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To: steve harris who wrote (196547)	8/3/2004 12:27:21 AM
From: tejek	Respond to of 1583509

do you burn oil in your car? gas prices have been coming down..... So what? It doesn't matter how much lower gas prices go; crude is still killing this economy.

To: steve harris who wrote (196547)	8/3/2004 12:22:44 PM
From: tejek	Respond to of 1583509

Oil prices hit new high Mark Tran Tuesday August 3, 2004 Motorists were today told to expect petrol prices to remain above 80p a litre for the "foreseeable future" as oil prices soared to a new high. Oil prices reached record levels for the second day in succession as the price of a barrel of crude in New York broke through the $44 (£24) mark to peak at $44.24. Today's jump in prices was sparked by comments from the Opec president, Purnomo Yusgiantoro, who said oil prices were at "crazy" levels, but added that the oil cartel could do little to ease pressure on them. "The oil price is very high - it's crazy. There is no additional supply," Mr Purnomo told reporters in Jakarta. guardian.co.uk

To: steve harris who wrote (196547)	8/3/2004 12:37:48 PM
From: tejek	Respond to of 1583509

"GM, which had a near record-high number of unsold vehicles at the end of June, was scheduled to announce its July U.S. sales results later on Tuesday." ********************************************************** GM sets new U.S. sales incentives** DETROIT, Aug 3 (Reuters) - General Motors Corp. said on Tuesday it was now offering cash rebates totaling up to $2,500 on some of its 2005 model vehicles, in another escalation of Detroit's incentives war. The world's largest automaker also cut the basic cash rebate on most of its 2004 model cars and trucks by $500, to $3,500 and $4,500 respectively, GM spokeswoman Deborah Silverman said. Customers financing their purchase of a 2004 model through GM's finance arm would also be eligible for an additional "bonus cash" offer of between $500 and $1,500, Silverman said. The bonus cash program varies by region of the country and by model, she said. But in some cases, consumers could get a total cash rebate of up to $6,000 on vehicles from the 2004 model year. The basic rebate on most 2005 cars and trucks, which are just now making their way into dealership showrooms, is $1,000. Model year 2005 Cadillacs and Hummers have no cash rebate incentives, she said. But on a limited number of number of 2005 models, she said customers financing through General Motors Acceptance Corp. could walk away with a rebate totaling $2,500. Like its cross-town rival Ford Motor Co. , GM has been struggling with an aging vehicle lineup, which requires more profit-eroding discounts to sell. 08/03/04 10:22 ET Copyright 2004 Reuters Limited.

To: steve harris who wrote (196547)	8/3/2004 12:40:39 PM
From: tejek	Read Replies (1) \| Respond to of 1583509

U.S. consumer spending drop biggest since 9/11 By Tim Ahmann, Reuters WASHINGTON, Aug 3 (Reuters) - U.S. consumer spending in June took its biggest plunge since September 2001 as shoppers, sapped by high energy costs, cut back sharply on car purchases, a government report showed on Tuesday. Personal spending dropped 0.7 percent in June after climbing 1 percent in May, according to Commerce Department data. Wall Street had braced for a mild 0.1 percent drop. Adjusted for inflation, spending tumbled 0.9 percent. By both measures, it was the biggest drop in consumer spending since September 2001, when shoppers retrenched in the wake of the attacks on New York and Washington. U.S. stock markets opened lower, prices for U.S. government bonds got a lift and the dollar slipped after the report, which was seen as bolstering the case for the Federal Reserve to move cautiously as it raises interest rates from multi-decade lows. "The second quarter was a kind of disappointment and a lot of that has to do higher energy prices. That zapped some of the demand from the economy," said George Mokrzan, chief economist at Huntington Financial Group in Columbus, Ohio. Many economists are confident the economy has already begun working its way out of a spending soft spot, but a renewed rise in oil prices could throw up an economic hurdle. U.S. light crude hit $44.24 a barrel before retreating on Tuesday, the highest price since oil futures were launched on the New York Mercantile Exchange in 1983. Another report suggested the U.S. labor market recovery was struggling to gain momentum. Outplacement firm Challenger, Gray & Christmas said employers announced 69,572 job cuts in July, up from 64,343 in June, but down 18 percent from a year ago. Rick Cobb, executive vice president at the firm, said the upcoming U.S. elections and sputtering economic growth seemed to be making employers hesitant to hire. HOLE IN THE POCKET? The report on consumer spending showed incomes up a tepid 0.2 percent in June, a slowdown from May's 0.6 percent gain. After inflation and taxes, the meager income gain left consumers no better off than they had been a month earlier. The department said disposable income rose 0.2 percent, but was unchanged when inflation was taken into account. Wages, which had risen 0.6 percent in May, were unchanged in June, the weakest reading since December. In gross domestic product data released on Friday, which incorporated Tuesday's figures, the department had said consumer spending grew at a 1 percent annual rate in the second quarter, the slowest pace since the 2001 recession. Economists said the spending slowdown, which put the brakes on overall economic growth, largely reflected weak auto sales. Tuesday's report showed spending on expensive, long-lasting manufactured goods -- like autos -- plunged 5.8 percent in June, after a 3.7 percent increase a month earlier, on an inflation adjusted basis. SALES TO DRIVE HIGHER? Economists think auto sales rebounded smartly last month and automakers have recently stepped up their buyer incentives. General Motors Corp. said on Tuesday it would offer cash rebates of up to $2,500 on some of its 2005 model vehicles. U.S. automakers are set to report on July sales later on Tuesday, which could provide a clearer picture of how much consumer spending has snapped back. "Our early indications suggest unit auto sales and other consumer activity bounced back quite solidly, and July might represent one of the largest gains in consumer spending in many months," said Steve Wieting of Citigroup Global Markets. The Commerce report showed inflation moderated in June, with the price index for consumer purchases up just 0.2 percent after a 0.4 percent increase in May. Excluding volatile food and energy costs, inflation rose a scant 0.1 percent for the second month in a row. Fed officials are set to meet next Tuesday and are widely expected to raise overnight interest rates by a quarter-percentage point to 1.5 percent, the second step in what they have said should be a "measured" rate-rise campaign. Other reports on Tuesday showed U.S. chain stores sales up from year-ago levels. The International Council of Shopping Centers and UBS said in a report that sales rose 0.2 percent last week, matching the prior week's rise and up 3.1 percent from a year ago. A separate report from Redbook Research showed sales at major retailers increased 3.9 percent last week from year-ago levels, but July sales were down 0.1 percent from June. 08/03/04 11:47 ET Copyright 2004 Reuters