White House Announces Largest Boeing Deal Ever

Posted on by Scott Hodges

Only one week ago, Boeing gushed that it had landed its biggest aircraft order ever. The order came from Dubai’s Emirates which ordered 50 Boeing 777s, with a total value of $18 billion.

Now, just one week later, Boeing is already crushing that record, as an order just came in from private carrier Lion Air of Indonesia. They have ordered 230 planes including 201 Boeing 737 “MAX” and 29 extended-range 737s. The order was actually announced by the White House during President Barack Obama’s recent trip to Bali, Indonesia.

Inspirational Business Woman Leah Brown

Posted on by Scott Hodges

Inspiration comes from many locations.  Leah Brown is one such inspirational business woman, having built her own health care research firm while single-handedly raising two sons.  Now, her goal is go help other women to build their businesses.  Watch this moving clip as NBC’s Anne Thompson reports on how women like Leah Brown are helping to move the economy forward and to raise women up while doing so.

Visit msnbc.com for breaking news, world news, and news about the economy

Economy Showing Slight Gains, Agrees Eric Green

Posted on by Scott Hodges
While it may not sound like terrific news, it’s certainly better than nothing.  The US economy showed a growth in October, adding 80,000 jobs. The unemployment rate also moved down ever-so-slightly from 9.1 to 9.0%.
This information does offer optimism since the economy did not stall as a response to the US credit rating downgrading or to the crisis occurring in the Eurozone. 
 Most economists, while pleased with the growth in October, don’t believe that it’s enough.  Most agree that growth of at least 200,000 jobs  a month would be necessary to reduce the unemployment numbers in a steady and consistent way. 
Eric Green, chief economist at TD Securities in New York said, in response to this recent set of figures that, “The trend is moving in the right direction.”
In an interview with the Financial Times, Hilda Solis the US Secretary of Labour said,  “We need to have more growth, absolutely … but we do see some little flickers where we do see some potential confidence coming back.”

Whirlpool Slashing Jobs

Posted on by Scott Hodges

An enormous company like Whirlpool is able to offer economists insight into the American and global economy.  Their performance serves as a window to the economic situation, as it shows whether consumers are spending on large ticket items.

Today’s news, therefore, is quite negative, as Whirlpool Corp. has announced that it plans to cut 5000 jobs.  This is about 10% of its North American and European workforce.  The cuts include 1200 salaried positions and the closing of their plant in Fort Smith, Arkansas.
In addition, Whirlpool is relocating its dishwasher production from Neunkirchen, Germany to Poland in January 2012 and they predict that all of these actions will save them $400 million by the end of 2013.
Whirlpool’s brands include Maytag and KitchenAid as well.  They explain that the current recession has certainly hurt their bottom line, as has the rising costs for materials such as steel and copper.  They have also been facing pressures from discount competitors.
As CEO Jeff Fettig explained, “Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs.”

U.S. Treasuries Fall As Growth Increases

Posted on by Scott Hodges
As U.S. growth increases, treasuries have fallen, according to recent data which revealed growth in both business equipment orders as well as home purchases. Meanwhile, Benchmark notes increased yesterday as concerns regarding the Eurozone heighten and reports revealed that U.S. consumer confidence has fallen.
“The Conference Board consumer confidence report is important, but the reaction was probably excessive,” said Alessandro Mercuri  of Lloyd Bank Corporate Markets in London. “We’ve had a streak of stronger data. If we have a softening of concerns in Europe, we might have a bear steepening in the U.S.”

Good News Ahead for U.S Economic Growth?

Posted on by Scott Hodges

It’s possible that there is good news ahead for the U.S. and its economic growth.  The economy has gathered steam in the third quarter, as fears have been pushed aside and spending has increased. As Sung Won Sohn, an economics professor at California State University in the Channel Islands said, “The probability of a double-dip has diminished quite a bit.”

According to a Reuters survey of economists, the U.S. gross domestic product expanded at a rate of 2.5% annually during the third quarter; this is in contrast to the 1.3% pace that was seen during the April-June quarter.

The economy at the end of 2011 could swing either way, economists are predicting.  The slowdown in Europe could create a weaker end to the year, but the upturn in spending in the states and the inventory accumulation by businesses may help for the fourth quarter.

Certainly on the downside, the recovery pace is not strong enough to lower the jobless rate, which has been stuck for almost half a year above 9%

China’s Policies “Hobbling” U.S. Sales

Posted on by Scott Hodges
This past Tuesday, a trade official accused China’s policies, which he claimed were “hobbling” U.S. sales, but did not ask for legislative authority to confront Beijing anew.
“Many of these troubling policies reflect China’s strengthening of state control over its economy nd a retreat from its initial strong push to liberalize markets in the first years after its World Trade Organization accession,” said Demetrios Marantis, Deputy U.S. Trade Representative.
According to Marantis, the Obama Administration is “working day and night” to deal with numerous concerns in foreign firms.
“Our approach is founded on proven, vigorous enforcement and results-oriented dialogue,” he said.