Economy | News-Opinion
TOP NEWS: Economy: September 13th, 2012
- Household Income Falls to ’95 Level
- Economists Are Wary of QE3 Benefits
- Insiders Get Post-IPO Pass
- Informer Sparked New York Probe
- US wholesale inventories rise in July
Excerpts and More Top Stories
INCOME DROP: Household Income Falls to ’95 Level - WSJ
The typical American household saw its income fall for the fourth consecutive year in 2011 and the poverty rate was essentially flat from a year earlier, according to the Census bureau.
INCOME DROP: US median income lowest since 1995 – FT
Median income dropped in 2011, but the rates of Americans in poverty and lacking health insurance fell, offering mixed results for the Obama administration
INCOME DROP: Grim Census ‘Progress’ - WSJ
Middle class incomes fall by 1.5%.
INCOME DROP: U.S. Income Gap Rose, Sign of Uneven Recovery – NYT
The median household income in 2011 was $50,054, a level last seen in 1996.
FED/ QE3: Economists Are Wary of QE3 Benefits - WSJ
Economists expect another round of bond buying by the Fed but are skeptical about the economic benefits.
FED: Bernanke Should Do the Right Thing and Not Say He’s Sorry – BLOOMBERG, EDITORIAL
If Federal Reserve Chairman Ben S. Bernanke fails this week to announce new measures to stimulate the U.S. economy, he’d better have a good reason. We can only think of a bad one, and we urge Bernanke to refute it explicitly.
FED CREDIBILITY: Bernanke Credibility on Interest Rate Seen Outlasting End of Term in 2014 - BLOOMBERG
The end of Ben S. Bernanke’s term as Federal Reserve chairman in January 2014 hasn’t stopped investors from betting the central bank will hold the benchmark interest rate close to zero into the following year.
MARKETS: Insiders Get Post-IPO Pass - WSJ
Wall Street underwriters increasingly are allowing corporate insiders to sidestep agreements that prevent them from quickly selling shares after initial public offerings.
MARKETS/TECHNOLOGY: Congress to Take Closer Look at Computer-Driven Trading - WSJ
Congress is stepping up its scrutiny of computer-driven trading and its effect on market stability after a string of technical glitches this year that roiled markets and hurt investor confidence.
MARKETS/FED: Stocks in U.S. Are Little Changed Before Federal Reserve Policy Statement – BLOOMBERG, OPINION
U.S. stocks were little changed, following a two-day advance in the Standard & Poor’s 500 Index, as investors awaited a Federal Reserve announcement that may initiate a new round of bond buying to spur the economy.
TAX WHISTLEBLOWER: Informer Sparked New York Probe- WSJ
A probe by New York state’s attorney general of tax practices at private-equity firms is based on information from a whistleblower who approached the office in the past year.
TAX WHISTLEBLOWER: Sometimes, It Takes a Thief to Catch One – NYT
In spite of the $104 million whistle-blower award given to a convicted criminal this week, White Collar Watch notes that there isn’t a perverse incentive to violate the law.
TAX WHISTLEBLOWER: WHITE COLLAR WATCH – NYT, OP-ED
Bradley Birkenfeld at a federal prison in Pennsylvania. As a whistle-blower, he exposed Swiss tax evasion schemes.
WHOLESALE INVENTORY: US wholesale inventories rise in July – FT
Economic weakness in Europe, China and uncertainty surrounding the US deficit has prompted many companies to pull back on investment.
WHOLESALE PRICES: Wholesale Prices in U.S. Increase the Most in Three Years as Crude Surges – BLOOMBERG
Wholesale prices in the U.S. increased in August by the most in more than three years, reflecting a surge in energy costs.
WHOLESALE INFLATION: Wholesale Inflation Rose 1.7% in August - REUTERS via NYT
A government report said the Producer Price Index increased 1.7 percent last month, but the numbers showed that underlying inflation pressures were contained.
WHOLESALE: Wholesale Inflation Rose 1.7% in August - NYT
A government report said the Producer Price Index increased 1.7 percent last month, but the numbers showed that underlying inflation pressures were contained.
WHOLESALE INVENTORY: US wholesale inventories rise in July - FT
Economic weakness in Europe, China and uncertainty surrounding the US deficit has prompted many companies to pull back on investment.
UNEMPLOYMENT: First-Time Jobless Claims in U.S. Increased More Than Forecast Last Week BLOOMBERG, OPINION
The number of Americans filing applications for unemployment benefits rose more than projected last week, showing scant improvement on the outlook for jobs.
BANKING: Former Banker Promises Inside Peek at Goldman – NYT
Coming less than a year after an explosive opinion article, Greg Smith’s memoir, “Why I Left Goldman Sachs,” promises to be a tell-all of his 12-year career at the Wall Street bank.
BANKING: JPMorgan Reshuffles Its Operations Again – NYT
In an internal memo circulated on Wednesday, the bank said it would break its corporate and investment banking division into two units.
BANKING: REVOLVING DOOR - NYTIMES, OP-ED
Carlos Hernandez, who held the reins of JPMorgan’s equities business, will now head up the prime brokerage services for the bank’s hedge fund clients.
BANKING: Treasury Backs Plan for Standard Chartered Settlement - NYT
The prospective penalty would be smaller than the $340 million the British bank had to pay a New York State regulator to settle a money laundering case.
REGULATION: Lawmakers Delay Plans to Increase Oversight of Regulators - NYT
Lawmakers postponed plans to advance a bill that could curb the influence of Wall Street regulators, a move that came as some federal officials mounted opposition to the effort.
WORKER BENEFITS: California Workers to Shoulder More Costs - WSJ
California will begin overhauling pensions for government workers in January, after Gov. Jerry Brown signed a law Wednesday to boost current employees’ contributions and cut benefits for future workers.
COMMODITIES: Corn Falls, Soy Climbs on New USDA Forecasts - WSJ
U.S. forecasters again cut their estimates for the nation’s corn and soybean harvests as a widespread drought continued to take a heavy toll in the Farm Belt.
DEFENSE MERGER: U.S. to Feel Effects of European Merger – WSJ
The planned European megamerger that would create the world’s largest aerospace and defense company could trigger the biggest shake-up among U.S. rivals in almost two decades.
BUSINESS:
FACEBOOK: Zuckerberg Remarks Send Facebook Shares Soaring - TIME
On Wall Street, confidence in corporate management is crucial. Zuckerberg outlined his strategic vision. Now, Facebook needs to execute on that vision
IPHONE 5: Apple Unveils iPhone 5 – WSJ
Apple introduced a lighter and thinner smartphone, iPhone 5, at an event in San Francisco. The device will work with wireless carriers’ fastest LTE networks and run new mobile software.
IPHONE 5: A Curmudgeon Navigates an IPhone World - BLOOMBERG, OPINION
Caroline Baum: I am always amazed at the number of people I know who live on their iPhones. And I mean live. The iPhone is never more than an arm’s length away.
IPHONE 5: Can IPhone 5 Deliver Us From Evil? – BLOOMBERG, OPINION
By Timothy Lavin: Are you ready? Is your soul prepared? Apple Inc., as you’ve no doubt noted in your prayers, will present its new version of the iPhone today. In world-historical terms, this will rank among the big ones: the wheel, the steam engine, God’s revelation to Moses.
IPHONE 5: Design Thrills Apple’s Partners, but Will Cost Users – NYT
The iPhone 5 has a new connector on the phone’s base that instantly renders all accessories and chargers obsolete. An adapter that will work with many, but not all, current accessories starts at $30.
PROFITS: Pier 1 Raises Outlook as Profit Soars – WSJ
Pier 1 Imports’ quarterly earnings jumped 58% as the home-furnishings retailer saw results buoyed by strong sales growth and helped by an income-tax benefit.
FORD: Ford Facing Decisions on Europe, Asia - WSJ
Ford Motor is preparing to shake up its European operations, possibly closing one factory, as the auto maker moves toward the naming of an heir-apparent to Chief Executive Alan Mulally.
ENERGY/CHASAPEAK: Chesapeake Sales Ease Crunch – WSJ
Chesapeake Energy sold $6.9 billion of oil and gas assets, raising enough money to pay for this year’s drilling plans and trim debt.
FACEBOOK: Zuckerberg Remarks Send Facebook Shares Soaring
On Wall Street, confidence in corporate management is crucial. Zuckerberg outlined his strategic vision. Now, Facebook needs to execute on that vision
GM: GM Seeks to Close German Plant - WSJ
GM is scrambling to hammer out a restructuring plan with European labor chiefs that would include an agreement to shut a German factory.
ABERCROMBIE: Abercrombie Hires Goldman – NYT
Abercrombie & Fitch has retained Goldman Sachs as an adviser as the troubled clothier assesses potential responses to moves by one of its investors, the activist hedge fund Relational Investors, a person briefed on the matter said on Wednesday.
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