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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news