Friday, January 30, 2004
US Gross Domestic Product 4th quarter: 4%
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.0 percent in the fourth quarter of 2003, according to advance estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 8.2 percent.
Gross Domestic Product News Release
Interest rates on low hold, deficit on dangerous slide
by Daan Diederiks
The US Federal Reserve decided on Wednesday not to change the basic interest rate and keep it on 1%.
The Federal Open Market Committee (FOMC) said in the statement accompanying the decision that it vowed "to be patient" to raise the rate in the future.
Previously, the Committee had said it would keep interest rates low for a "considerable period".
This change was interpreted by the market as a possible rise of the basic rate , probably before the autumn election period. Although many Democrats think the Fed has a Republican bias, economists hold that the Fed wants to keep away from being accused of mingling into politics. Therefore it has never changed rates after august in an election year.
On the related issue of the budget deficit the New York Times has called upon Mr Greenspan to do just that; get involved in the political debate.
The nonpartisan Congressional Budget Office has warned against a rising budget deficit, especially when the Bush administration wants to make the tax cuts permanent. The NYT must have a gloomy view on the ability of the Democrats changing the economic policies of the Bushies. According to Paul O'Neill, the former secretary of the Treasury, is the Fed Chairman very worried about the consequences of the tax cuts on the deficit. Calling it "Alan Greenspan's duty" to intervene is saying that the Democrats are politically impotent. And they better not be.
A number of economists are warning against a permanent budget deficit. In Holland professor Flip de Kam even predicted a Krach in autumn 2004 as a result of the growing loss of confidence in the American economy because of the budget deficit.
In the United States itself it is former Clinton aide Robert Rubin who warns in a Brookings Institution paper against long term budget deficits.
"Thus, in our view, to ensure healthy long-run U.S. economic performance, substantial changes in fiscal policy are needed to deal preemptively with the risks stemming from sustained large budget deficits and the economic imbalances they entail. The political system, however, seems unwilling to address the threat posed by future deficits and to make the necessary choices to put the nation on a sustainable fiscal course. Failing to act sooner rather than later, though, only makes the problem more difficult to address without considerable instability, raises the probability of fiscal and financial disarray at some point in the future, and runs the risks of further constraining policy flexibility in the future."
Not only will the budget deficit effect the largest economy of the world, but because it is the largest economy of the world negative consequences of the budget deficit will effect the world economy at large.
The beginning of this month, the IMF warned already against the deficit and was worried over the slide of the dollar.
President Bush is gambling on an enormous scale. Maybe the New York Times is right calling onto the one God left in this world, the God of interest rates, to start sobering up the 'no more taxes' hungry rich of the US before it is to late.
+ BBC NEWS | Business | Fed keeps interest rates on hold
+ Market Place: On Presidential Politics, the Fed Walks a Tight Rope
+ Alan Greenspan's Duty
+ Sustained Budget Deficits: Longer-Run U.S. Economic Performance and the Risk of Financial and Fiscal Disarray
+ BBC NEWS | Business | Does the US budget deficit matter?
+ BBC NEWS | Business | US deficit may pose 'global risk'
Wednesday, January 28, 2004
Oil Prices Slip Further (washingtonpost.com)
Oil prices slipped further from 10-month highs Wednesday, undermined by weak markets for gasoline and heating fuel, but forecasts that data due later in the day would show shrinking U.S. oil supplies gave some support.
Oil Prices Slip Further (washingtonpost.com)
Tuesday, January 27, 2004
Cisco Chief Calls Productivity New Engine of Wealth
Cisco chief Chambers visited the Davos conference last week and predicted a Hugh increase in productivity. The increase should make up for the job losses in Europe and the US to emerging IT markets like India and China.
To keep jobs governments play a vital role.
"The jobs over time will go to the best-educated places with the best infrastructure and the most supportive governments," Mr. Chambers said. "How you create an environment where the jobs stay is going to be a key element."
Cisco Chief Calls Productivity New Engine of Wealth
Record US Deficit in '04 forcasted by Congress Budget Office
The Congressional Budget Office predicted on Monday that the federal budget deficit would hit a record $477 billion this year and that accumulated deficits over the next decade would total $1.9 trillion.
The nonpartisan budget office's outlook for the long term is significantly more pessimistic than it was just one year ago. It casts new doubt on the ability of President Bush to fulfill his promise of cutting the deficit in half over the next five years, particularly if he persuades Congress to make his tax cuts permanent, which he has vowed to do.
New York Times
'A New Kind of Workforce' Emerges
The jobless growth in the US might be explained by the growing number of freelance self employed workers.
'A New Kind of Workforce' Emerges (washingtonpost.com)
EU's mind 'made up' on Microsoft
Microsoft could soon be facing multi-billion euro fines and other sanctions for breaking European competition law.
The European Commission has finished drafting its decision in the case it brought against the software giant.
BBC NEWS | Business | EU's mind 'made up' on Microsoft
Aventis rejects Sanofi bid as "Inferior"
Sanofi CEO Jean-Francois Dehecq in a presentation to investors and journalists stressed the urge to create a French drug giant or risk being swallowed by foreign rivals.
Aventis immediately rejected the offer as being to little. Aventis suggested it might seek another bidder.
The French Government is said to favor the takeover by Sanofi.
New York Times
Monday, January 26, 2004
BusinessNOW Videos Possible Cancer cure from Genemax
Genemax has develloped a cancer vacine with the help of Crucell.
BusinessNOW Videos
World Economic Forum - Webcasts
World leaders in politics and business shared their views on the present state of the world in the annual "World Economic Forum" at Davos, Switzerland.
Former President Clinton opened the forum with an impressive lunch speech on an integrated world.
His main theme is the inability of the world community to handle disasters like Aids, because "the world is not organized systematically to deal with the fact that we are globally interdependent."
World Economic Forum - Webcasts
BBC NEWS | Business | Sanofi-Synthelabo launched a hostile bid for Aventis
France's two biggest pharmaceutical firms could merge to make a company big enough to become the second biggest firm in the drug business.
France's market watchdog says Sanofi-Synthelabo has launched a hostile bid for larger Franco-German rival Aventis.
Sanofi's offer, widely predicted by media and analysts, values Aventis at 48.5bn euros.
A successful bid might mean a firm big enough to outstrip GlaxoSmithKline of the UK, trailing only US giant Pfizer.
BBC NEWS | Business | Bid to create French drug giant
Euronext: Crucell Announces 2003 Annual Results
Dutch biotechnology company Crucell N.V. (Euronext, NASDAQ: CRXL) today announced its 2003 financial results. Crucell’s revenues for the year ended December 31, 2003 were € 7.4 million (US$ 9.3 million) compared to € 9.6 million (US$ 12.0 million) for 2002. A significant up-front fee from a commercial contract signed in December 2003 is not included in revenue, but is deferred and will be recognized as revenue in future years. Total deferred revenues at December 31, 2003 were € 13.8 million (US$ 17.4 million) compared to € 6.0 million (US$ 7.6 million) for 2002.
The net loss in 2003 was € 23.4 million (US$ 29.4 million), compared to € 55.7 million (US$ 70.0 million) in 2002, which included a goodwill impairment charge of € 30.9 million (US$ 38.9 million). In 2003, research and development expenses and selling, general and administrative expenses were below 2002 expense levels. Cash used during the year amounted to € 23.4 million (US$ 29.5 million) compared to € 9.6 million (US$ 12.1 million) in 2002. At December 31, 2003 cash and cash equivalents stood at € 87.2 million (US$ 109.7 million).
Chief Financial Officer Leon Kruimer commented: “The Company has successfully made the transition from a research and technology-focused organization to an organization fully dedicated to bringing innovative products to the market. Our recent agreement with Aventis Pasteur to jointly develop influenza vaccines frees up additional resources for our other in-house programs. During the last year we have increased our investment in preclinical studies across our core programs, and are now gearing up to enter the clinic.”
Euronext: Crucell Announces 2003 Annual Results
Friday, January 23, 2004
Making Germany fit for the future
"Services sector will lead the way, but requires stronger industrial base"
F.A.Z. - English Version:
Biotech holds out much promise
Germany has already established itself as leader in the European field.
F.A.Z. - English Version
Thursday, January 22, 2004
Conservative Republicans Push for Slowdown in U.S. Spending
The soaring deficit start some conservatives asking if the Dick Cheney quote "After Reagan deficits don´t count" is a responsiblee attitude. Bushed vowed an austere budget, but its not enough, reports the NYT.
Conservative Republicans Push for Slowdown in U.S. Spending
Aventis and Sanofi-Synthélabo set for a merger
The German Handelsblatt reports that the French Aventis and the German firm Sanofi-Synthélabo are about to merge.
If the merger goes through than the new combination will be the second largest after the US firm Pfitzer, with a total stock market value of 85 billion Euro.
Handelsblatt.com: Pharmakonzerne Aventis und Sanofi wollen fusionieren
Monday, January 19, 2004
USATODAY.com - Biotech puts Silicon Valley on road to recovery
The next big thing: Biotech?
USATODAY.com - Biotech puts Silicon Valley on road to recovery
VALLEY JOB TREND: BIOMEDICAL
Thursday, January 15, 2004
Crucell Signs PER.C6™ License Agreement with Biogen Idec
(15/01/04 08:00 CET)
Dutch biotechnology company Crucell N.V. (Euronext, NASDAQ: CRXL) announced today that it has signed a non-exclusive PER.C6™ technology research and commercialization license agreement with Biogen Idec, Inc. for the production of recombinant proteins to be used in in-house antibody discovery programs. Biogen Idec is one of the top three biotechnology companies in the United States.
Under the terms of the agreement, Crucell will receive upfront and annual payments, as well as royalties on net sales of products discovered using the PER.C6Ô technology in Biogen Idec’s in-house discovery program. Further financial details were not disclosed.
Euronext news Crucell
BBC NEWS | Business | Parties switch sides on Budget gap
The BBC US business correspondent Stephen Evans on the mounting budget deficit and the change of minds of what used to be called left and right. The spending and taxing left worries about the deficit. The Bush right wing hawks raise the deficit for their own purposes. Does that make a sensible economic policy?
BBC NEWS | Business | Parties switch sides on Budget gap
Wednesday, January 14, 2004
Intel Fourth-Quarter Revenue Of $8.74 Billion At Record Level
Fourth-Quarter Earnings Per Share $0.33; EPS Includes $0.09 Goodwill Impairment Charge and $0.09 Tax Benefit on Divestitures
SANTA CLARA, Calif., Jan. 14, 2004 - Intel Corporation today announced fourth-quarter revenue of $8.74 billion, up 12 percent sequentially and up 22 percent year-over-year. Fourth-quarter revenue was slightly higher than the previous record of $8.73 billion set in the third quarter of 2000.
Fourth-quarter net income was $2.2 billion, up 31 percent sequentially and up 107 percent year-over-year. Earnings per share were $0.33, up 32 percent sequentially and up 106 percent from $0.16 in the fourth quarter of 2002.
Full-Year Results
Revenue for 2003 was $30.1 billion, up 13 percent from $26.8 billion in 2002. Net income was $5.6 billion, up 81 percent from $3.1 billion in 2002. Earnings per share were $0.85, up 85 percent from $0.46 in 2002.
Intel Fourth-Quarter Revenue Of $8.74 Billion At Record Level
Tuesday, January 13, 2004
Google Buzz over IPO
Competition in search market. An overview article in the Washington Post.
Google Fans Fill Web With Buzz Over IPO (TechNews.com)
Can the economy stand a bad government?
Paul Krugman of the NYT has a new weapon against the Bush government; the just published book by the former Bush treasurer Paul O´Neill.
According to O´Neill the administration does not waste any time on policy debates and rules the statement by the vice President, Dick Cheney, that "Reagan proved deficits don't matter."
O´Neill doubted the Bush policy as; "irresponsible fiscal policy." It is a criticism from within the administration, not from looney left.
Can the economy thrive on the clientilistic Bush economic policies? Can the stockmarket see with confidence toward the future with such gamble policies? And will the American public remain confident in its President and his policies?
In short is it true that deficits don´t matter?
Op-Ed Columnist Krugman: The Awful Truth
Monday, January 12, 2004
Aventis
Aventis Pasteur is a leading European vaccine maker that has a 58% market share in flu vaccines.Euronext - Equities > Stocks> Aventis
Crucell
Crucell is a promising biothech firm. Last week they closed a deal with Aventis. Aventis wants to use Crucell technology to produce vacins. For sock market overview go to: Euronext - Equities > Stocks > Crucell.
Friday, January 09, 2004
