If you throw all the products we buy and the services we use in one basket, then add up the price tag, that's the Gross Domestic Product, which is the primary metric economists use to assess the economic health of a country or region.

The easy part of calculating GDP is the calculation itself: C+I+G+(X-M)=GDP. Got it? No? Well, add Consumption, Investment by companies, Government purchases, and then take the product of eXports (calling it 'E' would lack sexiness) minus iMports ('I' was taken). Viola! GDP.

Still don't get it? Well, knowing the components helps. Consumption is the biggest component, and it's a tally of the cost of all the goods and services we buy. Investment is what companies spend on the real assets they own, plus the value of the inventory that we haven't gobbled up through consumption. Government purchases are what the Feds pay money for (whether it be highways or fighter jets, though big social programs, like welfare, aren't counted). And then we calculate the difference between the goods and services we¿re sending to other countries and the stuff we're bringing in.

Good. That explains it, except there's a catch. Inflation has a habit of distorting the numbers, so economists talk about either Nominal GDP or Real GDP. In fact, Real GDP isn't necessarily "real" for most folks, since it takes any inflation out. Nominal GDP includes the effects of inflation. (There's something called the implicit price deflator which is a calculation using the two, but we'll spare you the details.)

So, now that we know GDP, why do we want to? Well, it's good to compare different markets. And watching the trend shows whether a given economy is growing (good), stagnating (not so good), or shrinking (very not so good). When GDP goes down two quarters in a row, we're officially in a recession.

For the record, GDP is released at the end of each month, with most reporting ¿preliminary¿ data for the previous month. But you won't get final GDP numbers for the fourth quarter of a year until the very end of the first quarter of the next year. After all, it's not an easy number to calculate.

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Monday, July 14, 2008

Omnicom Amends Redemption Provisions for Liquid Yield Option(TM) Notes Due 2031 and Zero Coupon Zero Yield Convertible Notes Due 2032

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NEW YORK, July 14, 2008 /PRNewswire-FirstCall via COMTEX/ ----Omnicom Group Inc. (NYSE: OMC) announced today that it has amended the provisions of its Liquid Yield Option(TM) Notes due 2031 (the "2031 Notes") and its Zero Coupon Zero Yield Convertible Notes due 2032 (the "2032 Notes") to limit when Omnicom can exercise its redemption option.

Omnicom had the right to redeem the 2031 Notes beginning on February 7, 2009 and any time thereafter. The amendment permits Omnicom to redeem the 2031 Notes only on the following dates between 2009 and 2014: February 9, 2009, February 1, 2010, February 1, 2011, February 1, 2012 and February 1, 2013. On or after February 7, 2014, Omnicom will revert back to its right to redeem the 2031 Notes at any time.

Omnicom had the right to redeem the 2032 Notes beginning on July 31, 2009 and any time thereafter. The amendment permits Omnicom to redeem the 2032 Notes only on the following dates between 2009 and 2014: July 31, 2009, August 2, 2010, August 1, 2011, July 31, 2012 and July 31, 2013. On or after July 31, 2014, Omnicom will revert back to its right to redeem the 2032 Notes at any time.

Under the terms of the indentures governing the 2031 Notes and the 2032 Notes, Omnicom will notify holders at least 30 days prior to any redemption. The effect of the amendments during the five-year period from 2009 to 2014 will be to permit Noteholders to know with certainty whether Omnicom intends to redeem the 2031 Notes or 2032 Notes before deciding whether to exercise their right to require Omnicom to repurchase their notes.

Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com). Omnicom is a leading global advertising, marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

SOURCE Omnicom Group Inc.

http://www.omnicomgroup.com

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