Confidence On Upswing, Mergers Make Comeback

The mega-merger is back.

For the corporate takeover business, the last half-decade was a fallow period.  Wall Street deal makers and chief executives, brought low by the global financial crisis, lacked the confidence to strike the audacious multibillion-dollar acquisitions that had defined previous market booms.

Cycles, however, turn, and in the opening weeks of 2013, merger activity has suddenly roared back to life.  On Thursday, Berkshire Hathaway, the conglomerate run by Warren E. Buffett, said it had teamed up with Brazilian investors to buy the ketchup maker H. J. Heinz for about $23 billion.  And American Airlines and US Airways agreed to merge in a deal valued at $11 billion.

Those transactions come a week after a planned $24 billion buyout of the computer company Dell by its founder, Michael S. Dell, and private equity backers.  And Liberty Global, the company controlled by the billionaire media magnate John C. Malone, struck a $16 billion deal to buy the British cable business Virgin Media.

Read more:  http://dealbook.nytimes.com/2013/02/14/confidence-on-upswing-mergers-make-comeback/?hp

ZERO Job Growth Reported For August

For the first time since 1945 our country reported a net job growth of ZERO, for August! 2011  Unemployment remained at 9.1 percent.  Companies are not laying off or hiring.  We are in a holding pattern.  Hourly wages fell in August.

Consumer and business confidence has been shaken by the federal debt limit feud, the downgrading of our long-term debt and the financial crisis in Europe.  The result is a stock market drop.

Unless job growth is improved immediately, another recession is likely.

To read the entire article about our economic mess, click here,

http://www.centredaily.com/2011/09/02/2899388/hiring-standstill-points-to-growing.html#storylink=rss?utm_source=twitterfeed&utm_medium=twitter

It Could Be A Shoppers Market This Holiday Season

With the Christmas shopping season fast approaching, it appears that consumers may be in the driver’s seat this year.  Retailers are positioning themselves to offer deep discounts in an effort to lure recession-weary consumers into parting with their cash.

Economic jitters are making people hold on to their money and only spend on essentials.  Back-to-school sales were great for the first two weeks of September, but then sales trailed off after consumers felt they had spent enough.  This is a sign that people are holding on to their money and resisting the temptation to spend excessively.

We are looking at a 2 – 3 percent sales growth this season.  4 percent is considered healthy, if inflation is low.

Many people are sticking to necessities and practical gifts this year.  Wal-Mart is following that trend this season.

Look for big sales and deep discounts this holiday season!

Merry Recessmas.