Stock Preacher

Happy 4th of July from all your friends over here at StockPreacher!

Popularity: 1% [?]

There’s been a fundamental change in people’s behavior in the USA that will affect the economy for years to come. US Government data delivered last Friday showed that the household savings rate rose to 6.9% in May, the highest since December 1993, as personal spending increased less than incomes. The rate in April 2008 was zero. Most of the rise in income in May was due to one-time government stimulus payments to seniors, said Nigel Gault chief US economist at IHS Global Insight in Lexington, Massachusetts. Americans’ newfound frugality is pinching airlines such as Chicago-based UAL Corp., which is cutting staff amid dwindling demand for leisure travel. Donations to charities dropped last year for the first time since 1987, and they’re in danger of declining further in 2009. US banks are benefiting. Deposits grew 1.7 % in May, the ninth-biggest monthly rise since 1973.

Popularity: 1% [?]

US consumer spending in May rose for the first time since February, and savings hit a record high as federal stimulus measures boosted incomes, bolstering the view that the economy was close to emerging from recession. US consumer sentiment also edged higher this month to its strongest since February 2008. Consumer spending, which accounts for more than 70% of US economic activity, rose 0.3% in May, the Commerce Department said last Friday. The department also revised up April’s figure to un-changed from a small decline previously. Personal income jumped 1.4% last month, propped up by social benefit payments from the government’s massive economic stimulus. The US$ extended losses vs. the Euro as the data reduced safe haven demand for the “Greenback”.

Popularity: 1% [?]

Personal income in the US surged in May thanks to an infusion of government stimulus funds, while consumers raised their spending modestly as confidence about the state of the economy continues to improve. Most of the monthly rise was the result of Federal benefit transfers and lower taxes. Americans, still facing rising job cuts and falling home prices have been saving most of the additional funds, lifting the savings rate to a 16 yr high in May. “Households are reverting to a more sustainable spending path vis-à-vis income that allows scope for paying down debt and adding to savings,” said Joshua Shapiro, chief US economist at MFR. Official figures showed last Friday that incomes jumped by 1.4% last month, or US$167.1B, beating economists’ expectations and doubling the previous month’s revised rise of 0.7 %. Personal consumption expenditure rose by 0.3% or US$25.1B last month, in line with estimates, and a rebound from April’s pull-back.

Popularity: 1% [?]

Ford Motor Co will receive nearly US$5.9B in US government loans to spur development of more fuel-efficient vehicles, the Obama administration said last Tuesday. Japan’s Nissan Motor Co Ltd will receive US$1.6B, and start-up Tesla Motors Inc will receive US$465B in advanced technology financing from the Energy Department program. “By supporting key technologies and sound business plans, we can jumpstart the production of fuel-efficient vehicles in America,” Energy Secretary Steven Chu said at Ford headquarters. “These investments will come back to our country many times over by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions,” he said. The agency plans additional loans over the next several months to automakers and suppliers. Chu said the administration began talks with Chrysler Group LLC on possible energy technology loans immediately after the company stepped out of bankruptcy protection this month. It is also having “technical” discussions with General Motors Corp, which is currently reorganizing in bankruptcy proceedings. Both companies applied for financing last year but their financial distress disqualified them from consideration in the first round of financing. The US$25B program is only open to viable (real) companies.

Popularity: 1% [?]

The United States is making a serious effort to increase the amount of electricity that’s generated by wind turbines grouped into wind-power “farms.” Attempts to harness the wind are part of a broader national, and global, commitment to “green” energy sources as a way of reducing dependence on Crude Oil and other fossil fuels for power generation. i.e Natural Gas and Coal. Other power sources include solar, geothermal, hydroelectric and nuclear for commercial electricity production, while automakers are looking at new types of batteries and such innovations as power-storing “fuel cells” as alternatives to the conventional internal combustion engines that power most of the world’s cars and trucks. The objectives are twofold. By decreasing the US reliance on foreign Crude Oil, the country is hedging against the time when global supplies of the “black gold” begin to dry up, an eventuality that will propel the prices of crude and gasoline skyward. Diversifying away from Crude Oil and, perhaps, even coal is also a way of reversing, or slowing, environmentally ruinous global warming. US President Barack Obama is attempting to use the ongoing financial crisis to create a sense of urgency about America’s energy future, a challenge that no prior administration has yet been able to meet. About one-third of President Obama’s US$800B + stimulus package will go to infrastructure, with US$30B allocated for US roads and highways and another US$10B earmarked for railways and mass-transit systems. President Obama has also proposed spending US$150 B “over the next 10 yrs to catalyze private efforts to build a clean energy future.” The administration also proposes to increase the amount of electricity that comes from renewable resources from 10% in 2012 to 25% by 2025 as reported in January 2008 in the WS-J.

Popularity: unranked [?]