US unemployment aid applications surge

THE number of people seeking US unemployment benefits rose 68,000 last week to a seasonally adjusted 368,000, the largest increase in more than a year.

The surge in first-time applications could be a troubling sign if it lasts. But it likely reflects the difficulty adjusting for delays after the Thanksgiving holiday.

The Labor Department said on Thursday that the less volatile four-week average rose 6,000 to 328,750. That is close to pre-recession levels and generally a positive sign for job gains.

Applications had tumbled in recent weeks to nearly six-year lows, partly because of a late Thanksgiving holiday that may have distorted the government's seasonal adjustments. Economists believe this week's jump in claims was a dose of payback for those declines.

"What the seasonals give in one month they have to take back the next, hence today's number," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Applications for unemployment aid are a proxy for layoffs. A steady decline over the past year suggests that fewer Americans have lost their jobs.

Economists will track the next few weeks closely to see if that trend is reversing, or if the surge is a temporary blip caused by seasonal adjustments.

The recent drop in layoffs has coincided with a pickup in hiring. The economy has added an average of 204,000 jobs a month from August through November, up from an average of 146,000 in May through July.

Employers added 203,000 jobs last month and the unemployment rate dropped to a five-year low of 7 per cent, the government said on Friday.

Four straight months of robust hiring have raised hopes that 2014 will be the year the economy returns to normal.

As more Americans draw a pay cheque, incomes and consumer spending generally increase. About 70 per cent of economic activity comes from consumer spending.

However, the unemployment rate remains above the historic averages of 5 per cent to 6 per cent that are associated strong job markets.

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Nigella judge in Cameron rebuke

JURORS in the trial of two former personal assistants accused of defrauding Nigella Lawson and Charles Saatchi have been warned to ignore comments made by British Prime Minister David Cameron about the celebrity cook.

Judge Robin Johnson told jurors in the trial of Elisabetta and Francesca Grillo at Isleworth Crown Court in London that it was "of regret" when public figures commented about someone involved in a trial and urged them to only decide the case based on the evidence in court.

The Grillo sisters are accused of abusing their positions by spending STG685,000 ($A1.2 million) on credit cards belonging to the celebrity couple to buy designer goods and luxury holidays for themselves.

Elisabetta Grillo, referred to as Lisa, 41, and sister Francesca, 35, each deny a single count of committing fraud by using a company credit card for personal gain between January 1, 2008, and December 31 last year.

The judge told the jury of five women and seven men that he had been shown a number of press reports about comments made by Cameron about Lawson.

"They centre on the prime minister commenting about a prosecution witness, Ms Lawson, during an interview with a journalist.

"It is of regret when people in public office comment about a person who is involved in a trial which is in progress."

He said the defendants felt "aggrieved" by the comments, even though they did not specifically deal with matters in the trial, adding: "The fact they they may feel aggrieved is not without justification."

He told jurors: "You will realise that what public figures may feel about this case or a witness in this case can have no bearing on your own views."

He urged them to heed instructions given at the start of the trial.

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Fewer US homes entering foreclosure path

THE number of US homes entering the path to foreclosure or winding up repossessed by lenders has fallen to levels not seen in more than six years.

While foreclosures remain a concern in select states, the trend is the latest sign foreclosures are becoming less of a national factor on the housing recovery and more of a state and metropolitan-area concern.

Lenders initiated foreclosure action against 52,826 US homes in November, down 10 per cent from the previous month and a drop of 32 per cent from November last year, according to new data from foreclosure listing firm RealtyTrac Inc.

The last time the tally of monthly foreclosure starts was lower was in December 2005, the firm said.

Foreclosure starts increased last month on an annual basis in 15 states, including Pennsylvania, Delaware, Maryland and Oregon.

While fewer homes entered the foreclosure pipeline in November, the number of homes completing the foreclosure process also declined.

All told, lenders took back 30,461 homes last month, down 19 per cent from October and a decline of 48 per cent from November last year, RealtyTrac said.

Overall, completed foreclosures sank to the lowest level since July 2007, the firm said.

The number of homes repossessed by banks increased on an annual basis in only five states: Delaware, Maryland, Connecticut, Maine and Iowa - all states where the courts must sign off on foreclosures, a factor that typically draws out the process longer than in other states.

Some of the decline in foreclosure activity last month was due to a seasonal slowdown as the end of the year draws near. That could mean a bump in homes sold at auction or repossessed by banks early next year, said Daren Blomquist, a vice president at RealtyTrac.

"Regionally and locally, there are going to be some jumps in foreclosure numbers in 2014, but nothing we anticipate will threaten the housing recovery," Blomquist said. "It's very safe to say that the foreclosure crisis is over and behind us."

The decline in foreclosures has come about as more homeowners are keeping up with their mortgage payments. At the same time, the US housing market has emerged from a deep slump, aided by rising home prices, steady job growth and fewer troubled loans dating back to the housing-bubble days.

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US retail sales rise 0.7 per cent

US consumers ramped up spending in November on cars, appliances and furniture and made more purchases online, signalling growing confidence in the economy during the holiday shopping season.

The Commerce Department says retail sales rose 0.7 per cent, the biggest gain in five months. October's figure was also revised higher to 0.6 per cent.

Two straight months of healthy sales suggests steady hiring is encouraging Americans to spend more this holiday season, particularly on big-ticket items.

Car sales jumped 1.8 per cent and furniture purchases rose 1.2 per cent.

Excluding the volatile categories of cars, petrol and building materials, sales rose a solid 0.5 per cent in November.

Americans also are shifting more spending to online and catalog retailers.

Online and catalog sales rose 2.2 per cent last month, the most in nearly 18 months.

08.17 | 0 komentar | Read More

US retail sales rise 0.7 per cent

US consumers ramped up spending in November on cars, appliances and furniture and made more purchases online, signalling growing confidence in the economy during the holiday shopping season.

The Commerce Department says retail sales rose 0.7 per cent, the biggest gain in five months. October's figure was also revised higher to 0.6 per cent.

Two straight months of healthy sales suggests steady hiring is encouraging Americans to spend more this holiday season, particularly on big-ticket items.

Car sales jumped 1.8 per cent and furniture purchases rose 1.2 per cent.

Excluding the volatile categories of cars, petrol and building materials, sales rose a solid 0.5 per cent in November.

Americans also are shifting more spending to online and catalog retailers.

Online and catalog sales rose 2.2 per cent last month, the most in nearly 18 months.

08.17 | 0 komentar | Read More

US unemployment aid applications surge

THE number of people seeking US unemployment benefits rose 68,000 last week to a seasonally adjusted 368,000, the largest increase in more than a year.

The surge in first-time applications could be a troubling sign if it lasts. But it likely reflects the difficulty adjusting for delays after the Thanksgiving holiday.

The Labor Department said on Thursday that the less volatile four-week average rose 6,000 to 328,750. That is close to pre-recession levels and generally a positive sign for job gains.

Applications had tumbled in recent weeks to nearly six-year lows, partly because of a late Thanksgiving holiday that may have distorted the government's seasonal adjustments. Economists believe this week's jump in claims was a dose of payback for those declines.

"What the seasonals give in one month they have to take back the next, hence today's number," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Applications for unemployment aid are a proxy for layoffs. A steady decline over the past year suggests that fewer Americans have lost their jobs.

Economists will track the next few weeks closely to see if that trend is reversing, or if the surge is a temporary blip caused by seasonal adjustments.

The recent drop in layoffs has coincided with a pickup in hiring. The economy has added an average of 204,000 jobs a month from August through November, up from an average of 146,000 in May through July.

Employers added 203,000 jobs last month and the unemployment rate dropped to a five-year low of 7 per cent, the government said on Friday.

Four straight months of robust hiring have raised hopes that 2014 will be the year the economy returns to normal.

As more Americans draw a pay cheque, incomes and consumer spending generally increase. About 70 per cent of economic activity comes from consumer spending.

However, the unemployment rate remains above the historic averages of 5 per cent to 6 per cent that are associated strong job markets.

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Cate Blanchett nominated for Golden Globe

CATE Blanchett had better find a gown to wear to the Oscars, although Hugh Jackman, Geoffrey Rush and Chris Hemsworth likely won't have to worry about tuxedos.

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Shark blamed for NSW surfer's injuries

A SURFER who showed up at a NSW mid-north coast hospital with cuts to his hand and leg has received a surprising diagnosis: shark attack.

Police say the 26-year-old was in the water at Port Macquarie about 6.15pm (AEDT) on Thursday, when he felt something hit his right hand.

When the man discovered cuts to his right hand and blood on his leg he took himself to Port Macquarie Hospital, where doctors told him his wounds were consistent with a shark bite.

"He did not see a shark and was unaware at the time that he could have been bitten by one," NSW police said in a statement.

The man was treated for puncture wounds to his hand and a laceration to his leg, but was expected to be released.

Police said the northern end of Shelley Beach, where the suspected attack happened, was isolated and not widely used.

Officers could not find anyone else in the water when they visited the beach.

An expert is now set to visit Port Macquarie to try to identify the species of shark involved.

The suspected attack came just five days after Port Macquarie teenager Zac Young was killed by a shark while body-boarding further up the NSW coast.

The 19-year-old was in the ocean with three friends at Riecks Point, near Coffs Harbour, on Saturday when a shark bit off his legs.

He died shortly after his friends managed to drag him to shore.

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Manufacturing decline is limited: report

AUSTRALIA'S manufacturing sector has faced difficult economic conditions over the past decade but new research has pin-pointed a sharp downturn in overall productivity to just three key areas.

A staff working paper by the Productivity Commission found that while investment in manufacturing has risen over the long term, hours worked and employment in the sector have declined.

The report found no "overarching systemic reason" for the decline in manufacturing's rate of multi-factor productivity growth.

It declined by 1.4 per cent a year between 2003/04 and 2007/08 compared with 1.3 per cent productivity growth a year between 1998/99 and 2003/04.

"However, three of its sub-sectors - petroleum and chemicals, food and beverages, and metal products - collectively accounted for two-thirds of this decline between cycles," the report released on Friday shows.

One influence has been from the appreciation of the Australian dollar and changing competitive conditions.

It also noted that there has been a lag between new capital investment in these sub-sectors and the output from that investment.

In particular, additional investment in petroleum refining to meet new environmental standards, while improving the quality of outcomes, did not raise output.

Changes in consumer preferences have also had an impact on productivity, such as significant growth in smaller-scale bakeries that use more labour-intensive processes.

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Trade not aid key to Asian support: Abbott

TRADE, not aid, should be Australia's policy when it comes to assisting Asian neighbours, Prime Minister Tony Abbott said, as the opposition called for an inquiry into his government's $4.5 billion aid program cuts.

Speaking in Melbourne on Thursday night, Mr Abbott said foreign aid should be better targeted and Australia should help developing nations stand on their own feet.

He said the growing economic strength of the region needed to be matched in Australia by strengthening of the economy.

Australia's international clout doesn't rest on the size of its aid budget, but on the size of its economy, Mr Abbott said.

"As far as possible, Australian aid should be designed to enable other countries to stand on their own two feet as quickly as possible," Mr Abbott said.

"Trade, rather than aid, is the best way to sustainably boost poor countries' prosperity."

He said reducing the rate of increase in the aid budget would enable the government to ensure it was being targeted effectively.

His comments followed an announcement by Labor senator Ursula Stephens the opposition would be referring plans for $4.5 billion of cuts to Australia's international aid program to a Senate Committee for inquiry.

The matter will be moved in the Senate on Monday.

Deputy Opposition Leader Tanya Plibersek said Australians deserved to know why the government had decided to slash aid funding and where the cuts would be made.

"We know Australians support a strong international aid program. Australia is a rich, generous country that can afford to lend a helping hand," Ms Plibersek said.

Mr Abbott also spoke about the importance of fostering strong relationships with the booming economies of China, India and Japan and in particular, Indonesia, which he said was Australia's, "important overall relationship."

He said the media made the relationship with Indonesia difficult.

"Being Indonesia's "trusted partner" is easier said than done, given the media's tendency to play to stereotypes and past disagreements over East Timor," Mr Abbott said.

On Thursday, the government agreed to a six-point plan aimed at repairing relations with Indonesia two weeks after the suspension in co-operation on November 26.

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