U.S. jobs growth solid in July

WASHINGTON (AP) ― A sixth straight month of solid 200,000-plus job growth in July reinforced growing evidence that the U.S. economy is accelerating after five years of sluggish expansion. Employers added 209,000 jobs last month. Though that was fewer than in the previous three months, the economy has now produced an average 244,000 jobs a month since February ― the best six-month string in eight years. At the same time, most economists don’t think the pace of job growth is enough to cause the Fe

Aug. 3, 2014

Snapchat’s Facebook snub looks smart as Alibaba weighs stake

Take that, Facebook Inc. A year after rebuffing a $3 billion takeover proposal from Mark Zuckerberg, Snapchat Inc. is in talks to raise money from Alibaba Group Holding Ltd., people with knowledge of the matter said.The valuation being considered is about $10 billion, more than three times what Facebook CEO Zuckerberg was willing to pay, said the people, who asked not to be identified because the talks are private.The extra billions would make Evan Spiegel ― the 24-year-old frat boy-turned-CEO w

July 31, 2014

Fed offers dual message on health of U.S. economy

WASHINGTON (AP) ― The Federal Reserve offered a mixed message on the U.S. economy Wednesday: Growth is strengthening, and the unemployment rate is steadily falling. Yet by some measures, the job market remains subpar.A statement the Fed issued after a two-day policy meeting suggested it wants to see further improvement before it starts raising its key short-term interest rate. It offered no clearer hint of when it will raise that rate.Instead, the Fed reiterated its plan to keep short-term rates

July 31, 2014

Greenspan says stocks to see ‘significant correction’

Former Federal Reserve Chairman Alan Greenspan said equity markets will see a decline at some point after surging for the past several years. “The stock market has recovered so sharply for so long, you have to assume somewhere along the line we will get a significant correction,” Greenspan, 88, said Wednesday in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “Where that is, I do not know.”  Former Federal Reserve Chairman Alan Greenspan. (Bloomberg)While Greenspan said he d

July 31, 2014

U.S. judge slaps $1.3b fine on BOA

NEW YORK (AP) ― A federal judge imposed a $1.3 billion civil penalty against Bank of America on Wednesday for its role in selling risky mortgages to Fannie Mae and Freddie Mac that were advertised as safe investments. The fine was against Countrywide Financial, which Bank of America purchased in 2008 as the financial crisis was unfolding. It is the latest legal ruling against Wall Street. A jury found in October 2013 that BOA was liable for Countrywide’s role in selling risky loans to the govern

July 31, 2014

U.S. Fed meets amid calls for tighter policy

WASHINGTON (AFP) ― The U.S. Federal Reserve began a two-day policy meeting Tuesday under rising pressure to step off its ultra-dovish stance to address rising inflation and worries of overheated markets.So far this year the Fed has stuck to its plan: steadily reducing its bond-buying stimulus program, to wind up in October, and looking toward an initial increase in the benchmark federal funds interest rate, now at zero, in the second half of 2015.But increasingly analysts and some Fed officials

July 30, 2014

Argentina in talks as default looms

NEW YORK (AFP) ― Last-ditch talks aimed at averting Argentina’s second default in 13 years were to resume Wednesday in New York, after Tuesday’s marathon session failed to reach a deal.Buenos Aires has until the end of the day to resolve its dispute with so-called “holdout” hedge funds whose refusal to accept a write-down on debt it defaulted on in 2001 has pushed Latin America’s third-largest economy to the brink of a new default.Economy Minister Axel Kicillof threw his weight behind the talks,

July 30, 2014

Lloyds settles with U.S., U.K. over market fixing

LONDON (AP) ― Lloyds Banking Group is paying $369 million to U.S. and British authorities to settle allegations it manipulated a key global interest rate. Lloyds, one of the world’s largest banks, on Monday became the sixth financial firm sanctioned in the international rate-rigging scandal. The U.S. and British regulators said Lloyds attempted to manipulate, and in some cases succeeded, in manipulating the London interbank offered rate, known as LIBOR. The LIBOR, the rate used by banks to borro

July 29, 2014

Malaysian Airline faces cancellations after disasters

Malaysian Airline System Bhd. is facing an influx of passenger cancellations after the carrier’s second disaster in four months. Travel agents from Melbourne to Singapore, New Delhi and Malaysian Air’s home country said they’ve seen a spike in withdrawn reservations since MH17’s downing this month ― with cancellations climbing above 20 percent in some places. The Samoan women’s rugby team switched to Thai Airways International Pcl from Malaysian Air on July 27 for a flight to a world cup event i

July 29, 2014

$1.6b gain makes Zuckerberg richer than Google founders

Mark Zuckerberg is now richer than Google Inc. cofounders Sergey Brin and Larry Page. The Facebook Inc. chairman added $1.6 billion to his fortune last Friday after the world’s largest social network closed at a record. The surge elevated the 30-year-old’s net worth to $33.3 billion, moving him past Brin, 40, and Page, 41, as well as Amazon.com Inc. chief executive officer Jeff Bezos, 50, on the Bloomberg Billionaires Index. Zuckerberg is No. 16 on the ranking. The Google founders are 17th and 1

July 28, 2014

Asset bubbles could deflate global recovery

PARIS (AFP) ― In a world still struggling to shake off the worst financial crisis for a generation, many economists are worrying that new asset bubbles are already threatening to derail the tepid global recovery.Concern has been rising that investors are paying too much for securities in a search for good returns when interest rates are hovering near record lows, creating the bubble conditions for a new market crash.The Bank of International Settlements warned at the end of last month that finan

July 28, 2014