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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 (19184)	12/21/2004 10:25:19 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

german job cuts One out of three German companies plans further job cuts in 2005 Tuesday, December 21, 2004 3:00:12 PM afxpress.com FRANKFURT (AFX) - One out of three German companies plans to cut jobs in 2005, according to a study conducted by the Ifo research institute for tomorrow's edition of WirtschaftsWoche magazine Only 15 pct of companies participating companies said they hope to increase the number of employees next year

To: Knighty Tin who wrote (19184)	12/21/2004 10:33:16 AM
From: mishedlo	Respond to of 116555

Brown´s projections for UK public finances too optimistic Tuesday, December 21, 2004 3:06:22 PM Brown's projections for UK public finances too optimistic LONDON (AFX) - The IMF warned today that government projections for UK public finances may be too optimistic and "measures" may be required if the UK Treasury is stay within Chancellor Gordon Brown's self-imposed rules of fiscal discipline. While the IMF stopped short of recommending any specific measure, many already believe the required adjustment will come in the form of tax hikes once the general elections, expected next year, are over. "The (UK's) fiscal position deteriorated substantially in recent years, and questions are emerging about how and when the necessary correction will take place," the IMF said in a statement Going by Brown's forecasts of both government revenue and spending, the UK's net borrowing requirement will fall to 1.5 pct of GDP over the medium term - the level consistent with stabilising net debt below 40 pct of GDP "Our central forecast, however, is for lower revenue growth, reflecting mainly slower real GDP growth in 2005 and a less pronounced rebound of corporation tax revenue over the medium term," the IMF predicted "On these projections, the net borrowing requirement will fall only to 2.5 pct of GDP and measures to close the gap vis-a-vis the PBR forecast will be needed," it added If the IMF's predictions are closer to the eventual outcome, Brown will be in danger of breaking his self imposed rule that debt should be kept below 40 pct of national income But the IMF said it is still likely that both this rule and the 'golden rule' which allows borrowing only for investment purposes will be met in the current cycle However, without early adjustment in the gap between revenue and spending, a relatively weak initial current balance in the next cycle could weaken confidence in the rules, the IMF cautioned forexstreet.com ============================================================== It is obvious, to me anyway, that Brown's optimistic lies are based on the upcoming election. I have no love affair with the IMF but this report seems accurate enough. Mish