US Jobs Data Reflects Global Woes
NEW YORK: Higher than expected US unemployment claims and mixed news on global banks yesterday suggested the global recession was far from over despite a survey that found euro zone businesses cautiously optimistic about next year.
In the US, initial claims for state unemployment insurance benefits increased to a seasonally adjusted 640,000 in the week ended on April 18 from a revised 613,000 the prior week, the Labour Department said. Analysts had forecast 635,000 new claims.
The number of people who remained on unemployment benefits posted a new record high.
Another dose of negative news came as the pace of sales of existing homes in the US fell three per cent last month to a much lower-than-expected annual rate of 4.57 million units, the National Association of Realtors said.
Economists had forecast home resales to slip to a 4.70m unit pace from a revised 4.71m for February, which was initially reported as 4.72m.
Despite the negative data, chairman of the Federal Deposit Insurance Corporation Sheila Bair said that banks and the US housing market are past the crisis stage and are now on a path to recovery.
Credit Suisse smashed first quarter profit forecasts and Britain's Barclays said it intends to resume dividend payments as pockets of recovery emerge in the banking sector.
Credit Suisse's profit, which doubled expectations, follows forecast-beating results from US banks Goldman Sachs and JPMorgan Chase this week.
Barclays said its first quarter was well ahead of last year, it made good profits and plans to resume dividends in the second half.
Morgan Stanley posted its second straight quarterly loss and Switzerland's biggest bank UBS is expected to report a net loss of two billion Swiss francs for its first quarter.
Britain's Lloyds Banking Group said it will slash 985 full-time and part-time jobs over the next two years, with compulsory redundancies available as a last resort.
Euro zone manufacturing and service sector companies gave significantly less downbeat reports than economists had expected. Markit's Purchasing Managers' Index showed business in the region contracted at its slowest pace in six months and there was overall optimism about conditions in 12 months' time.
In the US, initial claims for state unemployment insurance benefits increased to a seasonally adjusted 640,000 in the week ended on April 18 from a revised 613,000 the prior week, the Labour Department said. Analysts had forecast 635,000 new claims.
The number of people who remained on unemployment benefits posted a new record high.
Another dose of negative news came as the pace of sales of existing homes in the US fell three per cent last month to a much lower-than-expected annual rate of 4.57 million units, the National Association of Realtors said.
Economists had forecast home resales to slip to a 4.70m unit pace from a revised 4.71m for February, which was initially reported as 4.72m.
Despite the negative data, chairman of the Federal Deposit Insurance Corporation Sheila Bair said that banks and the US housing market are past the crisis stage and are now on a path to recovery.
Credit Suisse smashed first quarter profit forecasts and Britain's Barclays said it intends to resume dividend payments as pockets of recovery emerge in the banking sector.
Credit Suisse's profit, which doubled expectations, follows forecast-beating results from US banks Goldman Sachs and JPMorgan Chase this week.
Barclays said its first quarter was well ahead of last year, it made good profits and plans to resume dividends in the second half.
Morgan Stanley posted its second straight quarterly loss and Switzerland's biggest bank UBS is expected to report a net loss of two billion Swiss francs for its first quarter.
Britain's Lloyds Banking Group said it will slash 985 full-time and part-time jobs over the next two years, with compulsory redundancies available as a last resort.
Euro zone manufacturing and service sector companies gave significantly less downbeat reports than economists had expected. Markit's Purchasing Managers' Index showed business in the region contracted at its slowest pace in six months and there was overall optimism about conditions in 12 months' time.
quoted from: Gulf Daily News
