•GE Executive Says There's No Sign Yet of `Green Shoots' in Customer Orders

Discussion in 'Economics' started by ByLoSellHi, Jun 19, 2009.

  1. Ganegrene shoots?


    GE Vice Chair Rice Sees No ‘Green Shoots’ in Orders (Update3)
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    By Steve Matthews

    June 19 (Bloomberg) --
    General Electric Co. Vice Chairman John Rice said he isn’t seeing an increase in orders even as U.S. economic statistics suggest the world’s largest economy may soon shift to a recovery.

    “I am not particularly of the green shoots group yet,” Rice said today to the Atlanta Press Club, referring to a phrase used by Federal Reserve Chairman Ben S. Bernanke that described signs of a nascent recovery. “I have not seen it in our order patterns yet. At the macro level, there may be statistics suggesting the economy is starting to turn. I am not seeing it yet.”

    GE is the world’s biggest maker of jet engines, power-plant turbines, locomotives, medical imaging equipment. Rice oversees the Fairfield, Connecticut-based company’s industrial businesses.

    “We see a world where good companies and good consumers can’t get all the credit we would like,” Rice said. “Companies with lots of cash on their balance sheet are worried about whether they will get what they need for working capital” and are cutting spending.

    “Until that changes I don’t think you will see a significant rebound,” Rice said. “We are preparing for 12 or 18 months of tough sledding.”

    Federal Reserve policy makers meet next week amid indications the pace of a recession that began in December 2007 is easing, with housing starts rising more than forecast last month.

    U.S. Job Losses

    The Fed said last week the downturn may be slowing in almost half of its regions, though a weak labor market persists. Bernanke told Congress this month while the contraction is easing, “sizable” additional job losses will weigh on consumer spending. The U.S. lost 345,000 jobs in May, the smallest decrease in eight months.

    GE’s stock has lost more than half its value in the past 12 months. Rice said the stock’s decline reflects GE’s stake in the financial services business. GE shares rose 13 cents to $12.10 at 4:15 p.m. in New York Stock Exchange composite trading.

    “We are being painted by the same paintbrush that is painting all the banks,” Rice said. “We think over time the markets will recognize we have a little bit different portfolio.”

    To contact the reporter on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net
    Last Updated: June 19, 2009 16:54 EDT
  2. GE might be on the wrong side of business activities...

    "biggest maker of " jet engines, power-plant turbines, locomotives, medical imaging equipment...who needs jet engines, power-plant turbines, locomotives, medical equipment, NOW ?...

    If you want to look for an improvement of general economy, watch out for automotive industry and technology...:)
  3. The market does seem to follow GE. I noticed when GE takes a big hit like it did this week, The S&P follows later on.