photo
Earn up to
$50000
for inviting friends
to get StartUp Bonus
from InstaForex
No investments required!
Start trading without
any investments and risks
WITH NEW STARTUP
BONUS 1000$
GET BONUS
55%
from InstaForex
on every deposit
+ Reply to Thread
Page 1 of 64 1 2 3 11 51 ... LastLast
Results 1 to 10 of 631

Thread: US Market News

  1. #1
    My pips hand is weak
    asleep
     
    fx-gretongan is an unknown quantity at this point fx-gretongan's Avatar
    Join Date
    Jan 2011
    Location
    Always in front of chart
    Gender:
    Male
    Posts
    198
    Accumulated bonus
    86.50 USD
    Thanks
    1
    Thanked 5 Times in 5 Posts

    US Market News

    In this thread, I want to give you outlook on US market. News about US market and everything related to US.

  2. The Following User Says Thank You to fx-gretongan For This Useful Post:

    jessica19 (01-11-2018)

  3. <a href="">&#1060;&#1086;&#1088;&#1077;&#1082;&#1089; &#1087;&#1086;&#1088;&#1090;&#1072;&#1083;</a>
  4. #2
    My pips hand is weak
    asleep
     
    fx-gretongan is an unknown quantity at this point fx-gretongan's Avatar
    Join Date
    Jan 2011
    Location
    Always in front of chart
    Gender:
    Male
    Posts
    198
    Accumulated bonus
    86.50 USD
    Thanks
    1
    Thanked 5 Times in 5 Posts
    Sales of New Homes in U.S. Probably Climbed for Second Month

    Purchases of new houses in the U.S. probably rose in December for a second month as the industry struggled to stabilize near record lows, economists said before a report today.

    Sales, tabulated when contracts are signed, climbed 3.5 percent to 300,000 annual pace, according to the median estimate in a Bloomberg News survey of 79 economists. The 274,000 rate in August was the weakest in data going back to 1963.

    Builders may keep facing competition from a growing glut of foreclosed homes that is depressing prices. The lack of a sustained housing rebound and unemployment above 9 percent are among reasons Federal Reserve policy makers today are expected to press on with a second round of stimulus that will pump $600 billion into financial markets by June.

    “It’s very hard for new-home sales to compete when buyers are getting good bargains on distressed houses,” said Michelle Meyer, senior U.S. economist with Bank of America Merrill Lynch Global Research in New York. “Housing is going to stand out as the weak spot in the economy for a while. The Fed remains concerned about it.”

    The Commerce Department report is due at 10 a.m. in Washington. Economists’ forecasts ranged from 270,000 to 315,000, after a 290,000 rate in November.

    Previously owned home purchases jumped more than forecast in December as buyers tried to lock in low mortgage rates before the economic recovery pushed borrowing costs up even more, figures from the National Association of Realtors showed last week. Existing house purchases are calculated when a contract closes.

    Leading Indicator

    New-home sales are considered a more timely barometer than purchases of previously owned homes, which account for about 90 percent of the housing market.

    Housing demand see-sawed last year, reflecting a boost from a homebuyer tax incentive of as much as $8,000 that gave way to a plunge in sales by mid-2010 after the credit ended.

    With sales yet to show sustained strength, builders have cut back on the new-home supply. Housing starts fell in December to a 529,000 annual rate, the lowest level since October 2009, Commerce Department figures showed last week.

    An unemployment rate that is forecast to average more than 9 percent again this year signals some homeowners will keep having trouble meeting mortgage payments, leading to an increase in distressed properties. The number of homes getting a foreclosure filing will rise about 20 percent this year, reaching a peak for the housing crisis, said RealtyTrac Inc., an Irvine, California-based data seller.

    Prices Fall

    Prices remain under pressure, hurting homeowner equity while at the same time improving affordability. The S&P/Case- Shiller index of home values in 20 cities fell 1.6 percent in November from the prior year, the biggest 12-month decrease since December 2009, a report from the group showed yesterday.

    The S&P Supercomposite Homebuilder Index, which includes Toll Brothers Inc. and Lennar Corp., rose 2.3 percent in 2010, compared with a 13 percent gain in the S&P 500 Index.

    http://www.bloomberg.com/news...second-month.html

  5. #3
    My pips hand is weak
    asleep
     
    fx-gretongan is an unknown quantity at this point fx-gretongan's Avatar
    Join Date
    Jan 2011
    Location
    Always in front of chart
    Gender:
    Male
    Posts
    198
    Accumulated bonus
    86.50 USD
    Thanks
    1
    Thanked 5 Times in 5 Posts
    Nielsen Said to Raise $1.6 Billion in Private Equity-Led U.S. IPO

    Nielsen Holdings NV, the television- audience ratings company owned by Blackstone Group LP, Carlyle Group, KKR & Co. and Thomas H. Lee Partners LP, raised $1.6 billion in the biggest private equity-led U.S. initial public offering since 2006.

    Nielsen, which was taken private by six leveraged buyout firms four years ago, sold 71.4 million shares at $23 each yesterday after offering them at $20 to $22 apiece, according to a person familiar with the IPO who asked not to be identified because the details were private. Separately, Demand Media Inc., which employs freelance workers who contribute low-cost stories to websites, raised $151 million selling the first venture capital-backed U.S. IPO of 2011 above the forecast price range.

    LBO firms are betting the Standard & Poor’s 500 Index’s rally to a two-year high will increase demand for IPOs of debt- fueled acquisitions completed as credit markets started to freeze four years ago. New York-based Nielsen raised more than initially sought for a company that posted $1.4 billion of annual losses since the takeover and had $8.2 billion in net debt after a year in which initial offerings backed by private equity funds gained less than half as much as other IPOs.

    “There’s a more bullish environment for IPO offerings” now, said Michael Yoshikami, who oversees $1 billion at YCMNet Advisors in Walnut Creek, California. Because of “the positive experience that private equity is having with the Nielsen deal, you’ll likely see a flood of IPOs come to market,” he said.

    Spirit AeroSystems

    The initial sale by Nielsen was the biggest from a private equity-backed LBO target in the U.S. since Spirit AeroSystems Holdings Inc. raised $1.65 billion in November 2006, according to data compiled by Bloomberg and Renaissance Capital LLC. The Wichita, Kansas-based company, bought by Onex Corp. of Toronto in 2005, sold shares for $26 each, eight times more than the average $3.06 paid by existing owners, the prospectus showed.

    Nielsen was acquired in July 2006 for 8.9 billion euros ($11.4 billion), including the assumption of debt, data compiled by Bloomberg show. The IPO price represents a 41 percent paper gain from the average $16.32 a share the company’s existing owners paid, according to a U.S. Securities and Exchange Commission filing and data compiled by Bloomberg.

    The IPO was set to trim the stakes held by New York-based Blackstone and KKR, Carlyle of Washington and Thomas H. Lee in Boston to about 16 percent each from 20 percent. San Francisco- based Hellman & Friedman LLC’s holding would decline to 7.6 percent from 9.6 percent, while AlpInvest Partners NV of Amsterdam’s share would drop to 5.4 percent from 6.8 percent, according to the SEC filing.

    http://www.bloomberg.com/news...-h-lee-29-profit.html

  6. #4
    My pips hand is weak
    asleep
     
    fx-gretongan is an unknown quantity at this point fx-gretongan's Avatar
    Join Date
    Jan 2011
    Location
    Always in front of chart
    Gender:
    Male
    Posts
    198
    Accumulated bonus
    86.50 USD
    Thanks
    1
    Thanked 5 Times in 5 Posts
    State Defaults in U.S. Unlikely 50% of Investors Say in Poll

    Investors are divided over whether a big U.S. city or state will default on its bonds this year, though most say the federal government would step in with a bailout and a financial crisis would be averted.

    Half of respondents to a Bloomberg Global Poll conducted Jan. 21-24 say they think a default by a state or major city this year either isn’t likely or is just somewhat likely, though almost as many, 46 percent, say such a prospect is likely.

    Even if a default were imminent, two-thirds of global investors say Washington would come to the rescue, and almost 6-in-10 say it is unlikely or only somewhat likely that turmoil would spread to other financial markets this year, according to the poll of 1,000 Bloomberg customers who are investors, traders or analysts.

    Investors say their portfolios reflect pessimism about the prospects for the $2.9 trillion municipal-bond market: By a 4- to-1 ratio, poll respondents over the next six months say they plan to reduce rather than increase their exposure to municipals, whose prices have been battered by concerns about local finances.

    “Most certainly, there are municipalities around this country that are zombies,” says poll respondent Dane Fulmer, a Fort Smith, Arkansas, investor who runs a firm managing money for family and friends. “They are broke and they will be forced to restructure their debt and availability of services offered to communities.”

    ‘Hundreds of Billions’

    Speculation about the possibility of widespread municipal- bond defaults intensified in recent months after Meredith Whitney, the banking analyst who attracted attention for correctly predicting Citigroup Inc.’s 2008 dividend cut, said last month that “hundreds of billions” of municipal bonds may default this year as a result of the financial strains.

    Carey Chapman, a poll respondent who is treasurer of CommunityONE Bank in Asheboro, North Carolina, says those concerns are overblown.

    “Though the municipal market will be under additional near-term credit stress, the level of potential defaults should be easily absorbed in the overall economy, posing little danger of presenting any significant systemic risk,” he says.

    No Federal Help

    The poll suggests investors are skeptical about the recent assertions by lawmakers and Federal Reserve Board Chairman Ben S. Bernanke that local governments shouldn’t expect a rescue by Washington. Defaults in the municipal-bond market could undermine investor confidence in the Treasuries market, driving up the cost of borrowing for the U.S.

    The poll shows investors continue to have concerns that the U.S. deficit will cause a crisis of confidence and push up interest rates over the next two years. Sixty-one percent say that is at least a moderate risk, compared with 63 percent who said so in a November survey.

    With states facing budget shortfalls of $175 billion over the next two years, federal assistance disappearing, and tax collections still below their 2008 peak, there has been growing speculation that state and local politicians will renege on their obligations to investors.

    Similar concerns were raised by JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, who told a conference this month that investors in municipal debt should be “very, very careful.”

    http://www.bloomberg.com/new...y-in-global-poll.html

  7. #5
    Banned
    ----
     
    ndoro is on a distinguished road ndoro's Avatar
    Join Date
    Jan 2011
    Posts
    434
    Accumulated bonus
    156.60 USD
    Thanks
    0
    Thanked 0 Times in 0 Posts
    China rating agency blames U.S. for "credit war"
    – Fri Jan 28,

    BEIJING (Reuters) – The United States is effectively printing cheap dollars as it implements an ultra-loose policy to spur its flagging economy, setting the stage for "a world credit war," a Chinese rating agency said on Friday.

    The Beijing-based Dagong Global Credit Rating, a relative newcomer in the sovereign debt rating realm, said in its 2011 Sovereign Credit Risk Outlook that quantitative easing by the U.S. Federal Reserve has "eroded the legitimacy of the global monetary system that takes the dollar as the key reserve currency."

    The policy easing was also "bringing the U.S. dollar's credit-worthiness to a vulnerable position," it said.

    Dagong, which has been rating Chinese corporate bonds since 1994, created a splash by rating the United States at double-A, below China's AA-plus, in July 2010.

    It downgraded the U.S. sovereign credit rating last November, following the Fed's decision to pump more dollars into the U.S. economy.

    Although Dagong's statement does not fully represent Beijing's view, it was in line with the government's unhappiness with the U.S. policy easing, which has been blamed by Chinese officials for fuelling global inflation risks.

    As China's $2.85 trillion foreign exchange reserves are mainly denominated in U.S. dollars, Chinese Premier Wen Jiabao had publicly voiced concerns of the assets.

    President Hu Jintao told a recent G20 summit at Seoul that China wanted "an international reserve currency system with stable value, rule-based issuance and manageable supply."

    But Dagong said in the English-language report that the United States is trying to "haircut" its creditors by permitting a weakening currency.

    "The behavior that the United States ignores international creditors' legitimate interests indicates a dramatic decline of the country's willingness to repay the debt," Dagong said.

    In defining the "credit war," Dagong said "it aims at encroach on other countries' interests through continuous depreciating the actual value of the currency; and it arouses all the countries in the world to take various credit resources as a financial weapon to safeguard the national interests."

    It added that the capital flows into emerging economics stemmed from cheap dollar is "a destructive factor to the healthy economic development in different countries."

    For full version of Dagong's report, see http://www.dagongcredit.com/dagongwe...how.php?id=86&

    table=web_e_zxzx

    PORTUGAL AND SPAIN

    Dagong added the sovereign debt crisis in the euro zone countries would intensify in 2011 and it may downgrade of sovereign credit ratings on Portugal and Spain.

    "Countries, such as Portugal and Spain, will have to ask for bailouts in 2011," it said.

    Earlier this month, China reaffirmed a commitment to buying Spanish bonds while newspapers in December said Beijing was ready to buy Portuguese debt to help it through Europe's spreading debt crisis.

    Echoing the International Monetary Fund and western rating agencies, Dagong also warned that the governments in the United States, Japan and Germany will face higher pressure on debt repayment in case of inflation, economic downturns or if investors start dumping their bonds. It did not elaborate.

    Ratings agency Standard & Poor's cut Japan's long-term debt rating on Thursday for the first time since 2002, and hours later Moody's Investors Service warned the risk of the United States losing its top AAA rating, although small, was rising.

    The International Monetary Fund said the G7's two biggest economies needed to spell out credible deficit-cutting plans before the markets lose patience and dump their bonds.

    (Reporting by Zhou Xin and Kevin Yao; Editing by Kim Coghill)


    http://news.yahoo.com/s/nm/20110128/...5hcmF0aW5nYQ--

  8. #6
    Banned
    ----
     
    ndoro is on a distinguished road ndoro's Avatar
    Join Date
    Jan 2011
    Posts
    434
    Accumulated bonus
    156.60 USD
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Dollar stable before US economic growth update
    – Fri Jan 28, 2011

    LONDON (AFP) – The dollar steadied Friday against rival currencies as traders awaited crucial fourth-quarter US GDP data, while the market also reflected on the downgrading of Japan's credit rating.

    In London deals, the shared eurozone unit firmed to $1.3736, up from $1.3730 in New York late on Thursday.

    Against the Japanese currency, the greenback eased to 82.63 yen from 82.86 yen on Thursday, when it had struck a two-week high at 83.22 following the downgrade from Standard & Poor's.

    Later on Friday, at 1330 GMT, traders will digest the release of US gross domestic product (GDP) for the three months to the end of December.

    President Barack Obama and hundreds of millions of other Americans will get a key snap shot showing the health of the economy, when the Commerce Department publishes growth figures for late 2010.

    The world's largest economy is expected to have grown 3.5 percent in the final quarter of the year on an annual basis, according to economists, the fastest rate since the start of the year.

    "Foreign exchange markets remain fairly range bound as we wait for the US fourth quarter GDP," said research director Kathleen Brooks at trading site Forex.com.

    "The data should set the tone for the dollar as we end the week," she said, adding that the reading could surprise to the upside and breach 4.0 percent.

    Levels of consumer spending not seen in five years and growing exports are expected to push up growth levels from the 2.6 percent seen in the third quarter.

    A dip in imports -- which directly subtract from growth -- is also expected to help make up for declining business inventories.

    The yen, meanwhile, rose slightly as exporters snapped up the currency at a bargain rate after a plunge caused by the downgrading of Japan's credit rating by Standard & Poor's.

    The Japanese unit had plunged on Wall Street after ratings agency S&P cut Japan's sovereign debt rating to "AA minus" from "AA", accusing Tokyo of lacking a "coherent strategy" in efforts to ease a mountain of debt.

    In London on Friday, the euro changed hands at $1.3736 against $1.3730 in New York late Thursday, at 113.50 yen (113.81), £0.8644 (0.8615) and 1.2978 Swiss francs (1.2982).

    The dollar stood at 82.63 yen (82.86) and 0.9448 Swiss francs (0.9449).

    The pound was at $1.5889 (1.5934).

    On the London Bullion Market, the price of gold fell to $1,316.23 an ounce from $1,334.50 late on Thursday.

    http://news.yahoo.com/s/afp/20110128...9sbGFyc3RhYmxl

  9. #7
    Banned
    ----
     
    ndoro is on a distinguished road ndoro's Avatar
    Join Date
    Jan 2011
    Posts
    434
    Accumulated bonus
    156.60 USD
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Oil prices rise before US growth data
    Fri Jan 28, 2011
    LONDON (AFP) – World oil prices climbed on Friday before the release of economic growth data in the United States, which is the world's biggest consumer of crude.

    Brent North Sea crude for delivery in March rose 65 cents to $98.04 per barrel in London trade ahead of US gross domestic product (GDP) data, due for publication at 1330 GMT.

    New York's main contract, light sweet crude for March, gained 28 cents to $85.92 a barrel.

    "Without any doubt, focus will be on the US GDP release today," said Filip Petersson, an analyst at SEB Commodity Research.

    "The outcome versus (analyst) expectations is most likely going to decide where crude oil prices will end up today. A positive surprise could send Brent above $100 a barrel even though we believe that the staying power at that level is limited.

    "A negative surprise could release some more strength from Brent as several fundamental supports have weakened lately, for example temperatures have risen and Chinese product demand should be easing," Petersson added.

    Amid high US inventories, OPEC kingpin Saudi Arabia this week suggested that the cartel could still raise its crude output to meet an increase in demand.

    The Organization of Petroleum Exporting Countries (OPEC) could raise output to meet a "two percent" increase in demand during 2011, Saudi's oil minister Ali al-Naimi said on Monday.

    Speaking at the Annual Global Competitiveness Forum in Riyadh, Naimi added that he expected average oil prices to be around last year's level of $80 despite a recent spike towards $100 a barrel in London.

    Meanwhile the gap between Brent and New York has widened to a record, at more than $12 dollars, owing to the high level of crude stockpiles at the Cushing storage depot in Oklahoma.

    "There's such a negative sentiment towards them (the Cushing inventories), everyone is clearing their positions, shifting across to the Brent," said Matt Smith of research group Summit Energy.

    Smith also cited the poor US economic data out Thursday: higher jobless claims and disappointing orders of durable goods for additional pressure on New York crude.

    S&P's shock downgrade of Japanese sovereign debt also fed market weakness, added Phil Flynn of PFGBest Research.

    Standard & Poor's on Thursday cut Japan's credit rating for the first time since 2002, accusing the government of lacking a "coherent strategy" in efforts to ease the highest debt of any industrialized nation.

    "Every time there is a concern about sovereign debt there's a bearish sentiment towards oil," said Flynn.
    http://news.yahoo.com/business/us-ec...Nvbm9teW5ld3M-

  10. #8
    Banned
    ----
     
    ndoro is on a distinguished road ndoro's Avatar
    Join Date
    Jan 2011
    Posts
    434
    Accumulated bonus
    156.60 USD
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Economy gains, but not enough to ease jobs crisis
    Fri Jan 28, 2011
    WASHINGTON – The economy gained strength at the end of last year as Americans spent at the fastest pace in four years and U.S. companies sold more overseas.

    The growth is boosting hopes for a stronger 2011. But it remains too weak to ease high unemployment.

    The Commerce Department reported Friday that growth rose by an annual rate of 3.2 percent in the October-December quarter. That's better than the 2.6 percent growth in the previous quarter. And it was the best quarterly showing since the start of last year.

    The economy has now consistently picked up speed since hitting a rough path in the spring.

    For all of last year, the economy grew 2.9 percent, the most since 2005. It was an improvement from 2009 when the economy suffered its worst decline in more than 60 years.

    All told, the economy produced $13.38 trillion worth of goods and services last year, a new record. It surpassed the pre-recession peak reached in the fourth quarter of 2007.

    Still, the economy isn't growing fast enough to drive down unemployment, which was 9.4 percent in December. It takes about 3 percent growth just to create enough jobs to keep pace with the population increase. By some estimates, growth would have to be closer to 5 percent for a full year to drive down the unemployment rate by 1 percentage point.

    Increased consumer spending was a key reason the economy grew more strongly. Americans boosted their spending at a 4.4 percent pace, the most since 2006. They spent more on furnishings, appliances, cars and clothes.

    That's largely why economists are more optimistic about the economy's performance this year. Consumer spending accounts for roughly 70 percent of overall economic activity.

    After the recession ended in June 2009, consumers kept spending cautiously. At the end of last year, though, that began to change.

    Economists expect consumer spending will rise 3.2 percent or more for all of 2011. That would be almost double last year's anemic rate.

    A cut in workers' Social Security taxes, higher stock prices and wage gains from a slowly healing jobs market should make people feel better about spending, economists say.

    Workers' wages and benefits increased by 2 percent last year, the Labor Department said in another report. That was up from a 1.4 percent increase in 2009, but was still the second-smallest increase in nearly three decades. Stronger hiring this year should help wages grow more. But lavish pay raises and bonuses aren't expected for most workers because competition for jobs remains fierce, economists say.

    In the final quarter of last year, consumers spent more and saved less. Americans saved 5.4 percent of their disposable income, compared with 5.9 percent in the third quarter.

    Economists are hopeful that consumers can power the economy, especially as government stimulus fades and businesses spend less replenishing their stockpiles.

    Companies spent just $7.2 billion on inventories in the October-December, compared to a $121.4 billion increase in the July-September quarter. Inventories investment, which had been an important source of growth since the recession ended, subtracted from economic growth for the first time since the second quarter of 2009.

    Economic growth would have been a lot stronger if businesses had not slowed down their inventory investment. Final demand, which excludes the inventory swing and is a good indicator of underlying demand in the economy, rose at a 7.1 percent pace, the strongest since 1984.

    Stronger sales of U.S. exports to foreign buyers helped fuel growth at the end of last year, but the higher sales were eclipsed by the slowdown in inventory rebuilding.

    Exports of U.S.-made goods grew at a 10 percent pace, up from a 5.8 percent pace in the July-September quarter. Economists expect sales of exports to continue to provide support for the economy this year.

    Business spending on equipment and software also helped growth in the October-December quarter. Businesses also started spending again on home building and commercial construction projects after deep cutbacks.

    Government spending, however, stopped being a source of growth for the economy at the end of last year. It dipped 0.6 percent in the October-December quarter — the first drop since the start of 2010. The pullback reflected cuts in spending by the federal government on defense and by state and local governments, which are struggling with budget problems. Federal spending on non-defense projects, however, grew.

    For all of this year, the economy is expected to grow 3.2 percent, according to a new AP Economy Survey.

    Economists in the AP Economy Survey predict the unemployment rate will rise to 9.5 percent in January. The government releases the January employment report next week. The unemployment rate is expected to drop to 8.9 percent by the end of this year, the survey says.
    http://news.yahoo.com/s/ap/20110128/...Nvbm9teWdhaW5z

  11. #9
    Banned
    ----
     
    ndoro is on a distinguished road ndoro's Avatar
    Join Date
    Jan 2011
    Posts
    434
    Accumulated bonus
    156.60 USD
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Consumer spending, trade buoy U.S. economy in Q4
    Fri Jan 28, 2011

    WASHINGTON (Reuters) – The U.S. economy gathered speed in the fourth quarter to regain its pre-recession peak with a big gain in consumer spending and strong exports, removing doubts about the recovery's sustainability.

    The economy grew at a 3.2 percent annual rate in the final three months of 2010, after expanding at a 2.6 percent pace in the third quarter, the Commerce Department said on Friday.

    Wall Street had looked for a 3.5 percent gain, but the composition of growth gave the report a surprisingly robust tenor: strong consumer and business spending, and a hint at a need for businesses to build up inventories.

    Still, it was not seen as so strong as to knock the Federal Reserve off track from efforts to support recovery.

    "The numbers look very good. The economy has got some real good momentum heading into the new year," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities in New York.

    He said growth could easily top 4 percent this year, if job creation finally picks up. "If the labor market does not come through the economy is not going to get enough lift."

    Investors took little notice of the report, distracted by political unrest in Egypt and weak corporate results, including a steep decline in Ford Motor Corp's quarterly earnings.

    Stocks fell, while prices for U.S. government bonds rose. The turmoil in Egypt also helped push the dollar up against a basket of currencies as investors sought a safe haven.

    For the whole of 2010, U.S. gross domestic product grew 2.9 percent, the biggest gain since 2005 but an advance too weak to whittle away at unemployment, which ended the year at 9.4 percent. Output contracted 2.6 percent in 2009.

    "I think there is much more confidence now that we've got a sustainable expansion," Treasury Secretary Timothy Geithner said at the World Economic Forum in Davos before the data was released.

    But he cautioned: "It is not a boom. It's not going to offer the prospect of a rapid decline in the unemployment rate.

    CONSUMERS SHOULDER RECOVERY

    During the fourth quarter, consumer spending grew at a 4.4 percent rate -- the fastest since the first three months 2006. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, added about 3 percentage points to GDP growth, its largest contribution in more than four years.

    And consumers are growing more confident. The Thomson Reuters/University of Michigan's consumer sentiment index rose to 74.2 from 72.7 early this month, a separate report showed.

    Though analysts do not expect consumer spending to continue rising at such a brisk pace, they expect it to remain strong.

    Indeed, Ford raised its forecast for 2011 U.S. auto sales to a range of 13 million to 13.5 million vehicles. It had previously said sales could be as low as 12.5 million.

    Another pillar of growth was exports. An 8.5 percent jump in exports combined with a 13.6 percent plunge in imports to add 3.44 percentage points to GDP growth, the first contribution from trade in a year and the biggest since 1980.

    World leaders are counting on stronger U.S. exports to help rebalance the global economy, and the Obama administration is targeting exports as a growth engine.

    But economists said the boost from trade was likely to be fleeting as a need by businesses to rebuild stocks would lead to a pickup in imports.

    In the fourth quarter, inventory growth slowed sharply to subtract from GDP growth for the first time since the second quarter of 2009. Economists said businesses probably had underestimated the strength of demand and would now need to restock, which should force further gains in production.

    "Consumer spending is solid and it's likely to remain decent. That means we're probably going to see an inventory build-up in the first half of the year," said Neil Dutta, an economist at Bank of America Merrill Lynch in New York.

    If businesses had not put the brakes on inventory growth, the economy would have expanded at a 7.1 percent clip. That marks the biggest increase in domestic and foreign demand in more than 26 years. In contrast, domestic purchases grew at a much more moderate 3.4 percent rate.

    EMPLOYMENT STILL LAGGING

    Even with growth quickening, progress reducing unemployment has been painfully slow, and the report is little comfort for the millions of unemployed Americans, or for U.S. central bank officials on a jobs-creation vigil.

    On Wednesday, Fed officials voiced concern the pace of the recovery was still not strong enough to significantly lower unemployment and reiterated a commitment to a $600 billion stimulus effort through the purchase of government bonds.

    Although businesses have been hesitant to hire, they have used their vast cash reserves for new investments and spending on equipment and software notched a seventh straight quarterly gain at the end of last year.

    Home building also helped support growth, although it could be hurt early this year by the harsh winter weather pounding some parts of the country. Government spending contracted, with much of the drag coming from state and local governments.

    The report showed inflation quickening on a surge in food and gasoline costs. But a "core" price index closely watched by the Fed advanced at a record low 0.4 percent pace, suggesting broad price pressures are not building.

    (Editing by Andrea Ricci and Tim Ahmann)
    http://news.yahoo.com/s/nm/20110128/...N1bWVyc3Blbg--

  12. Fb
  13. #10
    Banned
    ----
     
    ndoro is on a distinguished road ndoro's Avatar
    Join Date
    Jan 2011
    Posts
    434
    Accumulated bonus
    156.60 USD
    Thanks
    0
    Thanked 0 Times in 0 Posts
    US growth hits highest level in five years
    Fri Jan 28, 2011
    WASHINGTON (AFP) – The US economy grew at its fastest clip in five years in 2010, the Commerce Department reported Friday, as the country bounced back from recession and fears of a double-dip recession ebbed.

    Growth hit 2.9 percent for the year, reversing the 2.6 percent contraction seen in 2009.

    Releasing figures for the end of a turbulent year for the world's largest economy, officials reported a late surge in consumer spending and an improving trade balance that pumped growth up to 3.2 percent in the last quarter.
    [ For complete coverage of politics and policy, go to Yahoo! Politics ]

    Consumer spending grew 4.4 percent over the final three months of the year.

    The White House lauded a "sixth straight quarter of positive growth."

    President Barack Obama's top economic adviser Austan Goolsbee said it was "a further sign that the economy continues to gain momentum as it recovers from the worst recession since the Great Depression."

    "We are on the right path, but have a lot more work to do to accelerate growth so that we are creating the jobs we need."

    The prospect of Americans spending, earning and exporting more boosted economists' hopes that the jobless recovery may be coming to an end, despite the fact that the last quarter's growth of 3.2 percent missed their expectations.

    "The main concern is that growth could remain too weak to stimulate a sufficiently high rate of job creation to reduce stubbornly high unemployment, but today's GDP data at least take a step in the right direction," said Chris Williamson, chief economist with Markit.

    "Talk of a jobless recovery may prove misplaced in 2011."

    The figures appeared to signal a turning point for the economy, which for much of the year had struggled to escape the recession's orbit.

    Throughout 2010 growth was driven by businesses rebuilding inventories that had been run down during the height of the crisis.

    That process -- always assumed to be a temporary economic boost -- now appears to be coming to be coming to an end.

    "Inventory building subtracted 3.7 percentage points (in the fourth quarter) after adding significantly to growth over the previous five quarters," said Zach Pandl of Nomura.

    But economists were encouraged that spending and exports are picking up the slack.

    "The bottom line is that we have a healthier mix of components heading into 2011," said Brian Jones of Societe Generale, citing "a much more favorable mix between final demand and inventories."

    The White House said it would continue to try and encourage that mix.

    Goolsbee said the administration would focus on helping businesses "to invest and hire here at home, investing in education and infrastructure, and promoting exports abroad."

    http://news.yahoo.com/s/afp/20110128...Nncm93dGhoaXRz

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Forex Forum Nigeria – Presentation
You are welcome to the Forex Forum Nigeria serving as a virtual salon for communication of traders of all levels. Forex is a dynamically developing financial market which is open 24 hours a day. Anyone can get access to this market via a brokerage company. On this forum you can discuss the numerous advantages of trading on the currency market and all aspects of online trading on MetaTrader4 and MetaTrader5 platforms.

Forex Forum Nigeria – Trading discussions
Every forumite can join a discussion of various issues, including those related to Forex but not limited to. The forum has been designed for sharing opinions and helpful information and is open for both professionals and beginners. Mutual assistance and tolerance are highly appreciated. If you would like to share you experience with others or deepen your knowledge of trading craft, you are most welcome to the forum threads dedicated to trading discussions.

Forex Forum Nigeria – Dialogue between brokers and traders (about brokers)
In order to be successful on Forex, it is crucial to choose a brokerage company with due diligence. Make sure you broker is really reliable! Thus you will be impervious to many risks and will make profitable trades on Forex. On the forum a rating of brokers is represented; it is based on comments left by their customers. Post your opinion about the brokerage company you work with, it will help other traders avoid mistakes and choose a good broker.

Unleashed communication on Forex Forum Nigeria
On this forum you can talk about not only trading issues, but any other topics you like. Offtopping is allowed in a special thread too! Humour, philosophy, social problems or practical wisdom – converse about anything you are interested in, including forex trading if you like!

Bonuses for communication on Forex Forum Nigeria
Those who post messages on the forum can receive money bonuses and use them for trading on an account of a forum sponsor. The forum is not meant for gaining profit; however forumites can get these small bonuses as reward for the time spent on the forum and sharing views on the currency market and trading.