Chicago-area financial experts were dissatisfied by joint testimony Thursday on the state of the U.S. economy from Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and SEC Chairman Christopher Cox.
It was the first time the three top U.S. financial officials testified together before the U.S. Senate Committee on Banking, Housing and Urban Affairs since shortly after the Sept. 11, 2001 terrorist attacks.
Bernanke seemed to leave the door open for further Fed rate cuts, again stoking concerns about inflation.
“By the end of this year, I think inflation is going to be a really big problem,” said Matt Zeman, a trader at Chicago-based brokerage LaSalle Futures Group Inc.
(read more)
Monday, February 18, 2008
Bucktown grocery store stalled
Plans to build a new grocery store, strip mall and drive-thru bank at Bucktown's 2100 block of N. Ashland have stalled, with the buyer of the property falling out of contract citing finance and real estate sector upheaval.
Now the two parties-buyer Smithfield Properties LLC and property owner Helco Corp.-are enmeshed in a legal dispute over $550,000 held in escrow.
Some in the neighborhood were looking forward to having more shopping options.
"I certainly think choices are a good thing, especially when it comes to shopping and groceries," said Paula Barrington, executive director of the Wicker Park and Bucktown Chamber of Commerce.
(read more)
Now the two parties-buyer Smithfield Properties LLC and property owner Helco Corp.-are enmeshed in a legal dispute over $550,000 held in escrow.
Some in the neighborhood were looking forward to having more shopping options.
"I certainly think choices are a good thing, especially when it comes to shopping and groceries," said Paula Barrington, executive director of the Wicker Park and Bucktown Chamber of Commerce.
(read more)
CME Group beats analyst estimates, nearly doubles profits
CME Group Inc.’s profit nearly doubled in the fourth quarter, its earnings propelled by last year's acquisition of the Chicago Board of Trade and growing electronic trading volumes.
The Chicago-based exchange beat Wall Street estimates with $201 million in fourth quarter earnings ended Dec. 31. It was a 95 percent jump in earnings from $103 million a year ago. Earnings per diluted share were $3.75 versus $2.91, well above the analysts' average estimate of $2.61.
Revenue jumped almost 90 percent to $530 million in the fourth quarter, up from $281 million last year. On a pro-forma basis, which includes CBOT from last year, revenue increased 23 percent from $431 million, and profits increased 36 percent from $148 million.
(read more)
The Chicago-based exchange beat Wall Street estimates with $201 million in fourth quarter earnings ended Dec. 31. It was a 95 percent jump in earnings from $103 million a year ago. Earnings per diluted share were $3.75 versus $2.91, well above the analysts' average estimate of $2.61.
Revenue jumped almost 90 percent to $530 million in the fourth quarter, up from $281 million last year. On a pro-forma basis, which includes CBOT from last year, revenue increased 23 percent from $431 million, and profits increased 36 percent from $148 million.
(read more)
Cattle prices sink on expensive feed costs
Cattle futures continued to sink Wednesday, and brokers expect the decline to continue, at least for the near term.
February live cattle futures skidded .80 cents per pound, closing Wednesday at 90 cents. During the last two weeks cattle futures have dropped a little more than 6 cents, or nearly 7 percent.
“Obviously we’re being driven down by grains,” said Gary Lark, an independent trader in Chicago at the CME Group Inc. “Cattle tried to rally on internal news, but it couldn’t sustain and it came down under its own weight.”
(read more)
February live cattle futures skidded .80 cents per pound, closing Wednesday at 90 cents. During the last two weeks cattle futures have dropped a little more than 6 cents, or nearly 7 percent.
“Obviously we’re being driven down by grains,” said Gary Lark, an independent trader in Chicago at the CME Group Inc. “Cattle tried to rally on internal news, but it couldn’t sustain and it came down under its own weight.”
(read more)
Neighborhood jewelers’ sales dulled by dazzling gold prices
Chicago-area jewelers say skyrocketing gold prices are hitting their small businesses hard.
And if the trend continues, some say they will be forced to close up shop.
"Everybody is hurting right now, especially the small [jewelry stores],” said George Lysakowski, owner of Signature Jewelers in Arlington Heights. “The big ones are not getting affected but the small ones, like me, are going to get hurt,” he said, noting that the rise in the price of gold has been driving away customers.
The news doesn’t seem to be any better for Mike Min, owner of MK Jewelry on Chicago’s South Side. "Gold is getting expensive. Business is not much these days," he said.
(read more)
And if the trend continues, some say they will be forced to close up shop.
"Everybody is hurting right now, especially the small [jewelry stores],” said George Lysakowski, owner of Signature Jewelers in Arlington Heights. “The big ones are not getting affected but the small ones, like me, are going to get hurt,” he said, noting that the rise in the price of gold has been driving away customers.
The news doesn’t seem to be any better for Mike Min, owner of MK Jewelry on Chicago’s South Side. "Gold is getting expensive. Business is not much these days," he said.
(read more)
As the housing market smolders, a commodities bubble heats up
Commodities may well be the latest bubble, with precious metals and grains futures hitting record highs.
“We’ve seen this bubble move from asset class to asset class over the last six years,” said Tom Willis Jr., manager of commodities-based products at Chicago-based Mesirow Financial Holdings Inc. “I think it’s likely to end the same way as the last two,” he added.
Analysts and traders say the Federal Reserve’s policy of low interest rates is flooding the market with cash and inflating a grains and precious metals bubble. They also say it is part of the cycle that allowed the housing and technology markets to boom—and then bust.
(read more)
“We’ve seen this bubble move from asset class to asset class over the last six years,” said Tom Willis Jr., manager of commodities-based products at Chicago-based Mesirow Financial Holdings Inc. “I think it’s likely to end the same way as the last two,” he added.
Analysts and traders say the Federal Reserve’s policy of low interest rates is flooding the market with cash and inflating a grains and precious metals bubble. They also say it is part of the cycle that allowed the housing and technology markets to boom—and then bust.
(read more)
As spending slows, so does tipping
While economists debate definitions and indicators, W Hotel doorman Matt Geiger in Chicago’s Loop is among those who say there's no question the country is in a recession.
“Nobody wants to use the R word,” Geiger said. “But we’re in it.”
The Commerce Department released a report Thursday that showed consumer spending—the principal pillar of the U.S. economy—was flat in December. Consumers held back even though disposable income was up slightly for the first time since September.
Some in the service industry say they have noticed.
(read more)
“Nobody wants to use the R word,” Geiger said. “But we’re in it.”
The Commerce Department released a report Thursday that showed consumer spending—the principal pillar of the U.S. economy—was flat in December. Consumers held back even though disposable income was up slightly for the first time since September.
Some in the service industry say they have noticed.
(read more)
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