JNO: The Globes 2013 Capital Markets Conference is bringing together some of the financial leaders in Israel from both the private and public sector to discuss Israel’s economic future. See Video
Category Archives: Economy
Herbalife shares gained more than two percent today following yesterday’s report that the company’s sales/revenue rose in the last quarter by 18% compared to the same time last year. Profit rose almost 10% compared to the same quarter last year. Both numbers were better than Wall Street’s expectations. Herbalife beat Wall Street’s expectations for 17 straight quarters! The firm’s robust earnings is good news for Carl Icahn, who owns a 15.6% stake in the company, and puts a damper on Bill Ackman’s massive short position on the stock. However a recent report says that Ackman has already gained on paper $230 million due to his short. – Market Watch/GestetnerUpdates
Through the end of November, the USA gained a net 305,000 jobs since Obama came into office. The State of Texas in the same time gained 381,700. In other words, job growth under Governor Rick Perry is the only reason why Obama through the end of November has a net jobs gain for all of America. (Job figures for states is only available now through November.)
Israel Hayom Reports: In defiance of expectations, Bank of Israel Governor Stanley Fischer decided on Monday night to lower the interest rate from the current 2 percent to 1.75% in January. The goal is to bolster economic activity and growth in the Israeli economy, which has slowed down. Over the past 15 months, the Bank of Israel has lowered the interest rate six times from its September 2011 peak of 3.25%.
January’s interest rate reduction follows a two-month moratorium during which Israel’s interest rate remained at 2%. Fischer said that in recent months the economy had displayed real signs of weakness, and the reduction was needed to give the economy a push. It would also contribute to increasing workforce participation and lowering unemployment.
In the 2008-2009 Global Competitive Index, the USA was number one! Now, in the 2012-2013, the USA is seventh! Yes, the USA was indeed seven times stronger on the world economic stage in the “Bad” Bush Economy than what we are now three years into the Obama Recovery.
A new CNN/Opinion Research poll finds optimism about how things are going in the country now at 36% — down seven points from April… In addition, the number of people who say that the economy is starting to recover has dropped five points since April, from 24% to 19% – Political Wire.
This poll is from registered voters and Obama leads it 52% to 45%.
H/T Political Wire for this one from the NYT:
“The private equity firm, co-founded and run by Mitt Romney, held a majority stake in more than 40 United States-based companies from its inception in 1984 to early 1999, when Mr. Romney left Bain to lead the Salt Lake City Olympics. Of those companies, at least seven eventually filed for bankruptcy while Bain remained involved, or shortly afterward.”
In other words, 32 or even 33 firms (at least 80%) survived a Bain takeover.
Putting aside that some numbers are twisted, let’s us remember that MA is a liberally-run Democrat strong-hold. Let us remember that the Democrat Legislature repeatedly overrode Romney vetoes from HealthCare reform to green energy and to everything else in the middle. So putting aside that the “bad Romney Economy” had a better Unemployment Rate that we will ever have under Obama, the national Democrats – when looking for bad economic numbers of MA – are essentially telling you that when Dems run things, when a GOP Governor needs to deal with a strong Dem Majority in both houses, it’s a mess all over.
NYT Writes: The bleak jobs report on Friday predictably had heads snapping toward the White House, looking to President Obama to do something. Yet his proposed remedies only underscore how much the president, just five months before he faces voters, is at the mercy of actors in Europe, China and Congress whose political interests often conflict with his own.
President Barack Obama prepared to deliver a speech on the economy Tuesday, using the backdrop of a high-technology facility in Albany created out of a partnership with private enterprise and bipartisanship. Beside him through much of the visit will be Gov. Andrew Cuomo, who made jobs and the economy part of his “new Democrat” movement in his campaign in 2010. Cuomo also shows a Democratic executive can forge a fiscally conservative agenda and work closely with Republicans, something with the president has struggled with in Washington. “This Presidential appearance proves by inference what is wrong in Washington, by showing what is right in Albany,” said Bruce Gyory, consultant to governors and a political science professor at the University at Albany. – WSJ
The state Senate approved a bipartisan jobs bill Friday evening that was designed to expand on a similar bill that was passed last year to kick-start Connecticut’s sluggish economy. Known as Senate Bill 1, the Democratic-written bill gained Republican support on a measure to help small businesses with up to 100 employees. The previous bill last fall had been targeted at companies with up to 50 employees. The vote was 32 to 2 with two Republicans voting against the measure. Senators Rob Kane of Watertown and Joseph Markley of Southington were against the bill, while Senators Kevin Witkos of Canton and Edith Prague of Columbia were absent. – CT Courant
The Federal Deposit Insurance Corporation closed five banks this weekend, bringing to 22 the total banks it closed in the first four months of 2012. For context, the FDIC closed 25 banks for all of 2008, bush’s last year in office. This time last year, the FDIC had already closed 39 banks; less than the 64 closed in the first four months of 2010, and above the 29 closed in the first four months of 2009. Only two banks were closed in the first four months of 2008, since the economy, despite the light recession and housing bust was relatively stable at the time. In total, the FDIC closed 411 (four hundred and eleven) banks in Obama’s first three-plus years in office, versus only fifty banks for all of Bush’s eight year’s in office.
As of December 2011, the latest figures available, 31 percent of the U.S. home loans that were in negative equity – in which the outstanding loan balance exceeds the value of the home – were FHA-insured mortgages, according to CoreLogic. Many borrowers, particularly since late 2010, thought they were buying at the bottom of a housing market that had already suffered steep declines, but have been caught out by a continued fall in prices in wide swaths of America. Even for loans taken out in December – less than four months ago and the last month for which data is available – nearly 44,000 borrowers, or about 7.5 percent of the total, now find themselves under water. – Reuters
IBD Reports that ”a record 5.4 million workers and their dependents have signed up to collect federal disability checks since President Obama took office, according to the latest official government data, as discouraged workers increasingly give up looking for jobs and take advantage of the federal program… As a result, by April there were 10.8 million people on disability, according to Social Security Administration data released this week.”
In other words, it doubled from 5.4 million people to 10.8 million.
Fox News asked voters as follows: “Do you believe the opponents of voter identification laws are really trying to steal elections by increasing illegal votes by non-citizens and other ineligible voters?” 50% answered yes. When asked if supporters of stricter laws want to steal the elections, only 34% answered yes. Overall, 52% Democrats, 74% Independents, and 87% Republicans agree with the statement that voter ID laws are necessary to stop illegal voting.
James Pethokoukis Writes: A Federal Reserve study from late last year looked at the behavior of recoveries from recessions across 59 advanced and emerging market economies during the last 40 years. The Fed found, to no great surprise, that recoveries “tend to be faster” after severe recessions, such as the one we just had. It’s the “rubber-band effect”: The deeper the downturn, the more robust the rebound.
For example, during the 1981-82 recession, output fell by 2.7 percent and then rose by 15.9 percent over the next 10 quarters (at an average pace of 6.0 percent). During the Great Recession, output fell even more, by 5.1 percent. But during the 10 quarters since, total economic output is up only a paltry 6.2 percent. Score one for Reaganomics.
Gross domestic product expanded at a 3 percent annual rate, the quickest pace since the second quarter of 2010, the Commerce Department said in its second estimate. That was a step up from the 2.8 percent pace it reported in January. Economists polled by Reuters had expected fourth-quarter GDP would be unrevised at a 2.8 percent pace. The economy grew at a 1.8 percent pace in the third quarter. – CNBC