QUOTE
World economy switches engines as US shudders: OECD
By Brian Love, European Economics Correspondent
Reuters
Tuesday, November 28, 2006
PARIS (Reuters) - The U.S. economy is running out of steam but Europe's resurgence and Asia's awakening will prevent the world's economy from derailing as it did after the stock market crash of 2000, the OECD said in a report on Tuesday.
"Rather than a major slowdown, what the world economy may be facing is a rebalancing of growth across OECD regions," said Jean-Philippe Cotis, chief economist at the Organization for Economic Cooperation and Development.
In a twice-yearly Economic Outlook, the OECD forecast growth decelerating next year to 2.5 percent across its 30 mainly rich, industrialized member countries from 3.2 percent this year, and regaining some speed in 2008.
China, India and other fast-growing emerging economies such as Russia would keep going healthily and Europe's comeback this year contributed toward a "rebalancing" of global demand and output which mitigated the impact of a U.S. slowdown that would have spelled trouble for all in decades past.
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By Brian Love, European Economics Correspondent
Reuters
Tuesday, November 28, 2006
PARIS (Reuters) - The U.S. economy is running out of steam but Europe's resurgence and Asia's awakening will prevent the world's economy from derailing as it did after the stock market crash of 2000, the OECD said in a report on Tuesday.
"Rather than a major slowdown, what the world economy may be facing is a rebalancing of growth across OECD regions," said Jean-Philippe Cotis, chief economist at the Organization for Economic Cooperation and Development.
In a twice-yearly Economic Outlook, the OECD forecast growth decelerating next year to 2.5 percent across its 30 mainly rich, industrialized member countries from 3.2 percent this year, and regaining some speed in 2008.
China, India and other fast-growing emerging economies such as Russia would keep going healthily and Europe's comeback this year contributed toward a "rebalancing" of global demand and output which mitigated the impact of a U.S. slowdown that would have spelled trouble for all in decades past.
LINK
This gives 'left behind' a whole new meaning.
QUOTE
Orders for manufactured goods plunge
By MARTIN CRUTSINGER, AP Economics Writer
Tue Nov 28
WASHINGTON - Orders for big-ticket manufactured goods plunged in October by the largest amount in more than six years, in another sign of a slowing economy.
The Commerce Department reported Tuesday that demand for durable goods fell a larger-than-expected 8.3 percent last month to a seasonally adjusted $210 billion, reflecting a big drop in demand for commercial airplanes, a category that had soared in September.
It marked the third month in the past four that orders have either fallen or shown no gain, providing evidence that the nation's factories are beginning to feel the impact of the slowdown in the overall economy.
The 8.3 percent drop in orders for durable goods, items such as airplanes and autos that are expected to last at least three years, was the largest one-month decline since a 14 percent plunge in July 2000. It followed an 8.7 percent surge in September.
LINK
By MARTIN CRUTSINGER, AP Economics Writer
Tue Nov 28
WASHINGTON - Orders for big-ticket manufactured goods plunged in October by the largest amount in more than six years, in another sign of a slowing economy.
The Commerce Department reported Tuesday that demand for durable goods fell a larger-than-expected 8.3 percent last month to a seasonally adjusted $210 billion, reflecting a big drop in demand for commercial airplanes, a category that had soared in September.
It marked the third month in the past four that orders have either fallen or shown no gain, providing evidence that the nation's factories are beginning to feel the impact of the slowdown in the overall economy.
The 8.3 percent drop in orders for durable goods, items such as airplanes and autos that are expected to last at least three years, was the largest one-month decline since a 14 percent plunge in July 2000. It followed an 8.7 percent surge in September.
LINK
QUOTE
ECONOMY
Struggling U.S. dollar triggers currency concerns
Long-term threat of 'trade chaos' cited
BARRIE MCKENNA
WASHINGTON -- Renewed fears that the Chinese central bank may be poised to start liquidating its $1-trillion stash of U.S. dollars briefly drove the greenback to a 20-month low against the euro and a two-year low against the British pound in trading yesterday.
The euro surged to $1.3172 (U.S.) against the greenback and the pound to $1.9469, before losing ground by day's end. The loonie and the yen have also gained on the U.S. dollar in recent days.
The sudden weakness of the U.S. dollar began late last week, soon after Chinese officials suggested that holding a lot of dollars might be a losing investment strategy. Investors read that as a signal that the massive trade and financial imbalances between Asia and the U.S. may be about to unwind.
The chief worry is that if China's central bank -- the largest foreign holder of U.S. dollars -- begins to unload its reserves, the dollar will plunge. With China's yuan effectively pegged to the dollar, other leading currencies would move higher after the realignment.
Globeandmail LINK
Struggling U.S. dollar triggers currency concerns
Long-term threat of 'trade chaos' cited
BARRIE MCKENNA
WASHINGTON -- Renewed fears that the Chinese central bank may be poised to start liquidating its $1-trillion stash of U.S. dollars briefly drove the greenback to a 20-month low against the euro and a two-year low against the British pound in trading yesterday.
The euro surged to $1.3172 (U.S.) against the greenback and the pound to $1.9469, before losing ground by day's end. The loonie and the yen have also gained on the U.S. dollar in recent days.
The sudden weakness of the U.S. dollar began late last week, soon after Chinese officials suggested that holding a lot of dollars might be a losing investment strategy. Investors read that as a signal that the massive trade and financial imbalances between Asia and the U.S. may be about to unwind.
The chief worry is that if China's central bank -- the largest foreign holder of U.S. dollars -- begins to unload its reserves, the dollar will plunge. With China's yuan effectively pegged to the dollar, other leading currencies would move higher after the realignment.
Globeandmail LINK