Entries Tagged 'Global Economic News' ↓

FORD US AUTO SALES FALL 24%, HIT 11-MONTH HIGH

Ford reports a 24% decline in U.S. sales for May, but the auto maker still posts its highest monthly sales since last June. Ford plans to take advantage of the competitors’ woes, announcing a 10,000-vehicle increase in 2Q production.

US STOCKS FLAT ON HOUSING DATA

U.S. stocks trade flat, seesawing between gains and losses, after a report
shows pending sales of existing homes in April posted their largest monthly
increase in eight years. Financial stocks trail the broader market as blue-chip firms announced plans to raise fresh capital. Treasury prices stabilize.

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Richard Moody of Forward Capital sees withered shoots within the May jobs report. He points out that 52.9% of the unemployed last month were so because they lost their jobs permanently, the highest figure in the life of the data. “This is one sign that the current recession has generated a considerable degree of structural, as opposed to cyclical, unemployment, reflecting the amount of excess capacity that had developed in the economy over recent years. Even as the economy recovers, these displaced workers will likely be unemployed for a prolonged period,” he writes.

The Argentine unit of General Motors Corp. (GMGMQ) is sound and unaffected by the U.S. company’s decision to file for bankruptcy
Monday, the division said Tuesday in a statement.

“GM Argentina is a legally distinct entity, and is economically and
financially solvent thanks to our healthy balance in the region,” GM Argentina said in a statement posted online.

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