Economy News Headlines - Yahoo! News

IMF calls on Britain to do more for growth

Wed, 22 May 2013 11:31:35 -0400

LONDON (AP) — The International Monetary Fund has called on Britain to do more to support the economic recovery, urging the government Wednesday to speed up investment in infrastructure and come up with a plan to privatize its bailed out banks.

CA-BUSINESS Summary

Wed, 22 May 2013 11:27:13 -0400

TSX rallies to two-month high on Fed comments, led by miners TORONTO (Reuters) - Canada's main stock index rose on Wednesday to a two-month high, helped by gains across most major sectors on optimism that the U.S. Federal Reserve will keep its easy money policy in place for now. Fed Chairman Ben Bernanke said the central bank's monetary stimulus is helping the U.S. economy recover, and the central bank needs to see further signs of traction before taking its foot off the gas. ...

Global shares rise after Bernanke comments, oil lower

Wed, 22 May 2013 11:27:09 -0400

By Ryan Vlastelica NEW YORK (Reuters) - Stock markets around the world rose on Wednesday after Federal Reserve Chairman Ben Bernanke signaled that the U.S. central bank's stimulus program would remain intact. In testimony to Congress, Bernanke said the Fed's monetary policy was still providing significant benefits to the economy and that prematurely tightening it would carry substantial risks. Shares were volatile, at one point jumping 1 percent before paring those gains as Bernanke said that economic improvement would lead the Fed to consider tapering its stimulus. ...

Bernanke's Q&A testimony to congressional panel

Wed, 22 May 2013 11:25:06 -0400

WASHINGTON (Reuters) - Below are highlights of the question and answer session of Federal Reserve Chairman Ben Bernanke's testimony on the U.S. economy to the congressional Joint Economic Committee on Wednesday. BERNANKE ON BANKS THAT ARE "TOO BIG TO FAIL": "I think that many of the suggestions to break them up have either involved relatively small changes or a form of Glass Steagall. I think Glass Steagall is not the solution because as we saw in the crisis, investment banks (and) commercial banks separately got into serious trouble. ...

TSX rallies to two-month high on Fed comments, led by miners

Wed, 22 May 2013 11:12:02 -0400

By John Tilak TORONTO (Reuters) - Canada's main stock index rose on Wednesday to a two-month high, helped by gains across most major sectors on optimism that the U.S. Federal Reserve will keep its easy money policy in place for now. Fed Chairman Ben Bernanke said the central bank's monetary stimulus is helping the U.S. economy recover, and the central bank needs to see further signs of traction before taking its foot off the gas. Bernanke's testimony fueled a jump in the price of bullion, which often rises on commentary backing easy monetary policies, and lifted shares of gold companies. ...

Wall Street rises as concern eases over Fed tapering

Wed, 22 May 2013 11:11:28 -0400

By Rodrigo Campos NEW YORK (Reuters) - Stocks rose on Wednesday, giving up some gains after an initial rally, after Federal Reserve Chairman Ben Bernanke said the central bank needed to see further signs of traction in the economy before it tapered its economic stimulus efforts. The S&P 500 hit yet another record high after Bernanke's prepared speech to Congress offered no sign that he was ready to retreat from the Fed's latest round of bond buying, which cooled investor speculation that the central bank was preparing to reduce its monetary stimulus. ...

IMF urges UK to spend more to fund investment

Wed, 22 May 2013 11:11:27 -0400

By William Schomberg and David Milliken LONDON (Reuters) - Britain's government should spend more now to fund investment and steer its economy back to recovery, the International Monetary Fund said on Wednesday, a call unlikely to be heeded by Chancellor George Osborne. Economic data earlier on Wednesday highlighted the challenge facing Osborne. Retail sales slumped last month while a measure of public borrowing jumped to a record high. ...

Bernanke offers no hint of pullback in Fed stimulus

Wed, 22 May 2013 10:46:56 -0400

By Pedro da Costa and Alister Bull WASHINGTON (Reuters) - The Federal Reserve's monetary stimulus is helping the U.S. economy recover but the central bank needs to see further signs of traction before taking its foot off the gas, Fed Chairman Ben Bernanke said on Wednesday. In testimony that offered no sign that he is ready to retreat from the Fed's latest round of bond buying, Bernanke emphasized the high costs of unemployment and inflation that continues to run below the Fed's target. ...

Existing home sales highest in almost three-and-a-half years

Wed, 22 May 2013 10:44:00 -0400

By Lucia Mutikani WASHINGTON (Reuters) - Home resales rose in April to the highest level in nearly 3-1/2 years, which should support the housing sector and the overall economic recovery. The National Association of Realtors said on Wednesday existing home sales advanced 0.6 percent to an annual rate of 4.97 million units, the highest level since November 2009. The increase, however, was below expectations for a rise to a 4.99 million-unit rate last month. Compared to April last year, home resales were up 9.7 percent. ...

Stocks rise on Fed stimulus hopes, home sales

Wed, 22 May 2013 10:35:05 -0400

NEW YORK (AP) — Stocks are moving higher Wednesday morning after Federal Reserve Chairman Ben Bernanke said it was too soon for the central bank to pull back on its massive economic stimulus programs.

Bernanke's prepared testimony to Joint Economic Committee

Wed, 22 May 2013 10:20:09 -0400

WASHINGTON (Reuters) - Below is the text of Federal Reserve Chairman Ben Bernanke's prepared testimony on the U.S. economy to the congressional Joint Economic Committee on Wednesday. Chairman Brady, Vice Chair Klobuchar, and other members of the Committee, I appreciate this opportunity to discuss the economic outlook and economic policy. Current Economic Conditions Economic growth has continued at a moderate pace so far this year. Real gross domestic product (GDP) is estimated to have risen at an annual rate of 2-1/2 percent in the first quarter after increasing 1-3/4 percent during 2012. ...

Ghana central bank raises prime rate to 16 pct

Wed, 22 May 2013 09:49:23 -0400

ACCRA (Reuters) - Ghana's central bank raised its prime interest rate by one percentage point to 16 percent on Wednesday, citing potential inflation risks from a weakening cedi currency and high government spending. Central Bank Governor Henry Kofi Wampah said Wednesday's monetary policy committee also discussed risks to economic growth from lower commodity prices, weaker business and consumer confidence, tighter credit and challenges in the fledgling energy sector. ...

Staples results miss estimates on overseas weakness

Wed, 22 May 2013 08:29:53 -0400

By Dhanya Skariachan (Reuters) - Staples Inc missed analyst estimates for profit and sales in the first quarter, hurt by a stronger dollar and weak sales in Europe and Australia. The lackluster numbers from the largest U.S. office supply chain came after rivals Office Depot Inc and OfficeMax Inc also reported weaker-than-expected results. Office supply retailers, often seen as a barometer of economic health, have suffered as demand for their products fell after the recent U.S. recession and during the economic crisis in Europe. They also face strong competition from Amazon. ...

Oil stays near $96 before crude stocks report, Fed

Wed, 22 May 2013 08:15:29 -0400

The price of oil was little changed above $96 a barrel Wednesday as investors waited confirmation of a rise in U.S. crude stocks and the Federal Reserve's latest views on the U.S. economy.

Highlights - IMF urges Britain to do more to boost growth

Wed, 22 May 2013 07:23:22 -0400

LONDON (Reuters) - The International Monetary Fund called on Britain's government on Wednesday to do more to speed up slow economic recovery, hinting that the country might be able to afford to borrow more to fund investment. Following are the highlights of remarks made at a press conference by IMF First Deputy Managing Director David Lipton and UK Mission Chief Krishna Srinivasan. LIPTON ON FISCAL SUPPORT "We recognise that higher fiscal support for the economy is not a straightforward choice as the deficit is still high. ...

Too soon to dial back Fed stimulus: Dudley

Wed, 22 May 2013 07:12:17 -0400

(Reuters) - It is too soon to determine whether to dial down the Federal Reserve's massive bond-buying program, and the economic picture may not be clear enough to make that decision for another three or four months, an influential U.S. central bank official said. New York Fed President William Dudley, a close ally of Chairman Ben Bernanke, said on Bloomberg TV that it was possible to taper down the $85 billion in monthly asset purchases by the fall "if the economy does better and if the labor market continues to improve" in the face of tighter fiscal policies. ...

IMF softens views on UK government's policies

Wed, 22 May 2013 07:04:12 -0400

LONDON (AP) — The International Monetary Fund has softened its assessment of the British government's economic policies, saying in a report Wednesday that it did well to ease its pace of austerity cuts, but stressing more was needed to support the recovery.

Bank of Japan vows market steps to curb bond turbulence

Wed, 22 May 2013 05:55:23 -0400

By Stanley White TOKYO (Reuters) - The Bank of Japan vowed on Wednesday to take necessary steps to reduce volatility in bond markets that has threatened to jeopardize the government's fight to end deflation and revive growth. The central bank upgraded its assessment of the economy for a fifth straight month, saying it "has started picking up," as Prime Minister Shinzo Abe's policy prescription of aggressive fiscal and monetary stimulus has boosted sentiment and a weaker yen has halted a decline in exports. ...

Impoverished Malawi sells presidential jet for $15 mln

Wed, 22 May 2013 05:54:22 -0400

LILONGWE (Reuters) - Malawi's luxury presidential jet, bought by late leader Bingu wa Mutharika, has been sold for $15 million to raise cash for the impoverished African country, a government official said on Wednesday. Mutharika, who left the economy on the brink of collapse after he picked a fight with donors whose support accounted for almost 40 percent of the budget, bought the jet for $22 million in 2009. He said the plane matched his status and was cheaper than flying commercially. ...

Oil below $96 before crude stocks report, Fed

Wed, 22 May 2013 05:43:02 -0400

BANGKOK (AP) — The price of oil fell Wednesday as investors waited for a report on U.S. crude stocks and the Federal Reserve's latest views on the U.S. economy.

Impoverished Malawi sells presidential jet for $15 million

Wed, 22 May 2013 05:42:36 -0400

Bank of England remains divided on stimulus

Wed, 22 May 2013 05:40:36 -0400

LONDON (AP) — The Bank of England's policymakers remain divided on whether to provide more stimulus to the flat-lining economy, according to the minutes of their meeting in May.

Plunge in retail sales points to fragile economy

Wed, 22 May 2013 05:38:15 -0400

By Olesya Dmitracova and Christina Fincher LONDON (Reuters) - British retail sales dropped at their sharpest pace in a year last month, a reminder of weakness in the country's economy after some recent signs of recovery. Sales of food plunged 4.1 percent from March, the worst showing in almost two years. As the government prepared to face a call from the International Monetary Fund to do more to help growth, official data also underscored the size of the budget deficit, which hit a record high on one measure last month. Retail sales volumes including automotive fuel fell 1. ...

World stocks mixed ahead of Fed chief testimony

Wed, 22 May 2013 05:34:25 -0400

BANGKOK (AP) — World stock markets were mixed Wednesday, hours before Federal Reserve chairman Ben Bernanke is to deliver remarks before Congress on the state of the U.S. economy.

Wal-Mart's S.Africa unit Massmart cautions on soft sales growth

Wed, 22 May 2013 05:23:48 -0400

JOHANNESBURG (Reuters) - South Africa's Massmart Holdings said on Wednesday it expects lacklustre sales growth this year, as the unit of Wal-Mart Stores Inc battles with weak consumer demand in Africa's top economy. Massmart, majority owned by the world's largest retailer, said comparable store sales increased by 5.6 percent for the first 21 weeks of its financial year. "The decline in comparable sales growth has been evident in all product categories and across all South African geographies," the company said, adding it expected growth to "remain soft" for the remainder of the year. ...