Inflation Erases Income Gains for April

Personal gains and income in America have vanished instantly due to alarming inflation and other high commodity prices. Find out how inflation wipes out all the possible gains and income for April?

After-tax incomes adjusted for inflation were unchanged for a second straight month. Real disposable incomes are up 1.2% in the past year, slightly more than the 0.9% increase in population.

Inflation moderated in April, with consumer prices rising 0.2% after a 0.3% gain in March. Prices of durable goods fell 0.3%. In the past year, consumer prices are up 3.2%, down from the peak of 3.6% in November.
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IMF Internal Audit Urges Major Changes on Governance

An evaluation report recently released by the Internal Auditors at the International Monetary Fund has forced them to call for urgent major changes in governance of the 185 countries, so to strengthen relevance and accountability so to continue playing as central role in global financial matters. There are some measures that IMF has suggested to back up the changes. Find out!

The study recommends the reorientation of the executive board away from operational activities to a more supervisory, strategic role and the strengthening of involvement of member nations' ministers in the implementation of the reforms.

The IEO released its report on governance following its discussion by the IMF executive board on May 21.

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Survey: 100 Best Companies To Work For

CNNMoney has recently released a copy of 100 top performing international companies that are best to work for. Google is at the number one slot. Find out more!

1. Google	6. Cisco Systems
2. Quicken Loans	7. Starbucks
3. Wegmans Food Markets	8. Qualcomm
4. Edward Jones	9. Goldman Sachs
5. Genentech	10. Methodist Hospital System
• See the top 50

Consumer Confidence Dips In May

With the stumbling global economy, it is expected too, that the consumer confidence will drop automatically. aside from its drop for the month of May, it is reported that the consumer confidence have dropped dramatically since 1992, with the worst drop this May. Generally, oil price, housing markets, inflation, financial turmoil and inflation have causes its drop.

"Consumers' inflation expectations, fueled by increasing prices at the pump, are now at an all-time high and are likely to rise further in the months ahead," said Franco. "As for the short-term outlook, the Expectations Index suggests little likelihood of a turnaround in the immediate months ahead."

Consumers anticipating business conditions to worsen over the next six months increased to 33.6% from 27.4%, while those anticipating business conditions to improve increased slightly to 10.4% from 10.1% in April.

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Global Stock Falls, Pinched By Costly Oil Price

Once again, the global stock markets have marginally slid down due to the $135 oil price that stroke inflation and makes earnings surged down. Unless the oil price subsided, the global stocks will hardly recover due to this global economic crisis.



"The real questions is are consumers going to take and ratchet back spending, and do it significantly. So there's earnings risk, to put it simply," he added.

Elsewhere on the economic calendar are Thursday's reports on weekly jobless claims and the second reading of first-quarter gross domestic product. The first GDP reading showed the economy grew at a slightly stronger pace than forecast.

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Global Stocks Rise, Triggered By Inflation

Investors worldwide are closely watching the trend in global markets, as it lately recorded a timid rise due to the effect of the surging oil price which recorded a new at $135 per barrel. On the other hand, worries are likewise increasing for a possible inflation rise.

"Inflation is currently driving the market," said Bob Maes, a fixed-income strategist at KBC in Brussels.

U.S. stocks rebounded modestly from two straight days of steep declines following a proposed major acquisition in the utilities sector and a sign of strength in the jobs market.

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More Gloom For Global Economy, Economists Say

The global economic growth has been lowering down since the beginning of the year and expected to continue over the coming six months according to the World Economic Survey? find out why.

Economists surveyed said rising inflation was the most urgent problem facing the global economy, and predicted an average worldwide inflation rate of 4.2%, considerably higher than the 3.2% figure envisioned for 2007.

At the same time, experts polled pegged growth of the world economy this year at 3%, well under the prediction for growth made last year of 3.5%.

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Another Possible Media Acquisition: CBS And CNET Networks

After the Yahoo and Microsoft controversial bid, another possible media acquisition, this time between CBS Network and CNET Online Network.





CNET online Network appeared to be a problem with performance and management. While CBS is aiming to conquer the Internet world, CNET decided to sell its online company. Thus, a possible $1.8 billion acquisition deal.

If the deal will be pushed through, CNET Online Network will be run by its new mother company, the CBS.


But at $1.8 billion, Thursday’s deal for CNET is the biggest by far in its recent Internet expansion.

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Icahn Urges Yahoo Board To Reopen Bid With Microsoft

Enraged with the unsuccessful bid with Microsoft, Yahoo top shareholder Carl Icahn is pressuring Yahoo board to reopen the talks between them and Microsoft Corporation. If the board fails to reopen a negotiation with Microsoft, Icahn is reportedly planning to oust its present Chief Executive Jerry Yang.


Yahoo Chairman Roy Bostock, on the other hand, backed up Yang and the Yahoo board by explaining in his letter to Icahn that the board has still independence and commitment to navigate the company through the changing Internet environment.

Bostock's letter came up after receiving a letter from Icahn, calling the current Yahoo board "irresponsible" and "unconscionable"

“I believe that a combination between Microsoft and Yahoo is by far the most sensible path for both companies,” Icahn wrote.

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US Mortgage Fraud Problems Are Increasing, FBI Says

Mortgage-related problems are escalating in US due to sub prime lending crisis. In a reports from FBI, more than 46 thousands mortgage fraud were being lodged to their desks. Those suspicious activity reports are now being investigated.

FBI Director Robert Mueller said last month that the bureau's investigation of potential fraud in the U.S. home mortgage industry now involves 19 companies.

He did not identify any of the companies targeted in the FBI's investigation, but said the law enforcement agency was focusing on accounting fraud, insider trading and deceptive sales practices.

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World Stocks Rise As HSBC, Crude Eases

HSBC, one of the leading banks in the world seemed to overcome the threats of credit crisis, which makes the global market sees a positive future outlook. On the other hand, the easing price of crude oil has also attributed to the world stocks to rise.

HSBC's results added to a growing perception among investors that banks are making solid strides in cleaning up balance sheets that have been hit hard by the nine-month-old credit crisis. The worst of the financial turmoil may have passed.

"There are signs that the financial market crisis is easing. Financial institutions are starting to offload bad loans and recapitalize," said Christine Li, European economist at Moody's research arm Economy.com.

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Citi Plans To Sell Its Finance Unit in Japan

Being affected with the financial crisis, the biggest US bank, Citigroup, is planning to sell its Japan's consumer finance unit. Find out why.

As part of the move, it is considering selling its Japanese consumer finance unit, although it is unclear if the bank can quickly finalize a deal and may thus resort to reducing operations first instead, the Nikkei said.

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A 60th Succesful Stocks History of Israel

Israel has celebrated its 60th successful years in stock markets. Now, as a developing country, Israel is being considered as one of the top rising countries in the world with its emerging markets on the forefront.

Israel's economy is best-known for pharmaceutical, medical equipment and technology companies. Its real GDP growth is expected to average 4.1% annually from 2008 to 2012, according to the Economist Intelligence Unit. Main exports from Israel include computer software, military equipment, chemicals and agricultural products.

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What's New in Technology?

As we invade the millenium age, technology proliferates around the world, making every moves and transactions at the fingertips of everyone. But these technologies have not yet satisfied the high-tech consumers. Just recently, technology and telecommunications leading companies are planning to build the first new generation of nationwide wireless data networks. What's new about this? find out!

The hope of the telecommunications industry is that users will begin using such service for a range of applications, including surfing the Internet on laptops and phones, and downloading music and video more often to those kinds of devices.

The disparate nature of the participants in the Clearwire partnerships also hints at the possibilities. Perhaps most significant is the participation of Google, the search advertising company, which has provided $500 million for the operation.

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US Unemployment Rates Getting Higher

The consequences of the economic turmoil in US has been starting to hamper the ordinary citizens of the states. As the economy falls, more jobs are being cut by some companies who had undergone deep financial crisis. Job cuts, has of course, resulted to increasing number of unemployment. How would the incoming US president address to this problem?

But economists warned against reading too much into one month's numbers. Rob Carnell, at ING Financial Markets, said: "Although the make-up of this payrolls report does not strike us as particularly convincing, and we continue to expect a more dramatic weakening in the months ahead, there is no denying that this month the figures have come in on the stronger side of our expectations."

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US Stocks falls on $120 oil price

Again, oil price have reached $120 per barrel, making the US stocks sharply fell. The decline also due to weak dollar and oil supply concerns.....

"It would ignite fresh fears that the credit crisis continues to deepen. A lot of people are saying we're in the end, but that's coming from people who would benefit the most from it," said Kevin Kruszenski, head of listed trading at Global Options, Beligum.

"The stock market is going to sell first, asks questions later," Kruszenski said.

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Is Jamaica Ready For Global Market?

Jamaica is now preparing to invade the global market! the question is: Will it survive from the stiff competition, knowing that competitors are highly regarded in economic development?

The JMA president further urged the Government to adopt a local procurement policy which he said would serve to safeguard small enterprises. The policy, he continued, would ensure that a certain percentage of government contracts are awarded to small businesses.

According to Azan, "valuable foreign exchange earnings are lost in instances when our primary school textbook contracts are awarded to overseas companies".

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Global market: Optimism means recovery

Global market has been the topic in every business sectors. There were even reports claiming that US economy was already in recession attributed by the unstoppble impacts of credit crunch, housing markets and deteriorated dollar. But global crisis is about to end according to some economic observers.



In Australia, an outgoing head of Aussie's biggest investment banking operation expressed optimism that aussie local market after months of struggle is now experiencing low-growth recovery.

Meanwhile, on the credit crunch issues, there are reports that the credit crisis will soon to relax. It seemed that investors are now looking at the positive side of the market, instead of insisting that the market had already fallen. Investors are only using the lesson they get from the crisis perhaps, that instead of pulling back, they take the initiative to try more profitable ways in business. Optimism works!

Likewise, there are also banks that believe credit crisis is finally over. the question is: Are these banks already gaining bank its economic strength? These banks confirmed that the crisis is still there but their positive outlook triggers them to believe that the crisis will soon over.


more on credit crunch issues...

US Stock market updates...

Here are some US stock market roundup...

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U.S. stocks fell, paring the best monthly advance for the Standard & Poor's 500 Index since 2003, after the Federal Reserve cut interest rates for a seventh time and said the economy remains weak.

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U.S. stocks ended lower after the Federal Reserve's latest rate cut after the market rallied earlier in the session fueled by better-than-forecast corporate earnings and first-quarter U.S. economic growth.
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U.S. stocks fell on Wednesday after the Federal Reserve cut interest rates but left its next move unclear, causing the dollar to slip and raising the chances of still higher commodity prices ahead.

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U.S. stock indexes lose momentum after surging near four-month highs, as investors debate the significance of words that came with the Federal Reserve's latest cut to short-term interest rates by 25 basis points to 2%. See full story.

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U.S. stock index futures rose on Thursday as a rebounding dollar sent commodities price lower, helping to calm inflation worries a day after the Federal Reserve signaled heightened concern about mounting price pressures.

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U.S. stocks fell on Wednesday after the Federal Reserve trimmed interest rates but left unclear the outlook for further rate cuts, prompting profit-taking as the Standard & Poor's 500 index ended its best month since December 2003.

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Is Credit Crisis Closer to the End?

Is US Economy recovering? This is the best question that can be asked in connection with the other crisis that threatens US economy.


Recently, Henry Paulson, the US Treasury Secretary, claimed that credit crisis is closer to the end, as he also said that economy is still growing.



The Bank of England also believed that the worst of credit crunch may be over, as it also believed that the economy is already in the path of recovery though, it would take months to finally say that the recovery is over, that is when the household begins to feel a much better life.

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