Economy

A&A

Dow 41,000?

Are you ready to run with the bulls into the next decade? According to author and prognosticator Harry S. Dent, you should be. In his latest book, "The Roaring 2000s Investor: Strategies for the Life You Want," Dent predicts the current stock-market boom will continue into the first decade of the new millennium and could take the Dow as high as 35,000 to 41,000 at the top of the boom. After the boom, Dent sees a long period of recession or depression beginning around 2009.

Oct 11 1999

145

Unemployment Rate Falls to 30-year Low

The U.S. Labor Department just released its September unemployment statistics, marking a 30-year low with the rate of 4.2 percent. Overall, the nation's jobless rate has stayed below 4.4 percent since March 1999.Also released were figures regarding the number of payroll jobs, which fell in September by 8,000 positions. The number of positions typically is affected by a major change either in the economy or another sort of large populations-affected change like a natural disaster.

Oct 10 1999

112

Consumer Installment Credit Skyrockets in August

People were shopping 'til they dropped in August, according to the Federal Reserve. The Fed reported that total consumer installment credit increased $10.8 billion to $1.36 trillion in August, marking the strongest monthly increase in seven months.

Oct 8 1999

114

3rd Quarter Earnings Expected High for Selected Industries

CPAs either employed by, or working in, energy, financial and technology companies will want to take note: analysts predict earnings in these three industries are expected to hit a four and one-half year high at the end of 3rd quarter 1999.Overall, companies in the Standard & Poor's 500 will grow earnings by 22 percent. Although it may seem that analysts sometimes use crystal balls to foretell earnings potential, there are definitive reasons for the increases.

Oct 5 1999

97

Fed Says "No" to Raising Interest Rates

For the time being, short-term interest rates will remain the same at 5.25 percent. In a much anticipated announcement, the Federal Reserve Bank said Tuesday that, although it would not raise rates, it indicated that rates may indeed rise should inflation occur.Also unchanged was the discount rate, which will remain at 4.75 percent. The discount rate is used by the Federal Reserve's 12 district banks who provide direct loans to banks and financial institutions.Should rates have risen, this would have been the third time in 1999.

Oct 5 1999

93

Federal Reserve Bank Advises Banks to Continue Strict Lending Practices

In a supervisory letter delivered Tuesday to banks across the United States, the Federal Reserve Bank advised banks against the practice of easing up on their lending practices due to the inordinate number of weak loans in recent transactions.The Fed commented that optimism on the part of banks, along with continued growth in the economy, contributed to this mindset.

Sep 28 1999

110

Budget Surplus of $115 Billion Larger Than Expected

The 1999 fiscal-year budget surplus weighed in at $115 billion, much larger than the $99 billion surplus analysts predicted over the summer. The announcement was made by President Clinton on Monday.Clinton asked Republicans to band together with him to determine how best to use the surplus.

Sep 27 1999

139

August Retail Sales Beat Economists' Forecasts

A report issued by the Commerce Department Tuesday revealed good news for the U.S. economy, but may lead to another hike in interest rates later this year.The government said that retail sales increased 1.2 percent in August, the strongest sales gain since February 1999. Analysts had forecasted a 0.8 percent increase for August.Auto sales took the lead and increased 2.5 percent. New car sales are now up 19 percent compared to August 1998.

Sep 15 1999

117

Female Execs Call for Increased Amenities in Hotels and Airlines

Female executives make up 40 percent of business travelers, and in an effort to find ways to cater to this expanded audience, hotels, airlines and other service businesses are instituting many changes to traditional services that have, for years, been geared to men.According to a survey released in September by New York University and Wyndham Hotels and Resorts, female executives want and desire more services amenities.

Sep 14 1999

177

Consumer Confidence Rated High in Annual ABC News/Money Magazine Poll

The annual ABC News/Money magazine poll reported this week that almost three-fourths of Americans said the U.S. economy is strong, a mark just shy of a previously reported all-time high in confidence.

Sep 10 1999

141

Cutting Debt is Key Component to Tax Cuts

The debate on tax cuts continued to rage when Treasury Secretary Lawrence Summers said this week that reducing the Federal debt was the only way to continue maintaining a strong economy.Although it is widely expected that President Clinton will veto the recommended $697 billion tax cut passed by Congress last month, Summers believes that reducing debt is important to a tax cut for families because a reduction lowers interest rates while increasing investments.

Sep 10 1999

144

Strong Global Economy Moves Bank of England to Raise Rates

Strong economic conditions and global demand were cited as key factors in the Bank of England's decision to raise Britain's short-term interest rate on Wednesday. The Central Bank's Monetary Policy Committee (MPC) raised Britain's short-term rate by 0.25 percent, moving it from 5.00 to 5.25 percent.The nine member MPC is said to have based their decision on rising retail sales, continued housing price increases and favorable labor market conditions. Various independent surveys reviewed by the committee reported marked increases in economic confidence measures.

Sep 9 1999

162

Federal Reserve See Hints of Inflation

Although talk of inflation was in the air as Alan Greenspan and Federal Reserve Governor Laurence Meyer spoke at separate functions on Wednesday, both declined to comment on the future outlook of interest rates.Greenspan, who gave a presentation at Grand Valley State University in Grand Rapids, Mich., avoided the topic of interest rates and focused instead on the importance of education and technology in keeping the global economy strong.

Sep 9 1999

165

Latest News in Washington: Congress Ponders Tax Changes

Before the year is out, taxpayers can rest assured that changes to the tax scenario once again will occur ..

Sep 7 1999

201

Pay For Performance Increases In The Year 2000

Employees looking to line their pockets with green better step up their performance in 2000. According to Hewitt Associates Salary Increase Survey, salary increases will be moderate - ranging from 4.4 percent for executives to 3.9 for non-union hourly workers.Conversely, the survey finds variable compensation plans will increase by 16 percent. Companies funneling money into pay for performance programs find their fixed costs don't expand with rising salaries; self-funding performance awards are paid as company goals are realized.

Sep 7 1999

140

Independent Audits' Effectiveness Surveyed by Public Oversight Board

More than 500 persons and organizations familiar with auditing or affected by an audit will be sent confidential questionnaires regarding the effectiveness of independent audits in protecting investors' interests.

Sep 3 1999

259

Pay Gap Widens Between Management and Workers

The sixth annual survey by the Institute for Policy Studies and United for a Fair Economy today reported that the pay for top corporate executives versus an average production worker last year reached a gap of 419 to 1.The survey, A Decade of Executive Excess," also cited that the gap compares to a 1980 sum of 42 to 1. If the pay for workers had risen at the same pace as executives, the organization says the average production worker would today earn $110,000 annually.

Aug 30 1999

206

Technology

Inter@ctive Week Launches Research to Rank E-commerce Companies

A ranking of the top 500 revenue-generating private and public companies on the Internet soon will be available. More than 1,600 companies are currently being surveyed in the most comprehensive research project of its kind.Inter@ctive Week is conducting the research in conjunction with the Massachusett's Institute of Technology's Sloan School of Management and Ernst & Young.

Aug 30 1999

199

Technology

Regions Outside of the U.S. Have Greatest E-Commerce Potential

Regions located outside of the United States have the greatest potential for e-commerce growth according to research conducted by International Data Corp. (IDC). The IDC Report revealed that nearly 60 percent of the world’s online audience is located outside of the United States, with this group expected to generate almost 46 percent of global Internet spending by 2003.IDC’s research showed that e-commerce is strong in Western Europe where the adoption of the Euro is said to be increasing Internet sales.

Aug 29 1999

264

Easing Economic Growth Reported for Solid Third Quarter

Good news for the economy: the U.S. Commerce Department reported today that U.S. economic output increased 1.8 percent in the second quarter of 1999. The increase is due, in part, to the rise in imports and smaller business inventories. Although these figures were down from the 2.3 percent first reported last month, they remained in line with the expectations of economists.

Aug 27 1999

173

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