Featured StoryFor Japan's central bank and government, there are no easy answers to a growing deflation problem. A loose monetary policy so far has been ineffective and extra stimulus comes with the dire consequence of adding to the nation's debt burden.
As expected, the Bank of Japan (BOJ) held interest rates at 0.1% Friday as the budding recovery in the world's second-largest economy is showing signs of slowing.
"The BOJ felt compelled to show that it doesn't accept deflation and is committed to fighting it," Yasunari Ueno, chief market...
Is Incoming Bank of America CEO Moynihan "More of the Same?"
Bank of America Corp.'s (NYSE: BAC) decision to appoint Brian Moynihan as its next president and chief executive officer puts the pressure on Moynihan and the bank's board of directors to prove to investors that the company is serious about changing direction.
Moynihan joined Bank of America via its 2004 merger with FleetBoston Financial and has held several positions since. While technically...
Low November Job Losses Shock, but The Jobless Recovery Continues
November payrolls fell by much less than expected - declining by just 11,000 - and the unemployment rate fell to 10.0%, the U.S. Department of Labor said Friday. But while it's becoming more apparent that the U.S. job market is closer to growth, caution is still the buzzword as the jobless recovery continues.
When growth does return the consensus is that getting back the roughly 7.2 million jobs lost since the recession began in December 2007...
With NBC Deal Done, Comcast Becomes the New Cable Juggernaut
Comcast Corp. (Nasdaq: CMCSA) will acquire a 51% stake in General Electric Co.’s (NYSE: GE) NBC Universal Inc. for $13.75 billion in cash and assets, giving the cable giant lucrative cable channels including SyFy, Bravo and the USA Network, as well as Universal Pictures and its related theme parks in California, Florida...
GM's Search for CEO Won't Likely Be Part of the "Old Guard"
The circumstances surrounding the resignation of General Motors (NYSE: GRM) Chief Executive Officer Fritz Henderson are still unclear. But it's likely that whoever succeeds Henderson will no doubt have a turnaround plan more compatible with that of the company's board, and will likely come from outside of GM's ranks.
Henderson, who resigned Tuesday, was a longtime GM veteran who joined the company's treasurer's office in 1984. The Detroit-born Henderson is...
South Korea's Exports Rise, but Future Looks Murky
Year-over-year exports from South Korea rose for the first time in 13 months amid higher shipments to two of the world's largest economies. However, future sustainability of the export-based economy is made uncertain by questions surrounding the removal of global stimulus measures. Overall shipments rose 18.8% to $34.3 billion in the first 20 days of November, Korea's Ministry of Knowledge Economy said yesterday (Tuesday). Roughly one-third of shipments were to the stimulus-backed economies of China and the United States, where exports...
As Bank Failures Grow, FDIC Options Narrow
The Federal Deposit Insurance Corp. (FDIC) will likely have tap its credit line with the U.S. Treasury or impose more special premiums on banks, to ensure U.S. banks are fully supported.
While FDIC-insured banks reported a net income of $2.8 billion in the third quarter, bank lending fell by 2.8%, the most since records were first kept in 1984 and the fifth consecutive quarter loan balances declined. The FDIC's Deposit Insurance Fund (DIF)
U.S. Economy Will Grow Faster Than Expected, Jobs to Return to Growth Next Year, Economists Say
The U.S. economy will grow faster than expected next year, but job growth will begin later than previously thought, according to a survey of business economists.
A panel of 48 economists surveyed by the National Association for Business Economics (NABE) showed gross domestic product (GDP) in the United States will grow by 3.2%, but job losses won't bottom until the first quarter of next year. A previous NABE forecast said employers would add 12,000 to payrolls in that...
Lazard Puts Future in M&A with New CEO
In a signal of confidence for the future of mergers-and-acquisitions (M&A), Lazard Ltd. (NYSE: LAZ) appointed Kenneth Jacobs as its chairman and chief executive officer following the unexpected death of famed dealmaker Bruce Wasserstein.
Jacobs, a 21-year company veteran, was most recently CEO of Lazard North America and has a history of leading M&A advisory...
Japan's Economic Growth Accelerates, but Deficit Raises Concerns
Stimulus measures in Japan helped the world's second-largest economy grow at its fastest pace in more than two years, but it's unlikely policymakers will reduce spending despite the nation's rapidly growing debt.
Gross domestic product (GDP) in Japan grew at 4.8% annual rate in the third quarter, surpassing all the forecasts of 20 economists polled by Bloomberg News. That follows a revised gain of 2.7% in the three months ended June 30, according to Japan's Cabinet Office. Japan's economy grew 1.2% on a...