Headlines---

    

Controversy Continues on the Appointment of a Leasing Exec. as CEO of UAEL

  GE Cut 22,000 jobs in 2001, Changes Tune from Last Week about Business

     eLessors, new non-profit leasing organization, Continues to Grow!!!!

         Housing Constructions Up

 

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Please save January 3^rd, Thursday,  1pm, California time for

 

  Meet the Leasing News Maker

 

  This is a beta program where 100 people will be able to write questions “live”

  in an “auditorium” format on line at Leasing News (one on one at a time or

more, as this is the first large test of this concept ). 

 

 This is a beta test to learn if readers are interested in asking questions directly

  to leasing newsmakers.  Two fifteen minute sessions.  We can expand the time,

and also the number who will “tune in” to meet the Leasing News Maker.

 

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Controversy Continues on the Appointment of a Leasing Exec. as CEO of UAEL

 

 

First Source Capital was formed in 1999 and we joined UAEL that year.  I attended the annual conference in Monterey that fall, learned a lot but came away with the distinct feeling that UAEL was an "old boys club".  In fact I was so "put off" by the attitude of the Executive Director and the Board that I chose not to join in 2000.

 After talking with several brokers, who were long time members and Bill Grohe, I did rejoin for 2001, went to San Antonio and again was disappointed with my investment.

 With what I believe to be lack of good faith in hiring a broker member I do not now plan to join for 2001 and instead will look to ELA and NAELB instead.

You can quote me!

 

Jerry Christensen Chief Operating Officer

first source capita 916-563-1963 office

916-212-1963 cell 916-568-7128 fax

jchristensen@amrb.com www.firstsourcecapital.com

 

 ( Leasing News has requested  since November 29^th ----many times  from a sitting officer of UAEL for a statement. There has been much controversy regarding the appointment, more than the executive board evidently wants to see. We are told one will be forthcoming today, Wednesday. editor )

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GE Cuts 22,000 jobs in 2001; and although Immelt predicted

“double-digit” growth, today he speaks out of the other

side of his mouth, expecting weak 2002 business.

http://www.leasingnews.org/archives/December%202001/12-11-01.htm

Story by Alan Clendenning, Associated Press

NEW YORK – General Electric Corp. cut 22,000 jobs this year from its work force of 313,000 and is prepared for a business climate in 2002 just as weak as this year, the company said Tuesday.

Some of the cuts at the industrial and financial services conglomerate were offset by new hires in some company divisions, and by acquisitions GE made that increased staffing, said spokesman David Frail.

Frail said the company would not provide figures detailing the net impact of the job cuts and additions on GE's work force until it releases its annual report next spring.

GE this year periodically announced job cuts at various divisions, but Tuesday marked the first time the company has said how many eliminations have taken place overall.

The reductions were part of a "dramatic restructuring" at GE to deal with the recession, chief executive Jeff Immelt said Tuesday at a conference for analysts. He predicted that tough economic times will persist throughout 2002, and said GE executives aren't expecting a turnaround until 2003.

"We still view that we're going to have to run the company in a very lean way next year," Immelt said.

Immelt, who took over GE's leadership when Jack Welch retired in September, spent nearly two hours telling analysts his view of the world economy and the company's prospects for 2002 and 2003.

Despite the gloomy outlook for next year, Immelt said GE is well-positioned for an extended downturn and anticipates increasing profits 17 percent to 18 percent in 2002 – from to between $1.65 and $1.67 per share.

Among this year's job cuts, the 3,000 for the GE Capital unit are expected to generate $400 million in pretax savings next year.

The increase in 2002 profits could reach 19 percent or higher if economic conditions improve in the second half of 2002, but Immelt downplayed that scenario.

"The base plan we're going to give for next year assumes nothing improves for the year," he said.

Immelt also reiterated that the company is comfortable with analysts' earnings estimates of 39 cents per share for the fourth quarter and $1.41 per share for 2001.

Investors should be pleased with GE's 2001 performance because the company is on track to provide year-end profits of 11 percent despite the poor economy and the terrorist attacks in New York and Washington, D.C., Immelt said.

"With the global recession and the 9/11 tragedy, we still delivered," he said.

Immelt said he isn't concerned about having to make his mark after taking over from Welch, who led the company for two decades and is widely credited for turning it into one of the most admired corporations in the world.

Instead, Immelt said he spends his time planning about new businesses for GE and how to make the company grow rapidly.

"The one thing I have never spent one thing worrying about is replacing Jack," he said. "We're on to the next page."

GE shares rose $1.42, or 3.7 percent, to $39.72 Tuesday on the New York Stock Exchange.

  

On the Net: www.ge.com

 

To see what he said last Tuesday, go here:

http://www.leasingnews.org/archives/December%202001/12-11-01.htm

 

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THE eLESSORS NETWORKING ASSOCIATION REGISTERS

OVER 150 NEW MEMBERS IN THREE DAYS

 

Annual Membership Dues To Increase January 1

 

 The eLessors Networking Association (eLNA), a

networking association for the eLeasing community, has confirmed

registering over 150 new members this week.

 

A spokesperson for eLNA advised, "In the past three days over 150

industry professionals have joined eLNA, in response to aggressive

promotion of our membership campaign. While annual dues are scheduled to

increase January 1, 2002, introductory "discounted" memberships will

remain available through the end of this year, encouraging existing

members to upgrade the level of their membership."

 

eLNA advised new membership registration was most likely stimulated by

opening Exhibitor/Sponsor Pre-Registration for the eLNA Annual

Conference scheduled next fall. Corporate membership is required for

companies wishing to exhibit at and/or sponsor eLNA's high-profile

networking events. Executive membership is required to attend eLNA

events.

 

For additional information about eLNA, please visit

http://www.elessors.com.

 

About The eLessors Networking Association

 

eLNA represents a proactive "eLeasing Industry"... a national network of

industry leaders and smaller pre-IPO companies and professionals from

the technology, commercial finance and manufacturing business sectors.

For additional information, please visit http://www.elessors.com.

 

Housing Construction rises by 8.2% in November, Highest Since July

by Jeanne Aversa, Associated Press

Home builders last month broke ground on the largest number of projects since July. Low mortgage rates and mild weather helped the housing market remain a bright spot in the gloomy economy.

The Commerce Department reported Tuesday that housing construction rose to a seasonally adjusted annual rate of 1.65 million housing units in November, an 8.2 percent increase over the prior month.

On Wall Street, the news gave stocks a big boost and fueled investors' hopes that the economy is improving. The Dow Jones industrial average closed up 106.42 points at 9,998.39.

The 8.2 percent increase marked the biggest one-month gain since January and pushed housing starts to the highest level since July, when they grew to a rate of 1.66 million units.

November's rebound came after housing starts fell by a revised 4 percent in October, a larger drop than the government previously reported.

The stronger than expected performance last month occurred even as consumer confidence fell to a 71/2-year low in November and the employment picture worsened. The nation's unemployment rate climbed from 5.4 percent to 5.7 percent and payrolls fell sharply.

Low mortgage rates are a key reason that the housing and construction markets have remained stable even as the national economy has been suffering through a recession since March.

The average interest rate on a 30-year fixed-rate mortgage was 6.7 percent in November, compared with 7.7 percent for the same month a year ago. In early November, mortgage company Freddie Mac reported, rates dipped to 6.45 percent, the lowest level in 30 years of record-keeping. Since then, rates have moved higher, rising to 7.09 percent last week.

"Home buyers likely rushed to take advantage of low rates before they moved higher," said Merrill Lynch economist Karen Dexter. "Warm weather also contributed to the jump."

Builders said low interest rates and solid appreciation in housing values are motivating new home buyers. A survey released Monday by the National Association of Home Builders cited those factors as reasons that builders are more optimistic about sales prospects for December and the next six months.

To lure prospective buyers, more home builders are offering incentives, such as including some options at a discount or no charge and paying for buyers' closing costs, said David Seiders, the association's chief economist.

In November, construction of single-family homes rose 3.2 percent to a rate of 1.26 million units, after registering a 3.4 percent decline the month before.

Construction of apartments, condominiums and other multifamily housing soared by 30.1 percent last month to a rate of 346,000, following a 2.9 percent drop in October.

By region, housing starts rose by 20.1 percent in the Northeast to a rate of 173,000. In the Midwest, they grew by 20.5 percent to a rate of 382,000, and in the West, starts rose by 12.7 percent to a rate of 372,000. In the South, however, they fell by 1.6 percent to a rate of 718,000.

"A few months from now these housing starts are going to require appliances and furnishings," said Ken Mayland, economist with ClearView Economics. "This is all to the good for the economy."

Economists are hopeful that the Federal Reserve's 11 interest-rate reductions this year will induce consumers to spend and businesses to invest, setting the stage for an economic recovery next year.