Modelez International → Kraft Foods Inc. (2012)

Younger Generation Savings DeficitCore Issues

● Millennial’s are saving negative amounts of money

● What does this mean?^● Weak job market● Heavy student debt

● Age<35 saving -2%● Age<44 saving 3%● Age<54 saving 6%● Age>55 saving 13%

Effects● No financial cushion● Tougher job transition● Farther from home ownership, etc.● This is why we have WSJBA● Long term→ spending will be

impacted ● However overall Americans are

saving

Younger Generation Savings Deficit

Younger Generation Savings Deficit

Video

O http://online.wsj.com/articles/savings-turn-negative-for-younger-generation-1415572405?mod=WSJ_hps_sections_news

More Consideration

O Student debt has risen from from a median 6,100$ in 1995 to now 17,200$

O Solution? Government could heavily subsidize majors with highest marginal utility (most economic benefit ) $$$

Younger Generation Savings Deficit

Solutions

● Your employer’s plan (401k)● Employers sometimes match

● Vanguard Target Funds● Schwab’s Index Funds● Exchange Traded Funds● Actively managed funds

Bottom Line

● Don’t have to invest, but start saving

Preview

● Oil prices

● Household debt

● Reverse Technology

Wrap Up● Present an important trend for membership points

● Attend a service event to help out the community

● Feedback survey

Review ArticlesO http://online.wsj.com/articles/savings-turn-negative-for-younger-generation-1415572405?mod=WSJ_hps_sections

_news

O http://blogs.wsj.com/economics/2014/11/10/one-lesson-people-increasingly-learn-in-college-saving/

O http://online.wsj.com/articles/investing-options-for-a-small-budget-1415495479?mod=WSJ_hps_sections_yourmoney

O http://online.wsj.com/articles/peter-thiel-on-why-big-companies-dont-think-like-startups-1414962990

O http://online.wsj.com/articles/what-college-can-teach-the-aspiring-entrepreneur-1414965300

O http://online.wsj.com/articles/gene-sperling-believe-it-or-not-corporate-tax-reform-is-doable-in-2015-1412808733?KEYWORDS=corporate+tax+reform

O http://online.wsj.com/articles/we-need-tax-reform-not-stimulus-letters-to-the-editor-1413744944?KEYWORDS=corporate+tax+reform

O http://online.wsj.com/articles/ireland-closes-one-tax-break-and-opens-another-1415149644

O http://blogs.wsj.com/pharmalot/2014/10/15/what-does-closing-the-double-irish-tax-loophole-mean-for-pharma/

Preview Articleshttp://blogs.wsj.com/corporate-intelligence/2015/02/17/bp-oil-supply-will-outpace-demand-for-years/

http://www.wsj.com/articles/u-s-household-debt-rises-slightly-in-to-11-83-trillion-1424188820?mod=WSJ_hp_LEFTWhatsNewsCollection

http://www.wsj.com/articles/at-ups-the-algorithm-is-the-driver-1424136536?mod=trending_now_4

http://www.wsj.com/articles/can-apple-keep-up-its-growth-spurt-1422493028