Sell to the US and Europe, or suffer; forecasters agree about an Asia-induced slump in growth, if not the timing; likely outcomes are cost-cutting among big companies, a squeeze on small business and rising unemployment

Article Abstract:

A poll of Australian economic forecasters shows conflicting opinions about the country's growth rate in 1998 and 1999. Some anticipate that the rate will remain above 3% in 1998; others disagree, citing concerns about the impact of a weak Australian dollar on inflation and interest rates. Some areas of optimism include retail, automobile and construction business volume that remains stable. The major concern is the decrease in Asian consumer spending and how that will effect Australian businesses in 1999 if they do not develop export activity to Europe and North America.

Commercial Banks, Commercial Banking, Personal Services Expend, Banking industry, Australia, Cover Story, International trade, Consumption (Economics), Economic forecasting

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Junk bonds struggle in uncertain times

Article Abstract:

The return rate in the junk-bond market has disappointed investors, but it is the default rate that is causing the most concern. As of June 30, 1999, the junk-bond default rate was 4.55%, compared to 1.48% for the 12 months to May 1997. Financial analysts differ in their predictions for the default level, with Sam DeRosa-Farag forecasting defaults to peak at 3.25% to 3.5% by year-end 1999, while Merrill Lynch and Company Inc. analysts predict the rate to be above 5% in 2000. Junk bond default rates are high because of tightening bank credit and market liquidity.

United States, Securities Dealers, Investment Banking and Securities Dealing, Security brokers and dealers, Statistical Data Included, Finance, Forecasts and trends, Securities industry, MER, Junk bonds, Default (Finance), Merrill Lynch & Company Inc., DeRosa-Farag, Sam

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Direct delivery spells doom for go-betweens

Article Abstract:

Suppliers will need to change the way they operate as manufacturers increasingly use the Internet for business to business transactions. Markets, such as in the automobile industry, are likely to become more competitive.

Usage, Innovations, Online services, Internet services, Science and technology policy, Business-to-business market, Business to business market, Distributors (Commerce)

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