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New York, NY, United States (AHN) – One thing traders know for sure about the markets is to expect the unexpected.

So when the European Central Bank announced an unexpected rate cut Thursday, traders and investors were ready and reacted by pushing stocks sharply higher.

Just after the opening bell on Wall Street, the Dow Jones Industrial Average jumped 140 points, the Standard and Poor’s 500 Index rose 11 points, and the technology oriented NASDAQ climbed 18 points.

The European Central Bank cut interest rates by a quarter percentage point, helping markets both overseas and in the U.S. Also giving stocks a lift was expectations that the Greek referendum on the eurozone bailout would be abandoned.

Markets were thrown into turmoil Monday after a referendum proposal by Greece’s Prime Minister George Papandreou horrified the country’s international partners and creditors. It triggered market worries that Greece may default on its debts and exit the eurozone.

Giving U.S. stocks an added boost Thursday morning was better than expected jobs data that showed a modest decline in new claims for unemployment. Initial jobless claims fell by 9,000 to a seasonally adjusted 397,000 in the week ended Oct 29, the Labor Department reported.

Gold rallied to $30 to $1,760 a troy ounce and oil was up $1.23 to $93.75 a barrel.

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New York, NY, United States (AHN) – From 2000 to 2010, the median income in the United States fell 7 percent after adjusting for inflation, the U.S. Census Bureau reported.

The decline marks the worst 10-year performance on record, dating back to 1967. And what’s worse is that according to economists in the latest Wall Street Journal forecasting survey, income will not catch up before 2021.

Census Bureau data also revealed that a college degree doesn’t hold the clout and earnings power it once had. Only advanced degree holders managed to eck out record earnings increases over the past decade.

High unemployment and sluggish economic growth are both having an impact on American wages. Improvement looks a way off.

According to forecasts, the jobless rate, currently at 9.1 percent is only expected to decline to 8.2 percent by the end of 2013, a decline of less than one percentage point over more than two years.

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Washington, DC, United States (AHN) – United States industry leaders have welcomed words of encouragement from Republican congressional leaders that have given new hope for implementation of proposed U.S. free trade agreements (FTAs) with Korea, Colombia and Panama.

Applauding the submission of the pending trio agreements by President Barack Obama to Congress for a vote, U.S. Chamber of Commerce President and CEO Thomas Donohue said, “America is finally getting back in the game,” adding, “these agreements are about creating jobs and ensuring a level playing field for trade.”

After the President forwarded the proposed pacts Monday night, Senate Republican leader Mitch McConnell said, “Submission of these long-delayed deals is welcome news to those Americans looking for work and to job creators who have waited too long for fair access to these foreign markets.”

Announcing his support, McConnell said, “I have long supported these three deals, which were originally negotiated during the last administration, and look forward to passing them through the Senate in short order.”

House Speaker Republican Rep. John Boehner also called the trade pacts top priority for the House. “We will quickly begin the required process to consider these bills and intend to vote on them consecutively,” he assured.

With the top Republicans throwing their support behind the trade pacts, U.S. workers can heave a sigh of relief that they will compete on equal terms in global markets as Donohue noted, “America’s long timeout on trade has been creating jobs — in other countries.”

Citing a U.S. Chamber study warning that delays on the pending trade agreements have put 380,000 American jobs at risk, Donohue said, “While other nations clinch their own trade deals, American workers have been left to compete with one hand tied behind their backs.”

The European Union, the biggest global trade bloc across the Atlantic, implemented its FTA with Korea on July 1 while Canada has had its FTA with Colombia running since Aug.15.

According to the U.S. Chamber of Commerce, with the implementation of the EU-Korea FTA, Korea eliminated tariffs on more than 90 percent of EU goods, leading to increased sales and market share for European companies while the U.S.’s market share has declined.

The delay in approving the trade pact with Colombia accounted for U.S. farmers losing more than $1 billion in sales, the Chamber claimed.

With U.S. unemployment hovering above 9 percent, Obama called for rapid approval of the pacts. In a statement, the President said, “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America.”

With the passage of the three trade pacts, there would be immediate elimination of tariffs on most U.S. exports to the three countries. Colombia currently collects $100 in tariffs on U.S. exports for every $1 the United States levies on Colombian goods. A similar lopsidedness holds back U.S. exports to South Korea and Panama, according to the Chamber data.

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Los Angeles, CA, United States (AHN) – Thousands of employees at southern California’s three largest grocery chains were set to begin voting Friday on a contract proposal that union officials said protects workers’ healthcare.

The United Food and Commercial Workers did not release details of the agreement but said the final proposal from Albertsons, Ralphs and Vons was a “win-win” for both employees and the companies.

Albertsons, Ralphs and Vons, which are owned by SuperValu, Kroger and Safeway respectively, said the settlement will continue to provide workers with “quality, affordable healthcare — while allowing us to be competitive in the marketplace.”

Fifty-percent plus one of the union’s 62,000 members must vote in favor of the tentative agreement for ratification.

The tentative agreement was reached after a 72-hour notice of contract cancelation from the union ended early Monday morning.

The notice of cancelation is a mandatory last step before a work stoppage, something both workers and the supermarket chains badly wanted to avoid due to a 2003 strike that lasted months and cost companies $2 billion.

Unemployment in California has also risen to 12 percent, the second-highest in the nation. Nonetheless, 90 percent of union members voted last month to authorize the union to call a strike if necessary. The vote prompted the grocery chains to agree to non-stop negotiations and a federal mediator to preside over the talks.

The labor dispute began eight months ago, and a contract that expired in March was repeatedly extended during collective bargaining.

According to the union, the chains refused to “adequately fund” their employee healthcare plan despite paying some of the lowest contributions in the past decade.

Albertsons, Ralphs and Vons have said workers need to share the rising costs of healthcare.

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Washington, DC, United States (AHN) – The Obama administration on Wednesday announced ambitious programs to cut government-wide wasteful spending under a plan it is calling the “Campaign to Cut Waste,” an effort led by Vice President Joe Biden.

With Biden chairing a full cabinet meeting to discuss waste reduction at federal agencies, Health and Human Services (HHS) Secretary Kathleen Sebelius announced the Medicaid Recovery Audit Contractor Program, a waste-cutting program created by the Affordable Care Act.

Addressing a background conference call with journalists, senior administration officials said the HHS program would save $2.1 billion over the next five years, of which $900 million would be returned to states.

Sebelius in a statement said, “We simply can’t afford to see even one penny of our health care dollars wasted and expanding this program will help us reach that goal.”

A White House communique noted that the vice president unveiled “new efforts to track state progress in reducing improper unemployment Insurance payments, and directed each Cabinet secretary to undertake a waste and efficiency review that will target unnecessary, wasteful, and inefficient federal spending.”

“If we’re going to spur jobs and economic growth and restore long-term fiscal solvency, we need to make sure hard-earned tax dollars don’t go to waste,” said Biden.

In addition, the Labor Department would be intensifying efforts with states to reduce improper payments of unemployment insurance.

Expanding on the efforts, Labor Secretary Hilda Solis said, “These new measures, demonstrate our commitment to working closely with states to ensure the integrity of the system, turnaround underperforming programs and save taxpayer dollars.”

“The unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so,” added Solis.

Earlier during the conference call, a senior administration official noted that the Department of Homeland Security (DHS) was becoming “leaner and smarter” with identification of more than $1 billion in cost avoidances since 2009 and implementation of initiatives – from buying software licenses in bulk to using government offices for meetings instead of renting private space.

“Over the last two years, we have made an unprecedented commitment to efficiency in order to support frontline operations by building a culture of fiscal discipline and accountability throughout the department,” said DHS Secretary Janet Napolitano.

Addressing the full Cabinet for the first time on a single agenda, the Vice President asked the secretaries to report back on wasteful and inefficient agency spending on travel, auto fleets, publications, and office equipment and supplies, from cell phones to software, or in any other areas identified by agencies.

During the conference call, a senior White House official emphasized the Vice President had called on all the Secretaries to be personally involved in these reviews, and would hold Cabinet members “personally responsible” for the performance and results of the process.

The Campaign to Cut Waste was launched by President Barack Obama in June with an executive order. He asked the Vice President to take on a new role holding the Cabinet accountable for cutting waste in their agencies – part of what was termed the Administration’s ongoing effort to make government more efficient and responsive to the American people.

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New York, NY, United States (AHN) – Some 31.5 million Americans are expected to travel more than 50 miles from home over Labor Day weekend, a 2.4 percent decline from 2010, according to AAA.

High gasoline prices, high hotel room rates and high unemployment have many Americans simply say “hi” to local beaches, local parks and their own backyard.

The national average for gasoline averaged $3.62 a gallon on Wednesday, a dollar more than last year. Domestic airfares are 9 percent higher this year than in 2010, averaging $320 round-trip, according to Travelocity. AAA estimated the number of leisure travelers flying this holiday weekend will drop 1.9 percent to about 2.5 million.

Flights were stalled and canceled earlier this week due to Hurricane Irene, which caused a backlog of passengers that still need to be booked .

Travelocity also reported that some hotel and room rates have come down as the weekend approaches. Bookings show that many are reluctant to leave home, so some last minute plans are still possible as bargains become available.

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New York, NY, United States (AHN) – Steve Jobs’ resignation as Apple CEO, speculation on Federal Reserve Chairman Ben Bernanke’s upcoming economic stimulus plan and rising claims for jobless benefits has weakened the United States stock market during Thursday morning’s trade.

The Dow Jones Industrial Average fell by 54 points, or 0.5 percent, at 11,266. The S&P 500 was down by 4 points, or 0.3 percent, at 1174, while the Nasdaq was minus 17 points, or 0.7 percent, at 2451.

Apple shares dropped 4.7 percent in pre-market trading. The world’s most valuable technology company makes up 3.2 percent of the S&P 500, 9.3 percent of the Nasdaq Composite Index and 15 percent of the Nasdaq 100. Halfway through the morning, Apple shares were losing 2 percent at $368.53, while rivals Google and IBM were gaining 2 percent and 1 percent, respectively.

Chief Operating Officer Tim Cook will succeed the cancer-stricken Jobs, who will become Apple chairman.

TiVo shares were up 13.1 percent to $9.18; Applied Materials dropped 2.7 percent to $11.05; while Diageo improved 3.7 percent to $76.46.

Investors are awaiting Bernanke’s announcement on new policies to pump up the world’s largest economy. He will speak in Jackson Hole, WY, on Friday.

Also impacting the market is a Labor Department report saying that the number of people filing for unemployment benefits increased by 5,000 to 417,000 claims as of August 20. This was the first time that claims rose unexpectedly compared with last week’s 412,000. The increase downplayed forecasts of a decrease of 8,000, to 400,000 claims.

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Washington, D.C., United States (AHN) – Economists said that the chances of the U.S. entering into recession had grown higher. In a survey, the economists said the chances of a recession increased to 30 percent, which is twice as high compared to their forecast three months ago.

Even if the U.S. would avoid a recession, the economists said economic growth rate is expected to crawl at 2.5 percent, down from their April prediction of 3.1 percent. To reduce unemployment, the U.S. needs to register a minimum of 3 percent growth rate.

With these figures, they said that the joblessness rate would likely go down to a mere 8.8 percent next year from the current 9.1 percent. Their estimate is less rosy compared to their April forecast that unemployment would go down to 8.2 percent by middle of next year.

A quarter ago, prior to the U.S. credit ratings downgrade by Standard & Poor’s, economists forecast a strong recovery for the country for the last six months of 2011. They based their positive outlook on declining gasoline prices.

Outside the U.S., Morgan Stanley predicted a relatively low risk of a global recession. Jonathan Garner, chief Asian and emerging market strategist of Morgan Stanley, explained the low risk assessment to resilient commodities, central bank policies in developed nations and slowing inflation in emerging economies.

Because of the emerging markets offering better opportunities than those in developed economies, Morgan Stanley advised investors to shift their funds into developing market stocks.

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Washington, DC, United States (AHN) – The national unemployment rate for the month of July remained little unchanged at 9.1 while total nonfarm payroll employment rose by a modest 117,000, according to the monthly report by the U.S. Bureau of Labor Statistics.

Although the 117,000 jobs created during July was slightly better than anticipated, it was still not enough to keep up with growth in the number of working-age Americans, let alone make a dent in the unemployment figures. Economists say the nation must create from 120,000 to 200,000 jobs monthly to keep up with people entering the labor market for the first time.

In addition, the percentage of working-age Americans who held either a part- or full-time job continued its slide in July, falling to 63.9 percent from 64.2 percent in June. Moreover, about 8.4 million people were involuntarily employed part-time for economic reasons in July, including people whose hours have been cut back or who have been unable to find full-time work, or about the same numbers as in June.

The gain of 117,000 jobs came from openings in health care, retail trade, manufacturing and mining while federal, state and local governments continue to shed jobs.

Unemployment rates among major groups stood at:

• Adult men 9.0 percent
• Adult women 7.9 percent
• Teenagers 25.0 percent
• Whites 8.1 percent
• Blacks 15.9 percent
• Hispanics 11.3 percent

In addition, the number of people who were unemployed for less than 5 weeks dropped by 387,000 in July while the number of long-term unemployed (those jobless for 27 weeks and longer) remained little changed at 6.2 million. Some 44.4 percent of the unemployed are long-term.

The Bureau of Labor Statistics also revised some figures from earlier months. It revised the total nonfarm payroll employment for May from +25,000 to +53,000 and for June revised employment from +18,000 to +46,000.

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Dallas, TX, United States (AHN) – In the past 24 months from June 2009 to June 2011, Texas accounted for half of the 524,000 payroll gains of the U.S., data from the Federal Reserve Bank of Dallas and the Bureau of Labor Statistics said.

Payrolls in the state went up 2.9 percent since the recession ended two years ago, which is third behind North Dakota and Alaska, but far larger than the national average growth rate of 0.4 percent. Texas has an 8.2 percent unemployment rate, which is better than the national average of 9.2 percent.

Economists explained the faster pace of jobs generation in the Lone Star state to high energy prices which resulted in more oil drilling activities, growing exports and the state’s conservative banking sector which protected Texas from a major housing crash.

According to the BLS, regional and state unemployment rates hardly changed last month, with 28 states and the District of Columbia registering hikes in unemployment rate. For June, Texas logged a 32,000 increase in its payroll, which is the largest among the states.

It was followed by California (28,000), Michigan (18,000) and Minnesota (13,200).

The biggest losers were Tennessee (18,900), Missouri (15,700), Virginia (14,600) and North Carolina (9,500).

Texas’ job creation performance works in favor of Gov. Rick Perry, who has indicated he may run for the Republication nomination for the presidency. Observers said that if he aims for higher office, Perry would likely cite his record in creating jobs in the state when other states are suffering from high unemployment rates as one of his achievements.

State officials pointed out that Texas’ higher-than-expected payroll gains is because of a pro-business climate that Perry created which drew companies from other states where the cost of doing business is much higher.

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