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DDI ’08
GT
California economy
1
Budget updates
DDI ’08
GT
Deficit spending
2
Budget updates
DDI ’08
GT
Dollar and oil
The euro is falling while the dollar is growing – compared to the yen.
Stanley White and Kosuke Goto [Bloomberg writer “Euro Slumps to Five-Month Low on Reduced Bets for Higher Rates”
http://www.bloomberg.com/apps/news?pid=20601087&sid=a71O39Xm_tjw&refer=home] Aug. 8
The euro slumped to a five-month low against the dollar as traders pared bets that the European Central Bank will raise interest
rates due to a slowing economy. The euro also fell to a three-week low versus Japan's currency after ECB President Jean-
Claude Trichet said economic growth will be ``particularly weak'' through the third quarter. The dollar headed for its biggest
weekly gain against the yen in almost two months as oil dropped 18 percent from a record. The Australian dollar declined for a
ninth day, the longest stretch since 1980, as futures show the central bank will cut borrowing costs this year.
The dollar is high and – oil prices dictate that the economy will not weaken
more.
Stanley White and Kosuke Goto [Bloomberg writer “Euro Slumps to Five-Month Low on Reduced Bets for Higher Rates”
http://www.bloomberg.com/apps/news?pid=20601087&sid=a71O39Xm_tjw&refer=home] Aug. 8
The dollar traded near a seven-month high against the yen as oil prices declined during the past week to trade at $119.80 a
barrel, on course for a 4.2 percent loss this week and compared with the record $147.27 set on July 11. ``Oil prices have turned
out to be much more supportive of the dollar than I expected,'' said Masanobu Ishikawa, general manager of foreign exchange
at Tokyo Forex & Ueda Harlow Ltd., Japan's largest currency broker. ``It does temporarily relieve some concern that the U.S.
economy will weaken further. This is a plus for sentiment.''
3
Budget updates
DDI ’08
GT
Unemployment
Unemployment rates are hurting the US economy – jobs account for two thirds
of the US economy
STEVENSON JACOBS [AP writer Stock futures lower on jobs report, Wal-Mart sales
http://ap.google.com/article/ALeqM5gHs5OM3gFG_DytQQZFbWfgPT08MAD92DFCAG0] 8-7-2008
Wall Street headed for a lower open Thursday after weekly unemployment claims jumped to a six-year high and Wal-Mart
Stores Inc. and other retailers reported disappointing sales, adding to fears of a slowdown in consumer spending. The Labor
Department said the number of newly laid off people seeking jobless benefits increased by a seasonally adjusted 7,000 to
455,000 last week, the highest level since late March 2002. Wall Street had expected that new claims would rise to around
430,000. The number of people continuing to collect unemployment benefits went up by 31,000 to 3.3 million for the week
ending July 26, the most recent period for which that information is available. That was the highest since early December 2003.
The data indicated that the labor market continues to weaken. In recent weeks, General Motors Corp., Weyerhaeuser Co., and
Starbucks Corp. have all announced job cuts, sending more people to the unemployment lines. Wal-Mart, the world's largest
retailer, said same-store sales, or stores open at least one year, rose 3 percent in July as consumers began using up their
government stimulus checks. Analysts had expected on average a 3.4 percent rise. Other retailers also reported sluggish sales.
The results added to the market's worries that a souring U.S. economy and rising unemployment are hurting consumer
spending, which accounts for two-thirds of the U.S. economy.