June 2008 Archives

The Dow Jones industrial average (.DJI) fell 43.48 points, or 0.38 percent, to 11,303.03. The Standard & Poor's 500 Index (.SPX) dropped 1.87 points, or 0.15 percent, to 1,276.51. The Nasdaq Composite Index (.IXIC) declined 13.07 points, or 0.56 percent, to 2,302.56.

AFP/Getty Images Photo: A sign advertises easy credit at a used car dealership in May 2008 in Chicago....

Copyright © 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.



Full Story: Financials, record oil send stocks lower (Reuters)

CHICAGO (Reuters) - Business activity in the U.S. Midwest contracted in June for a fifth straight month but at a less severe rate, even as production and new orders both slipped, a report showed on Monday.

The National Association of Purchasing Management-Chicago business barometer rose to 49.6 from 49.1 in May, and was the strongest since January.

"The fact that we are hanging around 50 is consistent with an economy that is hovering right above recession level, but is not in a recession," said Mark Vitner, economist at Wachovia Securities in Charlotte, North Carolina .



Full Story: Midwest business activity less weak in June (Reuters)

Firstsource will provide a suite of BPO services covering both voice and back-office in areas such as customer accounting, VAS provisioning, fraud and credit monitoring, the company said on Wednesday.

Firstsource's services will also cover collections, customer service and customer retention, amongst others, from its centres in Chennai and Mumbai, the release said. The company will also set up centres in Vashi and Chennai for Airtel and expects to have over 1,000 employees in the first year focussed on providing services in English and eight other regional languages to Airtel's customers.

Full Story: Firstsource, Airtel in 3-year outsourcing pact

The broad idea is to help freshers and high-potential employees develop soft skills not generally taught at universities, and simultaneously increase retention rates in an industry that has attrition rates between 30 and 50 per cent.

The industry, according to Nasscom estimates, accounts for almost $11 billion and employs slightly over 700,000 professionals (in terms of direct employment). The Aegis BPO Ace programme, which addresses work-life issues, is based on employee feedback. The company initially invested close to Rs 6 crore to design the curriculum.

Full Story: BPOs design in-house curricula to train staff

The History, Jokes, Easter Eggs and Comic Strips. The light side of Linux you didn't know about.



Full Story: The Light Side Of Linux

The first alpha release of Ubuntu 8.10, codenamed Intrepid Ibex, was made available on Saturday. This preliminary Intrepid prerelease includes updated packages, a new version of the Linux kernel, and an experimental new visual style.



Full Story: Horny for Ubuntu 8.10: first look at Intrepid Ibex

F ew would dispute the fact that investors today are better informed as opposed to their counterparts from previous generations. The barrage of investment advice and information from various quarters is largely responsible for this phenomenon.

However, the prevalence of investment myths is something that hasn't changed over the years. And acting on a myth while getting invested, always has the same result -- an incorrect investment decision.

1. It's too early to plan for retirement If you are in your 20's and comfortably placed in terms of your career, retirement planning is unlikely to be high on your 'to do' list. Instead, buying a car, going on vacation to exotic locations and acquiring the latest gizmos are likely to have more appeal. Nothing wrong with that, but this shouldn't be at the cost of retirement planning.



Full Story: 5 investment myths debunked

T hese are interesting times for investors. The testing market conditions have finally offered them the opportunity to appropriately evaluate their investments.

Over the past few years, when equity markets rose almost secularly, the investment scenario became rather skewed.

As a result, some prudently managed funds ended up looking rather mediocre and some mediocre funds managed to pitch in noteworthy performances.



Full Story: Have infrastructure funds delivered?

may be hesitant to raise interest rates ahead of the U.S. election in November, although there is no hard evidence to support the widely held view that politics influences monetary policy.

The Fed has raised rates in election years, as well as leaving them on hold or cutting. As a result, there is no pattern to confirm the strong sense that the central bank prefers to hold fire as Americans go to the polls.

Nonetheless, economists say the case for rate increases would have to be particularly convincing for the Fed to act.



Full Story: Election could delay Fed rate rise until December (Reuters)

Chicago Cubs play baseball. That is a luxury he is not giving up, despite high gas prices and other strains on his wallet.

But he is cutting back on hot dogs and beer at the relatively expensive concession stands at Wrigley Field. "I try to spend less at the game," said Holzhammer, 55. "I came up with three high-school boys and I had them eat outside the ballpark." Even in an economic downturn, fans still go to sports games, and some leagues are setting attendance records, but such statistics hide a more complicated story on the effect of a weakening U.S. economy on sports.

In a Reuters/Zogby survey on June 12 to 14, almost 15 percent of those polled said they are attending fewer sporting events this year, and most of those people cited the weak economy as the reason. About 28 percent are spending less on food and souvenirs.



Full Story: Sports attendance up, hot dog spending down (Reuters)

US-based buyout fund Carlyle, Providence Equity Partners, Warburg Pincus and Blackstone are understood to be exploring a buyout of Temasek's holding in Mumbai-based pure-play business process outsourcing firm Firstsource.

The news triggered the company's share price to rise 6.76 per cent on the Bombay Stock Exchange (BSE) to close at Rs 43.45 on Tuesday. Warburg Pincus has a stake in WNS, a BPO company, while Blackstone has a majority stake in Intelenet. "By the end of the day, they are private equity funds and they will look at monetising their holdings in portfolio companies," said a source.

Full Story: Firstsource suitors eye Temasek's holding

] proposed 6 million tonne steel plant in Kalinganagar, Orissa, the Tata group is setting up a business process outsourcing unit on the proposed site.

The rural BPO centre will be established by the Tata Business Support Services -- the BPO wing and a wholly-owned subsidiary of Tata Sons -- in partnership with Tata Steel Rural Development Society -- a corporate NGO managed by the Tata Group for the last 60 years. To start with, it is expected to employ around 200 people. Sources close to the development said the company has already recruited the first batch of the executives for the BPO unit, who are expected to undergo two months of training at TBSS' headquarters in Hyderabad.

Full Story: Tata rural BPO to come up near Orissa steel site

We Linux folk are the reliable early adopters of innovative applications like Skype who have done a disproportionate amount of work to make it popular. The gift horse we've gotten in return is a usable but much less feature-rich version that is years behind the other platforms.



Full Story: Skype for Linux: Where's the R-E-S-P-E-C-T?

SourceForge, the world’s largest development and download repository of Open Source code and applications, appears to blocked in Mainland China on the eve of Beijing 2008 Olympic Games.The current blocking may be related to the recent anti-China protests of Beijing Olympic Games, which began on 8 August in Beijing.



Full Story: Sourceforge.net Blocked In Mainland China

I n the past few years, the banking sector has given great returns. On January 14, 2008, it touched a high of 12,678.98. Four years ago it was hovering at around 3,000 levels.

Over these years, the BSE Bankex has delivered an annual return of 35 per cent. Last year it impressed with a 61 per cent return, far ahead of the 47 per cent delivered by the Sensex.

From the turn of the century, the industry has been growing at 20 per cent per annum. And it is estimated that in the coming years, Indian banks are expected to grow at 35 per cent per annum.



Full Story: Banking funds are good for every portfolio

W e receive several queries from investors on investment-related dilemmas. Irrespective of the nature of these queries, they help us understand the investor's perception on investments. Typically, such queries highlight the conflicts that investors face while making investments.

Getting into a dilemma while investing is a common phenomenon. It usually happens when investors are indecisive about two seemingly similar situations or investment avenues. If the dilemmas are not tackled early on, it could lead to a flawed investment decision, which can be disastrous for your finances.

These dilemmas are usually a result of the lack of knowledge among investors about various investment options. This leads to confusion about which investment option is most suitable in a given situation. In a bid to simplify things, investors look for answers that may have worked for their friend or colleague in the past.



Full Story: 5 common investment dilemmas

and pushed the saving rate to a 13-year high, but another report released on Friday showed confidence took a hit.

Commerce Department data showed U.S. personal spending rose by a greater-than-expected 0.8 percent in May, while a key gauge of inflation remained muted.

Some economists said the stronger spending would double the pace of U.S. growth in the second quarter from what they had been predicting before the data. There is a big question mark, however, over whether this will be sustainable.



Full Story: Consumer spending jumps as stimulus checks land (Reuters)

killed the market for trucks and SUVs and made it impossible for many drivers to swap out for more fuel-efficient, new cars.

Major automakers, including Ford Motor Co (F.N) and General Motors Corp (GM.N), and leading dealerships have warned that June sales plummeted and shoppers grew suddenly scarce.

Now the urgent question for investors has become whether the world's largest car market has hit bottom or whether an even deeper downturn awaits over the remainder of the year due to $4 per gallon gasoline and tighter credit.



Full Story: Auto sales: bleak, but is it the bottom? (Reuters)

Aegis BPO Services, an Essar Group business process outsourcing (BPO) company, is close to acquiring an 8,000-seater BPO firm in the Philippines. The exact size of the deal is not clear.

Aegis has been bullish on inorganic growth as its races to reach a turnover of $500 million (around Rs 2,000 crore) by 2010. Aparup Sengupta, managing director and CEO of Aegis BPO, had told Business Standard that the company was in talks with 7-10 companies for a 'strategic fit' and was looking at firms in the US, South America and the Philippines. The company has also stated its intent to invest anything between Rs 200 crore (Rs 2 billion) and Rs 1,000 crore (Rs 10 billion) to acquire these companies.

Full Story: Aegis eyes Philippine BPO

For instance, a digital advertising contract between India's second largest IT services provider Infosys Technologies and a major American newspaper group is threatening to become a rallying point for the brigade to regroup and renew attacks on outsourcing of management information systems (MIS) and key operations-related work to India.

Infosys Technologies, according to sources, signed an advertising outsourcing deal with Missouri-based Kansas City Star sometime last month. The daily, a part of the McClatchy Company that also publishes the Miami Herald, will outsource advertising production work for its new media/digital business to Bangalore. ] . "While the deal is not substantial in terms of payback, over the next three to five years, City Star has been looking at gaining the economy of scale in its production set-up over the past year by outsourcing digital media production across a few of its publications to different vendors," the source said.

Full Story: Media outsourcing attracts ire of US brigade

The first release after 1.0 in the development branch, give it good testing,



Full Story: Wine 1.1.0 Released

Steve Langasek has announced the availability of the delayed first alpha release of Ubuntu 8.10, code name "Intrepid Ibex": "Welcome to Intrepid Ibex Alpha 1, which will in time become Ubuntu 8.10. Alpha 1 is the first in a series of milestone CD images that will be released throughout the Intrepid development cycle. The primary changes from Hardy



Full Story: Ubuntu 8.10 Alpha 1 released - code name "Intrepid Ibex"

T he best way to create a good corpus for retirement is by investing at an early age. However, once you actually retire, it becomes even more important to choose the right instruments to park the accumulated funds.

real estate for regular rental income This is very important because the returns from the corpus would finally decide the kind of lifestyle you can afford.

Risk-return profile. Retirement is generally associated with safety. However, given the present levels of high inflation, investing in most fixed income instruments would give you a negative real rate of return. Further, rising inflation might upset retirement calculations quite badly.



Full Story: Retiring? Some quick money tips

O ver the last few years, when equity markets were surging northwards, balanced funds were relegated to the sidelines. Instead, equity funds, especially new fund offers were the season's flavour. Fund houses were busy launching a slew of infrastructure and global funds, among others.

And most advisors (taking a cue from the markets and fund houses alike), were busy piling up their clients' portfolios with equity fund offerings. As a result, several investors landed up with investment portfolios lop-sided in favour of equities. Expectedly the volatile equity markets have adversely affected such portfolios.

Then there are balanced funds with the mandate to invest at least 65 per cent of their portfolio in equities and the balance (35 per cent) in debt instruments. In effect, balanced funds offer investors the benefits of asset allocation, while investing in a single avenue.



Full Story: Is DSP ML Balanced Fund a good buy?

So in short, the deal is, you get the card, but the only way to use it is to rent a driver to which you have an incomplete access, thereby making your fruitful use of the card consistently dependent on Nvidia and, quite obviously, therefore limiting the control you as a supposed owner of the card really have over it



Full Story: Nvidia says no to free drivers, I say no to Nvidia

H olding your nerve in a bear market requires both sound knowledge and a cool head. If you can do so, you can both reduce losses and find profitable gems gathering dust. After all, it's worth remembering that that most revered of all investment prophets Warren Buffet eyes bear markets with a special gleam in his eye - for it's at such times that buying opportunities are available with handsome value in-built into their prices. Here are ten rules from a master trader to steer by in difficult times...

Flick the switch You'll never make rational investment decisions if you're mesmerised by the gyrating prices on your screen. Steel yourself not to look at prices, read market reports or talk to stockbrokers during trading hours. Markets are not going to turn for the better just because you will them to. And, as prices have fallen so far, it matters little if you miss the first inch of their eventual recovery.

Pound the streets You don't just need a sense of perspective; you need the widest possible perspective. The best investment opportunities are those you discover by observation of the workings of the economy in the aftermath of the stock market collapse. If you can bear it, take the taxi driver litmus test.



Full Story: 10 rules for investing in a bear market

33 years ago. All the extra money helped to push consumer spending up by the biggest amount in six months, but economists warned the boost would likely prove short-lived given all the other problems now facing consumers.

The Commerce Department reported Friday that after-tax disposable incomes jumped by 5.7 percent in May, the biggest one-month gain since a 6.3 percent increase in May 1975 when Ford was president. He was fighting a recession that year with a program to mail individual taxpayers $50 checks.

This time around, individual payments range from $300 to $600 with couples getting up to $1,200. In all, $48.1 billion in rebate payments were made in May and through this week, the government announced Friday, payments total $78.3 billion — three-fourths of the $106.7 billion scheduled to be paid to 130 million households. The payments are to be completed by mid-July.



Full Story: After-tax incomes and spending show big gains (AP)

Collection of IRC clients for Linux



Full Story: 10 IRC Client for Linux

Curiosity about European gas prices inspired one of three questions in this edition of "Ask AP," a weekly Q&A column where AP journalists respond to readers' questions about the news.

If you have your own news-related question that you'd like to see answered by an AP reporter or editor, send it to newsquestions@ap.org, with "Ask AP" in the subject line. And please include your full name and hometown so they can be published with your question.

oil futures to hedge against the rising cost of gasoline, but it would not say how much it spent or its estimates of gasoline prices .



Full Story: Ask AP: Car buying incentives, European gas prices (AP)

scaled back their borrowing from the Federal Reserve's emergency lending program over the past week, while commercial banks stepped it up.

A Fed report released Thursday said the investment firms averaged $6.1 billion in daily borrowing for the week ending June 25. That compared with $8.6 billion the previous week.

The investment houses were given similar loan privileges as commercial banks in March after a run on Bear Stearns pushed the nation's fifth-largest investment bank to the brink of bankruptcy and raised fears that other Wall Street firms might be in jeopardy.



Full Story: Wall Street firms reduce, banks step up Fed loans (AP)

's aggressive period of cutting interest rates to keep the country from falling into a recession is over. That point is in general agreement. The trouble starts when you try to figure out what period the Fed has now entered.

Could the central bank keep rates unchanged for a considerable period? Yes, many analysts say, predicting that the Fed will leave rates alone until next spring.

However, other economists are still worried that the Fed could start ratcheting up rates much sooner than that, especially if this year's surge in oil prices does not soon abate.



Full Story: Fed signals aggressive rate cutting is done (AP)

W ith equity markets at their volatile best, doomsday scenario predictions are doing the rounds thick and fast. When the BSE Sensex was hovering around the 21,000 levels in the month of January 2008, irrational exuberance was the order of the day. Then, few investors would have foreseen a fall of over 30 per cent in the ensuing 6-month period.

Expectedly, the exuberance has been forgotten and despondency has set in. So what should investors do now? Remember the cliche - when everyone around you is losing his head, it's a good time to keep yours. Now's the time to put that in practice. In this article, we present a 4-point checklist of things to do now.

Get a reality check The volatile market conditions have presented an opportunity to get a reality check. In times of euphoria, the 'noise' from various quarters can make investors lose focus of their investment objectives and plans. Now is a good time to critically evaluate your investment portfolio. The present market volatility only underscores the high risk associated with equity investments.



Full Story: Shaky market? Here's what you should do

held interest rates steady Wednesday, ending nearly a year of cuts to bolster the economy, and hinted that the next direction for rates could be up.

Fed Chairman Ben Bernanke and all but one of his central bank colleagues agreed that the best course was to leave a key rate alone at 2 percent, as the country slogs through the crosscurrents of plodding economic growth and zooming energy and food prices that threaten to spread inflation.

That meant the prime lending rate for millions of consumers and businesses stayed at 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans.



Full Story: Fed holds rates steady for now (AP)

1 Prices in 20 big cities fell a record 15.3% vs. a year earlier, says S&P/Case-Shiller. The 10-city index sank 16.4%. Monthly price declines have slowed, but still are sharp. Meantime, the gov't OFHEO home price index fell 4.6% vs. April '07. Both reports track like-to-like home sales, but OFHEO includes only conforming loans , so it shows less of a price boom and bust.

Confidence Falls To 16-Year Low 2 The Consumer Confidence Index fell 7.7 points in June to 50.4, far worse than expected and the lowest since '92. The expectations gauge hit a record low. Americans are facing soaring energy costs, a weak job market and housing woes. Inflation expectations stayed at a record high, with buying plans at long-time lows.

S&P 500 0.3%. Financials rose on apparent bargain-hunting. The 10-year Treasury yield fell 8 basis points to 4.10%.



Full Story: IBD's Top 10 - Tuesday (Investor's Business Daily)

KDE hackers have been working on polishing the new features, desktop integration, and documenting and translating the packages. Several bugfixing sessions have been held and squashed bugs in the beta software. Testing and feedback on this release is appreciated and needed to make the final KDE 4.1 release in late July 2008 a splash.



Full Story: KDE 4.1 Beta 2 Released!

rose Tuesday on a report that consumer confidence fell in June more than economists expected, the latest another indication that higher gas and food prices are taking a toll on consumer spending. The market was also awaiting the results of the Federal Reserve 's two-day meeting on interest rates.

The Conference Board reported that its U.S. consumer confidence index sank to 50.4, far below forecasts of 56.5 and May's reading of 58.1. The research group also said its reading of consumers' expectations hit an all-time low as the economy continues to struggle.

With consumer spending accounting for two-thirds of the economy, the report raised concerns about economic growth in the coming months. Investors reacted by pulling their money out of stocks and into the relative safety of government bonds .



Full Story: Treasury bonds spike after more economic doubt (AP)

IT-BPO firms, which are already facing a US slowdown and currency fluctuations, are now busy in firming up their plans to tackle a rising inflation in the country and its impact on salary, sales, general and administrative (SG&A) and travel costs, which can dent their profit margins.

] do it during the year. If inflation continues throughout the year the firms would have to effect a mid-term hike or raise the salary by a good measure in the next financial year. Next in line comes transport costs as many transport associations are planning to increase their rates. The Maharashtra Call Centre Drivers' and Owners' Association (MCCDOA) has asked for an increase in remuneration. "All BPO units pay us Rs 6 per kilometre. Considering the increase in petrol and diesel prices, we now want the charges hiked to Rs 10 per kilometre," said Nana Kshirsagar, president, MCCDOA.

Full Story: BPOs grapple with inflation

on Monday urged oil-producing nations to boost their output and warned that soaring energy costs threatened to prolong a U.S. economic slowdown.

"This is a very, very important issue because the high price of oil is creating economic issues...and is a heavy burden for people around the world," Paulson said at a press conference with Mexican Finance Minister Agustin Carstens ahead of a conference of Latin American finance chiefs.

"In my judgment, it's got a very real risk of prolonging this economic slowdown, but this is not a situation that avails itself to a quick fix," he said, adding that both producers and consumers of oil needed to work together to cope with it.



Full Story: Paulson urges boost in oil output (Reuters)

A dvice on when you must invest in a mutual fund is available dime a dozen. But it takes a certain degree of expertise and proficiency to redeem your mutual fund investment at the right time. Since this is the dilemma that many investors grapple with, we have outlined the five most critical reasons for redeeming your mutual fund investment.

At the outset, it is important to note that the 'right time to redeem' does not mean that there is a timing element involved over here. Rather the right time to redeem means when the time is up on your mutual fund investment and it is no longer prudent to hold on to it.

While there may be several occasions to redeem your mutual fund investment, we have narrowed it down to the five most pervasive reasons.



Full Story: 5 reasons to sell your mutual fund

General Motors Corp initiated a series of steps on Monday from cutting production of trucks to offering aggressive incentives to combat the drop in demand for large vehicles amid record-high gas prices .

The production cuts and increased incentives come as the largest U.S. automaker struggles with a deepening slump in U.S. auto sales amid a consumer exodus from pickup trucks and SUVs.

"We really want to spark the market at the end of the month," GM's U.S. sales chief Mark LaNeve said. "We want to close the quarter strong." GM also said it hired Citigroup to help review its Hummer brand that the automaker is looking to sell or revamp.



Full Story: GM to cut truck output, offer interest-free loans (Reuters)

CHICAGO - Like a lot of people, Nate Towne is cutting back on spending. He's carpooling to work and only shops at grocery stores that take coupons or offer discount "rewards" cards.

He's not the only one who's stuck on candy. Americans buy billions of dollars worth of the stuff each year — with more than $29 billion in retail sales in 2007, according to the National Confectioners Association. That's about a 3 percent increase from the previous year.

That sizable sweet tooth is a big reason many analysts say the candy business is likely to fare better than other nonessentials in these economically trying times, even as prices for commodities such as sugar, milk and cocoa have risen.



Full Story: Candy a sweet spot in sour economy (AP)

NEW YORK (Reuters) - Gasoline is costing U.S. drivers a record $4.10 per gallon on average, but pump prices may be at a peak and could start to come down, an industry analyst said on Sunday.

"I suspect that oil prices have peaked and will flip further because of this news and the physical addition of more oil on the market in July," Lundberg said. "This gives a strong chance that pump prices are peaking now, or may already have done so." A barrel of oil has doubled in price over the past year, stoking inflation, triggering protests from Asia to Europe, and compounding the financial pain of U.S. consumers already grappling with a sagging housing market, job uncertainty and soaring food costs.

Top officials, policy makers and oil company executives met on Sunday in Jeddah, Saudi Arabia , for emergency talks on how to bring prices down.



Full Story: Gas prices climb to record $4.10 (Reuters)

Five ways you can record your desktop in linux.



Full Story: 5 Ways to Screencast Your Linux Desktop

W hen it comes to investing, it is commonly observed that investors tend to replicate the investment strategy followed by their colleagues, friends or relatives.

It is generally believed that an investment strategy that has worked for one will also work for others. However, this is the wrong approach, simply because 'one size does not fit all' while investing. Instead, investors need to build an investment portfolio that is right for them.

Building an investment portfolio requires the investor to put in a fair degree of thought and time. The need for the latter is only accentuated in light of the overwhelming choices available. In this article, we present a 4-step strategy that will help investors build an investment portfolio.



Full Story: 4 great tips for safe investing

The can-do, bootstrap approach embedded in the American psyche is under assault. Eroding it is a dour powerlessness that is chipping away at the country's sturdy conviction that destiny can be commanded with sheer courage and perseverance.

The sense of helplessness is even reflected in this year's presidential election. Each contender offers a sense of order — and hope.

Republican John McCain promises an experienced hand in a frightening time. Democrat Barack Obama promises bright and shiny change, and his large crowds believe his exhortation, "Yes, we can." Even so, a battered public seems discouraged by the onslaught of dispiriting things. An Associated Press-Ipsos poll says a barrel-scraping 17 percent of people surveyed believe the country is moving in the right direction. That is the lowest reading since the survey began in 2003.



Full Story: Everything seemingly is spinning out of control (AP)

and his colleagues is unlikely to lead to a boost in interest rates -- at least for now, economists say.

Even as central bank officials step up hawkish rhetoric, base rates will likely be held steady at 2.0 percent at a two-day meeting opening Tuesday of the Federal Open Market Committee , most analysts predict.

The Fed appears to be in a box with inflation pressures heating up even as the economy teeters on the brink of recession.



Full Story: Despite tough talk, Bernanke Fed unlikely to boost rates (AFP)

The Int'l Monetary Fund said the U.S. economic slowdown has been less than feared and a slow recovery should begin in '09. The group didn't mention recession in its annual review and urged the Fed to hold interest rates steady. The recommendation assumed inflation will be contained. The IMF sees GDP growth of 1% in '08 and 0.8% in '09 vs. its prior estimates of 0.5% and 0.6%, respectively.

The European Central Bank will have to raise interest rates unless the euro zone's service sector productivity improves to help offset higher commodity prices that are adding inflationary pressures, said policymaker Lorenzo Bini Smaghi. He suggested it was time to resurrect a failed plan to create a single European service market.

German producer prices rose 1% in May -- 6% vs. May '07 -- on a sharp hike in energy costs. It's the latest sign of mounting price pressures in Europe 's top economy. Mexico's central bank raised its key interest rate by 25 basis points to 7.75%. Inflation rose to 4.95% in May, the highest in over 3 year s.



Full Story: Economy - Friday (Investor's Business Daily)

Outlining his vision for a strong US economy, presumptive Democratic presidential candidate Barack Obama has said outsourcing of American jobs to India and China cannot be reversed.

"Revolutions in communications and technology have sent jobs wherever there's an internet connection, that have forced children in Raleigh and Boston to compete for those jobs with children in Bangalore and Beijing," Obama said in a speech in Raleigh, North Carolina.

"We live in a more competitive world, and that is a fact that cannot be reversed," he added.



Full Story: Jobs' outsourcing to India, China not reversible: Obama

Chrysler LLC , citing financial damage from high gasoline prices . GM shares fell 6.8 percent and Ford tumbled 8.1 percent.

Oil prices shot up 2 percent to $134.70 a barrel on Middle East tensions and a weak dollar , compounding already elevated fears about inflation and consumer spending. The session started on a negative note, as investors dumped commercial bank shares after Merrill Lynch said it sees dividend cuts and the need to raise more capital at Bank of America, Regions Financial, SunTrust Banks and Wachovia Corp .

Full Story: Dow closes below 12,000 on bank jitters, oil prices (Reuters)

Reuters - U.S. Treasury Secretary Henry Paulson is expected to urge that the Federal Reserve be given new powers to regulate Wall Street after the collapse of brokerage Bear Stearns Cos. Inc., U.S. media reported on Wednesday.

Full Story: Paulson to push for oversight reforms: reports (Reuters)

More Oil Tanks Business Related Stories:

AFP - France has put plans for European Union tax harmonisation on hold after Ireland's voters rejected the bloc's new reform treaty last week, finance minister Christine Lagarde said Thursday.

Full Story: French plans for EU tax reform on hold after Ireland vote: Lagarde (AFP)

More Oil Tanks Business Related Stories:

Reuters - White House hopeful Barack Obama said on Tuesday the weakness in the U.S. dollar reflects the soft economy and large trade deficits, and the best way to strengthen the currency is to restore the economy's health.

Full Story: Obama: Boosting economy best way to aid dollar (Reuters)

More Oil Tanks Business Related Stories:

AFP - UK blue chips closed higher on Tuesday, supported by gains from banks and miners and by hopes a spike in UK CPI may be temporary, but the FTSE 100 index ended well off the session peak as Wall Street fell back after poor US PPI data.

Full Story: London shares close higher lifted by banks, miners (AFP)

More Oil Tanks Business Related Stories:

Reuters - Record-high crude oil costs sent wholesale inflation soaring in May, but a key gauge of underlying price pressures likely moved ahead at a slower pace than the month before, according to a Reuters poll.

Full Story: May PPI seen up 1.0 percent on crude costs (Reuters)

More Oil Tanks Business Related Stories:

AFP - Inflation in the 15-nation eurozone hit a record 3.7 percent in May, pushed by soaring oil and food prices to the highest level since the single European currency was launched in 1999, official figures showed Monday.

Full Story: Eurozone inflation hits record 3.7 percent (AFP)

More Oil Tanks Business Related Stories:

Reuters - Stocks closed higher on Friday, helped by a government report that showed underlying price pressures rose moderately in May, easing fears that inflation would force a near-term rise in interest rates.

Full Story: Stocks rally as tame CPI calms inflation fear (Reuters)

More Oil Tanks Business Related Stories:

AP - Crises involving finance, food and fuel — the three Fs — are buffeting Asia and Europe, French Finance Minister Christine Lagarde said Sunday.Full Story: France sees '3 Fs' as economic challenge (AP)

More Oil Tanks Business Related Stories: