Economy

McDonald’s workers say the raise that the company is giving is too little

McDonald’s workers say the raise that the company is giving is too little

Earlier, there were reports that McDonald’s, world's largest chain of hamburger fast food restaurants, is giving everybody a raise. But according to the company’s workers, the raise is too low. Julia Andino, who worked at McDonald’s franchises, heard the news when she was sleeping. A phone call awaked her. The excited voice was of her friend, who said that McDonald’s has decided to give everybody a raise.

According to Andino, it was surprising. After hearing the news, her mind started whirring. Andino started thinking that the extra money could help her in paying her phone bill or owing a babysitter for her -year-old son.

Icahn receives a lot of criticism from students

Icahn receives a lot of criticism from students

Corporate boards, company executives, and rival investors criticized Carl Icahn. But he is receiving a lot of criticism from casino workers and college students, who consider him as a reason behind struggling seaside gambling resort.

Trump Entertainment Resorts will be taken over by Icahn. He’ll also take over the struggling Trump Taj Mahal Casino Resort. But even before it occurs, the company’s elimination of health insurance and pensions for workers has led to a lot of public protests.

US Employers hired at Solid Pace in March

US Employers hired at Solid Pace in March

US employers have seemingly given employment at a robust pace in March despite economy has appeared to have witnessed a decline.

Factories face a slowdown and construction activity has dropped. Cheaper oil has caused cutbacks at energy companies. Economists anticipate a 13th straight month of job gains above 200,000 and it is a motivating indication for an economy that's still showing steady gains despite a harsh winter that squeezed growth.

According to Economists, they have anticipated job gain of 248,000 in March and also anticipate that the unemployment rate holds steady at 5.5%%. It has been revealed that employers added 295,000 jobs in February.

China’s services PMI rose to 52.3 in March: HSBC

China’s services PMI rose to 52.3 in March: HSBC

On Friday, a private survey showed expansion of China’s services sector in March despite growth decline in employment and new business, lowest in at least eight months.

The HSBC China Services Purchasing Managers' Index (PM1) edged up to 52.3 in March from 52.0 in February.

The HSBC China Services PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives at more than 400 private service-sector companies.
Any level above 50 reflects growth in the survey by HSBC and compiled by Markit.

The index, which showed a reading of 52 in February reached inched higher to 52.3 in March, indicating month-over-month expansion. In mid-2012, the readings comfortably hit the mid-fifties.

GoDaddy shares increase

GoDaddy shares increase

According to Reuters, GoDaddy Inc. managed to raise $460 million by selling 23 million class shares, priced at $20 after its initial public offering (IPO). Shares of the company increased up to 34% following its IPO.

According to Ernst & Young official Jackie Kelley, "Even though GoDaddy is almost 20 years old, it's a growth company and it's cash flow-positive, which is what investors are interested in".

GoDaddy, a publicly traded Internet domain registrar and web hosting company headquartered in Scottsdale, Arizona, is concentrating on operations on small-business services, assisting in consumer-to-business and business-to-business transactions.

Walmart Taking Steps to reclaim its position as low-price leader

Walmart Taking Steps to reclaim its position as low-price leader

Amid stiff competition and slow sales in the US, Walmart is trying to reclaim its position as the low-price leader. The world’s largest retailer, based in Bentonville, Arkansas, has asked suppliers to reduce advertising spending in its stores.

General trend is makers of consumer products like laundry detergent spend a portion of their budget to market their products at Walmart. They do marketing through store displays and online ads in social media.

Now, Walmart has asked them to not spend money on such activities. In fact, it would be better if they reinvest some of that money. Deisha Barnett, a Walmart spokeswoman, has confirmed the strategy and the recent proposal is more of a ‘reinvigorated focus’.

US Job Growth may have Positive Impact on Economy

US Job Growth may have Positive Impact on Economy

Recently, there were fears about stagnant and weaker economy but US jobs have shown a steady growth in March. It has made promises of raising interest rates in the Federal Reserve in the present year.

According to an economy survey done by Reuters, February has brought 295,000 nonfarm payrolls, whereas March most likely has added more 245,000.

March has marked the 13th consecutive month of job growth above 200,000, as a result of which US economy has witnessed the longest streak in the US economy since late 1993.

For the prosperity, the labor market had to fight adverse conditions, including a difficult winter season, a resilient dollar and a decreasing global demand, a mix that had an impact on our economic activity in the year’s first quarter.

March presented Steady Growth in US Jobs

March presented Steady Growth in US Jobs

March witnessed a consistent growth in US jobs giving hopes that interest rate will be increased this year in the Federal Reserve.

As per a Reuters economy survey, in February, 295, 000 nonfarm payrolls were reported and in March, more 245,000 have been added. With this, March has become the 13th consecutive month of job growth.

The news seems to be welcoming at the time when the labor market is facing so many problems including a difficult winter season, a resilient dollar and a decreasing global demand. All these and other factors have affected the economic activity in the first quarter of the year.

China Shows Weakness in World’s Second-Biggest Economy in March

China Shows Weakness in World’s Second-Biggest Economy in March

The surveys done on China's factory and services sectors have shown stubborn weakness in the world's second-biggest economy in March. This has supported the fact that Beijing will have to roll out more policy support to avoid a severe slowdown.

According to three different surveys, Chinese companies shed jobs last month due to their struggle with soft demand and deflationary pressures.

This has suggested that in the first quarter of 2015, the economic growth may have slipped below 7%, which would be the weakest in six years.

Zhang Zhiwei, an economist at Deutsche Bank in Hong Kong, said, "We expect first-quarter growth to drop to 6.8 percent and the government might start easing policies significantly in the second quarter".

US Economy is losing strength

US Economy is losing strength

Last year was the best year of gains since 1999 for the job market in the United States. In addition, in the third quarter, economy activity of the country hit a massive 5%, marking its best pace since 2003. After closing out 2014 with Superman strength, the country's economy has started losing momentum.

According to reports, hiring is still on, but many experts have started to scale back their growth forecasts. In a speech on Friday, Federal Reserve chair Janet Yellen said that if the underlying conditions have actually come back to natural, the economy of the country should be booming.

Fewer people applied for unemployment benefits last week in US

Fewer people applied for unemployment benefits last week in US

Fewer people applied for US unemployment benefits last week. Economy experts said this is an indication that strong hiring continues despite signs of slower economic growth at the start of 2015.

The Labor Department on Thursday said that weekly applications for unemployment aid dropped 9,000 to a seasonally adjusted 282,000.

The decrease suggests that a recent slowdown in manufacturing, housing starts and retail sales has so far not hit the job market. This is an indication that economic growth will rebound after a harsh winter.

The four-week average, a less volatile measure, tumbled 7,750 to 297,000. Over the past 12 months, the average has dipped roughly 7%.

Cash-strapped Americans turning to Payment Advances and Prepaid Cards

Cash-strapped Americans turning to Payment Advances and Prepaid Cards

People across America, who are cash-strapped, anxious for tax refunds have been turning to costly services like payment advances and prepaid cards when it comes about getting tax preparation help, as per new federal data raising concerns among regulators about whether customers have information about the fees.

Regulators across the country have been planning to increase oversight of tax preparers in the middle of rise in ‘refund anticipation checks’, which is famous among low-income families who receive federal government’s $65 billion cash benefit program, Earned Income Tax Credit. The advances like ‘refund anticipation checks’ have been marketed as a method to fast and easy refunds.

Marginal Rise in Number of Americans Filing New Claims for Unemployment Benefits

Marginal Rise in Number of Americans Filing New Claims for Unemployment Benefits

A recently released data showed that the number of Americans filing new claims for unemployment benefits has risen marginally this week. The small rise indicates that the labor market remained on solid footing despite slowing economic growth.

Another report released Thursday showed that manufacturing activity in the mid-Atlantic region has slowed down for the fourth consecutive month in March, while the future economic activity rose slightly in February. This was the lowest level that the manufacturing activity has hit in more than a year.

The data showed that the growth has slowed down in the first quarter. It was further weakened by harsh winters, a strong dollar, weaker overseas economies and labor disputes at West Coast ports.

Decline in Wholesale Prices Continues

Decline in Wholesale Prices Continues

The decline in the food prices had made up for an increase in the gasoline prices, due to which the wholesale prices went down for a fourth straight month in February.

On Friday, the Labor Department said that its producer price index, which measures inflation pressures before they reach consumers, has shown a fall of 0.5% in February following a 0.8% fall in January, which had been a record decline in a government series that goes back to 2009.

During the month, core producer prices, leaving volatile food and energy costs aside, have also dropped by 0.5%. In the last 12 months, producer prices have shed 0.6% whereas the core prices have climbed a modest 1%.

China's Inflation rose 1.4% in February

China's Inflation rose 1.4% in February

As per the National Bureau of Statistics, inflation in China rose about 1.4% year-on-year in February, but producer prices have slid again. According to NBS, the inflation in the country has been recovering from a five-year-low of about 0.8% in January.

Yu Qiumei, a senior economist at NBS, said that the growth was due to rise in travel prices and food prices during the Chinese New Year. According to the data collected by NBS, the food prices in the country rose by about 2.4% in February compared to prices last year. The data also showed that Consumer Price Index (CPI) in China climbed by more than 1% last month. In January, there was 0.3% growth in CPI.

Obama to Announce Strategy to Increase higher Wage Tech Jobs

Obama to Announce Strategy to Increase higher Wage Tech Jobs

The main focus of President Barack Obama is on high-tech jobs in his proposal to make progress on stagnant wages in this country. Obama has got commitments from over 300 employers as well as local governments in 20 regions of the country to train and hire high technology workers in an attempt to drive up higher-income employment.

As per the people familiar with the program inside and outside the White House, Obama will unveil the program, called TechHire, on Monday, during a speech to the National League of Cities,

Federal Reserve can Increase Interest Rates in Second Half of the Year: Survey

Federal Reserve can Increase Interest Rates in Second Half of the Year: Survey

The National Association of Business Economists conducted a survey in which 293 economists took part. As per them, the Federal Reserve can increase interest rates in the second half of the year.

However, it has been noticed that uncertainty over the plans is no affecting the US economic growth. As many as 71% of the total economists who took part in the survey said that they do think that the Federal Open Market Committee will increase the federal funds target rate this year.

Since the end of 2008, the rate has been almost zero. Experts do not think that even if the Fed takes time to increase the rate, it will have much impact on the pace at which economic recovery is taking place.

Stress test results might jeopardize important profit source of Goldman Sachs

Stress test results might jeopardize important profit source of Goldman Sachs

Goldman Sachs performed poorly compared to other big banks on the Federal Reserve stress tests last week.

Poor performance has raised concerns as analysts and investors worry that the bank could be barred by regulators from buying back its own stock or increasing dividends.

The multinational investment bank used dividends and share buybacks to appeal investors at a time when other elements of the bank’s business faced challenges.

When shares of their own stock on the open market are bought by the companies, it generally increases the amount of profits attributed to every share.

Now, given the results of the stress tests, analysts are concerned whether the Federal Reserve would allow Goldman to continue its buyback programs.

Trade surplus of Germany decreases in January

Trade surplus of Germany decreases in January

In January, trade surplus of Germany decreased since plunge in imports was more than a drop in exports. According to the Federal Statistical Office, exports dropped 2.1% in January to 96.3 billion euros ($105.57 billion) when adjusted for seasonal and calendar variances. Imports declined 0.3% to 76.6 billion euros. The trade surplus decreased to 19.7 billion euros in January from 21.6 billion euros in December.

Germany was criticized for depending too much on exports. The country also didn’t import much to offer support to economies of other European countries.

Unemployment Rate Declines to 5.5%, but the numbers not as encouraging as they might Sound

Unemployment Rate Declines to 5.5%

Current unemployment rate in the US is 5.5% and is low enough to be considered as an indication of a healthy job market. The percentage is considered to be a seven-year low.

Though the multi-year low unemployment should be rejoiced, as per experts it’s not as encouraging as it might sound. In February, US employers employed 295,000 people. Economists suggest that the percentage decreased majorly because people stopped searching for job.

Therefore, they were no more officially counted as unemployed. It shall however, be noted that wage gains remained sluggish. This is the reasons that job market seems to be improving, but it is not as it seems to be sounding.




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