Saab story

GM’s Saab division is trying to double sales by 2010. It’s planning to sell a small crossover SUV to compete with BMW’s X3, the one made in SC. Last year more than 38,000 Saabs were sold in the US, which was 30% of the world total. To drive down manufacturing costs, GM is pulling Saab assembly out of Sweden, where labor costs are too high. Hear that, SC Dept. of Commerce?

Real sob stories

Ford announced a 2005 third–quarter loss of $284 million. GM lost $1.6 billion for the same period. About a month ago, Delphi, GM’s former in–house parts supplier, filed of bankruptcy protection. Ford and GM are America’s only two domestically owned automakers.

Hybrids

For all of 2005, the total number of hybrid automobiles sold in the US should come to more than 200,000; in 2008, more than 500,000. For now, the largest hybrid seller is Toyota’s Prius sedan.

SC exports to China

In 2004, China imported SC goods worth $491 million; in 2000, $127 million. SC total exports everywhere for 2004 came to $13 billion. Meanwhile, the Chinese–owned Haier refrigerator plant in Camden plans on more research and development jobs, as heard last week in Shanghai by Governor Sanford and Commerce Secretary Faith.

US inflation reaches 14–year high

In September, gasoline prices increased almost 18%. Also in September, the US annual inflation rose to 4.7%, the highest since 1991. At 1.2%, the monthly rate for September was the highest in 25 years.

The Chicago bears dance with the NYC bears, who flirt with the Atlanta bears and the....

The Wall Street bears – the nattering nabobs of negativism who always warn of impending stock price drops – are getting press coverage this week saying the three–year–old bull market is about over. The Dow Jones Industrial Average is down 4.5% so far in 2005. Last week the Dow fell to its lowest close since mid–May. Inflation (see above) is a bigger threat than most insiders feared, which pushes interest rates up and thereby stock prices down. Higher rates also drive down demand for new housing, which could burst the housing bubble, which could bring on a recession.

The rest of the world looks OK

Total stock returns, both price gains and dividends paid, in the emerging markets (underdeveloped countries) so far in 2005 are running around 21%. Japan is ahead this year by 11%, while the rest of developed Asia is at a 13% improvement. Britain’s gain this year so far is 4%; the rest of Europe, 6%. Brazil, for goodness sake, has produced a 47% gain for this much of 2005. Mysteriously, the world’s richest economy by far, America’s $11 trillion in gross domestic product, is doing almost all right as the Dow stays down at 4.5% below the beginning of the year. Go figure.

By the way, Dow Jones...

...had a third–quarter drop in profit by 16% due to costs increases at the Wall Street Journal . The new weekend edition (Saturday delivery) of the Wall Street Journal is getting the blame. Dow Jones last month had already announced plans to reduce the size of the daily by 20%.

New head for Harvard’s endowment

Leaving Pimco, the world’s largest emerging–market fund, Mohamed El–Erian now runs the largest university fund in the US, Harvard’s $26 billion. Known for its spectacular returns, Harvard’s investment portfolio has gained about 20% annually for the past several years. El–Erian’s predecessor better–than–quadrupled the Harvard endowment over 15 years, but he paid two of his managers last year about $35 million each. Alumni were outraged – not at the spectacular returns, clearly, but at the spectacular pay. To put it all in perspective: For a $5 billion gain last year, Harvard had to pay maybe $100 million to its money managers, who altogether collected 2% of the gain. Alumni are outraged!

Art museum scores

Karen Brosius, director of the Columbia Museum of Art, operates on a $2.3 million budget, and about $260,000 of that goes to education. The education budget was almost doubled in the past two weeks. Brosius announced earlier in October receiving a Knight Foundation grant for $236,550, which is to be used for after–school programs coordinated with the zoo and with Richland 1.

Next life, try selling bankruptcy skills

In its three years in bankruptcy United Airlines has spent about $350 million on legal, accounting, consulting and other professional fees.