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Kenya Growth Stalls Quickly; Caterpillar Cuts Pay and Jobs; Wal-Mart Offers $2.66 Billion for Chile’s Biggest Grocer; Walgreen Falls Short, Cuts Opening Plans; Palm Gets $100 Million Injection; JPMorgan Buys UBS Assets; Oil Falls 6%
- Kenya’s economy grew 2.1% in the third quarter, down significantly from the 6.3% gross domestic product growth it posted a year earlier. On top of the global financial crisis, Kenya suffered from post-election violence and a severe drought, Bloomberg reported.
- Caterpillar Inc. (CAT) said it will offer buyouts to some employees and cut white-collar pay by up to 50%. Last week, the heavy equipment maker announced plans to lay off 814 works at its engine assembly plant, Reuters reported.
- Wal-Mart Stores Inc. (WMT) has made a $2.66 billion offer for Chile’s biggest grocery chain, Distribucion y Servicio D&S SA (ADR:DYS). Wal-Mart’s outgoing international chief and soon-to-be CEO Mike Duke said in October that Chile’s economy is strong and growing, Bloomberg reported.
- As its quarterly profits missed estimates, drugstore operator Walgreen Co. (WAG) said it is cutting back on plans to open more stores. Profit fell to $408 million, or 41 cents a share, in its fiscal first quarter ended Nov. 30, Reuters reported.
- Palm, Inc. (PALM) yesterday (Monday) secured a much needed $100 million equity investment from Elevation Partners, a venture capital firm that includes Bono, lead singer for the rock band U2, BetaNews reported. Palm a maker of mobile electronic devices, will use the money to help launch a smartphone that will be compete with Apple's 3G iPhone.
- UBS AG (UBS) will sell its Canadian energy operations and global agriculture business to JPMorgan Chase & Co. (JPM), Reuters reported. JPMorgan is buying Canadian Energy, UBS' Canadian-based commodities energy business, as well as UBS' London-based Global Agricultural Commodities business.
- Light, sweet crude for February delivery fell $2.45, nearly 6%, on the New York Mercantile Exchange yesterday (Monday) to settle at $39.91 a barrel. Crude prices have now fallen 70% from their July peak of $147.47 a barrel.
I am getting more frustrated each day when I read about banks buying foreign assets such as the deal announced in this article by JP Morgan when they took billions of tax payer money and asset guarantees from the government, from the TARP fund and other government and reserve monies that have given these institutions substantial liquidity.
Rather than help viable businesses such as mine consolidate debts to soften the effect of the losses of jobs, and substantial loss of equity many have suffered this year, including myself, which means many people are unable to complete treatment which has made it difficult for us to pay our obligations.
It is time to help America and the multitudes of people who are being thrust into poverty. We must take risk within our borders to create jobs and restore manufacturing to employ our many talented workers. Each day I hear stories from people who are losing jobs that have young families. These are decent people that compose the fabric of our society.
Our banking institutions would not be in business right were it not for the American government, it is time they reciprocate and invest in American's small businesses and help us shore up our balance sheets in these difficult times.
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