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Matters Financial |
6 October 2003
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Detroit's Incentives aren't Helping
Detroit's car makers responded to the weak American economy of the last two years by offering car buyers incentives that seemed crazy, such as 0% financing. The chickens are coming home to roost now in the way of job cuts. Ford may cut as many as 12,000 jobs worldwide (3,000 in America last week), DaimlerChrysler is after a few thousand of its own (via early retirement), while General Motors has just announced more incentives on 2004 models while talk of 8,000 jobs lost is in the news. The vicious cycle continues. Click here to read more.
Commodities are Stable; The Dollar's Falling
Those who ignored the popular buzz and went long the commodities markets a year or two ago are awash in profits. Platinum is at a 20-year high (car makers need it for catalytic converters), nickel costs far more than a nickel trading at a three-year high, and copper (which goes into everything) is at a two-and-a-half year high. Rising commodity prices usually means a coming economic boom, and inflationary risk -- not necessarily so this time. Click here to read more.
Russian Utilities to Kidnap Pets
Russia's stock market hit a new nigh last week, and the country is a long way from the ruble crisis that wrecked the late 1990s for everyone. However, the former comrades still have a way to go in the simple matter of bill collecting. Nikolai Tkachev, chief of electricity company Dalenergo in the Far East, has announced a plan whereby those who don't pay their electricity bills may have their pets kidnapped and held for ransom. Click here for our view.