- U.S. Economy in ‘Slow Recovery,’ BofA CEO Moynihan Says
- GM Raises IPO Target Price
- Geithner Acknowledges Damage To U.S. Credibility Internationally
- Monday Market Movement – Meaty Beaty Big and Bouncy!
- Oil Attacks In Nigeria Show New Militancy
- Oil Pushes Up Wholesale Prices
- Arnold Schwarzenegger Demands Action at Final Climate Summit
“Everything we see points to a continued recovery, albeit a slow recovery,” Moynihan said during a conference held by the lender in New York. “We continue to see delinquencies improve in all our products across the board.” Commercial lending is starting to turn around and consumers are spending more on leisure, he said. Bank of America, which gets more than three-quarters of its revenue from the U.S., is a “mirror” to the domestic economy, Moynihan said this month. Employers added 151,000 workers to payrolls in October, the first increase since May, according to the Labor Department. The average number of Americans filing claims for jobless benefits dropped to a two- year low, the agency said.
The automaker also announced an increase in the number of converted preferred shares it plans to sell, boosting the amount it expects to raise to $4 billion from $3 billion. As a result, the total size of the offering is now expected to be close to $16 billion. GM had previously announced plans to sell about $13 billion in common and preferred shares as part of its IPO, one of the largest in U.S. history.
Speaking to a gathering of corporate executives in Washington, Geithner said the economic crisis during the last two years “caused a huge amount of damage for [the U.S.’] crebility” internationally, and that “it’s going to take us a while to dig out” of it. “The most important thing the U.S. can do for the world is to make sure we’re growing out of this this mess–we’re repairing the damage caused by this crisis–as quickly as we can.” How to do it? Geithner wants Congress to act before the end of the year to extend temporarily the Bush-era tax cuts for the middle class. “It would not be a responsible act of government” to do otherwise, he says. The White House is still calling for the tax cuts to expire on the wealthiest 2% of Americans.
On this week’s edition of The Business, instead of discussing the economic crisis – we examine the crisis of economics. Aditya Chakrabortty’s joined in the studio by the Guardian’s economics editor Larry Elliott, as well as Roger Bootle, the managing director of Capital Economics, and political economist and John Maynard Keynes biographer Robert Skidelsky. Also in the podcast, we hear from Nobel prize-winning economist, Elinor Ostrom, Freakonomics author Steven Levitt, and UN advisor and developmental economist Daniel Gay. With this stellar line-up, we analyse the past, present and future of a humbled profession and ask, why did so few people see this downturn coming? What lessons can we draw from Keynesianism and the economic theories of the past, now that the Washington consensus and the unshakeable belief in market fundamentalism has been shattered?
The Fed is in all-out attack mode this week with $35Bn scheduled for release in the next 5 days. If that doesn’t goose the markets, then I think we are screwed because people, $35Bn is A LOT of money for a week. It’s $1.82Tn a year at that pace or 12% of our entire GDP being created by the Fed to give you the illusion that all is well with the markets. So say, thank you Chairman Bernanke, for treating us like children who would rather be lied to than facing reality and making necessary choices.
Gunmen in five skiffs with powerful motors attacked Exxon Mobil’s Oso platform late Sunday, according to a security executive who works in the area and had seen an internal report on the incident. They boarded the platform and “conducted a room-to-room search. Crew and staff were beaten and robbed, the power supply was cut and communications were damaged,” according to the security executive. …Exxon declined to say how the attack would affect output at one of Nigeria’s biggest oil fields. It suspended Oso’s production as a “precautionary measure,” the company said in a statement. The field can produce the equivalent of 100,000 barrels of oil a day—as much as 5% of the country’s daily output.
The index of producer prices, which measures how much manufacturers and wholesalers pay for goods and materials, rose a seasonally adjusted 0.4% for finished goods last month from September on the back of higher energy prices, the Labor Department said Tuesday. Stripping out more-volatile food and energy prices, however, wholesale prices fell by 0.6% in October, the sharpest drop in more than four years. There were big price declines for light motor trucks and passenger cars. Measures of inflation have continued to slow in recent months, especially those net of food and energy items that are closely watched by the Federal Reserve. Increasingly slow underlying inflation readings — the core personal consumption expenditure rose just 1.2% in September — are a key reason behind the Fed’s move to try and stimulate a weak economy via large-scale buying of Treasury securities.
At the opening of his third and last climate summit, Schwarzenegger said leaders could learn from California’s example as an environmental pioneer. “I know that together we can usher in a new era and build a cleaner and brighter, more prosperous future, so I say: let’s do it,” Schwarzengger told the summit at the University of California at Davis. The two-day summit is one of his final opportunities to shore up his reputation as California’s green governor. His successor, Democrat Jerry Brown, takes over in January. Schwarzenegger plans to drive home the message tomorrow with the launch of his R20 partnership of regional and business leaders, which aims to function like a financial matchmaking service, finding investors from the World Bank and private corporations for renewable energy projects in developing countries.
Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the “3 Es.”