Download Examples of articles relating to market failure

Example of articles relating to market failure From WSJ
December 29, 2005
1.
Perez, E. 2005. Delta Pilots Clear Interim Wage Cuts. Wall Street
Journal (Eastern Edition), p. A.2, December 29. Retrieved January 31,
2006 from Wall Street Journal database.
The Air Line Pilots Association said the interim agreement with Delta
won approval by 58% to 42% among rank-and-file pilots who voted. The deal
gives the two sides until the end of March to reach a long- term
agreement on wage concessions, after which a three-person arbitration
panel could decide whether Delta can dump the pilots' collectivebargaining contract and impose terms.
In autumn 2004, the Delta pilots union approved a 33% wage cut as part of
$1 billion in annual givebacks, while nonunion workers had a 10% pay cut
imposed on them, in a bid to help the company avert a bankruptcy-court
filing. Delta filed for Chapter 11 on Sept. 14, and, after failing to
reach a new deal with the union, asked the U.S. bankruptcy court to allow
it to dump its pilots contract and impose new pay cuts, as it had done
with its nonunion workers.
2.
Lee, J.L. and P. Glader. 2005. Baotou Iron Holds Talks to Sell Stake To
Mittal Steel. Wall Street Journal (Eastern Edition), p. B.2, December
29. Retrieved January 31, 2006 from Wall Street Journal database.
Although Valin produces 8.5 million metric tons of steel a year, more
than Baotou at present, a stake in Baotou could fetch a higher price than
Valin did because of its raw-material assets and because the values of
steel companies have risen dramatically in recent months. Last week,
Luxembourg-based Arcelor upped its bid for Canadian steelmaker Dofasco
Inc. to US$4.2 billion.
Sridhar Krishnamoorthy, country manager of Mittal Steel China, said
Mittal Steel has "looked at" another Chinese steelmaker, Kunming Iron &
Steel Group, but hasn't made any progress beyond that. "There were some
reports that we were doing a JV [joint venture] and all that, but that's
not true," he said.
3.
Emshwiller, J.R. and J.M. Biers.2005. Enron Prosecutors Gain New Ally;
Causey Plea May Offer Look Into Top Officers' Actions Before Company's
Collapse. Wall Street Journal (Eastern Edition), p. A.3, December 29.
Retrieved January 31, 2006 from Wall Street Journal database.
In Houston yesterday, Mr. Causey pleaded guilty before U.S. District
Judge Sim Lake to one count of securities fraud in connection with his
work at Enron, which collapsed into bankruptcy proceedings in December
2001. Under the plea agreement the Justice Department's Enron Task Force
prosecutors and Mr. Causey's attorneys would seek a seven-year prison
sentence for him. However, prosecutors could recommend a reduction to
five years if Mr. Causey provides "truthful, complete, and accurate
information" in the federal Enron investigation, the agreement added. Mr.
Causey also agreed to forfeit $1.25 million to the government.
Mr. Causey's help to the government would almost certainly involve
information about what his two former bosses, Mr. [Kenneth Lay] and Mr.
[Jeffrey Skilling], knew about the financial and business affairs of
Enron prior to its collapse. In his plea agreement, Mr. Causey admitted
that he "conspired with members of Enron's senior management to make
false and
misleading statements" about the company's financial condition. The
government has charged Messrs. Skilling and Lay with lying to the public
about the company's condition and helping to orchestrate transactions to
hide Enron's mounting problems. Messrs. Skilling and Lay have pleaded not
guilty to the charges.
4.
Lieber, R. 2005. Home & Family -- Cranky Consumer: The Dirt on Green
Housecleaners. Wall Street Journal (Eastern Edition), p. D.5, December
29. Retrieved January 31, 2006 from Wall Street Journal database.
Perry Phillips, the executive director of the Association of
Residential Cleaning Professionals says that the green-cleaning concept
is particularly hot on the West Coast, where he figures that up to 50% of
companies do some sort of "natural" cleaning. "It's definitely the buzz n
the industry right now," he says.
We found most of the home-cleaning services in the major cities where
sales of organic and natural products tend to be much higher than the
national average. In Los Angeles, we used a local franchise of a national
chain with a "healthy touch" cleaning program that uses environmentally
"preferable" products. In New York, meanwhile, we sprang for the full
"spring cleaning" package from a local outfit that burns essential oils
while cleaning and leaves organic chocolate on the pillow.
Deanna Hains, ZENhome's owner, says she is aware that large, new windows
may be harder to handle for smaller, female cleaners, and that she might
adjust staffing on her spring-cleaning crews. "We're a new company, and
we're learning and trying to make this as five-star a service as
possible," she says.
5.
Nakamichi, T. 2005. Japanese Economic Data Show Recovery on Track. Wall
Street Journal (Eastern Edition), p. A.9, December 29. Retrieved January
31, 2006 from Wall Street Journal database.
"Overall, those data mean that Japan is sure to emerge from deflation
soon," said Koji Fukaya, chief economic researcher at Bank of
Tokyo-Mitsubishi, referring to the persistent decline in prices that has
for years weighed on the country's economy. "Domestic demand is
maintaining strength, and production is picking up steadily. Japan's
economic uptrend remains firm, although the pace of its growth has been
not brisk, but incremental."
6.
Wall Street Journal(Eastern Edition), . 2005. Austrian Airlines: AgeBias Lawsuit Is Settled With Ex-Worker For $500,000, p. A.5, December 29.
Retrieved January 31, 2006 from Wall Street Journal database.
The Equal Employment Opportunity Commission said Austrian Airlines
has agreed to pay $500,000 to settle an age-discrimination lawsuit.
7.
Wall Street Journal(Eastern Edition). 2005. Bird-Flu Stock Scams Take
Wing, p. D.2, December 29. Retrieved January 31, 2006 from Wall Street
Journal database.
"This is an age-old pump-and-dump scheme with a brand-new disguise,"
said John Gannon, NASD vice president of Investor Education.
"Unfortunately, fraudsters are quick to exploit every new crisis or
catastrophe to peddle their get-rich-quick scams to unsuspecting
investors."
8.
Wall Street Journal(Eastern Edition). 2005. Bristol-Myers Squibb Co.:
New Cancer Drug's Application Seeks Priority Review by FDA, p. D.7,
December 29. Retrieved January 31, 2006 from Wall Street Journal
Database.
Bristol-Myers Squibb Co. said it completed an application to the Food
and Drug Administration for approval of a new cancer drug.
9.
Wall Street Journal(Eastern Edition). 2005. Probe Finds No Evidence of
Tailored Stem Cells, p. B.4, December 29. Retrieved January 31, 2006 from
Wall Street Journal database.
"The panel couldn't find stem cells that match patients' DNA
regarding the 2005 paper and it believes that [Hwang Woo Suk]'s team
didn't secure scientific data to prove that [stem cells] were made," Dr.
[Roe Jung Hye] said.