Boeing Co. (BA) just announced that it plans to slash about 10,000 jobs across its businesses, compared to a prior announcement of 4,500 job cuts from its commercial airplane unit. Job reductions will primarily occur in areas that support productivity and infrastructure, driven through a combination of attrition, retirements, cuts in some contracted labor, and layoffs.
The U.S. House is set to approve today President Obama’s proposed $816 billion economic stimulus package designed to…
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Added by Jack Lott on January 28, 2009 at 11:24am —
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President Obama heads to Capitol Hill intending to work out differences with Republicans over his proposed economic-stimulus plan. Obama is scheduled to hold separate meetings with both House and Senate Republicans, spending about an hour and a half with lawmakers. The meetings come a day ahead of an expected vote in the House on the stimulus plan, which Obama says will create or retain 3 million to 4 million jobs.
The January Conference Board consumer confidence index fell to 37.7…
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Added by Jack Lott on January 27, 2009 at 10:35am —
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The index of leading U.S. economic indicators unexpectedly increased in December as the money supply expanded, masking signs of a worsening recession. The Conference Board’s gauge rose 0.3 percent, the first gain in six months, after a 0.4 percent drop in November. The index points to the direction of the economy over the next three to six months.
The National Association of Realtors reported sales of existing homes rose 6.5% in December to a seasonally adjusted annualized rate of…
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Added by Jack Lott on January 26, 2009 at 10:00am —
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President Obama and top Democrats and Republicans from the House and Senate are meeting to discuss the status of the spending and tax cutting legislation that Obama has demanded to confront an ever weakening economy. The stimulus legislation, priced at about $825 billion and likely to grow, advanced in House committees this week. Republicans were unable to make inroads with their proposals.
Treasury Secretary-designate Timothy Geithner says President Obama believes China is…
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Added by Jack Lott on January 23, 2009 at 11:22am —
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President Barack Obama's stimulus plan is moving through the House this week, with a second committee likely to approve part of the multibillion dollar package. Members of the House Ways and Means Committee are meting to debate the tax and other provisions of the plan, including a $500-per-worker tax credit that the president has long touted.
The Labor Department reported that initial jobless benefit claims rose to a seasonally adjusted 589,000 in the week ending Jan. 17th, from an…
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Added by Jack Lott on January 22, 2009 at 11:00am —
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President Obama is hoping to win quick approval of his choice of Timothy Geithner to be Treasury secretary, but first Geithner has to explain how he missed paying $34,000 in payroll taxes earlier in the decade. Obama's team has signaled that it plans to greatly revise that program with the aim of getting more help to homeowners threatened with foreclosures.
The National Association of Home Builders said the home builders' index fell to a record low 8 in January from 9 in December. At…
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Added by Jack Lott on January 21, 2009 at 10:00am —
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Barack Obama took the presidential oath of office at noon today, becoming the first African-American president of the United States before a massive crowd in the nation's capital and millions of viewers around the world. Obama faces high expectations to deliver a rousing speech as he assumes the U.S. presidency. He is confronting the worst economy in at least a generation, marked by massive job losses and a financial crisis that brought Wall Street to its knees.
The Bank of Canada…
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Added by Jack Lott on January 20, 2009 at 10:00am —
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U.S. Stock Markets are closed today in observance of the Martin Luther King Jr. Holiday.
Barack Obama has prepared a "strong message" for banks after he takes over the U.S. presidency tomorrow. Obama's senior adviser David Axelrod said there would be changes in the use of the second half of the $700 billion Troubled Asset Relief Program (TARP) meant to clean out bad assets from the financial system, saying the use of the first half was ineffective and poorly accounted…
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Added by Jack Lott on January 19, 2009 at 10:30am —
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The Reuters/University of Michigan Surveys of Consumers said its preliminary index reading of confidence for January rose to 61.9 from December's 60.1. The index was above economists' expectations of 59.0. The early January reading was the highest since 70.3 in September.
The Labor Department reported that consumer prices dropped by 0.7 percent in December, slightly smaller than the 0.9 percent drop economists expected. For the year, consumer prices edged up by just 0.1 percent, the…
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Added by Jack Lott on January 16, 2009 at 11:29am —
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European Central Bank President Jean-Claude Trichet said the rate-setting Governing Council has no intention of getting stuck in a "liquidity trap." Economists define a liquidity trap as a situation in which short-term interest rates are close to zero but fail to boost the economy. The council voted unanimously to cut the ECB's key rate from 2.5% to 2%, marking a 225 basis point, or 2.25 percentage points, cut in the lending rate since October.
The Labor Department reported that…
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Added by Jack Lott on January 15, 2009 at 10:00am —
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The Commerce Department reported that retail sales dropped 2.7 percent last month, more than double the 1.2 percent decline that Wall Street expected. The weakness in consumer spending has been a prime contributing factor to the economy's current swoon and analysts say they don't see that turning around soon.
U.S. import and export prices both fell for the fifth consecutive month in December, as costs for oil and many non-petroleum products tumbled. Import prices dropped 4.2 percent…
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Added by Jack Lott on January 14, 2009 at 1:38pm —
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Federal Chairman Bernanke told a London audience that the stimulus package being modeled by President-elect Obama and Congress could provide a "significant boost" to the struggling U.S. economy. But he warned that such a recovery won't last unless other steps are taken to stabilize the shaky financial system. But he said there will be no lasting recovery without further government action and funds to strengthen the financial system. The timing and strength of economic recovery "are highly…
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Added by Jack Lott on January 13, 2009 at 10:00am —
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The White House said President Bush has asked Congress to release the remaining $350 billion in financial sector rescue funds after receiving a request to do so from President-elect Barack Obama. Congress has 15 days to reject the request. The request would give Obama not only the opportunity to get access to the money, but also to change its goals and conditions.
Facing a litany of economic and financial challenges, departing Wal-Mart (WMT) CEO Lee Scott urged retailers to work with…
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Added by Jack Lott on January 12, 2009 at 10:30am —
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U.S. employers cut payrolls by 524,000 in December, driving the unemployment rate to its highest level in almost 16 years, suggesting that the year-long recession continued to deepen. The Labor Department said the national unemployment rate rose to 7.2 percent in December, the highest level since January 1993.
The Commerce Department reported that wholesale inventories dropped 0.6 percent in November while sales were down a record 7.1 percent. Businesses are expected to keep trimming…
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Added by Jack Lott on January 9, 2009 at 10:37am —
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President-elect Obama called on Congress to move quickly on his economic aid package once he takes office, warning that a failure to do so would have devastating long-term consequences for the nation. Obama said, "I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years."
The Bank of England has cut the interest rate to its lowest-ever level cutting it to 1.5%. The…
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Added by Jack Lott on January 8, 2009 at 9:30am —
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According to the ADP employment index, U.S. private-sector firms dropped 693,000 jobs in December, far worse than expected. Employment in the services sector fell by 473,000, while employment in the goods-producing sectors fell by 220,000.
Congressional estimators are projecting an unparalleled budget deficit of $1.2 trillion for the 2009 budget year. A top congressional aide briefed on the estimate says the Congressional Budget Office also sees a $703 billion deficit for 2010. The…
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Added by Jack Lott on January 7, 2009 at 10:30am —
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Chain-store sales for the week fell 0.8% from the year-earlier period. On a week-over-week basis, sales rose 1.4%. The International Council of Shopping Centers said, "Bargain shoppers were out in force between Christmas and New Year's” who took advantage of retailers' need to clear out seasonal merchandise. Still, that doesn't help salvage what has turned out to be a weak month.
The ISM non-manufacturing index rose to 40.6% in December from a record low of 37.3% in November.…
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Added by Jack Lott on January 6, 2009 at 10:37am —
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President-elect Obama is heading to Capitol Hill to push for quick action on a broad economic stimulus package that congressional leaders are saying won't be ready until mid-February at the earliest -- almost a month later than he wanted. Obama met with House and Senate Democratic leaders and with a bipartisan group of key lawmakers. He hopes to have Congress enact the recovery plan in time for him to sign his when he takes office Jan. 20th.
The Federal Reserve Bank of New York…
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Added by Jack Lott on January 5, 2009 at 10:00am —
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The U.S. dollar started 2009 a little higher, rising after a report showed manufacturing in Europe slowed. The euro fell 0.8% to $1.3897. The dollar index which tracks the currency against a basket of several counterparts, gained 0.4% to 81.64. The purchasing managers' index showed manufacturing activity in the euro zone fell for a seventh month, to 33.9 in December from 35.6 in November.
The ISM index, a key manufacturing gauge, stood at 32.4% in December, showing the sector's fifth…
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Added by Jack Lott on January 2, 2009 at 10:30am —
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The Labor Department said initial filings for state jobless benefits fell to 492,000 for the week ended Dec. 27, a decline of 94,000 from the 26-week high of 586,000 claims a week earlier. Economists were expecting jobless claims to slip to 575,000. Over the past four weeks, continuing claims averaged 4.42 million, an increase of 103,750 from the previous week's revised average.
The Mortgage Bankers Association reported the volume of residential mortgage applications filed last week…
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Added by Jack Lott on December 31, 2008 at 10:49am —
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