The week that was: 6 May 08 - 13 May 08
Whisper it quietly but Procurement Leaders is sensing that a recent rally in the much-maligned greenback could be sign of the first shoots of recovery for the beleaguered US economy. As if those in procurement (and US tourists) need reminding, the dollar has fallen 26 per cent against the world’s major currencies since 2002. However, there are promising signs that the greenback could be launching a long-awaited fightback – it has risen three per cent against the euro from its lowest point in early-April and is also up a similar rate against the pound. So is this the start of a long-term rally? Procurement Leaders advises against putting your money on it for the time being.
Quote of the week – “….we don’t see this as good news, not for producing countries, companies or consumers. It is going too fast.” Christophe de Margerie, chief executive of Total, tells reporters why even the French oil giant is unhappy about the soaring cost of crude.
Surging oil prices maybe of concern to Mr de Margerie, but there may soon be reasons for cheer in this most troublesome of markets. A report issued by a leading analyst from Lehman Brothers claims that the arrival of a new president later this year will lead to Saudi Arabia upping its output as it looks to buy influence with the new incumbent in the White House, a move which, Edwards Morse believes, could see prices fall to as low as $80 a barrel by 2009. However, for every ying, there’s a yang, and Morse predicts more short-term pain before the long-term gain kicks-in.
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