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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (43403)	6/15/2006 8:57:17 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68364

The Best of Today's Business by Yahoo! Finance and The Week A Ghost Returns, China Taps the Brakes by Harold Maass Utility Links Printable ViewEmail this PageThursday, June 15, 2006 NEWS AT A GLANCE Stagflation fears grow Some economists warn that the U.S. could be hit with stagflation -- rising prices in a languishing economy. New data showed a slightly higher-than-expected jump in core consumer prices, as high fuel costs pushed up prices of other goods. And expensive oil could keep prices rising, even as the Federal Reserve tries to curb inflation by raising interest rates to slow the economy. "We're headed for tragedy here," said University of Maryland professor Peter Morici. (Los Angeles Times, free registration required) Others disagreed, saying the economy is stronger than it was in the 1970s, the last time stagflation struck. "The idea that we are in danger of stagflation is absurd," said economist and author David M. Jones. (The New York Times, free registration required) China clamps down China's central bank today said that it would curb the country's money supply to keep the economy from overheating. The announcement came after an unexpected 30 percent jump in manufacturing and real estate investment. "We will remove the firewood from under the cauldron," said central bank Vice Governor Wu Xiaoling, "so that banks do not have the money to lend." The government has to start deflating the investment bubble now so it won't pop on its own in 2007 or 2008, said economist Julian Jessop of Capital Economics in London. (Bloomberg) Amazon's blast from the past Internet retailer Amazon.com has started selling groceries online. The move marks a cautious step into a business that nearly disappeared with the dot-com collapse of 2001, when several online grocery stores such as Webvan went bust. Amazon's service is limited to non-perishable food such as cereal and canned soup, as well as common household fare such as disposable diapers. "Groceries are something our customers have been asking for," Amazon spokeswoman Tracy Ogden said. (Reuters) War in the boardroom The second largest investor in the Tribune Company has escalated a boardroom feud by demanding the breakup of the company's newspaper and TV broadcasting businesses. The Chandler family -- former owners of the Los Angeles Times -- blasted the company's stock buyback plan as "hasty and ill-informed," and said it had lost faith in the company's management. A money manager whose firm is a big investor said the buyback was actually a "good first step" toward boosting shareholder value. (The New York Times, free registration required) BEST COLUMNS OF THE DAY Nowhere to hide It's hard to find safe havens in today's turmoil, says Michael Mandel in BusinessWeek Online. There are bubbles everywhere -- housing, commodities, emerging-market stocks. Central banks are using interest-rate hikes like "giant pins." Investors have been left asking themselves, "Which bubbles are going to pop, and which ones will prove sustainable?" It's anybody's guess. Misreading Wal-Mart "Forget Ben Bernanke," says Tom Van Riper in Forbes.com. Nothing moves markets like Wal-Mart's monthly same-store sales report. Traders always take the report as "a window" into the health of the retail sector and consumers' overall spending patterns. Recently, Wal-Mart's declining same-store sales growth has spurred selling on fears it indicated a darkening picture for Wal-Mart and the industry. But the trend really just shows the effect of Wal-Mart's strategy of opening new stores in areas that are "outgrowing one store." That practice "cannibalizes" sales at the old stores, but it boosts the company's profits in the long run. GOOD DAY FOR: Clamming up, as former New York Stock Exchange chief Dick Grasso invoked his Fifth Amendment right against self-incrimination 168 times when federal regulators last year questioned him about whether he urged traders to prop up the share price of insurance giant American International Group, according to newly released documents. (New York Post) BAD DAY FOR: Smooth rides, as a Los Angeles car dealer wants a refund for a $1.7 million, handmade Mercedes-Benz AMG CLK-GTR roadster, one of six produced in 2002. The racecar died after 10 blocks on its first customer test drive. (Los Angeles Times) NOTED: About 1.2 billion people survive on less than $1 a day. (Los Angeles Times)