All posts by Amelia Jacobs

About Amelia Jacobs

Amelia Jacobs began her career in business following a surprisingly successful trip to China. Having visited the region as a tourist, she returned to America as an import-exporter. Today, Jacobs runs a thriving import-export company, splitting her time between Chicago and Shanghai. Contact Amelia at amelia[at]businessdistrict.com

Global Markets Rally on News of US Budget Deal Shaping Up

News, , ,

Optimism prevailed on Wednesday on the world markets as news of an agreement to avoid the US ‘fiscal cliff’ reached investors. Political leaders in the US need to reach an agreement before January 1st, when across-the-board budget cuts and tax increases will go into effect automatically. Economists and other analysts fear that these automatic measures, which are in place to cut the US budget deficit, will send the US economy back into recession.

After lack of progress for weeks between Democratic and Republican lawmakers, several key players in the “fiscal cliff” negotiations have made moves towards a compromise, relieving the fear investors have had that a US recession was imminent, and sending global markets on a rally.

The FTSE 100 in Britain rose by 0.3 percent to 5,954.05. The DAX in Germany increased by 0.2 percent to 7,665.20. In France the CAC-40 rose by 0.3 percent to 3,659.05. Wall Street in New York will be well-placed to open higher, while Dow Jones industrial futures went up by 0.1 percent and S&P 500 futures rose slightly to 1,441.70.
 

November Auto Sales Posted Five-Year High

Automobile Industry, ,
Car Sales Rising

Creating a mood of optimism among auto industry executives, sales for vehicles rose to a five-year high-point for the month of November. Sales improved due to the aftermath of Hurricane Sandy which stimulated the purchase of new cars after many cars were destroyed in the storm, as well as consumers replacing ageing cars in a mood of optimism about the economy.

November’s sales rose by an exuberant 15 percent, selling 1.14 million vehicles, the highest sales figure for November since 2007, the last November before the recession wreaked havoc on the auto industry. The poor economy and crisis of 2008 led to a bottoming-out of demand for new cars and the eventual bankruptcy of Chrysler and General Motors.

“Vehicle sales are one of the encouraging spots of our economy,” said Gary Bradshaw, portfolio manager with Hodges Capital Management in Dallas.

Car sales help analysts predict the state of the economy as it’s an early indicator every month of US consumer confidence. Combined with the improved housing market auto industry executives are hopeful about the year to come, 2013.

“Looking at the national picture, the apparent recovery in housing that we talked about last month and the encouraging new data on consumer sentiment and confidence are all positive factors,” Kurt McNeil, GM’s vice president of U.S. sales operations, said.

Geithner Urges Republicans to Relent on Tax Hike Proposal

Economy, News, , ,
Treasury Secretary Timothy Geithner

The two sides of the deficit issue took to the Sunday morning talk shows airing their views on how to approach the looming fiscal cliff. The deadly combination of tax hikes and spending cuts will be automatically triggered at the end of the year if no compromise deal is reached between the sides.

Secretary of the Treasury Timothy Geithner, and Obama’s chief negotiator, urged Republicans to give specific ideas on ways to cut the deficit during his interview on CNN’s “State of the Union” television broadcast. He even predicted that the Republicans will agree to raise taxes on the wealthiest Americans in order to reach a deal by the end of the year and avoid and economic catastrophe.

Speaking on “Fox News Sunday” Republican Speaker of the House John Boehner begged to differ and reiterated his position against tax hikes, leaving the debate at an impasse.

"Here's the problem," Boehner told "Fox News Sunday" as both sides took their battle to TV talks shows. "When you go and increase rates, you make it more difficult for our economy to grow," he said.

Boehner added that if Republicans in the end did give in to Obama’s demand for $1.6 trillion in new tax revenue, “He’s going to spend it,” and not lower the deficit with the funds.

The Obama camp believes that they have the upper hand on the issue, giving Geithner the confidence to reiterate his stand that, "There's not going to be an agreement without rates heading up."

Polls show that most Americans support tax increases on the rich, and a few dissenters in what was in the past a solid wall of Republican opposition to such a move has convinced the Obama side that they will prevail on this issue.
 

America’s Cars are Older Than They Have Ever Been

Automobile Industry, ,
America's Ageing Autos

Americans are more hesitant than ever before when it comes to deciding to throw away their old autos and upgrade to a new one.

A new study shows that the average age of cars being driven on America’s highways has climbed to 10.8 years, a record. Last year the age of the average vehicle was slightly less, 10.6 years old. Back in 2008, 10 years was the average age for cars in the US.

The research firm of Polk, which specializes in automotive research, affirmed these figures.

Since 2008 the average age of America’s cars has been on the rise, but last year’s rebound in car sales will most likely slow the auto’s aging rate, according to Polk. Last year auto manufacturers sold 12.8 million cars in the US, a rise from 11.6 million in 2010. The expectation of experts on auto sales is that the buying trend will continue to rise in 2012.

Chevy Volt Electrifies Consumers

Automobile Industry, Tech News, , ,

A Consumer Reports customer satisfaction survey puts the Chevrolet Volt at the top of its list, showing a whopping 93% of those polled saying they would “definitely” buy this car again if given the chance.

CR however released the results of their survey with this caveat: at the time when the survey was taken the Volt was only available in a few states, and had only been purchased by a few thousand customers. The car has only been in car dealer showrooms for one year, since December, 2010.

The Volt is a plug-in car, requiring electricity from an outside source to recharge its battery. Chevy says customers can expect to be able to drive about 40 miles on one charge, and for trips requiring longer drives there is a gasoline engine as a back-up.