What affect the American economy today.

What affect the American economy today.

Wednesday 10, 2007

European finance ministers called on China to untether the yuan to help rebalance global exchange rates.With the euro hovering above $1.41, many in Europe have been calling for strong language, particularly focusing on China's currency.

Some office landlords in Silicon Valley are again accepting stock in still-private start-ups in lieu of rent.PlaySpan Inc., a Web-gaming outfit that raised $6.5 million, boasted on its Web site that it had been founded by a fifth-grader.But some start-ups are trying to tone down the hype.

The majority of business executives in an assortment of non-financial industries suggest that they plan to maintain employment levels or increase them in the next year, with most of the planned increases in export and international-related activities.

The Russell 2000 is up 6.7% year-to-date, while the S&P 500 is ahead by 9.5%. The Dow Jones Industrial Average of 30 megacap stocks is up 12.7. One reason: Large stocks are better positioned to benefit from strong growth overseas and a weak dollar, which makes it cheaper to export.



Tuesday 9, 2007

Japan's foreign reserves rose to a record in September from August, thanks to a stronger euro against the dollar and a rise in short-term U.S. Treasury prices.
value of Japan's euro-denominated bonds increases as the euro climbs against the U.S. dollar, since Japan calculates the value of the reserves in dollars.
Another contributor was a drop in short-term U.S. Treasury yields, which move inversely to prices. Yields on the two-year notes fell to 3.992% in September from 4.14% in August, the official said. Japan parks the bulk of its reserves in U.S. Treasurys.

It is good news whenever a group of American businesses enjoys growth and prosperity. It is far better, however, when this success is earned through market-leading innovation, quality and value -- not through a sinking dollar that happens to make U.S. exports cheap.

Some firms will grow accustomed to their macroeconomic free lunch and be unprepared to compete on the fundamentals should the dollar change direction.

Financial firms are more difficult for investors to accurately value than other businesses, which explains why several large banks saw their stocks jump last week after delivering bad news

Monday 8, 2007

Companies are taking multibillion-dollar write-downs
Credit crunch keeps tied to questionable home mortgages
Oil traders and speculators unload crude inventory. Storage levels have fallen.
The euro's climbing against the U.S. dollar.
Employers added 110,000 jobs in September it is a healthy report for the economy.
Banks in Europe are tightening credit standards.
The dollar is weak and commodity prices in record territory.
The jobless rate keeps stable at 4.7% and increase for real wage after inflation es 2.2% in the last 12 months.
Costs of tackling global warming are going to be high.
Corporate profits are expected to post a third-quarter decline
The stock market is a strong and the world's wealth grew 7.5% in 2006 reaching 97.9 trillion. There are a more than 10 millions of households with 1 million or more in assets and 50% of them are in the USA.