Friday, November 5, 2010 myBiz Blog
MarketWatch 11.7.10 by Kelly Cuene

 

The U.S. Economy Adds Jobs in October The Department of Labor reports that the private-sector added 159,000 jobs in the month of October, the first time since last May. Most jobs were gained in mining, healthcare and a number of service-producing industries. However, the unemployment rate remained at a lofty 9.6% in October. The sluggish pace of the U.S. economy, as highlighted by high unemployment and very low inflation, led the Federal Reserve to announce it plans to buy $600 billion in U.S. Treasurys through June in the hope it will keep borrowing rates low and encourage companies to hire and consumers to spend. Source: Wall Street Journal

Food Prices Rising Paying more at the grocery store? Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. Food makers and retailers including McDonald's Corp., Kellogg Co. and Kroger Co. have begun to signal that they'll try to make consumers shoulder more of the higher costs for ingredients. Kraft Foods Inc., Sara Lee Corp. and General Mills Inc. already have said they'll raise prices on certain items. Costs are being driven by growing demand for meat in China, India and other emerging markets. That's driven up grain prices, which in turn boost the cost of chicken, steak, bread and pasta. Grain prices also have been nudged higher by drought in Russia, planting problems around the world and speculative trading. Source: Wall Street Journal

A.I.G. Reports $2.4 Billion Loss in 3rd Quarter On Friday, A.I.G reported a $2.4 billion loss for its third quarter, again hampered by accounting charges related to its restructuring as it seeks to repay its taxpayer-financed bailout. The insurer disclosed a $4.5 billion charge related to its ongoing reorganization, including charges tied to a deferred tax asset and the sale of two insurance businesses and a $1.9 billion loss on the sale of a lending unit. A.I.G. said that its income from continuing insurance operations — including global property and casualty insurance and domestic life insurance — rose to $2.1 billion. Source: New York Times