27 Jul 2007

Posted at 13:10h in The Friday Brief by
Banks and other credit issuers took it on the chin this week with growing uncertainty in the credit markets. Citibank is down over 4% for the week while the S&P Global Financials Sector Index is down 4% over the past two weeks. The news of continuing declines in housing fueled worries that the broader credit markets would be damaged by a growing rate of sub-prime mortgage defaults and foreclosures. Wednesday, the National Association of Realtors reported that existing home sales fell more than expected by 3.8% in June to a seasonally adjusted annual rate of 5.75 million units, the lowest level since November 2002. Yesterday the Commerce Department reported that new-home purchases in June fell by 6.6%, the most since January.

02 Mar 2007

Posted at 16:42h in The Friday Brief by
We start our day without even thinking about it. We take for granted that the floor will support us when we step out of bed, that clean water will pour on demand from the lavatory spout to brush our teeth, and that hot water for our shower is just moments away. Confidence is defined in numerous ways and indeed changes in the circumstances. Webster defines it as “the state or feeling of trust in or reliance upon another” (person or thing, we could add).

04 Nov 2005

Posted at 16:20h in The Friday Brief by
Indications are that a slowdown is in the cards for this quarter and for the first quarter of next year, but that does not mean recession must follow, as some more pessimistic economists suggest.  Indeed there are many reasons to expect a significant pickup.  Productivity, the driver of this powerful economy remains alive and well.  Productivity not only keeps our economy growing without inflation, it is vital for the U.S.to remain competitive in an increasingly competitive global economy.  Yesterday, the government reported that Non-farm Productivity was up a whopping 4.1% for the third quarter and well ahead of last quarter’s 2.1%.  The increase more than offset the 3.6% increase in hourly compensation, so unit labor costs fell 0.5% during the quarter.  

19 Nov 2004

Posted at 16:35h in The Friday Brief by
Stocks on average were slightly down this week and headed for the first down week in four.  Fears about inflation fanned by the Producer Price Index on Tuesday and the Consumer Price Index on Wednesday weighed on investor enthusiasm.  Mid-week, however, Housing, Industrial Production, and growth in jobs provided good news, lifting stock prices.