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Fragility Aside, Recovery By Big Us Names Appears To Rule Out Double-Dip Recession

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http://www.independent.co.uk/news/business/news/fragility-aside-recovery-by-big-us-names-appears-to-rule-out-doubledip-recession-2033360.html

A slew of the world's biggest companies reported beating forecasts for sales and profits, giving lie to fears that the global economic recovery is already faltering.

Stock markets leapt higher as investors picked through scores of earnings reports from numerous sectors of the economy and while executives expressed caution and noted uncertainty over the future, few predicted a double-dip recession. The fragility of the economic recovery was again under discussion on Capitol Hill yesterday, where US lawmakers were questioning Ben Bernanke, the chairman of the Federal Reserve, for a second day of his twice-yearly report to Congress.

On day one, the central bank boss had warned that the outlook was "unusually uncertain", but he did not depart from his prediction that the US economy will continue to grow modestly. The Dow Jones was up more than 2 per cent by lunchtime in New York, more than erasing the drop that Mr Bernanke's testimony had caused on Wednesday. Traders were heartened by the results emerging from global corporations such as Caterpillar, the heavy equipment maker, 3M, and the airline industry.

Caterpillar's chief executive, Doug Oberhelman, said sales were so strong the company was on track to beat Wall Street's forecasts for the rest of the year, too. "While there are significant economic concerns around the world that we are watching closely, orders have continued to out-pace our shipments and we expect to increase production in the second half of the year," he said.

3M, an industrial conglomerate with operations spanning adhesives, plastics and electronics, but which is still most famous for the Post-it note, also raised its guidance. George Buckley, its chief executive, said: "There will be a period of slower growth in end markets later this year. This isn't a double-dip per se, it's just a soft spot and very normal as economic growth takes a breather for a while."

UPS, the shipping company, whose business activity reflects the strength or otherwise of economic activity, said it had almost doubled profits in the second quarter. And Continental, whose impending merger with United Airlines will turn it into the largest airline in the world, became the latest company from that sector to blow through Wall Street forecasts.

Its revenue jumped 19 per cent to $3.7bn (£2.4bn) as passenger numbers grew and its cargo business also showed a recovery. JetBlue and Alaska Air, smaller rivals of both airlines, also beat expectations on the top and bottom lines.

Yet more good news.

I've feeling very happy this morning.

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Surely this is good news for those wanting house prices to go down. The last thing anyone needs is fears of double dips leading to more QE - we all saw what that did for house prices last year.

I think the coalition seem to be unconcerned about house prices falling - CGT on second homes / BTL went up, new homes without planning anounced this morning, capping of financial help for struggling homeowners, removing of HIPS to stimulate houses on the market etc etc. I think they want to see the air let slowly out of this as they don't think it's such a great idea having an entire nation in massive debt.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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