7/3/04 Fireworks
Bush gave a speech yesterday in the East Room of the White House. He stated that “real after-tax incomes are up 11 percent since December of 2000… we want people to be able to come home and say, boy, how was work; it was great. I enjoy working.” Bush should have addressed some rather serious facts. The average workweek for production or non-supervisory workers on private nonfarm payrolls decreased by 0.2 hour in June to 33.6 hours, seasonally adjusted. How many people can make ends meet on 33.6 hours of work per week? The workweek in manufacturing fell by 0.3 hour to 40.8 hours, nearly offsetting the gain in May. Manufacturing overtime was unchanged at 4.6 hours. The index of aggregate weekly hours of production or non-supervisory workers on private nonfarm payrolls declined by 0.6 percent in June to 99.6, and the manufacturing index fell by 0.8 percent over the month to 94.6. Importantly, average hourly earnings of production or non-supervisory workers on private nonfarm payrolls increased by 2 cents in June to $15.65, seasonally adjusted; however, average weekly earnings declined by 0.5 percent over the month to $525.84 from May’s $528.29. Bush didn’t tell his audience those facts.
There is so much slack in this economy that the work week keeps getting shortened and earnings after inflation keep going down. The employment-population ratio was 62.3 percent in June and has been at or near that level since early 2003. The civilian labor force participation rate also was little changed at 66.0 percent. If the economy were on a growth plane, these ratios would be trending upward. There will always be strong spots. Employment in health care and social assistance continued to grow in June, and that should continue with a population that is aging. In the last month, professional and technical services, transportation and warehousing, courier and messenger services, trucking, and temporary help showed gains in employment. Of those, temporary help can be expected to continue with gains as companies seek to avoid paying benefits. In sum, the few bright spots get lost in the overall dismal employment picture. Working less and for less inflation-adjusted pay is a recipe for an economic shipwreck. You are witnessing the undoing of financial well-being and stability on Main Street. Those are the fireworks heard this weekend. It is little wonder that 52% of Americans recently polled disapprove of Bush’s handling of the economy. Michael Moore’s film won’t finish Bush. Bush will finish Bush.
On Wall Street, the disappointing June employment report brought forth the idea that the Fed would not need to aggressively raise interest rates. When the consumer slows spending at Wal-Mart and Target and walks past the Big Three showrooms while inventories of unsold cars swell, would you raise rates? As support for the dollar wanes, would you want to hold dollar-denominated assets? Only if you want a tax loss. The Snowman stated our economy is continuing its “strong, strong recovery.” He might have opined that some members of the administration are recovering.
Pimco’s Bill Gross: “Today’s report underscores the fragility of a levered economy that thrives on low interest rates and wilts as those rates go up.”
Since Bush took office in January 2001, the U.S. economy has lost about 1.1 million jobs. If one were to count those folks whose unemployment benefits ran out, the number would be closer to 3 million.
Maxtor is the second-largest hard drive manufacturer. The company stated tat it will eliminate as many as 500 jobs immediately. The staff reductions will save the company as much as $80 million a year. The CEO remarked “during the quarter, we took steps to control costs and expenses to partially offset the shortfall in volume and revenue. We will continue our efforts to cut costs and lower the break-even point of the company through a reduction in force, beginning this month.”
Friday, July 02, 2004
7/2/04 Incentives And Inventories
Paul Ballew, GM’s director of market and industry analysis, stated that “quite simply. June was tough.” He might have elaborated and mentioned that GM offered record incentives and yet sales for the month dropped off a cliff by 15% compared with the year earlier period. Some analysts said that June was poor due to the big incentives in May. That’s a great theory except that June’s incentives were higher than May’s. Toyota didn’t have any trouble in either month. Their market share keeps rising. Ford’s sales were down by 7.7% for June. It was their 12th consecutive monthly drop. Chrysler managed a 1% rise in the month thanks to sales of its new 300C. As we move closer to the 2005 model year introduction, one should pay attention to the level of inventories at the Big Three. Some production lines may need to be shut down. Of course, those temporary layoffs will not show up in today’s employment report.
Federal Signal announced plans to close a plant and lay off 400 workers.
Eastman Kodak will close its Charlotte, NC film-processing lab, which employs 100 people. Kodak stated it is closing the lab to cut costs. I’m sure the surge in popularity of digital cameras might be the real reason.
The number of workers collecting state unemployment benefits rose by 13,000 to 2.966 million in the week ended June 19. The uninsured employment rate rose to 2.4 percent from 2.3 percent the previous week. How do you spin having more people working with the uninsured unemployment rate rising? I’m sure the administration will figure something out. They are pros at bullshit. I’ll tell you what they will say. It’s simple. They will report that the decline in continuing claims is the result of job creation, and that workers are exhausting their benefits prior to finding work. This excludes two facts: since December 23, 2004, each week at least 80,000 workers exhaust their benefits and are no longer counted on the unemployment rolls; secondly, the rate of hiring is declining and most of the hiring is in low-paying, little or no benefit jobs.
Shell Oil misled investors about their oil reserves. Verizon overstated its subscriber base in the first quarter. What company is next on the list?
The ECB held interest rates at 2%. Germany’s retail sales fell 5.2% in May.
I feel really good this morning. In the most recent Wall Street Journal survey of 55 forecasters, the expectation is for steady expansion for the rest of this year. I guess I can take off for the beach.
In a survey of 362 companies by Treasury Strategies, the average U.S. company generated a return of 2.8% or less in 2003 on their cash and investments. Over the last three years, Microsoft generated a 7.3% average annual return. In their fiscal year which ended June 30, 2004, Microsoft’s CFO, John Connor, expects the investments to return as much as 6%. Investors want Microsoft to return some of that $57 billion to them in the form of a dividend. Considering Microsoft’s return on investments and the tax considerations, maybe that idea has little merit.
Paul Ballew, GM’s director of market and industry analysis, stated that “quite simply. June was tough.” He might have elaborated and mentioned that GM offered record incentives and yet sales for the month dropped off a cliff by 15% compared with the year earlier period. Some analysts said that June was poor due to the big incentives in May. That’s a great theory except that June’s incentives were higher than May’s. Toyota didn’t have any trouble in either month. Their market share keeps rising. Ford’s sales were down by 7.7% for June. It was their 12th consecutive monthly drop. Chrysler managed a 1% rise in the month thanks to sales of its new 300C. As we move closer to the 2005 model year introduction, one should pay attention to the level of inventories at the Big Three. Some production lines may need to be shut down. Of course, those temporary layoffs will not show up in today’s employment report.
Federal Signal announced plans to close a plant and lay off 400 workers.
Eastman Kodak will close its Charlotte, NC film-processing lab, which employs 100 people. Kodak stated it is closing the lab to cut costs. I’m sure the surge in popularity of digital cameras might be the real reason.
The number of workers collecting state unemployment benefits rose by 13,000 to 2.966 million in the week ended June 19. The uninsured employment rate rose to 2.4 percent from 2.3 percent the previous week. How do you spin having more people working with the uninsured unemployment rate rising? I’m sure the administration will figure something out. They are pros at bullshit. I’ll tell you what they will say. It’s simple. They will report that the decline in continuing claims is the result of job creation, and that workers are exhausting their benefits prior to finding work. This excludes two facts: since December 23, 2004, each week at least 80,000 workers exhaust their benefits and are no longer counted on the unemployment rolls; secondly, the rate of hiring is declining and most of the hiring is in low-paying, little or no benefit jobs.
Shell Oil misled investors about their oil reserves. Verizon overstated its subscriber base in the first quarter. What company is next on the list?
The ECB held interest rates at 2%. Germany’s retail sales fell 5.2% in May.
I feel really good this morning. In the most recent Wall Street Journal survey of 55 forecasters, the expectation is for steady expansion for the rest of this year. I guess I can take off for the beach.
In a survey of 362 companies by Treasury Strategies, the average U.S. company generated a return of 2.8% or less in 2003 on their cash and investments. Over the last three years, Microsoft generated a 7.3% average annual return. In their fiscal year which ended June 30, 2004, Microsoft’s CFO, John Connor, expects the investments to return as much as 6%. Investors want Microsoft to return some of that $57 billion to them in the form of a dividend. Considering Microsoft’s return on investments and the tax considerations, maybe that idea has little merit.
Thursday, July 01, 2004
7/1/04 The Next Six Months
Yesterday marked the first increase in interest rates by the Fed in more than four years. The cost of money maybe a bit more dear, but the Fed will remain accommodative in their monetary policy. Do not be fooled though. This is not a fairy tale economy. With so many barely making ends meet, with consumer debt at rising levels, with twin tower government deficits, and with real estate values looking more like those in Japan in the late 1980s, it is certain that the landing will not be soft for many. You may believe in Superman. I would never want to burst your bubble.
According to a new report from the U.S. Army, one in five of our soldiers returning from Iraq suffer serious mental health problems associated with post-traumatic stress disorder. The headlines cover Saddam’s trial. I care about our fighting men and women. In addition to Saddam, maybe others in this country should be on trial.
It took one year for Boeing to sell its Irving, Texas commercial electronics division, and they never disclosed the price. BAE hopes to retain all of the 600 workers at the Boeing unit; however, Boeing stated about 200 Puget Sound workers in the division will lose their current positions. Boeing hopes to find other spots for them. I’m sure they mean well when that is said. Unfortunately, well-meaning does not pay the bills.
For the last quarter and all of their 2004 fiscal year, India’s GDP grew at an 8.2% rate.
All eyes are on inflation. China and India want to keep a lid on prices. The ability to attract foreign investment hinges on their ability to keep prices from rising. It’s not a perfect world, and many commodities soared over the past 12 months as China’s demand clearly outstripped near-term supply. China does not want to kill the potential golden goose. Their foot will gently come off the pedal.
Starting today, California will become the nation’s first state where workers can receive part of their pay while they take time to be with a new baby or to care for a severely ill relative. This is called the Paid Family Leave Insurance Program, and is funded by employees through the state’s disability insurance program.
Robert LaBudde, a food industry consultant who has served on the faculties of the University of Wisconsin-Madison and MIT, stated “there is no question that we will be seeing a dozen or more-possibly 100 or more- cases of BSE-positive cattle in our national herd.” LaBudde’s clients include the meat industry.
The Treasury Department will announce the size of their TIPS offering that will be sold next week. There is a sucker born every day.
Carustar Industries will close its Charlotte, NC folding carton plant and its Georgetown, KY plastics plant. The company did not state how many employees would be impacted.
Diane Swonk, Banc One’s economist, stated “I don’t think we’ll see another rate hike until September.” That is a minority viewpoint.
In an agreement possibly taking effect late next year, once approved by Congress and Mexico, about 50,000 workers in the U.S. and Mexico would become eligible for some retirement benefits under either country’s system after the first five years of the agreement, the Social Security Administration estimated. The agreement would cost the retirement system about $105 million a year. To qualify, workers must have 10 years or 40 quarters of work history.
The Northern Kentucky Chamber announced that the decision by DHL Express to relocate much of its Northern Kentucky sorting operation to its hub in Wilmington, Ohio would mean the loss of more than 2,900 jobs and a loss of $250 million in overall business output, including wages and retail sales. Offsetting a portion of that loss will be a new FedEx distribution center planned for the area.
James Chessen, chief economist of the ABA, stated “the rise in interest rates is one-quarter of a percentage point… the actual cost to consumers would be $2.50 more per year on $1,000 of debt--- less than the cost of a latte.” It’s too bad that the debt level for consumers is significantly larger than $1,000. Economists sometimes ignore reality.
The Chicago Purchasers Index declined to 56.4 in June from May’s reading of 68. It was the biggest drop since 1974. The production index dropped to 53.9 from 71.1.
Yesterday marked the first increase in interest rates by the Fed in more than four years. The cost of money maybe a bit more dear, but the Fed will remain accommodative in their monetary policy. Do not be fooled though. This is not a fairy tale economy. With so many barely making ends meet, with consumer debt at rising levels, with twin tower government deficits, and with real estate values looking more like those in Japan in the late 1980s, it is certain that the landing will not be soft for many. You may believe in Superman. I would never want to burst your bubble.
According to a new report from the U.S. Army, one in five of our soldiers returning from Iraq suffer serious mental health problems associated with post-traumatic stress disorder. The headlines cover Saddam’s trial. I care about our fighting men and women. In addition to Saddam, maybe others in this country should be on trial.
It took one year for Boeing to sell its Irving, Texas commercial electronics division, and they never disclosed the price. BAE hopes to retain all of the 600 workers at the Boeing unit; however, Boeing stated about 200 Puget Sound workers in the division will lose their current positions. Boeing hopes to find other spots for them. I’m sure they mean well when that is said. Unfortunately, well-meaning does not pay the bills.
For the last quarter and all of their 2004 fiscal year, India’s GDP grew at an 8.2% rate.
All eyes are on inflation. China and India want to keep a lid on prices. The ability to attract foreign investment hinges on their ability to keep prices from rising. It’s not a perfect world, and many commodities soared over the past 12 months as China’s demand clearly outstripped near-term supply. China does not want to kill the potential golden goose. Their foot will gently come off the pedal.
Starting today, California will become the nation’s first state where workers can receive part of their pay while they take time to be with a new baby or to care for a severely ill relative. This is called the Paid Family Leave Insurance Program, and is funded by employees through the state’s disability insurance program.
Robert LaBudde, a food industry consultant who has served on the faculties of the University of Wisconsin-Madison and MIT, stated “there is no question that we will be seeing a dozen or more-possibly 100 or more- cases of BSE-positive cattle in our national herd.” LaBudde’s clients include the meat industry.
The Treasury Department will announce the size of their TIPS offering that will be sold next week. There is a sucker born every day.
Carustar Industries will close its Charlotte, NC folding carton plant and its Georgetown, KY plastics plant. The company did not state how many employees would be impacted.
Diane Swonk, Banc One’s economist, stated “I don’t think we’ll see another rate hike until September.” That is a minority viewpoint.
In an agreement possibly taking effect late next year, once approved by Congress and Mexico, about 50,000 workers in the U.S. and Mexico would become eligible for some retirement benefits under either country’s system after the first five years of the agreement, the Social Security Administration estimated. The agreement would cost the retirement system about $105 million a year. To qualify, workers must have 10 years or 40 quarters of work history.
The Northern Kentucky Chamber announced that the decision by DHL Express to relocate much of its Northern Kentucky sorting operation to its hub in Wilmington, Ohio would mean the loss of more than 2,900 jobs and a loss of $250 million in overall business output, including wages and retail sales. Offsetting a portion of that loss will be a new FedEx distribution center planned for the area.
James Chessen, chief economist of the ABA, stated “the rise in interest rates is one-quarter of a percentage point… the actual cost to consumers would be $2.50 more per year on $1,000 of debt--- less than the cost of a latte.” It’s too bad that the debt level for consumers is significantly larger than $1,000. Economists sometimes ignore reality.
The Chicago Purchasers Index declined to 56.4 in June from May’s reading of 68. It was the biggest drop since 1974. The production index dropped to 53.9 from 71.1.
Wednesday, June 30, 2004
6/30/04 News Can Matter
The recent bad news at Wal-Mart helped send the stock trading to 6-month lows. Having announced that June sales are “well below plan,” Target’s stock traded at a 4-month low. Not to be outdone, Washington Mutual felt the impact of the poor performance at their mortgage unit, and its stock traded yesterday at a 9-month low.
Robert Lutz, GM Vice Chairman, said the “young tiger” domestic China auto makers such as Geely, Great Wall, and Chery will soon start exporting to the west. He said that China is like “a freight train driving down on us.”
The Conference Board’s Consumer Confidence Index increased sharply in June, and reached their highest levels in 2 years. Confidence, however, does not produce an increase in one’s cash flow. According to yesterday’s survey by Visa USA, spending will be tight for summer vacations. Most travelers will be taking low-cost trips to visit family this summer. Other popular destinations for the budget traveler were beach and camping trips. Four out of five respondents stated they have travel budgets to keep an eye on the household bottom line.
Private construction in California in May was down 5.2% from April, according to the Construction Industry Research Board. Public works construction was down 8.8% from April and down 12.1% from May 2003.
The Bond Market Association forecasts that the yield on 10-year treasury bonds will rise to 5% by September and to 5.5% by this time next year.
For the first time in six years, Paccar has added a night shift at their Renton, WA plant, where Kenworth trucks are built. A total of 225 workers were added.
The recent bad news at Wal-Mart helped send the stock trading to 6-month lows. Having announced that June sales are “well below plan,” Target’s stock traded at a 4-month low. Not to be outdone, Washington Mutual felt the impact of the poor performance at their mortgage unit, and its stock traded yesterday at a 9-month low.
Robert Lutz, GM Vice Chairman, said the “young tiger” domestic China auto makers such as Geely, Great Wall, and Chery will soon start exporting to the west. He said that China is like “a freight train driving down on us.”
The Conference Board’s Consumer Confidence Index increased sharply in June, and reached their highest levels in 2 years. Confidence, however, does not produce an increase in one’s cash flow. According to yesterday’s survey by Visa USA, spending will be tight for summer vacations. Most travelers will be taking low-cost trips to visit family this summer. Other popular destinations for the budget traveler were beach and camping trips. Four out of five respondents stated they have travel budgets to keep an eye on the household bottom line.
Private construction in California in May was down 5.2% from April, according to the Construction Industry Research Board. Public works construction was down 8.8% from April and down 12.1% from May 2003.
The Bond Market Association forecasts that the yield on 10-year treasury bonds will rise to 5% by September and to 5.5% by this time next year.
For the first time in six years, Paccar has added a night shift at their Renton, WA plant, where Kenworth trucks are built. A total of 225 workers were added.
Tuesday, June 29, 2004
6/29/04 Yesterday It Was Wal-Mart And Today GM
In an effort to spur sales, in May, GM increased incentives to $5,000. Yesterday, the company forecast surprisingly weak sales for the month of June. Sales could be down 5% and Ford’s even more. They will lose market share to Toyota as the latter records double-digit sales growth. With the early introduction of new models, results for Chrysler could to be flat to modestly higher. Will larger incentives and weak sales be business as usual for the U.S. auto industry?
According to the International Council of Shopping Centers and UBS, sales at U.S. retail chain stores fell 1.2% last week. It was the largest decline in six months. Discount stores were hit the hardest. I guess well-heeled shoppers don’t mind cooler temperatures and wetter conditions.
May’s savings rate was 2.2%, down from April’s 2.6%. Adjusted for rising prices, spending increased 0.45 in May after no change in April.
Edward N. Wolff, an economist at NYU, analyzed 18 years of household financial data collected by the Federal Reserve. From 1983 to 2001, the net worth of the median older household- the one at the midpoint of the economic ladder- declined 2.2% or $4,000, during the period to $199,900. Wolff stated that, based on economic growth and market conditions over those 18 years, their wealth “should be up around 30 or 40 percent.” Countless American workers have relinquished part of a pension by moving from one job to another over the past two decades, and many plans have been eliminated due to cost cutting measures. In 1985, about 115,000 American companies had traditional pension plans. As of last year, only about 31,000 did.
Washington Mutual stated its mortgage business might lose money in 2004. The company cut its earnings forecasts for this year and remarked that more job cuts can be anticipated.
In an effort to spur sales, in May, GM increased incentives to $5,000. Yesterday, the company forecast surprisingly weak sales for the month of June. Sales could be down 5% and Ford’s even more. They will lose market share to Toyota as the latter records double-digit sales growth. With the early introduction of new models, results for Chrysler could to be flat to modestly higher. Will larger incentives and weak sales be business as usual for the U.S. auto industry?
According to the International Council of Shopping Centers and UBS, sales at U.S. retail chain stores fell 1.2% last week. It was the largest decline in six months. Discount stores were hit the hardest. I guess well-heeled shoppers don’t mind cooler temperatures and wetter conditions.
May’s savings rate was 2.2%, down from April’s 2.6%. Adjusted for rising prices, spending increased 0.45 in May after no change in April.
Edward N. Wolff, an economist at NYU, analyzed 18 years of household financial data collected by the Federal Reserve. From 1983 to 2001, the net worth of the median older household- the one at the midpoint of the economic ladder- declined 2.2% or $4,000, during the period to $199,900. Wolff stated that, based on economic growth and market conditions over those 18 years, their wealth “should be up around 30 or 40 percent.” Countless American workers have relinquished part of a pension by moving from one job to another over the past two decades, and many plans have been eliminated due to cost cutting measures. In 1985, about 115,000 American companies had traditional pension plans. As of last year, only about 31,000 did.
Washington Mutual stated its mortgage business might lose money in 2004. The company cut its earnings forecasts for this year and remarked that more job cuts can be anticipated.
Monday, June 28, 2004
6/28/04 Looting
Allen W. Smith, author of "The Looting of Social Security: How The Government Is Draining American's Retirement Account," states the looting continues on a daily basis, and every cent of the $1.5 trillion in Social Security surpluses generated by the 1983 Social Security tax, has been used up on non-Social Security purposes.
Most of the financial sector will be focused on the Fed meeting. As I have often stated, the Fed looks to Wal-Mart for information about the consumer. Wal-Mart reduced their same-store sales forecast for June from a 4 to 6% rise to a 2 to 4% increase. When you are talking about annual sales approaching $300 billion, a 2 percent monthly reduction amounts to a great deal of money. The company said again that results for Father's Day were disappointing. Predictions had been made that a decline in sales for the entire nation would be down from the prior year's Father's day. Wal-Mart is far and away the best indicator for the consumer on Main Street. Wall Street is not paying very close attention. They will regret their non-concern. This is not business as usual.
Japan's retail sales declined 2.5% in May.
For the first time, in 2003, the OECD stated China received more foreign direct investment than the U.S. It won't be the last time.
Machiavelli: "Ne�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Allen W. Smith, author of "The Looting of Social Security: How The Government Is Draining American's Retirement Account," states the looting continues on a daily basis, and every cent of the $1.5 trillion in Social Security surpluses generated by the 1983 Social Security tax, has been used up on non-Social Security purposes.
Most of the financial sector will be focused on the Fed meeting. As I have often stated, the Fed looks to Wal-Mart for information about the consumer. Wal-Mart reduced their same-store sales forecast for June from a 4 to 6% rise to a 2 to 4% increase. When you are talking about annual sales approaching $300 billion, a 2 percent monthly reduction amounts to a great deal of money. The company said again that results for Father's Day were disappointing. Predictions had been made that a decline in sales for the entire nation would be down from the prior year's Father's day. Wal-Mart is far and away the best indicator for the consumer on Main Street. Wall Street is not paying very close attention. They will regret their non-concern. This is not business as usual.
Japan's retail sales declined 2.5% in May.
For the first time, in 2003, the OECD stated China received more foreign direct investment than the U.S. It won't be the last time.
Machiavelli: "Ne�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
6/28/04 Looting
Allen W. Smith, author of "The Looting of Social Security: How The Government Is Draining American's Retirement Account," states the looting continues on a daily basis, and every cent of the $1.5 trillion in Social Security surpluses generated by the 1983 Social Security tax, has been used up on non-Social Security purposes.
Most of the financial sector will be focused on the Fed meeting. As I have often stated, the Fed looks to Wal-Mart for information about the consumer. Wal-Mart reduced their same-store sales forecast for June from a 4 to 6% rise to a 2 to 4% increase. When you are talking about annual sales approaching $300 billion, a 2 percent monthly reduction amounts to a great deal of money. The company said again that results for Father's Day were disappointing. Predictions had been made that a decline in sales for the entire nation would be down from the prior year's Father's day. Wal-Mart is far and away the best indicator for the consumer on Main Street. Wall Street is not paying very close attention. They will regret their non-concern. This is not business as usual.
Japan's retail sales declined 2.5% in May.
For the first time, in 2003, the OECD stated China received more foreign direct investment than the U.S. It won't be the last time.
Machiavelli: "Never do an enemy a small injury."
The U.S. has turned sovereignty over to the Iraqi government. Yesterday, another soldier was killed and one Marine is held hostage. In 15 months over 800 U.S. service people were killed, thousands injured, and thousands of Iraqis killed and injured. Anyone who voted for this war has blood on his/her hands.
Anyone who voted for the Patriot Act should be voted out of office. How can you vote for legislation without reading it first?
Allen W. Smith, author of "The Looting of Social Security: How The Government Is Draining American's Retirement Account," states the looting continues on a daily basis, and every cent of the $1.5 trillion in Social Security surpluses generated by the 1983 Social Security tax, has been used up on non-Social Security purposes.
Most of the financial sector will be focused on the Fed meeting. As I have often stated, the Fed looks to Wal-Mart for information about the consumer. Wal-Mart reduced their same-store sales forecast for June from a 4 to 6% rise to a 2 to 4% increase. When you are talking about annual sales approaching $300 billion, a 2 percent monthly reduction amounts to a great deal of money. The company said again that results for Father's Day were disappointing. Predictions had been made that a decline in sales for the entire nation would be down from the prior year's Father's day. Wal-Mart is far and away the best indicator for the consumer on Main Street. Wall Street is not paying very close attention. They will regret their non-concern. This is not business as usual.
Japan's retail sales declined 2.5% in May.
For the first time, in 2003, the OECD stated China received more foreign direct investment than the U.S. It won't be the last time.
Machiavelli: "Never do an enemy a small injury."
The U.S. has turned sovereignty over to the Iraqi government. Yesterday, another soldier was killed and one Marine is held hostage. In 15 months over 800 U.S. service people were killed, thousands injured, and thousands of Iraqis killed and injured. Anyone who voted for this war has blood on his/her hands.
Anyone who voted for the Patriot Act should be voted out of office. How can you vote for legislation without reading it first?
Sunday, June 27, 2004
6/27/04 Some Miscellaneous Thoughts
According to government figures, 45% of employees had medical coverage through employers, down from 63% 10 years ago.
Ron Williams, president of Aetna: "It's fair to sya that a lot of jobs that are being created may not be the jobs that come with benefits."
Safra Catz, president of Oracle, stated that 76% of PeopleSoft's employees or 6,000 would lose their jobs should Oracle's takeover succeed.
Greyhound will close 260 stops between Chicago and Seattle and this will result in about 150 layoffs.
Rafael Sale, founder and president of National Wire Corp: "My cost for buying materials has gone up more than 130% in the last six months, but I can't pass it on to my customers because they won't buy from me if I raise the prices."
According to government figures, 45% of employees had medical coverage through employers, down from 63% 10 years ago.
Ron Williams, president of Aetna: "It's fair to sya that a lot of jobs that are being created may not be the jobs that come with benefits."
Safra Catz, president of Oracle, stated that 76% of PeopleSoft's employees or 6,000 would lose their jobs should Oracle's takeover succeed.
Greyhound will close 260 stops between Chicago and Seattle and this will result in about 150 layoffs.
Rafael Sale, founder and president of National Wire Corp: "My cost for buying materials has gone up more than 130% in the last six months, but I can't pass it on to my customers because they won't buy from me if I raise the prices."
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