Anthony Chan
Anthony Chan
core cost early energy increases jump limited longer mature pass power pricing rest saw seeing today whenever
We still see limited penetration into the rest of the economy. It's too early to say you're seeing pricing power to pass on the energy cost increases just because you saw just a jump in the core PPI number. The world has changed. In the old traditional world, whenever you had mature expansion, you had pricing power. Today with globalization, that's no longer the case.
bank central consumer consumers continues encourage giving inflation lower numbers report spending whatever
The CPI report continues to be encouraging, ... These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.
factors good
There are a lot of good factors out there.
assured continue fed higher markets push rates remain short term
With this figure, markets can remain all but assured that the Fed will continue to push short term rates higher well into 2006.
confidence number pressure retail saw takes terrible
This confidence is encouraging and takes some of the pressure off the terrible number we saw with retail sales.
confidence consumer mild warned
Consumer confidence warned us already that this would be mild recession,
confidence confirm consumer continuing investor labor market notion numbers sentiment weak
These numbers confirm the notion that consumer spending, which has been so resilient, is under some threat. With investor sentiment so weak and the labor market continuing to deteriorate, consumer confidence had only one way to go -- lower.
declining deficit economic growth loss slight
A declining deficit may be signaling a slight loss of economic growth momentum.
economic fragile recovery
This economic recovery is a lot more fragile than most of us thought.
creeping housing rates seeing
You're seeing inventories creeping up and affordability pinching more and more, and you're seeing long-term rates creeping up. All that suggests a trimming of housing activity.
equity market oil positive potential prices rising
Oil prices have not been a positive for the equity market with the potential for rising inflation.
cautionary consumer impressive moving note numbers terror wake
The resiliency of the consumer is very impressive in the wake of so many terror warnings. One cautionary note is that, moving forward, these numbers may soften, as those warnings are still coming.
burden despite economic fact low population prior rate relative remains since unemployed
Despite the fact that the unemployment rate remains low relative to prior economic downturns, the burden on the unemployed population has been the most severe, by one measure, since at least 1972.
cyclical difficult factors increase means power pressure pricing push reduce
More globalization means there's more pressure to increase productivity, not to reduce it. No pricing power means there's more pressure to increase productivity, not less, ... There's so much pressure to push it higher, it will be difficult for cyclical factors to push it lower.