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

To: Knighty Tin who wrote (14830)	11/4/2004 1:13:57 PM
From: mishedlo	Respond to of 116555

Trichet says no sign yet of wages rising due to oil price surge Thursday, November 4, 2004 5:38:07 PM afxpress.com FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet said there is no sign yet of wages rising in response to the surge in oil prices He said it is vital that such "secondary" inflation effects are avoided "We do not have the feeling that we are observing, very fortunately, at the present moment, what i would call secondary effects," Trichet told an ECB news conference "Wage increases have remained limited since the last quarter of 2003, and this trend is expected to persist in the context of ongoing moderate growth and weak labour markets," he said. In Germany there is even a trend towards pay freezes, such as Volkswagen AG's agreement yesterday with the IG Metall union. Trichet said German labour costs are in "slow motion" because of the country's need to increase cost competitiveness, particularly after the increase in costs resulting from reunification While there is no sign of second round inflation effects from the oil price rise, it has already had a direct effect on inflation by boosting the energy prices component of the harmonised index of consumer prices And it could also have indirect inflation effects if producers pass on price increases to consumers, he said "The oil price shock may feed through the economy and generate further indirect effects, as indicated by developments in producer prices," he said Trichet also said that some moderation appears to be taking place in global growth after the strong recent expansion But he added: "Euro area exports should continue to benefit from positive global demand conditions in 2005." And in the euro zone investment should be supported by the global environment, very favourable financing conditions, improved earnings and greater corporate efficiency, he said He said scope exists for private consumption to strengthen, particularly once labour market prospects improve more visibly On money supply, Trichet said the downward trend in annual M3 growth appears to have come to a halt in recent months "These developments reflect the stimulative effect of the historically low level of interest rates in the euro area on monetary expansion," he said Credit demand remains strong, with the growth rate of loans for house purchase continuing to rise and now approaching double digits and other loan demand also picking up.

To: Knighty Tin who wrote (14830)	11/4/2004 3:56:31 PM
From: mishedlo	Respond to of 116555

Bush plans ambitious agenda for second term Bush pledged to reach out to Democrats and those who voted against him but said that he would not hesitate to push forward legislation without their cooperation "I earned capital in the campaign, political capital, and now I intend to spend it. It is my style," Bush told reporters at the Eisenhower Executive Office Building in his first post-election news conference fxstreet.com ============================================= Translation: Stand back, I am going to cram this down the throats of anyone that has a differing opinion. "It is my style". I will reach out to you as long as you see it my way. If not, I have proven time and time again a willingness to go it alone. We are off and running just like "contract with america". Whatever happened with that anyway? Mish