Economy
TOP NEWS: Economy: July 5, 2012
- Rate Scandal Set to Spread
- Talking Point: Lower-Level Dynamics
- Has the European Slowdown Finally Hit the US?
- NYSE Plan Angers Brokers
- Positive Reports on US Jobs
Excerpts and more top stories
BARCLAY’S: Rate Scandal Set to Spread
David Enrich & Sara Schaefer Munoz, WSJ – A day after abruptly resigning amid a mushrooming scandal over interest-rate manipulation, former Barclays PLC chief Robert Diamond on Wednesday was assailed by British lawmakers for the bank’s actions, in a preview of the scrutiny likely to lie ahead for other big lenders that are under investigation.
ECONOMY: Talking Point: Lower-Level Dynamics
Financial Times – With the latest index of US manufacturing activity from the Institute for Supply Management sliding below the 50 level that theoretically divides expansion from contraction, plus a string of other weak US economic indicators, talk of recession has resurfaced. Is this justified?
ECONOMY: Has the European Slowdown Finally Hit the US?
Christopher Matthews, TIME – Unemployment has hit a new record high in Europe, and while some progress was made in last week’s euro-zone summit, the continent’s leaders still lack a credible and cohesive plan to stop the death spiral of economic contraction and ever higher debt loads.
STOCKS: NYSE Plan Angers Brokers
Jacob Bunge, WSJ – The New York Stock Exchange has sparked a storm in the U.S. stock trading community with an effort to lure more retail investors with better prices on trades through a program that mimics the so-called dark pools used by large banks and institutions.
JOBS: Positive Reports on US Jobs
Associated Press via NY Times – The number of people seeking unemployment aid in the United States last week fell to its lowest level since mid-May, suggesting layoffs are easing and hiring could pick up.
More top stories
CLIMATE: The Most Sensible Tax of All
Yoram Bauman and Shi-Ling Hsu, NY Times Opinion – The United States should jump at the chance to adopt a similar carbon tax to British Columbia. It’s an opportunity to reduce existing taxes, clean up the environment and increase personal freedom and energy security.
BANKING: Attention Turns to Barclay’s Future
Mark Scott, NY Times – A day after Robert E. Diamond Jr., the bank’s former chief executive, testified to a British parliamentary committee, the credit ratings agencies Standard & Poor’s and Moody’s Investors Service both placed the firm’s rating on a negative outlook on Thursday.
HEALTH CARE: Rick Scott: Jobs, Not Medicaid Growth
Tim Mak, Politico – Florida Gov. Rick Scott justified his decision to opt out of the Medicaid expansion Thursday, saying that the massive health care program was growing at a pace that outstrips general revenue, and that he was focused on helping his state get jobs.
MARKETS: US Stocks Drop
Chris Dieterich, WSJ – Stimulus measures from a trio of central banks and a pair of better-than-expected readings from the U.S. labor market failed to prop up stocks ahead of a key reading on the U.S. service sector.
ECONOMY: Retailers Report Tepid Sales For June
Associated Press via Washington Post – hoppers, worried about jobs and the overall economy, pulled back on spending in June, resulting in tepid sales results for many retailers. The reports raise concerns about Americans’ ability to spend during the back-to-school shopping season, which starts later this month.
HEALTH CARE: Rick Scott: Jobs, Not Medicaid Growth
Tim Mak, Politico – Florida Gov. Rick Scott justified his decision to opt out of the Medicaid expansion Thursday, saying that the massive health care program was growing at a pace that outstrips general revenue, and that he was focused on helping his state get jobs.
REAL ESTATE: States Steal Federal Foreclosure Funds At Own Peril
Editorial, Bloomberg – The U.S. housing market is showing tentative signs of life as demand for new homes and housing prices begin to rise in some areas.
REAL ESTATE: Apartment Rents Rise at Highest Rate Since 2007
Lauren Tara LaCapra, Chicago Tribune – Renting an apartment in the U.S. became even more expensive during the second quarter, as vacancies set a new 10-year low and rents rose at a pace not seen since before the financial crisis, according to real estate research firm Reis Inc.
RETAIL: Luring Online Shoppers Offline
Stephanie Clifford, NY Times – As online shopping has surged, traditional retailers have lost millions in sales to so-called showrooming — when shoppers check out products in stores that they then buy from Web sites like Amazon.
