Economic fundamentals strong: PM

July 25th, 2011

Prime Minister Julia Gillard believes Australia’s underlying economic fundamentals are strong and ripe for reform despite unease in Europe and the US.

Ms Gillard was in Sydney on Monday to continue her hard sell of the government’s carbon price scheme against the backdrop of plummeting voter support and an uncertain global economy.

“There are European nations still struggling with big debt and high unemployment, and there is some nervousness in the American economy as well,” she told reporters.

“But when we look at Australia’s economy, we are in the part of the world that is continuing to grow strongly.”

There was underlying strength in the economy, Ms Gillard said, pointing to $430 billion of investment in the resources sector alone, along with a low unemployment rate and a strong budget position.

“We have those strong underlying fundamentals today because governments in the past have had the courage to step up with the big reforms that the nation needed,” she said.

Floating the dollar, reducing tariffs and introducing superannuation were not popular and were bitterly contested at the time.

“But we standing here in a strong and resilient economy because of those earlier waves of reform,” Ms Gillard said. Read more…

Tags: Economic Fundamentals, Strong

Group of Saab creditors demand debt be paid

July 24th, 2011

STOCKHOLM – SWEDEN’S state-controlled debt collector says that it has been asked to collect debt for eight of automaker Saab’s creditors.

Cristina Lindberg says that last week the agency reviewed 42 debt cases involving the insolvent automaker and eight creditors asked the agency to collect the debt.

Ms Lindberg could not say on Tuesday how much the debt is, though she added the agency would begin searching for ways to recover the money starting next week.

Saab was given a chance to resurrect production after the European Investment Bank earlier this month approved a US$40 million (S$48 million) deal to free up working capital.

Read more…

Tags: Debt, Debt Paid

Memphis-based Mueller Industries reports 44 percent jump in 2Q earnings

July 24th, 2011

Mueller Industries Inc. this morning reported a 44 percent jump in second quarter earnings on rising sales.

The Memphis-based manufacturer said net ie rose to $22.3 million, or 59 cents per diluted share, up from $15.6 million, or 41 cents, in the year-ago period.

Net sales were $652.9 million for the quarter, up nearly 21 percent from year-ago net sales of $540.4 million.

Much of the growth in sales, an estimated $90 million, was attributed to the continuing rise in the cost of copper, which averaged $4.16 per pound in the recent quarterpared with $3.19 a year ago, thepany said.

Despite the still-weak construction market, Mueller’s “financial condition remains strong,”pany chairman Harvey L. Kar

Read more…

Tags: 44 Percent, 44 Percent Jump, Earnings, Percent Jump

PepsiCo woos Hollywood Theaters, Stevi B’s away from Coca-Cola

July 24th, 2011

Six months after Coca-Cola won the rights to sell beverages at Starwood Hotels & Resorts, wrenching back the account from its main rival, PepsiCo has a couple of small wins of its own to brag about. One of them came right in Coca-Cola’s backyard.

Purchase, N.Y.-based PepsiCo will be the exclusive beverage provider in all 44 locations of Stevi B’s, a pizza buffet chain that had been a Coca-Cola customer since 1996.

In the second quarter, PepsiCo’s global beverage sales rose 5 percent as the company raked in revenue of $16.8 billion and profit of $1.9 billion — increases of 14 percent and 18 percent, respectively. But in North America, beverage sales slipped 1 percent despite growth from Sierra Mist, Pepsi Max, Gatorade and Trop50. <

Read more…

Tags: Pepsico, Pepsico Woos

Eurobond is the only salvation

July 22nd, 2011

Last week Italy’s 10-year bonds were threatened and the finance minister, Giulio Tremonti, responded by proposing a €40-billion austerity ­package.

Greece totters on the verge of default, Portuguese and Irish bonds have already been downgraded to “junk” status and the spread between French and ­German bonds is widening ominously. To paraphrase American economist Thomas Palley, the euro’s neoliberal architecture has traded currency stability for financial instability. Bond traders have become the masters of Europe.

The sovereign debt crisis has been brewing for some time, fuelled in part by the sheer incompetence of the eurozone’s political class. Cen Read more…

Oil tops US$100 for first time since early June

July 22nd, 2011

NEW YORK – Oil topped US$100 (S$121) per barrel for the first time since early June on Thursday as a private research group said the US economy should keep growing this year while European leaders discussed more financial aid for Greece.

The Conference Board said its index of leading economic indicators rose 0.3 per cent in June. The increase suggested the economy won’t fall back into a recession over the next few months, even with high unemployment and a weak housing market.

Officials in Europe prepared a new rescue package for Greece at an emergency summit in Brussels. The move strengthened the euro relative to the dollar.

Read more…

Tags: Early June, First Time, June