ECONOMY September 12, 2011 | 5:11 PM
US President Obama is proposing a new $450 billion job creation package that includes tax cuts and project funding. The purpose of the American Jobs Act is to employ those who are jobless, while giving those who are working more money.
With lower taxes for employers and employees, Obama hopes people will spend more, thus boosting business for those seeking to employ new talent. US unemployment has remained at over 9% for more than two years. If enacted, the plan is expected to produce 1.9 million jobs and reduce unemployment by over 1%.Read more »
ECONOMY September 8, 2011 | 6:09 PM
The United States has fallen to fifth place on the list of the most competitive economies in the world, according to a survey conducted by the World Economic Forum. Switzerland topped the list for the third year in a row, with Singapore jumping ahead of Sweden to take the second spot. Finland moved up to fourth ahead of the United States.
The World Economic Forum’s survey assesses global economies based on 12 “pillars of competitiveness” such as infrastructure, innovation and macroeconomic environment.Read more »
ECONOMY September 7, 2011 | 3:32 PM
Retail sales figures in the United Kingdom declined in the month of August with consumers keeping a keen eye on their finances and jobs, according to a report by the British Retail Consortium.
Consumer confidence dropped for the third straight month while inflation continued to rise, driving spending down at the quickest rate in about four decades, reported Bloomberg. Retail figures were 0.6% lower than August 2010 in a like-to-like comparison of sales, which discounts sales from newly opened stores.Read more »
ECONOMY September 5, 2011 | 2:50 PM
Economists from the ECB Council are calling on the European Central Bank to reverse this year's interest rate, which has already been raised twice since January.
Currently at 1.5%, the high interest rate may further dampen the European economy according to members of the ECB Council, who believe that a contraction in consumer confidence, manufacturing and business may continue into the third quarter. Elga Bartsch, Chief European Economist for Morgan Stanley and member of the ECB Council, has reduced her Euro zone growth expectation for next year to only 0.5% due to the deceleration in manufacturing.Read more »
ECONOMY September 3, 2011 | 9:30 AM
The US Federal Housing Finance Agency (FHFA) is suing 17 financial companies – including Goldman Sachs, the Bank of America, JP Morgan Chase & Co, and Citigroup along with EU banks such as Barclays, Credit Suisse and the Royal Bank of Scotland – on the basis they exaggerated the value of mortgage packages sold totaling over $195 billion.
The FHFA, which keeps tabs on the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), launched legal action on behalf of the two agencies, claiming that banks breached securities law and neglected to properly verify mortgagers’ reported earnings in sales of amalgamated mortgages as securities to investors.Read more »
ECONOMY September 2, 2011 | 9:15 AM
US consumer confidence is reaching ever-increasing depths, this month hitting a record-low since 2009. The new consumer attitude ratings - down to 44.5 from over 59 in July - mark the most significant fall in almost three years, according to private-sector research consultancy Conference Board.
Waning consumer confidence could have an effect on retail sales though as of yet it is too early to tell if this will be the case. Industrial production may slow but avoid a steep decline.Read more »
ECONOMY August 29, 2011 | 9:31 AM
China has released plans to invest ¥1.27 trillion, or $199 billion, in new railways and subways. According to the China Securities Journal, this new five-year plan is aimed at easing traffic congestion and attracting urban development.
Local Chinese governments will finance 35% of the bill. The remaining funds for the project will be loaned by commercial banks. The National Development and Reform Commission will also provide low interest loans through China Development Bank, one of only three policy lenders in China. These low interest loans include an invested ¥170 billion in Beijing until 2015.Read more »
ECONOMY August 26, 2011 | 10:12 AM
Japan’s lower house of parliament has approved a bill promoting investment in solar and other forms of renewable energy. This ruling was the first step toward current Japanese Prime Minister Naoto Kan’s vision of a nuclear-free Japan. It is expected that the upper house will grant final legislative approval in the next few days, with related laws enforced by July 2012.
Under this bill, utilities will be mandated to purchase any amount of electricity generated from small hydro power plants, solar, biomass, wind and geothermal energy sources at pre-set rates for a maximum of 20 years. As reported by Business Green, this new legislation should push renewable energy from 9% of generated energy to 20%, with over 30 gigawatts (GW) of renewable energy capacity developed in the next ten years.Read more »
ECONOMY August 25, 2011 | 9:19 AM
August gold prices have remained upward-swinging and are on track to becoming the best monthly yield since 1999. With gold rallying above $1,900 an ounce, gold futures are up 16% and are expected to climb.
Investors are throwing more money into gold bars and bullion-based derivatives due to record prices and an uncertain global economy.Read more »
ECONOMY August 24, 2011 | 9:15 AM
The European Central Bank has purchased €14.3 billion, or $20.5 billion, in government bonds last week in an attempt to soften the blow from the debt crisis that lingers over Italy and Spain. The ECB has yet to release information regarding which government bonds it had purchased.
A week earlier, the ECB bought €22 billion in bonds for Italy and Spain. The ECB has purchased roughly €110.5 billion in bonds since the launching of the Securities Markets Program in May 2010.Read more »
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