Showing posts with label percent. Show all posts
Showing posts with label percent. Show all posts

2011/10/22

AP-GfK Poll: 37 percent of public back protests (AP)

WASHINGTON – More than one-third of the country supports the Wall Street protests, and even more — 58 percent — say they are furious about America's politics.

The number of angry people is growing as deep reservoirs of resentment grip the country, according to the latest Associated Press-GfK poll.

Some 37 percent of people back the protests that have spread from New York to cities across the country and abroad, one of the first snapshots of how the public views the "Occupy Wall Street" movement. A majority of those protest supporters are Democrats, but the anger about politics in general is much more widespread, the poll indicates.

"They've got reasons to be upset, they've got reasons to protest, but they're protesting against the wrong people," Jan Jarrell, 54, a retired school custodian from Leesville, S.C., says of the New York demonstrators. "They need to go to Washington, to Congress and the White House. They're the ones coming up with all the rules."

"Occupy Wall Street" has been called the liberal counterpoint to conservative-libertarian tea party, which injected a huge dose of enthusiasm into the Republican Party and helped it win the House and make gains in the Senate last fall.

While the troubled economy is at the root of anger at both government and business leaders, there's a key difference. Tea party activists generally argue that government is the problem, and they advocate for free markets. The Wall Street protesters generally say that government can provide some solutions and the free market has run amok.

Of the Americans who support the Wall Street protests, 64 percent in the poll are Democrats, while 22 percent are independents and just 14 percent are Republicans. The protest backers are more likely to approve of President Barack Obama and more likely to disapprove of Congress than are people who don't support the demonstrations.

More generally, many more Americans — 58 percent — say they are furious about the country's politics than did in January, when 49 percent said they felt that way. What's more, nearly nine in 10 say they are frustrated with politics and nearly the same say they are disappointed, findings that suggest people are deeply resentful of the political bickering over such basic government responsibilities as passing a federal budget and raising the nation's debt limit.

This wrath spreads across political lines, with about six in 10 Democrats, Republicans and independents saying politics makes them angry.

Fewer are hopeful about politics than when the year began, 47 percent down from 60 percent. Only 17 percent of respondents say they feel proud or inspired.

Since January, Congress and the White House have engaged in repeated standoffs over federal spending and the size of government as the economy has struggled to recover from recession.

In the past month, fury over all that has spilled into New York's financial district, and groups of mostly young people have camped out in a park.

The protesters cite the economic crisis as a key reason for their unhappiness. The unemployment rate hovers around 9 percent nationally. Many homeowners owe more than their homes are worth. Foreclosures are rampant. And many young people — the key demographic of the protesters — can't find jobs or live on their own.

"They all have college educations, and some have advanced degrees, and they're unemployed?" says Alice Dunlap, 63, a retired speech language pathologist from Alexandria, Va. She supports the protests because, she says, anger lingers at those who profited while the nation's economy tanked.

"We all got ripped off by Wall Street, and we continue to be ripped off by Wall Street," she says. "You can look at my portfolio, if you like."

The poll found that most protest supporters do not blame Obama for the economic crisis. Sixty-eight percent say former President George W. Bush deserves "almost all" or "a lot but not all" of the blame. Just 15 percent say Obama deserves that much blame. Nearly six in 10 protest supporters blame Republicans in Congress for the nation's economic problems, and 21 percent blame congressional Democrats.

Six in 10 protest supporters trust Democrats more than Republicans to create jobs.

Most people who support the protests — like most people who don't — actually report good financial situations in their own households.

Still, protest supporters express more intense concern than non-supporters about unemployment at the moment and rising consumer prices in the coming year.

Norton Shores, Mich., retiree Patsy Ellerbroek, 65, is among those who have little empathy for the Wall Street protesters.

"Everybody ought to own their own business before they start complaining," Ellerbroek says.

Eight years ago, she and her husband sold "The Fun Spot," a roller rink they owned for three decades. Now she's a member of neither political party, and she gets frustrated when she sees politicians like the Republican candidates for president being disrespectful. Or Obama "flying around the county on our taxpayer dollars, politicking."

"With all the politicians, it's like, the heck with the people who put them there. We need another Mr. Smith goes to Washington," she said.

The poll was conducted Oct. 13-17, 2011, by GfK Roper Public Affairs and Corporate Communications. It involved landline and cellphone interviews with 1,000 adults and had a margin of sampling error of plus or minus 4 percentage points. The poll included 384 respondents who said they were supporters of the Wall Street protests. Among that group, the error margin was 6.5 points.

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Online:

Poll results: http://www.ap-gfkpoll.com


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Greece may need 60 percent bond writedown; EU at odds (Reuters)

BRUSSELS (Reuters) – Private holders of Greek debt may need to accept losses of up to 60 percent on their investments if Greece's debt mountain is to be made more sustainable in the long-term, a downbeat analysis by the EU and IMF showed on Friday.

Euro zone finance ministers threw Greece a lifeline on Friday by agreeing to approve an 8 billion euro loan tranche that Athens needs next month to pay its bills.

But the European Commission, European Central Bank and International Monetary Fund -- the so-called troika -- issued a gloomy report on Greece's ability to pay its debts.

Among three scenarios it examined, the only one that would reduce Greece's debt pile to 110 percent of GDP -- a level still regarded as high -- was one in which private bond holders agreed to a 60 percent haircut.

"To reduce debt below 110 percent of GDP by 2020 would require a face value reduction of at least 60 percent and/or more concessional official sector financing terms," the debt sustainability report, obtained by Reuters, showed.

A footnote explained that the ECB disagreed with including the scenarios in the report, concerned that private sector lenders would refuse to agree to such a steep writedown voluntarily, effectively leading to a fullscale Greek default.

The report also said Greece's debt pile could peak at 186 percent of GDP, from around 160 percent currently.

The euro zone finance ministers said the 8 billion euro tranche, the sixth installment of 110 billion euros of EU/IMF loans agreed last year, would be paid in the first half of November, pending the IMF's sign-off. That should allow Greece to avoid defaulting on its debt this year.

Meeting ahead of a summit of EU leaders on Sunday, finance ministers also indicated that deep divisions between France and Germany over how best to scale up the euro zone's bailout facility to give it more firepower may have been overcome.

France believes the most efficient leverage method would be to turn the European Financial Stability Facility (EFSF) into a bank, allowing it to access ECB liquidity. Germany and others opposed this, and France's finance minister said he was not going to be unnecessarily confrontational over the issue.

"We will not make it a point for definitive confrontation," he told reporters as he left the meeting late on Friday. "What matters is what will work. And what will work is something that is dissuasive and an effective firewall."

Austria's finance minister, Maria Fekter, who arrived at the meeting saying there were seven options on the table for leveraging the EFSF, left the meeting saying there were now two, indicating that some progress had been made.

If France does ultimately drop its insistence on the EFSF being turned into a bank, then the most likely method for scaling up the EFSF is expected to be some form of insurance program aimed at restoring confidence in euro zone debt.

A group of 10 major financial companies, including banks, insurers and global bond fund giant PIMCO, wrote to EFSF chief Klaus Regling on Friday saying partial insurance of sovereign bonds could be a viable means to secure private funding for euro zone states "if implemented in size."

"The ability of the EFSF to potentially write significant amounts of such 'insurance' without any further increase to the existing commitments should be an important element in any comprehensive plan by the European government to address the crisis," the letter, seen by Reuters, said.

By guaranteeing only a portion, perhaps a third or a fifth, of each debt issue, the available EFSF funds could stretch 3-5 times further, increasing it to around 1 trillion euros.

However, analysts are concerned that such a plan could create a two-tier bond market, with bonds that have guarantees trading at a premium to the secondary market -- an outcome that could exacerbate market turmoil. Some analysts believe choosing such an option would be the worst outcome of the summit.

BLIZZARD OF MEETINGS

In a related set of discussions, EU finance ministers will on Saturday meet to discuss the requirements for recapitalizing the European banking system, with the aim of making it more resilient to the possibility of a default in Greece and any wider contagion across the continent.

EU leaders will then meet on Sunday to see if they can agree a comprehensive plan to resolve the two-year-old debt crisis, with another summit scheduled for Wednesday, October 26, because no breakthrough is expected on Sunday.

German Chancellor Angela Merkel, French President Nicolas Sarkozy and Europe's top two officials, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, will also meet late on Saturday to try to break the deadlock before Sunday's summit.

Sarkozy appeared isolated after an acrimonious meeting in Frankfurt on Wednesday, when he pushed the idea of turning the EFSF, a 440-billion-euro ($600 billion) fund, into a bank.

Germany, the ECB and the European Commission all argued that the move would violate an EU treaty prohibition on monetary financing of governments.

"The path is closed for using the ECB to ease liquidity problems," Merkel told conservative lawmakers in Berlin, according to participants at the private meeting.

The outcome of the Sunday and Wednesday summits will determine whether investor confidence in the euro area can be restored. It will also influence whether an expected Greek debt write-down triggers a chain reaction of financial turmoil across Europe, hitting French, German and other banks -- and potentially pushing Italy and Spain deeper into the mire.

EU officials say the total amount required to shore up the region's banking system is just short of 100 billion euros. Those banks that cannot raise money on the markets will have to turn to national governments, and finally to the EFSF.

European banks will be required to increase their core tier one capital ratio to 9 percent to help them withstand losses on sovereign debt, banking sources said.

FRENCH RATING IN SPOTLIGHT

An EU source said France, which has presidential and parliamentary elections from April to June and is desperate to keep its top-notch AAA credit rating, was pressing for banks to be given at least nine months to meet the target.

France fears its credit rating could come under threat if the wrong method is chosen to scale up the bailout fund to prevent contagion spreading to Italy and Spain, the euro zone's third and fourth largest economies.

Ratings agency Standard & Poor's said on Friday it was likely to downgrade France and four other states if Europe slips into recession. It was the second agency this week to cast doubt on France's rating after Moody's on Tuesday.

Underlining the threat the euro zone crisis poses to the global economy, U.S. President Barack Obama held a video conference with Merkel and Sarkozy on Thursday, reiterating that he hopes a solution will be in place in time for a summit of G20 leaders in Cannes, France on November 3-4.

(Additional reporting by Andreas Rinke and Madeline Chambers in Berlin, John O'Donnell, Julien Toyer, Jan Strupczewski, Robin Emmott and Luke Baker in Brussels; Writing by Luke Baker; Editing by Janet McBride, Mike Peacock and Peter Graff)


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2011/08/19

Major stock indexes fall more than 1 percent (Reuters)

NEW YORK (Reuters) – Stocks sold off on Friday afternoon with all three major stock indexes dropping more than 1 percent.

The Dow Jones industrial average was down 122.04 points, or 1.11 percent, at 10,868.54. The Standard & Poor's 500 Index was down 11.86 points, or 1.04 percent, at 1,128.79. The Nasdaq Composite Index was down 27.20 points, or 1.14 percent, at 2,353.23.

(Reporting by Angela Moon, Editing by Jan Paschal)


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2011/08/03

MasterCard profit jumps 33 percent, beats Street (Reuters)

CHARLOTTE, North Carolina (Reuters) – MasterCard Inc said second-quarter profit jumped 33 percent, as inflation in the United States lifted spending volume and more international consumers used debit and credit cards. Shares rose as much as 9.4 percent.

The credit- and debit-card processor said signing up two big banks -- SunTrust Banks Inc and Sovereign Bank -- to offer MasterCard debit cards instead of rival Visa Inc's service helped boost revenue in the second quarter, and should help next quarter too.

MasterCard executives told analysts on a conference call that the company benefited from overseas customers using debit and credit cards instead of cash to make payments, a long-term trend. U.S. consumers spent more on gasoline and other goods because of rising prices, increasing payment volumes even as the economy weakened.

Analysts said MasterCard's expanding international business can offset a slowdown in U.S. spending in coming quarters.

"They're getting strength from other areas," said Shannon Stemm, a financial services analyst with Edward Jones.

MasterCard on Wednesday reported second-quarter net income of $608 million or $4.76 per share, up from $458 million, or $3.49 per share, a year earlier.

Analysts expected $4.23 per share, according to Thomson Reuters I/B/E/S.

Visa also beat analysts' expectations when it reported quarterly results last week.

MasterCard executives said they would alter their U.S. debit interchange fee structure in advance of new industry fee caps being imposed on those charges later this year.

The fees are charged to merchants for processing a customers' debit card transaction. The so-called Durbin amendment to the 2010 Dodd-Frank financial reform law placed a cap on those fees which takes effect later this year.

MasterCard's U.S. market chief Chris McWilton said the company would institute a two-tiered fee structure by October 1, with fees varying according to the size of the merchant. McWilton did not comment on how the new system relates to the Durbin amendment, or how it will affect revenue.

Last week, Visa said it would introduce a flat network participation fee, and lowered the per-transaction rate for processing all U.S. transactions.

REVENUE

MasterCard's revenue increased 22 percent to $1.7 billion as its cross-border and overseas business grew.

Overall, MasterCard's cross-border transactions rose 19.3 percent, and processed transactions increased 17.4 percent.

The company said it also gained from new processing business in the Netherlands and Brazil.

Total operating expenses increased 20 percent to $782 million. MasterCard said the rise was due to higher personnel costs related to acquisitions.

MasterCard shares were up 8.6 percent at $324.22 on Wednesday afternoon, off an earlier high at $326.46.

(Reporting by Joe Rauch, editing by Gerald E. McCormick, John Wallace and Matthew Lewis)


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2011/07/08

Unemployment rose to 9.2 percent as hiring stalls (AP)

By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer – 41?mins?ago

WASHINGTON – Hiring slowed to a near-standstill last month, raising doubts that the economy will rebound in the second half of the year after a spring slump.

The economy generated only 18,000 net jobs in June, the fewest in nine months. The unemployment rate rose to 9.2 percent, the highest rate of the year, the Labor Department said Friday.

Stocks plunged after the report was released. The Dow Jones industrial average fell more than 120 points in midday trading. Broader indexes also declined.

"June's employment report doesn't have a single redeeming feature," said Paul Ashworth, an economist at Capital Economics. "It's awful from start to finish."

Two years after the recession officially ended, companies are adding fewer workers despite record cash stockpiles and healthy profit margins.

Businesses added just 57,000 jobs last month_ the fewest in more than a year. Governments cut 39,000 jobs. Over the past eight months, federal, state and local governments have cut a combined 238,000 positions.

It was the second straight month of feeble job growth. The number of jobs added in May was downwardly revised to 25,000.

Companies have pulled back on hiring after adding an average of 215,000 jobs per month from February through April. The economy typically needs to add 125,000 jobs per month just to keep up with population growth. And at least twice that many jobs are needed to bring down the unemployment rate.

"Our economy as a whole just isn't producing nearly enough jobs for everybody who is looking," said President Barack Obama, during a speech in the Rose Garden.

Obama used the dismal job data to press Congress to raise the government's borrowing limit. He also said Congress could help the economy by passing three free trade agreements, approving government projects that would create jobs for construction workers, and extending a payroll tax cut.

But Republicans have said they will not support an increase in the $14.3 trillion borrowing limit without an equal cut in spending. They also oppose raising taxes as part of any deal. If the limit isn't raised by Aug. 2, the nation will default on its debts, the Treasury Department says.

"These numbers serve as a warning that as we address the debt limit increase we shouldn't do so in a way that raises taxes and impedes the ability of small businesses to create jobs," said House Majority Leader Eric Cantor, a Republican from Virginia.

Economists have said that temporary factors, in part, have forced some employers to scale back hiring plans. High gas prices have cut into consumer spending, which fuels 70 percent of economic activity. And supply-chain disruptions stemming from the Japan crisis have slowed U.S. manufacturing production.

In June, hiring was weak in most sectors: Manufacturers added only 6,000 jobs; Education and health care, which added jobs through the recession, was flat; and professional and business services, which include accounting, legal and engineering jobs, grew by only 12,000.

Construction and financial services cut jobs.

The sluggish economy and anemic hiring is causing more people to simply give up looking for work. More than a quarter-million people stopped their job searches in June. That kept the unemployment rate from rising even further. When laid-off workers stop looking for work, they are no longer counted as unemployed.

Including discouraged workers and those working part time, but who would prefer full-time work, the "under-employment" rate jumped from 15.8 percent to 16.2 percent.

Unemployment has topped 8 percent for 29 months, the longest streak since the 1930s. It has never been so high so long after a recession ended. At the same point after the previous three recessions, unemployment averaged just 6.8 percent.

And those who do have jobs are earning less. Average hourly wages declined last month. After-tax incomes, adjusted for inflation, have been flat this year.

The average work week declined to 34.3 hours, from 34.4, which means employers demanded less work from their existing staffs. Usually companies demand more hours from their existing staffs when they are preparing to hire more workers.

Temporary employment fell 12,000. Businesses generally hire more temporary workers before taking on permanent ones.

The number of unemployed workers rose almost 175,000 to 14.1 million, pushing up the unemployment rate.

There are signs that economy could improve in the second half of the year. Gas prices have come down since peaking in early May at a national average of nearly $4 per gallon. Prices averaged $3.59 a gallon nationwide on Friday, according to AAA.

And manufacturing activity expanded in June at a faster pace than the previous month, according to the Institute for Supply Management. That suggests the parts shortage caused by the March 11 earthquake in Japan is beginning to abate.

More jobs are needed to boost incomes and consumer spending, which fuels 70 percent of the economy. Without more hiring, the economy may not be able to accelerate from its current weak pace of growth.

The government said last month that the economy grew only 1.9 percent in the January-March quarter. Analysts are expecting similarly weak growth in April-June quarter.

The economy is expected to grow at a 3.2 percent pace in final six months of the year, according to an Associated Press survey of 38 economists. But the latest report could prompt some economists to revise their forecasts.

Growth must be stronger to significantly lower the unemployment rate. The economy would need to grow 5 percent for a whole year to significantly bring down the unemployment rate. Economic growth of just 3 percent a year would hold the unemployment steady and keep up with population growth.


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