Today’s news update focuses on the current unemployment rate, GM Management, Healthcare and Stocks.
U.S. Economy List Only 11,000 Jobs
Current Unemployment Rate News
In the strongest employment report since the recession began nearly two years ago, the government said Friday that the nation’s employers had all but stopped shedding jobs in November, taking some of the pressure off of President Obama to come up with a jobs creation program.
The Labor Department reported that the United States economy lost 11,000 jobs in November, and the unemployment rate fell to 10 percent, down from 10.2 percent in October.
CEO Whitaker to shakeup GM management: report
NEW YORK (MarketWatch) — General Motors Co. will announce sweeping changes to its leadership early Friday that will include promotions for its younger managers to help revitalize the troubled automaker, according to a published report.
The management shakeup follows the sudden departure of Fritz Henderson, 51, as chief executive after just nine months on the job and the ascent of Ed Whitacre, 68, to head the struggling Detroit automaker.
Obama Health Overahaul May Fail to Cut Spending on Medicare
Dec. 4 (Bloomberg) — White House Budget Director Peter Orszag says the medical-system overhaul now being debated in the Senate puts in place “crucial steps” to help slow the growth of U.S. health-care spending.
As the lawmakers struggle to reach consensus on the nation’s most far-reaching health legislation in four decades, some economists and analysts don’t share that confidence in either the Senate or the House bills.
US Stocks Futures Surge After Nonfarm Payrolls Report
NEW YORK (Dow Jones)–U.S. stock futures surged Friday morning as the monthly nonfarm payrolls report shattered expectations, providing a sign the labor market is finally starting to heal.
After trading around 15 points higher prior to the report, Dow Jones Industrial Average futures jumped 123 points to 10475 in recent trading. Standard & Poor’s 500 futures added 15 to 1113 and Nasdaq 100 futures gained 24 to 1805.
Setting off the gains, U.S. job losses slowed sharply in November and the unemployment rate unexpectedly declined. In its monthly report, the Labor Department said nonfarm payrolls fell by just 11,000 last month, slowing down from a downwardly revised 111,000 drop seen in October. It was the best showing since December 2007, when payrolls rose by 120,000, said a Labor department official. Economists surveyed by Dow Jones Newswires had expected a payroll decrease of 125,000.
Friday’s news roundup includes updates on China, the economy, the fed and health care and its effect on the Democratic Party.
China Pledges Support for Economic Recovery, Urges Free Trade
China’s President Hu Jintao says his country is working hard to increase domestic demand and that Asia-Pacific economies must work together to open up trade.
In a speech at the Asia Pacific Economic Cooperation forum in Singapore, the Chinese president listed his country’s efforts at fighting the global economic crisis.
PENPIX-A look at Fed voters this year and next
Nov 13 (Reuters) – The voting lineup on the Federal Reserve’s policy-setting Federal Open Market Committee is about to shift once again.
Every year, four regional Fed bank presidents rotate out of voting seats, making way for four others. The current voting lineup will hold for the FOMC gathering on Dec. 15-16 before the new voters come in at the Jan. 26-27 meeting.
2010: Health care hurting Dems?
“The healthcare battle appears to be helping Republicans running for the Senate,” The Hill notes. “Two Quinnipiac polls released Thursday show the leading GOP candidates in Connecticut and Ohio growing their leads. Former Rep. Rob Simmons (R-Conn.) leads Sen. Chris Dodd (D-Conn.), 49-38, and former Rep. Rob Portman (R-Ohio) has opened his first leads over two potential Democratic opponents.”
In today’s news we are linking to economic updates and a news article on the Internet’s 40th birthday!
New York, October 30 – Internet today has revolutionized lives but in the process it has traveled miles. As Internet turns 40, let’s take a walk down the memory lane to see how it all began. Click above link for the full story.
Focus on the Economy
Good News on Economy Poses Challege for Obama: How to Keep it Going
Washington Bureau – The U.S. economy expanded at a faster-than-expected 3.5% rate in the third quarter, unofficially marking the end of the worst recession since World War II and boosting hopes for the strength of a long-awaited recovery.
But the growth surge, which ended four straight quarters of economic contraction, poses a challenge to Washington policy-makers: It was largely a result of a rebound in consumer spending which, in turn, was heavily influenced by federal stimulus spending.
Politics Today: The Battle Over the Stimulus
PRESIDENT OBAMA TODAY: The Recovery and Transparency Board will release its reports detailing how the economic stimulus plan’s funds have been spent through Sept. 30 and how effective the plan has been in terms of job creation, with the White House claiming the plan “has created and saved at least 1 million jobs.”
Oil prices traded down at just over $79 a barrel Friday as the strengthening U.S. dollar outweighed news that the U.S. economy had snapped four straight quarters of contraction, suggesting demand for crude will improve.By midday in Europe, benchmark crude for December delivery was down 69 cents to $79.18 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.41 to settle at $79.87 on Thursday.
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Photo Credit: http://jedsundwall.com/img/internet.jpg
WORLD NEWS
14 Americans Die in Afghan Helicopter Crash
Fourteen Americans were killed in Afghanistan on Monday in two separate incidents involving helicopters. Seven soldiers and three civilian employees of the United States embassy — all of them Americans — were killed in a helicopter crash in western Afghanistan, military officials said. And in southern Afghanistan, the midair collision of two coalition helicopters resulted in the deaths of four American soldiers. A spokeswoman said gunfire from insurgents was not to blame for the collision.
ECONOMY
Retail gas prices are spiking to levels last seen in the heat of summer driving season, raising fears that consumers could cut back on holiday spending.
The average price for a gallon of regular gasoline rose for the 13th straight day, adding sixth-tenths of a cent overnight to $2.671, according to auto club AAA, Wright Express and Oil Price Information Service.
Cost Cutting CEO Slices ING in Two
Jan Hommen, the veteran cost-cutter who earlier this year took the reins at ING Group NV, the Dutch bancassurer bailed out by the government, has made the ultimate cut.
ING said on Monday it would split itself in two, disposing of its insurance operations over the next four years and raising 7.5 billion euros ($11.3 billion) in a rights issue.
Merkel Says Saving Won’t Pull German Out of the Slump
Chancellor Angela Merkel said that spending is necessary to pull Germany out of its worst recession in modern history, justifying her government’s focus on tax cuts to generate economic growth.
Merkel, in a speech to a convention of her Christian Democratic Union in Berlin today, stood by tax cuts worth 24 billions euros ($36 billion), more than the 15 billion euros she had pledged before the Sept. 27 elections. Delegates approved the coalition’s policy platform for the next four years, after the Free Democrats backed the program yesterday. The Christian Social Union, Merkel’s Bavarian ally, approved it at a meeting in Munich, Deutsche Presse-Agentur reported.
Considering how the story of the balloon boy was all over the news and the Twitter community yesterday, we are going to break from some of our traditional news reels and add a bonus link to the “balloon boy” story. Thankfully the six-year-old was at home and safe while the world feared the worst.
‘Balloon boy’ dad: It wasn’t a stunt
Upset that anyone would think he would stage a stunt involving his own son and a homemade flying-saucerlike balloon, and struggling with still-raw emotions, Richard Heene called Thursday’s riveting drama played out in the skies over northern Colorado a “horrible moment.”
ECONOMY
Bank of America Posts Third-Quarter Loss on Defaults (Update3)
Bank of America Corp., the biggest U.S. lender, posted its second quarterly loss in less than a year, unable to shake off effects of the economic contraction that drove the company to take two taxpayer bailouts.
Production in U.S. Increases More Than Anticipated (Update2)
Industrial production in the U.S. rose more than three times as much as anticipated in September, putting manufacturing at the forefront of the emerging economic recovery.
THE WORLD
Pakistan faces new wave of Taliban attacks
Pakistan’s army chief briefed the country’s top leaders Friday on the tenuous security situation as the government combats a new wave of attacks believed to have been orchestrated by Taliban militants.
HEALTH
Local people, agencies prepare for H1N1 outbreak
It’s October and flu season’s here. But along with concerns about the seasonal flu that typically occur this time of year, health agencies are warning people about the H1N1 flu virus.
H1N1 was originally called “swine flu” because tests showed that many of the virus’ genes were similar to ones that normally occur in pigs in North America. But further study showed that the new virus is very different, says the Centers for Disease Control and Prevention.
ECONOMY
263,000 Jobs Lost in September 2009
The American economy lost 263,000 jobs in September — far more than expected — and the unemployment rate rose to 9.8 percent, the government reported on Friday, dimming prospects of any meaningful job growth by the end of the year.
The Labor Department’s monthly snapshot of unemployment dashed hopes that the pace of job losses would continue to slow as the economy clawed its way back from a deep recession. Economists had been hoping for 175,000 monthly job losses.
Stocks Set to Fall Based on Jobs Report
NEW YORK (CNNMoney.com) — U.S. stocks were set to open lower Friday as investors reacted to a worse-than expected government report on the job market.
At 8:36 a.m. ET, S&P 500, Nasdaq-100 and Dow Jones industrial average futures were lower, with losses deepening after the release of September job data.
Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins.
HEALTH
Health Plan Advances as Millions Spared From Fines (Update1)
Oct. 2 (Bloomberg) — The Senate Finance Committee, ending its debate over the biggest changes in the U.S. health-care system in four decades, agreed to protect millions of Americans from the legislation’s most punitive taxes and penalties.
The panel voted to spare retirees and employees in high- risk professions from a new tax on the costliest insurance plans, reduce or waive fines for people who fail to buy coverage and give states money to help insure low-income Americans.
The last-minute revisions clear the way for committee passage as early as next week of the only health-reform legislation that may attract Republican support in Congress.
INTERNATIONAL
Rescuers scramble to find Indonesia earthquake survivors
Bangkok, Thailand – Relief efforts continued Friday in the stricken Indonesian city of Padang, near the epicenter of Wednesday’s 7.6-magnitude quake. Rescuers are still digging through the rubble of ruined buildings and homes and, in rare cases, pulling out survivors.
Aid workers are also focused on helping residents left destitute by the disaster. Tens of thousands are estimated to be homeless or afraid to sleep inside unsound buildings, and makeshift shelters have sprouted around the city, much of which lacks access to electricity and water.
Analysis: Iran to escape nuclear sanctions until 2010
No new sanctions were ever likely to be imposed on Iran at the meeting in Geneva, no matter what Iran said. None now will be imposed until next year at the earliest.
But while even Russia seems to think that some punishment is inevitable if Iran does not change course, the purpose of sanctions becomes less clear as time passes.
Even if both the Russians and the Chinese agree to tough measures, analysts do not believe they would stop Tehran completing a nuclear device should it wish to do so.
Follow these links for the complete articles.
FINANCE / ECONOMY
Dollar Trades at Year Low Versus Euro on Risk Demand Before Fed
Sept. 23 (Bloomberg) — The dollar traded within a cent of a one-year low against the euro on speculation the global economic recovery encouraged investors to buy higher-yielding assets before the Federal Reserve’s policy meeting today….
“The dollar is likely to remain weak in the near term,” said Lee Hardman, a currency strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. in London. “What’s driving the dollar lower is the exceptionally loose liquidity conditions, and this encourages its use as a funding currency.”
U.S. Stocks Fluctuate as Falling Commodities Offset Fed Bets
Sept. 23 (Bloomberg) — U.S. stocks fluctuated as declines in commodities tempered speculation the Federal Reserve will signal the economy is strengthening. The dollar traded at a one- year low against the euro, while oil, gold and copper retreated.
“There’s concern we’ve moved too far, too fast without any meaningful correction,” said Malcolm Polley, chief investment officer at Stewart Capital Advisors in Indiana, Pennsylvania, which manages $1 billion. “I do think any correction will be muted because the latest figures point to modest economic recovery. But we still need to see top-line corporate growth.”
DEFENSE
Strategy Shift for Afghanistan?
A senior administration official tells Fox that President Obama and his national security team began fresh analysis of the Afghanistan strategy on Sept. 13 in the White House situation room as part of an on-going review of war policy.
“There’s this idea that there’s a change of strategy looming,but there are difficult questions to ask as we continue to review this,” the official said.
“There are developments on the ground that we have had to look at and the election has raised some issue in regards to our efforts to increase good governance. We constantly reassess what is happening and challenge previous assumptions.”
ENVIRONMENT
China pledges climate change action
The Chinese President, Hu Jintao has announced his intention to achieve a significant reduction in the growth of his country’s C02 emissions over the next decade.
In 1996 Don Tapscott, co-author of the Paradigm Shift, wrote, The Digital Economy, alerting us of the information highway that would shortly revolutionize how we communicate in every facet of our lives. He spoke of the fundamentally new digital economy, “where the paper trail ends and essential information is instead sent racing at the speed of light across networks.” Tapscott may have been using a crystal ball as we have certainly seen the evidence of this just recently with the Iran elections, and almost everywhere else we turn.
[flashvideo file=wp-content/uploads/1600/large-Tapscottflv.flv /]
In the Digital Economy, Tapscott answered the burning top of mind question every forward-looking manager and business person or business owner asks when the fabric of how business as usual changes to business as unusual… “What does the new technology (or other) mean to me and my business?”
We had the unique pleasure of meeting and interviewing Mr. Tapscott just prior to several TV tapings, several years ago. What he had to say then is still relevant today. In his interview Tapscott predicted the future of technology and how it would impact every area of business… from merchandise tracking systems, to how personal data is logged.
He spoke to the newness of technology,
“What’s so new about this economy is the actual heart of everything. The newness of it. There’s a convergence of communication technologies and content and broad public interest databases. These are crashing together and creating new digital media, changing forever how we do business and create wealth and social development. It’s creating a new economic sector that will be the basis for all other sectors. The new information superhighway is a powerhouse…”
Join Dennis McCuistion as he and Don talk about the future…
And as always thank you for joining us as we talk about things that matter with people who care…
Niki Nicastro McCuistion
Executive Producer/producer
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Why do countries around the world now seem to outstrip the United States in terms of free market philosophies as well as tax issues, from the flat tax to social security? Can the US catch up? During this installment of McCuistion Television, focusing on freedom in America, Dennis McCuistion is joined by three panelists on location at FreedomFest. Discussing the state of freedom in America, Dennis McCuistion is joined by:
- Daniel Mitchell – Senior Fellow at the CATO Institute
- Michelle Muccio – Washington D.C. Representative and Production Associate at The Acton Institute
- Larry Abraham – The late Larry Abraham was the co-founder of PanAmerica Capital Group, Inc. and long-time author and editor of the Insider Report, an international geopolitical investment newsletter with over 10,000 private subscribers, worldwide.
The last twenty-five years of United States history have been successful in leading America towards a smaller government. However, many economists and futurists look with question to the next twenty-five years to determine if, in fact, the trend will continue. There is a rising concern that socialist reforms will begin to take a hold on the free market system that has defined America for centuries.
Panelists discuss the free market system and how the opposing view of making the strong weaker by promoting economic equality is a dangerous approach. History and current affairs have produced clear evidence that the idea of “fair” doesn’t work. Larry Abraham, with his extensive international exposure, expounds on this viewpoint by explaining the international view of America right now.
Wrapping up the conversation on freedom in America, Panelists also discuss the flat tax, social security reform and some of the empirical evidence that supports both. The panelists close the episode on “The State of Freedom in America” with FRTV’s Dennis McCuistion by offering suggestions for viewers to make a difference in these issues today.
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1704 – 07.02.09
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During this installment of McCuistion, Dennis McCuistion gathers financial wisdom from key experts regarding your personal finances in a tough economy. McCuistion is joined by Ed Douglas, author of 7 Simple Steps to Financial Freedom and a retired Bank CEO, and Kim Snider, a Financial Success Coach and author of How to Be the Family CFO.
In the current unstable economic climate where people are losing their jobs, their savings and the money they’ve invested, there is a need for financial wisdom for those who are ready to take control of their personal finances. Douglas and Snider discuss topics related to stock market losses, personal financial planning, saving, job loss, and debt accumulation and payoff.
Stock Market Losses
For those who have incurred stock market losses, it could take 10-20 years for the money to be regained. Consequently, people are going to have to save more and work longer. Snider and Douglas, offer both suggestions and warnings for the ready investor during this time period.
Personal Finance
It is critical that a clear plan is in place for family finances, a plan that takes future financial goals into consideration. Expounding on the topic of personal finance, the experts discuss financial wisdom principles and guidelines for saving, the safest places for you to put your money, what to do when you lose your job, credit, debt and more. Further discussing what to do in the event of unemployment, Snider covers discretionary and non-discretionary expenses and how both play into the personal financial plan.
Borrowing and Paying Off Debt
After stating that it’s okay for people to borrow on a home or education and nothing else, they offer suggestions on the most effective ways to get out of debt.
In closing, they suggest the following: get your credit cards paid off, establish your emergency fund, make sure that your bank account savings doesn’t exceed the FDIC limits of $250,000, continue to contribute to your investments and retirement, and manage your FICO score.
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02.22.09 – 1724
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