Five Things You Need to Know: Special Snakes on a Plane Edition
What you need to know (and what it means)!
Minyanville's Five Things You Need to Know to stay ahead of the pack on Wall Street:
1. China Eyes Monetary Growth, Snakes on a Plane
Citing continued excessive credit and investment growth and a large trade surplus, the People's Bank of China raised benchmark one-year lending and deposit rates by 27 basis points, the Wall Street Journal reported.
- The benchmark one-year lending rate was lifted to 6.12% from 5.85% and the one-year deposit rate rose to 2.52% from 2.25%, the PBOC said.
- China's Central Bank has now become the 10th Central Bank to tighten in August.
- 11 Central Banks tightened in July.
- 17 tightened in June.
- Wasn't it just Wednesday of this week that some economists, citing a slowdown in fixed investment from 30.5% to 31.3%, predicted China may hold off on further liquidity reductions?
- Snakes on a plane, baby. Snakes on a plane.
2. Profits? What Profits? Oh, well, Snakes on a Plane.
The taxable profits of corporate America will fall 8 per cent next year and remain on a downward trajectory until 2010, a new study by the Congressional Budget Office predicts, the Financial Times reported.
- A study by the Congressional Budget Office estimates that taxable profits will not recover their current levels in nominal cash terms for nearly a decade.
- The CBO projects a decline in the share of corporate profits in national income, with taxable profits falling from a peak of 13.4 percent of GDP this year to 9% in 2014.
- Meanwhile, the CBO's projections for inflation, excluding energy and food prices, is higher than its March report.
- The CBO said it expects core consumer prices to rise by 2.6 percent in 2006 and 2.5 percent in 2007.
- Consumer prices including energy and food are projected to rise by 3.5 percent in 2006 and 2.5 percent in 2007.
- But what are you gonna do? Snakes on a plane, my friend. Snakes on a plane.
3. Copper Strike! More Snakes on a Plane.
BHP Billiton on Friday closed the world's biggest copper mine in Chile after breaking off talks with workers who had been blocking all roads leading to and from the site, the Financial Times reported.
- BHP controls the Escondida operation while Rio Tinto (RTP) owns a 30% share, Mistubishi Corp. holds 10% and International Finance Corp. owns 2.5%.
- The Escondida mine accounts for 8.5% of copper mined worldwide.
- The strike has been going on for almost two weeks and has forced BHP to cut capacity to about 40%.
- The Escondida workers' union, which represents 2,052 workers of the total 2,930 workforce, has been calling for a 13% wage increase and a $30,000 net bonus per worker.
- BHP countered with an offer involving three-year contracts with a 3% rise in pay and bonuses.
- This is clearly a long-term standoff in the making, but in the end what can we do? I mean, it's nothing but snakes on a plane, dude. Snakes on a plane.
4. Ford Fires Everybody. Everybody shrugs and says, "Snakes on a plane."
Ford Motor Co. may announce additional plant closings and job cuts, according to the Wall Street Journal.
- Under pressure to stem losses dripping through the company as if leaking through a sieve attached to a fire hose, Ford may soon announce additional plant closings and job cuts, according to a story in this morning's Wall Street Journal.
- Meanwhile, Minyanville has learned the Ford job cuts and plant closings may be even more severe than many expect.
- Ford Chairman and Chief Executive Bill Ford Jr. may announce as early as Monday that the company has decided to fire all 35,000 employees and close all plants.
- New orders for cars, trucks and SUV's will be handled personally by Mr. Ford and built in his garage.
- In addition to the firings, the company is expected to announce a corporate restructuring where Mr. Ford will assume the duties of Chief Financial Officer, Executive Vice President of Marketing and Sales, Product Development, Human Resources, Labor Affairs, Information Technology, Manufacturing, General Counsel, Controller, Chief Information Officer, Global Purchasing, Customer Service, Chief Communications Officer, Assembly Manager, Stamping Manager, Powertrain Components Manager, Castings Design and Manufacturing Manager, Chief Electronics Engineer and Design Manager, Fuel Handling Supervisor, Glass Technician Supervisor, Engines Manager, Suspension and Steering Supervisor, Plastics Division Manager and Environmental Quality and Control Team Leader.
Bill Ford Jr., Ford Chairman and Chief Executive Officer, Chief Financial Officer, Executive Vice President of Marketing and Sales, Product Development, Human Resources, Labor Affairs, Information Technology, Manufacturing, General Counsel, Controller, Chief Information Officer, Global Purchasing, Customer Service, Chief Communications Officer, Assembly Manager, Stamping Manager, Powertrain Components Manager, Castings Design and Manufacturing Manager, Chief Electronics Engineer and Design Manager, Fuel Handling Supervisor, Glass Technician Supervisor, Engines Manager, Suspension and Steering Supervisor, Plastics Division Manager and Environmental Quality and Control Team Leader and one of the trucks he built in the new Ford Motor Co. plant in his garage.
5. Click on Image Below for a Special Minyanville Snakes on a Plane Message:
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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