On Wednesday December 22, 2010, 6:11 pm EST
Economy grew modestly in
July-September quarter
WASHINGTON (AP) -- The
economy grew at a moderate pace last summer, reflecting stronger spending by
businesses to replenish stockpiles. More recent barometers suggest the economy
is gaining momentum in the final months of the year.
Gross domestic product
increased at a 2.6 percent annual rate in the July-September quarter, the
Commerce Department reported Wednesday. That's up from the 2.5 percent pace
estimated a month ago. While businesses spent more to build inventories,
consumers spent a bit less.
Many analysts predict the
economy strengthened in the October-December quarter. They think the economy is
growing at a 3.5 percent pace or better mainly because consumers are spending
more freely again.
Sales of previously
occupied homes up in November
WASHINGTON (AP) -- More
people bought previously owned homes in November, the third increase in four
months after the worst summer season in more than a decade.
Still, economists say it
could take years for home sales to return to healthy levels.
Buyers bought homes at a
seasonally adjusted annual rate of 4.68 million, the National Association of
Realtors said Wednesday. Even with the rise, this year is shaping up to be the worst
for home sales since 1997.
Tax cuts raise expectations
for economy in 2011
WASHINGTON (AP) --
Expectations for economic growth next year are turning more optimistic now that
Americans will have a little more cash in their pockets.
A cut in workers' Social
Security taxes and rising consumer spending have led economists to predict a
strong start for 2011.
Still, most people won't
feel much better until employers ramp up hiring and people buy more homes.
Analysts are predicting
economic growth will come in next year close to 4 percent. It would mark an
improvement from the 2.8 percent growth expected for this year and would be the
strongest showing since 2000.
Administration files trade
case against China
WASHINGTON (AP) -- The
Obama administration on Wednesday filed a case against China before the World
Trade Organization, accusing Beijing of providing unfair government subsidies
to Chinese energy companies.
The case is in response to
a petition from the United Steelworkers union last September. The union alleged
that Chinese businesses are able to sell wind and solar equipment on the
international market at a cheaper price than their competitors because they
receive subsidies.
The administration's WTO
case alleges that the subsidies were in violation of global trade rules.
Bringing allegations before
the Geneva-based organization that oversees global trade adds tension to
already strained U.S.-China relations. The two superpowers are fighting on a
number of other trade fronts, from China's currency regime to barriers China
still maintains against U.S. beef imports.
More people fell out of
Obama mortgage-aid program
WASHINGTON (AP) -- More
troubled homeowners are dropping out of the Obama administration's main
foreclosure-relief program, which has been widely criticized for failing to
help more people keep their homes.
The Treasury department
said Wednesday that about 774,000 homeowners have dropped out as of last month.
That's about 54 percent of the more than 1.4 million people who applied. And
it's up from October, when approximately 756,000 had fallen out.
The program is intended to
help those at risk of foreclosure by lowering their monthly payments. Borrowers
start with lower payments on a trial basis. The program has struggled to
convert them into permanent loan modifications.
Holiday shoppers sprint to
end; retail revenue up
NEW YORK (AP) -- Holiday
shoppers are racing to the end of the season at a more feverish pace this year,
with retail revenue up 5.5 percent during the last weekend before Christmas.
The figure, released by
ShopperTrak on Wednesday, is a drastic improvement from the same weekend last
year, when revenue dropped 6.2 percent because a big East Coast snowstorm
closed malls and kept shoppers at home.
This year's improvement is
especially encouraging for retailers, for whom a big weekend all but sealed a
shopping season of healthy revenue gains.
6 banks repay bailouts
worth $2.66 billion
WASHINGTON (AP) -- Six
banks have repaid government bailouts worth a combined $2.66 billion, the
Treasury department said Wednesday.
The banks are returning
taxpayer money that they received in the aftermath of the 2008 financial
crisis.
Huntington Bancshares,
First Horizon National Corp., Wintrust Financial Corp., Susquehanna Bancshares
Inc., Heritage Financial Corp. and The Bank of Kentucky Financial Corp. all
paid back the money they owed.
Greek PM: country not
heading for bankruptcy
ATHENS, Greece (AP) --
Greece's prime minister insists the country is not heading for default, despite
a continued increase in the national debt and renewed warnings from ratings
agencies.
George Papandreou, speaking
before a crucial budget vote, insisted his Socialist government's drastic
austerity measures would stabilize public finances -- helped by an
international bailout loan package worth euro110 billion ($144 billion).
Obama pledges economic
focus during next 2 years
WASHINGTON (AP) --
President Barack Obama says the economy will be his "singular focus"
over the next two years.
He says the nation is past
the "crisis point" in the economy, and that he'll now be working to
bring down the jobless rate and equip the nation to compete with the rest of
the world.
Japan exports post better
growth in November
TOKYO (AP) -- Japan's
export growth improved for the first time in nine months in November, a
possible sign that global demand is turning up again.
Exports from the world's
third-largest economy rose 9.1 percent from a year earlier, the government said
Wednesday.
While exports have expanded
throughout the year, the rate of growth has steadily fallen as overseas demand
cooled and the yen rose to 15-year highs. In February, exports jumped more than
45 percent. By October, that had slid to less than 8 percent.
The slowdown triggered
widespread concern about the fate of Japan's recovery, which has depended
heavily on exports.
By The Associated Press
The Dow Jones industrial
average rose 26.33 points, or 0.2 percent, to close at 11,559.49. The S&P
500 index rose 4.23, or 0.3 percent, to 1,258.84. Both indexes closed at their
highest levels since July 2008.
The Nasdaq composite index
gained 4, or 0.2 percent, to 2,671.48. It was the highest close for the Nasdaq
since Dec. 28, 2007.
Benchmark oil rose 66 cents
to settle at $90.48 on the New York Mercantile Exchange. In other trading on
the Nymex, heating oil added 1.21 cents to settle at $2.5285 a gallon, gasoline
gained 2.60 cents to settle at $2.4245 a gallon and natural gas picked up 9.3
cents to settle at $4.152 per 1,000 cubic feet.
In London, Brent crude rose
45 cents to settle at $93.65 on the ICE Futures exchange.