>From this morning's Globe and Mail: The main culprits are weak demand in Europe, slowing growth in China, and a U.S. economy that appears to be losing speed.
Profits are likely to drop 1 per cent from the same quarter last year, according to analysts polled by research firm S&P Capital IQ, which would be the first negative figure since 2009. "We have real headwinds out there," said Sam Stovall, chief equity strategist at Capital IQ in New York. "It's a decelerating earnings growth environment." http://www.theglobeandmail.com/globe-investor/global-slump-eroding-us-profits/article4401690/ Ed ----- Original Message ----- From: Arthur Cordell To: [email protected] ; 'RE-DESIGNING WORK, INCOME DISTRIBUTION,EDUCATION' Sent: Monday, July 09, 2012 1:04 PM Subject: [Futurework] Roubini: My 'Perfect Storm' Scenario Roubini: My 'Perfect Storm' Scenario Is Unfolding Now Published: Monday, 9 Jul 2012 | 6:11 AM ET "Dr. Doom" Nouriel Roubini, says the "perfect storm" scenario he forecast for the global economy earlier this year is unfolding right now as growth slows in the U.S., Europe as well as China. In May, Roubini predicted four elements - stalling growth in the U.S., debt troubles in Europe, a slowdown in emerging markets, particularly China, and military conflict in Iran - would come together in to create a storm for the global economy in 2013. "(The) 2013 perfect storm scenario I wrote on months ago is unfolding," Roubini said on Twitter on Monday. Chinese inflation data released on Monday, suggested that the economy is cooling faster than expected, while employment data out of the U.S. on Friday indicated that jobs growth was tepid for a fourth straight month in June. Roubini said that unlike in 2008 when central banks had "policy bullets" to stimulate the global economy, this time around policymakers are "running out of rabbits to pull out of the hat." Policy easing moves by the European Central Bank (ECB), Bank of England (BoE) and the People's Bank of China (PBoC) last week did little to inspire confidence in global stock markets. "Levitational force of policy easing can only temporarily lift asset prices as gravitational forces of weaker fundamentals dominate over time," he said. Bill Smead, CEO of Smead Capital Management, agrees that there is little central banks can do arrest the global slowdown. Last week, he told CNBC that there is "virtually zero chance" that pump-priming by central banks will succeed, suggesting that policymakers should instead let the economic bust work itself through the system. © 2012 CNBC.com ------------------------------------------------------------------------------ _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
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