TOP NEWS: Economy: October 5th, 2012
- Jobless Rate Falls to 7.8%, Lowest Since January 2009
- After Multi-Billion Loss, JPMorgan Continues to Revamp
- Despite Gains, Many Flee Stock Market
- A $5 trillion tax myth
- US cracks down on Medicare fraud
Excerpts and More Top News and Analysis:
JOBS: Jobless Rate Falls to 7.8%, Lowest Since January 2009 – NYT
While employers added only a modest number of jobs, the unemployment rate dropped below 8 percent for the first time in the Obama presidency.
JOBS: Why Did the Jobless Rate Drop? – WSJ
The U.S. unemployment rate tumbled in September, mainly on positive factors. But a broader measure was flat at 14.7%.
JOBS: When Job-Creation Engines Stop at Just One – NYT
Constrained by scarcer financing but aided by better technology, new businesses have fewer employees than they did a decade ago, posing a worrying trend for employment.
BANKING: After Multi-Billion Dollar Loss, JPMorgan Continues to Revamp - NYT
Two senior executives at JPMorgan Chase, Irene Tse and Barry Zubrow, are expected to leave by the end of the year, in the latest round of management reshuffling after the bank’s multi-billion trading loss.
BANKING: New Shuffle at J.P. Morgan – WSJ
J.P. Morgan’s Barry Zubrow, a lieutenant of CEO James Dimon, is expected to give up his job as regulatory affairs chief at the bank.
MARKETS: Despite Gains, Many Flee Stock Market – WSJ
The stock market is reaching toward new highs on the fourth anniversary of the financial crisis, but many refuse to be lured back.
MARKETS: Call to review for-profit exchanges rules – FT
SEC commissioner says regulations are outdated
TAXES: A $5 trillion tax myth – WP, Robert J. Samuelson
Romney and Obama elide the truth on taxes.
HEALTHCARE: US cracks down on Medicare fraud - FT
91 doctors and nurses charged over false billings
MUNICIPAL FINANCE: Fiscal ‘Emergency’ Hits Another California City – WSJ
Atwater, Calif., declared a fiscal emergency, as it sought to avoid becoming the fourth municipality in the state this year to file for bankruptcy protection.
TORT: A Factory’s Closing Focuses Attention on Tort Reform – NYT
The closing of Blitz USA, a maker of gasoline cans, inspired commercials about abusive lawsuits, but the ads duck the complexities of product liability cases.
QE3: Bernanke’s QE3 Will Turn Out Better Than Japan’s – BLOOMBERG, William Pesek
It’s Paul Volcker time for Ben Bernanke and Masaaki Shirakawa.
SECURITIES: U.S. Justice in Collision With Foreign Fraud – NYT
A conviction of securities fraud, wire fraud and mail fraud could be overturned because it might not apply to foreign transactions.
INSIDER TRADING: How to Run Your Hedge Fund From a Prison Cell – BLOOMBERG, Jonathan Weil
As if America’s hedge-fund elite didn’t have enough crises to worry about — riots in Spain, the fiscal cliff, Lindsay Lohan’s hotel brawl — the parade of underlings copping pleas to insider-trading crimes just keeps growing. Every week it seems another one flips, promising to turn state’s evidence.
ENERGY: Restart Sought at Nuclear Power Plant - WSJ
The company that operates the troubled San Onofre nuclear power station in California said it is seeking federal permission to restart part of the facility.
ENERGY: Natural Gas Glut Pushes Exports – WSJ
Energy companies are racing to export natural gas from the U.S. as they search for more-profitable markets amid a glut that has depressed prices.
FACEBOOK: Mark Zuckerberg Maps Out Facebook’s Next Billion – BLOOMBERG, Kirsten Salyer
Apparently Mark Zuckerberg is not satisfied with Facebook Inc.’s market penetration. On Sept. 14, the social network reached 1 billion users, or one out of every seven humans worldwide. That means six of seven inhabitants of planet Earth are not users.
APPLE: Since Steve Jobs – NEW YORKER, Nicholas Thompson
Has Apple lost its perfectionism?
DRUGS: U.S. Moves to Shut Drug Websites – WSJ
U.S. officials moved this week to shut down websites owned by Canada Drugs, the Internet pharmacy and drug wholesaler that distributed counterfeit Avastin to U.S. doctors last year.
HP: Hewlett-Packard Looks Set to Print Lots of Red Ink - BLOOMBERG, Jonathan Weil
Hewlett-Packard Co. shares hit a new 10-year low today, following yesterday’s remarks by Chief Executive Officer Meg Whitman that HP’s revenue would be down sharply next year.
HP: Meg Whitman’s Plan For HP Doesn’t Make A Lick Of Sense – FORBES, Adam Hartung
The beleaguered CEO’s new 5 year “turnaround” will fail. Completely. There are very sound reasons why the woeful tech giant has lost 35% of its value since she took the company’s reins.
BUSINESS NEWS & ANALYSIS
GAMING: Hits Fading, Zynga Warns Again - WSJ
Social games developer Zynga projected disappointing third-quarter results and again lowered its earnings expectations for the full year.
BANKING/SOCIAL MEDIA: :Citi Won’t Sleep on Customer Tweets - WSJ
Citigroup is using social media like Twitter and Facebook to improve its customer service.
MOBILE: Sprint Expected to Discuss Possibility of MetroPCS Bid - WSJ
Sprint board members will hold a special meeting by phone at noon Friday, where directors are expected to discuss whether Sprint should renew its pursuit of MetroPCS, said people familiar with the matter.
KAISER: Kaiser Permanente CEO to Retire - WSJ
Kaiser Permanente Chief Executive George C. Halvorson will step down in December 2013, retiring from leadership of the big nonprofit health plan and hospital system.
ART: Gallery Is Sued on Sales - WSJ
An art foundation founded by a Greenwich, Conn., investment manager has filed a lawsuit against a Manhattan art gallery, alleging that the gallery owner bilked the foundation of $3.5 million as he helped it acquire paintings and sculptures for its collection.
MOVIES: Redbox Dabbles in Tickets - WSJ
Coinstar’s Redbox hopes to shake up the ticketing business, selling seats to live events with just a $1 fee tacked on.
TOYS: Layaway Leads to Early Rush on Holiday Toys - WSJ
It isn’t even Halloween and some Christmas toys are already getting scarce, in part because of new, earlier layaway plans and programs at big retailers that let parents reserve what are expected to be hot sellers.
RETAIL: Avon Chairman Jung to Resign - WSJ
Avon Products said Andrea Jung will step down as chairman of the beauty-products company at year end and named lead independent director Fred Hassan as her successor.
The Common Good publishes a U.S. domestic news digest every weekday, available here.