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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (4136)	4/12/2004 12:16:34 PM
From: mishedlo	Read Replies (3) \| Respond to of 116555

FEDERAL RESERVE On the record: Robert Parry sfgate.com

To: yard_man who wrote (4136)	4/12/2004 12:28:41 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

U.S. 10-Year Treasuries Fall in Asia After Fed's Parry Says Rates May Rise bloomberg.com The benchmark 10-year note fell for the sixth day in seven in New York on investor concerns that higher rates would make yields on existing securities less attractive. The central bank's benchmark interest rate is 1 percent. Inflation erodes the value of fixed-income payments. ``The seeds of inflation have been sown and now it's just a matter of time before rates start moving up,'' said Gregory Hahn, chief investment officer at 40/86 Advisors Inc., with $26 billion in fixed-income assets under management, in Carmel, Indiana. The consumer price index, minus food and energy, rose 0.2 percent in March from the month before, according to the median estimate of 61 analysts surveyed by Bloomberg News. The Labor Department will release the report on Wednesday. The index is on track to rise 0.6 percent in the first three months of this year, compared with 0.7 percent for the second half of 2003. ``The decline from the March highs'' in Treasury prices ``started after two stronger-than-expected core CPI numbers,'' said Mark Mahoney, head of interest-rate strategy at UBS Securities LLC in Stamford, Connecticut. ``It's obviously very important to the market.'' The gain of 308,000 U.S. jobs in March is no reason to move up forecasts for a Fed rate increase, according to most of Wall Street's largest bond dealers. Of the primary dealers surveyed by Bloomberg News last week, 12 predicted the Fed will boost rates this year, the same as in a March 15 survey. ``The Fed will only act when it sees a clear improvement in the labor market,'' said Hiroki Itoh, who helps manage the equivalent of $1.5 billion of bonds and equities at Cigna International Investment Advisors Co. in Tokyo. ``One or two months of strong data is not enough of a reason to make any changes.'' The Fed will probably hold its target for overnight bank lending at 1 percent until the fourth quarter or early next year, Itoh said. ===================================================================== Certainly lots of conflicting views Mish

To: yard_man who wrote (4136)	4/12/2004 12:46:55 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

DuPont to cut 3.500 jobs in restructuring By Michael Baron NEW YORK (CBS.MW) -- DuPont said it plans to cut 3,500 jobs, or 6 percent of its workforce, as part of restructuring plan. The reduction excludes any actions involving its Invista unit. About 3,000 of the positions are expected to be eliminated through severance programs with the remainder of the cuts coming from normal attrition. The Wilmington, Del., chemicals firm will also eliminate 450 contractor positions. DuPont added that it's on track for its goal to improve its annualized cost structure by $900 million in 2005. The company expects to record a restructuring charge of 17 to 19 cents per share in the second quarter, largely from employee severance costs.

To: yard_man who wrote (4136)	4/12/2004 2:19:17 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Fed's McTeer says unconcerned about inflation By Greg Robb WASHINGTON (CBS.MW) -- There are no concerns about inflation emerging even as the U.S. economy is growing "on all cylinders," said Robert McTeer, the president of the Federal Reserve Bank of Dallas. "I am not worried about the inflationary implications yet of the very rapid growth in the economy that we have had in recent months," McTeer said Monday in an interview on the CNBC cable business news channel. "We've got a very healthy economy right now with good growth, job creation, and inflation still under control," McTeer said. He added that some commodity prices are rising "as they have to do to allocate resources properly." Asked if this benign economic outlook meant the Federal Open Market Committee could hold rates steady into next year, McTeer said he would go no further than the March 16 FOMC statement that said the FOMC could afford to be patient. McTeer said he expected job growth to continue, but not at the March level of above 300,000 new jobs.

To: yard_man who wrote (4136)	4/12/2004 2:20:48 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Citigroup spending $122 mln for call center in India (C) By Steve Gelsi NEW YORK (CBS.MW) -- Citigroup (C) said it'll pay about $122 million for the portion of a call center in India that it doesn't already own, the Associated Press reported on Monday. The center handles outsourcing contracts from Citibank, the retail banking unit of the financial conglomerate. Citigroup will own all of E-Serve International Ltd., up from a 44 percent stake. The acquisition will provide "increased operational flexibility," Citigroup said without elaborating. The deal comes a week after IBM Corp. announced a $150 million acquisition plan for Daksh eServices, one of India's leading call center firms. Shares of Citigruop added 47 cents to $52 in recent trades. ======================================================== I meant to post this stuff on my board but accidentally posted it on Russ's Copied here Mish