TOP NEWS: Economy: October 11th, 2012
Top Five News and Analysis Links (Excerpts Below)
- U.S. Jobless Claims Fall, Lowest in Over Four Years
- Fed survey finds modest US growth
- Fed’s Tarullo Calls for Cap on Bank Sizes
- Markets up, earnings down. What’s really going on?
- Trade Deficit Widens
Excerpts and More Top News and Analysis:
JOBS: U.S. Jobless Claims Fall to Lowest in Four and a Half Years - NYT
The number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level since February 2008, government data showed.
JOBS: Wall St. Moves Higher on Jobless Data - NYT
Shares moved higher on Thursday, after a bigger-than-expected drop in weekly jobless claims, a sign of improving labor market conditions.
JOBS: Fewest seek jobless aid since ’08 - POLITICO
The sharp drop offers a hopeful sign.
JOBS: New BLS Data Add to Bad Labor Market Story – FURTICK & RANDAZZO, RCM
The Job Openings and Labor Turnover Survey (or JOLTS) showed that since December 2007 there has been a net loss of 4.67 million jobs. But as scary as that number is, it does not tell us much on its own.
JOBS: About That Large Drop in Claims – WSJ
The Labor Dept. reported this morning that claims fell to a four-year low, dropping 30,000 in the week ended Oct. 6 to 339,000. It was an unusually large move; consensus was for a modest drop of 2,000 to 365,000.
ECONOMIC GROWTH: Fed survey finds modest US growth – FT
Activity expands modestly nationwide, providing further evidence that the US economy is in little danger of falling back into recession.
ECONOMIC GROWTH: Fed Beige Book: District Summaries - WSJ
The Fed’s latest “beige book” report noted that the economy expanded “modestly” across most of the U.S.
ECONOMIC GROWTH: Economy grew ‘modestly’ – WP
Beige Book report finds increases in housing activity and spending on autos
FED: Fed’s Tarullo Calls for Cap on Bank Sizes – WSJ
A top Federal Reserve official said Wednesday the U.S. government should cap the size of big banks, put limits on growth of existing banks and block large mergers.
FED: Fed’s Stein Backs Bond Buying, Questions Long-Term Efficacy -WSJ
Federal Reserve governor Jeremy Stein threw his support behind the central bank’s latest bond-buying program in his first public speech Thursday, but said he shared concerns about the long-term effectiveness of future asset purchases.
INVESTMENT: Markets are up. Earnings are down. Here’s what’s really going on - WP
Investors are paying more for shares of companies that are making less money. To understand why, it helps to look at the details of the first major industrial company to report its third-quarter results, Alcoa, which released its earnings numbers Tuesday afternoon.
INVESTMENT/POLITICS: Memo To Investors: Bernanke And Obama Are Your Business Partners - FORBES, JERRY BOWYER
Last week, I began to make the case that the investors should pay far more attention to the country environment in which prospective companies are domiciled than they, and Wall Street commonly do. Some got it; some didn’t.
INVESTMENT: No Free Lunch in Closed-End Funds – BARRONS
Yield-chasing investors have pushed up prices of closed-ends, leaving many trading at rich to exorbitant premiums to net asset value. This party won’t end well.
TRADE: Trade Deficit Widens – WSJ
The U.S. trade deficit widened in August, as exports of agricultural and industrial goods fell.
WALL STREET : The financial gospel according to JPMorgan Chase CEO - WP
The leader of the nation’s largest bank was true to form speaking at a Council on Foreign Relations event on Wednesday.
WALL STREET: Wall Street’s Forgotten Victims Have Some Advice – BLOOMBERG, MICHAEL LEWIS
I didn’t go looking for the kid. He found me. Of course, it stood to reason, with what’s been happening on Wall Street, that the children of Greenwich, Connecticut, must be taking a serious financial hit.
DEBT: No quick fix for our debt addiction – POLITICO, CHUCK BENTLEY
Unbridled binge spending has now spread to even the most humble American households.
HOUSING: Housing Is Bright Spot in Beige Book - BLOOMBERG
The housing market showed broad improvement as the economy continued to expand modestly in late August and September, the Federal Reserve said.
ECONOMY/POLITICS: Voters Equate ’Growth’ With ’Winner’ in Debates - BLOOMBERG
To win, say “growth.” That’s the takeaway from a survey of past presidential debates.In election years when economic troubles are the main issue, the advisers of candidates tend to settle on one of two themes: “jobs” or “growth.” Then they instruct their candidate to hammer home the ideas that the terms evoke.
COMMODITIES: U.S. Revises Estimates for Soybean Production Higher – NYT
The changed estimate came after months of drought and heat. But the agency lowered its estimates for corn.
PRIVATE EQUITY: E-Mails Hint at Collusion on Big Deals – NYT
A new filing in an antitrust case against 11 large private equity firms provides fresh insight into deals for some publicly traded companies.
PRIVATE EQUITY: Insight into private-equity leaders - WP
Exchanges among top executives reveal their thinking on leveraged buyouts and cooperating with rivals.
BUSINESS NEWS & ANALYSIS
BUSINESS:Sprint Says It Is in Negotiations With Softbank of Japan - NYT
The deal would give Sprint, the struggling American cellphone service provider, a deep-pocketed backer to help finance its latest turnaround.
PATENT LAW/BUSINESS: Does the Law Support Inventors or Investors? - NYT, OPINION
The protections for intellectual property were intended to encourage innovation. Now many fear they have become ‘destructive weapons.’
BUSINESS: U.S. competitors lobby against Huawei - WP
Cisco, other tech companies push for increased scrutiny into possible security risks posed by Chinese firm.
BUSINESS: Dotcom plans to launch ‘Megaupload 2.0’ - FT
Founder of Megaupload says he will launch a new file-sharing site, called MegaBox, even as US continues to extradite him for copyright infringement.
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