US’s Geithner says double-dip recession unlikely

July 26, 2010 By Leave a Comment

July 25 (Reuters) – U.S. Treasury Secretary Timothy Geithner said on Sunday the economy was recovering from a severe recession and he did not expect it to slip back into a downturn.

“The economy is starting to heal again,” he said in an interview on NBC’s “Meet the Press” program, adding in response to a question that he did not foresee a “double dip” recession.

“I think the most likely thing is you’ll see an economy that gradually strengthens over the next year or two, you’ll see job growth start to come back, investments expanding … but we’ve got a long way to go still,” Geithner said.

(Reporting by Glenn Somerville; Editing by Eric Beech)

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Nikkei posts fifth day of losses; eyes on yen

July 23, 2010 By Leave a Comment

July 22 (Reuters) – Japan’s Nikkei slipped 0.6 percent to its fifth straight day of losses and a three-week closing low on Thursday, hurt by a stronger yen after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy.

Investors awaiting the results of European bank “stress tests” later this week were closing positions, while the yen’s rally hit shares of exporters.

The benchmark Nikkei .N225 shed 57.95 points to 9,220.88, its lowest close since July 2, while the broader Topix lost 0.5 percent to 825.48.

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New Citi Survey Finds 62% of Americans Believe the Economy Has Yet to Hit Bottom

July 23, 2010 By Leave a Comment

A Quarter of Americans Struggling with Debt, including Highest-Income Earners

More than Half of Americans Not Taking Summer Vacations, Citing the Economy
NEW YORK–(Business Wire)–
A new nationwide survey issued today by Citi, and conducted by Hart Research
Associates, shows that nearly two-thirds of Americans (62 percent) believe the
economy has yet to hit bottom. This represents a 3 point decline from March,
when 59 percent said we have a long way to go, and a return to the level
measured in September (63 percent). According to the survey, just one-third (33
percent) believe the economy has hit bottom, even though Commerce Department
data indicates the U.S. economy resumed growing in 2009`s third quarter.

In addition, the data reveals that, as we pass the halfway point of 2010,
Americans` expectations for when the economy will stabilize for their households
have slipped quite far into the future, with 62 percent believing it will be at
least two or three years, if not longer, and more than one quarter (28 percent)
believing it will be four or more years until the economy stabilizes for their
household.

At the same time, however, Americans` views on current economic conditions, as
well as their outlook on their own personal financial situations, are improving
or holding steady.

According to the data:

* Twenty-four percent say the local economy where they live is good or
excellent, up from 19 percent in March.
* The percentage of Americans who say their personal financial situation is
better now than a year ago has improved slightly since March (17 percent versus
15 percent). Fifty-two percent said their personal financial situations are
about the same as they were a year ago.
* Although down slightly from March, 64 percent of Americans remain very or
somewhat optimistic that their financial situation will improve in the next
twelve months, compared to 32 percent who are somewhat or very pessimistic.

Americans` views on local employment opportunities, however, remained weak, with
85 percent reporting opportunities as only fair (36 percent) or poor (49
percent). In a measure of potential consumer demand, 62 percent of Americans
believe that, in the current environment, it is only a fair (30 percent) or poor
(32 percent) time to make a major household purchase, up from 61 percent (27
percent and 34 percent, respectively) in March.

“Clearly, the mood of Americans has been heavily influenced by the unemployment
numbers here at home and the news of economic woes in Europe,” said Jonathan
Clements, Director of Financial Education at Citi Personal Wealth Management.
“And yet, if you dig deeper, consumers are actually feeling a bit better about
their own finances and the local economic outlook. The big question is, could
the gloomy news become a self-fulfilling prophesy, prompting consumers to
restrain their spending, thus hurting the economic recovery?”

A Quarter of Americans Struggle with Debt, Highest-Earning Americans Impacted As
Well

Americans of all ages and income levels are struggling with debt. The survey
found that, while no one category of debt presents a major problem to more than
about a tenth of U.S. families, as many as 25 percent responded that there is at
least one category of debt that is a major challenge or is becoming
unmanageable.

* Of those surveyed, health expenses are a major or unmanageable problem for 11
percent followed by credit card debt (9 percent). Including other categories of
debt such as mortgage debt (6 percent), student loans (5 percent), consumer
loans (2 percent), and child support (1 percent), a full quarter of the public
reports a major or unmanageable problem with at least one category of debt.
* People in their 30s (32 percent) report having at least one area of debt that
is a major or unmanageable issue, higher than any other age group. This compares
with Americans under age 30 (28 percent), in their 40s (30 percent), and in
their 50s (27 percent) who responded similarly.
* Interestingly, among the top-income bracket (Americans earning more than
$150,000 annually), 21 percent report having at least one area of debt that is a
major or unmanageable issue. This compares to 15 percent of Americans earning
$75,000-$150,000; 22 percent earning $50,000-$75,000 and 33 percent earning less
than $50,000 annually.

“It is startling to see more than a fifth of high-income earners express
concerns about their debt,” noted Clements. “This may speak to their
overconfidence during the boom years, as they took on first and second mortgages
to buy real estate and pay other expenses.”

Summer of the `Stay-cation`

Reflecting current economic worries, three in five Americans responded they will
either not vacation at all or will stay home during their time off this summer.

* A full 51 percent of Americans say they will not take any vacation at all this
summer.
* Sixty percent of Americans will either not vacation at all or else will stay
at home as their vacation.

Clements added, “Given the sluggish economic recovery, it is no surprise that
Americans remain conservative with their spending, saving and summer vacation
plans. Americans` fiscal discipline is admirable. Still, lower consumer spending
may slow the economic recovery.”

Majority of Americans Believe They Are Living the American Dream, Especially
Older Americans

Despite the current economic challenges, Americans remain remarkably optimistic.
The survey found that 53 percent of Americans believe they are living the
American dream and nearly three in four (73 percent) say they are either living
the dream now or expect to live the dream in the future. Older Americans lead
the way in responding they are currently living the dream, while young Americans
remain hopeful.

* Sixty-five percent of Americans over age 70 believe they are currently living
the American dream.
* Comparatively, more than half of Americans in their 60s (56 percent), 50s (55
percent), and 40s (51 percent) also say they are currently living the American
dream.
* Forty-seven percent of Americans under age 30 say they are currently living
the American dream, while just 43 percent of Americans in their 30s say they
are.
* A full 83 percent of 18-to 29-year-olds believe they are or will live the
American dream in the future, while people in their thirties remain hopeful, but
less so (75 percent).

By 56 percent to 24 percent, a majority of Americans believe that the American
dream is more defined by family, faith and freedom than it is defined by
material goods or financial elements such as housing, income or lifestyle.

Citi conducted this nationwide survey as part of its ongoing effort to better
understand changes in the needs of the consumers and communities the company
serves.

Survey Methodology

Hart Research Associates conducted the telephone survey of 2,005 adults
nationally from June 22-29, 2010. The Random Digit Dialed (RDD) survey has an
overall statistical margin of sampling error of plus or minus 2.2 percentage
points. The survey also included a panel of respondents who use only a mobile
telephone.

About Citi

Citi, the leading global financial services company, has approximately 200
million customer accounts and does business in more than 140 countries. Through
Citicorp and Citi Holdings, Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and services,
including consumer banking and credit, corporate and investment banking,
securities brokerage, and wealth management. Additional information may be found
at www.citigroup.com or www.citi.com.

Media:
Citi
Liz Fogarty, 212-559-0486

Copyright Business Wire 2010

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Thai c.bank says tourism recovered fast from unrest

July 21, 2010 By Leave a Comment

July 20 (Reuters) – Thailand’s central bank governor said on Tuesday that tourism had recovered faster than expected after being hit hard by political unrest in Bangkok in April and May.

Tarisa Watanagase also told the Foreign Correspondents Club of Thailand that consumption and investment had also recovered and she was therefore positive on the economy in the second half. (Reporting by Orathai Sriring; Editing by Alan Raybould)

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Green Business Forecast Shows Strong Growth Ahead

July 20, 2010 By Leave a Comment

Our most recent green economy survey shows signs of steady growth in corporate environmental initiatives, a level of optimism that outstrips that of the overall recovering economy, according to the semi-annual “Green and the Economy” survey conducted by our GreenBiz Intelligence unit.

The two best pieces of news: Hiring continues to increase and company environmental budgets are growing.

Twice a year, we ask our 3,150-member GreenBiz Intelligence Panel for their views on key green economic indicators. Our most recent survey, conducted in late June and early July, garnered 483 responses, with 43 percent from companies with revenues of more than $1 billion (which we define as “large companies”). With four such surveys under our belts, we can now see clear trends in the green economy since the beginning of 2009.

Perhaps the biggest shift since our previous survey, in late 2009, is that the economic downturn is no longer driving most large companies’ environmental strategy. For companies with over $1 billion in annual revenue, the economic downturn has taken a backseat to growing customer requirements as the principal driver of corporate environmental strategy. For smaller firms, the economy still looms large.

Here’s what our most recent survey found:

The economy is no longer the green driver. A year ago, when we asked what was influencing companies most in terms of environmental issues, the answer was clear: It’s the economy, stupid. Forty-eight percent of all businesses and 40 percent of large businesses cited the economic downturn as having the single biggest impact on their environmental strategy. Today, for large businesses, this is no longer the case: Only 20 percent cite the economy as driving their green agenda, while 35 percent of large companies name customer requirements as having the largest impact and 25 percent identify company leadership as being the main driver. In fact, company leadership has steadily increased in influence: In early 2009, only half as many large companies — 12 percent — identified this as the major impact on their environmental strategy.

Smaller firms are still seeing the effects of the economic downturn. Of those with revenues under $1 billion, 47 percent still cite the economic downturn as having the greatest impact on their company in terms of environmental issues. For all companies, the impacts of carbon regulations as well as energy prices are viewed as negligible.

Next Page: The latest trends for spending, hiring freezes, top environmental initiatives and investment.

!–pagebreak– Spending continues its upward climb. At this point in 2009, only 63 percent of large companies said they would spend either the same or more than the previous year on environmental, health, and safety initiatives. This year, 84 percent of large companies say they are doing so. And 70 percent of companies with revenues under $1 billion report that their 2010 spending will either remain steady or increase over 2009.

Hiring freezes continue to thaw. Large companies, in particular, are increasing headcount for environmental and sustainability roles. In early 2009, 27 percent of large companies reported hiring freezes and only 8 percent planned to increase headcount for environmental departments. Today, only 11 percent report hiring freezes and over 28 percent plan to increase headcount, a major swing. This also represents a significant increase from just six months ago, when 23 percent of the large firms planned to increase headcount. The news isn’t quite as good for smaller firms: only 20 percent plan to hire for environmental and sustainability roles in the short term.

Energy efficiency remains job one. Reducing energy use through efficiency measures continues to be the primary environmental initiative for companies of all sizes. Thirty-four percent of large companies and 26 percent of smaller companies view energy reduction as their most important environmental initiative. It was a slightly different story six months ago, when 23 percent of those surveyed identified their highest priority initiative to be increasing investments in green product development while 22 percent cited energy efficiency. This shift doesn’t mark a decrease in green product investment, but rather a higher priority focus on cost savings.

Where large and smaller companies differ in terms of their key initiatives is their concern about “keeping green on the agenda.” While only 18 percent of large companies are concerned about continuing their green initiatives, 30 percent of smaller companies are trying to make sure green stays on the agenda. That likely reflects the fact that environmental initiatives have made deeper inroads in larger companies, so are no longer seen as optional or expendable. Most smaller firms haven’t yet reached this point.

Investments in innovation continue to grow. One area that has remained steady over the past year and a half is the high level of investments in green product development. Eighty-five percent of large companies report 2010 investments equal to or greater than last year’s, a number consistent for each of our previous surveys. This time, we also asked if companies have a formal strategy for product innovation. The result: 84 percent of large companies and 82 percent of smaller firms say they do. Those strategies are more prevalent among smaller firms. Sixty-nine percent of companies with revenues below $1 billion consider green as a key aspect of their innovation strategy, compared to 60 percent of large companies.

We’ll be taking a deep dive into the intersection of sustainability and innovation at our GreenBiz Innovation Forum, October 19-20 in San Francisco. For now, while the general economy may appear to stagger forward in fits and starts, our research shows a steady forward march in green innovation and investments.

John Davies is vice president of GreenBiz Intelligence, which provides independent and unbiased research regarding green strategies and business operation, and leads the GreenBiz Executive Network, a member-based, peer-to-peer learning forum for sustainability professionals.

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US firms plan to hire; service sector lags -survey

July 20, 2010 By Leave a Comment

July 19 (Reuters) – Plans by U.S. firms to increase payrolls over the next six months have risen to the highest level since January 2008, but some service sector companies still see layoffs, according to a survey released on Monday.

The survey by the National Association for Business Economics (NABE) also showed strong demand in the goods-producing sector, while service sector businesses reported a softening in their expansion rates.

The results echo recent trends in the U.S. economy. Although the services sector dominates the economy, the manufacturing sector has led the recovery. Layoffs in the services sector could further slow the recovery.

The survey showed that half of the 79 NABE members who took part expected to increase payrolls.

In the services sector, of the 28 respondents, 4 percent saw layoffs over the next six months, 36 percent planned to hire more workers, while 57 percent saw no change in payrolls.

“Only the services sector continues to anticipate layoffs,” the NABE said in a statement.

The survey was conducted from June 11-29.

After sturdy job gains early this year, the labor market lost strength in recent months, hurting consumer spending and helping to slow the pace of the recovery from the worst recession since the 1930s.

Still, the NABE noted that layoff and attrition activity declined to 14 percent of respondents from 28 percent a year ago.

In the second quarter, the percentage of respondents reporting increases in employment touched its highest level since the second quarter of 2007.

“Over the past two quarters the goods-producing sector has experienced a dramatic recovery in hiring trends,” the NABE said, noting that 42 percent of respondents in the sector reported increased hiring in the current survey, up from zero in January.

The survey also found that about a quarter of respondents’ companies had increased capital spending in the second quarter, with the finance, insurance and the services sector dominating. Transportation, utilities, information and communications sector respondents reported no increase in capital spending.

Industries reported a slowing in the demand growth rate during the second quarter, the survey showed.

Economists have revised down their forecasts for second-quarter gross domestic product growth, on expectations that economic growth slowed in the period.

“Demand growth, though slower in the aggregate than during the first quarter of the year, remained broad-based, with all four major industry sectors expanding for a second consecutive quarter,” the NABE said.

Strong demand was reported in the goods-producing sector, while the finance, insurance, and real estate sector accounted for the deceleration in overall industry demand.

About 59 percent of the firms believed Europe’s sovereign debt crisis would have no impact on them, while 35 percent worried they could be hurt. (Reporting by Lucia Mutikani; Editing by Leslie Adler)

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Americans Don`t Expect a Return to Pre-recession Spending Levels, Lifestyles Until Mid-2013, According to AlixPartners Survey

July 20, 2010 By Leave a Comment

Seven in 10 Feel the Same or Worse Economically Than a Year Ago
NEW YORK–(Business Wire)–
On average, Americans don`t expect their quality of life, including their
spending levels, to return to pre-recession levels until mid-2013, according to
the findings of a survey released today by AlixPartners LLP, the global
business-advisory firm. The poll also finds that seven in 10 Americans today
feel the same or worse about their personal economic situations than a year ago,
during the depths of the recession, and that 83% expect to spend the same or
less on non-essential purchases over the next 12 months, illustrating an ongoing
frugality that`s hampering prospects for a consumer-driven economic recovery.
The survey was conducted recently as a reprise of similar AlixPartners surveys
in 2009 — one in February and another in November.

According to the poll, Americans are also decidedly less optimistic about a
quick recovery in the economy at large than they were in 2009, another factor in
restrained spending. The majority of respondents, or 63%, now say that an
economic recovery won`t take place until 2012 or later, versus the 46% who felt
that way in November and 40% who picked that year or later in early 2009. The
proportion of Americans who now believe that a recovery will take place this
year or next: just 5% and 12%, respectively.

“When we polled Americans last November, they expected their personal spending
levels and lifestyles to be back to pre-recession levels by, on average,
November of 2012, but now they`re saying not till August of 2013,” said Fred
Crawford, CEO of AlixPartners. “Obviously, despite some modest movement forward
in the economy, individual Americans remain greatly concerned about their
personal economic situations. In the past, AlixPartners has talked about how
this could translate into a `new normal` environment for businesses of all types
that rely upon the American consumer: lower plateaus of consumer spending for
years to come, maybe for the foreseeable future. Today, it looks like this new
normal is already happening.”

Americans continue to say that their two top concerns are their own personal
debt levels and possible job loss. Some 20% of respondents in latest survey cite
the elimination of personal debt as their top concern, versus 13% who cite
potential job loss. The seven-percentage-point gap between the two top concerns
has widened since November, when 18% cited personal debt and 14% said job loss.

“The gap between the top two consumer concerns was just two percentage points in
February 2009, possibly illustrating some stabilization on the employment front
over the past 15 months,” said Crawford. “However, given the length of time that
most expect it will take before they see a personal economic recovery and the
urgency on the personal debt front, consumer spending likely will continue to
languish for some time.”

About the study

The AlixPartners survey was conducted May 24-26 among 1,000 U.S. adults. It was
a reprise of key questions asked in February 2009 and November 2009, in which
Americans said that, post-recession, they plan to save significantly more of
their total income and cut back on discretionary spending.

Americans were asked to provide feedback on current economic environment,
describe current spending patterns, and estimate how their saving/spending
habits will change post-recession.

The respondent group was representative of the U.S population across all key
demographics.

About AlixPartners

AlixPartners LLP is a global business-advisory firm offering comprehensive
services to improve corporate performance, execute corporate turnarounds, and
provide litigation consulting and forensic accounting services. The firm has
more than 900 professionals in 14 offices across North America, Europe and Asia.
The firm can be found on the Web at www.alixpartners.com.

AlixPartners LLP
Tim Yost, +1-248-204-8689
+1-248-227-1694 (m)
tyost@alixpartners.com

Copyright Business Wire 2010

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UPDATE 1-UAE watchdog asks for higher Aabar buyback price

July 19, 2010 By Leave a Comment

July 18 (Reuters) – Abu Dhabi state fund Aabar Investments (AABAR.AD) should raise the buyback price it pays minority shareholders to 1.95 dirhams per share from 1.45 previously, the United Arab Emirates’ bourse watchdog said on Sunday.

The move follows complaints from shareholders that the initial price was too low. Aabar shares jumped 9.7 percent to 1.59 dirhams in early trading on the Abu Dhabi bourse. On July 12, a committee including Emirates Securities & Commodities Authority (ESCA) and the ministry of the economy met with Aabar to come up with a proposal for its buyback plan.

It asked Aabar to raise the offer price and to change the period in which it is open to July 20-Aug. 5 from July 12-Aug. 1, the watchdog’s statement said. (Reporting by Andres Callus, Editing by Dinesh Nair)

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Nikkei slips from 3-wk highs on investor economy worry

July 16, 2010 By Leave a Comment

July 15 (Reuters) – Japan’s Nikkei average fell 1.1 percent on Thursday after the Federal Reserve’s caution on the U.S. economic recovery and souring near-term technicals prompted investors to take profits after a jump this month to three-week highs.

The benchmark Nikkei shed 109.71 points to 9,685.53, after falling as low as 9,667.00 at one stage. On Wednesday, the index rose nearly 3 percent to hit its highest close since late June.

The broader Topix lost 1.6 percent to 856.60 on Thursday. (Reporting by Aiko Hayashi)

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Thai c.bank sees more policy tightening

July 16, 2010 By Leave a Comment

July 15 (Reuters) – The Bank of Thailand is likely to tighten monetary policy further after Wednesday’s rate increase, Deputy Governor Bandid Nijathaworn said on Thursday.

“Yesterday’s policy rate rise will probably not be the only one … There is a chance that the rate will move higher in the future,” he told reporters.

“But we cannot tell what level it will go to, depending on economic indicators and inflation,” Bandid said.

The central bank raised its policy rate by 25 basis points to 1.50 percent from a record low of 1.25 percent on Wednesday, the first increase since the global financial crisis, citing the recovery in the economy and rising inflationary pressure across Asia. [ID:nSGE65103A]. (Reporting by Boontiwa Wichakul; Writing by Orathai Sriring; Editing by Alan Raybould)

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Voter support drops for battered Japan govt -Kyodo

July 14, 2010 By Leave a Comment

July 13 (Reuters) – Voter support for Japanese Prime Minister Naoto Kan’s government, reeling from a thrashing at the polls, has fallen to 36.3 percent, a Kyodo news agency survey showed on Tuesday, posing another headache for Kan as he faces a potential leadership challenge from inside his own party.

Kan’s ruling coalition lost its majority in a weekend upper house election, putting his policies to deal with massive debt and generate growth at risk and prompting warnings by credit ratings agencies S&P and Fitch on Japan’s sovereign ratings. [ID:nTOE66C03L]

Kan’s ruling Democratic Party of Japan (DPJ) still controls the more powerful lower house. But it needs help from other parties to push bills through the upper chamber as they struggle to end decades of stagnation in the world’s No.2 economy. (Reporting by Linda Sieg)

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Seoul shares rise as investors welcome rate hike

July 10, 2010 By Leave a Comment

July 9 (Reuters) – Seoul shares rose on Friday as investors welcomed the central bank’s surprise rate hike decision as a sign the economy was making a firm recovery, sending exporters and financials including Hana Financial (086790.KS) higher.

The Korea Composite Stock Price Index (KOSPI) finished up 1.43 percent at 1,723.01 points, just 2 percent away from its earlier 2010 high of 1,757.76 points.

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)

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Number of Fleets Measuring Emissions Doubles in Two Years

July 7, 2010 By Leave a Comment

According to the latest green fleet survey from PHH Arval, almost half of all corporate fleet managers are measuring their emissions, and encouraging emissions reductions through driver behavior change, despite the economic downturn.

The findings come from the company’s annual industry-wide survey of fleet managers on their environmental initiatives, which found that 49 percent of all fleets are now measuring their emissions, up from 28 percent in 2008.

Although cost of environmental initiatives continues to be a concern — 42 percent of respondents cited costs as a key barrier to greening their fleets — the economic downturn has slowed some of those initiatives. In this year’s survey 51 percent said the economy had no impact on their progress, while 20 percent said it had slowed them down.

But 28 percent said that the economy served as a spur to increase the speed of their green programs, and 29 percent of respondents have found cost savings as a direct result of reducing the emissions from their fleets.

Driver behavior has become one of the top ways that companies are focusing on improving fleet efficiency; as the chart below shows, 56 percent of companies say driver behavior is one strategy for cutting emissions.

Overall, the survey finds increased awareness in and action around environmental improvements for fleet managers, with a steady rise over the company’s 2009 and 2008 surveys.

The full white paper is available for download from www.phharval.com/greensurveyresults.

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EURO GOVT-Bunds higher as periphery pressured, stocks fall

June 25, 2010 By Leave a Comment

June 24 (Reuters) – Core German Bunds turned positive on Thursday as peripheral euro zone issuers remained under pressure and after cautious comments on the economy from the US Federal Reserve.

Bunds further extended gains as European equities .FTEU3 turned negative.

At 0727 GMT, September Bund futures FGBLc1 were 11 ticks higher at 128.73. Two-year German yields DE2YT=TWEB were 1.5 basis points lower at 0.582 percent, with ten-year yields DE10YT=TWEB down a similar amount at 2.632 percent.

European shares .FTEU3 reversed earlier gains to stand 0.24 percent lower on the day.

Peripheral yield spreads were steady in early trade, but held close to levels seen the previous session after a bout of widening.

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ECB’s Trichet sees no deflation risks emerging in euro zone

June 25, 2010 By Leave a Comment

June 24 (Reuters) – European Central Bank President Jean-Claude Trichet was quoted on Thursday as saying he does not see deflation risks materialising in the euro zone.

Bonds

In an interview with Italy’s La Repubblica newspaper, he also denied that budget cuts would drag on growth in the 16-nation region.

Aasked about the risk of deflation, he said: “I don’t think that such risks could materialise”, adding that inflation expectstions were well anchored.

“As regards the economy, the idea that austerity measures could trigger stagnation is incorrect,” Trichet said, according to am English-language transcript published on the ECB’s Web site. (Reporting by Krista Hughes)

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GE to Invest $10B More in Ecomagination R&D by 2015

June 25, 2010 By Leave a Comment

General Electric is committing $10 billion to ecomagination research and development in the next five years after reaching a $5 billion investment milestone for its portfolio of environmentally sensitive products, services and technology.

GE, the world’s largest industrial company, announced the new goal today with the release of its annual ecomagination report. The 50-page report details the firm’s progress in 2009 toward a series of ambitious environmental goals that were set in 2005 — when the company launched ecomagination — and include increasingly higher benchmarks for performance.

The report highlights the company’s accomplishment of surpassing its goal for ecomagination R&D investment by hitting the $5 billion target in 2009, a year early. The commitment to double the investment in the next five years means that GE plans to put a total of $15 billion toward ecomagination by 2015 when the initiative marks its 10th anniversary.

GE also reported:

* A 6 percent increase in revenue, bringing it to $18 billion in 2009 for more than 90 products. There were just 17 products when ecomagination launched and about 80 were in place by the end of 2008. GE hailed the 2009 sales figure, pointing out that revenue rose despite persisting challenges in the economy. The growth was modest, however, compared to the 21 percent jump recorded in 2008.

For coming years, the company is reframing its stretch goal for revenue, which in 2005 was set at $20 billion in ecomagination sales by 2010 and then was bumped up in last year’s report to $25 billion by 2010. GE says it is well on its way to the $20 billion mark in sales and is now committing that “ecomagination revenue will grow at twice the rate of total company revenue in the next five years, making ecomagination an even larger proportion of total company sales [as illustrated in the chart below].”

* Reductions in greenhouse gas (GHG) emissions and improved energy efficiency of operations. GE reduced its GHG emissions by 22 percent last year compared to 2004. GE improved its energy intensity by 34 percent compared to 2004; its goal was a 30 percent reduction by 2010. GHG intensity also improved by logging a 39 percent reduction compared to 2004. Goals for 2015 include improving energy intensity of operations by 50 percent and reducing absolute GHG emissions by 25 percent when compared against a 2004 baseline.

* Reduced water use. The company cut water consumption 30 percent compared to a 2006 baseline. Its original goal was 20 percent by 2012.

The company also pledged to maintain its engagement with the public and said it will update ecomagination.com to foster the dialogue.

GE summarized its progress and ongoing goals in this chart:

Ecomagination offerings range from energy efficient smart appliances for the home to high-performance engines for industry, and GE investments in projects and technology to generate and save energy span everything from solar power systems to using cow manure to produce biofuel.

The firm’s commitment to boost its ecomagination R&D investment reinforces its strategy to bet big on cleantech as Kevin Skillern, managing director of Venture Capital for GE Energy Financial Services, outlined in a podcast interview with GreenBiz Senior Writer Marc Gunther last fall.

In the report today, the company noted:

“Global energy use continues to grow, while interest in renewable energy is at an all-time high. World demand for electricity is expected to double by 2030, driven in part by the increased needs of developing nations.”

“Ecomagination is one of our most successful cross-company business initiatives. If counted separately, 2009 ecomagination revenues would equal that of a Fortune 130 company and ecomagination revenue growth equals almost two times the company average,” GE Chairman and CEO Jeff Immelt said in a statement. “We have made bold investments in ecomagination research and development and it has resulted in strong returns for shareholders.”

The 2009 and previous ecomagination annual reports are available at www.ge.ecomagination.com/report/.

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China warns that finger-pointing could derail G20

June 18, 2010 By Leave a Comment

June 17 (Reuters) – Finger-pointing at the G20 will be self-defeating for an international forum that should be focused on coordination, not criticism, of economic policies, a senior Chinese government official said.

Currencies | Global Markets

The official, speaking ahead of a Group of 20 summit in Canada on June 26-27, also said that while Beijing is determined to promote more domestic consumption, it is unrealistic to expect drastic changes in the short run.

Chinese leaders have long insisted — and many economists agree — that a set of policies broader than just its exchange rate regime is needed to overhaul the economy.

The official, who spoke on condition of anonymity, said change would not happen overnight.

It was unreasonable to expect the Chinese people to immediately fill the void left by U.S. consumers who are spending less money in the wake of the global financial meltdown, he said. (Reporting by Benjamin Kang Lim; Editing by Ken Wills)

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Polish c.bank head sees zloty strengthening-report

June 16, 2010 By Leave a Comment

June 15 (Reuters) – Poland’s newly appointed central bank governor Marek Belka expects the zloty EURPLN= to strengthen driven by a recovering economy and its convergence with the European Union, Belka was quoted by Rzeczpospolita daily on Tuesday.

Belka added a longer term weakness of the zloty could fuel a rise in inflation. (Reporting by Patryk Wasilewski)

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U.S. crude rises more than $1 on economy, weaker dollar

June 15, 2010 By Leave a Comment

June 14 (Reuters) – U.S. crude climbed more than $1 on Monday, heading towards $75 a barrel as renewed optimism about the global economic recovery rekindled appetite for risk, sending stock markets higher and the dollar down.

The dollar weakened about 0.6 percent against a basket of currencies .DXY, with the euro at a one-week high, while Japanese stocks rose as the nation’s manufacturers grew more optimistic about the business environment in the April-June quarter. [ID:nTOE65A05M]

U.S. crude for July CLc1 rose as much as $1.01 to $74.79 a barrel and was up 96 cents to $74.74 at 0514 GMT, still down 14 percent from a 19-month high above $87 in early May. ICE Brent LCOc1 gained 77 cents to $75.12. (Reporting by Alejandro Barbajosa; Editing by Michael Urquhart)

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Bank of France head calls for caution on bank tax

June 14, 2010 By Leave a Comment

June 13 (Reuters) – European Central Bank board member Christian Noyer on Sunday called for caution regarding taxes on banks that could harm the economy but said he was in favour of strong banking regulation.

Bonds

“One has to be very careful,” Noyer said in an interview on France 5 TV and RFI radio, referring to the idea of introducing taxes on banks which he warned could raise borrowing costs.

Noyer is also Bank of France Chairman. (Reporting by Laure Bretton and Astrid Wendlandt)

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