Friday, February 27, 2004
U.S. Support For Free Trade Wanes
Free trade is losing support in the United States, in particular among high-income Americans, as a growing number of professionals feel threatened by job outsourcing to low-wage nations, according to a recent study.
The University of Maryland's Program on International Policy Attitudes (PIPA) found that among those in the over-$100,000 bracket, the percentage actively supporting free trade slid from 57% in 1999 to 28% in January 2004. These results surprised even the researchers.
"It is rare in any case that any demographic slice drops 20 or 30 points on any issue," said research director Clay Ramsay. "It certainly provides evidence for the theory going around now that job insecurity is creeping up the income scale."
Indeed, the survey found 53% of the respondents endorse expanded international trade but are not satisfied with the government's handling of its effects on U.S. jobs, the poor in other nations and the environment. - Agence France-Presse
The University of Maryland's Program on International Policy Attitudes (PIPA) found that among those in the over-$100,000 bracket, the percentage actively supporting free trade slid from 57% in 1999 to 28% in January 2004. These results surprised even the researchers.
"It is rare in any case that any demographic slice drops 20 or 30 points on any issue," said research director Clay Ramsay. "It certainly provides evidence for the theory going around now that job insecurity is creeping up the income scale."
Indeed, the survey found 53% of the respondents endorse expanded international trade but are not satisfied with the government's handling of its effects on U.S. jobs, the poor in other nations and the environment. - Agence France-Presse
Thursday, February 26, 2004
Yankee or Dixie quiz
Steel Prices Rise -- Again
Wednesday, February 25, 2004
2003 International Patent Requests Hit Record
Requests for international patents reached a record 113,249 last year, of which more than one-third came from the United States, according to the World Intellectual Property Organization (WIPO).
The requests for consideration by the Patent Cooperation Treaty, which provides for patents applicable in WIPO's 123 member countries, rose 2% from 2002. Around 80% of those requests were granted, the organization said.
The United States represented 36% of all requests, a small but steady decline from 37% in 2002, 40% in 2001 and 41% in 2000, according to WIPO Deputy Director General Francis Gurry.
"It is a very good measure of the technological capability of countries," says Gurry.
The U.S. requests totaled 41,056 in 2003. Japanese inventors put in the second biggest number of requests last year, with 15% of the total. They surpassed Germans for the first time, while Britain and France were third and fourth.
The United States, Japan and the 27-member European Patent Convention accounted for 84% of all patent requests, WIPO said, adding that it marked a slight drop in favor of developing countries. Those accounted for 11% of the requests.
"This is a reasonably small number, but a very positive sign," Gurry notes.
In order on WIPO's list of developing countries were South Korea, China, India, South Africa, Singapore, Brazil and Mexico.
Broken down by company, the Dutch group Philips turned in the most patent requests, followed by Siemens of Germany and Matsushita of Japan. - Agence France-Presse
The requests for consideration by the Patent Cooperation Treaty, which provides for patents applicable in WIPO's 123 member countries, rose 2% from 2002. Around 80% of those requests were granted, the organization said.
The United States represented 36% of all requests, a small but steady decline from 37% in 2002, 40% in 2001 and 41% in 2000, according to WIPO Deputy Director General Francis Gurry.
"It is a very good measure of the technological capability of countries," says Gurry.
The U.S. requests totaled 41,056 in 2003. Japanese inventors put in the second biggest number of requests last year, with 15% of the total. They surpassed Germans for the first time, while Britain and France were third and fourth.
The United States, Japan and the 27-member European Patent Convention accounted for 84% of all patent requests, WIPO said, adding that it marked a slight drop in favor of developing countries. Those accounted for 11% of the requests.
"This is a reasonably small number, but a very positive sign," Gurry notes.
In order on WIPO's list of developing countries were South Korea, China, India, South Africa, Singapore, Brazil and Mexico.
Broken down by company, the Dutch group Philips turned in the most patent requests, followed by Siemens of Germany and Matsushita of Japan. - Agence France-Presse
U.S. Online Sales Up 26.3% In 2003, Report Says
U.S. online retail sales jumped 26.3% in 2003 to $54.9 billion as the Internet grabbed an increasing share of overall sales, the government reported Feb. 23.
E-commerce accounted for 1.6% of all retail sales last year, up from 1.3% in 2002, according to the Commerce Department. The report showed the Internet continues to grow at a fast pace as a retail channel, outstripping by far overall retail sales, which were up 5.4% for the year.
For the fourth quarter, the report said unadjusted retail e-commerce sales were $17.2 billion, an increase of 25.1% from the fourth quarter of 2002. That amounted to 1.9% of total retail sales for the fourth quarter of $918.2 billion.
Surveys on online spending vary greatly, with differing definitions of the holiday season and online purchases. Government figures, for example, exclude travel bookings and some other services online. Forrester Research last year predicted e-commerce sales of as much as $100 billion in 2003. - Agence France-Presse
E-commerce accounted for 1.6% of all retail sales last year, up from 1.3% in 2002, according to the Commerce Department. The report showed the Internet continues to grow at a fast pace as a retail channel, outstripping by far overall retail sales, which were up 5.4% for the year.
For the fourth quarter, the report said unadjusted retail e-commerce sales were $17.2 billion, an increase of 25.1% from the fourth quarter of 2002. That amounted to 1.9% of total retail sales for the fourth quarter of $918.2 billion.
Surveys on online spending vary greatly, with differing definitions of the holiday season and online purchases. Government figures, for example, exclude travel bookings and some other services online. Forrester Research last year predicted e-commerce sales of as much as $100 billion in 2003. - Agence France-Presse
Monday, February 23, 2004
U.S.' Poole Sees Tame Inflation For Rest Of The Year
U.S. inflation rates should remain near current low levels even as stronger economic growth begins to create a "significant" number of new jobs, William Poole, president of the Federal Reserve Bank of St. Louis, said Feb. 20.
"I see no reason why we should not see a similarly benign inflation outcome this year," he said. With inflation low and its credibility as an inflation-fighter intact, the Fed can afford to be "patient" before raising rates.
Poole, a voting member of the Federal Open Market Committee this year, is considered one of the leaders of the FOMC hawks, a group that generally favors higher interest rates that keep inflation in check.
"Maintaining existing core rates of inflation around their current levels makes a lot of sense," he said, in contrast to other members of the committee who have said current levels of inflation are too low.
Nonetheless, he gave no timetable for the inevitable rate increase. "It is not possible to predict the timing of adjustments to the federal funds rate target, but we are fortunate that the market understands the issue so well," he said.
Additionally, Poole said productivity gains would slow this year to around 3% from 4.2% in 2003. "This analysis leads me to expect higher employment growth in 2004," he said, quoting consensus forecasts of around 150,000 to 170,000 a month.
"It's not that productivity growth is too high; the issue is simply that real GDP growth is not strong enough to generate new jobs given that productivity growth," Poole said. "As a matter of arithmetic, unless we see real GDP growth in excess of labor productivity growth on a sustained basis, we won't see much job creation." - Agence France-Presse
"I see no reason why we should not see a similarly benign inflation outcome this year," he said. With inflation low and its credibility as an inflation-fighter intact, the Fed can afford to be "patient" before raising rates.
Poole, a voting member of the Federal Open Market Committee this year, is considered one of the leaders of the FOMC hawks, a group that generally favors higher interest rates that keep inflation in check.
"Maintaining existing core rates of inflation around their current levels makes a lot of sense," he said, in contrast to other members of the committee who have said current levels of inflation are too low.
Nonetheless, he gave no timetable for the inevitable rate increase. "It is not possible to predict the timing of adjustments to the federal funds rate target, but we are fortunate that the market understands the issue so well," he said.
Additionally, Poole said productivity gains would slow this year to around 3% from 4.2% in 2003. "This analysis leads me to expect higher employment growth in 2004," he said, quoting consensus forecasts of around 150,000 to 170,000 a month.
"It's not that productivity growth is too high; the issue is simply that real GDP growth is not strong enough to generate new jobs given that productivity growth," Poole said. "As a matter of arithmetic, unless we see real GDP growth in excess of labor productivity growth on a sustained basis, we won't see much job creation." - Agence France-Presse
Rising Energy Costs Boost U.S. Consumer Prices
U.S. consumer prices rose a sharp 0.5% in January, the Labor Department said Feb. 20, boosted by a surge in gasoline and other energy prices. The so-called core inflation rate, excluding volatile food and energy prices, was up 0.2%.
The consumer price index (CPI) report was steeper than expected on Wall Street, where analysts projected a 0.3% headline figure and a 0.1% core rate.
A seasonally adjusted rise of 4.7% in energy prices accounted for most of the monthly increase in the consumer price index, which tracks U.S. inflation at the retail level. Gasoline prices rose 8.1%, while fuel oil prices increased 7.2%.
Over the past 12 months, the CPI has risen 1.9%. The core rate is up 1.1%. - Agence France-Presse
The consumer price index (CPI) report was steeper than expected on Wall Street, where analysts projected a 0.3% headline figure and a 0.1% core rate.
A seasonally adjusted rise of 4.7% in energy prices accounted for most of the monthly increase in the consumer price index, which tracks U.S. inflation at the retail level. Gasoline prices rose 8.1%, while fuel oil prices increased 7.2%.
Over the past 12 months, the CPI has risen 1.9%. The core rate is up 1.1%. - Agence France-Presse
Thursday, February 19, 2004
Japan Reports Stronger Economic Growth In Q4
Japan reported Feb. 18 its strongest economic growth in over 13 years in the last quarter of 2003, suggesting the world's second largest economy could finally be turning the corner after more than a decade of gloom and stagnation. At the same time, economists and policymakers remained wary on the outlook and hesitant to declare the worst over in light of previous false dawns, continuing deflationary pressures and uncertainties on U.S. growth.
The government said booming Asian demand for Japanese digital consumer electronics and automobiles prompted companies to boost investment in upgrading plant and equipment in the three months to December, building on a trend. Combined, exports and capital investment drove gross domestic product (GDP) growth up to a better-than-expected 1.7%, the highest rate since the ending of the bubble economy 13 years ago and compared with 0.6% in the previous quarter to September. On an annualized basis, growth hit 7%, also the highest since the last days of the economic bubble, in April through June 1990, when the economy expanded 10.5%.
Average forecasts had been for 1.2% quarterly growth and an annualized rate of some 5%.
For the whole of 2003, the world's second-largest economy grew 2.7%, reversing a 0.4% contraction in 2002.
Corporate capital spending jumped 5.1% in the October-to-December period, reversing a 0.2% drop in the previous quarter, while private consumption rose 0.8%. - Agence France-Presse
The government said booming Asian demand for Japanese digital consumer electronics and automobiles prompted companies to boost investment in upgrading plant and equipment in the three months to December, building on a trend. Combined, exports and capital investment drove gross domestic product (GDP) growth up to a better-than-expected 1.7%, the highest rate since the ending of the bubble economy 13 years ago and compared with 0.6% in the previous quarter to September. On an annualized basis, growth hit 7%, also the highest since the last days of the economic bubble, in April through June 1990, when the economy expanded 10.5%.
Average forecasts had been for 1.2% quarterly growth and an annualized rate of some 5%.
For the whole of 2003, the world's second-largest economy grew 2.7%, reversing a 0.4% contraction in 2002.
Corporate capital spending jumped 5.1% in the October-to-December period, reversing a 0.2% drop in the previous quarter, while private consumption rose 0.8%. - Agence France-Presse
Wednesday, February 18, 2004
Industrial Production Rises In January
Industrial production rose 0.8% in January over the previous month, according to figures released Feb. 17 by the Federal Reserve, propelled by a 5.2% rise in utilities output. Combined with a downward revision to December's figure, overall industrial production in January was 2.4% higher than the January 2003 level.
Industrial production includes manufacturing, mining and utilities.
Manufacturing output also rose in January, but by a lesser amount -- 0.3%. January 2004 production was 2.3% higher than in January 2003.
"This was the fifth consecutive monthly rise in manufacturing output," says Jerry Jasinowski, president of the Washington, D.C.-based National Association of Manufacturers. "The continuation of the manufacturing recovery was fueled by durable-goods production, where output rose by 0.6 in January."
Machinery, motor vehicles and aerospace products all increased for a third consecutive month in January. Primary metals fell by 1.4% and home electronics dropped by 4.2%.
Capacity utilization among all industries was 76.2% in January, up 1.1% from January 2003. Manufacturing capacity was 74.6%, up slightly from the revised figure of 74.4% for December 2003 and up 0.9% over the level of a year ago.
Industrial production includes manufacturing, mining and utilities.
Manufacturing output also rose in January, but by a lesser amount -- 0.3%. January 2004 production was 2.3% higher than in January 2003.
"This was the fifth consecutive monthly rise in manufacturing output," says Jerry Jasinowski, president of the Washington, D.C.-based National Association of Manufacturers. "The continuation of the manufacturing recovery was fueled by durable-goods production, where output rose by 0.6 in January."
Machinery, motor vehicles and aerospace products all increased for a third consecutive month in January. Primary metals fell by 1.4% and home electronics dropped by 4.2%.
Capacity utilization among all industries was 76.2% in January, up 1.1% from January 2003. Manufacturing capacity was 74.6%, up slightly from the revised figure of 74.4% for December 2003 and up 0.9% over the level of a year ago.
Tuesday, February 17, 2004
Study: Importers Could Benefit Financially From RFID Technology
Financial benefits exceeding $220 per container could accrue to importers using radio frequency identification sensors to improve cargo security, suggests an analysis done by BearingPoint's Inc.'s Global Trade Management Practice for the U.S. Trade and Development Agency.
Benefits include greater predictability and timeliness of shipments, reduced safety stock and inventory carrying costs, increased profits as a result of improved in-stock product rates, reduced costs related to theft and pilferage, improved customer service, and lower costs related to U.S. Customs' trade security measures.
The demonstration project that was analyzed involved containers shipped from Laem Chaban, Thailand, to Seattle during September and October of last year. - John S. McClenahen
Benefits include greater predictability and timeliness of shipments, reduced safety stock and inventory carrying costs, increased profits as a result of improved in-stock product rates, reduced costs related to theft and pilferage, improved customer service, and lower costs related to U.S. Customs' trade security measures.
The demonstration project that was analyzed involved containers shipped from Laem Chaban, Thailand, to Seattle during September and October of last year. - John S. McClenahen
Opinion: China Needs To Open Markets, Not Float Currency
James M. Zimmerman, chief representative and a partner in the Beijing office of Squires Sanders & Dempsey LLP, an international law firm, believes that the Washington, D.C.-based National Association of Manufacturers (NAM), among others, is wrong in its insistence that China let market forces determine the value of its currency. Indeed, he dismisses such demands from NAM, the Bush administration and some members of Congress as "politically motivated." They "disregard the [disruptive] impact that full convertibility would mean to the Chinese economy," asserts Zimmerman.
"What China needs to do is to provide real market access -- and ahead of the WTO [World Trade Organization] timetables agreed upon for accession," he says. "And what the U.S. government and NAM need to do is stop wasting time with the currency issue and demand that trade be liberalized and access be granted for services." - John S. McClenahen
"What China needs to do is to provide real market access -- and ahead of the WTO [World Trade Organization] timetables agreed upon for accession," he says. "And what the U.S. government and NAM need to do is stop wasting time with the currency issue and demand that trade be liberalized and access be granted for services." - John S. McClenahen
Friday, February 13, 2004
Coalition Urges Currency Restraint
Nearly a week after U.S. Treasury Secretary John Snow and the finance ministers of six other major industrialized nations suggested they might intervene to offset unusual swings in currency exchange rates, a Washington, D.C.-based coalition that includes manufacturing groups is urging restraint.
"With U.S. exports just beginning to turn around after five long years of bearing the burden of a significantly overvalued [U.S.] dollar, this is not the time to be encouraging government intervention to thwart market mechanisms," Patricia Mears, a spokesperson for the Coalition for a Sound Dollar, said Feb. 12.
Prior to last weekend's meeting of the G-7 finance ministers in Boca Raton, Fla., the coalition of 95 industrial and agricultural associations sent Snow a letter stressing, "It is imperative that the administration continue to press our global trading partners to allow the free market to set the value of the dollar and other currencies without intervention." They seemed to be most concerned the European Central Bank would step in to prevent further appreciation of the euro, the common currency for the majority of European Union countries, against the U.S. dollar. Appreciation of the euro has tended to make U.S. exports more competitive in European markets. - John S. McClenahen
"With U.S. exports just beginning to turn around after five long years of bearing the burden of a significantly overvalued [U.S.] dollar, this is not the time to be encouraging government intervention to thwart market mechanisms," Patricia Mears, a spokesperson for the Coalition for a Sound Dollar, said Feb. 12.
Prior to last weekend's meeting of the G-7 finance ministers in Boca Raton, Fla., the coalition of 95 industrial and agricultural associations sent Snow a letter stressing, "It is imperative that the administration continue to press our global trading partners to allow the free market to set the value of the dollar and other currencies without intervention." They seemed to be most concerned the European Central Bank would step in to prevent further appreciation of the euro, the common currency for the majority of European Union countries, against the U.S. dollar. Appreciation of the euro has tended to make U.S. exports more competitive in European markets. - John S. McClenahen
Thursday, February 12, 2004
Greenspan Says Sustained Expansion Ahead, Deficit A Menace
Federal Reserve Chairman Alan Greenspan said Feb. 11 the U.S. economy has embarked on a "vigorous" expansion but the outlook is menaced by massive budget deficits.
"Looking forward, the odds of sustained robust growth are good, although, as always, risks remain," Greenspan said, submitting the brightest outlook in years to a House of Representatives panel. "Last year appears to have marked a transition from an extended period of subpar economic performance to one of more vigorous expansion."
Greenspan presented a twice-yearly central bank report, which forecast growth of 4.5% to 5% in 2004.
But the powerful central bank chief warned that runaway budget deficits were a threat. President George W. Bush's spending plans foresee a record $521 billion deficit for fiscal 2004 ending Sept. 30 and a shortfall of $364 billion in 2005.
Long-term, the deficit risks creating serious difficulties paying for the baby-boom generation as it retires, Greenspan said. "The longer we wait before addressing these imbalances, the more wrenching the fiscal adjustment ultimately will be," he told the financial services committee. But the deficit also created short-term risks, because long-term rates were swayed by financial market expectations, he said.
Despite strong economic growth, hiring had so far lagged far behind, Greenspan said. "Unless I am mistaken, my view is that this pattern is about to change," he said, because as companies gained confidence in the economy they would "surely" hire again.
Grilled by lawmakers over the loss of U.S. manufacturing jobs because of stiff competition from Chinese exports, Greenspan cautioned against singling China out. "I don't disagree that is indeed happening," Greenspan said. "I am merely saying if China stopped exporting to the United States that others would take up the slack."
While refusing to tip the hand of the Fed, Greenspan said interest rates -- now at a 45-year low -- would eventually have to rise toward a "more neutral" level. - Agence France-Presse
"Looking forward, the odds of sustained robust growth are good, although, as always, risks remain," Greenspan said, submitting the brightest outlook in years to a House of Representatives panel. "Last year appears to have marked a transition from an extended period of subpar economic performance to one of more vigorous expansion."
Greenspan presented a twice-yearly central bank report, which forecast growth of 4.5% to 5% in 2004.
But the powerful central bank chief warned that runaway budget deficits were a threat. President George W. Bush's spending plans foresee a record $521 billion deficit for fiscal 2004 ending Sept. 30 and a shortfall of $364 billion in 2005.
Long-term, the deficit risks creating serious difficulties paying for the baby-boom generation as it retires, Greenspan said. "The longer we wait before addressing these imbalances, the more wrenching the fiscal adjustment ultimately will be," he told the financial services committee. But the deficit also created short-term risks, because long-term rates were swayed by financial market expectations, he said.
Despite strong economic growth, hiring had so far lagged far behind, Greenspan said. "Unless I am mistaken, my view is that this pattern is about to change," he said, because as companies gained confidence in the economy they would "surely" hire again.
Grilled by lawmakers over the loss of U.S. manufacturing jobs because of stiff competition from Chinese exports, Greenspan cautioned against singling China out. "I don't disagree that is indeed happening," Greenspan said. "I am merely saying if China stopped exporting to the United States that others would take up the slack."
While refusing to tip the hand of the Fed, Greenspan said interest rates -- now at a 45-year low -- would eventually have to rise toward a "more neutral" level. - Agence France-Presse
Wednesday, February 11, 2004
Greenspan Faces Lawmakers, Timing Uncertain Over Rate Rise
Federal Reserve chairman Alan Greenspan addresses Congress Feb. 11 amid frenzied speculation about when he will raise U.S. interest rates from a 1958 low. Greenspan and fellow policymakers roiled financial markets two weeks ago when they declared they could be "patient" before ending a period of 45-year low interest rates.
Traders dissecting the statement said it had brought forward the timing of a rise in the federal funds target rate, slashed over a three-year period by 5.5 percentage points to just 1.0%. In previous statements, traders noted, Greenspan had promised to keep short-term rates down for a "considerable period."
Now the question puzzling financial markets is: How long can the Federal Reserve be patient?
"Everyone is waiting with bated breath over what he means by 'patient' -- as if he is going to tell us," says Merrill Lynch chief U.S. economist David Rosenberg.
Anyone expecting clarification is likely to be disappointed. The powerful Federal Reserve boss is renowned for foggy remarks that deliberately deny interpretation.
"I don't think he will define it because they used a term like patience precisely to give themselves more flexibility," says Wells Fargo Banks chief economist Sung Won Sohn. "So how patient they will be is a function of how well the economy and especially jobs do, and what happens with inflation," adds Sohn. "I would be very surprised if he were to define that precisely because they probably cannot themselves."
Forecasts are especially difficult in an economic recovery that seems to defy traditional analysis. Most perplexing, analysts say, is the paucity of jobs. From January 2001 until late last summer, companies axed 2.6 million jobs as they withstood shocks from the collapse of the Internet boom to the Sept. 11 attacks, corporate scandals and the Iraq war fog.
But even since then, hopes for an employment boom to match an explosion in economic growth have been frustrated. The economy hit a 19-year record growth rate of 8.2% in the third quarter of 2003 before slowing to a still-solid 4.0% expansion in the final quarter.
U.S. businesses hired 112,000 extra people in January -- a three-year record but far fewer than expected -- as the unemployment rate dipped to 5.6%, data showed Feb. 6.
Greenspan and private economists blamed the jobs drought on corporate jitters and a newfound ability to use technology such as computers to squeeze far more out of existing workers.
Inflation, meanwhile, appears tame. But the record deficits being racked up by President George W. Bush's administration have stoked fears of a future rise in bond yields, threatening future price pressures.
Analysts expect Greenspan to deliver a generally optimistic report on the economic outlook. Greenspan has already shown confidence in the labor market, saying the productivity boom must eventually taper off, leading companies to open the door to new hires.
"Although we expect his overall remarks to be fairly upbeat with respect to solid domestic growth and continued dormant inflation, the tone will likely be tempered by an acknowledgement of the need for economic healing and the dangers of the large and looming budget deficit," Lehman Brothers economists said in a report. - Agence France-Presse
Traders dissecting the statement said it had brought forward the timing of a rise in the federal funds target rate, slashed over a three-year period by 5.5 percentage points to just 1.0%. In previous statements, traders noted, Greenspan had promised to keep short-term rates down for a "considerable period."
Now the question puzzling financial markets is: How long can the Federal Reserve be patient?
"Everyone is waiting with bated breath over what he means by 'patient' -- as if he is going to tell us," says Merrill Lynch chief U.S. economist David Rosenberg.
Anyone expecting clarification is likely to be disappointed. The powerful Federal Reserve boss is renowned for foggy remarks that deliberately deny interpretation.
"I don't think he will define it because they used a term like patience precisely to give themselves more flexibility," says Wells Fargo Banks chief economist Sung Won Sohn. "So how patient they will be is a function of how well the economy and especially jobs do, and what happens with inflation," adds Sohn. "I would be very surprised if he were to define that precisely because they probably cannot themselves."
Forecasts are especially difficult in an economic recovery that seems to defy traditional analysis. Most perplexing, analysts say, is the paucity of jobs. From January 2001 until late last summer, companies axed 2.6 million jobs as they withstood shocks from the collapse of the Internet boom to the Sept. 11 attacks, corporate scandals and the Iraq war fog.
But even since then, hopes for an employment boom to match an explosion in economic growth have been frustrated. The economy hit a 19-year record growth rate of 8.2% in the third quarter of 2003 before slowing to a still-solid 4.0% expansion in the final quarter.
U.S. businesses hired 112,000 extra people in January -- a three-year record but far fewer than expected -- as the unemployment rate dipped to 5.6%, data showed Feb. 6.
Greenspan and private economists blamed the jobs drought on corporate jitters and a newfound ability to use technology such as computers to squeeze far more out of existing workers.
Inflation, meanwhile, appears tame. But the record deficits being racked up by President George W. Bush's administration have stoked fears of a future rise in bond yields, threatening future price pressures.
Analysts expect Greenspan to deliver a generally optimistic report on the economic outlook. Greenspan has already shown confidence in the labor market, saying the productivity boom must eventually taper off, leading companies to open the door to new hires.
"Although we expect his overall remarks to be fairly upbeat with respect to solid domestic growth and continued dormant inflation, the tone will likely be tempered by an acknowledgement of the need for economic healing and the dangers of the large and looming budget deficit," Lehman Brothers economists said in a report. - Agence France-Presse
U.S. Manufacturing Could Be Big Beneficiary Of Australia FTA
Ratification of the pending U.S.-Australia Free Trade Agreement (FTA) could produce nearly $2 billion in new U.S. manufactured-goods exports, figures Jerry J. Jasinowski, president of the National Association of Manufacturers (NAM), Washington, D.C.
The completion of negotiations for the bilateral FTA was announced Feb. 8. Before it can take effect the pact must be ratified by the U.S. Congress and the Australian Parliament.
More than 99% of U.S. manufactured-goods exports to Australia would enter the South Pacific country duty free upon the agreement's implementation, estimates the U.S. Trade Representative's office (USTR). The U.S. auto, chemical and plastics, construction equipment, electrical equipment and appliance, fabricated metal products, furniture and fixtures, information technology products, medical and scientific equipment, non-electrical machinery, and paper and wood products industries would be immediate beneficiaries, says USTR.
Manufactured products currently account for 93% of U.S. goods exports to Australia. Bilateral trade is about $28 billion, with the U.S. running a $9 billion surplus.
The FTA would also further open the Australian market to U.S. service providers, phase out certain textile and apparel tariffs over 15 years, improve opportunities for U.S. investment in Australia, and improve protection for trademarks, copyrights and patents.
The U.S.-Australia pact joins the Central American Free Trade Agreement (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) on the list of pending U.S. free-trade agreements. Additionally, the U.S. is in the process of negotiating FTAs with Morocco, the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Swaziland), the Dominican Republic and Bahrain. - John S. McClenahen
The completion of negotiations for the bilateral FTA was announced Feb. 8. Before it can take effect the pact must be ratified by the U.S. Congress and the Australian Parliament.
More than 99% of U.S. manufactured-goods exports to Australia would enter the South Pacific country duty free upon the agreement's implementation, estimates the U.S. Trade Representative's office (USTR). The U.S. auto, chemical and plastics, construction equipment, electrical equipment and appliance, fabricated metal products, furniture and fixtures, information technology products, medical and scientific equipment, non-electrical machinery, and paper and wood products industries would be immediate beneficiaries, says USTR.
Manufactured products currently account for 93% of U.S. goods exports to Australia. Bilateral trade is about $28 billion, with the U.S. running a $9 billion surplus.
The FTA would also further open the Australian market to U.S. service providers, phase out certain textile and apparel tariffs over 15 years, improve opportunities for U.S. investment in Australia, and improve protection for trademarks, copyrights and patents.
The U.S.-Australia pact joins the Central American Free Trade Agreement (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) on the list of pending U.S. free-trade agreements. Additionally, the U.S. is in the process of negotiating FTAs with Morocco, the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Swaziland), the Dominican Republic and Bahrain. - John S. McClenahen
Monday, February 09, 2004
Semiconductor Association Publishes New Technical Standards
Semiconductor Equipment and Materials International (SEMI), a San Jose, Calif.-based industry association serving companies in the semiconductor and flat panel display (FPD) equipment and materials markets, has published 25 new technical standards. The new standards, which are published three times a year, join more than 670 standards that have been published by SEMI during the past 30 years.
Included in the new standards are guidelines for defining the quality area of an LCD mask, formats for data management in the semiconductor exposure process and specifications for polished monocrystalline silicon carbide wafers.
"SEMI is pleased to introduce this new round of standards that will contribute to increased productivity in semiconductor and FPD manufacturing," says Bettina Weiss, SEMI's director for International Standards and MEMS. "A large number of the standards . . . were initiated by the Japanese standards committees, highlighting the international nature of the SEMI Standards Program."
Semiconductor Equipment and Materials International
Included in the new standards are guidelines for defining the quality area of an LCD mask, formats for data management in the semiconductor exposure process and specifications for polished monocrystalline silicon carbide wafers.
"SEMI is pleased to introduce this new round of standards that will contribute to increased productivity in semiconductor and FPD manufacturing," says Bettina Weiss, SEMI's director for International Standards and MEMS. "A large number of the standards . . . were initiated by the Japanese standards committees, highlighting the international nature of the SEMI Standards Program."
Semiconductor Equipment and Materials International
Friday, February 06, 2004
Get Creative To Cope With Aging Workplace
Older workers with maturity, stability and experience are increasingly going to remain in the workplace beyond the traditional retirement age of 65, and as a result employers will be increasingly creative in how they accommodate them, contends Roger E. Herman, CEO of the Herman Group, a Greensboro, N.C., consulting firm.
"Post-dot.com-crash employers have realized that the workers who can most effectively get businesses through tough times are those with the most experience -- those who have lived through a few economic cycles," says Herman.
To get work accomplished, Herman foresees employers adopting flexible work schedules, providing skills upgrading, training supervisors to work with multigenerational workforces, promoting team building across ages and cultures, offering expanded or reduced shifts, providing more opportunities for temporary and part-time work, and implementing phased retirement. - John S. McClenahen
"Post-dot.com-crash employers have realized that the workers who can most effectively get businesses through tough times are those with the most experience -- those who have lived through a few economic cycles," says Herman.
To get work accomplished, Herman foresees employers adopting flexible work schedules, providing skills upgrading, training supervisors to work with multigenerational workforces, promoting team building across ages and cultures, offering expanded or reduced shifts, providing more opportunities for temporary and part-time work, and implementing phased retirement. - John S. McClenahen
Wednesday, February 04, 2004
'Surge' Seen In China Partnering
Chinese government deregulation, industry restructuring and a fast-growing domestic market will result in a "surge of investment and partnering activity" in the People's Republic, believes Larraine D. Segil, a Los Angeles partner of Boston-based Vantage Partners, a consulting firm.
"The Chinese government is pushing for consolidation in several industries such as pharmaceuticals and airlines," she says. For example, by the end of next year as many as 4,000 of China's 6,000 pharmaceutical may not meet new standards and will be shut down. "This is creating opportunities for foreign firms to 'buy in,'" Siegel states.
She also sees joint ventures to enter Chinese markets as a way to lower risks posed by political and economic uncertainty. - John S. McClenahen
"The Chinese government is pushing for consolidation in several industries such as pharmaceuticals and airlines," she says. For example, by the end of next year as many as 4,000 of China's 6,000 pharmaceutical may not meet new standards and will be shut down. "This is creating opportunities for foreign firms to 'buy in,'" Siegel states.
She also sees joint ventures to enter Chinese markets as a way to lower risks posed by political and economic uncertainty. - John S. McClenahen
Monday, February 02, 2004
Report: U.S. Workplaces Becoming Safer
Even as "Occupational Hazards" magazine places reducing worker exposure to silica at the top of its list of challenges facing the U.S. Labor Department's Occupational Safety & Health Administration (OSHA), the Conference Board says the American workplace has become increasingly safer.
From 1999 to 2002, the number of lost-time cases per 100 full-time employees among the leading U.S. firms it surveyed declined by an average of more than 40% and recorded incidents declined by an average of more than 23%, trends "generally consistent" with OSHA's statistics, says the New York-based business research group. Its report was released Jan. 27.
Best practices appear to have played a part in the declines, with 84% of the companies putting them to work. According to the survey, the "essential themes" are clear management visibility and leadership; ownership of safety and health by all employees; accountability at all levels of the company; and the sharing of knowledge and information. - John S. McClenahen
From 1999 to 2002, the number of lost-time cases per 100 full-time employees among the leading U.S. firms it surveyed declined by an average of more than 40% and recorded incidents declined by an average of more than 23%, trends "generally consistent" with OSHA's statistics, says the New York-based business research group. Its report was released Jan. 27.
Best practices appear to have played a part in the declines, with 84% of the companies putting them to work. According to the survey, the "essential themes" are clear management visibility and leadership; ownership of safety and health by all employees; accountability at all levels of the company; and the sharing of knowledge and information. - John S. McClenahen
