BloggingStocks

Can you cut your health care costs 90% and get a free vacation?

Kevin Kersten — Fri, 02 Oct 2009 14:00:00 EST

Filed under: India, Brazil, Thailand, Aetna Inc (AET), CIGNA Corp (CI), Personal Finance

President Obama started an intense debate in recent months about national health care. People are concerned about how to pay for the high cost of health care in America and feel it is just too expensive. There has to be a better way!

I like oranges and I grew up in Wisconsin, but in January oranges do not grow very well in Wisconsin. I don't know why -- I am not a horticulturalist -- but maybe it's the lack of sunlight, hard frozen tundra, blowing snow or temperatures of 25 below zero. We could spend a long time pointlessly debating the actual reason.

Continue reading Can you cut your health care costs 90% and get a free vacation?

Can you cut your health care costs 90% and get a free vacation? originally appeared on BloggingStocks on Fri, 02 Oct 2009 14:00:00 EST. Please see our terms for use of feeds.

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Nissan (NSANY) job cuts run deep

Michael Fowlkes — Mon, 09 Feb 2009 10:15:00 EST

Filed under: International Markets, Bad News, Products and Services, Management, Competitive Strategy, Employees, Thailand, Japan, Recession, Nissan Motors (NSANY), Financial Crisis

For employees of Japan's third largest automaker, Nissan Motor Co. (NASDAQ: NSANY), the news today was grim. Nissan announced it will be eliminating a hefty 8.5% of its workforce, or roughly 20,000 jobs.

The news comes at a time when all automakers are struggling to deal with the global recession that continues to keep car buyers off the showroom floors. Nissan said it expects to report its first annual loss in the past nine years.

For the company's most recent quarter, October through December, Nissan reported a $904 million quarterly loss.

Continue reading Nissan (NSANY) job cuts run deep

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Does anyone want a bag of rice?

Connie Madon — Fri, 23 Jan 2009 15:00:00 EST

Filed under: International Markets, Thailand, Commodities

Thailand is the world's largest exporter of rice. This year Thailand wants to sell 5 million tonnes of rice, which is equal to one fifth of the world's annually traded supply. Dumping this large an amount would upset the world rice market and drive prices into the cellar.

Last year rice had a sharp jump in price to $1100.00 a tonne. Since then the price has been cut in half to about $580.00 per tonne. Recently the Vietnamese government sold 500,000 tonnes of rice to the Philippines, the world's largest importer, at $420.00 a tonne. There is talk of another sale of 1 to 1.5 million tonnes

Now you can begin to see the magnitude of the proposed Thailand sale. Thailand's problem is due in part from purchasing excess rice from farmers to keep prices high. Now, however, the Thai's are facing a dilemma. If they make this large sale, they could lose about $100.00 per tonne. On the other hand, if they don't work off the inventory, the price of rice will not rise.

Has the price of rice come down in the supermarket?

Does anyone want a bag of rice? originally appeared on BloggingStocks on Fri, 23 Jan 2009 15:00:00 EST. Please see our terms for use of feeds.

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Kobe makes 'Final Four' with BUD, ETFC, GM & MCD - NBA still in business

Sheldon Liber — Mon, 16 Jun 2008 17:16:00 EST

Filed under: Rants and Raves, General Motors (GM), Thailand, McDonald's (MCD), Walt Disney (DIS), Anheuser-Busch InBev (BUD), Business of Sports, E*TRADE (ETFC)

Yesterday could have been the end of the NBA season, but the Los Angeles Lakers forced a game six in Boston -- not so much by winning; more by having a "refuse to lose" finish that they could not muster before. I am quite sure David Stern is fine with that outcome. ESPN, and ABC television owned by Walt Disney (NYSE: DIS) must be ecstatic. The NBA officials will earn another paycheck, and the sponsors? They are praying for a game seven for sure!

Yesterday, prior to the game, I posted Sunday Funnies: Lakers/Celtics -- NBA business success, and dedicated much of the word flow to all the clamoring about NBA officiating and reasons why the game had issues. Today is all the about the cash.

While the Super Bowl is the hugest of events, an NBA Finals is a saga with twists and turns, and this one so far has had many. The Lakers face insurmountable odds of winning two games in Boston so they have been as much as counted out already.

Laker star and NBA Most Valuable Player Kobe Bryant has posed the most interesting perspective on the challenge his team faces that I can ever remember. He said, prior to the game, that since he did not go to college he viewed his situation like making the Elite Eight referring to Division I college basketball March Madness. He said, you just have to feel grateful you are there and know that you have to win three games to win the tournament.

Continue reading Kobe makes 'Final Four' with BUD, ETFC, GM & MCD - NBA still in business

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Is Asia heading for another crisis like 1997?

Aaron Katsman — Tue, 03 Jun 2008 13:48:00 EST

Filed under: International Markets, India, Thailand, Money and Finance Today

While Asian stock markets like Vietnam were the darlings of investors during 2006-07, market action and economic fundamentals may be a precursor to another Asian financial crisis like we had 11 years ago. The Vietnam market has lost more than 55% during '08, and with surging inflation, the currency is showing cracks of weakness as well.

May's inflation rate surged by 25.2%. Reading a recent Reuters report, one gets the feeling that there is a big problem on the horizon: "All readings from the economy are not healthy," a Vietnamese dealer with a foreign bank said. "The economy is not performing as well as expected by investors so they are pulling out and this trend is not short-term because we see nobody arriving. It is now an approach to a crisis."

Vietnam's dong is trading a multi-month lows, and more importantly the offshore forwards market has priced in a 30% depreciation in the currency. Countries including the Philippines, China, India, Thailand and even Hong Kong are all experiencing rapid inflation with no end in sight. This sounds all eerily familiar to what happened 11 years ago.

Investors should pay close attention to what's happening in South East Asia, as it could potentially have unpleasant ramifications for the rest of the globe.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any other mentioned, as of 6/3/08.

Is Asia heading for another crisis like 1997? originally appeared on BloggingStocks on Tue, 03 Jun 2008 13:48:00 EST. Please see our terms for use of feeds.

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Mark Mobius guides Templeton Emerging (EMF)

Steven Halpern — Wed, 28 May 2008 13:44:00 EST

Filed under: International Markets, India, China, Brazil, Russia, Middle East, Thailand, Newsletters, Mutual Funds, Mexico, Eastern Europe, Stocks to Buy

Paul Tracy believes Templeton Emerging Markets (NYSE: EMF) is a buy due to the emerging market expertise of its manager, Mark Mobius. Here's the latest from his from The ETF Authority.

"Emerging markets can dangerous waters for U.S. investors. These markets often have little to no analyst coverage and can be highly inefficient.

"As such, this is an area where expert active management can be well worth the higher price tag. And despite charging 1.55% in annual expenses, the Templeton Emerging Markets Fund certainly falls into that category.

"Given the potential pitfalls, it's reassuring to know that this fund is overseen by Dr. Mark Mobius -- a battle-tested veteran with decades of experience dealing with these uncertain stocks.

"While most funds have no discretion when it comes to making tactical decisions, Mobius and his team have the flexibility to steer clear of troubled regions or sectors -- and overweight those that look particularly promising.

Continue reading Mark Mobius guides Templeton Emerging (EMF)

Mark Mobius guides Templeton Emerging (EMF) originally appeared on BloggingStocks on Wed, 28 May 2008 13:44:00 EST. Please see our terms for use of feeds.

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Is Northern Rock's nationalization a good thing?

Aaron Katsman — Mon, 18 Feb 2008 08:40:00 EST

Filed under: Brazil, Russia, Thailand, Citigroup Inc. (C), Mexico, Politics, Housing

With news the embattled mortgage lender Northern Rock is being nationalized by the British government, until it can find a buyer, the question arises whether this is a good move or not?

Analysts at Bear Stearns said that the government's move is positive for the sector. The expected managed decline in the Northern Rock balance sheet should create less competitive mortgage market conditions," said analyst Robert Sage.

Who is this positive for? Certainly not the consumer. Competitive mortgage markets are the best thing that can happen to a consumer. Why should the consumer have to pay higher mortgage rates? Does this analyst think that the government setting mortgage rates is helpful in anyway? Let's not forget that the banks are responsible for this whole mess. Had they actually been careful in their lending practices, we wouldn't be in the mess we are currently in.

Continue reading Is Northern Rock's nationalization a good thing?

Is Northern Rock's nationalization a good thing? originally appeared on BloggingStocks on Mon, 18 Feb 2008 08:40:00 EST. Please see our terms for use of feeds.

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Emerging markets may not be the safe haven you thought they were

Michael Fowlkes — Thu, 17 Jan 2008 16:25:00 EST

Filed under: International Markets, Forecasts, Rumors, India, China, Brazil, Middle East, Thailand, Market Matters, Morgan Stanley (MS), Japan, Economic Data, Eastern Europe, Housing

As concerns over America's economy began to spread in 2007, many investors decided to look overseas for protection. In order to hedge themselves against a possible economic slowdown in the U.S., traders poured money into emerging markets such as India and China, but some are starting to question just how safe these markets will be this year.

Last year, when it looked like the U.S. economy was going to get hit with a weak dollar and nasty housing market, it made sense to look to different markets for protection, but now some are fearing that the problems that are plaguing America will reach a point where they will pull down foreign economies also.

What we have seen in 2008 is a pretty substantial downtrend in some of last year's favorite safe havens. Markets such as Korea, Thailand, Turkey and Brazil have all been hit in the first half of January and are down over 8 percent.

Continue reading Emerging markets may not be the safe haven you thought they were

Emerging markets may not be the safe haven you thought they were originally appeared on BloggingStocks on Thu, 17 Jan 2008 16:25:00 EST. Please see our terms for use of feeds.

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Would CO2 limits curb global GDP growth?

Joseph Lazzaro — Wed, 02 Jan 2008 16:10:00 EST

Filed under: International Markets, Other Issues, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Mexico, Canada, Japan, Commodities, Oil, Eastern Europe, Agriculture, Israel

Financial Times columnist Martin Wolf, an economist, poses the question, "Will CO2 emissions limits lead to a zero-sum global economy?" - an economy characterized by stagnant (or declining) incomes, and armed conflict among nations?

Wolf argues that increased energy consumption per capita, primarily oil from fossil fuel, has been a key causal factor in creating the plus-sum economic world we live in, which he calls the positive-sum economy. Or in other words, rising energy consumption has helped produce rising productivity / real incomes / wealth, and the expanding global economy that we know today.

In addition, Wolf further argues that rising energy consumption transformed politics -- assisting both the birth of democratic politics at home and more-consensual foreign relations among states -- by increasing the size of the economic pie. Elites in a country, Wolf argues, became more willing to tolerate the enfranchisement of the masses because it was in the elites' economic interest to do so: i.e. that energy consumption created a more-productive (and more-valuable) citizenry with higher incomes.

Internationally, a nation's gains from the increased trade that characterizes the high-energy consumption era far exceed its gains from making war with another nation: the plus-sum global economy that trade produces supports today's norm of trade as opposed to the limited-sum world's norm of conflict and war.

Continue reading Would CO2 limits curb global GDP growth?

Would CO2 limits curb global GDP growth? originally appeared on BloggingStocks on Wed, 02 Jan 2008 16:10:00 EST. Please see our terms for use of feeds.

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Best Stocks for 2008: Income expert votes for Templeton Emerging (EMF)

Steven Halpern — Sat, 22 Dec 2007 08:00:00 EST

Filed under: International Markets, India, Russia, Thailand, Newsletters, Mutual Funds, Eastern Europe, Stocks to Buy, Best Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite conservative idea for 2008 is Templeton Emerging Markets Fund (NYSE: EMF), a closed-end fund that holds the vast majority of its stocks in emerging market economies," says Carla Pasternak, editor of High Yield Investing.

"About a third of its stock holdings are in Brazil and China, two of the countries popularly known as the 'BRIC' economies (the other two are Russia and India). Led by one of the legends of emerging market investing,
Mark Mobius, EMF also goes off the beaten track to find stocks in Turkey, South Korea and Thailand.

"About a third of the portfolio stocks are in the energy sector, with another 20% in the industrials materials group such as iron ore. With energy prices and industrial commodities soaring this past year, EMF has been in the right
place at the right time.

"The same can be said of the entire emerging market sector. And since the world stock market bottom in mid-August, emerging market funds have been hot, hot, hot. These funds attracted $23 billion in capital in all of 2006, but since the last week of August have drawn more than $24 billion.

"Short term, the sage advice of Peter Lynch may ring in your ears -- Beware the hottest stock in the hottest sector.
Still, EMF shares haven't kept up with the asset growth of the fund's portfolio holdings, and the fund is trading today at an attractive discount of 10% to its net worth.

"In other words, you can scoop up a dollar's worth of stock for just 90 cents. Long-term investors willing to withstand a possible short-term pullback in the fund may want to invest at this time."

Best Stocks for 2008: Income expert votes for Templeton Emerging (EMF) originally appeared on BloggingStocks on Sat, 22 Dec 2007 08:00:00 EST. Please see our terms for use of feeds.

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The currency trade for 2008, as per Goldman Sachs

Zack Miller — Thu, 29 Nov 2007 14:02:00 EST

Filed under: Analyst Reports, Forecasts, China, Thailand, Japan

Bloomberg ran an interesting article this morning. The article contained an interview with Jens Nordvig, a senior currency strategist in New York at Goldman Sachs (NYSE: GS). Nordvig said the top currency trade for 2008 will be to sell the U.S. dollar against a basket of Asian currencies, including the currencies of Malaysia, Singapore and Taiwan.

In the article, Nordvig cites two reasons why this trade should work next year:

Asian central banks should allow faster currency appreciation to offset inflation in their home countries
It is becoming costlier for the central banks to enter foreign exchange market

The Malaysian, Singaporean and Taiwanese currencies will each gain about 5% to 10% against the dollar in the next year, according to Nordvig.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

The currency trade for 2008, as per Goldman Sachs originally appeared on BloggingStocks on Thu, 29 Nov 2007 14:02:00 EST. Please see our terms for use of feeds.

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Harsh headwind: Some pensions reducing U.S. stock stakes

Joseph Lazzaro — Tue, 27 Nov 2007 14:55:00 EST

Filed under: International Markets, Other Issues, India, China, Brazil, Russia, Middle East, Thailand, Mexico, Eastern Europe, Israel

Under the category of "the stock market did not need this additional headwind," some of the largest public pension funds have been selling shares in a big way, The Wall Street Journal reported Tuesday.

The Journal said the New York State Teachers' Retirement System, the New York State Common Retirement Fund, the Teacher Retirement System of Texas and the Florida Retirement System Pension Plan are all funds that are reducing stakes in U.S. companies. Collectively, these funds control more than $500 billion in assets.

Further, and equally significant, the nation's largest fund, the $250-billion California Public Employees' Retirement System (Calpers) is considering shedding its home-country bias, the Sacramento Bee reported.

One plan calls for Calpers to reduce U.S. equities exposure to 28.4% from 40% and increase international equities exposure to 28.4% from 20%. The Calpers Board of Directors is expected to vote on the measure next month.

Continue reading Harsh headwind: Some pensions reducing U.S. stock stakes

Harsh headwind: Some pensions reducing U.S. stock stakes originally appeared on BloggingStocks on Tue, 27 Nov 2007 14:55:00 EST. Please see our terms for use of feeds.

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IEA's global oil demand projection isn't pretty

Joseph Lazzaro — Thu, 08 Nov 2007 17:44:00 EST

Filed under: Exxon Mobil (XOM), India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Chevron Corp (CVX), ConocoPhillips (COP), BP p.l.c. ADS (BP), Mexico, Canada, Japan, Commodities, Oil, Eastern Europe, Israel

If the industrialized - - and the industrializing - - world needs a wake-up call regarding the development of alternate and renewable energy sources, the nations need look no further than the International Energy Agency's research.

IEA projects that between now and 2015, the world will need an additional 37.5 million barrels per day of oil to meet rising demand. Currently, the world use about 84 million barrels of oil per day. [Oil closed Thursday down 91 cents to $95.46. A convergence of events, including strong global economic growth and geopolitical concerns, has pushed oil's price up more than 135% in three years; traders see oil testing the $100 per barrel mark in the weeks ahead.]

And here's the riveting statistic from the IEA: current oil production development plans will add only about 25 million barrels per day by 2015.

And what about that 12.5-million barrel gap? The gap, the IEA said, must be made up through further investment or easing of demand.

If the gap is not filled, a supply shortfall will result, the IEA said. "'A supply-side crunch in the period to 2015, involving an abrupt escalation in oil prices, cannot be ruled out," the agency said.

Oil Analysis: While oil consumption increases are expected in every region in the world and by dozens of nations, the importance of the United States and China in marshaling any energy coalition cannot be underscored enough. Each is the primary engine of growth in its hemisphere. Each has the private, public, and university-based economies of scale necessary to both implement conservation measures and development new energy sources - - practices that smaller nations in each region would undoubtedly mirror. Finally, each - - by virtue of the sheer size of their consumer bases - - can decisively "move the needle" toward increased energy efficiency and, along with it, toward less CO2 in the atmosphere, in the years and decades ahead.

IEA's global oil demand projection isn't pretty originally appeared on BloggingStocks on Thu, 08 Nov 2007 17:44:00 EST. Please see our terms for use of feeds.

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Starwood Hotels to open W Bangkok

Meg Massie — Tue, 16 Oct 2007 15:35:00 EST

Filed under: Thailand, Starwood Hotels Worldwide (HOT), Options, Technical Analysis

Starwood Hotels & Resorts Worldwide (NYSE: HOT) announced today that its W Hotels unit will open W Bangkok in 2011. The new hotel will feature 400 rooms and will be part of a mixed-use development in Bangkok's commercial and diplomatic center. If you think that the company will not fall by too much over the next few months, now could be a good time to look at a bullish hedged trade on HOT.

After climbing to a one-year high of $75.45 in July, HOT took a nosedive to a 52-week low of $52.63 just six weeks later in August. The stock has had a bumpy ride over the past few months, but appears to be settling in with support just below $60. HOT opened this morning at $59.55. So far today, the stock has hit a low of $59.06 and a high of $61.53. As of 3:00 p.m., the stock was trading at $60.46, up $0.72 (1.21%). HOT's chart is improving from bearish to neutral, while S&P gives the stock an encouraging 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $45 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in just 3 months as long as HOT is above $45 at January expiration. Starwood Hotels would have to fall by more than 25% before we would start to lose money.

HOT hasn't been below $45 since October 2004 and has shown support in the upper $50's recently. This trade could be risky if the company's earnings (due out 10/25) disappoint, but even if that happens, this position could be protected by strong historical support around $55. Additionally, HOT has a strong history of beating earnings estimates, with the company's last earnings miss coming in Q1 2003.

Meg Massie is an options analyst and writer at Investors Observer.
DISCLOSURE: At publication time, Meg neither owns nor controls positions in HOT.

Starwood Hotels to open W Bangkok originally appeared on BloggingStocks on Tue, 16 Oct 2007 15:35:00 EST. Please see our terms for use of feeds.

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Goldman's Q2 report points to solid global growth

Joseph Lazzaro — Thu, 14 Jun 2007 17:02:00 EST

Filed under: Major Movement, Earnings Reports, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Citigroup Inc. (C), JPMorgan Chase (JPM), Goldman Sachs Group (GS), Morgan Stanley (MS), Mexico, Canada, Japan, Eastern Europe, Lehman Br Holdings (LEH), Bear Stearns Cos (BSC)

Wall Street is replete with axioms, and one is "As Goldman Sachs goes, so goes Wall Street."

In truth, Wall Street is a more-complex place than any one institution, but investment banking giant -- and, arguably, the financial world's most respected and influential firm -- Goldman Sachs Group, Inc. (NYSE: GS) does tend to set the tone for the Concrete Canyon. And right now that tone remains a pleasant one: Goldman Sachs reported Q2 EPS of $4.93, well ahead of the Reuters consensus estimate of $4.76. GS also reported Q2 revenue of $10.2 billion, roughly in-line with the Reuters consensus estimate of $10.1 billion.

Goldman posted a record $1 billion in investment banking fees this quarter, which offset a drop in fixed income trading revenue and in its conference call the company said investment banking business conditions remain favorable. Goldman said substantial growth opportunities exist in every region of the world, with the firm characterizing growth in Asia as strongest, followed by Europe, and the United States.

However, although the report was favorable and indicative of strong conditions in the investment banking sector and more-broadly, global capital markets, Goldman's share were down $7.74 to $225.90 in late Thursday afternoon trading. Analysts said the move lower was most likely to due short-term position holders who had expected a stronger Q2 report from GS. Further, it's important to note that the long-term outlook for GS remains strong, with analysts surveyed by Reuters expecting GS's 2007 EPS to rise to $21.50 in 2007, up from $19.69 in 2006.

Continue reading Goldman's Q2 report points to solid global growth

Goldman's Q2 report points to solid global growth originally appeared on BloggingStocks on Thu, 14 Jun 2007 17:02:00 EST. Please see our terms for use of feeds.

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Emerging markets not immune to bubbles

Joseph Lazzaro — Thu, 17 May 2007 16:15:00 EST

Filed under: International Markets, Other Issues, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Mexico, Canada, Japan, Economic Data, Eastern Europe

Earlier on The Fly and on bloggingstocks.com, we analyzed the "saving surplus" -- the plentiful global supply of capital -- and its obvious benefits for the U.S economy: Continued, relatively low interest rates for fixed-rate mortgages, among other instruments.

In other words, the savings surplus has created a sort of a unconventional "mortgages on sale" condition for the U.S., and we also noted that the favorable condition is not likely to disappear soon, unless investors, particularly foreign institutions, lose their appetite for U.S. Treasuries and other debt instruments.

However there is another down-side dimension to the large and increasing pool of capital that's spanning the globe in search of return and yield: Emerging market bubbles and speculative excesses.

Emerging markets, particularly in China, India, Brazil, and Russia are helping fuel a global growth rate of better than 4% -- a robust rate that's increasing trade, earnings, and jobs worldwide -- but analysts caution that within this macro-picture growth story there will be speculative excesses -- commonly referred to as "bubbles."

Continue reading Emerging markets not immune to bubbles

Emerging markets not immune to bubbles originally appeared on BloggingStocks on Thu, 17 May 2007 16:15:00 EST. Please see our terms for use of feeds.

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IMF report points to multi-polar economy

Joseph Lazzaro — Thu, 12 Apr 2007 13:10:00 EST

Filed under: International Markets, Forecasts, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Caterpillar (CAT), Boeing Co (BA), Mexico, Canada, Japan, Economic Data, Deere and Co (DE), Freep't McMoRan Copper (FCX)

The thesis that the global economy is moving toward a multi-polar world, as opposed to one driven primarily by U.S. economic growth, was reinforced Wednesday when the International Monetary Fund lowered its 2007 U.S. GDP growth forecast to 2.2% from 2.9%, while underscoring that it expects the global economy to grow at a much higher 4.9% rate.

For much of the modern industrial area, slow growth in the U.S. meant slow growth for most of the developed world. The relationship helped spawn the economic adage, "When the U.S. economy catches a cold, the world catches pneumonia."

That adage is being tested today, at the dawn of the globalization era, because in 2007 the IMF predicts that every major economic zone in Europe and Asia will grow faster than the U.S. economy in 2007.

Continue reading IMF report points to multi-polar economy

IMF report points to multi-polar economy originally appeared on BloggingStocks on Thu, 12 Apr 2007 13:10:00 EST. Please see our terms for use of feeds.

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IMF: Global economic growth still solid

Joseph Lazzaro — Thu, 05 Apr 2007 15:35:00 EST

Filed under: Major Movement, Other Issues, Good news, General Electric (GE), India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Caterpillar (CAT), Boeing Co (BA), Mexico, Canada, Japan, Economic Data, Deere and Co (DE)

The global economy will remain resilient, despite an economic slowdown in the U.S, the International Monetary Fund concluded in its semi-annual World Economic Outlook, released Thursday. The IMF expects the global economy to grow about 5% in 2007, which is a healthy economic expansion rate.

Further, the IMF report argued that concerns about a global recession triggered by a substantial slowdown in the U.S. economy were not supported by historical evidence, if previous global recessions are any indicator of the phenomenon.

Global growth typically declines sharply when there are synchronized adverse events that affect many countries at the same time, said IMF Chief Economist Simon Johnson. None of the three major economic regions of the world: the U.S., European Union, and Japan-China is in recession, a strong argument against any conclusion predicting a global slowdown, let alone a global recession.

Continue reading IMF: Global economic growth still solid

IMF: Global economic growth still solid originally appeared on BloggingStocks on Thu, 05 Apr 2007 15:35:00 EST. Please see our terms for use of feeds.

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Two words for the future: financial services

Joseph Lazzaro — Fri, 30 Mar 2007 19:37:00 EST

Filed under: International Markets, Other Issues, Good news, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Citigroup Inc. (C), American Express (AXP), Mexico, Canada, Japan, Personal Finance

From the international-news-that-could-very-well-be-pertinent-to-your-financial-future department, Sweden has announced that it plans to abolish its decades-old wealth tax.

Does that sound moot? At first glance, perhaps. After all, Sweden is far away, and Swedish tax policy is not directly relevant to U.S. taxpayers.

However, a more critical look reveals that Sweden's move underscores an ongoing global trend toward privatization, markets and investment, and away from policies that restrict capital inflows, investment, and, more generally, commerce.

U.S. readers are familiar with investment conditions stateside in the last two decades, during which federal income taxes have been reduced and the nation has pursued a more business-friendly regulatory policy.

But what some readers may not be readily aware of is that the lower-tax/encourage-commerce trend has also been a feature of economic policy in Europe and Asia. To be sure, Europe's income-tax rates, in general, remain higher than those in the U.S., and many states in those regions have more-extensive social welfare states than the U.S., but the move toward investment, commerce and markets is clear, and Sweden's wealth-tax abolishment is further evidence.

Continue reading Two words for the future: financial services

Two words for the future: financial services originally appeared on BloggingStocks on Fri, 30 Mar 2007 19:37:00 EST. Please see our terms for use of feeds.

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Boeing and Airbus: The subsidy spat continues

Joseph Lazzaro — Thu, 22 Mar 2007 16:04:00 EST

Filed under: International Markets, Other Issues, Competitive Strategy, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Market Matters, Southwest Airlines (LUV), US Airways Group (LCC), Contl Airlines'B' (CAL), UAL Corp (UAUA), Mexico, Canada, Japan, JetBlue Airways (JBLU)

The European Union Thursday fired the latest shot in the Airbus (FR:EADS) vs. Boeing (NYSE:BA) joust by accusing the United States of giving Boeing $24 billion in state aid. The claim was included as part of written evidence to a World Trade Organization panel probing the EU's complaint against the U.S., the BBC News reported.

Boeing's shares were down 40 cents to $90.40 in Thursday afternoon trading. EADS shares closed Thursday up about 41 cents to Eur22.19.

Airbus is publicly subsidized, but the company is also attempting to transition to a more-private, for-profit corporate structure: the company has often been criticized by the U.S. as not conforming with WTO bylaws. Among other points, the U.S. lists "launch aid" to Airbus since its birth in 1970 as a $16.7 billion European subsidy.

The EU has countered that Boeing benefits from U.S. Department of Defense contracts [which some view as a de-facto subsidy], and hidden state subsidies, including $4 billion in tax breaks and exclusive infrastructure work from the State of Washington.

Continue reading Boeing and Airbus: The subsidy spat continues

Boeing and Airbus: The subsidy spat continues originally appeared on BloggingStocks on Thu, 22 Mar 2007 16:04:00 EST. Please see our terms for use of feeds.

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