Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Haim R. Branisteanu who wrote (17864)	12/7/2004 9:56:21 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

ECB´s Issing says US twin deficits unsustainable Tuesday, December 7, 2004 9:33:28 AM afxpress.com ECB's Issing says US twin deficits unsustainable FRANKFURT (AFX) - European Central Bank chief economist Otmar Issing said the US twin current account and budget deficits are unsustainable and the US is well aware of this "This is an imbalance, which cannot be sustained, and the Americans know this very well," said Issing in an interview with Slovenian newspaper Delo A copy of the interview was published by the ECB Issing reiterated ECB president Jean-Claude Trichet's description of the euro's recent sharp rise against the dollar as "brutal and therefore unwelcome", but he declined to comment on the possibility of foreign exchange market intervention He said euro zone inflation, currently 2.2 pct, is still too high, but the ECB will do everything necessary to bring it back below its 2.0 pct price stability ceiling "The euro area inflation rate is too high at present, influenced strongly by the oil price increases. We will do everything we can to bring inflation back below 2 pct in the medium term," he said [What a lie. Exactly how are they going to influence the price of oil, other than by not growing perhaps. If he says inflation is too high and "everything" will be done, they they should raise rates. - mish] But he said the ECB decided to leave interest rates unchanged last week because it remains optimistic about the inflation and growth outlook [ottimistib about inflation and growth! yeah right. Now they sound like Greensoan - mish] "It is true that the outlook for growth has been revised downwards. But, the positive message is that growth is expected to continue. While the short-term outlook for inflation has deteriorated in the context of oil price increases, our assessment of price developments over the medium term remains positive "Accordingly, the governing council decided to leave the key ECB interest rates unchanged at their historically low levels," he said Issing said a number of current euro zone countries are setting a bad example to new EU members in eastern Europe by running high budget deficits "Certainly, at present, there are quite a number of 'old' member states that are not giving good examples to the 'new' member states. There is no doubt about that. Fiscal policies in quite a number of countries are a matter of strong concern," he said [Shazaam - Did we find Rumsfeld's replacement? A better choice for Sec of state of the US? mish]

To: Haim R. Branisteanu who wrote (17864)	12/7/2004 10:01:30 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

World oil prices are at near-record highs, and Mexico is pumping and exporting more crude than ever before. The country is the world's seventh-largest oil producer and one of the top three suppliers to the U.S., up there with Canada and Saudi Arabia. Yet state oil monopoly Petróleos Mexicanos (Pemex), a giant with $55.9 billion in revenue, is hardly thriving. Indeed, in recent years the company has only been able to make ends meet through massive borrowing, so that it now owes a staggering $42.5 billion, including $24 billion in off-balance-sheet debt. Why? Because Pemex is the Mexican government's cash cow. The state-run company pays out over 60% of its revenue in royalties and taxes, and those funds pay for a third of the federal government's budget. If oil prices drop or there are no major new discoveries of crude, that could spell big trouble for Pemex -- and Mexico's finances. businessweek.com

To: Haim R. Branisteanu who wrote (17864)	12/7/2004 10:06:21 AM
From: mishedlo	Respond to of 116555

Weekly retail chain store sales decline by 1.7 pct Tuesday, December 7, 2004 1:00:55 PM afxpress.com WASHINGTON (AFX) -- Retail chain store sales declined by 1.7 percent for the week ending December 4, according to the International Council of Shopping Centers (ICSC) -UBS Weekly Chain Store Sales Index released Tuesday. On a year-over-year basis, however, the sales pace gained by 3.3 percent. ICSC chief economist Michael Niemira said this holiday season is following the same pattern seen last year -- a moderate start with softness the week following. Niemira said this could mean the consumer will increase their holiday spending over the next few weeks to finish the season on the strong side. For December, ISCS expects sales to grow by 3.5 percent to 4.0 percent on a year-over-basis