By Shobhana Chandra (Bloomberg)
June 12 (Bloomberg) -- Employers in the U.S. plan to maintain hiring next quarter at the same pace as in the previous three months, according to a private survey released today.
Manpower Inc., the world's second-largest provider of temporary workers, said its employment index held at 18 percent for July through September, the same as in the second quarter. The gauge subtracts the percentage of employers planning to cut jobs from those who plan to add workers and adjusts the results for seasonal variations.
The report suggests the weakest pace of growth in four years hasn't discouraged employers from expanding payrolls. More jobs and higher wages are critical to sustaining consumer spending as fuel costs climb, house prices stagnate and interest rates rise.
``It's still a relatively stable market,'' Jeffrey Joerres, chief executive officer of Milwaukee-based Manpower, said in an interview. ``Companies are being cautious but continuing to add workers. It helps create optimism among people to continue to spend money.''
The economy has created an average 119,000 jobs a month so far this quarter, compared with 142,000 a month from January though March, according to figures from the Labor Department. The jobless rate held at 4.5 percent last month, close to a five-year low.
Before adjusting for seasonal variations, 29 percent of the roughly 14,000 companies surveyed by Manpower said they will add to payrolls in the third quarter, up from 28 percent in the previous three months. The figure was down from a year ago.
Seven percent said they'd trim payrolls in the coming quarter, and 58 percent anticipated no change from the prior quarter's pace of hiring, the survey showed.
Economic Growth
The economy grew at a 0.6 percent annual rate last quarter, the weakest since the last three months of 2002, according to figures from the Commerce Department.
Growth will pick up for the rest of this year, according to economists surveyed this month by Bloomberg News. The economy is likely to expand at a 2.6 percent annual pace this quarter and next, according to the survey's median estimate.
``Employment growth has held up quite well,'' Federal Reserve Bank of Richmond President Jeffrey Lacker said after a speech on June 6. ``There may be some labor hoarding going on, and if so, that is an indication of confidence.''
Three of the 10 industries surveyed by Manpower -- education, durable goods manufacturing and services -- projected an improvement in hiring next quarter compared with the previous three months. Less hiring at retailers and wholesalers led the five industries that said employment would decelerate.
Construction Payrolls
Construction companies, suffering through a second year of a homebuilding slump, and manufacturers of non-durable goods predicted little change in payrolls next quarter.
Demand for workers at commercial projects has helped offset some of the decline in residential real estate to prevent overall construction hiring from falling even more, economists said. Total construction payrolls have fallen by 54,000 since reaching a high of 7.7 million in September 2006.
Compared with a year earlier, employers in most industries were less inclined to add staff, the Manpower data showed.
``Companies are feeling OK about business,'' Joerres said. ``Not robust, but OK.''
Regionally, employers in the West predicted an improved pace of hiring in the third quarter from the prior three months, while those in the Northeast had weaker hiring plans, the Manpower survey showed. Job prospects in the Midwest and South were forecast to be the same as in the prior quarter.
Hiring Abroad
Outside the U.S., employers in all other 26 countries and territories surveyed by Manpower plan to add workers in the third quarter. Hiring activity will pick up in 14 countries and territories compared with the third quarter of 2006.
Globally, Singapore, Peru, India, Argentina, Australia, Japan and Hong Kong were among countries in the survey that reported the strongest hiring prospects for the coming quarter. Employers in Italy, Belgium and France had the weakest hiring intentions.
An acceleration in growth overseas is brightening the outlook for employment abroad, said Joerres.
``Employers in Europe are seeing real growth in demand,'' he said. ``They can't hold off any more and are hiring.''
Within Europe, the employment outlook rose the most in Norway and Germany for the coming quarter, the survey showed. Germany's outlook rose to 13 percent from 10 percent, while Norway's jumped to 22 percent from 14 percent.
India's employment outlook jumped to 39 percent for the third quarter from 31 percent in the prior three months, the survey showed. China's fell to 18 percent from 21 percent and Japan's declined to 16 percent from 45 percent. These figures aren't seasonally adjusted.
The Manpower survey is conducted quarterly and has a margin of error of plus or minus 0.8 percentage point in the U.S. and no more than plus or minus 3.9 percentage points for national, regional and global data.
Tuesday, June 12, 2007
Big payday for Blackstone CEO (Chicago Sun Times)
Blackstone Group LP, which is now preparing for an initial public offering, says Chief Executive Stephen Schwarzman made $400 million in 2006. That's almost double the compensation for the CEOs of Wall Street's five biggest investment banks -- combined. Schwarzman, 60, will receive $449.2 million and keep a 24 percent stake, Blackstone said in an SEC filing. Retiring co-founder Peter G. Peterson, 80, will get $1.88 billion and retain 4 percent of the company.
Monday, June 11, 2007
Porsche to Skip Detroit Auto Show (AP)
Porsche will skip Detroit's North American International Auto Show, focusing instead on shows elsewhere in North America, the German automaker said Monday. The decision is part of a wider effort to scale back appearances at trade shows where the opportunity for building customers has fallen, the Stuttgart-based company said in a statement.
"As part of the general reduction in trade-fair appearances which began two years ago, in favor of greater emphasis on direct contact with potential customers, motor show activities will in future be concentrated in the main sales areas," the company said, singling out auto shows in New York, Chicago, Los Angeles, Miami and Toronto.
The company's sales figures backed up its assertion, with more than 20,000 of the 36,669 cars it sold in fiscal year 2005-2006 coming from the U.S. east and west coasts. Detroit's auto show is scheduled to take place Jan. 19-27 with three days of media previews before it opens to the general public. Shares of Porsche AG rose 3.15 percent to 1,311 euros ($1,753.91) Monday.
Gas Prices Drop Seven Cents : Boost In Imports Viewed As Contributing To Ease Of Pain At Pumps
CBS/AP) The national average price for gasoline dropped seven cents in the last three weeks, according to a market survey. It's the first decline since January.
Trilby Lundberg, industry analyst and publisher of The Lundberg Survey, told CBS News that the "wonderful news is that, although prices gained a whole dollar this year, they're down seven cents because imports of gasoline are coming in to rebalance supply and demand."
The U.S. average for self-serve, regular-grade gasoline was $3.11 per gallon as of Wednesday. That's down from $3.18 in the last national survey May 18th.
Lundberg says the modest relief came thanks to a boost in imports of gasoline from foreign producers lured by record-high prices.
Lundberg, however, says the latest numbers don't portend any dramatic price drops. Despite the recent sag, prices still are up 93 cents since the start of 2007.
"Our refining capacity is still coming back from four months of terrific work projects and accidents, and imported gallons are making up the difference," Lundberg said. "That isn't going to change overnight, so we'll probably see a few more cents at the pump here and there over several weeks, but not 93 more cents worth."
Chicago had the nation's highest gasoline prices, at $3.61 per gallon for regular. Jackson, Miss., with regular gasoline selling for an average of $2.87 a gallon, had the nation's lowest average.
Lundberg said there are three main reasons to explain the great variety of gasoline prices around the country: "First is fuel taxes; second is the reformulation requirements for environmental regulations; and third is the cost of doing business is much higher in some areas than others."
Supreme Court rules against Philip Morris
Lawsuit filed against tobacco company cannot move to federal court
By William Spain, MarketWatch
CHICAGO - The U.S. Supreme Court handed Philip Morris a defeat on Monday, ruling unanimously that an Arkansas class-action lawsuit against the tobacco titan does not belong in federal court.
The decision reverses a lower court ruling that would have taken the case -- a lawsuit charging deceptive marketing practices of "light" cigarettes -- out of Arkansas state courts because the products are regulated by the federal government.
Philip Morris, a unit of Altria Group had argued that the Federal Trade Commission was a "federal officer" and because there was an agreement in place for uniform standards and tests on light smokes with it, the case qualified for federal court under a "removal statute."
But Justice Stephen Breyer, writing for the court, disagreed:
"The fact that a federal agency directs, supervises and monitors a company's activities in considerable detail does not bring that company within [the scope of the removal statute]," he said.
A contrary determination, he continued "would expand the statute's scope considerably, potentially bringing within it state-court actions filed against private firms in many highly regulated industries. Nothing in the statute's language, history or purpose indicates a congressional intent to do so."
The case, Watson et al v. Philip Morris charged that the company violated state laws against unfair and deceptive business practices, specifically with its advertisements and packaging on light brands. The suit alleged that the company manipulated cigarette design and used other techniques that caused its cigarettes to register lower levels of tar and nicotine on an industry standard test than smokers would actually get.
The company shrugged off Monday's decision, saying it does "not negatively affect the ultimate outcome" of the case or similar cases around the country.·
"Today's ruling is narrow and merely determined whether the Watson case should be heard in federal court or state court," said William Ohlemeyer, Philip Morris USA's associate general counsel. "We have compelling defenses to the Watson claim that have been advanced in state courts."
But at least one anti-tobacco group hailed the ruling.
"Today's unanimous opinion is terrific news for the Arkansas plaintiffs in the Watson case, since it has reversed an overbroad and historically inaccurate opinion," said Edward Sweda, senior attorney for the Tobacco Products Liability Project.
He said the decision will also "benefit plaintiffs and their attorneys in other 'light' cigarette litigation since Philip Morris' attempt to evade state law simply by virtue of the fact that it is regulated has failed."
Shares of Altria were flat at $70.30 in midday action
By William Spain, MarketWatch
CHICAGO - The U.S. Supreme Court handed Philip Morris a defeat on Monday, ruling unanimously that an Arkansas class-action lawsuit against the tobacco titan does not belong in federal court.
The decision reverses a lower court ruling that would have taken the case -- a lawsuit charging deceptive marketing practices of "light" cigarettes -- out of Arkansas state courts because the products are regulated by the federal government.
Philip Morris, a unit of Altria Group had argued that the Federal Trade Commission was a "federal officer" and because there was an agreement in place for uniform standards and tests on light smokes with it, the case qualified for federal court under a "removal statute."
But Justice Stephen Breyer, writing for the court, disagreed:
"The fact that a federal agency directs, supervises and monitors a company's activities in considerable detail does not bring that company within [the scope of the removal statute]," he said.
A contrary determination, he continued "would expand the statute's scope considerably, potentially bringing within it state-court actions filed against private firms in many highly regulated industries. Nothing in the statute's language, history or purpose indicates a congressional intent to do so."
The case, Watson et al v. Philip Morris charged that the company violated state laws against unfair and deceptive business practices, specifically with its advertisements and packaging on light brands. The suit alleged that the company manipulated cigarette design and used other techniques that caused its cigarettes to register lower levels of tar and nicotine on an industry standard test than smokers would actually get.
The company shrugged off Monday's decision, saying it does "not negatively affect the ultimate outcome" of the case or similar cases around the country.·
"Today's ruling is narrow and merely determined whether the Watson case should be heard in federal court or state court," said William Ohlemeyer, Philip Morris USA's associate general counsel. "We have compelling defenses to the Watson claim that have been advanced in state courts."
But at least one anti-tobacco group hailed the ruling.
"Today's unanimous opinion is terrific news for the Arkansas plaintiffs in the Watson case, since it has reversed an overbroad and historically inaccurate opinion," said Edward Sweda, senior attorney for the Tobacco Products Liability Project.
He said the decision will also "benefit plaintiffs and their attorneys in other 'light' cigarette litigation since Philip Morris' attempt to evade state law simply by virtue of the fact that it is regulated has failed."
Shares of Altria were flat at $70.30 in midday action
Rexam raises 285.9 mln stg in placing for O-I Plastic buy
LONDON (Thomson Financial) - Rexam PLC said it has placed 58,354,700 new shares at 490 pence each, raising 285.9 mln stg before expenses, to part-fund the acquisition of O-I Plastic Products FTS Inc.
The beverage can maker announced this morning it would buy the US manufacturer of rigid plastic healthcare packaging for 1.8 bln usd cash.
Rexam had said it was funding the deal through a combination of a 500 mln stg bond issue, the 449 mln stg proceeds of the sale of its glass business and an equity placing of about 58.35 mln new shares, representing approximately 9.99 pct of its share capital prior to the placing.
2-Chinalco to buy Peru Copper for C$840 mln
TORONTO, June 11 (Reuters) - Peru Copper Inc. (PCR.TO: Quote, Profile, Research has agreed to be bought by state-owned Aluminum Corp. of China Ltd. (601600.SS: Quote, Profile, Research in a friendly deal worth C$840 million ($792 million) in cash, the Canadian company said on Monday.
The offer of C$6.60 a share is a 21 percent premium to Peru Copper's 20-day volume weighted average price of C$5.45 on the Toronto Stock Exchange ended May 23.
The company's shares were up 10 Canadian cents at C$6.45 after the announcement on Monday.
It has been conducting a strategic review of its options since last November, and said in May that it was in exclusive talks with a third party.
Peru Copper buys and explores for copper deposits in Peru and is listed in both Toronto and Lima.
The Vancouver, British Columbia-based company owns the Toromocho copper project, which it has said could become one of the biggest copper mines in Peru by 2010, producing 300,000 tonnes of refined copper a year.
The company's board of directors has unanimously recommended the deal, while 34 percent of its shares are committed via lockup agreements, it said.
Aluminum Corp., also known as Chinalco, said the deal was an important step it its strategic growth outside China.
"(It) will provide us with an opportunity to leverage the strength of our balance sheet and our extensive project development expertise to advance the Toromocho project," Chinalco president Yaqing Xaio said in a statement.
"We look forward to identifying further investment opportunities in Peru and around the world."
The announcement comes as Chinese companies increasingly snap up mining players to satisfy demand for commodities.
Chinalco also said it has purchased about 13.2 million shares of Peru Copper in a private placement at C$5.30 a share, or C$70 million.
The private placement, which is not conditional on the success of the takeover deal, will give Chinalco 9.9 percent ownership in Peru Copper.
Peru Copper will have to pay a C$21 million break fee to Chinalco if the deal doesn't go through.
UBS Investment Bank is acting as financial adviser to Peru Copper, while BMO Capital Markets is advising Chinalco.
($1=$1.06 Canadian)
The offer of C$6.60 a share is a 21 percent premium to Peru Copper's 20-day volume weighted average price of C$5.45 on the Toronto Stock Exchange ended May 23.
The company's shares were up 10 Canadian cents at C$6.45 after the announcement on Monday.
It has been conducting a strategic review of its options since last November, and said in May that it was in exclusive talks with a third party.
Peru Copper buys and explores for copper deposits in Peru and is listed in both Toronto and Lima.
The Vancouver, British Columbia-based company owns the Toromocho copper project, which it has said could become one of the biggest copper mines in Peru by 2010, producing 300,000 tonnes of refined copper a year.
The company's board of directors has unanimously recommended the deal, while 34 percent of its shares are committed via lockup agreements, it said.
Aluminum Corp., also known as Chinalco, said the deal was an important step it its strategic growth outside China.
"(It) will provide us with an opportunity to leverage the strength of our balance sheet and our extensive project development expertise to advance the Toromocho project," Chinalco president Yaqing Xaio said in a statement.
"We look forward to identifying further investment opportunities in Peru and around the world."
The announcement comes as Chinese companies increasingly snap up mining players to satisfy demand for commodities.
Chinalco also said it has purchased about 13.2 million shares of Peru Copper in a private placement at C$5.30 a share, or C$70 million.
The private placement, which is not conditional on the success of the takeover deal, will give Chinalco 9.9 percent ownership in Peru Copper.
Peru Copper will have to pay a C$21 million break fee to Chinalco if the deal doesn't go through.
UBS Investment Bank is acting as financial adviser to Peru Copper, while BMO Capital Markets is advising Chinalco.
($1=$1.06 Canadian)
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