Gulf Arab leaders approved a monetary union agreement that aims to create a central bank and single currency for the region that will help boost trade and strengthen monetary policy. The agreement must now be approved by the national governments of all six members of the Gulf Cooperation Council.
Russia devalued the ruble again and Kremlin leaders urged government unity to deal with the biggest economic challenge in a decade. Russia's central bank began a gradual depreciation of the…
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Added by Jack Lott on December 30, 2008 at 10:36am —
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As the anniversary approaches of the Jan. 1, 1999, arrival of the Euro, economists say the new currency is finally fulfilling its promise as a way to lower borrowing costs, ease trade and tourism, boost growth and strengthen the European community. The chief complaints from governments during the Euro's first 10 years have arisen from the bank's one-size-fits-all interest rate policy -- which can't give rate cuts to individual countries if their economy dips while others…
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Added by Jack Lott on December 29, 2008 at 12:02pm —
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Shoppers hit the stores early today to return unwanted gifts and take advantage of drastic price cuts offered by retailers desperate to get rid of old merchandise and boost their less-than-cheery holiday sales. Stores were hoping the discounts would entice shoppers to redeem gift cards and use cash from returning unwanted gifts to buy something new.
According to preliminary data from SpendingPulse, a weak economy and strong winter storms brought total retail sales down between 5.5…
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Added by Jack Lott on December 26, 2008 at 9:30am —
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U.S. Stock markets will close early today, Christmas Eve, and will be closed all day tomorrow in observance of Christmas Day.
The Labor Department reported that the U.S. labor market continued to worsen in recent weeks, with the unemployment lines stretching to the longest in 26 years. First-time applications for state unemployment benefits jumped by 30,000 to a seasonally adjusted 586,000 in the week ending Dec. 20, the government said, based on reports of actual filings at state…
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Added by Jack Lott on December 24, 2008 at 9:27am —
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U.S. Stock markets will close early (1 pm Eastern Time) tomorrow (on Christmas Eve) and will be closed all day Thursday in observance of Christmas Day.
The Commerce Department, in its final revision, said the decline in gross domestic product in the third quarter versus the previous three months was the steepest since the third quarter of 2001, in the aftermath of the September 11th attacks on the United States. The economy shrank at a 0.5 percent annual pace in the third quarter as…
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Added by Jack Lott on December 23, 2008 at 10:35am —
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The deputy head of the Bank of England said they saw the financial crisis coming, but didn't expect it to be so severe. John Gieve said that if the bank had tried to use interest rates to keep the price of assets -- like houses -- from spiraling upward over the past couple of years, it would have held down the level of activity in other parts of the economy, like manufacturing, that needed to be allowed to enjoy prosperity.
According to the Lundberg survey, the average national price…
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Added by Jack Lott on December 22, 2008 at 9:52am —
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The White House is prepared to extend $13.4 billion in loans to troubled Detroit auto makers, with an additional $4 billion likely available in February. General Motors (GM) and Chrysler will be able to survive into the New Year under the plan. The Bush administration is convinced the U.S. economy could not withstand the failure of Detroit's Big Three. Treasury Secretary Paulsen said President Bush wants to avoid bankruptcy -- "if it can be avoided."
In an effort to boost the job…
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Added by Jack Lott on December 19, 2008 at 9:15am —
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The Labor Department says that new applications for jobless benefits fell to a seasonally adjusted 554,000 from an upwardly revised figure of 575,000 the previous week. That's slightly below economists' expectations of 558,000 claims.
The Conference Board said more economic weakness is in store for the first few months of 2009. The index of leading economic indicators fell 0.4% in November, with negative contributions from six of the 10 indicators, and the largest negative…
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Added by Jack Lott on December 18, 2008 at 10:29am —
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The Commerce Department says the current account trade deficit fell by 3.7 percent to $174.1 billion in the July-September quarter. That was a better showing than the $178.8 billion deficit economists expected. The deficit represents the amount of money the country is borrowing from foreigners.
Consumers trying to buy a house or finance a car loan could be the big winners as a result of the Federal Reserve's decision to slash its target interest rate to nearly zero and take other…
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Added by Jack Lott on December 17, 2008 at 9:30am —
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The Federal Open Market Committee lowered its target for overnight interest rates by three quarters of one percent to a record low 0.25%. At the same time, the central bank released a statement that signaled an aggressive posture. It said it would keep rates low "for some time" and continue to expand its balance sheet to stabilize the economy. The vote to lower the Fed funds rate was unanimous.
European Central Bank President Jean- Claude Trichet said there’s a limit to how far the…
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Added by Jack Lott on December 16, 2008 at 1:30pm —
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The Federal Reserve is widely expected to cut a key interest rate -- perhaps to an all-time low-- to prevent the sinking economy from falling deeper into the doldrums. Fed Chairman Bernanke and his colleagues open a two-day meeting today to take a fresh pulse on the ailing economy, which has been mired in a recession since last December, and to decide their next move on interest rates.
Industrial production slipped by a slightly less-than-expected 0.6 percent in November and was a…
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Added by Jack Lott on December 15, 2008 at 10:30am —
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The Labor Department reported the Producer Price Index, which tracks costs of goods before they reach consumers, fell 2.2 percent last month as prices for gasoline and other energy prices fell.
The Commerce Department says retail sales dropped by 1.8 percent last month. The decline, which was slightly below the 1.9 percent dip that had been expected, was the fifth straight monthly drop, a stretch of weakness never before seen on the government's retail sales…
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Added by Jack Lott on December 12, 2008 at 9:18am —
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Wholesale inventories fell by 1.1 percent in October following a downwardly revised 0.4 percent decrease in September. The decrease came as a surprise to economists, who had expected an increase of about 0.2 percent.
Congress will vote as early as today on a $15 billion plan Democrats reached with the Bush administration to keep U.S. automakers afloat while forcing them to restructure. The tentative agreement calls for appointment of a so-called “car czar” who could force General…
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Added by Jack Lott on December 10, 2008 at 10:40am —
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The National Association of Realtors reported that further weakening may be in store for the U.S. housing market. An index of sales contracts on previously owned U.S. homes fell 0.7% in October from the prior month. The index, which is considered a leading indicator of existing home sales, was down 1% from the prior year.
Canada's central bank cut its benchmark interest rate more than expected, reducing the overnight rate by 75 basis points to 1.50% because of the "weakening outlook…
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Added by Jack Lott on December 9, 2008 at 10:00am —
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President-elect Barack Obama wants to make something very clear: The economy is not going to immediately recover when he takes his oath of office, but he has a plan to get the country moving. Obama introduced a recovery plan "equal to the task" that would be the largest public works spending program since the interstate highway system was build a half-century ago.
Congressional Democrats and the White House reportedly agree on the broad outlines of a deal to rescue the failing U.S.…
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Added by Jack Lott on December 8, 2008 at 10:10am —
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U.S. non-farm payrolls fell by an astonishing 533,000 in November, the worst job loss in 34 years. The unemployment rate rose from 6.5% in October to 6.7% in November, the highest jobless rate since October 1993. Average hourly earnings rose by 7 cents, or 0.4%, to $18.30. Over the past three months, payrolls have fallen by an average of 419,000 per month.
White House spokeswoman Dana Perino said President Bush is "very concerned" about the latest unemployment situation and promises…
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Added by Jack Lott on December 5, 2008 at 10:10am —
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The Bank of England's Monetary Policy Committee voted to drop its key lending rate by a full percentage point to 2% -- the lowest level for the benchmark since 1939. The European Central Bank's Governing Council slashed its key lending rate by 75 basis points to 2.5%. The cut is the largest in the ECB's 10-year history.
European Central Bank President Jean- Claude Trichet said the Euro region’s economy will shrink next year for the first time since 2003 after the bank delivered the…
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Added by Jack Lott on December 4, 2008 at 11:05am —
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The Institute for Supply Management reported that non-manufacturing sectors of the U.S. economy contracted at a record pace during November. The ISM non-manufacturing index fell to 37.3% from 44.4% in October. The decline was broad-based with 17 out of 18 industries reported contraction The decline was larger than expected. Economists were looking the index to fall to 42.7%.
The Labor Department said the productivity of U.S. workers was slightly stronger in the third quarter than…
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Added by Jack Lott on December 3, 2008 at 11:27am —
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President-elect Barack Obama is promising the country's governors that they will play a role in designing an economic recovery plan. Obama told the governors meeting in Philadelphia that "if we're listening to our governors, we'll not only be doing what's right for our states, we'll be doing what's right for our country.”
The National Bureau of Economic Research said the U.S. economy, now officially in recession, may be in the midst of the longest slump in the post- World War II era…
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Added by Jack Lott on December 2, 2008 at 10:38am —
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The Institute for Supply Management reported that manufacturing activity in the United States declined at the fastest pace in 27 years in November. The ISM index fell to 36.2% in November from 38.9% in October. It's the lowest since late 1981. Economists were expecting the ISM index to fall to 37%.
Construction spending fell by a larger-than-expected amount in October, an indication the problems facing developers in the form of a sinking economy and severe credit crisis are deepening…
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Added by Jack Lott on December 1, 2008 at 11:37am —
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