Aug. 26 (Bloomberg) -- Democratic presidential candidate Barack Obama's nominating convention finished its first night with rousing tributes from his wife, Michelle, and the party's unofficial patriarch, Senator Edward Kennedy of Massachusetts.
During speeches last night, both promised that Obama would forge a new political path, fight for all Americans and ensure universal health care. Obama said voting for her husband would mean listening ``to our hopes instead of our fears.''
Kennedy ended his speech with an echo of his closing line in 1980, when he dropped his own bid for the presidency in favor of Jimmy Carter. Back then, he said, ``for all those whose cares have been our concern, the work goes on, the cause endures, the hope still lives and the dream shall never die.''
Last night, Kennedy passed the torch to Obama. ``The work begins anew, the hope rises again and the dream lives on,'' he said to thunderous applause from the standing audience.
A report about a possible plot to kill Obama marred the evening as the festivities were concluding. Police in the Denver area arrested three people on suspicion of conspiring to shoot Obama on Aug. 28, the night he delivers a speech formally accepting the Democratic nomination.
Obama spokeswoman Jen Psaki declined to comment on the arrests.
Kansas City
Obama was in Kansas City last night and watched his wife on TV at the home of a local family. He appeared via satellite after his wife finished speaking and his daughters Malia, 10, and Sasha, 7, joined her on stage. As his daughters blew kisses and shouted ``Hi Daddy!'' Obama told the crowd he would see them ``on Thursday.''
In her speech, Michelle Obama, 44, said her husband emerged from humble beginnings with an understanding of the need to serve and inspire. She spoke of visiting the Chicago neighborhoods where Obama worked as a community organizer and how he told people not to settle for ``the world as it is.'' His words ``stayed with me ever since,'' she said.
``He urged us to believe in ourselves -- to find strength within ourselves to strive for the world as it should be,'' she said. ``And isn't that the great American story?''
Clinton
In keeping with the campaign's effort to play up party unity at the Denver convention, Michelle Obama also paid tribute to her husband's former rival for the Democratic nomination, New York Senator Hillary Clinton. Clinton's success in the primaries means that her daughters ``can dream a little bigger and aim a little higher,'' Michelle Obama said.
Her 16-minute speech was peppered with anecdotes about the couple and their two daughters and offered a humanizing portrait of the candidate, who has endured criticism from Republicans, and even some Democrats, for appearing aloof and elitist.
At one point, she talked about Obama ``inching along at a snail's pace'' as he drove their first daughter from the hospital. And she referred to the fact that Obama's father left him at a young age. With their own newborn, Obama was ``determined to give her something he never had: the affirming embrace of a father's love,'' Michelle Obama said.
``I come here as a wife who loves my husband and believes he will be an extraordinary president,'' she said in her first address to a broad audience of voters.
Family Affair
The night was a family affair. Marian Robinson, Michelle's mother, narrated a video about the next potential first family, and Michelle was introduced by her brother, Craig, head basketball coach at Oregon State University in Corvallis.
Obama, 47, an Illinois senator, earlier told reporters that his primary goal for the convention is to ``make the choice between myself and John McCain as clear as possible,'' referring to the presumed Republican nominee. ``I want people to come away saying, `whether I'm voting for the guy or against the guy, I know what he stands for,''' he said.
Before Michelle Obama spoke, the Democrats paid homage to Kennedy, who is suffering from brain cancer. A video chronicled the highlights of Kennedy's 45-year career, the third-longest in U.S. Senate history, and featured footage of the 76-year-old lawmaker filmed at his home in Hyannisport, Massachusetts.
His niece, Caroline Kennedy, introduced the video and linked Obama to ``Uncle Teddy's'' legacy as a standard-bearer of progressive ideals.
Shared Commitment
``Their stories are very different, but they share a commitment to the timeless American ideals of justice and fairness, service and sacrifice, faith and family,'' said Kennedy, the daughter of the late President John F. Kennedy. ``Leaders like them come along rarely. But once or twice in a lifetime, they come along just when we need them the most.''
Following the video, Edward Kennedy took the stage. He told the audience that electing Obama was a chance to ``break the gridlock and guarantee that every American -- North, South, East and West, young and old -- will have decent quality health care as a fundamental right and not a privilege.''
Earlier, former President Carter appeared on the stage, without speaking, after a video he filmed on the devastation Hurricane Katrina caused on the Gulf Coast in 2005.
Residents of New Orleans were stranded on rooftops and the federal government drew criticism for responding too slowly under Republican President George W. Bush. Obama ``will make sure this never happens again,'' Carter said in the video.
McCain
Out on the campaign trail, McCain, an Arizona senator, spent his day raising money in California and appearing on NBC's ``Tonight Show'' with Jay Leno. His campaign also kept up attacks on his opponent with advertisements focused on Obama's choice of Delaware Senator Joseph Biden as his running mate and lingering resentments among Clinton supporters.
McCain, 71, released a new ad featuring a female Clinton supporter from Wisconsin pledging to support McCain in the November election. That followed another ad keyed on Clinton, entitled ``Passed Over,'' which suggested that Obama picked Biden over Clinton because he was stung by her criticism during the primary campaign. Clinton, who addresses the Democratic convention tonight, decried both.
At least one Republican broke ranks with McCain yesterday. Former Iowa Representative Jim Leach, who lost his seat in 2006, addressed Democrats in Denver, saying Obama was a ``transcending candidate'' with the ability to reach across party lines.
``This is not a time for politics as usual,'' Leach said. He said he was convinced that Obama ``will recapture the American dream and be a truly great president.''
Aug. 26 (Bloomberg) -- Japanese companies are increasing overseas acquisitions, using their cash-hoards to snap up assets beaten down by the global credit crisis and economic slowdown.
The value of foreign purchases by Japanese companies this year has already topped 2007's total by 91 percent, according to data compiled by Bloomberg. That's the biggest gain among the world's 10 largest markets and contrasts with fewer deals in the U.S. and U.K., where credit is drying up after the subprime rout.
Takeovers by companies including TDK Corp. and Daiichi Sankyo Co. are putting Japan on course for its biggest buying spree since the 1980s bubble, when Japanese buyers overpaid for assets like New York City's Rockefeller Center and California's Pebble Beach Golf Links.
``Pebble Beach and those kinds of trophy assets, it's clear those were crazy deals, but now they're buying things that are earnings enhancing and using cash that's been generating no income to do it,'' said London-based Scott McGlashan, who manages Japanese stocks as part of J O Hambro Capital Management Ltd.'s $4.7 billion in assets. ``It's a very opportune time for Japanese companies looking to make acquisitions overseas.''
Japanese companies have cash equal to 11 percent of their assets, the second-highest amount after China among the world's 10 biggest equity markets, according to Bloomberg data.
Buying-Spree
Foreign purchases climbed to $48.6 billion so far this year from $25.4 billion for all of 2007, Bloomberg data show. The value of deals in the U.S. is down 67 percent from 2007 and U.K. acquisitions are off 66 percent as debt financing costs climb.
McGlashan said he is on the lookout for deals that mirror Daiichi Sankyo, Japan's No. 3 drugmaker, which has gained 11 percent since it agreed June 11 to buy India's biggest drugmaker Ranbaxy Laboratories Ltd. for $4.6 billion. Nikko Citigroup Ltd. analyst Hidemaru Yamaguchi boosted his share price estimate for Daiichi Sankyo by 7 percent after the purchase.
TDK, Japan's largest maker of magnetic heads for hard-disk drives, announced plans last month to acquire Germany's Epcos AG, which makes components for Nokia Oyj, for $1.87 billion. TDK paid 6.1 times Epcos's earnings before interest, taxes, depreciation and amortization, or Ebitda, less than the 8.7 times average for Epcos's 15 closest European peers.
``In general, M&A doesn't benefit the acquirer because it tends to occur during boom times when management is overconfident and they pay too much,'' said Seiichiro Iwasawa, chief strategist at Tokyo-based Nomura Securities Co. Ltd. ``Japan is unique because they remember their massive bubble-era failures and have such low confidence that they are being extremely careful to do deals that make sense.''
Takeda, Kirin
Pharmaceutical companies may use their above-average levels of cash to make purchases and food producers may pursue takeovers to grow outside Japan's shrinking domestic market, Iwasawa said.
Takeda Pharmaceutical Co., Japan's largest drugmaker, had $15.5 billion in cash and securities as of March 31, equal to more than half its total assets. The company agreed to buy U.S.- based cancer drug specialist Millennium Pharmaceuticals Inc. for $8.8 billion on April 10. Takeda shares gained 3 percent since then, beating the Topix's 2.4 percent decline.
Kirin Holdings Inc. spent more than $3 billion the past two years on acquisitions in Asia. The nation's biggest beverage maker has said it's ready to spend almost $3 billion more by 2010. The company yesterday agreed to buy Australia's Dairy Farmers for A$675 million ($580 million), adding to its lead as the country's largest seller of fresh milk.
The buying spree helped Goldman Sachs Group Inc. report record profit in Japan for the year ended March 31. The New York- based firm holds the top spot among merger advisers for deals where Japanese companies are acquiring overseas assets, according to Bloomberg data. UBS AG ranked second and Nomura Holdings Inc. was first among domestic companies.
`Buy for Profit'
Paul Sheehan, chief executive officer of Thaddeus Capital Management, a Hong Kong-based hedge fund, said companies are using foreign acquisitions to boost their size, rather than shareholders' wallets.
``The deals are nowhere near as accretive as returning cash to shareholders or buying domestic competitors and profiting through consolidation and cost saving,'' he said. ``I don't buy for growth, I buy for profit.''
Mitsubishi Estate Co. bought Rockefeller Center for $1.4 billion in 1989 and lost it seven years later after defaulting on the mortgage. Pebble Beach, the site of the 2010 U.S. Open, was snapped up by Japanese golf magnate Minoru Isutani in 1990 for $841 million. It was sold less than two years later at two-thirds the purchase price as Isutani's company went bankrupt.
Toshiba, Japan Tobacco
Recent buyouts have been more successful. Toshiba Corp.'s 2006 purchase of U.S. nuclear reactor designer Westinghouse Electric Co. is paying off as the unit's profit rose almost five- fold in the first quarter, paring an overall loss caused by weakness in Toshiba's semiconductor business.
Japan Tobacco Inc., which bought U.K.-based Gallaher Group Plc in 2007 in Japan's largest foreign takeover, expects gross profit in overseas markets to climb 10 percent this year, while domestic earnings are forecast to fall 15 percent as the number of smokers declines.
Aug. 26 (Bloomberg) -- Consumer confidence in August increased more than forecast in August as cheaper gasoline improved Americans' moods, a private report showed.
The Conference Board's confidence index rose to 56.9 from 51.9 in July. Separate reports showed new-home sales increased in July and home prices dropped at a slower pace in the second quarter.
A weakening labor market, falling home prices and higher inflation may curb consumer spending for the remainder of the year even as gasoline prices have fallen during the last six weeks. The confidence report does little to ease concern that economic expansion will slow after the effects of the federal tax rebates fade.
``It's very much a reflection of what's been going on in the energy markets,'' said Richard DeKaser, chief economist at National City Corp. in Cleveland. ``Confidence remains quite low, principally because of concerns about employment prospects.''
The New York-based Conference Board's confidence index was forecast to climb to 53, according to the median estimate of 70 economists surveyed by Bloomberg News. Projections ranged from 50 to 56.1. June's reading of 51 was the lowest since February 1992.
New-Home Sales
A report from the Commerce Department showed new-home sales in the U.S. increased 2.4 percent to a 515,000 annual pace, and the number of unsold homes on the market fell 5.2 percent, the biggest drop since November 1963, to 416,000.
The S&P/Case-Shiller home-price index showed home values declined 2.3 percent in the three months through June from the previous three months, compared with a 6.8 percent drop in the first quarter.
The Reuters/University of Michigan preliminary index of consumer sentiment for August increased less than forecast to 61.7 from 61.2, according to a report earlier this month. The measure averaged 85.6 last year.
Labor markets have a greater weight in the Conference Board's report than they do in the University of Michigan's, economists said.
Jobs Outlook
The share of people telling the Conference Board that jobs are hard to get increased to 32 percent, the highest since October 2003, from 30.2 percent in July. Those saying jobs were plentiful declined to 13.1 percent this month from 13.6 percent.
The share of respondents expecting fewer jobs in six months decreased to 30.6 percent from 37.3 percent.
The outlook for incomes was little changed. The proportion of people who expect their incomes to rise over the next six months increased to 14.7 percent from 14.3 percent last month, according to today's report. The gauge fell to a record-low 13.1 percent in June. Records began in 1967.
Economists forecast the Labor Department will report on Sept. 5 that the U.S. lost jobs in August for an eighth straight month.
The Conference Board's measure of present conditions decreased to 63.2 in August from 65.8 in July. A gauge of expectations for the next six months rose to 52.8 from 42.7 the prior month, the report showed.
Buying plans over the next six months increased for automobiles and major appliances. More Americans said they would consider buying a home than in July.
Gasoline Price
The average cost of a gallon of regular gasoline peaked at $4.11 on July 16, according to AAA. Prices yesterday were $3.67 a gallon.
Consumer spending probably will slow as the effects of the rebate checks diminish. Economists surveyed by Bloomberg earlier this month projected spending, which has grown every quarter since 1992, will stall in the last three months of the year.
Commerce Department figures released this month show retail sales in July fell for the first time in five months, signaling the boost from the tax rebates may already be fading.
Some companies are feeling the combined effects of the worst housing slump in a quarter century and a drop-off in consumer spending. Home Depot Inc., the world's largest home- improvement retailer, last week forecast a 24 percent earnings decline for the year.
Chief Executive Officer Frank Blake said in a statement that the Atlanta-based company sees ``pressure on our market and the consumer.'' Second-quarter sales fell 5.4 percent, the seventh decline in the past eight quarters.
Aug. 26 (Bloomberg) -- The dollar rose to a six-month high against the euro on evidence the greenback will be the main beneficiary from a global economic slowdown as German business confidence dropped in August more than forecast.
The U.S. currency increased to the highest level versus the Australian dollar in almost a year and gained versus the New Zealand dollar. Sterling declined to the weakest level versus the dollar in two years as an industry report showed mortgage approvals held last month near a decade low.
``The dollar is leaning heavily on bad news elsewhere,'' said Alan Ruskin, head of international currency strategy in North America at RBS Greenwich Capital Markets Inc. in Greenwich, Connecticut. ``The market is coming around to the view that the extremely high level in the euro-dollar is not justified.''
The dollar increased 0.7 percent to $1.4650 per euro at 10:30 a.m. in New York, from $1.4754 yesterday. It touched $1.4571, the strongest level since Feb. 14. The dollar rose 0.3 percent to 109.64 yen, from 109.30. The euro fell 0.4 percent to 160.63 yen, from 161.26 yesterday, after reaching 159.99, the lowest level since May 12.
The greenback has risen against all of the other major currencies this month. Its gains range from a 10.4 percent advance against the Australian dollar to a 1.4 percent increase versus the Mexican peso.
The ICE futures exchange's Dollar Index, which compares the greenback against the currencies of six U.S. trading partners, rose to 77.619, its highest level since Dec. 26.
The Aussie dropped 0.7 percent to 85.68 U.S. cents after reaching 84.94 cents, the weakest since September. The New Zealand dollar lost 1.2 percent to 69.54 cents.
Weaker Pound
The pound dropped 0.7 percent to $1.8403 after touching $1.8331, the lowest level since July 2006. Banks granted 22,448 loans for house purchases in July, down 65 percent from a year earlier, the British Bankers' Association said. The reading is up from 22,369 in June, the lowest since 1996.
The euro has lost more than 8 percent versus the dollar since touching an all-time high of $1.6038 on July 15. It decreased as the European economy contracted in the second quarter and crude oil dropped more than 20 percent from a record $147.27 a barrel set last month.
The Ifo institute's German business confidence index declined this month to 94.8, the lowest level in three years, from 97.5 in July. The median forecast of 35 economists surveyed by Bloomberg News was for a decrease to 97.2.
``The combination of incremental weakness in the European economy and moderating oil prices should keep the pressure on the euro,'' said Manuel Oliveri, a currency strategist in Zurich at UBS AG, the world's second-biggest currency trader.
Crude Oil
The euro dropped for a second day versus the yen and declined 0.4 percent to 2.3978 Brazilian reais as traders added to bets that the European Central Bank will cut interest rates next year. The implied yield on Euribor futures contract expiring in September 2009 fell 9 basis points, or 0.09 percentage point, to 4.29 percent. The yield averaged 18 basis points above the ECB's benchmark, currently 4.25 percent, from 1999 to August 2007.
Europe's currency pared losses today after crude oil for October deliver rose 2 percent to $117.47 a barrel. The euro- dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations. A reading of 1 would mean they moved in lockstep.
U.S. Confidence
The dollar rose against the yen as a private report showed consumer confidence increased in August more than forecast on cheaper gasoline prices. The New York-based Conference Board's confidence index rose to 56.9 from 51.9 in July.
The Commerce Department reported that U.S. new home sales rose to an annual rate of 515,000 in July from a revised 503,000 in the previous month. The median forecast of 76 economists surveyed by Bloomberg News was for a decrease to 525,000 from a previously reported 530,000.
U.S. economic growth may stall in the second half of 2008 as financial strains continue to tighten credit, said Dallas Federal Reserve Bank President Richard Fisher in an Aug. 25 interview with Dow Jones.
``Growth will taper down,'' Fisher said. ``I could see us approaching, certainly broaching zero.''
0 comments:
Post a Comment