Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Solid US jobless claims

While you were sleeping: Solid US jobless claims

Jan 10 (BusinessDesk) – A better-than-expected weekly US jobless claims report, following the solid private employers’ data released earlier this week, kept investors on edge for tomorrow’s government employment report.

The clear signs of an improving US jobs market are good news for the overall picture of recovery in the world’s largest economy, yet it may also prompt the Federal Reserve to accelerate the speed of tapering its bond-buying program.

Initial claims for state unemployment benefits fell more than expected, declining 15,000 to a seasonally adjusted 330,000 in the week ended January 4, according to Labor Department data.

"The labour market seems to have picked up some steam towards the end of the year," Guy Berger, an economist at RBS in Stamford, Connecticut, told Reuters.

The Labor Department’s non-farm payrolls report, due on Friday, is expected to show jobs increased by 196,000 in December, following an increase of 203,000 in November.

Meanwhile, Janet Yellen, who is set to take the mantle of Fed chairman when Ben Bernanke’s term expires on January 31, told Time magazine the US economy will gather steam this year.

“I think we’ll see stronger growth this year,” Yellen said. “Most of my colleagues on the Fed’s policy making committee and I are hopeful that the first digit [of GDP] could be 3 rather than 2.”

“The recovery has been frustratingly slow, but we’re making progress in getting people back to work,” she said.

Retailers provided a mixed picture today. Bed Bath & Beyond and Family Dollar slumped, down 13.1 percent and 5.2 percent respectively, after reporting earnings that failed to impress investors.

However, shares of Macy’s jumped, last up 7.7 percent, as the company provided an optimistic earnings outlook that won approval.

“They are running a good business and hats off,” Richard Jaffe, an analyst at Stifel Financial, told Bloomberg News. “The fact that they can take US$100 million of costs out of the equation is a nice thing. You can increase earnings by reducing costs. I’ll take it.”

In afternoon trading in New York today, the Dow Jones Industrial Average fell 0.12 percent, the Standard & Poor’s 500 Index slid 0.13 percent, while the Nasdaq Composite Index shed 0.25 percent. Declines in shares of Verizon Communications, last down 1.9 percent, and those of AT&T, down 1.8 percent, propelled losses in the Dow.

In Europe, the Stoxx 600 Index finished the day with a 0.4 percent decline from the previous close. The UK’s FTSE 100 dropped 0.5 percent, while Germany’s DAX and France’s CAC 40 both sank 0.8 percent.

As anticipated, the European Central Bank and the Bank of England kept their interest rates steady at record lows.

“The risks surrounding the economic outlook for the euro area continue to be on the downside. Developments in global money and financial market conditions and related uncertainties may have the potential to negatively affect economic conditions,” ECB President Mario Draghi warned today.

“Other downside risks include higher commodity prices, weaker than expected domestic demand and export growth, and slow or insufficient implementation of structural reforms in euro area countries.”

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news