Economic News

[Fivetears]

UPS battered by retail weakness
Shares in UPS plunged nearly 16 per cent in early trading on Tuesday after the package delivery group reported disappointing second-quarter earnings and warned of a worsening economic outlook for the remainder of the year. UPS and other express delivery groups are viewed as important economic bellwethers because of their increasingly central role in global supply chains. Express delivery groups such as UPS and FedEx have enjoyed several years of rapid expansion on the back of soaring global trade and increasing demand for just-in-time services. But Tuesday's results and guidance from UPS triggered a sell-off throughout the US freight transportation sector in expectation of slower growth.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=FT&Date=20060725&ID=5893459

 

[Fivetears]

Consumer Confidence Inches Up
WASHINGTON - The mood of U.S. consumers improved slightly in July, the Conference Board said Tuesday. The consumer confidence index rose moderately to 106.5 in July from a revised 105.4 in June. The rise was unexpected. Economists had forecast the index to slip to 103.9 from the initial June reading of 105.7, according to a survey conducted by MarketWatch.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060725-000624-1137

 

[Fivetears]

Existing Home Sales Take Modest Dip
WASHINGTON -Sales of existing homes in the U.S. decreased in June, the National Association of Realtors said Tuesday. Home resales fell to a 6.62 million annual rate, a 1.3% decline from May's revised 6.71 million annual pace. May resales were originally seen at 6.67 million. NAR chief economist David Lereah said the housing market is flattening out. The median home price increased to $231,000, compared with a revised $229,000 in May. Existing home sales were mixed in the four regions of the U.S. Demand fell 2.3% in the South and 3.5% in the Northeast. Sales were flat in the Midwest and in the west.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060725-000520-1029

 

[Fivetears]

Number of Americans Working on Vacation Doubles
NEW YORK — The number of Americans who work during their vacations has nearly doubled in the last decade, with the laptop computer replacing the cellular phone as the most useful tool for working on holiday. Some 43 percent of office workers said they work on vacation, compared with 23 percent in a survey taken in 1995, said the poll conducted for Grand Rapids, Michigan-based Steelcase Inc., a designer and maker of office furniture. Overall, roughly one in four employees said they spent three or more hours working during vacation. Most said they were committed to the job or had a pressing assignment, while 10 percent cited an inability to relax until things were taken care of.
http://www.foxnews.com/story/0,2933,205518,00.html

 

[Fivetears]

S&P / Case-Shiller Indices Show Average U.S. Home Prices Continuing to Rise
NEW YORK - Data released today by Standard & Poor's for its S&P/Case-Shiller(R) Home Price Indices, the leading measure of U.S. home prices in the United States, shows a continuing increase in average home prices from April to May, despite fears of a slowing residential real estate market. According to Standard & Poor's data, U.S. home prices rose an average of 0.4% from April to May, making its year-over-year gain 9.7% from May 2005.
http://news.moneycentral.msn.com/ca...894486&topic=TOPIC_ECONOMIC_INDICATORS&iSub=3

 

[Fivetears]

Survey: Inflation May Eat Up Gains in Pay
NEW YORK — The bad news: this year will be another year of modest pay increases. The worse news: inflation might eat up those gains. The only good news may be that workplace standouts might eke out bonuses and other cash incentives from employers. Companies are relying less on salary increases and more on incentives like year-end bonuses to retain employees without boosting fixed costs, a new survey said Thursday. U.S. employers are planning to increase base salaries by 3.7 percent this year, just a bit higher than the average 3.6 percent rise they granted in 2005, according to a survey by Mercer Human Resource Consulting.
http://www.foxnews.com/story/0,2933,205975,00.html

 

[Fivetears]

Sales of New Homes Decline in June
WASHINGTON - Sales of new homes fell in June for the first time in four months, and the government also lowered figures for May, providing further evidence the high-flying housing market is losing altitude. The Commerce Department reported Thursday that new home sales dropped by 3 percent last month to a seasonally adjusted annual sales pace of 1.131 million units. It was the first decline since an 11.5 percent drop in February. The government also marked down sales activity in May to a pace of 1.166 million units, substantially below its initial estimate of 1.234 million units. Analysts pointed to the drop in sales last month and the downward revision for May as fresh evidence that housing was slowing considerably from the impact of higher mortgage rates.
http://biz.yahoo.com/ap/060728/economy.html?.v=2

 

[Fivetears]

Home sellers sweeten deals
The proportion of home builders who are dangling goodies to buyers — from free swimming pools to granite kitchen counters to vacations — is the highest in at least seven years. The reason was made vividly clear Thursday, when the Commerce Department said new-home sales fell a sharp 3% from May to June. To drive sales, 75% of builders are now offering some kind of incentives to attract buyers, up from 50% who did so last year, according to the National Association of Home Builders. "These builder-developers understand the solution to the slowdown to the market is to quickly liquidate their inventory," says Ron Peltier, CEO of HomeServices of America. Now the incentive war among builders is spilling into the market for existing homes. In what may be a nascent trend, a few homeowners are starting to lure buyers with the promise of exotic trips, new cars and higher commissions for their agents.

• In Newport Beach, Calif., Paul and Sandra Findly cut the price of their home by $41,000, to $1,549,000, but they still weren't getting offers. So Paul Findly decided to offer two round-trip tickets to Hawaii to the buyer and two tickets to the buyer's agent.

http://www.usatoday.com/money/economy/housing/2006-07-27-new-homes_x.htm

 

[Fivetears]

Airfares soar as planes fill up
Soaring jet fuel prices and rising traveler demand are driving high airfares even higher. Fares for flights departing in the USA rose a record 10.3% in the first quarter of 2006 from a year ago, according to data released by the Department of Transportation on Wednesday. And Delta Air Lines — in a move likely to accelerate the trend — raised most domestic fares by $5 one way, bringing the highest coach seat price in its simplified fare structure to $504, and $704 for first class. "It's not good for consumers," says Ray Neidl, an analyst at Calyon Securities. But it's better than "if you've got a bunch of bankrupt airlines."
http://www.usatoday.com/money/biztravel/2006-07-26-airfares-usat_x.htm

 

[Fivetears]

Chicago City Council approves living wage for big-box retail
CHICAGO — The City Council brushed aside warnings from Wal-Mart to approve an ordinance that makes Chicago the biggest city in the nation to require big-box retailers to pay a living wage. The ordinance, which passed 35-14 Wednesday after three hours of impassioned debate, requires mega-retailers to pay wages of at least $10 an hour plus $3 in fringe benefits by mid-2010. It would only apply to companies with more than $1 billion in annual sales and stores of at least 90,000 square feet. The minimum wage in Illinois is $6.50 an hour and the federal minimum is $5.15.
http://www.usatoday.com/money/industries/retail/2006-07-27-chicago-bigbox_x.htm

 

[Fivetears]

Aging grids cited in blackouts
The nation's power system may be showing its age. Recent heat wave-related blackouts in California and New York are at least partly being blamed on creaky transformers, circuit breakers and cables. And smaller outages in cities such as Detroit, Chicago and Houston will be investigated to see if aging parts played a role, says Stan Johnson of the North American Electric Reliability Council. Low investment in interstate transmission lines could lead to more regional blackouts, such as the one that hit the Northeast in August 2003. The trends show the need to pump more money into the power grid to meet demand, federal officials say. That would mean higher consumer rates. "There is a need to spend more," says Gerry Cauley, vice president of standards for the reliability council. Southern California Edison already planned to spend $7 billion by 2011 on upgrades, and may seek further rate increases for extra transformers, Senior Vice President Ron Litzinger says. New rules allowing utilities higher returns should spur construction. Yet, local regulators may be loath to clear rate increases for other upgrades with rates in some states soaring, Johnson says.
http://www.usatoday.com/money/industries/energy/2006-07-27-power-grid-usat_x.htm

 

[Fivetears]

Growth slows, prices up in second quarter
WASHINGTON - U.S. economic growth slowed abruptly during the second quarter to less than half the pace seen at the beginning of the year, while a key gauge of inflation accelerated, the Commerce Department said on Friday. The sharp slowdown raised expectations that the Federal Reserve might halt its two-year-old campaign of interest-rate rises, and fueled a broad-based rise in bond prices on hopes a rate rise pause was near. Slower consumer spending, especially on costly durable goods like new cars, was a key reason. But export growth also slowed, government spending was weaker and housing investment turned down.
http://news.yahoo.com/s/nm/20060728/bs_nm/economy_dc_1

 

[Fivetears]

U.S. Economy Slows; Inflation Heats Up
WASHINGTON - The economy's growth slowed sharply in the second quarter, logging just a 2.5 percent pace as consumers tightened their belts and spending on home building suffered its deepest cut in nearly six years. Inflation, however, shot up. The latest snapshot of gross domestic product released by the Commerce Department on Friday showed that the overall pace of economic activity in the April-to-June quarter was about half that of the January-to-March quarter, when the economy zipped along at a 5.6 percent annual rate, the fastest in 2 1/2 years. The 2.5 percent pace was the slowest since a 1.8 percent growth rate in final quarter of 2005, when the economy was suffering fallout from the devastating Gulf Coast hurricanes. An inflation gauge closely watched by the Federal Reserve showed that core prices -- excluding food and energy -- jumped by 2.9 percent in the second quarter -- far outside the Fed's comfort zone. That was up from a 2.1 percent increase in the first quarter and marked the highest inflation reading since the third quarter of 1994, when core inflation rose by 3.2 percent. The inflation reading was taken before the latest run-up in energy prices. Oil prices hit a record closing high of $77.03 a barrel on July 14. Gasoline prices also have marched higher, topping $3 a gallon in many areas. Although Federal Reserve Chairman Ben Bernanke said he is concerned about rising inflation, he told Congress last week that the Fed believes moderating economic activity will eventually lessen inflation pressures.
http://www.nytimes.com/aponline/business/AP-Economy.html?ref=business

That means... when we stop buying stuff, stores will have to lowers prices to move goods.
Mr. Bernanke, kind Sir; This hasn't worked since the day I was born; July 28, 1962.

x 1962
• Average Income - $5,556.00
• New Home - $12,550.00
• New Car – $2,924.00
• Gallon of Milk - $1.04
• Gallon of Gas - $0.28
• Loaf of Bread - $0.21

 

[Wheels]

Happy Birthday FT.

Dave
<><

 

[nnuut]

Hey, FT Happy Birthday. This is my brothers Birthday except he was born in 1948.:worried:

 

[Fivetears]

Thanks Guy's.

 

[Fivetears]

House vote raises minimum wage
WASHINGTON - The House of Representatives voted on Saturday to give some of the lowest-paid American workers their first raise in nearly a decade, while also handing a big tax cut to some of the wealthiest. The House in the early hours voted 230-180 to raise the $5.15-per-hour minimum wage in three 70-cent steps until it reaches $7.25 in mid-2009.
http://news.yahoo.com/s/nm/20060729/bs_nm/congress_wage_taxes_dc_7

 

[Fivetears]

More States Add Sales Tax Holidays
Thirteen states and Washington, D.C., have sales tax holidays pegged to back-to-school shopping. Tennessee, Alabama and Virginia are new this year, and Maryland is offering a tax break again for the first time since 2001. The other sales tax holiday states are Connecticut, Florida, Georgia, Iowa, Missouri, New Mexico, North Carolina, South Carolina and Texas. New York, the first state to offer a sales tax holiday in 1997, ultimately made a sales tax exemption on clothing and shoes under $110 permanent in April.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060729&ID=5906673

 

[Fivetears]

This week's heavy economic agenda

On Monday - a reading of regional manufacturing activity known as the Chicago PMI. The National Association of Purchasing Management-Chicago's index, or the Chicago PMI, is expected to show that business activity in the U.S. Midwest expanded again, but at a slower pace, according to economists polled by Reuters. They see the July index at 56 vs. 56.5 in June.

On Tuesday June data on personal income and personal consumption, or spending, will be released. The Reuters forecast: Personal income, up 0.6 percent in June, and personal consumption, up 0.4 percent in June. All eyes will be on the core Personal Consumption Expenditures Index, known as the core PCE Index, which is one of the Fed's most closely watched inflation measures. The core PCE Index is seen up 0.2 percent in June, according to the Reuters poll. The core reading excludes volatile food and energy prices. The Fed and the markets "will be looking at core PCE and the average hourly earnings component of the payrolls report," said Chan of JPMorgan.

Also on Tuesday - U.S. domestic car and truck sales for July, as well as the Institute for Supply Management's July index of U.S. manufacturing activity.

On Thursday -ISM's July index of U.S. non-manufacturing, or services, activity, and June factory orders.

On Friday - U.S. nonfarm payrolls report for July. The U.S. economy likely added 150,000 jobs in July, up from 121,000 in June, according to economists polled by Reuters. The unemployment rate is pegged at 4.6 percent in July, the same as in June. Average hourly earnings probably rose 0.3 percent in July, the Reuters poll showed, after a 0.5 percent gain in June.
http://news.yahoo.com/s/nm/20060730/bs_nm/column_stocks_outlook_dc_1

 

[Fivetears]

U.S. Economy Cools As Consumers Pull Back
The U.S. economy slowed sharply in the three months ended in June, expanding at less than half its pace earlier this year, as consumers and businesses hunkered down in response to climbing inflation and interest rates. Consumers spent more on gasoline while pulling back on purchases of houses, automobiles and many other items. Businesses slashed their spending on housing construction and on equipment and software, while hiring more cautiously at a time of uncertainty over how much the economy will cool.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/28/AR2006072800408.html