Spanish Yields Retreat

Spanish Yields Retreat

By TOMMY STUBBINGTON and MICHELE MAATOUK
October 11, 2012

Bond yields on Spanish government debt eased back from earlier highs Thursday, while Spain's benchmark equity index pared losses and the rest of the region's stock markets edged higher, as investors grew hopeful that Standard & Poor's Corp.'s downgrade of Spain's credit rating would force the country's hand in seeking a bailout.
With Moody's Investors Service already assessing Spain's credit-worthiness at its lowest investment level, the country is a step closer to losing its membership in key bond indexes, which could in turn prompt selling of the nation's bonds, push yields even higher and force the government to seek a bailout.

good news:US jobless rate

US jobless rate falls to 7.8 pct., 44-month low

US unemployment rate falls to 7.8 pct. in September, lowest since Jan. 2009; hiring increases
By Christopher s. Rugaber, AP Economics Writer | Associated Press Fri, Oct 5, 2012
WASHINGTON (AP) -- The U.S. unemployment rate fell to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years. The rate fell because more people found work, a trend that could impact the presidential election.
The Labor Department says employers added 114,000 jobs in September. The economy also created 86,000 more jobs in July and August than first estimated. Wages rose in September and more people

World food prices rose 1.4% in Sept

Oct. 4, 2012, 7:40 a.m. EDT

World food prices rose 1.4% in Sept

By Michael Haddon

LONDON (MarketWatch) — World food prices increased by 1.4% in September, the United Nations’ food body said Thursday, rising slightly after two months of stability mostly due to strengthening dairy and meat prices.

The Food and Agriculture Organization’s food price index, which measures the monthly change in international prices of a basket of food commodities, rose by three points in September to a new level of 216 points.

It currently stands 9.2% below its peak of 238 points in February 2011 and 4% below its level of 225 points in the same month last year.

European Stocks Advance After Spanish Stress-Test Results

European Stocks Advance After Spanish Stress-Test Results

Bloomberg News
By Tom Stoukas on October 01, 2012
European stocks advanced the most in two weeks as test results showed the stress to the Spanish banking system was less than estimated, outweighing weakening economic data from Asia. U.S. index futures climbed, while Asian shares fell.

Credit Agricole SA (ACA) rose 3.7 percent after starting talks to sell its unprofitable Greek unit. International Consolidated Airlines Group SA (IAG) climbed 1.7 percent after the International Air Transport Association raised its 2012 global airline-profit forecast. Banco Popular Espanol SA slumped the most in almost 15 years after announcing a capital-increase plan.

The Stoxx Europe 600 Index (SXXP) gained 0.9 percent to 270.85 at 11:35 a.m. in London. The benchmark gauge rallied 6.9 percent in the quarter ended Sept. 30 as the Federal Reserve and European Central Bank started bond-buying programs. The measure slid 1.2 percent on Sept. 28. Standard & Poor’s 500 Index futures added 0.4 percent today, while the MSCI Asia Pacific Index retreated 0.4 percent.

U.S. Economy Expanded Less Than Forecast in Second Quarter

U.S. Economy Expanded Less Than Forecast in Second Quarter

By Alex Kowalski - Sep 27, 2012
The economy in the U.S. grew less than previously forecast in the second quarter, reflecting slower gains in consumer spending and farm inventories.

The world’s largest economy expanded at a 1.3 percent pace from April through June after growing at a 2 percent rate in the first quarter. The revision compared with a prior estimate of 1.7 percent and the Bloomberg survey’s 1.7 percent median forecast.
Household purchases, which account for about 70 percent of the economy, rose at a 1.5 percent annual pace last quarter, the slowest in a year after a previously reported 1.7 percent gain. Purchases advanced at a 2.4 percent rate in the prior three- month period.
“Consumption is not good,” said Thomas Simons, an economist at Jefferies Group Inc. in New York. “Consumers are still driving GDP but only at a very modest pace.”

Bernanke’s Battle for Jobs Eclipses Inflation Concerns

Bernanke’s Battle for Jobs Eclipses Inflation Concerns

By Caroline Salas Gage and Craig Torres - Sep 14, 2012

Ben S. Bernanke for the first time pledged that the Federal Reserve will buy bonds until the economy gets closer to his goals, cementing his place as the Fed’s most innovative chairman and signaling the battle against unemployment eclipses any concerns about inflation for now.
The central bank yesterday announced its third round of large-scale asset purchases since 2008, with the difference that it didn’t set any limit on the ultimate amount it would buy or the duration of the program. Instead, Bernanke said stimulus will be expanded until the Fed sees “sustained improvement” in the labor market.

Census: Rich-poor gap widens

Census: Rich-poor gap widens

By Dennis Cauchon and Paul Overberg, USA TODAY
2012/9/13
The income of American households continued to shift dramatically in 2011, falling sharply for middle-income and working-age people while rising for top earners and seniors, the Census Bureau reported Wednesday.
Overall, median household income fell 1.5% to $50,054 last year, the fourth consecutive annual decline after adjusting for inflation, the bureau said. The typical household has lost ground in seven of the past 10 years and now takes in less cash than it did in 1996 when adjusting for inflation.
The annual income report is a key indicator of the economic health of the USA and its middle class. Median income is the middle point of households — half made more, half made less in 2011. Only a handful of groups did better last year:
•Affluent. The income for the top 5% of households — those making $186,000 or more — rose 5.3% last year, reflecting the growing value of highly educated professionals. Income gains were greatest among the top 1%, said David Johnson, chief of social, economic and housing statistics for the Census Bureau. There is a "widening of the gap between the top and the bottom," he said.
•Seniors. Those 65 and older saw household income rise 2% above inflation last year and 12.8% over the last decade, helped by the steadiness of Social Security checks.

Fed head Bernanke joined refinancing crowd

Fed head Bernanke joined refinancing crowd

September 7, 2012
(AP) WASHINGTON — The Federal Reserve's record-low interest rates have shrunk income for savers but cut costs for borrowers. Chairman Ben Bernanke is among the beneficiaries.

Bernanke's latest financial disclosure form, released Thursday, shows he refinanced his Washington home in 2011. He took out a 30-year mortgage with a fixed 4.25 percent rate, replacing one taken out in 2009 that carried a 5.375 percent rate.

Both mortgages were valued at between $500,000 and $1 million. The government requires top officials to estimate only ranges for their financial assets, rather than give exact figures.

The Fed has held its key short-term interest rate at a record low near zero since December 2008. It's also pursued unconventional programs to try to lower long-term rates and boost the U.S. economy after the

Romney vs. Obama: For the Economy, It Really Doesn’t Matter Who Wins, Ritholtz Says By Morgan Korn | Daily Ticker

Romney vs. Obama: For the Economy, It Really Doesn’t Matter Who Wins, Ritholtz Says
By Morgan Korn | Daily Ticker
2012/9/6

From now until Nov. 6, voters will be hearing a lot about the economy. President Barack Obama will be defending his economic record over the last four years. Republican presidential nominee Mitt Romney will be touting his proposals to revive the economy. But how much control do presidents really have over the economy? A president's economic record could be tarnished the moment he (or she) moves into the White House and one's economic legacy could be a factor of well…luck.

OECD says global growth slowed by European crisis; recession ‘taking hold’ in eurozone

OECD says global growth slowed by European crisis; recession ‘taking hold’ in eurozone

By Associated Press, Updated: Thursday, September 6
PARIS — Europe’s debt crisis is pushing the 17-country eurozone toward recession and dragging down the global economy, the Organization for Economic Cooperation and Development said Thursday.

Even growth in traditional economic powerhouse Germany is slowing, and the OECD’s interim assessment said that Europe’s largest economy could slip into recession by the end of the year.
“The negative elements of the global economy ... stemming mostly from Europe are there and they are somewhat stronger than they used to be a few months ago,” OECD Chief economist Pier Carlo Padoan told reporters.

Euro-Area Confidence Drops, German Jobless Increases: Economy

Euro-Area Confidence Drops, German Jobless Increases: Economy
Thursday, August 30, 2012
 (Bloomberg) -- Economic confidence in the euro area fell more than economists forecast in August as leaders struggled to rein in the sovereign debt crisis and the region’s slump deepened.
An index of executive and consumer sentiment in the 17- nation euro area dropped to 86.1 from 87.9 in July, the European Commission in Brussels said today. That’s the lowest since August 2009. Economists had forecast a decline to 87.5, the median of 26 estimates in a Bloomberg News survey showed. In Germany, jobless claims rose for a fifth month in August.

Bernanke Faces Critics on Both Sides at Jackson Hole

Bernanke Faces Critics on Both Sides at Jackson Hole

AUGUST 30, 2012
By RANDALL W. FORSYTH | MORE ARTICLES BY AUTHOR

Markets hang on arguments for and against further monetary stimulus in anxiously awaited speech.
QE or not QE? That is the question the financial markets are looking for Federal Reserve Chairman Ben Bernanke to answer in his anxiously awaited speech to the annual confab of policy makers and academics Friday in Jackson Hole, Wyo. But, Hamlet-like, the Fed chief may not provide a simple response.

In part, that is because the central bank is the target of the slings and arrows of the outrageous fortune of being subject to political pressures while in the pursuit of the largely academic question of the course of monetary policy. Both from the political campaign and from within the Fed, the chairman is being criticized

Second-quarter growth revised up to 1.7 percent

Second-quarter growth revised up to 1.7 percent

WASHINGTON | Wed Aug 29, 2012
(Reuters) - The economy fared slightly better than initially thought in the second quarter, but the pace of growth remained too slow to shut the door on further monetary easing from the Federal Reserve.

Gross domestic product expanded at a 1.7 percent annual rate, the Commerce Department said in its second estimate on Wednesday as stronger export growth offset a pull-back in restocking by businesses wary of sluggish domestic demand.

That was up from last month's 1.5 percent estimate and in line with economists' expectations. The economy grew at a 2.0 percent pace in the January-March period.

Home Prices In 20 U.S. Cities Mark First Gain Since 2010

Home Prices In 20 U.S. Cities Mark First Gain Since 2010
By Shobhana Chandra - Aug 28, 2012

Home prices in 20 U.S. cities climbed in June from a year earlier, the first gain in almost two years, indicating the market that triggered the recession is beginning to rebound.
The S&P/Case-Shiller index of property values in 20 cities increased 0.5 percent from June 2011, the first gain since September 2010, a report from the group showed today in New York. The median forecast of 29 economists surveyed by Bloomberg News called for a 0.05 percent drop. Nationally, prices jumped

Spanish Recession Deepens

Spanish Recession Deepens

By DAVID ROMÁN
202/8/28
MADRID—Spain's economic recession deepened in the second quarter amid the country's largest-ever bank failure and a steep downturn in domestic spending that could sharpen as the government raises sales taxes starting next month.

Fresh figures Tuesday from the statistics institute INE for the second-quarter and 2011 suggest "the economy is much weaker than previously thought," said Tullia Bucco, an economist at UniCredit Research. "This risks weighing on the government's capacity to reach the fiscal targets set for this year and the next."

All Eyes on Bernanke’s Jackson Hole Speech

Is More Fed Action the Answer? All Eyes on Bernanke’s Jackson Hole Speech

By Bernice Napach | Daily Ticker
2012/8/27
By Friday mid-morning the financial markets will have turned their attention away from the Republican national convention to focus on Fed Chairman Ben Bernanke. That's when he'll be speaking at the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, as he does every year.
The title of this year's speech: "Monetary Policy Since the Crisis."
Financial markets will be looking for any sign of a change in Fed policy, specifically whether the Fed will embark on another round of quantitiative easing. That's when the Fed buys government debt in order to lower interest rates and increase the money supply, which can ultimately boost economic activity.
The Fed has already commenced two programs of quantitative easing (a.k.a. QE), extended "Operation Twist" until the end of the year and depressed short-term interest rates to near zero until at least 2014.

Jobless claims rise, labor market healing very slowly

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Jobless claims rise, labor market healing very slowly

WASHINGTON | Thu Aug 23, 2012
(Reuters) - The number of Americans filing new claims for jobless benefits unexpectedly rose last week, suggesting the labor market is healing too slowly to make much of a dent in the unemployment rate.

Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 372,000, the Labor Department said on Thursday. That was the highest level in five weeks.

The data keeps pressure on President Barack Obama ahead of his November re-election bid. His Republican challenger is trying to focus voters' attention on a lofty unemployment rate that has dogged Obama's presidency.

'Fiscal cliff' plan will send US into recession: CBO

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'Fiscal cliff' plan will send US into recession: CBO

By Paul Handley (AFP)2012/8/23
WASHINGTON — The US Congress's budget analysts said Wednesday that current plans designed to slash the budget deficit after January 1 will plunge the country into recession and push up joblessness.
The Congressional Budget Office said the poison-pill political deal on the budget last year -- sharp cuts to spending and tax increases that will hit household finances -- will cause the economy to shrink by 0.5 percent next year.
It would also likely send the unemployment rate to 9.1 percent by the second half of 2013, from the current already-high 8.3 percent, the CBO said.
The plan -- known as the "fiscal cliff" because of the sharp return to recession widely foreseen -- would succeed in cutting some $500 billion from the budget deficit, forecast at $1.1 trillion for this fiscal year.
But the current growth trajectory of about 2.25 percent would abruptly halt under the current law, the

Global stock rally continues on ECB, Greece optimism

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Global stock rally continues on ECB, Greece optimism

By Marc Jones
LONDON | Tue Aug 21, 2012
(Reuters) - Rallying European markets lifted global stocks to a 3-1/2 month high on Tuesday, on hopes that meetings on Greece's future this week and new crisis plans being drawn up by the European Central Bank will see the euro zone master its debt problems.

European shares .FTEU3, which have risen 16 percent since June, were up 0.4 percent at a 13-month high ahead of what was expected to be a positive open on Wall Street.

After modest rises in Asia it left the MSCI global share index .MIWD00000PUS up 0.4 percent at 1200 GMT, .EU .L .N while the euro hit a two-week high of $1.2398 versus the dollar and climbed further against the yen and sterling.

Housing Starts In U.S. Fall As Permits Reach Four-Year High

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Housing Starts In U.S. Fall As Permits Reach By Four-Year High

Shobhana Chandra - Aug 16

New-home construction in the U.S. fell in July, while the number of building permits jumped to the highest level in four years, indicating the industry will keep improving in the second half of the year.
Starts fell 1.1 percent to a 746,000 annual rate from June’s 754,000 pace, Commerce Department figures showed today in Washington. The median estimate of 79 economists surveyed by Bloomberg News called for 756,000. Building permits, a proxy for future construction, rose to an 812,000 pace,