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March 23, 2012

Jobless rates fall in most metro areas

Filed under: economics, technology — Tags: , , , — Gladiator @ 7:48 pm

The unemployment rates in almost all metropolitan areas dropped in January from a year earlier, and a majority were lower than the national rate, the Labor Department said on Friday.

Jobless rates decreased in 345 of the 372 areas, which typically include a city and its surrounding suburbs, and those in Decatur, Alabama, and Monroe, Michigan, dropped the most.

At the same time, 201 areas recorded January unemployment rates below the U.S. rate of 8.8 percent, not seasonally adjusted. Frequently, the Labor Department will adjust jobs numbers to account for seasonal factors such as holiday hiring or weather.

The seasonally adjusted national jobless rate in February and January was 8.3 percent.

While the effects of the recession that began in 2007 were nearly uniform across the country, the recovery has been far more uneven, with areas where housing had fueled the local economies still hurting fast cash advance.

The states of Nevada and California have the highest unemployment rates in the country, and their limping job markets can be seen on the local level.

El Centro, an inland town in southern California, held the highest unemployment rate in the country in January, 26.4 percent, followed by Arizona’s Yuma, where the rate was 24.5 percent. Meanwhile, 10 of the other 11 areas with jobless rates of at least 15 percent or more were in California.

Of the 49 areas with a population of 1 million or more, Nevada’s Las Vegas-Paradise region had the highest jobless rate, 13.1 percent.

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March 12, 2012

China central bank sees room to ease lending curbs

Filed under: Audit, economics — Tags: , , , — Gladiator @ 11:16 am

The head of China’s central bank said Monday it has room to ease lending curbs to support economic growth but any changes would be gradual.

The rapid growth of the world’s second-largest economy has slowed over the past year as Beijing tightened controls to prevent overheating. Chinese leaders have responded to a decline in global demand by promising pro-growth policies, and companies and investors are closely watching what steps they will take.

There is scope to lower the level of reserves Chinese banks are required to hold _ a move that would free more money for lending to businesses _ after the minimum level was raised five times in 2010 and 2011, said Gov. Zhou Xiaochuan of the People’s Bank of China. The minimum stands at 20 percent of deposits for China’s biggest lenders.

“We have a lot of room to adjust the reserve ratio. On the other hand, it is necessary to see whether there is a necessity to adjust,” Zhou said at a news conference during the annual meeting of China’s legislature. He gave no indication when regulators might lower reserves.

“We need to take in to consideration the different restriction factors and we need to see the advantages and disadvantages of adjustment, especially its impact on financial flows,” Zhou said.

Zhou and other officials at the event said the central bank will closely watch Europe’s debt crisis and other global factors that might hurt the Chinese economy. But they emphasized that on a wide range of issues, policy changes will be gradual and cautious.

“Our monetary policy will have to follow conditions in China and also internationally. We will cope with problems responsibly,” Zhou said.

China’s economic growth eased to 8.9 percent in the final quarter of 2011 from the previous year’s double-digit expansion. The government’s growth target this year is 7.5 percent.

The latest trade data show both Chinese and global demand weakening.

Figures released Saturday showed export growth in the combined January-February period slowed to 6.9 percent, compared with December’s 13.4 percent. Analysts often combine the two months to screen out disruption from the Lunar New Year holiday, which falls at different times in that period each year.

Growth in imports for the two months declined to 7.7 percent from December’s 11.8 percent.

Also Monday, central bank officials said Beijing will press ahead with reforms to ease controls on its tightly regulated currency and give market forces a bigger role in setting the yuan’s exchange rate, but they gave no details.

“We will continue with the reform to have an exchange-rate regime that is more market-based,” said Yi Gang, the deputy bank governor in charge of foreign currency.

Washington and other trading partners complain an undervalued yuan gives China’s exporters an unfair price advantage and swells its trade surpluses. Some American lawmakers want to raise tariffs on Chinese goods if Beijing fails to end its controls.

Yi and other officials did not respond to a question about whether Beijing believed the yuan has reached its fair value after its gradual rise against the dollar stopped in recent months and China reported an unexpectedly large $31.5 billion trade deficit for February.

Yi also expressed confidence in the ability of Europe, China’s biggest trading partner, to solve its debt crisis. He said China will continue to invest in Europe, though he stressed that minimizing risk will be a priority. He gave no indication whether Beijing has decided to contribute to a bailout fund for countries that use the euro.

“We believe European countries will be able to cope with the euro crisis,” Yi said. “We will continue to invest in Europe as a responsible investor.”

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March 9, 2012

Australia Records Trade Deficit in January, First in 11 Months - Bloomberg

Filed under: economics, management — Tags: , , , — Gladiator @ 5:24 am

Australia recorded a trade deficit in January, its first in 11 months, on weaker exports of gold, iron ore and coal. The local currency declined.

Imports outpaced exports by A$673 million ($715 million), from a revised A$1.33 billion surplus in December, the Bureau of Statistics said in a report in Sydney today. The median estimate in a Bloomberg News survey of 24 economists was for a surplus of A$1.5 billion.

The data add to pressure on central bank Governor Glenn Stevens to end a two-month pause in interest-rate cuts after the economy slowed last quarter and payrolls fell in February. The currency has strengthened this year on a A$456 billion pipeline of resource projects driven by companies such as BHP Billiton Ltd. (BHP) even as concern remains that Europe

February 28, 2012

Oil below $108 as weak demand picture offsets Iran

Filed under: economics, real estate — Tags: , , , — Gladiator @ 11:48 am

Oil prices fell below $108 a barrel Tuesday in Asia as a weak demand picture offset fears of a potential supply disruption should tensions explode between the West and Iran over its nuclear program.

Benchmark oil for April delivery was down 58 cents to $107.98 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell by $1.21 to $108.56 per barrel in New York on Monday.

Brent crude fell 69 cents to $123.48 per barrel in London.

Western nations fear that Iran is building a nuclear weapon and have been trying to get international inspectors into its facilities. Iran denies the claim and has threatened to disrupt oil supplies in response to any threats.

Despite those headwinds, some analysts said crude prices should weaken because Iran was unlikely to make good on its threat to block the Strait of Hormuz, through which one-fifth of the world’s oil tankers pass each day. Another factor _ the ongoing economic fragility in Europe _ will reduce future demand and help rein in price hikes payday advance.

“We therefore continue to expect oil prices to drop back sharply this year as weakening demand more than offsets concerns over Iran, which are likely to fade too,” analysts at Capital Economics said in a report.

The possible release of oil by the International Energy Agency or the U.S. could also help drive prices down, it said. The IEA embarked on a similar release of emergency crude stocks in June 2011 to ease the strain of high oil prices on the global economy.

“Either way, assuming a larger and earlier stock release than in 2011, the price of Brent crude could then quickly fall by as much as $10 per barrel,” the report said.

In other energy trading, heating oil fell 1 cent to $3.27 per gallon and gasoline futures were steady at $3.30 per gallon. Natural gas was unchanged at $2.45 per 1,000 cubic feet.

Source

February 23, 2012

Judge says Wash. can’t make pharmacies sell Plan B

Filed under: economics, finance — Tags: , , , — Gladiator @ 3:00 pm

In a ruling that appears headed toward appeal, a federal judge has ruled that Washington state cannot force pharmacies to sell Plan B or other emergency contraceptives.

The state’s true goal in adopting the rules at issue was not to promote the timely access to medicine, but to suppress religious objections by druggists who believe that such drugs can have an effect tantamount to abortion, U.S. District Judge Ronald Leighton said in his ruling Wednesday.

Washington’s rules require that pharmacies stock and dispense drugs for which there is a demand. The state adopted the dispensing regulations in 2007, following reports that some women had been denied access to Plan B, which has a high dose of medicine found in birth-control pills and is effective if a woman takes it within 72 hours of unprotected sex.

State lawyers argued that the requirements are legal because they apply neutrally to all medicines and pharmacies, and because they promote a government interest _ the timely delivery of medicine, including Plan B, which becomes less effective as time passes.

But a pharmacy and two pharmacists sued, saying the rules infringed on their religious freedom, and the judge agreed.

The state allows all sorts of business exemptions to the rules, he noted. Pharmacies can decline to stock a drug, such as certain painkillers, if it’s likely to increase the risk of theft, or if it requires an inordinate amount of paperwork, or if the drug is temporarily unavailable from suppliers, among other reasons.

“The most compelling evidence that the rules target religious conduct is the fact the rules contain numerous secular exemptions,” the judge said. “In sum, the rules exempt pharmacies and pharmacists from stocking and delivering lawfully prescribed drugs for an almost unlimited variety of secular reasons, but fail to provide exemptions for reasons of conscience.”

The decision comes as contraception has been debated in political and health care circles around the nation. A controversy erupted this month when religious groups protested a new federal rule that required church-affiliated universities, hospitals and nonprofits to include birth control without co-pays or premiums in their insurance plans.

The outcry prompted President Barack Obama to change the rule to shift the burden from religious organizations to insurance companies. Lawmakers in a few conservative states have taken up the fight with proposals that serve as direct challenges to Obama’s ruling.

Leighton, in his decision Wednesday, did not strike down Washington’s rules, but said simply that the way they were applied to the plaintiffs in this case was unconstitutional.

The state remains free to try to enforce the law against other pharmacies that violate the stocking and dispensing rules, whether for Plan B or other drugs; it remains unclear whether courts would reach a similar conclusion if pharmacies objected to selling other drugs for religious reasons.

“I remain concerned about the impacts on patients if pharmacies are allowed to refuse to dispense lawfully prescribed or lawful medications to patients,” said Gov. Chris Gregoire, who insisted on the dispensing rule’s adoption. “I am especially concerned about those living in rural areas, many of whom may have few alternatives and could suffer lengthy delays in receiving medication or go without entirely.”

The judge, an appointee of President George W. Bush, first blocked the state’s dispensing rule in 2007. But a 9th U.S. Circuit Court of Appeals panel overruled him, saying the rules did not target religious conduct. It sent the case back to Leighton, who held an 11-day trial before reaffirming his original decision.

Further appeals were expected, both from the state and from groups that intervened on the state’s behalf. Before taking more than an hour to read his 48-page opinion in court, Leighton acknowledged that he crafted it for the benefit of a “skeptical” appeals court.

The interveners included women who were denied timely access to Plan B when they needed it _ one of whom cut short a vacation in central Washington to return home to Bellingham, where she knew she could obtain Plan B from her regular pharmacy _ as well as HIV patients, who argued that if druggists could refuse to dispense Plan B for religious reasons, some might also refuse to dispense time-sensitive HIV medications.

“The question really is whether the patient’s rights come first or the pharmacist’s rights come first,” said Andrew Greene, a lawyer for the interveners.

Assistant Attorney General Rene Tomisser said Leighton’s ruling was “more detailed” but made the same mistake he made in 2007.

Margo Thelen, of Woodland, one of the pharmacists who sued over the rules, said she had to leave one job because she refused to dispense Plan B _ and now she can continue working at her new job without fear of being fired.

“Speak to anyone who shops in a pharmacy,” she said. “Their product isn’t always available.”

Two Supreme Court cases guide judges in determining whether laws that infringe upon the free exercise of religion are legal.

In one, the court held that the state of Oregon could outlaw the use of the hallucinogenic peyote for everyone, even though some groups might use it in religious conduct.

In the other, the court held that a city in Florida could not outlaw animal sacrifices for religious purposes, while allowing the slaughter of animals for food, hunting and pest eradication.

Leighton said Washington’s rules are akin to the Florida case. Though they appear to be neutral by their plain language, the state allows pharmacies not to stock or sell drugs for various business reasons, he said.

Source

February 18, 2012

Deal trims maximum jobless benefits to 73 weeks

Filed under: economics, term — Tags: , , , — Gladiator @ 6:04 pm

Long-term unemployed workers in states with persisting high joblessness soon would no longer be able to count on unemployment benefit checks for up to 99 weeks under legislation before Congress.

Under this week’s compromise for extending a Social Security tax cut through the rest of 2012, federal unemployment benefits for people who have been out of work more than six months are being scaled back.

If Congress passes the bill and President Barack Obama signs it into law, the current maximum 99 weeks of benefits will gradually fall to 73 weeks by September. For people in all but about a dozen of the highest unemployment states, the benefits will be cut off after 63 weeks.

Democrats had hoped to keep the number as close as possible to 99 weeks, arguing that the benefits are critical for those struggling to make ends meet and provide a boost to the economy. Republicans wanted to reduce the maximum time span for benefits to 59 weeks, saying too many people don’t seriously look for a job until the government checks quit coming.

The agreement would let both parties claim victory: Democrats say they preserved the program for another year, while Republicans claim they won major concessions by scaling back the program.

About 43 percent of the nation’s nearly 13 million unemployed have been without work for more than six months, double the rate of any other economic downturn since the Great Depression. If Congress had not reached a deal to reauthorize the program, about a million people would have lost benefits next month.

“It’s far from perfect, but it seems to be a responsible approach to the current problem of long-term unemployment,” said George Wentworth, an attorney with the National Employment Law Project, a worker advocacy group that supports long-term benefits.

It was not immediately clear how many people might lose out on benefits later this year under the new plan. Currently, 22 states are eligible for 93-plus weeks of unemployment insurance; just 18 get the full maximum of 99 weeks. The average unemployed worker receives less than $300 a week in benefits.

Wentworth said the gradual decrease would help cushion the blow for those relying on the benefits.

The plan would extend the current 99-week maximum through May for states with the highest unemployment rates. Benefits would drop to 79 weeks in June and to 73 weeks in September. Unless Congress extends the federal benefits again, people losing their jobs after July 1 will get only 26 weeks.

“This agreement is a step in the right direction,” said James Sherk, a policy analyst at the conservative Heritage Foundation. “However, two years of benefits was excessive when passed and a year-and-a-half of benefits in an improving labor market is still excessive.”

The program was already winding down anyway. Under the current formula, the maximum coverage period would have fallen to 79 weeks in October.

The job market has been steadily improving and fewer people are filing for the benefits. On Thursday, the Labor Department reported that the number of people seeking unemployment benefits last week was the lowest it’s been in four years.

The new law will allow states to make benefit applicants take drug tests if they lost their job because they failed a drug test or are applying for a job that requires one. Republicans dropped an effort to let states require all applicants to take a drug test, or require applicants without a high school diplomas to pursue a GED certificate.

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February 7, 2012

Output Growth May Slow on Global Risks: China - Bloomberg

Filed under: economics, marketing — Tags: , , , — Gladiator @ 9:32 am

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January 28, 2012

Obama looks to Mich. to revive clean energy debate

Filed under: economics, marketing — Tags: , , , — Gladiator @ 3:52 pm

A Michigan factory that made luxury yachts before the recession and diversified to add wind energy products when times got tough was touted by President Barack Obama at his State of the Union Address as an example of an industry creating forward-thinking jobs _ with a little help from the government.

In urging Congress to approve clean energy tax credits, Obama cited Energetx Composites LLC, a wind turbine blade manufacturer in Holland, Mich., that received millions in government assistance. Invited to sit in the first lady’s box during the speech Tuesday night was Bryan Ritterby, 58, who went to work for Energetx after being laid off from his furniture-making jobs three years ago.

“Some technologies don’t pan out; some companies fail,” Obama said. “But I will not walk away from the promise of clean energy. I will not walk away from workers like Bryan.”

Without mentioning it by name, Obama appeared to be defending his administration’s support of Solyndra LLC, the California solar panel maker that received a $528 million government loan but filed for bankruptcy court protection last year. Energetx is in a somewhat different situation than Solyndra but still must fend off skepticism from critics who contend government-assisted clean energy products often don’t produce enough high-wage jobs to make it worth the money.

“They must have had to look pretty hard to find someone working in alternative energy,” said Donald Grimes, a senior research specialist at University of Michigan. “I think the politics is what’s driving almost this delusion of where the jobs are. If you want to tout the future of where green energy jobs are going, it’s going to be garbage collection.”

Indeed, waste management and treatment is among the categories with the most “clean economy” jobs in the United States, according to a 2011 report by the Metropolitan Policy Program of the Brookings Institution, a Washington, D.C.-based nonprofit think tank. The category represented about 385,000 jobs in 2010; the wind industry employed 24,294 the same year, the report said.

In 2009, a state board announced a $27.3 million tax credit over 15 years to encourage Energetx to expand. The money is tied to the creation of about 1,000 jobs at the company, and won’t be awarded in cases where jobs don’t materialize. It also got a $3.5 million state award for “energy excellence” in 2010, which was expected to be matched by the U.S. Department of Energy.

The company is far short of its ultimate job target now _ with fewer than 50 employees currently making the turbine blades and other projects _ but it expects to hire roughly 100 more this year, mostly in composite manufacturing. The company would not release specific wage rages, but human resources director Steven Busch said pay will be competitive with similar manufacturing jobs in the Midwest.

U.S. Rep. Bill Huizenga, a Republican whose district includes Holland, said he doesn’t “see a Solyndra-type situation” with Energetx or other clean energy companies in southwest Michigan, such as those that produce batteries for alternative-fuel vehicles. Combined, the area around Holland has about 7.5 percent of its workforce employed in the broad category of “clean jobs,” compared with the national average of 2 percent.

“This isn’t our preferred route, but if this is the route that’s presented to us, we’re going to take it and make it as successful as we can make,” Huizenga said. “Ultimately, the business principles have to be sound. Whether it’s wind, solar, nuclear … these industries aren’t going to just be able to depend on government subsidies forever. At some point you’ve got to be able to stand on your own two feet.”

While Michigan remains stung by the decline in the auto industry, some officials see this new technology as an area where it can lead again.

“It’s communicating a message to people: This is a place on the cutting-edge of change and solving problems,” said John C. Austin, a Brookings senior fellow and visiting faculty member at University of Michigan. “That’s been our big problem in Michigan. We fought for years protecting the auto industry from change. Now we can be the leader in increasing the production of electric cars.”

Brookings officials acknowledge the alternative industry is hard to assess since such jobs pervade all parts of the economy, but its study last year aimed to provide a comprehensive, detailed snapshot of what the sector truly represents.

Erik Nordman, an assistant professor of renewable energy and lead investigator of the West Michigan Wind Assessment project, says the Energetx’s transition isn’t as far-fetched as it might seem because the keel of a yacht closely resembles the blade of a turbine.

With wind energy seemingly more marketable in the future, West Michigan economic developers envision a time Energetx will expand and have hundreds of workers.

“This is new product entry,” said Rick Chapla of The Right Place, a western Michigan economic development organization. “This is complex manufacturing. This is not something that has been done or will be done overnight. It won’t be done in one year. It will be done over a period of years.”

It’s fertile political ground for Obama too. Not only is Michigan considered a swing state in the November election, but he has made several trips to the area to tout clean energy projects, and his administration has provided $2.4 billion in federal grants to develop next-generation electric vehicles and batteries.

Grimes remains skeptical. He says it’s appropriate for the government to invest in research, but not in fledgling commercial enterprises. He cites Solyndra as an example but argues even “picking winners” can prove problematic, since “creative destruction” is a common byproduct of successful yet disruptive technologies.

“They don’t do well with innovation because it costs people jobs,” Grimes said.

___

Associated Press writer Tim Martin contributed to this report.

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January 14, 2012

S&P downgrades France, Italy, others 1 notch

Filed under: economics, usa — Tags: , , , — Gladiator @ 1:28 am

Ratings agency Standard & Poor’s has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany’s at the coveted ‘AAA’ level.

The cuts, which eliminated France and Austria’s triple-A status, deal a heavy blow to the currency union’s ability to fight off a worsening debt crisis.

Italy was lowered to BBB+ from A. Spain slipped to A from AA-.

The downgrades come as crucial talks on cutting Greece’s massive debt pile appeared close to collapse Friday.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PARIS (AP) _ Ratings agency Standard & Poor’s has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany’s at the coveted ‘AAA’ level.

The cuts, which eliminated France and Austria’s triple-A status, deal a heavy blow to the currency union’s ability to fight off a worsening debt crisis.

Italy was lowered to BBB+ from A. Spain slipped to A from AA-.

The downgrades come as crucial talks on cutting Greece’s massive debt pile appeared close to collapse Friday.

Source

January 12, 2012

Supervalu losses widen in quarter

Filed under: economics, money — Tags: , , , — Gladiator @ 10:32 am

Grocery operator Supervalu Inc. said Wednesday that its fiscal third-quarter net loss widened due to costs related to a turnaround plan, continued high food prices and a cautious consumer.

The company, which operates Kirkwood-based Shop ‘n Save, Earth City-based Save-A-Lot and others, trimmed its yearly sales guidance for the second quarter in a row.

Supervalu, like most grocers, is trying to raise prices to offset high food costs without alienating shoppers that have cut spending due to worry over the economy and high unemployment. Supervalu is also facing costs related to a restructuring plan, begun well over a year ago, which has involved closing stores, selling off some businesses, lowering debt and tailoring its stores to meet local needs payday loan lenders.

Still, the company lowered its yearly sales guidance to $36.1 billion from prior guidance of $36.5 billion. Analysts expect revenue of $36.44 billion, according to Fact Set. It reaffirmed adjusted profit guidance of $1.20 to $1.30 per share. Analysts expect $1.24 per share.

For the quarter, Eden Prairie, Minn.-based Supervalu lost $750 million, or $3.54 per share, compared with a loss of $202 million, or 95 cents, last year.

Revenue fell 4 percent to $8.33 billion.

Source

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