Economy News - part 4
ECONOMY October 12, 2011 | 12:03 PM
- Rolling strikes continue in protest of Prime Minister’s €6.6 billion austerity plan
- Government said it would not reach 2011 deficit target, falling short by €2 billion
- IMF: bailout deal needs to be revised by EU according to new needs
Greece is shutting down with petroleum industry workers, who have declared a 10-day strike, the latest to join the list of protesters against Prime Minister George Papandreou’s €6.6 billion ($8.7 billion) austerity plan. In coming days, prison guards and hospital workers are expected to join the pack, with Greek tax inspectors set to strike next week.
The ongoing wave of protests follows the heated public-sector walk-out staged last week when ADEDY, Greece’s biggest public sector union, called to strike after European Union ministers hinted that they might renegotiate the terms of Greece’s most recent bailout. “They are not trying to save Greece. They are just killing workers,” ADEDY Vice President Ilias Vrettakos said in a rally speech. Some 20,000 supporters took part.Read more »
ECONOMY October 7, 2011 | 11:54 AM
- ADP reports 91,000 new private sector jobs; 5,000 jobs lost for factories
- Layoff announcements exceeded 115,000 last month
- ADP says small, medium-sized businesses fuel job growth
The United States saw over 91,000 private-sector jobs added this month according to reports from Automatic Data Processing (ADP) and consulting firm Macroeconomic Advisers. Over 1,000 jobs were created in goods-producing industries, but factory employment did see a job drop of 5,000 jobs.
The government will post its latest unemployment rate today. Most economists are expecting official numbers to reveal a modest improvement in employment.Read more »
ECONOMY October 5, 2011 | 3:54 PM
- Exports in India jump 44%, future decline likely due to EU, US recession fears
- HSBC PMI: Manufacturing sector slowed to 50.4
- August inflation reaches 13 month high of 9.8%
India's latest export and manufacturing data reveals that India's economy remains threatened by the possibility of a harsher slowdown. After the data was released, the BSE India Sensitive Index, or Sensex, lost 2% on October 3.
The International Monetary Fund reduced its forecast for India's outlook last month to 7.8% for this year and 7.5% growth in 2012, down from previous predictions of 8.2% and 7.8%, respectively. In July, economists speculated that India's 80% increase in exports was unsustainable.Read more »
ECONOMY October 4, 2011 | 6:15 PM
- US Senate passes bill punishing China for currency policies
- Value of yuan has appreciated by 5% in past year
- Critics cite slow growth of yuan as giving China an unfair advantage in global marketplace
The US Senate has voted to advance a bill (S.1619) that would impact China's currency policies, effectively forcing China to raise the value of the yuan, or renminbi (RMB).
If passed, the bill will allow the US to enforce tariffs within 90 days on imports from another country found to be subsidizing exports by devaluing its currency. Under these criteria, the bill would allow American businesses to seek duty on imports from China.Read more »
ECONOMY October 4, 2011 | 12:11 PM
- iPhone accounts for just 2.6% of Indian market
- Shipments to India fewer than to Norway in Q2
- Slow development of 3G networks damaging to iPhone sales
Apple is struggling to make iPhone sales take off in India, the world’s second-largest mobile phone market.
The emerging Indian economy attracts leading tech players from all over the world and has some 602 million smartphone subscribers. But the number one smartphone manufacturer has been unable to mirror the dominance it has shown elsewhere throughout the world.Read more »
ECONOMY October 3, 2011 | 2:20 PM
- Personal income fell $7.5 billion in August, disposable income down $5 billion
- Wages and salaries fell $12 billion in August, after a $24 billion rise in July
- Knock-on effect of falling wages sees savings rate fall 4.5%
Personal income fell close to $7.5 billion, with disposable personal income (DPI) down $5 billion in August while personal consumption expenditure (PCE) rose almost $23 billion.
Though the August dip represents a 0.1% overall decline in personal income, in July the figure rose more than $17 billion. DPI rose almost $14.5 billion in the same month and PCE was up by close to $77 billion. The dip in real disposable income in August was 0.3%, higher than the 0.2% decline in July.Read more »
ECONOMY October 3, 2011 | 10:10 AM
- HSBC index 49.9% since August, contraction likely
- CFLP index shows four-month export high despite demand concerns
- Global PMI falls to 50.1%, growth forecast reduced to 4%
The HSBC purchasing managers' index (PMI) was 49.9 in September and has remained under 50 for the past three months, indicating a contraction in the manufacturing sector.
The HSBC PMI is a reading of small Chinese firms, while the Chinese Federation of Logistics and Purchasing (CFLP) PMI reads the larger, state-owned companies.Read more »
ECONOMY September 30, 2011 | 5:43 PM
- Greek debt of €340 billion creates uncertainty for Germany
- Germany's unemployment drops below 2008 levels
- EESC President supports Eurobonds, further EU integration
Europe's sovereign debt crisis has been spreading throughout Euro zone nations, leading to the bailout of three countries.
Italy has become the latest casualty of the recent European downgrades outbreak, as leaders struggle to swiftly resolve the debt crisis. As Ireland, Greece, Spain, Cyprus, and Italy deal with their ratings cut, the future of the Euro seems more uncertain. The nations that have endured the most these past two years are those who have been downgraded and bailed out.Read more »
ECONOMY September 28, 2011 | 12:26 PM
- Macy’s to hire 78,000 seasonal staff, 4% more than 2010
- Macy’s forecasts 4% to 4.5% sales increase in Q3 and Q4
- Kohl’s and JC Penney holiday hiring on a par with 2010
Retailer Macy’s is to hire 78,000 holiday workers, 4% more than the 2010 holiday season, encouraged by rising sales figures. The company forecasts a year-on-year increase of between 4% and 4.5% in same-store sales for the last two fiscal quarters this year, partly boosted by sales around Thanksgiving and Christmas.
Workers will be based at department stores Macy’s and Bloomingdale’s and also support the retailer’s online business at its warehouses and call centers. Though this staffing measure is primarily a seasonal measure, the company says certain positions may well lead on to permanent positions. Macy’s is a big employer, with 170,000 workers, mostly employed on a full-time basis.Read more »
ECONOMY September 28, 2011 | 12:03 PM
- New home sales fall 2.5% to annual rate of 295,000 units
- Median price for new homes down 8% to $209,000
- Midwest the only region reporting growth, sales up 8%
New home sales in the US fell to the lowest point in six months, hitting close to 2.5% for a yearly total of 295,000. The median new home price for August 2011 fell almost 8% from the same month last year, marking a drop unseen since July 2009.
After the most dramatic fall in prices in a two-year period, homebuyers are seeking the cheaper option of buying distressed homes or previously owned homes with lower prices due to foreclosures.Read more »