Monday, March 17, 2008
Rate Cut Fodder
This is not going to help confidence.
G.17 reports industrial production dropped 0.5 in February. The decline was broadbased but led by lower utility output, which dropped 3.7. Consumer goods dropped 0.6.
Asia got its first chance to react to Bear's collapse overnight, and it reacted with broad and steep equity declines. Europe opened down as well. Siemens' announcement could not have helped. A month ago they were saying they were on track, and now:
Siemens AG, Europe's biggest engineering company, fell the most in at least 18 years in Frankfurt after saying order delays and cancellations will cut earnings by 900 million euros ($1.42 billion) this quarter.Read the whole article.
The Munich-based company fell as much as 14 percent to 68.76 euros, cutting Siemens's market value by about 10.4 billion euros. Siemens said today it reviewed the energy, transport and technology divisions and uncovered about 600 million euros in costs tied to power-plant projects alone.
As, in recommended trimming management profits vs. pink slips to workers and no earning their living.
Interesting clarifying point.
Thus far Americans are being calm about Fed.
Don't think enough people understand the sweetheart deal for the investment houses involved.
Seems most everyone and everything was speeded up. I have no problem with trimming and getting back to more basic living. (for corp. and govt. entities: reduced work hours per week, unpaid days off vs. paid holidays etc. would be better for people's quality of life and longevity.
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