First-time applications for state unemployment benefits rose by 12,000 last week to a seasonally adjusted 472,000, the Labor Department reported Thursday, providing further evidence that U.S. labor markets remain very weak.
The previous week’s initial claims were revised higher by 4,000 to 460,000 as more complete data were collected. Read the full release on the Labor Department’s website.
The jobless claims report shows that the level of layoffs, while down from the peak a year ago, is too high to be consistent with robust job growth. The economy is creating jobs, but too few to bring the unemployment rate down meaningfully.
“While jobless claims have been elevated in recent weeks, it has been clear that the economy can still manage modest private payroll gains at these levels,” wrote economist Neil Dutta of Bank of America Merrill Lynch. “Consider that over the last four months, private payroll employment has [averaged] gains of roughly 120,000, while initial jobless claims have averaged 460,000.”
Continued…. http://www.marketwatch.com/story/jobless-claims-rise-12000-to-472000-2010-06-17
Posted in Politics & Finance.
Tagged with banks, business bank, corporate bank, corporation, credit crisis, unemployment.
By Penny
– June 18, 2010
Those who are browsing the markets for used cars and vans may find it to become increasingly similar to finding employment, its a strange correlation. Automotive dealerships have reported issues finding and reselling standard quality used cars and vans to consumers just looking for a cheap ride, and companies that deal in car rental or van rental.
Even if you were to talk around the dealers it would appear choices are endless, but looks can be deceiving.
“We need those vehicles,” said Cary Donovan, vice president and director of used vehicle operations at Sam Swope Auto Group. You’ve got to sell new cars in order to generate that pre-owned car,” Donovan said. “We weren’t seeing that pre-owned vehicle at the rate that we wanted to. The quality trades are the cars that the consumers are trading to us,” Donovan said. “Your car is probably worth more today than it was two years ago.”
Donovan went on to say that in addition to rental car or van rental companies having to cut back their fleets and corporations, the Big Three automakers have cut back on the number of company cars they’re giving to executives. Both used to be sources of low-mileage used cars sold at dealerships. A used car dealer in Ohio told our sister station there is another reason as well.
Donovan told us he is keeping almost all of the cars that are traded in where as he used to ship about half of them off to auction. He says with a tough economy, there are buyers for even the least-expensive used cars, cars that may not have sold before because of their age now have people who want to buy them.
Posted in Auto & Travel.
Tagged with Auto & Travel, car hire, car rental, cars, easycar, easyvan, van hire, vans.
By Penny
– June 18, 2010
Volkswagen is setting the stage for a massive revamp of its U.S. product line in order to turn around its American market and heighten its presence there.
Volkswagen plans are to add the next generation vehicle in the form of the Phaeton sedan to the U.S. product line-up again, retracting another decision from earlier in the year.
As Europe’s largest auto maker, it also seeks to triple annual car and vans sales in the U.S. to one million a year by 2018, with the Audi AG premium brand accounting for 200,000 sales.
Although VW boom outside of the US, market penetration there will be challenging, and the fiercely competitive U.S. market is crucial for Volkswagen’s long-term expansion plan, which includes outpacing Japanese auto giant Toyota Motor Corp. as the world’s largest auto maker.
Volkswagen has steered better through the industry gloom than most of its rivals, thanks mainly to a large presence in China and a strong foothold in Brazil, both strong in the new and used vans and cars area. Additionally, sales on its home turf were propped up last year by state-backed scrapping incentives. But Volkswagen’s turnaround efforts in the U.S. proved to be an uphill battle, which led the company to ramp up investments further.
Ramping up purchasing and production in the dollar-denominated countries is crucial for Volkswagen to make its U.S. operations profitable again and lower its exposure to currency fluctuations.
Posted in Auto & Travel.
Tagged with Auto & Travel, traffic, used vans, van hire, vans, vans for sale, volkswagen, volkwagen, VWC.
By Penny
– June 18, 2010
The European Union will openly publish the results of the stress tests for the region’s lenders, much to the good news of those wishing for more transparency in the business banking sectors. However those involved in financial investments still want to know how regimented and strict the tests will be.
The assessments will be taken by a “institution by institution,” basis. The French President Nicolas Sarkozy told reporters at an EU summit in Brussels yesterday. German Chancellor Angela Merkel said it was important to give “maximum transparency.” Asked how the governments would react if the tests revealed shortcomings, she said the EU has “taken precautions,” including a 750 billion- euro ($928 billion) financial backstop.
“The results could be very helpful reassuring investors that the European financial system is sound,” said Andrew Milligan, the Edinburgh-based head of global strategy at Standard Life Investments Ltd., which oversees about $221 billion. “The devil will be in the detail.”
“The problem with the stress testing, in most people’s opinion, is fairly serious: It’s not stringent enough,” said Ralph Silva, an analyst at London-based Silva Research Network, which specializes in financial-services firms.
“Europe needs this because the markets are asking for it,” Gonzalez said at a seminar in Santander, Spain.
Bankers and their lobby groups across Europe had opposed publication. Deutsche Bank’s Ackermann said last week that releasing the stress tests would be “very, very dangerous” if government mechanisms to support European banks weren’t in place beforehand. A spokesman for the bank declined to comment.
Posted in Politics & Finance.
Tagged with banks, business bank, corporate bank, corporation, credit crisis, finance, financial, investments, mortgage, savings, ulster.
By Penny
– June 18, 2010
There are many reasons why our government’s insistence on pumping out spin, half-truths, and bold-faced lies about the state of the U.S. economy is a serious mistake. In my view, however, one of the biggest problems with this approach is that it encourages people, especially those who are not so well versed in economic realities, to hang on in hope for a return to the way things once were, instead of rethinking their lives and changing with the times.
While a fresh take on life doesn’t necessarily guarantee that circumstances will turn out for the better, odds are that it will be a whole lot more productive than wasting time, money, and energy in anticipation of a future that what will never be. In “Baby Boomers Reinvent Themselves in a Recession” the Palm Beach Post tells the story of a woman who got slammed by fallout from the financial crisis, saw the writing on the wall, and decided to do something about it.
Now what?
Continued….
Posted in Politics & Finance.
Tagged with banks, business bank, depression, finance, financial, investments, mortgage, savings.
By Penny
– June 18, 2010
