In today’s news update we will hear from AIG, Freddie Mac, Fannie Mae, Toyota and updates on the job market.
AIG Plans to Sell Remaining Transatlantic Stake
American International Group Inc. plans to sell its remaining 13.8% stake in casualty reinsurer Transatlantic Holdings Inc. held by its American Home Assurance Co. subsidiary.
The 9.19 million shares AIG wants to sell would be worth about $494 million based on Translantic’s closing share price on Thursday.
Transatlantic shares were down 3.7% in recent trade at $51.77, while AIG rose 4.3% to $27.87 amid a broad market gain.
Rep. Frank questions safety of Fannie Mae, Freddie Mac investments
An influential voice on Capitol Hill has unexpectedly called into question the safety of investing in Fannie Mae and Freddie Mac, raising the specter that investors who have lent money to the two firms or bought their mortgage-backed securities could one day suffer losses.
The comments by Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, come despite the assumption of many investors that investments in the two mortgage finance giants are risk-free. Until now, federal officials — who took over Fannie and Freddie two years ago to save them from collapse — have signaled to the market that lending the companies money is just about as safe as lending to the U.S. government itself.
Toyota incentives rouse would-be buyers
NEW YORK (CNNMoney.com) — Toyota’s new incentive plan appears to have piqued the interest of buyers looking to snag a good deal, reports showed Thursday, even as the automaker’s recall woes linger.
Edmunds.com and kbb.com, Web site of Kelly Blue Book, both reported significant increases in traffic among users expressing serious interest in Toyota vehicles since the automaker announced a new incentive plan on Tuesday.
Jobs report shows unemployment unchanged
NEW YORK (CNNMoney.com) — As severe winter storms crippled East Coast cities, the U.S. economy shed thousands of jobs in February, according to a government report released Friday. But the unemployment rate remained unchanged.
The Labor Department said the economy lost 36,000 jobs in the month, fewer than the 68,000 jobs economists were expecting, according to a survey conducted by Briefing.com.
In today’s news update we feature links to the job rate, Obama’s meeting with the Dalai Lama, and Toyota’s apologies for the recalls.
Jobless Rate Falls to 9.7%; U.S. Sheds 20,000 Job
The U.S. unemployment rate unexpectedly declined in January, but the economy continued to shed jobs and revisions painted a bleaker picture for 2009, casting doubt over the labor market’s strength.
The unemployment rate, calculated using a household survey, fell to 9.7% last month from an unrevised 10% in December, the Labor Department said Friday. Economists surveyed by Dow Jones Newswires had forecast the jobless rate would edge higher to 10.1%.
Toyota’s Chief Steps Forward to Apologize for Problems
NAGOYA, JAPAN — The president of Toyota apologized at a hastily arranged news conference Friday night for the quality problems that led to the recall of more than nine million cars worldwide.
Analysis: Obama-Dalai Lama meeting only option
WASHINGTON — Just a week after enraging China with an arms sale package for rival Taiwan, President Barack Obama risks more damage to this crucial relationship by agreeing to meet with the Dalai Lama in two weeks.
In today’s news update, we provide links regarding the U.S. job market, AIG Payouts and health care priorities.
Obama Returns to Job One — Jobs
President Obama hoped to put the Christmas Day terror scare behind him — at least temporarily — by saying Thursday that the “buck stops with me” and setting in motion a streamlining of intelligence efforts and a ramping up of passenger screening.
Today, he returns his focus to jobs after the latest unemployment report showed the jobless rate stuck in double digits.
N.Y. Fed Told AIG to Shield Payouts
The Federal Reserve Bank of New York told American International Group Inc. not to disclose key details of their agreements to make big payouts to banks in the insurer’s regulatory filings in late 2008, according to a set of email exchanges released Thursday.
House Democrats discuss health care priorities
Democratic leaders in the U.S. House of Representatives briefed party members on Thursday on healthcare talks with the Senate, with competing approaches on taxes and the shape of new insurance exchanges topping the list of priorities.
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.
