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Utility Stocks On A Rise

Even with the state of the economy, analysts released information that shares within the US utility companies rose during this week of trading.

Analysts are quick to point out that even though the US economy might be heading for a recession, as predicted by the Federal Reserve Chairman, they see utility stocks as a “safe haven” with economic downturn. For example, American Electric Power Co. increased its share value by forty-one cents to close at $43.08, while Consolidated Edison Inc. rose by twenty cents to close at $40.89.

Companies

Bleak Report For IMS Health

The firm IMS Health has released information reflecting the state of the economy. The company participates in market research for drug and health care companies. However, IMS Health said that their 2008 first quarter profit was reduced by thirty-one percent, as compared to this time last year.

According to economic analysts, the company made about $59.2 US million, whereas last year it was earning $85.6 US million. This translates into a share value in the first quarter of 2008 equal to thrity-two cents, compared with a previous value of forty-three cents last year.

Dollar

Value Of Dollar To Decline Further

According to many currency experts, the US dollar is predicted to weaken further in the near future. The dollar has been enduring severe losses in the past few weeks, and according to analysts, it is only going to get worse.

Many analysts are of the view that the greenback is going to be in a bad state until the middle of the year. It is believed that it will receive some sort of relief after this point.

The main reason for the massive decline in value of the dollar this week, is due largely to statements made by the Federal Reserve chairman last week. Ben Bernanke, Federal Reserve chief, had mentioned during his testimony at Capitol Hill last week, that the Federal Reserve might implement another rate slash during the Federal Reserve’s meeting in March, which resulted in the dollar losing a lot of ground.

Bernanke’s words, along with the other issues already facing the dollar, where enough to send the value of the dollar down the drains. This drop saw the Dollar touching decade lows against many currencies; the Japanese yen, Swiss Franc and the Malaysian ringgit are some of the currencies against which the dollar took an especially large fall. Last week the dollar hit its all time low against the Euro.

Most currency strategists are saying that the weak value of the currency is indicating the economy of the nation is going to go from bad to worse. The dollar last week was very consistent in recording all time lows against the Euro.

Currency analysts are very sure that the dollar is going to stay in its current state for the next month at least, if not longer. The dollar is going to go even further down if the employment report that is scheduled to come out later this week also turns out to be as bad as economists are forecasting. If it indeed turns out to be a depressing report the result might be that the dollar hits rock bottom.

As per the forecasts that have been made recently the dollar is going to hit a top of $1.55 to the fifteen nation currency very soon and this it will drop further in front of the Japanese Yen. The fall might be as low as ¥101 or ¥102.

Although currency experts are united in saying that the dollar will recover towards the middle of the year, as the economy of the nation starts to get back on its legs. The dollar again would reach a more stable position as soon as the Federal Reserve puts a stop to the rate slashes it has been employing so frequently nowadays.

Economy

Euro Countries Bring Down Deficit

Within the countries that have the Euro as their currency, it was seen that they were able to bring the country’s deficit to the European Union limit in 2007. With the growth of the European Union economically, many of the governments were able to claim the surplus of tax windfalls.

With the effect of the drop in the economy from the United States, the combined EU deficit stands at 0.6 percent what is a strong percentage to be at as the economy and the real estate industry continues to slide.

Even the countries that are commonly over the combined EU deficit - Italy and Portugal - reported a drop. Italy had a drop of three percent with a deficit at 1.9 percent, while Portugal’s deficit dropped by 3.9 percent.