Here is the “In the Financial Papers Radio Broadcast” (Length: 7:39 minutes). The player should load automatically. Please let me know if you like it. Contact Kathy
In the Financial Papers:
Housing Starts in U.S. Rise; Single-Family Construction Hits 17-Year Low
Fed, BOE Foreshadow End of Rate Cuts as Prices Rise
Oil Rises to Record Above $127 on Goldman Price Forecast, Chinese Imports
Crude oil rose above $127 a barrel for the first time after Goldman Raises Forecasts
London Banking-Job Seekers Face Worst Odds Since 2004, Outnumber Openings
Fannie Mae to Drop Down Payment Rules in Worst Areas
Switzerland March Adjusted Real retail sales +9.7% y/y – higher than expected
Japanese GDP stronger than expected
ECB Liebscher: 3 percent inflation is unacceptable.
ECB Constancio: difficult to predict how much Europe will decelerate.
US Fed reexamines proactive approach to managing bubbles
Economic Data Adds to Recession Worries
LIBOR Calculation Stresses Central Bankers
Since the beginning of the year, the US dollar has fallen 5.9 percent against the Euro and 6.7 percent against the Japanese Yen.
For many countries, including the US, a weak dollar has caused major problems ranging from deteriorating export growth to inflation. The one good thing that the weaker dollar was supposed to do is to save the US manufacturing sector. Unfortunately, today’s US economic data proved otherwise. Industrial production dropped 0.7 percent in the month of April, manufacturing activity in the NY region dipped into negative territory and even though the Philly Fed index rebounded from -24.9 to -15.6, it still remains deep in contractionary territory.
Unfortunately the depreciating value of the US dollar has failed to offset slowing demand. The automobile sector has been the hit the hardest from the double blow of higher oil prices and a weaker labor market. The US economy is continuing to struggle and there is no doubt that the Federal Reserve has a tough task ahead of them. Jobless claims increased last week while the NAHB housing market index fell to 19, one point shy of its record lows.
Here is the “In the Financial Papers Radio Broadcast” (Length: 5:43minutes). The player should load automatically. Please let me know if you like it. Contact Kathy
In the Financial Papers:
New Zealand Dollar, One of the Weakest Pairs in the FX Market
Eurozone GDP Numbers
Factories Won’t Save the Day
Manufacturing in NY Unexpectedly Contracts
Industrial Production Weakens
US Consumer Prices
High Soybean Prices Hurt Japanese Tofu Makers
Commodity Prices Retreating, Rice Falls to Daily Limit AGAIN
Early Markdowns Mean Springtime for Shoppers
Iceland Debates Switching to Euro.
Yesterday I talked about how the weak dollar has affected the Film Industry. Today, the Wall Street Journal has an article about how the weak dollar is affecting study abroad programs.
With the greenback down 20% against the Danish krone and up 4% against the Argentine peso in the past two years, there is a new trend of college students opting to study abroad in Asia, South America or Africa instead of Europe.
According to Geoffrey Bannister, president and chief academic officer of Cultural Experiences Abroad, a company based in Tempe, Ariz., that runs study-abroad programs, enrollment in the company’s Western Europe programs grew just 8% for next fall, much less than the usual increase of 20% to 25%. Buenos Aires, meanwhile, is getting a lot of interest, he says.
Read the rest of the article on WSJ.com (subscription may be needed)
I always love it when Main Street wakes up to the importance of exchange rates.
According to the New York City Film Commissioner, there has been a 36 percent increase in movies made in New York since 2002. Tax incentives and a favorable exchange rate has made filming movies in the US far more attractive.
Over the past year, the US dollar has fallen more than 14 percent against the Euro and Japanese Yen, 13 percent against the Australian dollar and 10 percent against the Canadian dollar. This makes it increasingly more expensive for US filmmakers to shoot abroad and cheaper for foreign filmmakers to shoot in the US.
One director even said that by filming his movie in New York, he saved $500k off of what would have been a $5 million budget had he filmed in Canada.
This trend of filming in NY should continue as NY State Governor David Paterson recently increased the state tax credit from 10 to 30 percent.