Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Mon 04.28.2008
Gold rises as record crude raises inflation concerns Gold futures rose on Monday after the crude-oil contract neared $120 a barrel, raising the metal's appeal as a hedge against inflation. Gold for June delivery gained $6.80, or 0.8%, to $896.50 an ounce on the New York Mercantile Exchange. Crude futures rose overnight to a new record high of $119.93 a barrel in electronic trading. "Metals could not help but notice the explosive move in crude," said Edward Meir, an analyst at MF Global, in a research note. "We expect commodities in general to remain firm at least through to midweek, as the strong energy complex sets the tone, while the weakness in the dollar should also help."
OPEC President Says $200 Oil Possible OPEC President Chakib Khelil does not rule out oil prices reaching $200 a barrel, even though supply is adequate, because the market is driven by the dollar's slide, Algerian government newspaper El Moudjahid reported on Monday. "Questioned about a possible rise which would go to $200, the minister did not rule out this eventuality, explaining that this rise is indexed from now on to the fall in the dollar or to the rise in the dollar," El Moudjahid reported. "In terms of fundamentals, stocks are high, demand is easing, supply is satisfactory. Therefore normally, without geo-political problems and the fall of the dollar, the prices of oil would not be at this level," he was quoted as saying.
Warren Buffett Calls Recession Warren Buffett of Berkshire Hathaway has been on CNBC this morning discussing his Wrigley's bid this morning. Interestingly enough this interview was more of a general discussion about the current economic climate and strategy since he said, "We are in a recession." The call in the last few minutes also noted that the classic definition of a recession being negative GDP for two consecutive quarters and a 0.1% growth may keep the classic definition from being there. He also noted that the National Bureau of Economic Research is the one who officially calls the classic recession, and that definition is far different "from the man in the streets." He also noted that the current trade policies will weaken the dollar, although he noted how he was also surprised that inflation hasn't been higher from commodity costs. Warren Buffett also said he thinks this will deeper and longer than many people think.
UBS set for major job cuts totaling 8,000 posts UBS AG is set to lay off roughly 8,000 employees, Swiss weekly Sonntag reported Sunday without citing sources. UBS wasn't immediately available for comment. UBS has already disclosed it will cut jobs, and pledged details on May 6, when it reports first-quarter earnings. Thus far speculation has centered on UBS' loss-making investment bank, which has been hit by over $37 billion in subprime writedowns. Sonntag reports the bank will also cut jobs across the bank, mainly back-office and administration roles.
There goes the neighbourhood: mortgage crisis sees suburbs slump As the banks foreclose on loans across the US, worried householders watch their tree-lined streets change. Susan McDonald doesn't look like an activist. She drives a nice car, wears smart clothes and appears to be the embodiment of the neighbourhood personal banker she is during office hours. But after work McDonald has another life. It is then that the mother of three turns into a neighbourhood organiser, determined to mobilise her community to battle for a way of life that many believe is in peril. McDonald is a self-confessed suburbanite and president of the Franklin Reserve Neighbourhood Association, a new development in the city of Elk Grove, 15 miles south of the California capital, Sacramento.
Many Houses, Not Enough People As we look at the "Vacantvilles"- those communities at the far reaches of the metro areas- where foreclosures and walk-aways number more than sales, it’s hard not to wonder, "What will become of all these empty homes if buyers don’t show?" It’s not a program without its problems, but other cities are looking at Youngstown’s decision to "embrace downsizing". Youngstown is demolishing older neighborhoods- it’s hard to look at spanking new communities with their greenbelts and community centers and picture them being bulldozed. High gas prices and low demand however, are blighting some of these communities as surely as lost jobs have hurt inner cities in the midwest. In many instances, abandoned homes are becoming targets for crime and vandalism. As in Youngstown, cities have to provide services to under-occupied areas.
Chrysler LLC puts two axle plants up for sale Chrysler LLC has placed two Michigan axle plants on the block as part of its effort to develop a leaner business model, The Wall Street Journal reported Monday, citing people familiar with the matter. The Auburn Hills, Mich. automaker has valued its Detroit and Marysville plants at $400 million, and has already approached axle suppliers Dana Holding Corp. and American Axle & Manufacturing Holdings Inc. over a possible deal, the Journal reported. The offer has sparked little interest, however, as any deal would require the buyer to work out a labor deal with the United Auto Workers at the Detroit plant, the newspaper said.
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