Tuesday, November 30, 2004
US economy set to slow under weight of oil prices
Yahoo! News |"US economic growth is set to slow to a growth rate of 3.3 percent next year as it absorbs the impact of soaring oil prices, the OECD said.
The OECD also warned that the dollar could fall because of the US current account deficit and said that the Federal Reserve did not need to rush to raise interest rates because inflation was tame. "
Monday, November 29, 2004
Wal-Mart reduces sales forecast
BBC NEWS | "Wal-Mart, the world's largest retailer, has lowered its November growth forecast amid concerns that fuel costs may slow down Christmas retail sales.
The retailer cut its November sales growth forecast for stores open for more than a year to 0.7% from its previous estimate of between 2% and 4%.
Retail analysts are concerned that high oil prices might restrain consumer spending over the festive period.
However, early signs indicated strong spending over the Thanksgiving weekend. "
Friday, November 26, 2004
Oil Up on Weak Dollar, Low Supplies
Yahoo! News | "Oil prices rose on Friday, supported by worries about low stocks of heating fuels in all major consuming regions and the dollar's slide to new lows.
London Brent gained 33 cents to $44.99 a barrel.
Trade was very thin and U.S. markets were shut for the Thanksgiving holiday after settling at $49.44 a barrel on Wednesday, around $6 off a record peak one month ago.
The latest wave of price strength was triggered by a U.S. government report on Wednesday showing heating fuel stocks in the world's largest energy consumer remained around 14 percent below last year ahead of the northern hemisphere winter.
Stocks are also low in Europe, while in Japan, winter kerosene heating stocks are seven percent below last year. "
Dollar Falls to Record Low Vs Euro
Yahoo! News | "The dollar fell to a record low against the euro on Friday and a four-year low versus the yen as traders seized on a report that China has pared down its U.S. Treasury bond holdings.
The report in Shanghai-based China Business News quoted a member of the Chinese central bank's monetary policy committee as saying the country had trimmed its Treasuries in foreign exchange reserves to $180 billion, trying to minimize losses from a falling dollar.
While skeptical of the report, market players still jumped on it as more proof the dollar's sharp slide is a long way from over, with no sign of central banks standing in the way."
Thursday, November 25, 2004
Dollar drops to new overnight low
BBC NEWS | "Despite a slight rally the dollar remained in sight of new record lows against the euro on Thursday, ahead of economic confidence data from Europe.
In New York trade overnight, the euro rose to an all-time high of $1.319, but with the US market closed for Thanksgiving there may be some respite.
The US currency's latest fall follows recent sharp declines on worries about the yawning US trade gap.
But the dollar did rally against the yen after a four-year-low of 102.56 yen.
Some analysts said concerns about yen-selling intervention by Japan had calmed for the moment. "
Wednesday, November 24, 2004
Durable Goods Orders Slip Unexpectedly
Yahoo! News | "Orders for long-lasting U.S.-made goods unexpectedly slipped 0.4 percent last month as demand for computers, cars and civilian aircraft slumped, a government report showed on Wednesday.
The Commerce Department said orders for durable goods -- big-ticket items like cars and refrigerators meant to last at least three years -- would have been much weaker in October were it not for strong military demand.
Non-defense durable goods orders dropped 1.5 percent, the sixth decline in the last seven months, and orders excluding transportation fell 0.7 percent, the department said.
Economists polled by Reuters had expected durable goods orders to rise by 0.5 percent, with non-transportation orders up 0.2 percent and orders excluding defense up 0.3 percent. "
Euro Hits Record Against Dollar
Yahoo! News "The euro soared to new highs against the dollar Wednesday, wiping out modest opening gains on European stocks, while euro zone government bonds fell after a weak Bund auction.
Gold prices remained tantalizingly close to the key level of $450 an ounce, while the yen and other Asian currencies held their own on nagging fears about possible central bank intervention to stem the dollar's slide.
'With markets thin over Thanksgiving you can't rule (intervention) out,' Elizabeth Miller, an analyst at Redtower Research said, referring to Thursday's U.S. holiday.
The euro bought a record $1.3165 and the dollar was changing hands for around 103 yen. "
Tuesday, November 23, 2004
China's central bank tells US not to blame others for economic woes
Yahoo! News | "A senior Chinese central bank official has warned the United States not to blame other countries for its own economic difficulties, a report said.
Li Ruogu, deputy governor of the People's Bank of China, also said in an interview with the Financial Times that foreign pressure would not force China to move faster on freeing up its exchange rate system.
'China's custom is that we never blame others for our own problem,' Li was quoted as saying.
'For the past 26 years, we never put pressure or problems on to the world. The US has the reverse attitude, whenever they have a problem, they blame others.'"
Monday, November 22, 2004
No deal on dollar as US shrugs off European pressure
The Independent | "Europe and Japan failed yesterday to persuade the United States to address the decline in the dollar, despite talks at a fractious meeting of the Group of 20 industrialised and developing nations.
The two camps blamed each other for the currency's fall and for failing to take action to stem it. The US refused to accept German proposals that the group should condemn volatile currency moves.
Last week, the dollar dropped to a record low of $1.3074 against the euro and to a more than four-year low to the yen at 102.67. Analysts said the absence of a co-ordinated stance among the G-20 was likely to lead to further weakening of the dollar."
Oil Over $49 on Heating Fuel, Iraq
Yahoo! News | "Oil prices rallied further on Monday, clawing back toward $50 a barrel for U.S. crude on heightened concerns over low supplies of winter heating fuels.
An explosion on of one Iraq's main southern export pipelines, cutting Iraqi supplies by about 40 percent, also supported prices. "
Snow: U.S. Deficits to Fall
Yahoo! News | "U.S. Treasury Secretary John Snow said on Sunday he assured members of the Group of 20 nations that Washington will slash deficits they blame for a falling dollar and repeated his call for stronger European growth.
He said the impact of a cheaper dollar was not a subject for discussion at the G20 talks and declined to comment on it.
'We're not going to discuss exchange rates, they weren't on the agenda,' Snow said at a press conference when pressed on the issue by reporters who had heard European complaints that big U.S. deficits were the cause of the dollar drop that threatened their recoveries.
An official communique issued at the meeting's conclusion also made no reference to currency swings though it noted that 'downside risks have increased due to oil price volatility, persisting external imbalances and geopolitical concerns.' "
Focus Shifts to Dollar and Rates
Yahoo! News "The post-election stock market rally has been rudely interrupted by the implications of a sliding U.S. dollar, higher interest rates, the U.S. current account deficit and Friday's rebound in oil prices. "
Friday, November 19, 2004
US leading indicators reveal sluggish economy: Conference Board
Yahoo! News | "The US economy is 'losing steam,' the Conference Board said, reporting that the index of US leading economic indicators fell 0.3 percent in October, marking the fifth straight decline. "
House votes to raise US debt ceiling
Yahoo! News | "House votes to raise US debt ceiling: "The US House of Representatives voted to raise the debt ceiling by 800 billion dollars, helping Washington avoid running short of operating funds.
By a party-line vote of 208 to 204, lawmakers agreed to increase the level of the US debt to nearly 8.2 trillion dollars, the third massive debt limit increase in as many years.
The vote comes one day after the US Senate, also on a party-line vote, approved a similar measure.
Democrats in Congress "
Friday, November 12, 2004
Paring US budget deficit should be top priority: economists
Yahoo! News | "Trimming the record US budget deficit should be the top economic priority for the second term of President George W. Bush, a survey of economists showed.
A Wall Street Journal survey of 55 economists showed more than half felt the budget deficit would be the biggest economic challenge for the second term of the Bush administration.
The deficit -- which hit a record 413 billion dollars in the just-ended fiscal year -- was placed ahead of social security, health care and tax reform in the survey. "
Stocks Soar as Oil Falls
Yahoo! News | "U.S. stocks rallied on Thursday as oil prices resumed their retreat and pushed the S&P 500 to a three-year high, with tech shares lifted by Microsoft Corp. and online marketplace eBay Inc.
A sharp drop in oil prices to below $48 a barrel eased some concerns about the impact of high energy costs on corporate profits. "
Wednesday, November 03, 2004
Oil Jumps Over $50
Yahoo! News | "Oil prices rallied back above $50 a barrel on Wednesday as President Bush (news - web sites) edged close to election victory, raising the prospect of continued high U.S. fuel demand and anxiety over Middle East supplies. "
German retail sales continue to stagnate in third quarter
Yahoo! News | "Retail sales in Germany, which account for around 20 percent of gross domestic product, continued to stagnate in the third quarter, boding ill for the long-hoped for pick-up in domestic demand in the eurozone's biggest economy. "
