High Oil Prices are Stinging Abroad - 02/18/2005

The recent econ contractions in Germany, Italy and Japan challenge the widespread perception that the world's major industrialized econs are able to shrug off high oil prices and cast a shadow overtheir prospects in 2005. In each of these countries persistently high oil prices colliede with an already fragile econ suffering from the reluctance of consumers to spend. The drag of oil prices was enough to tip all 3 from low growth into negative growth in the last quarter...lower global rowth than last year is likel to damp exports...that combination means the weker industrial econs will need a significant improveent in employment and consumer spending to resume their recovery.

US Profits Jump, But Slower Growth Could Be Looming - Feb 17 2005

US corporate profits psted a strong finish to strong year, but there are signs of slower growth ahead.
Net income rose 27% in the 4th q. among 1600 companies tracked by Dow Jones. Including th 15% rise in the 3rd q. and the second q's 40% surge, corporate profits have enjoyed a two-ear upswing that has helped to keep the US econ expansion rolling. "This has got to be among the best profit recoveries ever"...profit margins have remained healthy as companies find less-expensive ways to meet growing demand through olabor-saving tech and take other steps...such as refinancing their debt to take advantage of low interest rates.
For the broader econ, this strong performance means companies have the resources to invest in new equipment as seen by the surge in captial equipment buying during the past year - and expand into new markets.
"Total consumer spending has risen 1. trillion over the last two years...but wages and salariees have risen only $520 billion during that time. Ron Wexler at Merrill Lynch

Stagnation in EU points to deficient Investment - Feb 16 2005

In recent months, the main stumbling block to a sustained recovery in Europe has been the reluctance of companies to invest and hire workers despite rising profits as a result of recent restructuring and buoyant exports to the rest of the world. German companies, in particular, have been slow to invest at home, despite their success in sellin machine tools and cars to Asia and North America recently.

Germany, Italy Post Drop in GDP as EU Stumbles - Feb 16, 2005

Europe's long struggle towrd ecn recovery hit a surprise setback after Germany and Italy published unexpected declines in gdp for the last q. 2004. Germany contracted 0.2% in the 4th quarter. Italy's shrank 0.3%. The Netherlands also shrank by 0.1%...
The German stats office blamed weak domestic demand for the contraction in German gdp, saying exports had performed well despite the strong euro.

Manufacturing's Fortunes Tied to Exports - Oct 25 2004

US manufacturing output has finally returned to prerecession levels thanks in part to rising demand for exports. That is the good news. The bad is that export growth has slowed and industries such as autos are expected to curb production in coming quarters, prompting economists to wonder whether or how long output will remain at these new high levels. Exports of industrial machinery are up54% this year, engines and power equipment 20%, and specialized machinery 16% according to Commerce Department. Exports are growing in scientific instruments, aerospace equipment, car parts and toys.