Chicago Fed President Charles Evans said hiring data released earlier in the day showed the economy was improving, but he wasn't fully convinced it was time to reduce the pace of bond buying. "I'll be open-minded," Evans said in an interview with Reuters Insider when asked about the December meeting. "Everything else (being) equal, I would like to see a couple of months of good numbers, but this was improvement." Fed policymakers meet on December 17-18 and the future of their $85-billion-a-month bond-buying program looms large on the agenda, after officials said at their last meeting they would look to scaling back the stimulus in the next few months.
Fri, 06 Dec 2013 16:15:02 -0500
Fri, 06 Dec 2013 16:09:31 -0500
NEW YORK (Reuters) - U.S. stocks jumped on Friday, with the Dow and the S&P 500 snapping a five-day losing streak after a strong jobs report gave traders confidence that the economy was improving. Based on the latest available data, the Dow Jones industrial average shot up 198.69 points, or 1.26 percent, to close unofficially at 16,020.20. The Standard & Poor's 500 Index rose 20.06 points, or 1.12 percent, to finish unofficially at 1,805.09. The Nasdaq Composite Index jumped 29.36 points, or 0.73 percent, to end unofficially at 4,062.52. ...
Fri, 06 Dec 2013 15:34:31 -0500
By Alina Selyukh WASHINGTON (Reuters) - The U.S. Federal Communications Commission, as long predicted, now plans to hold the so-called incentive auction of broadcast airwaves in mid-2015, a year later than originally intended, the agency chairman said on Friday. The FCC is now drafting rules for the auction that would reshuffle the ownership of valuable frequencies among TV stations, as well as wireless carriers, which are clamoring for faster speeds and better services for their devices. "I believe we can conduct a successful auction in the middle of 2015," FCC Chairman Tom Wheeler said in a blog post on Friday. (fcc.us/19m1fvB) As part of this reverse auction, the FCC would pay broadcasters to voluntarily give up control of low-frequency airwaves so that they can be sold to telecommunications companies such as Verizon Communications Inc, AT&T Inc, Sprint Corp and T-Mobile US Inc.. The auction is widely regarded as the most complex undertaking by the FCC to date, balancing numerous economic, engineering and political considerations, including a vocal push from smaller carriers for limits to how much spectrum their larger competitors will be allowed to acquire.
Fri, 06 Dec 2013 13:49:14 -0500
The report, which showed broad gains in employment and a rise in hourly earnings, suggested strength in the economy heading into year-end. "It will add further confidence to the Fed of a reduced need for monetary stimulus in the U.S. economy. The unemployment rate dropped three tenths of a percentage point to its lowest level since November 2008 as some federal employees who were counted as jobless in October returned to work after a 16-day partial shutdown of the government. U.S. benchmark Treasury yields hit a three-month high as traders raised bets the Fed could reduce its bond purchases as early as its next meeting on December 17-18, though they later eased back.
Fri, 06 Dec 2013 13:03:22 -0500
By David Ljunggren OTTAWA (Reuters) - Canada added 21,600 jobs in November, the third consecutive month of modest gains, and the unemployment rate stayed at a nearly five-year low of 6.9 percent, Statistics Canada said on Friday. The increase, greater than the 12,000 new jobs predicted by market analysts, is unlikely to put pressure on the Bank of Canada to raise rates. The central bank - concerned about the amount of slack in the economy - left its overnight interest rate at a near record low on Wednesday and expressed concern that inflation could be weaker than it predicted. "I think the Bank of Canada is focusing more on the inflation print that the employment print, though this will be welcome news for them.
Fri, 06 Dec 2013 12:00:58 -0500
By Richard Balmforth and Pavel Polityuk KIEV (Reuters) - Ukrainian President Viktor Yanukovich met Russia's Vladimir Putin on Friday to lay the grounds for a new "strategic partnership" to shore up Ukraine's creaking economy in defiance of protesters back home enraged by his U-turn away from Europe. The leaders met in the Black Sea resort of Sochi in Russia, after Yanukovich flew in for an unannounced stop on his way back from China to map out a new agreement on trade and economic cooperation, a statement on Yanukovich's official website said. Prime Minister Mykola Azarov told journalists Yanukovich would visit Moscow at some point in the future and sign a large number of documents.
Fri, 06 Dec 2013 11:20:21 -0500
South African stocks rose for the third straight day on Friday, largely unfazed by the death of Nelson Mandela, the nation's first democratically elected president. Mandela, a symbol of racial reconciliation and political compromise, died at 95 late on Thursday from a recurring lung illness, worrying some that simmering social tensions may threaten Africa's largest economy. But his death has had little impact so far on the Johannesburg stock market, which stopped trading for five minutes in remembrance on Friday. "The market just brushed it aside," said David Shapiro, deputy chairman of Sasfin Securities.
Fri, 06 Dec 2013 10:58:16 -0500
Fri, 06 Dec 2013 10:50:47 -0500
Tanzania is considering operating its bank payments system on Saturdays, allowing customers to transfer money around, with traders remaining confident that the move would not affect banks' trading positions. There had been initial fears the move could have an impact on trading positions because the region's economic powerhouse, Kenya, does not operate its payments system on Saturdays. "This will be only to fund accounts to cover payments," said Hakim Sheikh of the traders association, ACI Tanzania, adding it will not impact trading positions.
Fri, 06 Dec 2013 10:40:21 -0500
WASHINGTON (Reuters) - The Obama administration is open to finding a way to offset the budgetary costs of extending emergency jobless benefits, a top official said on Friday. White House economic adviser Jason Furman said economists generally believe programs like emergency jobless benefits need not be funded by making cuts to other programs or through revenue hikes. "But certainly if what Congress wants to do is pay for it, that's something that we could work with them on," Furman told Reuters in an interview. Emergency jobless benefits for 1. ...
Fri, 06 Dec 2013 09:56:25 -0500
U.S. consumer sentiment surged in December as Americans' outlook on the economy and job prospects improved, a survey released on Friday showed. The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment jumped to 82.5 for December, up from a final reading of 75.1 in November. This was the highest reading for the index since July, and topped analyst forecasts for a reading of 76. "All of the improvement was among households with incomes below $75,000, with upper income households showing no gain from last month's reading," survey director Richard Curtin wrote in a statement.
Fri, 06 Dec 2013 09:25:45 -0500
The price of oil moved higher above $97 a barrel Friday, buoyed by stronger economic growth and falling unemployment in the world's largest economy.
Fri, 06 Dec 2013 08:47:42 -0500
The chances of Britain leaving the European Union are "very remote" and making that point clear would help boost investment, Business Secretary Vince Cable said on Friday. Cable told an economic conference in Frankfurt that, despite growing debate in Britain leaving the EU, the likelihood of a such a move was low. "There is a risk, but it is a small risk." Economic ties between Britain and the EU were stronger than many realised, he said, noting that Britain was completely integrated into European supply chains. Eliminating the concerns of businesses about Britain's commitment to Europe was important to boosting long-term investment, Cable said.
Fri, 06 Dec 2013 08:47:03 -0500
Fri, 06 Dec 2013 08:35:40 -0500
U.S. consumer spending rose in October, but still benign inflation pressures offered a cautionary note for the Federal Reserve as it weighs the future of its bond-buying program. The Commerce Department said on Friday consumer spending increased 0.3 percent after rising 0.2 percent in September. Economists polled by Reuters had expected consumer spending, which accounts for about 70 percent of U.S. economic activity, to gain 0.2 percent in October. When adjusted for inflation, consumer spending increased 0.3 percent in October, the largest advance since March, after gaining 0.1 percent in September.
Fri, 06 Dec 2013 08:08:15 -0500
The Ugandan shilling held steady on Friday and traders said it was likely to firm up next week due to good inflows and waning demand for dollars ahead of the holidays. At 1014 GMT, commercial banks quoted the currency of east Africa's third-largest economy at 2,522/2,527, unchanged from Thursday's close. "Market outlook for the coming weeks point to a bullish shilling with demand for the dollar expected to reduce significantly as most players scale down their operations," said Stephen Kaboyo of Alpha Capital Partners.
Fri, 06 Dec 2013 07:13:17 -0500
BERLIN (AP) — German industrial orders dropped unexpectedly sharply in October, according to data released Friday, but the central bank raised its growth forecast for the country's economy on healthy domestic demand fueled by low unemployment.
Fri, 06 Dec 2013 05:30:34 -0500
BERLIN (AP) — Germany's central bank has lifted its growth forecast for the country's economy this year and next, pointing to healthy domestic demand as unemployment remains low.
Fri, 06 Dec 2013 05:30:20 -0500
British people expect inflation to pick up but are still largely heeding the message from Bank of England Governor Mark Carney that interest rates will not go up any time soon even as the economy recovers, a survey showed on Friday. A quarterly poll commissioned by the Bank found the median expectation for inflation over the next 12 months rose to 3.6 percent from 3.2 percent in August. Fewer people expected the BoE's record-low interest rates to remain unchanged over the coming year than they did in August, at 43 percent compared with 49 percent. Carney took over the Bank in July and a month later the Bank said it would not consider raising interest rates until unemployment falls to 7 percent, an attempt to give households and businesses the confidence to spend and spur the recovery.
Fri, 06 Dec 2013 04:57:28 -0500
BANGKOK (AP) — World stock markets advanced Friday but gains were held in check as investors awaited a U.S. jobs report that could solidify expectations about when the Federal Reserve will start reducing its expansive stimulus.
Fri, 06 Dec 2013 04:38:30 -0500
By Shadia Nasralla CAIRO (Reuters) - Egypt's central bank unexpectedly cut its key interest rates by 50 basis points each at a monetary policy committee (MPC) meeting on Thursday, saying it was more concerned about boosting growth than taming inflation. The economy has yet to recover from the popular uprising that ousted Hosni Mubarak in 2011. Urban consumer price inflation, meanwhile, hit 10.44 percent in October - its highest since July 2011 and up from 10.15 percent in September. "Given that the downside risks to the GDP outlook outweigh the upside risks to the inflation outlook, the MPC decided to cut the key CBE rates," the Central Bank of Egypt said in a statement.
Fri, 06 Dec 2013 03:32:33 -0500
KUALA LUMPUR, Malaysia (AP) — The price of oil was steady Friday after being buoyed by stronger economic growth in the world's largest economy.
Fri, 06 Dec 2013 02:53:32 -0500
U.S. Vice President Joe Biden said on Friday that North Korea would never achieve prosperity as long as it continued to pursue nuclear arms, but added Washington remained open to dialogue if Pyongyang can show its willingness to honor its commitments. North Korea has forged ahead with its nuclear development after declaring the so-called six-party talks dead in 2008, overturning its commitments made under a 2005 disarmament deal aimed at rewarding it with economic incentives. "The United States and the world have to make it absolutely clear to Kim Jong Un that the international community will not accept or tolerate nuclear arms in North Korea," Biden said in a speech in Seoul, referring to the reclusive state's leader. "The simple fact is this - North Korea can never achieve security and prosperity so long as it pursues nuclear weapons, period," Biden said.
Fri, 06 Dec 2013 01:32:20 -0500
By Joe Bavier ABIDJAN (Reuters) - Africa can expect increased competition in its banking sector as new players are attracted by the continent's economic potential, Ecobank's chief executive said, but governments must do their part to lower perceived risk. Interest has grown in Africa, home to some of the world's fastest growing economies, as investors seek new frontier market opportunities. Thierry Tanoh, CEO of the pan-African lender, said he expected banks in South Africa and North Africa to become increasingly aggressive in the battle for market share. However, in order to fully harness the new momentum, he said Africa must shake off a bad, and largely undeserved, reputation as a minefield of risk.
Fri, 06 Dec 2013 01:15:02 -0500
Foreign direct investment into emerging markets should decline next year because of persistent concerns about the global economy, the World Bank's political risk insurance arm said on Thursday. For the first time in five years, companies listed macroeconomic instability as their biggest constraint for investing in emerging markets over the next three years, according to the report from the World Bank's Multilateral Investment Guarantee Agency. "The persistent global economic uncertainty appears to have tainted the overall mood, with economic pessimism unpderinning the expected stagnant FDI levels," MIGA said in the report. In its latest global economic snapshot in October, the International Monetary Fund cut its world growth forecasts for the sixth straight time in two years, warning about a sluggish expansion in the developing world.