Financial Times (January 3, 2011)
Last year, the UK adopted austerity measures which slashed government spending and increased the value added tax to 20%. Most leading economists believe this big gamble to reduce the deficit is “likely to pay off.” A Financial Times survey of 78 leading economists concludes the recovery has “sufficient momentum to avoid a deep double-dip.” Only 13 of the surveyed economists believe the government will need to come up with an alternative plan to combat a downturn in the economy.
Tags: Austerity measures, Economic outlook, UK, VAT
Wall Street Journal (January 2)
Major U.S. companies are poised to increase spending during 2011. At the 419 nonfinancial companies in the S&P 500, cash increased by nearly 50% over pre-recession levels three years prior. Performance has also improved. “Total U.S. corporate profits in 2010’s third quarter rose 26% from a year earlier to $1.64 trillion, the highest in four years.” As a result, major companies are planning to increase spending on plants, technology, R&D and hiring. Corning, Cummins, GE, Honeywell and 3M were among the many examples cited by the Journal.
Tags: 2011 outlook, Cash, Corporate spending, Profits, U.S.
New York Times (January 1)
Just the same as any other day, New Years lasts 24-hours. Yet somehow it offers much more. The “chance to start over” is a most welcome event. Most fresh starts may be short-lived, but “Who can live without fresh intentions, new purposes? …. Life goes on, but it goes on so much better with hope and renewal and recommitment.”
