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Re:Is your company saving cash? (1 viewing) (1) Guest

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TOPIC: Re:Is your company saving cash?
#1696
Re:Is your company saving cash? 5 Years ago Karma: 0  
and here's another nugget from that AFP survey:

Asked whether their organizations would be apt to increase or decrease payrolls in next six months, nearly two-thirds of financial professionals say they expect to maintain payrolls at current levels. Of those responding, 22 percent expect company payrolls to shrink further while just 14 percent anticipate that their organization will resume hiring over the next six months. Similarly, the overwhelming majority of survey respondents expect to either maintain or further cut capital spending over the next six months. Just 21 percent of financial professionals anticipate their organization will increase capital spending in the coming months.
 
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#1699
mcole ()
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Re:Is your company saving cash? 5 Years ago Karma: 0  
Meanwhile, Google has started hiring again and is also looking for companies to buy in anticipation of a recovery. Google is far from representing the whole economy but it's a start. Even Schmidt at Google said he hopes the company is a leading indicator, according to a NYT article. I just think Google is in a totally different world though.

Then there's Wall Street, which has been hit pretty hard obviously in this crisis and, well, financial firms seem to begin to rehire as well, mostly thanks to a bounce back in bond issuance and trading.

http://uk.reuters.com/article/idUKTRE59662R20091007

It's starting at a slow pace but I think this is more telling of where the economy is standing, especially in New York, where so many other industries like restaurants, car services, dry cleaners etc depend on the Wall Street machine to run.
 
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#1705
Re:Is your company saving cash? 5 Years ago Karma: 0  
A Conference Board report released today shows that nearly 60 percent of CEOs report scaling back on capital spending plans since January, while only 7 percent have increased spending. This is a considerable change from last year, when 17 percent had increased capital spending plans and 38 percent had made cuts. A decline in sales volume was the most cited reason for a decrease in spending.
 
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#1709
Re:Is your company saving cash? 5 Years ago Karma: 0  
I guess we're all waiting for that magic "tipping point," to make sense of these conflicting views. We've got the voices of doom, as Matt Quinn pointed out this week, vs. the people who accentuate the positive. Normally, I love accentuating the positive, but it's a bit dicey in these times.

What do you think would be the ultimate proof that we're out of the woods?
 
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#1716
Ron F ()
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Re:Is your company saving cash? 5 Years ago Karma: 1  
Two words: Job growth.

And I'm not talking about a month-to-month decline in initial jobless claims or even in job losses but job gains. Otherwise, the economy will simply be shrinking more slowly, which is a long way from the same thing as a recovery.

I realize that Wall Street is a discounting machine, and so seizes on any future indicator, up or down. But there's been a fundamental disconnect between Wall Street and the real economy since at least the early part of this decade.

And until that changes, stocks may go up for a while for no good reason and without meaning anything real. Yeah, you'll see earnings surprises like those at Alcoa and Pepsi in the past few days that investors cheer, but if as likely (sorry, haven't digged into the numbers) those are done on the strength of cost cuts, that won't last. And neither will a market rally.

That's not to say the market can't go up without a recovery. Barry Ritholtz documented just how long the market can stay irrational over at his website, The Big Picture, earlier today or late yesterday, I forget which.

But if the question is, what's it gonna take to get a real recovery going, there's no avoiding employment growth.

There's also a somewhat cynical school of thought that suggests job growth is no longer necessary because of globalization or the wealth effect or some such, but that seems like specious reasoning to me.

How after all is that supposed to work when world trade has fallen completely off of a cliff? In fact, other countries are in much the same boat as the U.S. And I suppose you might see Wall Street keep looting the Treasury for awhile longer, but at some point that is no longer going to work.
 
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Last Edit: 2009/10/10 01:52 By Ron F.
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#1824
Re:Is your company saving cash? 4 Years, 11 Months ago Karma: 0  
According to the WSJ, companies are still jittery and continue to stash cash. In fact, it reports that companies are holding more cash -- and a greater percentage of assets in cash -- than at any time in the past 40 years.

In the second quarter, the 500 largest nonfinancial US firms, by total assets, held about $994 billin in cash and short-term investments, or 9.8% of their assets, up from $846 billion, or 7.9% of assets, a year earlier.

Despite an improving economy, companies are clinging to their cash.
 
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