Jumaat, 2 November 2012

NST Online Business Times : latest

0 ulasan
Klik GAMBAR Dibawah Untuk Lebih Info
Sumber Asal Berita :-

NST Online Business Times : latest


Good US jobs data fail to lift stocks

Posted: 02 Nov 2012 05:35 PM PDT

NEW YORK: An encouraging October jobs report gave shares an early bump Friday but the gains were all quickly lost and the main indices ended in the red, as caution grew ahead of next Tuesday's election.

Although the jobless rate ticked up to 7.9 per cent, the fact that the economy could pump out 171,000 net new jobs last month was seen as good for President Barack Obama and a negative for challenger Mitt Romney, the Wall Street favourite.

The markets also were pulled down by Apple's 3.3 per cent fall, amid a lukewarm reception for its new iPad mini.

The Dow Jones Industrial Average finished down 139.46 points (1.05 per cent) at 13,093.16.

The broad-based S&P 500 fell 13.39 (0.94 per cent) to 1,414.20, and the Nasdaq Composite lost 37.93 (1.26 per cent) at 2,982.13.

The jobs data was a good sign for the economy, analysts said.

"The October payroll survey showed a brighter picture of the labor market, both in faster headline job creation and in upward revisions to previous months," said Nigel Gault of IHS Global Insight.

In stocks, insurer AIG fell 7.2 per cent despite its third-quarter earnings handily beating estimates as the company swung into the black, earning $1.9 billion.

But worries about the costs to the economy from Hurricane Sandy, which could lead to insured losses industry-wide of $20 billion according to estimates, kept a cloud over the shares.

"We are seeing continued momentum, and we're building for the future by creating a more streamlined, efficient, and nimble company," AIG chief executive Robert Benmosche said in a statement.

Other insurers took a hit. Hartford Financial fell 3.0 per cent, and Travelers 0.9 per cent.

Power companies hit by extended outages in the storm sank: Exelon fell 2.4 per cent, Con Ed lost 0.9 per cent and New Jersey's PSEG was down 0.2 per cent.

Mining companies weakened amid a sharp fall in gold prices: Freeport McMoRan lost 3.1 per cent and Newmont Mining lost 8.4 per cent.

Chevron, the oil giant, dropped 2.8 per cent after reporting a fall in quarterly profit due to lower crude output.

Among gainers, Starbucks added 9.1 per cent after turning in strong earnings and boosting its dividend. -- AFP

Kredit: www.nst.com.my

NST Online Top Stories - Google News

0 ulasan
Klik GAMBAR Dibawah Untuk Lebih Info
Sumber Asal Berita :-

NST Online Top Stories - Google News


Latest Jobs Report Shows Persistent Economic Growth - New York Times

Posted: 02 Nov 2012 09:16 AM PDT

The nation's employers added 171,000 positions in October, the Labor Department reported on Friday, and more jobs than initially estimated in both August and September. Hiring was broad-based, with just about every industry except state government adding jobs. The unemployment rate ticked up slightly to 7.9 percent in October from 7.8 percent in September, because more workers joined the labor force and so officially became counted as unemployed.

None of this makes for a game-changer in the presidential election, analysts said. But it appeared to provide some comfort for President Obama, whose campaign could have been sideswiped by bad news from the notoriously volatile monthly jobs report.

In fact, the latest numbers show that the economy has finally added a net number of new jobs under his presidency. The report also allayed widespread suspicion that September's plunge in the unemployment rate — to below 8 percent for the first time since the month he took office — might have been a one-month statistical fluke.

"Generally, the report shows that things are better than we'd expected and certainly better than we'd thought a few months ago," said Paul Dales, senior United States economist for Capital Economics. "But we're still not making enough progress to bring that unemployment rate down significantly and rapidly."

Mitt Romney, the Republican presidential nominee, said in a statement that the jobs report was evidence of the need to change the nation's economic policies.

"Today's increase in the unemployment rate is a sad reminder that the economy is at a virtual standstill," he said. He also noted that October's unemployment rate of 7.9 percent was higher than the 7.8 percent when Mr. Obama took office in January 2009.

Economists were hopeful that once the election was over and Congress addressed the major fiscal tightening scheduled for the end of this year, job growth could speed up further.

"If we can do this kind of job growth with all the uncertainty out there, imagine if we were to clear up those tax issues and hold back the majority of tax increases that are pending at the end of the year," said John Ryding, chief economist at RDQ Economics. "We could do much better in 2013, maybe as well as we appeared to be doing earlier this year."

In October, the biggest job gains were in professional and business services, health care and retail trade, the Labor Department said. Government payrolls dipped slightly. State and local governments have been shedding jobs most months over the last three years.

One of the lowlights of the report was in hourly wages, which remained flat in October after showing barely any growth in the previous several months.

"Perhaps the decline in real wages is a factor here in being able to employ more people," Mr. Ryding said. "It's something to keep in mind when we think about creating jobs and whether we're maybe creating the wrong sort of jobs."

A report from the National Employment Law Project, a liberal research and advocacy organization that focuses on labor issues, found that while the majority of jobs lost in the downturn were middle-wage jobs, the majority of the jobs created since then have been lower-wage ones.

There have now been 25 straight months of jobs gains in the United States, but the increases have been barely large enough to absorb the increase in the population. A queue of about 12 million unemployed people remain waiting for work, about two out of five of whom have been out of a job for more than six months.

That is in addition to more than eight million people who are working part-time but really want full-time jobs.

"I'm not just competing against all the other people who are out of work," said Griff Coxey, 57, of Cascade, Wis., who was laid off in May from his controller job at a small business. "I'm also competing against all those people who are actually working but are underemployed."

Like two million other idle workers, Mr. Coxey is scheduled to lose his unemployment benefits the last week of the year, when the federal extensions abruptly expire. He said he still has some savings to fall back on, but many workers do not.

Labor advocates and many economists have been urging Congress to renew the benefits as part of their discussions of the "fiscal cliff" during their postelection session. So far, though, the issue has received little attention, and analysts worry that ending extended benefits could disrupt what modest forward momentum the economy currently has.

"Federal unemployment benefits are one of the most effective stimuli we have," said Christine L. Owens, the executive director of the National Employment Law Project.

"The recovery is still fragile," she said, "and to pull that amount of income and expenditure out of the economy — particularly at a time when people thinking about the holiday season — will have a significant impact on not just those individuals and their families but the economy as a whole."

Friday's jobs report was unlikely to affect policy from the Federal Reserve, which has pledged open-ended stimulus until the job market improves "substantially."

"The Fed desires both a substantial and sustainable improvement in labor market conditions and is likely to read recent payroll growth as a positive step in the right direction, but just one step in a longer journey," said Michael Gapen, director of United States research and global asset allocation at Barclays Capital.

The jobs snapshot for October was based on surveys conducted too early in the month to capture work disruptions across the East Coast caused by Hurricane Sandy. Economists expect that businesses and employment will resume their normal activity by the next jobs survey, in mid-November, and that some industries will likely show an increase in hiring precisely because of the storm.

"We had a lot of lost hours worked and production stuff still delayed, but much of that will be offsets by hiring of emergency workers, government workers and construction, to do all that emergency fixing," said Ms. Swonk.

Mitt Romney's Pennsylvania gamble - Politico

Posted: 02 Nov 2012 09:19 AM PDT

Until a week ago, Pennsylvania was virtually an afterthought in the presidential race.

Now, Mitt Romney and Paul Ryan are making a late advertising and in-person push in the state, parachuting into the Keystone State this weekend for last-minute visits with scant days left to go in the race. It's a move that the Romney team bills as expanding the map and a sign of strength, Democrats call an act of desperation and observers within the state say is unlikely to pay off next Tuesday.

Gibbs: Romney is 'desperate'

The news that Romney will campaign on Sunday in vote-rich Bucks County, a suburban Philadelphia area, and Ryan will stump in the Harrisburg area in central Pennsylvania on Saturday — coupled with more than $10 million in recent ad buys by the Romney campaign, the Republican National Committee and the pro-Romney super PAC there — is raising questions about whether the GOP ticket has a real chance there.

Not a single poll in the state since the start of the general election has shown Romney ahead, but he is closing in on the president. The most recent Real Clear Politics average in the state gives Obama a 4.6 percentage-point lead, and most polls in the last month put the president's advantage anywhere between 4 and 8 points.

There has been movement since the summer: a Franklin & Marshall poll released last week gave Obama a 4-point lead, compared with an 11-point lead in mid-September.

Terry Madonna, a longtime Pennsylvania pollster who conducts the F&M poll, said the tightening of the race in the state has largely been a reflection of what's happened in national polls rather than a sign that Pennsylvania in particular has become more amenable to a Romney victory.

"Romney has gone from a 7, 8, 9, 10-point deficit to a 4, 5, 6-point deficit in this state," he said. "Without being here, that's principally [based] on the tightening of the election nationally."

Romney political director Rich Beeson released a memo earlier this week outlining Romney's ability to play in Pennsylvania.

"Pennsylvania presents a unique opportunity for the Romney campaign. Over the past few years we have seen Pennsylvania voting for a Republican senator and a Republican governor, and Republicans win control of the State House in addition to the State Senate," Beeson wrote Tuesday. "The western part of the Keystone State has become more conservative (and President Obama's war on coal is very unpopular there), and Mitt Romney is more competitive in the voter-rich Philadelphia suburbs than any Republican nominee since 1988. This makes Pennsylvania a natural next step as we expand the playing field."

But Pennsylvania is what pollsters there called the perennial "fools' gold" state for Republicans. For more than two decades, the GOP nominee has invested precious time and money in the state with no electoral votes to show for it. The last Republican to win Pennsylvania was George H.W. Bush in 1988; John McCain's campaign invested a huge amount of time and money there in 2008 but still lost the state by 10 points.

"Republican candidates have come here hundreds of times and spent millions of dollars — and come away with no electoral votes," said Chris Borick, who conducts Muhlenberg College's polling in the state. "So the record isn't good, and if Romney fails here after spending a lot of money and some time at the most crucial part of the election, there's going to be a lot of second-guessing."

Obama's team calls the Romney focus on Pennsylvania a sign his campaign is "flailing."

"In an act of sheer desperation, Mitt Romney and Paul Ryan are going all-in in Pennsylvania, following the lead of every Republican presidential candidate since 1992 who have made last ditch investments in the Keystone State," Obama spokesman Michael Czin said. "Not one of them carried the state. With less than a week to go and consistently down in must-win states, Mitt Romney's campaign is desperately trying to find a path to 270 electoral votes with no avail."

Madonna, too, said Romney's interest in Pennsylvania is likely because he's not making the progress his campaign would like to see in Ohio — which public polls show a tight race, but Obama consistently leading. No Republican has won the White House without capturing Ohio.

"There's no other reason to be here if he was going to win Ohio," Madonna said. "If he thought he had Ohio wrapped up, you'd think he would stay there and make sure he keeps it wrapped up, because it's too much of a gamble to come to Pennsylvania."

There are factors working in Romney's favor in Pennsylvania, though: Republicans have been on the rise there, with a 2010 midterm wave giving the state a new Republican senator, a handful of GOP U.S. House members and shifting the state legislature toward the GOP as well.

Madonna said a victory in the state would be "doable for Romney but a very, very tough road."

And given the total lack of attention paid to the state for most of the presidential campaign, both candidates are less defined there and there's probably more room to shift the tide than there would be in a state that's already been saturated by TV ads and candidate visits.

"Unlike a place like Ohio, where they've been bombarded for months with campaign visits and campaign ads and maybe have come to the point where no one's moving, no one's really seen much of this race at all in Pennsylvania," Borick. "The idea that if you drop, between the super PACs and the campaign, $15 million… maybe you move the dial."

And in suburban Philadelphia, he said — the handful of counties where all Pennsylvania statewide races are won or lost — Romney is an appealing candidate.

"In suburban Philadelphia, someone that had the career that Mitt Romney had might not be looked at as an alien – it might not be so removed from their lives that they say, 'I can't relate to this guy,'" Borick said. "It's a generally wealthier region, highly educated, a lot of people in the business field, and a lot that at least would be open to taking a look at Romney, especially if they're not satisfied with [Obama]."

Obama's team isn't taking chances: the campaign quickly announced it would counter Romney's ad buy there, and is sending in Jill Biden and Bill Clinton as reinforcements in the state between now and Election Day.

But Borick said it's hard to tell what's behind the Romney campaign's latest move – and that it won't be totally clear until Tuesday.

"Is it optimism or an act of desperation? I guess the Romney campaign can tell you that," Borick said. "But the reality is that they're back here, and that means they're trying to make something out of the state."

Kredit: www.nst.com.my
 

NST Online

Copyright 2010 All Rights Reserved