China Allows Value Of Currency To Fluctuate
In advance of the approaching G20 summit in Toronto, China's central bank allowed its nation’s currency, the Yuan, to rise .42% yesterday against the dollar, the largest daily increase since 2005. The move, analysts say, was made to help ease international tension prior to the summit and appease critics who have argued the Yuan is artificially low, giving Chinese exporters an unfair competitive advantage in global trade. "I think it takes an irritant off the table in the U.S.-China relationship," said Jon Huntsman, U.S. ambassador to Beijing.

However, by the end of yesterday and in the beginning of trading today, the yuan had depreciated again to its original value. Analysts say the sudden shifts show China's new willingness to allow markets to dictate the currency's value, but also that the government will not allow it to appreciate quicker than it is comfortable with. In response to the flcutuating value of the Yuan, many major stock indexes rose sharply on Monday. Meanwhile, President Barack Obama called the move "a constructive step that can help safeguard the recovery" and a spokesman for Japan's finance minister described the revaluation as "a plus for the China and Asia economies as well as the world economy."

Besides improving the flow of global trade, economists believe a strengthened Yuan will help China control inflation and reduce its dependence on export-driven growth, yielding to increased domestic consumption. However, the increase in value of the yuan will also lead to increased costs on goods exported from China, such as many of the items sold in the ad specialty market. "In the long run, export businesses would improve business management and expand the industrial chain to make themselves more competitive internationally," said Yao Jian, a spokesman for the Chinese Commerce Ministry.

While the revaluation is viewed by most as a positive step, analysts warn that China will not allow the Yuan to appreciate too quickly. A recent Reuters poll showed 33 economists expect the Yuan to end 2010 at 6.67 per dollar, a rise of only 2.4% from late last week. The policy decision by China to strengthen the Yuan slowly has already angered several key U.S. legislators, including Senator Chuck Schumer, vice-chairman of Congress' Joint Economic Committee. "Just a day after there was much hoopla about the Chinese finally changing their policy, they are already backing off," said Schumer. "It vindicates our initial skepticism."

Unconvinced the revaluation will provide significant change to global trade markets, Schumer and Senator Sherrod Brown have introduced a bill that could lead to China being branded a currency manipulator by the U.S. The legislation would eventually allow the U.S. to impose tariffs on Chinese exporters and raise costs on Chinese goods even further. It's a move the Obama administration has not voiced support for.

BIC Sells Messenger Unit
BIC APP, which includes Counselor Top 40 supplier BIC Graphic North America (asi/40480) and Norwood, has announced the sale of its Indiana-based Messenger stationery operation. Prairie Capital, an investment firm in Chicago, has purchased the 97-year-old operation, although terms of the deal were not disclosed. "Messenger has been a successful part of the Norwood organization for many years and we believe that they will continue to thrive under new ownership," said Nicolas Paillot, CEO of BIC APP.

The Messenger operation will remain in Auburn, IN, independently producing funeral stationery and related items. The company's product line includes register books, prayer cards, bookmarks and memorial calendars. By selling the company, BIC APP plans to continue its integration of BIC Graphic and Norwood by focusing on ad specialties.

"Our core business is promotional products and this step allows us to purely focus on the process of integrating the operations of Norwood and BIC Graphic," said Paillot. "As we continue to build on the best practices of each brand, we are confident that our new organization will be the most customer service focused and efficient in the industry."

Messenger, which was founded in 1913, sells exclusively to licensed funeral directors. The company, formerly owned by Norwood, was officially sold to Prairie Capital on June 18.

The Joe Show: Retro Products
In conjunction with the Hot Issue of Counselor this August, Managing Editor Joe Haley is dedicating The Joe Show over the next few weeks to showing off the hottest products in the ad specialty market. Broken into fun categories, each week he'll focus on a different theme – and then each of the items will be shown in the August Hot Issue.

In this episode, Joe goes back in time to see why retro products have become cool again. Jump into The Joe Show Time Machine and see how the sixties and seventies are impacting product design today. Want promotional ideas for your hippest clients? Check out this episode. 

Click here to see this Hot Products edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Online Ad Spending Increases In 2010
U.S. online advertising spending will reach $25.1 billion in 2010, a year-over-year increase of 10.8%, according to digital researcher eMarketer. Research shows the increase will largely be the result of an improving economy coupled with a shift in marketing strategies, as companies forgo traditional marketing venues. “Spending growth online is partially attributable to economic instability,” said David Hallerman, eMarketer senior analyst. “The anxiety attached to the still-healing economy encourages marketers to bet more on sure things, and the ability to measure Internet ads, especially search, makes them more sure than most traditional ad spending.”

According to Hallerman, Internet advertising will steadily increase over the next five years. His research estimates the Internet’s share of total media ad spending will jump from 15% this year to over 20% by 2014. If the estimates are proven correct, online ad spending will soon surpass print-based ad spending. “As marketers look to engage their audience with relevant, trustworthy messages, that means smaller shares of marketing budgets going to traditional forms of advertising,” said Hallerman.

While online ad spending increases, its forums still remain fairly few. According to eMarketer, Google, Yahoo, Microsoft and AOL will garner 59% of U.S. online ad spending in 2010. Among these outlets, Google is the most dominant, as 49% of all online dollars are allocated to search advertising.

In a separate report, released last week by PricewaterhouseCoopers, researchers predict global ad revenue will climb to $498 billion in 2014, a five-year increase of nearly $100 billion. By 2014, the report predicts, only television will draw more ad dollars than the Internet.

Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30 a.m. eastern time to 11:00 a.m., a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we broadcast live from the ASI Virtual Trade Show, where we talked to attendees and exhibitors, and shared ideas on hot products for this summer. 

If you missed the show, a recording is now available at www.asicentral.com/radio. And, don't forget to join us for our next broadcast on Tuesday, June 29. Log on to www.asicentral.com/radio at 10:30 a.m. ET to listen to the radio show, and give us a call at 215-953-4979 to hear your voice on the air.

ASICentral: Top 100 Markets For Ad Specialty Sales
A recent exclusive Counselor study unveiled the best cities for ad specialty distributors to do business in right now. For the interactive online version, we decided to extend the list to the largest 100 markets and give them not only a rank, but a grade too.

Want to know where the best – and worst – cities are for ad specialty sales? Click here.

Got questions, comments or any type of feedback regarding anything ASICentral, don't hesitate to contact us at feedback@asicentral.com. Also, follow ASICentral at: .

ASI Online Learning Center
Did you know you can take self-paced, on-demand courses at ASI Education's Online Learning Center? This is the newest and most convenient way for distributors, decorators and suppliers to get educated. In our newest course for distributors, "Cold-Calling Clinic: Get More Appointments Now," we'll teach you how to use cold calling as an important tool that can take your selling skills to the next level, including five ways to reduce rejection and key tips for connecting with your prospect. Click here to take the course.

Click here to get a sneak peek of just one sales strategy you'll learn in this course.

Coming next month: Break Into Five Hot Apparel Markets

In the News
American Ad Bag (asi/35290) has lost phone and power due to heavy storms that hit its offices over the weekend. The company expects services back on Wednesday June 23. In the meantime, American Ad Bag asks distributors to contact the company at its Glendale, AZ, customer service line (800-249-5105).

HandStands (asi/59525) has introduced nine new "No-Phone Zone" brand-ready reminders for businesses including non-slip dash pads and car air fresheners.

Hub Pen (asi/61966) congratulated Connor Stearns, son of production manager Bob Stearn, on his first place finish at the 5K Promotions East Fun Run in Atlantic City, with a time of 19:27.

Progressive Promotions (asi/300237) announced that the Women Presidents' Educational Organization (WPEO) honored its president, Julie Levi, as a 2010 WBENC Women's Business Enterprise Star at the WBENC Annual Salute to Women's Business Enterprises (WBEs).

Sweda (asi/90305) has begun the search for the most innovative distributor project story for this year's Case Study Challenge. The grand prize is up to $5,000 cash plus an added bonus of a $2,500 credit memo for applicable distributor employers.

People on the Move
HotLine Products (asi/61960) has hired Melinda Marr as its new vice president of sales, effective July 12.