Weekend update - Gloomy economic news and other headlines

The recession may not have downsized Valentine's Day (no one wants to give six roses rather than 12) Congress passed the massive stimulus package, but that one act won't spell the end of our economic malaise, at least based on some of the headlines snatched from the Web this morning. Here is a sampling:

Recession crashes into the continent From The Guardian
For the big surprise of recent months has not been that Britain and the US have plunged into deep recessions, but that most countries of the 16-member euro bloc have entered recession at the same time, and are looking every bit as sick, if not sicker, than the Anglo-Saxon economies

Protectionist measures could spark trade war Fox News

Major partners, including the European Union and Canada, say the legislation favoring U.S. steel, iron and manufactured goods for government projects could undermine pledges by the leaders of major economies not to resort to perfectionism during the world economic downturn.

Requirements known as "Buy American" were softened as the bill progressed through Congress and after strong criticism from abroad. Senate and House negotiators agreed to a version that would require the government not to violate trade agreements when implementing the law.

The bill also allows the Obama administration and state governments to waive requirements to favor U.S. companies if they deem it in the U.S. public interest and if they publish a justification.

Treasury boss taking fire in Europe over stimulus plan NYT

Last week Giulio Tremonti, Italy’s finance minister and Mr. Geithner’s host for the weekend, gave a tart review of the Obama administration’s stimulus in a local newspaper here.“If the problem is an excess of debt, the cure is not adding more debt, whether that debt is public or private,” he wrote in the Corriere della Sera. Italy is one of the most indebted countries in Europe. Its debt surpasses its annual gross domestic product.

Fitch Report: another challenging year for produce

Despite the decline in energy and agricultural ingredient costs, reduced global demand is causing 2009 to be another challenging ye ar for the commodity protein, dairy and produce industries. Weak cash flow generation, high financial leverage and difficult credit markets will make refinancing risk a major issue for firms with low levels of liquidity and significant debt maturities.

'This year we are expecting liquidity and debt reduction to be a priority for the commodity food sector as many companies in the sector have generated negative free cash flow over the last 12 months,' said Carla Norfleet Taylor, Director at Fitch Ratings. 'We believe reduced financial flexibility and heightened refinancing risk will be major issues for highly leverage companies within the U.S. commodity food sector', added Wesley E. Moultrie, II, Sr. Director at Fitch Ratings.

Liquidity is expected to be far more important in 2009 compared to 2008. Fitch forecasts less capital market activity for high-yield commodity food companies, given market weakness, investor risk aversion and higher risk premiums. Stricter lending requirements are also expected to slow the pace of amendments and raise the cost of this form of financing.

Whopping deficit growing challenge Washington Post

Even before lawmakers began dickering over the massive package of spending and tax cuts -- the biggest dose of economic medicine ever conceived by Washington -- the federal government was headed for a budget deficit of nearly $1.2 trillion, a post-war record. The stimulus package will drive that number to nearly $1.4 trillion this year and to more than $1.1 trillion next year, according to congressional budget analysts, with expensive decisions about housing, health care and the banking system yet to come.

Lawmakers want to look at sheriff in Arizona NYT

Wal-Mart lays off close to 800 at home office: Triangle Business Journal
Duke said the company expects the changes to affect about 700 to 800 home office posts in the merchandising, real estate, marketing and support divisions in Wal-Mart U.S., Sam’s Club merchandising and some corporate functions.

Wisc.grants help boost local food sales Chicago Tribune

The department gave $225,000 worth of grants last year in its new Buy Local Buy Wisconsin program. Grant recipients reported nearly $584,000 in new sales in the program's first six months.

New mandatory organic standards in Canada Calgary Herald
The federal government on Friday unveiled new mandatory standards for organic foods and enforcement tools so inspectors can keep products falsely claiming to be organic off store shelves.

The mandatory regulation and certification of organic products, to come into force on June 30, were immediately praised by the industry.

Report: Texas PCA plant source of new salmonella outbreaks 11.com

Pace of climate change exceeds estimates The Washington Post
While it takes a relatively long time for plants to take carbon out of the atmosphere, that carbon can be released rapidly by wildfires, which contribute about a third as much carbon to the atmosphere as burning fossil fuels, according to a paper Field co-authored.

Where have the honeybees gone? News Press
Deland, Fla. native Rowan Jacobsen examines the CCD phenomenon as a possible foreshadowing of a looming agricultural crisis in his new book, "Fruitless Fall" (Bloomsbury, $25). He admits he wasn't prepared for the enormity of the problem.


Michigan State extension could be cut Detroit News

MSU Extension serves each county in the state with programming focused on agriculture, children, youth, families and economic development. The Michigan Agricultural Experiment Station works with more than 300 scientists, conducting research ranging from food safety to livestock production in East Lansing labs and among the 14 field research stations around the state.Combined the two services have an economic impact of $1 billion, Simon said.Jobs lost could range from youth programmers to plant researchers; many would be in an area in which the state's economy is growing -- agriculture, Simon said.Under Granholm's plan, the budget for both would be reduced from about $64 million to $32 million.