Dollar rises vs euro

* Dollar rises vs euro, basket of currencies, near 2-yr highs

* Emerging markets, economy worries underpin dollar demand

* Yen hits 6-year high vs euro on risk aversion, repatriation

* Nikkei down over 5 percent on earnings worry, yen cross hit

By Chikako Mogi

TOKYO, Oct 24 (Reuters) - The dollar rose against the euro and a basket of currencies on Friday, holding near two-year highs as worries about global economies and emerging markets prompted investors to keep reducing risk assets and repatriate funds.

Emerging market currencies have been hit hard by the global credit crisis in recent weeks, intensifying risk aversion and prompting investors to repatriate their overseas investments.

Deepening financial turmoil has boosted the allure of the dollar, the world's most liquid currency.

The dollar's broad strength has added fuel to sharp falls in other yen crosses as investors unwind high-yielding currencies favoured for carry trades, using the low-yielding yen to buy high-yielding currencies, traders said.

Bloomberg.com: India & Pakistan

Crude oil pared gains on concern a potential OPEC output cut is insufficient to stave off price declines as global economic growth slows and fuel demand falls.

OPEC is expected to slash at least 1 million barrels a day of production when it meets today in Vienna, according to a Bloomberg News survey. Iran's Oil Minister.

Gholamhossein Nozari said yesterday a 2 million barrel-a-day reduction was needed. U.S. fuel demand fell 8.5 percent from a year ago, the Energy Department said Oct. 22.

``Anything less than 2 million barrels and we're headed lower,'' said Mark Waggoner, president of Excel Futures Inc. in Irvine, California, in an interview with Bloomberg Television. ``The markets are going to go down from here to $58.''

Oil for December delivery was at $67.64 a barrel, down 20 cents, on the New York Mercantile Exchange at 12:38 p.m. Singapore time. It earlier rose as much as $1.66, or 2.5 percent, to 69.50 a barrel. Prices are down 22 percent from a year ago and 5.9 percent this week.

Brent crude oil for December settlement was at $65.66 a barrel, down 26 cents, on London's ICE Futures Europe exchange at 12:36 p.m. Singapore time. It earlier rose as much as $1.41, or 2.1 percent, to $67.33 a barrel.

Oil has dropped from the record $147.27 a barrel in New York on July 11 as slowing economic growth curbs demand.

China, the world's fastest-growing energy consumer, said Oct. 20 its economy expanded at 9 percent in the third quarter, the slowest pace in five years. Concern a deepening global slump will damp profits has pushed the MSCI World Index 4 percent lower this week.

OPEC Cuts

Prices dipped during trading yesterday after Saudi Arabian Oil Minister Ali al-Naimi declined to express his support for a possible cut, on his arrival in Vienna. Saudi Arabia and Iran are the Organization of Petroleum Exporting Countries' two biggest producers.

``Who said anything about a cut?'' al-Naimi said. ``Prices will be determined by the market.''

OPEC should cut production by 2 million barrels a day to stem the slump in prices and ``balance'' the market, Iranian Oil Minister Gholamhossein Nozari said earlier.

OPEC leaders are scheduled to meet in Vienna today at 9 a.m. local time.

The last time OPEC lowered quotas was at a December 2006 meeting in Abuja, Nigeria. The 500,000 barrel-a-day cut took effect in February 2007, expanding an earlier reduction agreed to in October. The cuts were reversed later in 2007 as prices rose.

Barack Obama, John McCain spar over tax policy, economy | News for Dallas, Texas | Dallas Morning News | National Politics

As John McCain warned that Barack Obama's tax plans would make a bad economic situation worse, Mr. Obama said that Mr. McCain supported a 'Wall Street first, Main Street last' economic philosophy.

The economy continued to dominate the presidential rivals' stump speeches as they sought to shore up support in battleground states. Mr. McCain campaigned in Florida on Thursday, while Mr. Obama attended a rally in Indianapolis.

Mr. McCain promoted his proposals to cut taxes for individuals and businesses as crucial to rebuilding the economy.

"We shouldn't be taxing our small businesses more, as Senator Obama wants to do. We need to be helping them expand their businesses and create jobs," he told a rally at a lumber yard in Ormond Beach.

Mr. Obama accused his opponent of not making workers his top priority.

Mr. McCain "wants to keep putting corporations ahead of workers," Mr. Obama said. "Who's looking out for steelworkers? Who's fighting for carpenters? Who's fighting for teachers? Who's fighting for Teamsters? That's the president I want to be."

As a counterpoint to Mr. Obama's appeal to working-class voters, Mr. McCain crossed central Florida on Thursday in a "Joe the Plumber" bus tour with stops at a lumber yard, a dentist office, a restaurant and a produce market.

Mr. McCain reminded audiences of Mr. Obama's "spread the wealth" line, saying Mr. Obama's commitment to raising taxes on those making more than $250,000 a year would kill jobs.

"My commitment to small-business owners here is that I will not spread their wealth around," said Mr. McCain following a meeting with local residents at a restaurant in Orlando. "I want them to keep their wealth and create jobs."

Mr. Obama, playing off a comment Mr. McCain made to CNN that he would cut taxes "for every business in America," said his rival "made the peculiar argument that the best way to stop companies from shipping jobs overseas is to give more tax cuts to companies that ship jobs overseas."

Mr. Obama added: "More tax cuts for job outsourcers? That's what Senator McCain proposed as his answer to outsourcing." The McCain campaign called the inference a distortion.

The Obama camp replied in kind, accusing Mr. McCain of twisting many elements of his tax plan, including a proposal regarding a tax credit on mortgage interest.

Mr. Obama also warned that homelessness could spike without quick action to stave off foreclosures – policies he suggested his opponent has resisted.

Mr. McCain on Thursday repeated his call for the Bush administration to purchase troubled mortgages so homeowners could renegotiate them at more favorable terms.

"I can't emphasize how important it is to keep people in their homes, to go out and buy up these bad mortgages and give people a mortgage they can afford," he said.

McCain: Economy faces 'tough sledding' - UPI.com

"WASHINGTON, Sept. 7 (UPI) -- The U.S. economy faces 'very tough sledding,' but the nation's 'best days are ahead of us,' Republican U.S. presidential nominee John McCain said Sunday.

'Americans are hurting in a way that they have not hurt for a long time,' McCain said on the CBS News program 'Face the Nation.'"

FACTBOX-How strike affects Boeing, suppliers, economy - Forbes.com

Sept 7 (Reuters) - Boeing Co's 27,000-strong machinists union is on strike, halting commercial airplane production, after last-ditch talks failed to agree to a new labor contract by a deadline of midnight Seattle time on Saturday.

Boeing (nyse: BA - news - people ) says plants will stay open, with workers in other unions and nonunion employees expected to report, but production lines at its massive facilities in Everett and Renton, Washington, will halt assembly.

If the fourth Boeing strike in 20 years is prolonged, here are some of the financial losses and problems predicted for the company and an increasingly worldwide supply chain. Economists also anticipate a drag on the Seattle-area and U.S. economies.

BOEING

-- Boeing could lose up to $3 billion in revenue per month, half the company's expected monthly total, if deliveries of its commercial planes are halted, based on figures from the first half of the year.

-- It could lose 30 cents to 40 cents from earnings per share for each month of a strike, according to Wall Street analysts. The company is expected to earn $5.85 per share for the year, on average.

AIRLINES

-- Delivery delays would inconvenience major airline customers such as AMR Corp (nyse: AMR - news - people )'s American Airlines, Continental Airlines (nyse: CAL - news - people ) and Southwest Airlines Co (nyse: LUV - news - people ) .

-- Buyers of the new 787 Dreamliner, already angered by production delays, would face an even longer wait. Big customers include Japan's All Nippon Airways, Australia's Qantas Airways, Britain's Virgin Atlantic and Singapore Airlines (other-otc: SGPJF.PK - news - people ).

-- U.S. plane leasing company, International Lease Finance Corp, a unit of insurer American International Group Inc (nyse: AIG - news - people ) , is the biggest 787 customer, with 74 on order.

-- A lengthy work stoppage could be an opportunity for rival Airbus, a unit of EADS, to pick up some plane orders from uncertain airlines.

SUPPLIERS

-- If Boeing's plane production lines stop, suppliers will stop or reschedule deliveries, causing inventory pile-ups and possible layoffs. Boeing's major suppliers include:

-- General Electric (nyse: GE - news - people ) (engines)

GE supplies its own engines for some wide-body models and its CFM International 50-50 joint-venture with France's Safran supplies all the engines on the 737 single-aisle series, Boeing's top-selling model of aircraft.

-- Pratt & Whitney, a unit of United Technologies Corp (nyse: UTX - news - people ) (engines)

-- Rolls-Royce (other-otc: RYCEY.PK - news - people ) (engines)

-- Spirit Aerosystems Holdings (fuselage, wings)

-- Honeywell International (nyse: HON - news - people ) (electronics)

-- Rockwell Collins (nyse: COL - news - people ) (avionics)

-- Goodrich (nyse: GR - news - people ) Corp (wheels, brakes)

-- Alenia Aeronautica, part of Finmeccanica (fuselage on 787)

-- Latecoere (787 passenger doors)

-- Japan's "heavies," which are working on 787 structures:

-- Mitsubishi Heavy Industries (other-otc: MHVYF.PK - news - people )

-- Kawasaki Heavy Industries

-- Fuji Heavy Industries

LOCAL ECONOMY

-- Boeing is the leading private employer in the Puget Sound area around Seattle. There are 13,000 IAM union members at its wide-body plant in Everett, Washington, 5,000 at nearby Renton and more scattered throughout the area.

-- A strike would mean no pay for workers, signaling cutbacks in home and leisure spending and a likely increase in defaults on home loans and credit-card debt.

-- The IAM offers to pay strikers only $150 per week from the third week of a strike. Normal health-care coverage ends after a month.

U.S. ECONOMY

-- Striking workers generally cannot claim unemployment benefits, but others whose jobs are affected because of a strike can, which could increase jobless claims nationwide.

-- Figures for U.S. companies' inventories would rise.

-- If airlines stop making new orders for Boeing's planes, it would drag down closely watched monthly durable goods orders figures.

-- If a strike leads to improved terms, other U.S. workers would be more tempted to take action in upcoming contract talks. (Reporting by Bill Rigby; Editing by Tim Hepher and Maureen Bavdek)

FACTBOX-How strike affects Boeing, suppliers, economy - Forbes.com

Sept 7 (Reuters) - Boeing Co's 27,000-strong machinists union is on strike, halting commercial airplane production, after last-ditch talks failed to agree to a new labor contract by a deadline of midnight Seattle time on Saturday.

Boeing (nyse: BA - news - people ) says plants will stay open, with workers in other unions and nonunion employees expected to report, but production lines at its massive facilities in Everett and Renton, Washington, will halt assembly.

If the fourth Boeing strike in 20 years is prolonged, here are some of the financial losses and problems predicted for the company and an increasingly worldwide supply chain. Economists also anticipate a drag on the Seattle-area and U.S. economies."

AFP: US takeover of Fannie, Freddie will strengthen economy: Bush

"WASHINGTON (AFP) — US President George W. Bush said Sunday that the US government takeover of ailing mortgage giants Fannie Mae and Freddie Mac would strengthen the US economy and help quiet roiling real estate and financial markets.

'Americans should be confident that the actions taken today will strengthen our ability to weather the housing correction, and are critical to returning the economy to stronger sustained growth in the future,' Bush said in a statement, after the US government placed the two financial institutions in a 'conservatorship.'

Bush said a financial system meltdown from the potential failure of Freddie Mac and Fannie Mae posed 'an unacceptable risk' to the US economy.

Treasury Secretary Henry Paulson on Sunday announced the takeover of the two government-chartered, shareholder-owned firms, which underpin trillions of dollars of home loans and a have an enormous global financial footprint."

Malaysian shares seen soft as politics weighs - Forbes.com

KUALA LUMPUR, Sept 8 (Reuters) - Malaysian stocks could remain on the back foot on Monday, weighed down by protracted political uncertainty, although a U.S. government rescue of troubled mortgage finance companies Fannie Mae and Freddie Mac may ward off more global market turbulence.

'The market is still weighed down a lot because of the political concerns, and for the time being, we would be driven by what what happens on the political front over the next two weeks,' said a dealer at a local brokerage house.

Malaysia's key Composite Index has lost about 26 percent so far this year as foreign investors shunned Malaysian assets after a March 8 general election significantly changed the country's political landscape.

Anwar Ibrahim, a former deputy premier and now the opposition leader, has said he plans to force out the government of Prime Minister Abdullah Ahmad Badawi this month by winning over government defectors from the ruling coalition.

'The volumes have been very thin in recent weeks and the premium that our markets used to have due to political stability is no more there,' said another dealer.

Dealers said oil and gas, as well as gaming stocks were likely to be the main attraction.

Builder IJM Corp was also expected to gain after its offered to buy out other shareholders in subsidiary Industrial Concrete Products on Friday.

IJM is offering to acquire the 36.6 percent of ICP it does not already own by paying 0.26 ringgit in cash and issuing 0.60 new ordinary shares in IJM shares for every ICP share.

U.S. stock indexes soared after the U.S. government takeover of Fannie and Freddie, the latest move to shore up the slumping housing market, was taken to ward off more global financial market turbulence.

Here are news stories and factors that may affect the Malaysian stock market on Monday.

Dollar Valuations Still Hinge On Other Regions Being Worse

Read More Here: "Dollar Index: From Chairman Bernanke’s speech at Jackson Hole, it is apparent the Fed is making a simple bet; a slowing U.S. and global economy will crimp demand, and that will help moderate inflation. There is nothing radical at all in this assumption. In fact, the chairman is using the most basic of economic laws so shape policy. The trick here is to get things right, which in this case means making an accurate projection regarding the future path of economic growth. We would have to assume that Q3 GDP, and likely Q4 GDP as well, will be less than what was seen in the first two quarters although it is too early to say whether outright contraction will occur. We can also surmise from his speech that the job market will slow, as the Fed is partially dependent on a slackening in what it calls 'resource utilization' to help reduce inflation."

Got bills? Attack the stack

Read More Here:"With the economy on the fritz and consumer debt at record-high levels, does it surprise you that debt collection complaints are on the rise? The Better Business Bureau logged 18,000 complaints in 2007, up 26 percent compared with 2006; the Federal Trade Commission logged 70,951 in 2007, up 2.5 percent.

Given that there are millions of contacts made by collectors each year, those numbers don't sound terribly high. But what if you're the one being harassed? Being sworn at and called names? Humiliated at work by collectors looking for you?"

Corporate News

Read More Here: "ISLAMABAD: Pakistan Economy Watch has said that the financial markets have welcomed the resignation of Pervez Musharraf but the crises are not over yet; the real economic and political problems still need to be addressed to stabilize country.

The ruling coalition should dispel the impression that they cannot remain intact after departure of Pervez Musharraf, regarded as the common enemy. They should prove that it is not a shotgun marriage, said Pakistan Economy Watch President Dr Murtaza Mughal.

Government needs to tackle widening trade deficit, soaring inflation, food shortages and sliding forex reserves. Bad governance is a luxury poor countries cannot afford, he added."

Trade Deficit Continues to Show U.S. Competitiveness Problems

Read More Here: "U.S. TRADE DEFICIT SHRINKS IN JUNE LED BY DECLINE IN NON-OIL BALANCE YET MANUFACTURING AND HIGH TECH GAPS WIDEN;The U.S. goods and services trade deficit shrunk narrowed by 4.10 percent in June, from $59.20 billion to $56.77 billion, as a steep 15.17 percent drop in the nation’s non-oil trade gap more than offset a 14.65 percent jump in oil imports to record levels and a 10.69 percent increase in the U.S. oil deficit to another record.

Yet the parts of the economy that generate the best-paying jobs and the greatest productivity gains – the manufacturing and high tech goods sectors – both saw their deficits expand in May, indicating that the sectors most critical to U.S. competitiveness continue underperforming on the trade front.. In addition, the bloated and chronic U.S. goods trade deficit with manufacturing-heavy China continued to expand, from $21.05 billion to $21.43 billion, or 1.81 percent."

The euro dropped to a 5 1/2-month

Read More Here: "Aug. 14 (Bloomberg) -- The euro dropped to a 5 1/2-month low against the dollar after crude oil fell and a report showed Europe's economy contracted for the first time since the 15- nation currency was introduced almost a decade ago.

The dollar has ``bottomed'' against the euro, said Goldman Sachs Group Inc. in a revision of its forecast for the U.S. currency. The pound fell to the lowest in 22 months against the dollar on concern Britain's economy is falling into a recession.

``Not only is the European economy weakening, but the growth outlook is to remain weak,'' said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon, the world's largest custodial bank, with more than $23 trillion in assets. ``A further move down in crude oil will be a bullish sign for the dollar.''

The euro fell 0.7 percent to $1.4809 at 4:04 p.m. in New York, from $1.4919 yesterday. It touched $1.4778, the weakest since Feb. 21, compared with the all-time high of $1.6038 set July 15. The euro dropped 0.7 percent to 162.36 yen, from 163.43 yesterday, when it reached a three-month low of 161.40. The dollar increased 0.1 percent to 109.63 yen, from 109.53."

Bloomberg.com: Worldwide

Read More Here: "Aug. 15 (Bloomberg) -- The dollar may extend its gain versus the euro before a report forecast to show U.S. consumer confidence increased in August for a second month.

The euro dropped yesterday to a 5 1/2-month low against the dollar after crude oil fell and a report showed Europe's economy contracted for the first time since the 15-nation currency was introduced almost a decade ago. The pound declined to the lowest level against the dollar in 22 months on concern Britain's economy is falling into a recession.

``The tide has turned,'' said Matthew Strauss, a senior currency strategist in Toronto at RBC Capital Markets Inc., a unit of Canada's biggest bank by assets. ``The dollar's appreciation won't be as sharp going forward, but the trend will continue.''

Against the euro, the dollar traded at $1.4808 at 6:32 a.m. in Tokyo, after rising 0.6 percent yesterday and touching $1.4778, the strongest since Feb. 21. The U.S. currency was at 109.73 yen, following a 0.2 percent gain yesterday. The euro traded at 162.52 yen, after dropping 0.5 percent.

The European currency's decline accelerated yesterday after breaking $1.4840, a level at which traders had placed pre-set sell orders, according to Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey."

Big rise in hopes for economy | The Courier-Mail

Read More Here: "THE sharp drop in petrol prices and the looming prospect of mortgage interest rate cuts have given hard-pressed consumers a much-needed confidence boost.

Consumer sentiment has recovered from its lowest point since the immediate aftermath of the early 1990s recession, according to the latest Westpac-Melbourne Institute report.

The positive result follows Tuesday's release of the latest NAB business survey which found confidence in the corporate sector had plunged to a seven-year low in July."

The Sterling is Getting Pounded - Seeking Alpha

Read More Here: "My bullish call behind the dollar has been based on many factors. One factor, however, that I did not take into account is the action in the British Pound.

Sure, I track the overnight rates of the UK economy and where fair value of that target should reside but generally speaking, I have kept my comments to the Euro. But as I reviewed my notes yesterday and the charts of the currencies, I noticed something that was quite interesting. First, things technically are breaking down for the Pound. Second, the UK economy is suffering much more than the US economy at this juncture. In between, the Monetary Policy Committee [MPC] of the Bank of England is stuck as rising inflation and falling growth are accelerating from a spread perspective - the proverbial rock and a hard place.

Trading in the Pound has been mediocre, relative to the Euro, over the past year. The Sterling peaked in the fall of 2007 around 2.10 and has not looked back falling into the 1.90 range today, thanks in large part to a RPI rating that was much higher than most expected (more on that later)."

reportonbusiness.com: 12%: India's growing inflation problem

Read More Here: "PUNE, INDIA -- In her tiny, smoky kitchen, Surekha Kawade tosses a chappati, a flat, unleavened Indian bread, on a hot pan as she does every day with every meal.

But Ms. Kawade, 35, is anxious that this staple food item is inexorably slipping beyond her means. A widowed mother of two daughters, she earns 2,800 rupees ($70.36) a month as a house maid in this town on the edge of Mumbai in western India. Since last year, the price of wheat flour has shot up by 20 per cent, she said.

'It's not just wheat, but also rice, pulses, spices, eggs, meat, cooking gas ... everything costs so much more,' Ms. Kawade complained. 'A simple meal is becoming a luxury.'

Once infamous for its gruesome famines, India recently experienced a torrid economic boom that lifted millions out of poverty. But the boom has also stoked prices, with inflation breaking through the 12 per cent barrier last week, the highest it has been in nearly 14 years and up from under 5 per cent a year ago. Economists warn that it could peak at 14 per cent later this year."

MENAFN - Middle East North Africa . Financial Network News: The dollar slipped against the Euro breaking a five-session rally

Read More Here: "The dollar slipped against the Euro breaking a five-session rally"

Bank leaves door open for rate cut | Reuters

Read More Here: "LONDON (Reuters) - The Bank of England raised hopes of an interest rate cut before year-end on Wednesday as it forecast the current record-breaking spike in inflation would reverse sharply as the economy grinds to a halt.

The market reaction was swift. Interest rate futures jumped more than 20 ticks and the pound fell to near two-year lows against the dollar as investors priced in an 80 percent chance of a rate cut by December and further easing after that.

The central bank's new quarterly forecasts showed inflation -- already running at more than double the 2 percent target and the highest since the series began in 1997 -- would leap to around 5 percent this year.

But thereafter, it would fall dramatically as the effect of rising food and fuel prices wane and economic growth dried up."

New-age entrepreneurs breaking old trends- Corporate Trends-News By Company-News-The Economic Times

Read More Here: "NEW DELHI: The new-age entrepreneur is different in more ways than one. When it comes to business, they are primarily driven by the urge to gain socio-economic independence and implement their ideas compared to those from the pre-1990s, who were mainly driven by factors like family background and market opportunity.

According to a new study on entrepreneurship by the National Knowledge Commission (NKC), while 35% of entrepreneurs who started their business after 2000 were driven by the urge to gain independence, only 12% businessmen had this as a motivating factor in the pre-1990 s. It was family background which drove entrepreneurs before the economy opened up. But the influence of family history as a trigger for entrepreneurship has reduced significantly to only 12% of entrepreneurs post-2000 ."

MORE BREAKING NEWS: Knabe to change vote on sales tax | Bottleneck Blog | Los Angeles Times

MORE BREAKING NEWS: Knabe to change vote on sales tax | Bottleneck Blog | Los Angeles Times: "A press release from L.A. County Supervisor Don Knabe just popped up in my email basket. It's a keeper and it's below.

What this means is that if the sales tax increase goes to the ballot, it will be on the general ballot. But it's not sure thing it will be on the ballot because a state bill that is needed to authorize such an election is stuck in the State"

Working Poor Unready to Revolt: FireSociety.com -- America's Grassroots Community

Working Poor Unready to Revolt: FireSociety.com -- America's Grassroots Community: "Once upon a time when governments no longer served most of their citizens it was the most economically disadvantaged that could be counted on to rebel against tyranny and injustice. Times have changed, for the worse, despite the spread of democracy.


Here we are with a two-party plutocracy that preferentially serves corporate and wealthy interests and lets the middle class suffer and sink. Plausibly, the middle class is unready to revolt because it still maintains a relatively good standard of living despite rising economic insecurity. But what about the lowest 40 percent of Americans that are the working poor?


A recent survey of this group by the Washington Post, the Henry J. Kaiser Family Foundation and Harvard University conducted this past June looked at the beliefs of adults ages 18 to 64 working 30 or more hours a week, not self-employed and who earned no more than $27,000 in 2007. The results show a fascinating dichotomy. Though there is widespread pain and discontent there is also a stubborn faith in the American dream despite little help from government."

U.S. stocks jump on dollar and oil moves - International Herald Tribune

U.S. stocks jump on dollar and oil moves - International Herald Tribune: "NEW YORK: Oil prices resumed their descent Friday as a strengthening dollar and worries about economic growth offset supply concerns over a sabotaged pipeline in Turkey.

The sharp drop in oil prices helped to drive up the Dow Jones industrial average by almost 190 points. The oil price decline eased worries over a quarterly loss from the mortgage finance company, Fannie Mae, that was more than triple what Wall Street expected.

Light, sweet crude for September delivery slumped $2.11, to $117.91 a barrel in early trading on the New York Mercantile Exchange, after dipping as low as $117.05 in electronic trading.

Also pushing down the price of oil was the dollar increasing in value against the euro and yen after the European Central Bank and the Bank of England left their benchmark interest rates unchanged .

'The dollar is a factor, but the dominant factor is the perception that high oil prices coupled with slower economic growth in developed countries will curb oil demand,' said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. 'Oil prices are still at very high historical levels.'"

Tough times: How bad are they? - 8/7/2008 8:25:00 AM - Industrial Distribution

Tough times: How bad are they? - 8/7/2008 8:25:00 AM - Industrial Distribution: "It seems clear our economy is slowing down. Although first quarter GNP grew at a slow rate, our newspapers are filled with stories about a troubled economy.

The sub-prime loan “crisis” has shaken the stock market. Oil prices have increased well beyond previous record levels. Food prices, metals prices and other commodities have also seen dramatic rises. The Fed has acted aggressively to support our financial infrastructure and interest rates are very low indeed.

All signs point to a recession. We should also be very worried about inflation at the same time—what is known as “stagflation.”

And yet:
Nearly every prospect and every customer we talk to is enjoying a very successful year, on top of great results last year. INDUSTRIAL DISTRIBUTION magazine reports that many of the Big 50 distributors report record years in the making. The United States manufacturing sector is thriving."

War with Iran - On, Off or Undecided?

War with Iran - On, Off or Undecided?: "There’s good news and bad, mostly the latter but don’t
discount the good. On May 22, (non-binding) HR 362 was
introduced in the House - with charges and proposals
so outlandish that if passed and implemented will be a
blockade and act of war. It accused Iran of:

– pursuing “nuclear weapons and regional hegemony”
that threatens international peace and America’s
national security interests;

– overtly sponsoring “several terrorist groups,
including Hamas and Hezbollah;”

– having close ties to Syria;

– possibly sharing “its nuclear materials and
technology with others;”

– developing “ballistic technology” and ICBMs
exclusively to deliver nuclear weapons;

– calling for the “destruction of Israel;”

– refusing to suspend its uranium enrichment program
despite its legality;"

The Associated Press: More people sign up for jobless benefits

The Associated Press: More people sign up for jobless benefits: "WASHINGTON (AP) — The number of newly laid off people signing up for jobless benefits last week climbed to its highest point in more than six years as companies cut back given the faltering economy.

The Labor Department reported Thursday that new applications filed for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2. The increase left claims at their highest level since late March 2002.

A program to locate people eligible for jobless benefits played a role in the increase, a Labor Department analyst said. However, the analyst couldn't say how much of a role.

The latest snapshot of layoff filings was worse than analysts expected. They were forecasting new claims to drop to around 430,000.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) — The government says the number of people signing up for jobless benefits climbed to its highest point in more than six years as companies cut back given the faltering economy."

AFL-CIO NOW BLOG | Jobs Picture Worsens. We Can Do Something About It

AFL-CIO NOW BLOG | Jobs Picture Worsens. We Can Do Something About It: "Great economic news out this week—if you’re an excessively paid CEO. Seems some corporations are “quietly converting their pension plans into resources to finance their executives’ retirement benefits and pay.” This from The Wall Street Journal (subscription required):

In recent years, companies from Intel Corp. to CenturyTel Inc. collectively have moved hundreds of millions of dollars of obligations for executive benefits into rank-and-file pension plans. This lets companies capture tax breaks intended for pensions of regular workers and use them to pay for executives’ supplemental benefits and compensation."

FREE FUTURES TRADING RESULTS FOR 5TH AUGUST 2008

FREE FUTURES TRADING RESULTS FOR 5TH AUGUST 2008: "Date: 5th August 2008
Time in trade: 6 minutes
Total trading time: 17 minutes
Profit earned per $20 staked: $180

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Note (2): All figures quoted throughout the Trading Results pages are based on just the opening trade placed each day, you can of course place several futures trades through out the day and increase profits further. Follow the link given here to see how Chris places many Futures Trades each day."

Despite Bad Economy Botox Sales Are Booming - MarketWatch

Despite Bad Economy Botox Sales Are Booming - MarketWatch: "SAN ANTONIO, Aug 06, 2008 /PRNewswire via COMTEX/ -- While some say that paying $4 for a gallon of gas or $4 for a cup of Starbuck's coffee is expensive, there are many who are willing to spend more for another liquid. In the last quarter, Botox sales jumped 13% to $315.5 million. With Botox sales on the rise, one would wonder if we are really in an economic recession or has looking good become a necessity?
A survey conducted by the American Society for Dermatologic Surgery found that despite the economic concerns the use of fillers and Botox are on the rise. Twenty-eight percent of the survey physicians said that their current use of fillers increased up to 30 percent, compared to six months ago and more than 40 percent of survey respondents stated that the number of Botox procedures also increased compared to six months ago."

Daily Freeman - Donaldson freezes Ulster County hiring

Daily Freeman - Donaldson freezes Ulster County hiring: "A discretionary hiring freeze had been in effect prior to Thursday. Donaldson's action bans all hiring that is not essential to the public's health and safety, according to a prepared statement from the Legislature office.

The statement did not say how long the freeze would stay in effect.

Donaldson also barred attendance by county employees at non-mandatory training sessions and conferences and banned the purchase of non-mandated periodicals and other publications.

The prepared statement said Donaldson, D-Kingston, decided to implement the hiring freeze after consulting with Ulster County Administrator Michael Hein, who crafted the county's 2008 budget, and Alan Lomita, D-Rosendale, who chairs the Legislature's Ways and Means Committee, which deals with county finances."

Low Interest Rates May Be Helping the Economy Recover - Forex News | IBT FX Center

Low Interest Rates May Be Helping the Economy Recover - Forex News | IBT FX Center: "After further review it seems that not issuing a hawkish statement after Tuesday's FOMC meeting may actually help the U.S. economy recover faster. Leaving the market unsure about interest rates is likely to give the economy time to stabilize and help consumers once again gain confidence.

Inflation seems to be under control with the break in energy and food prices. Consumer confidence may begin to rise if consumers see prices dropping, especially at the pump. The financial crisis seems to have stabilized. The better this situation gets, the more likely credit will loosen up for economic expansion. High unemployment and a poor housing market will take time to improve, but there is hope the longer the Fed keeps rates at current levels."

India: Housing boom declines, hinting at slower economy | csmonitor.com

India: Housing boom declines, hinting at slower economy | csmonitor.com: "New Delhi - Glistening marble floors. Landscaped lawns. A golf course. This $1.5 million-a-pop housing development is one of the plushest yet in Gurgaon, a satellite city on New Delhi's edge that has become an icon of booming India.

But 18 months after they went on sale, half the houses in the first phase of construction stand empty and unsold, as India's once-booming housing market slows down.

A recent report by HSBC Bank predicted a 'sharp slowdown' in residential demand in most Indian cities and a fall in home prices of between 25 and 30 percent.

Many fear the housing sector's woes bode ill for India's slowing economy. Rising inflation and shrinking credit look poised to slow steady growth here, and several international banks have revised their 2008 growth forecasts down to around 7 or 8 percent."

In Slumping Economy, Colleges Forced to Keep Enrollment Numbers Up - MarketWatch

In Slumping Economy, Colleges Forced to Keep Enrollment Numbers Up - MarketWatch: "PHOENIX, AZ, Aug 07, 2008 (MARKET WIRE via COMTEX) -- Not only is the weakening U.S. economy creating challenges for students and parents trying to pay for college this year, it's also forcing colleges and universities to find new tactics to maintain their enrollment numbers and accommodate students' growing need for student loans and other forms of financial aid.
Amid speculation about the effect of the current economy on the financial stability of higher education institutions, Moody's Investors Service, an international bond-rating company, had issued a stable financial outlook six months ago for the nation's colleges and universities. But now, a recent updated report from Moody's shows that in the worsening economy, certain schools could be headed for financial trouble.
Institutions of higher education have typically been insulated from economic downturns, thanks to their resilient, diversified business models that draw on revenue from multiple sources, including the income from tuition and fees that families have continued to pay year after year, regardless of the state of the economy, even as those attendance costs have spiraled upward, far outpacing inflation."

BREAKING NEWS ... interest rates kept at 5 per cent - Scarborough Evening News

BREAKING NEWS ... interest rates kept at 5 per cent - Scarborough Evening News: "THE Bank of England has kept interest rates on hold at 5 per cent as it tries to balance the twin effects of a slowing economy and growing inflation.
Many reports have shown the economy heading for a significant slowdown or even a recession.

However the bank's Monetary Policy Committee's primary goal is to keep inflation at 2 per cent and it currently stands at 3.8 per cent.
Although the bulk of members voted to hold rates last month, one supported a cut, while another backed an increase."