The Conference Board of Canada says its consumer confidence index fell again this month, losing 2.9 points to 71.
The think-tank’s latest poll, conducted between Nov. 6 and Nov. 13, found the largest one-month decline on record for consumer sentiment in the Prairie region. Confidence also sagged in British Columbia, Ontario and Quebec, but edged up slightly in Atlantic Canada.
Conference Board economist Paul Darby says consumer sentiment "has fallen to depths previously reached only in 1982 and 1990, which were both periods of recession in Canada."
Darby notes that "ongoing troubles in equity markets undoubtedly had a negative effect on consumers’ view of their family financial situations and future job prospects in their communities businesscards."
He did find one area of optimism: 25.9 per cent of those polled said now is a good time to make a major purchase, up slightly from October, which Darby said "may indicate that the slide in the index is bottoming out."
The Conference Board poll claims a 95 per cent likelihood of being accurate within 2.2 percentage points.
NEW YORK–Morgan Stanley's stock price plunged again Thursday as the investment bank scrambled to strike a major deal or raise more cash that will assuage investors and prevent more damage to its free-falling shares.
John Mack, the No. 2 U.S. investment bank's chief executive, has reached out to China's Citic Group overnight about a possible investment, according to a person familiar with the talks. Morgan Stanley is also considering a combination with retail bank Wachovia Corp. and an investment from Singapore Investment Corp., one of the world's biggest sovereign wealth funds, said the person, who spoke on the condition of anonymity because the discussions were still ongoing,
Morgan Stanley shares have fallen 38 percent in the past week amid unprecedented turmoil in the global banking system. Investors remain anxious after Lehman Brothers filed for bankruptcy protection, Merrill Lynch & Co. was forced into a sale to Bank of America Corp. and the federal government bailed out insurer American International Group.
Mack made telephone calls late Wednesday to Wachovia executives and also to Citigroup Inc. CEO Vikram Pandit, exploring all options to help restore confidence in the investment house, the person said. Citigroup was not interested in a tie-up, but talks remain ongoing with Wachovia, he said.
Wachovia declined to comment about a potential deal, while Citigroup confirmed that Mack and Pandit spoke.
Spokesmen for GIC and Citic could not immediately be reached for comment.
Mack isn't the only CEO looking to strike some kind of a deal or capital infusion fast cash loans. Washington Mutual Inc., which has lost billions and seen its shares plummet due to subprime mortgage exposure, is selling itself or looking for a deep-pocketed investor.
And overnight in London, Britain's Lloyds TSB Lloyds TSB announced a $21.85-billion deal to take over struggling HBOS PLC, Britain's biggest mortgage lender.
The U.S. government, which helped organize an $85 billion bailout of insurer AIG on Tuesday, also sought to break the grip of worsening global credit crisis by pumping billions into financial markets in a concerted action with central banks of other countries. The Federal Reserve Bank of New York, in two operations, injected $55 billion into temporary reserves in the United States, a move aimed to help ease a strained financial system in danger of freezing up.
The move helped steady Wall Street after the previous session's massive rout. However, market participants still moved into safe assets such as gold and Treasury bills, a sign that they remain skittish during the most troubling period for the world's financial system in most investors' memory.
American International Group Inc, thrown a $20 billion lifeline by New York state, came under renewed pressure on Tuesday as ratings agencies downgraded the insurer’s debt and the financial sector meltdown spread.
Fears that AIG, once the world’s largest insurer by market value, could be the next financial giant to tumble fuelled worries about the potential fallout.
“If AIG tanks, that will be the big one. AIG has more to do with the oil price right now than the Saudis do,” said Larry Grace, an energy analyst at Kim Eng Securities in Hong Kong.
Asian share markets, many of them closed for a holiday on Monday, tumbled as investors absorbed the weekend’s dramatic events on Wall Street, where Lehman Brothers filed for bankruptcy protection and rival Merrill Lynch agreed to be sold to Bank of America for $50 billion.
Big European markets were seen opening around 3 percent lower.
Shares in AIG plunged nearly 61 percent on Monday and the U.S http://easy-quick-payday-loans.com. Federal Reserve hired investment bank Morgan Stanley to review options for the firm, a person familiar with the situation said on Monday. AIG has lost 92 percent of its value this year.
British bank Barclays Plc, which over the weekend pulled out of rescue talks for Lehman, was reported by the Wall Street Journal to be in talks to buy large portions of Lehman.
“We do not comment on market rumors,” said Angie Tang, a Barclays spokeswoman in Hong Kong.
The average retail price of a gallon of gasoline in Texas jumped nearly 7 cents this week, despite oil and gas producers reporting little damage from Hurricane Gustav.
According to AAA-Texas, Houston continues to have the cheapest gas in the state at $3.44 a gallon, up 4 cents from last week, with Galveston-Texas City close behind at $3.45 a gallon, an increase of 3 cents from last week.
The nationwide average for a gallon of gas is up 1 cent to $3.68.
“Since Gustav caused minimal damage or disruption to oil production, the price spike appears to be short-lived,” said AAA-Texas Houston spokeswoman Sarah Schimmer payday loan. “In many regions, we have seen prices start to inch down in the last couple of days,”
— Dow Chemical Co. announced its second comprehensive price hike in less than a month to offset the "relentless rise" in costs for energy and related raw materials.
The Midland-based chemical company announced Tuesday it will raise prices by as much as 25% next month. That follows price increases of up to 20% that took effect June 1.
Dow (DOW, Fortune 500) makes key ingredients used in paints, textiles, glass, packaging and cars.
Dow said it’s also adding a freight surcharge for North American customers of $300 per shipment by truck and $600 per shipment by rail effective Aug. 1. The company said it will add the surcharges in other regions later this year.
Dow also announced it’s moving ahead with plans to temporarily idle or cut production at a number of manufacturing plants. Cost cuts at Dow’s automotive unit includes its work force and plants in light of a North American sales decline.
Chairman and Chief Executive Andrew Liveris said in a statement that the steps are "extremely unwelcome but entirely unavoidable" as global energy costs surge.
"The price increases we announced May 28 helped, but they were not enough to fully cover the additional costs we are now facing," he said.
"Even since our last announcement, the cost of hydrocarbons has continued to rise, and that trajectory shows no sign of changing same day payday loans. We must restore margins in our businesses, both through price increases and the reduction of operating costs at certain production facilities."
Dow Chemical makes everything from the propylene glycols used in antifreeze, coolants, solvents, cosmetics and pharmaceuticals, to acrylic acid-based products used in detergents, wastewater-treatment and disposable diapers.
Its products are sold in 160 countries.
The company in April reported a 3% drop in quarterly earnings. At the time, Dow said it considered that a strong showing in the face of a 42% jump in feedstock and energy costs.
Shares rose 43 cents to $38.05 in premarket trading.
There is no question that the federal government, plus many lenders and financial professionals, shoulder a lot of the blame for our current economic crisis.
But many individuals who are overloaded with debt need to take responsibility for their bad choices, too. Take credit card debt, for example. Certainly there has been a tremendous push — for decades — by financial institutions to get people to view credit cards as indispensable.
And consumers gladly went along with no complaint, using other people’s money until life’s hardships — a job loss, illness or divorce — got in the way and they no longer could pay today for what they long since had purchased.
In a recent online discussion, my guest was Stuart Vyse, author of "Going Broke: Why Americans Can’t Hold On to Their Money," which was the March pick for the Color of Money Book Club. Vyse joined me to discuss why so many people can’t save. Here’s a partial transcript:
Do you think past generations had more discipline than we do now or simply less opportunities to get into debt, or both?
I think it is mostly the greater temptations we face today.
Earlier generations did not have to contend with Internet shopping, credit cards that are widely available, catalogs combined with 800 numbers, and a consumer economy that depends on everybody spending. At the same time, saving has gone out of fashion.
Do you think that Americans will be better able to hold on to their money in the future?
I think future generations will be able to do better if they begin to think differently about the things they want. They will need to think more about the value of money in the bank and activities that do not cost money. If future generations continue to watch lots of TV and continue to want the things they see on the screen, they will have trouble.
But many of the best things in life don’t cost money.
Why do you think it is so easy to slide into credit card debt?
Credit cards have the wonderful and dangerous quality of feeling like free money. With the card you can buy things you can’t afford and put the pain of payment off into the future. Furthermore, our psychology is such that we tend to think very optimistically about the future. We say, "It will be OK. I will be able to pay the bill when the time comes." But we forget that things can and often do go wrong $500 payday loan. Other expenses crop up that we don’t anticipate. Before you know it, you are in trouble.
How can America get past this culture of consumerism? And I’m not throwing stones. Though I have no consumer debt, I’ve only recently started saving. There are examples everywhere, from the various housing crises to the wider advertisements of payday-advance loans to the introduction of even more eight-cylinder or otherwise high-horsepower, and thus gas-guzzling, automobiles.
It is going to be difficult to throw off the chains of consumerism. Much of the economy depends on it. But it is also clear that, with so many people in debt and barely making ends meet, millions of individual citizens are paying dearly. Limits on advertising and reasonable limits on credit would help. Also, it is very important that we begin to teach the value of saving and living within one’s means. Being in debt is becoming an accepted norm, but the anxiety and pain that it creates often are hidden. So many people would be much happier if they could live more simply and in the black.
Vyse hits it right on the head. Plastic separates us from the pain of paying with cash. I often ask people if they would withdraw $3,000 or $4,000 or $5,000 in cash to pay for a big-screen TV, furniture, etc. They cringe thinking about all that cash. It’s hard to spend the cash, easy to put down the plastic card.
This question came to me from a student attending Sabot at Stony Point in Richmond, Va.:
I want some advice on how to keep money and how to save it even though I want something really bad.
Do this for me, today, after class but today. Make a list of the things you really want in the future — maybe a car, or helping your mom and dad pay for your college education. A trip.
In other words, make a list of the things that really, really matter. And every time you want to spend on candy or something not really worthwhile, pull out that list.
That’s what I do. I keep my priorities in mind when I’m tempted to spend.
singletarym@washpost.com
2008, WASHINGTON POST WRITERS GROUP
Japan’s Toshiba Corp (6502.T: Quote, Profile, Research) surrendered in the high-definition home movie war on Tuesday, giving up on its HD DVD format after losing the support of key studios and retailers to the Blu-ray technology backed by Sony Corp (6758.T: Quote, Profile, Research).
The decision by the electronics maker ends the battle with a consortium led by Sony over who would set the standard for the next generation of discs, a fight that confused shoppers and stalled a move to the new technology in the $24 billion home DVD market.
The Blu-ray win means consumers no longer have to choose between rival incompatible formats and run the risk of being stuck with a 21st century equivalent of Betamax, Sony’s videotape format that lost out to VHS in the 1980s.
Toshiba, which had hoped HD DVD would drive growth in its consumer electronics business, said it would aim to end its HD DVD business by the end of next month.
“This was a very difficult decision to make .. paydayloan. but when we thought about the trouble we would cause to consumers and our partners, we decided it was not right for us to keep going with such a small presence,” Toshiba Chief Executive Atsutoshi Nishida told a news conference.
The company said it would continue to service existing HD DVD products, and added it expected bigger profits over the next year as it will cut spending earmarked to promote HD DVD.
The tide turned against HD DVD after the defection to Blu-ray by Time Warner Inc’s (TWX.N: Quote, Profile, Research) Warner Bros studio last month.
The following week, Blu-ray took 93 percent of next-generation DVD hardware sales in North America, according to the NPD group.
A federal judge in Manhattan on Wednesday confirmed the freezing of $300 million in cash held by Venezuela’s state-run oil company, finding it probable that Exxon Mobil Corp. will win its legal battle against the company.
Exxon Mobil is challenging Petroleos de Venezuela SA, or PDVSA, over compensation for the nationalization of one of four heavy oil projects in the Orinoco River basin, one of the world’s richest oil deposits.
Irving, Texas-based Exxon Mobil is seeking to freeze billions in Venezuelan assets in the United States and Europe.
Meanwhile, Venezuela has halted oil supplies to Exxon Mobil in a move seen as largely symbolic quick payday loan. President Hugo Chavez, who had threatened to cut off all oil shipments to the United States, instead opted to cut off oil supplies to Exxon Mobil.
Analysts say Exxon Mobil won’t have any trouble finding more crude to buy on the world market.
—THE ASSOCIATED PRESS AND MARKETWATCH
Societe Generale launched a deeply discounted 5.5 billion euros ($8 billion) capital increase on Monday to prop up its finances and heal scars from the world’s biggest rogue trading scandal.
The one-for-four rights issue at 47.50 euros per share gives its existing shareholders a bigger-than-expected discount of 38.9 percent to Friday’s price as a reward for sticking with the bank and filling a 4.9 billion euro hole blamed on one trader.
Investors and analysts, who had predicted a discount of 30 percent, said SocGen appeared anxious to guarantee a maneuver that could be crucial to its hopes of staying independent.
“The price is very low. The feedback from the market cannot have been very encouraging. As they can’t miss this deal they decided to strike very low,” said Landsbanki Kepler banking analyst Pierre Flabbee.
Takeover talk has swirled around SocGen since January 24 when executive chairman Daniel Bouton unveiled the multi-billion-euro trading losses and pinned the blame on unauthorized stock market gambling by one junior trader, 31-year-old Jerome Kerviel.
Kerviel spent the weekend in a Paris prison after prosecutors succeeded in overturning his bail credit report. But a Paris broker who was quizzed by police for 48 hours over his links with Kerviel was released by judges without charge on Saturday.
Top contender to bid for SocGen is domestic rival BNP Paribas. But a source familiar with BNP’s thinking told Reuters on Monday it was not preparing a hostile bid. BNP failed to buy SocGen in a three-way takeover battle in 1999.
“The idea of a bid has not been raised at all at board level,” the source said. “What one could think about is a friendly approach. If at a certain stage Societe Generale management considers it intelligent to bolster the bank with a natural partner there could be something to do.”
Powered by WordPress -- XHTML 1.0