Invitations to Robert Mugabe's hasty inauguration as Zimbabwe's president were circulating even before the results were announced of an election in which he was the only candidate Source: FT.com - US homepage | 29 Jun 2008 | 1:29 pm
Stocks next week are expected to enter the third quarter on uncertain footing after the Dow Jones Industrial Average briefly fell into bear-market territory, battered by record oil prices and a slumping financial sector.
MADRID (Reuters) - Oil markets are oversupplied but it
would not be wise for any OPEC exporter to tighten the taps
given the risk of exacerbating prices, Qatari Oil Minister
Abdullah al-Attiyah said on Sunday.
In the past year, Americans have been increasingly battered by gloomy economic news. They are feeling the pain when they shop for groceries, pore over real estate classified ads, and most certainly, when they pull up to the gas pump.
For the first time, Condé Nast Portfolio has joined CNBC as a partner in its quarterly Wealth in America report. The survey reaches out to people across the U.S. to see how they feel about their financial prospects and the nation's. This year, the survey interviewed 801 adults between June 19 and June 21.
Participants’ feelings reflected the harsh reality of the nation’s economy. Last week, oil rocketed to $140.61 a barrel and the Dow Jones industrial average fell to 11,346, its lowest level since September 2006.
Roughly 73 percent of those surveyed said they drove less to do routine errands, and 43 percent, pinched by high food prices, said they were spending less on groceries. It's important to note, as well, that 15 percent of the people who responded live in households where annual earnings top $100,000.
Whom do they blame for their pain at the pump? The oil companies and President Bush.
Twenty-eight percent said oil giants were most responsible for high gas prices, while 26 percent pointed the finger at Bush. Not far behind him, though, were speculators and investors—vilified for the trading frenzy that seems to push oil prices higher on a daily basis.
Portfolio.com writer Liz Gunnison examines why, though, more Americans don't see their own use of gas as a reason for higher prices.
When it comes to salaries, the surveyed don't look any more cheery. More than half—56 percent—said they didn't think they'd be getting a raise during the next year. Eleven percent said they thought their salaries would rise no more than 3 percent, and 6 percent thought they'd be making less. The CNBC/Portfolio survey shows 11 percent of those making $100,000 thought their salaries would fall.
Ordinary Americans and Wall Street professionals are at odds on issues like these and others at the center of the current economic malaise, according to the CNBC/Portfolio Wealth in America survey. And these differences have implications for both the Federal Reserve and this year's congressional and presidential candidates.
For example, while Wall Street forecasters predict inflation will be fairly tame in the next year, at about 2.5 percent, 71 percent of the report’s respondents think prices will rise by at least 4 percent, and 50 percent expect inflation to run at or above 6 percent.
In the past month, the Federal Reserve has been trying to put a lid on inflation expectations, culminating last week with what was seen as a benign outlook for price pressures in the statement following its monetary policy meeting.
Still, Americans don't seem to be hearing that message.
On energy prices, many economists on both sides of the ideological divide believe higher demand has been the primary driver of the recent run-up in prices. But Americans think otherwise. Twenty-eight percent blame oil companies, 26 percent point the finger at President Bush, and 23 percent believe speculators are at fault.
Sentiments like this will surely bode well for Democrats come November, as party members in the Senate have tried to increase taxes on oil-company profits and House Democrats last week pushed forward legislation which would have the Commodity Futures Trading Commission using its emergency powers to curb speculation in energy markets.
As for home prices, futures traders see nationwide values falling into 2010, but only 23 percent of Americans share that view. That's not to say homeowners haven't turned pessimistic during the current housing-market collapse--in February, 20 percent of respondents thought housing prices would go down--but the results stand in stark contrast to recent data showing home prices in April fell by the largest amount on record.
But Americans’ seemingly optimistic view on the prices their own homes will fetch doesn’t reflect market realities, says Lehman Brothers economist Michael Hanson.
"The vast majority of Americans aren't actually in the market,” Hanson says, and that likely leads them to be "more backward-looking and more hopeful rather than facing the reality that demand is soft."
And on tax rebates, recent consumer-spending data suggests that a sizable chunk of the $107 billion stimulus package is being spent, but only 9 percent of respondents said they had used their rebates to make purchases.
The surprisingly strong spending numbers led Richard Berner, the chief U.S. economist at Morgan Stanley, to admit that the results "suggest that tax rebates are probably lifting consumer spending sooner and by more than I’ve expected."
And this appears to be a repeat of the last round of tax rebates in 2001. Back then, many Americans also said they would save or pay down debt with their stimulus checks. However, recent research has shown that consumers actually wound up spending up to two-thirds of those rebates.
This might be the one piece of good news in the survey for Republicans: If the rebates help the economy avoid a deep recession, Republican candidates can use their early support for the stimulus to highlight their economic know-how.
So which side is the correct one on these issues: the average American or the number-crunching pro? Even though it’s too early to tell, in the end it probably won’t even matter. As the Fed’s anti-inflation campaign illustrates, it’s often perception that can lead to reality.
As American consumers begin to face the prospect of $4-a-gallon gasoline, one thing's for sure: They want a head, and Big Oil, President Bush, or Wall Street will suffice.
This month, the CNBC/Portfolio Wealth in America survey asked 801 Americans to name one or two things they felt were "most to blame for the current high price of gasoline;" topping the list of replies were oil companies (28 percent), President Bush (26 percent), and speculators (23 percent).
Democrats in Washington would be inclined to agree.
Ebben Burnham-Snyder, a spokesman for the House Select Committee on Energy Independence and Global Warming, believes consumers are expressing righteous disapproval of how oil companies choose to use those record profits that we hear so much about.
"Oil companies could be making better decisions in terms of what they're investing in," said Burnham-Snyder. "Exxon invested $32 billion in stock buybacks last year. They're investing somewhat in exploration and production, but not enough. The best fuel engineers are working for oil companies, and they're not looking for ways to invest in biofuels."
Yadda, yadda, yadda.
Big Oil, the president, institutional investors, the Masons, whomever…the truth is, when it comes to playing the blame game for energy prices, there are lots of eloquent arguments and few agreed-upon facts. The specter of $140 (and counting) oil has left blood on many different hands—so what about our own?
When asked about the cause of gas prices, demand from India and China (17 percent) and U.S. consumer demand (13 percent) didn't make it onto the top half of the list of responses.
That fact is shocking to economists, many of whom believe that politically motivated finger-pointing and sensationalist media coverage have misled consumers' understanding of the situation.
"The problem is too much demand and not a lot of supply," says Henry Lee, a lecturer on energy issues and public policy at Harvard's Kennedy School of Government. "We keep seeing people on TV raging against speculators, and it's very hard because every day all you get is people telling you it's evil people behind the prices. No one wants to say, ‘Maybe it's all of us that caused this problem.’"
In Washington, that’s a very pedestrian idea.
Dan Weiss, director of climate strategy at the Center for American Progress, a Washington-based think tank, places the oil blame on President Bush for issues ranging from his weak dollar policy to his failure to develop a credible energy policy.
"It is the policies of Bush that have gotten us into this," says Weiss. "We've had no energy policy since 2001, and the weak dollar, for which he's responsible, has started a run on oil from institutional investors."
And don’t forget the speculators. "There was a report by a Senate committee that found it's responsible for up to $30 a barrel," Weiss says.
Kenneth Deffeyes, oil expert and Princeton geology professor emeritus, agrees with Lee that market speculation is only a minor reason for today's oil prices. He also discounts the conspiracy-theory approach—that oil companies are sluggish in production and new exploration in order to prop up prices.
"Geologists are not finding any oil. We're dealing with the leftovers now," says Deffeyes.
Production reached a plateau in 2005 at around 85 million barrels a day, and many (including Deffeyes) believe that represents a production peak from which we will eventually decline.
Meanwhile, as India and China continue to grow an oil-guzzling middle class, demand in those countries is forecast to grow almost 5 percent this year alone.
"The standard economists' view revolves around increasing demand from emerging markets, which has not been an important factor until the last several years," says Craig Burnside, a professor of economics at Duke University. "We are on the part of the supply curve that is inelastic."
Which, in plain English, means economists believe we've hit a wall and are producing as much as we possibly can.
While Lee, Deffeyes, and Burnside discount the idea that cracking down on oil companies and market speculators will solve the oil-price problem, they do see a prominent role for everyday consumers.
Deffeyes says while we wait for longer-term solutions like efficient cars and alternative fuels, immediate conservation steps like reducing driving speed and carpooling will be the most effective in making a dent in demand.
Lee says that even a 5 percent reduction in oil demand from the United States alone would have an effect on price.
"The problem in America is that we've had this Faustian bargain where between 1980 and 2003 we had low oil prices, so we benefited from this and built our lives around cheap oil,” he says. "We had 23 years of low energy prices, and now we're paying for it." Related Links The Coming Oil Crash The New Oil Shock Peter Peterson
Sirius (SIRI) staged an odd rally late Friday, moving up 15%. the rise began after 2 PM. The sharp increase in the shares was may on tremendous volume, nearly 47 million shares.That is nearly twice what the company trades in a normal day. There may be more rumors that the FCC is going to give the Sirius merger with XM Satellite (XMSR) more generous terms than Wall St. thinks. So far it has been assumed that pricing to the consumer will be capped to prevent monopoly pricing. But, both companies are in such bad financial shape that regulators may fell...
Retail gas and diesel prices pushed higher overnight, a daily survey by motorist group AAA showed Sunday. Continued near-record prices are expected to curtail Americans' travel plans during the July 4 holiday weekend.
According to Reuters, Steve Ballmer has become the lone voice at the head of Microsoft (MSFT). Reuters writes that fund managers hope that clients from sovereign funds will fill the gap left in money management income. Reuters writes that the head of BNP Paribas says the worst of the credit crisis is over. The Telegraph writest that the CEO of Barclays (BCS) say the 4.5 billion pound the company raised will get it through the current crisis. The FT writes that global markets are going to have their worst first half in 26 years. Bloomberg writes that the president of...
Reuters - Bank Santander has over 2
percent of Banca Monte dei Paschi di Siena , the
Italian mid-sized lender which bought Antonveneta bank from the
Spanish giant, Il Messaggero newspaper reported on Sunday. Source: Yahoo! News: Business | 29 Jun 2008 | 10:22 am
MILAN (Reuters) - Bank Santander has over 2 percent of Banca Monte dei Paschi di Siena , the Italian mid-sized lender which bought Antonveneta bank from the Spanish giant, Il Messaggero... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 10:22 am
MILAN (Reuters) - Bank Santander has over 2 percent of Banca Monte dei Paschi di Siena , the Italian mid-sized lender which bought Antonveneta bank from the Spanish giant, Il Messaggero newspaper reported on Sunday.
Reuters - The worst of the financial crisis is over
and markets should start settling from the second half of this
year, the head of France's biggest listed bank, BNP Paribas,
told Italy's La Repubblica newspaper.
MILAN (Reuters) - The worst of the financial crisis is over and markets should start settling from the second half of this year, the head of France's biggest listed bank, BNP Paribas, told... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 9:01 am
MILAN (Reuters) - The worst of the financial crisis is over and markets should start settling from the second half of this year, the head of France's biggest listed bank, BNP Paribas, told Italy's La Repubblica newspaper.
Reuters - Business sentiment at big South Korean
companies has hit its lowest in more than three years due to
worries about soaring oil and raw material prices and sluggish
domestic consumption, a private survey showed on Sunday. Source: Yahoo! News: Business | 29 Jun 2008 | 8:39 am
SEOUL (Reuters) - Business sentiment at big South Korean companies has hit its lowest in more than three years due to worries about soaring oil and raw material prices and sluggish ... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 8:39 am
SEOUL (Reuters) - Business sentiment at big South Korean
companies has hit its lowest in more than three years due to
worries about soaring oil and raw material prices and sluggish
domestic consumption, a private survey showed on Sunday.
Reuters - Delek US Holdings Inc has begun
negotiations to purchase a U.S. refinery in a possible $1
billion deal, parent company Delek Group Ltd said on
Sunday. Source: Yahoo! News: Business | 29 Jun 2008 | 8:30 am
TEL AVIV (Reuters) - Delek US Holdings Inc has begun negotiations to purchase a U.S. refinery in a possible $1 billion deal, parent company Delek Group Ltd said on Sunday. Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 8:30 am
TEL AVIV (Reuters) - Delek US Holdings Inc has begun negotiations to purchase a U.S. refinery in a possible $1 billion deal, parent company Delek Group Ltd said on Sunday.
Feeling the chill from the US subprime crisis, Chinese exporters such as Zhejiang New Oriental Fastener Company no longer take it for granted that their customers will pay them. Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 7:46 am
Reuters - Steve Ballmer has been CEO at Microsoft
Corp for eight years, but he will finally get to move into the
corner office vacated by Bill Gates, the college friend who
brought him to the company nearly three decades ago.
SEATTLE (Reuters) - Steve Ballmer has been CEO at Microsoft Corp for eight years, but he will finally get to move into the corner office vacated by Bill Gates, the college friend who... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 7:36 am
SEATTLE (Reuters) - Steve Ballmer has been CEO at Microsoft Corp for eight years, but he will finally get to move into the corner office vacated by Bill Gates, the college friend who brought him to the company nearly three decades ago.
LONDON (Reuters) - Top fund executives meeting in Barcelona this week will debate how to attract assets from sovereign wealth investors and the merits of absolute return funds as they face... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 7:33 am
LONDON (Reuters) - Top fund executives meeting in Barcelona this week will debate how to attract assets from sovereign wealth investors and the merits of absolute return funds as they face up to a tough environment of lower inflows.
DUBAI (Reuters) - Rampant consumerism in the United Arab Emirates -- home to Dubai, the self-styled capital of conspicuous consumption -- could damage the economy and hinder the Gulf oil producer's efforts to become self-reliant, a government report said.
Reuters - Rampant consumerism in the United Arab
Emirates -- home to Dubai, the self-styled capital of
conspicuous consumption -- could damage the economy and hinder
the Gulf oil producer's efforts to become self-reliant, a
government report said.
DUBAI (Reuters) - Rampant consumerism in the United Arab Emirates -- home to Dubai, the self-styled capital of conspicuous consumption -- could damage the economy and hinder the Gulf oil... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 6:57 am
Singapore Airlines has taken delivery of its fifth Airbus A380 superjumbo which will be used for its Singapore-London service starting on July 16, the carrier said. The A380... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 5:22 am
A week after failing to deflate record oil prices at a summit in Saudi Arabia, the world's biggest crude producers and consumers will get another chance to tackle the problem at a meeting... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Jun 2008 | 4:15 am
Maybe it's the Fed, or the stimulus checks, or the dollar, or the strange nature of this cycle, but the U.S. economy hasn't yet tipped into a deep recession, despite persistent weakness in jobs, incomes, sales and factory activity.
Would you pay over $5 for all-natural cleaner made with eucalyptus essence? How about a 20% premium for paper towels made from 100% unbleached recycled paper? Shoppers are often asked to pay more for environmentally friendly goods, but they might want to think twice before shelling out.
The Government recently started charging business rates on empty buildings - just as the property market collapsed. Jonathan Russell looks at the extreme solution adopted by some cash-strapped owners. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
Oasis Healthcare and Integrated Dental Holdings are among five suitors considering a bid for James Hull Associates, the upmarket cosmetic dentistry chain. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
Barclays chief executive John Varley has shot down speculation that the £4.5bn the bank is raising may not be enough for it to ride out the credit crunch. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
Ferrari's chairman has overseen a resurgence in the famous marque, and he is far from finished, reports Russell Hotten. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
Provident Financial, the lender that specialises in loans to low income households, has begun early stage plans to launch a deposit-taking business. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
The rampant growth of the UK wine market has ground to a sharp halt with sales falling at their steepest rate in living memory as consumers suffer the effects of rising taxes and the economic downturn. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
Markets around the world are on the verge of entering a global bear market with London and Wall Street leading the way. Source: Telegraph Business | 29 Jun 2008 | 12:01 am
A UK tobacco firm is breaking its own marketing code covering cigarette sales to young Africans, a BBC investigation finds. Source: BBC News | Business | World Edition | 28 Jun 2008 | 11:09 pm
FOR a few hopeful months this spring, the stock market looked as if it was
shaking off the cold grip of the credit crunch. Then last week the market
sunk to its lowest level in years as oil prices soared, more cracks appeared
in the credit markets and the analysts predicted the worst for corporate
titans Citigroup and General Motors. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
THE supermarket giant Tesco will tomorrow lodge an appeal against the findings of the Competition Commission after the latter’s two-year probe into the grocery sector. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
ALL 16 nonexecutive directors of the Court of the Bank of England are to
resign in an unprecedented shake-up of the institution. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
CABLE & WIRELESS is sweetening its offer for Thus by up to £27m as the two companies work on an agreed takeover that could be recommended to shareholders tomorrow morning. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
THE STEELMAKER Corus has stepped up its campaign against BHP Billiton’s attempt to take over mining rival Rio Tinto by complaining to the European Union about the deal. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
SOMETHING extraordinary is happening in the housing market. We are seeing an
unprecedented collapse in mortgage lending and no sign of an official or
private-sector response. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
THE housebuilder Taylor Wimpey is in the advanced stages of an emergency £400m
fund-raising to save it from collapse. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
THE activist investor Laxey Partners is calling for the removal of Ian
Livingstone from the board of quoted property company NR Nordic & Russia
Properties, and would like to add veteran property investor Robert Ware to
the lineup of directors. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
When Wall Street slumped on Thursday, in response to the oil price surging
above $140 a barrel and renewed fears about the banking system, the alarm
bells rang more loudly than usual.$ Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
BAE SYSTEMS and VT Group will this week formally seal a joint venture to build two Royal Navy aircraft carriers that has been nearly two years in the making. Source: Latest Business News from Times Online | 28 Jun 2008 | 11:00 pm
Stocks next week are expected to enter the third quarter on uncertain footing after the Dow Jones Industrial Average briefly fell into bear-market territory, battered by record oil prices and a slumping financial sector.
Oil prices will climb to $170 a barrel this year because of increased demand, political tension and decisions made by monetary policymakers in the U.S. and Europe that have devalued the U.S. dollar, OPEC President Chakib Khelil said in a news report.
Canny, cashed-up property investors are already scooping the bargain buying while prospective homebuyers procrastinate, hoping for further price falls.
"The seasoned, cashed-up property investors are ready to re-enter the market... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
The appointment of former National Prime Minister Jim Bolger to chair the new state-owned enterprise (SOE) - speculated to be named Railcorp - is a typically adroit political manoeuvre by Finance Minister Michael Cullen.
Not only... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
The stock market may be sliding and business confidence hitting an all-time low, but financial advisers are excited by new opportunities the shrinking economy presents.
They say while private-equity deals and large-scale takeovers... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
The present uncertain economy is triggering anxiety about job security throughout the workforce. As the Herald on Sunday was going to print, almost half (48 per cent) of respondents to a continuing online survey on Hays Recruitment's... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
The successful prosecution of two accountants for inadequate audit work on the books of a finance company that later failed will come as very cold comfort to those who lost money when the company went belly-up.
The collapse of... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
Nick Wells, a partner at Chapman Tripp barristers and solicitors, on whether to swap your company structure for a limited partnership
What is a limited partnership? Why use one?
This is hybrid structure which draws from company... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
I have joined KiwiSaver. I have encouraged my clients and family to join and have signed up my 1-year old grandson as well.
In recent months, I have heard many reasons from people who are refusing to join KiwiSaver. Almost all... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
What is it called and what sort of savings product is it?
World Bank Global Bonds.
What is the company behind it?
The offer is being made by the International Bank of Reconstruction and Development (IBRD) and the lead manager... Source: New Zealand Herald - Business | 28 Jun 2008 | 5:00 pm
Siemens AG plans to cut 17,200 jobs as the German engineering conglomerate tries to lower expenses in the face of an economic slowdown, according to a published report.
Stocks next week are expected to enter the third quarter on uncertain footing after the Dow Jones Industrial Average briefly fell into bear-market territory, battered by record oil prices and a slumping financial sector.
Glenda Keegan was one step ahead of the trends when she decided to turn turfed-out roadside billboards into top-of-the-range accessories.
Four years ago, she got the idea of resurrecting the discarded advertising material as stylish... Source: New Zealand Herald - Business | 28 Jun 2008 | 4:00 pm
Wall St. was disappointed by RIM's (RIMM) forecast for the upcoming few quarters? Could the same thing happen to Apple (AAPL)? Several companies in the cell phone business have made comment that the second half of the year will be rough. The latest was Sony-Ericsson, which relies on high-end handsets for most of its sales. Shares in Nokia (NOK) have dropped sharply on similar concerns. The launch of the new 3G iPhone is almost certain to be a success which will be the envy of every other handset company in the world. But, if the recession continues to deepen, what...
Stocks finish the session and the week sharply lower, with surging oil prices, ailing financials and broad concerns about the economy catching up to a market that has now fallen nearly 20% from its 2007 high, marking an official entry into bear-market territory.
The GS gets a new 4.6-liter V8 in 2008 and while some may debate if that’s the way to go in this day and age, few will argue that it is one of the most refined engines on the market today.
Reuters - The worst of the financial crisis is over
and markets should start settling from the second half of this
year, the head of France's biggest listed bank, BNP Paribas,
told Italy's La Repubblica newspaper.
Reuters - Steve Ballmer has been CEO at Microsoft
Corp for eight years, but he will finally get to move into the
corner office vacated by Bill Gates, the college friend who
brought him to the company nearly three decades ago.
Reuters - Rampant consumerism in the United Arab
Emirates -- home to Dubai, the self-styled capital of
conspicuous consumption -- could damage the economy and hinder
the Gulf oil producer's efforts to become self-reliant, a
government report said.