U.S. CEOs lower expectations on sales, hiring and capital spending

by Steven K. Beckner

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.By Cees Bruggemans, Chief Economist of FNB.Is South African stability about to become disturbed by another major overseas crisis on a par with 2008 or 1998?Or will we be able to keep cruising within existing Rand, inflation, prime interest rate, JSE share prices and GDP growth parameters as seen so far this year?

(Reuters) - Auto companies will hire more people and expand plants over the next year to keep up with increasing consumer demand for vehicles to replace aging cars and trucks, according to a report released on Friday. Despite worries about declining demand in Europe caused by the debt crisis and pressures on vehicle pricing, U.S. auto executives surveyed by advisory firm KPMG are bullish about their companies' prospects. "The survey results clearly demonstrate a U.S. automotive industry that is regaining confidence," Gary Silberg, KPMG's national auto industry leader, said in a statement. ...

European stocks fell on renewed concerns over a potential escalation of the euro-zone sovereign debt crisis, as the political gridlock in Greece places pressure on market confidence.

Chad Brand submits: Stock markets love gridlock. This is what one would think after listening to investment pundits in the media. The thinking goes that markets hate uncertainty and with gridlock in Washington very little actually gets done, eliminating fears of new, unexpected legislation.