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To: pallmer who wrote (6430)	3/10/2003 8:50:11 AM
From: pallmer	Read Replies (1) \| Respond to of 29602

-- GE had $5.25 bln loss on pension assets in 2002 -- NEW YORK, March 10 (Reuters) - General Electric Co. <GE.N> reported a $5.25 billion loss on its pension plan assets for 2002, as stock market declines took a heavy toll on funds invested on behalf of hundreds of thousands of employees. In its annual report filed on Friday, GE said its post-retirement benefit plans contributed $806 million to pretax earnings in 2002, down 45.5 percent from a year earlier. The big pension investment loss is 83 percent higher than the loss of $2.88 billion reported for 2001, reflecting a weak global economy and steep drops in U.S. stock indexes. The Dow Jones Industrial Average <.DJI> fell nearly 17 percent in 2002, its sharpest decline in 25 years, while the Nasdaq Composite index <.IXIC> ended the year down about 32 percent. GE's fourth-quarter earnings report, released in January, showed that its pension fund surplus fell to $5 billion at the end of 2002 from about $14 billion a year ago. GE Chairman Jeff Immelt said at the time the surplus could dwindle even more. "If the stock market performance is relatively flat, we'll have a couple of billion dollars of surplus at the end of (2003)," Immelt said on Jan. 17. GE has estimated that pensions would decrease its net income by $300 million this year. That's a far cry from previous years when income from pension plans was a solid contributor to GE's bottom line. In 2001, for example, pension income contributed $1.48 billion to pretax earnings. Fairfield, Connecticut-based GE is one of the world's most valuable companies. It earned $15.1 billion in 2002. The conglomerate, whose businesses range from jet engines to financial services, said it does not plan to make any contributions to its pension plan in 2003 or in the next five years, "so long as expected investment returns are achieved." No contributions to the pension plan have been made since 1987, according to GE's annual report. The company, whose pension plan covers approximately 508,000 participants, lowered its assumption for long-term returns on its pension investments to 8.5 percent in 2002 from 9.5 percent in 2001 and 2000. ((Reporting by Greg Cresci, Editing by Leslie Adler; Reuters Messaging: greg.cresci.reuters.com@reuters.net; 646 223-6125)) (C) Reuters 2003. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. nN10323876 Symbols: US;SPX US;GE US;SPL US;COMP US&DJI 10-Mar-2003 13:48:57 GMT Source RTRS - Reuters News

To: pallmer who wrote (6430)	3/10/2003 1:03:09 PM
From: Softechie	Read Replies (2) \| Respond to of 29602

Alan is bringing the girls to my party...12:50 ET Fed futures pricing in yet another rate cut Friday's dismal payroll report has left the futures market pricing in a Fed ease at next Tuesday's FOMC meeting. The April funds contract currently prices in 56% odds for a 25 bp ease as a few of the primary dealers have moved to that side. Briefing sees an ease bias (economic risk) the most likely response from the Fed at the Mar 18 meeting given the current neutral bias and the tremendous unknowns surrounding the Iraq situation and what will follow an attack. Ease would follow at the May meeting (if not before) if conditions worsen.