Few things before heading off to MA for the week. The weakened US dollar dropped further in comparative value to the Euro (though the pound is softening) on prospects of further interest cuts by the Federal Reserve bank which are intended to cushion the impact of failing lenders in the US/global credit markets.
The Euro, which is bolstered by government-protected economies over markets that comprise a larger whole than the US, is enjoying a resolute power @ 1.50 this week.In response, oil barrel prices rose to $103 for the first time, as oil becomes the central point of value in the world. Precious metals also belted a rise.
Europeans have long embraced/endured high petrol prices so they are somewhat immune to the current world market fluctuations in terms of how they use petrol.
Expect to see energy dependent stocks drop on poor earnings – food carriers, restaurant chains, and discretionary spenders like Home Depot and Leowes, as US consumers have pulled back on spending in the previous two quarers. Economists predict an updturn in May of 2008.
Meanwhile, VW announces they will launch a diesel-electric hybrid in 2008 to European markets. The hybrid, based on their popular GOlf series, is expected to pull in 69.9 MPG and an emissions measurement of 84g/km. That’s better than the Prius or Civic hybrids at 104 & 116g/km comparatively.
Obama, assuming the assurance of the front runner and expected nominee for Democrats, began attacking George Bush, John McCain and Republican financial policies in advance of the summer conventions.
And winter doldrums are upon us.