News 20091008

News Summary - 2009/10/08

U.S. Initial Jobless Claims Decrease to 10-Month Low (Bloomberg, 2009/10/08)

• The number of Americans filing first- time claims for unemployment benefits fell last week to the lowest since January, a sign the labor market is deteriorating more slowly as the economy emerges from the recession.


• Applications fell by 33,000 to 521,000 , lower than forecast, in the week ended Oct. 3, from a revised 554,000 the week before.


• The report showed the four-week moving average of initial applications, a less volatile measure, fell to 539,750 last week from 548,750 .


• 27 states and territories reported a decrease in claims, while 26 reported an increase . These data are reported with a one-week lag.


• The Labor Department said last week that employers cut 263,000 jobs in September after a 201,000 drop in August, while unemployment climbed to 9.8 percent, the highest level since 1983. The U.S. has lost 7.2 million jobs since the recession began in December 2007 .

Fannie and Freddie Continue to Struggle, Lawmakers Told (NewYorkTime, 2009/10/08)

• In the year since the government stepped in to rescue the collapsing mortgage giants Fannie Mae and Freddie Mac, the agencies have taken $96 billion from the Treasury, and may still need more.
  
  
  That was the somber assessment delivered Thursday by the federal agency charged with overseeing the government-controlled Fannie and Freddie, which have lost a combined $165 billion since July 2007 as their bets on the housing market went bad.


• "The short-term outlook for the enterprises remains troubled," said Edward J. DeMarco, acting director of the Federal Housing Finance Agency, in testimony before the Senate Banking Committee.


• Now, as housing prices struggle higher and an $8,000 tax credit has enticed many first-time home buyers into the market, Fannie and Freddie are limping along. The Federal Reserve is buying more than $1 trillion in mortgage-backed securities in an effort to loosen credit and restart the mortgage-financing markets.


• Their books are still bleeding red as foreclosures rise and homeowners - even the highest-quality borrowers - fall behind on their mortgage payments. Several crucial positions remain vacant, and Mr. DeMarco said the agencies are worried about losing workers because of the uncertainties surrounding their fate.


• Right now, 3.1 percent of Freddie Mac loans are seriously delinquent, and Fannie's seriously delinquency rates is an even higher 4.2 percent, Mr. DeMarco testified. And as unemployment nears 10 percent and homeowners struggle to persuade lenders to refinance their mortgages, delinquency rates are rising.


• Fannie and Freddie now manage a stable of nearly 100,000 foreclosed properties, whose numbers are almost certain to grow.

PepsiCo Profit Rises as International Sales Gain, Costs Decline (Bloomberg, 2009/10/08)

• PepsiCo Inc., the world's largest snack maker, said third-quarter profit rose 8.9 percent on higher international sales and lower production and administrative expenses.


• Net income increased to $1.72 billion, or $1.09 a share, from $1.58 billion, or 99 cents, a year earlier, exceeding the $1.03 average of 10 analysts' estimates compiled by Bloomberg.


• PepsiCo's food sales overseas and in North America helped counter flagging beverage sales in the U.S. as consumers drank more tap water to save money.


• PepsiCo, also the world's second-largest soft-drink maker, declined $1.03, or 1.7 percent, to $60.14 at 10:12 a.m. in New York Stock Exchange composite trading. The stock had climbed 12 percent this year before today, compared with a 21 percent advance for Coca-Cola Co., the biggest soda-maker.


• PepsiCo International posted a 13 percent increase in revenue, helped by acquisitions in Europe.