Economy

Ongoing economic recovery will require a ‘much more gradual’ normalization than past recoveries: Fed’s Rosengren

Ongoing economic recovery will require a ‘much more gradual’ normalization

On Tuesday, Eric Rosengren, president of Boston Federal Reserve, said that the ongoing economic recovery from the 2008 financial crisis is not like other earlier recoveries. Rosengren said that it will need a ‘much more gradual’ normalization.

His comments showed that at least one member of the Federal Reserve System thinks that it is not going to be right for the central bank to raise its interest rate target from zero at the approaching September meeting.

Rosengren added, “The incoming data have not cooperated with the forecasts. But I think the US economy is strong enough, that the risk of foreign weakness tipping the US into a recession is a ‘relatively low-probability’ event”.

Oil Prices Fall to Six-Year Low

Oil Prices Fall to Six-Year Low

Japan's economy, the second biggest in Asia and No. 3 in the world shrank in the second quarter from a year earlier. The shrinking Japan economy led to drop in oil prices to near six-year lows on Monday.

The shrinking economy of Japan has added to fears that slowdowns in Asia's biggest economies will weigh on oil demand.

U. S. crude, or West Texas Intermediate (WTI), was trading 57 cents lower at $41.93 a barrel at 0211 GMT, close to more than six-year lows. Brent futures were down 65 cents at $48.54 a barrel, still far from their 2015-low of $45.19.

King Digital Entertainment sees 28% Fall in Net Profit

King Digital Entertainment sees 28% Fall in Net Profit

According to reports, King Digital Entertainment has seen a 28% fall in net profit in the recent quarter. Its net profit was affected as a result of continued decline in revenue from its three-year-old "Candy Crush Saga" game.

As per reports, the company posted net profit of $119 million in the second quarter. It fell from $165 million or 52 cents a share in the same period a year ago. Reports stated that revenue declined 18% to $490 million.

The company said that the lower profit coupled with the declining performance of its hit game led to the loss. But it said that it will continue investing in it.

Cisco reports higher-than-expected quarterly revenue and profit

Cisco reports higher-than-expected quarterly revenue and profit

Higher-than-expected quarterly revenue and profit have boosted the confidence of Network equipment maker Cisco Systems to bolster growth in future as well. Cisco said strong demands for its products in the United States have played a key role in its earnings beyond expectations.

Cisco shares jumped nearly 4% in extended trading on Wednesday. Market research firm Gartner says that the company has maintained its reputation of being the market leader in selling network equipment to businesses. The company controls about half of the $38 billion global market and overshadows rivals Hewlett-Packard Co and China's Huawei Technologies Co Ltd.

Alibaba Posts Slowest Sales Growth in Three Years

Alibaba Posts Slowest Sales Growth in Three Years

Alibaba Group Holding Limited posted its slowest sales growth in the first quarterly results after Daniel Zhang took the charge of the company in May. It is Alibaba’s slowest sales growth in at least three years.

The reports showed that shares of the company dropped 5.1% in New York trading, making it the lowest drop since the company initial public offering in September.

Now, the biggest challenge for Zhang is to gain investors’ confidence, especially as the Chinese economy cools after years of torrid growth. He is in charge of a company that has lost about $100 billion of its value since November, the largest destruction of shareholder value globally.

US productivity increases in 2nd quarter

US productivity increases in 2nd quarter

According to reports, US productivity increased at a moderate speed in the April-June quarter for the reason that growth increased and hiring continued to be steady. According to the Labor Department, worker productivity rose at a seasonally adjusted yearly rate of 1.3% that increased from a fall of 1.1% in the first quarter.

Decline in the first quarter was revised quite higher from an earlier estimate of a decline of 3.1%.

The second quarter recovery took place mainly since the economy grew rapidly. It grew at a 2.3% yearly rate, compared with weak 0.6% growth in the first quarter. Productivity is a measure of efficiency of workers. It gauges the output of services and goods for each hour spent working.

Kraft Heinz Revenue Falls in Q2 Post Merger

Kraft Heinz Revenue Falls in Q2 Post Merger

The net revenue for the Kraft Heinz Group reported a decrease as the results for second quarter were declared. The group officials and analysts said that the merger of the two companies in March was responsible for the soft results.

The mega multi-billion dollar merger took place between the two companies in March, this year. The company’s second quarter ended June. Its organic net revenues went down by over than 3.2% for the 13-week period.

Kraft’s individual net revenues totaled $4.5 billion during the quarter. However, the joint overall revenue remained much below the estimates of at $4.7 billion.

In a statement issued recently, the company revealed that foreign exchange translations were responsible for a 1.4% decline.

US Economy Shows Signs Of Improvement in July

US Economy Shows Signs Of Improvement in July

Jobs in United States in the month of July rose at a healthy pace providing further signs of improvement in economy that could allow the Federal Reserve to raise interest rates in September.

A recent survey conducted by Reuters showed that US nonfarm payrolls increased by 223,000 in the last month, which would be slightly above the monthly average for the first half of the year.

It has been said that the pace of hiring has slowed down from last year, but it remained double the rate that was needed to keep up with population growth.

Google’s Second quarter profit beats analysts’ estimates

Google’s Second quarter profit beats analysts’ estimates

Google’s shares jumped almost 12% after the search engine giant’s profit surpassed the analysts’ forecasts for the first time in the last six quarters. The surge in Google’s profit is the result of boost in strong advertising revenue and its new chief financial officer’s announcement to bring more restraint to spending.

After closing at $601.78 on Nasdaq, Google rallied to $673.50 in extended trading. If Google manages to close at that level on Friday, the web search leader will record an all-time high for the stock in regular trading. It will add nearly $40 billion to its market value.

Navient lowers estimates for 2015

Navient lowers estimates for 2015

According to reports, loan servicing company Navient has estimated less expectation for this year for the reason that credit trends on some student loans have weakened and there has been a decline in loans that are emerging from deferment.

The company’s stock fell $2.36, or 12.9%, to $16 in aftermarket trading. On Monday, Navient said that a number of private student loans are "experiencing unfavorable credit trends" compared with loans in earlier years. As per reports, high-risk borrowers had taken those loans, the ones who returned to school in the period of the recession and delayed repayment of their loans after completing their degree.

TerraForm agrees to acquire majority stake in a portfolio of wind farms for $2 billion

TerraForm agrees to acquire majority stake in a portfolio of wind farms for $2

A majority stake in a portfolio of wind farms in the US and Canada will be purchased by TerraForm Power Inc. for $2 billion from Invenergy Wind LLC. A spinoff of SunEdison Inc.'s clean-power assets paved the way for the formation of TerraForm last year.

TerraForm is likely to acquire net ownership of 460 megawatts of wind power plants. A warehouse facility that will be sponsored by SunEdison and third-party equity investors will acquire an additional 470 megawatts of wind power plants.

In recent after-hours trading, TerraForm shares jumped 3.5% to $38.86, whereas rise of 3.8% to $30.05 was witnessed in shares of SunEdison.

Amazon offers £20 discount on Prime

Amazon offers £20 discount on Prime

Amazon’s Prime members could only be benefited by Prime Day and the day is intended to strengthen loyalty among current members and take on new ones before the event that will be fall on 15 July. The company is reducing the price of Prime membership by £20 to £59 for people who join from now till 8 July.

Next week, the retailer will also celebrate its 20th birthday. It said that customers will be able to find more volume of deals compared to the ones offered on Black Friday. Price-cuts will be covering categories such as toys, electronics, films, video games, garden, sports and beauty.

A video ad has also been launched by the retailer on YouTube, in which it has explained about Prime Day and showed how it created "interpretations of #PrimeLiving".

Biogen to pay $124 million to Applied Genetic Technologies Corp. to develop Gene-based Therapies for Eye Diseases

Biogen to pay $124 million to Applied Genetic Technologies Corp. to develop Gene

Biogen Inc. will pay $124 million to Applied Genetic Technologies Corp. for getting license and commercialization rights for its gene-based therapies, as the former is making its entry into the eye-disease treatment.

After the announcement, shares of AGTC increased 21% amounting to $19.75, but not much change was noticed in the shares of Biogen. They were little changed at $406.08. While detailing about the deal, Biogen, which is a leader in treatments for multiple sclerosis, said that the amount also includes a $30 million equity investment.

AGTC will also receive milestone payments and royalties totaling more than $1 billion. The total includes up to $472.5 million for the two programs and rest of the amount will be from payments for the discovery programs.

US employment report may affect September interest rate hike expectations

US employment report may affect September interest rate hike expectations

According to reports, in June, US job growth decreased and weakened expectations regarding interest rate hike from the Federal Reserve in September. It has been reported that last month, nonfarm payrolls increased 223,000, down from 254,000 in May.

This was as a result of construction and unchanged government employment in addition to axing of more jobs in mining, according to the Labor Department. Reports say that there were 60,000 fewer jobs in April and May compared to what was reported earlier.

It has been reported that the unemployment rate dropped two-tenths of a percentage point to 5.3%. However, it led to weakness as approximately 432,000 people left the labour force.

United States manufacturing sector witnessed expansion in June

United States manufacturing sector witnessed expansion in June

Recent data released by the Institute for Supply Management revealed that the United States manufacturing sector expanded in June. The ISM manufacturing index showed a reading of 53.5, which is the highest in five months. Last month's reading was 52.8

As per the report, higher readings were a result of better Employment Index, which increased to 55.5 in June from 51.7 in May. Non-farm sector might have seen job addition of 250,000 in June.

May 2015 observed employers adding 280,000 jobs in the non-farm sector. The current ISM reading points to continued improvement in the employment data.

Apollo Education Group lays off 600 workers

Apollo Education Group lays off 600 workers

On Monday, the parent company of the University of Phoenix announced to lay off approximately 600 employees. Apollo Education Group said that it plans to close more campus locations as it faces continuous declines in enrollment and revenue.

The company’s spokesman Ryan Rauzon said that Apollo would not break out where the employees worked but that layoffs occurred across the country. Earlier this year, Apollo reported that it had 7,150 Arizona employees.

In the quarter that ended in May, the Phoenix-based company's enrollment and net revenue each tumbled more than 14 %. Apollo reported adjusted earnings of 53 cents per share, down from 78 cents per share a year earlier.

Incomes for bottom 99% of American families increase

Incomes for bottom 99% of American families increase

According to data compiled by economist Emmanuel Saez, last year, incomes for the bottom 99% of American families increased 3.3% to $47,213, which is the biggest annual gain in the past 15 years. The data was released by the Washington Center for Equitable Growth on Monday.

Saez, a professor at the University of California-Berkeley, said in a summary of his findings, "For the bottom 99 percent of income earners, this marks the first year of real recovery from the income losses sparked by the Great Recession".

Congress fails to renew Export-Import Bank’s charter

Congress fails to renew Export-Import Bank’s charter

The Export-Import Bank charter expires on Tuesday for the first time since it was created to help United States businesses during depression to export their products.

The bank on which several local companies were dependant has to face the situation as congress failed to renew the bank's charter because of opposition from Republicans who say it amounts to corporate welfare.

The federal Export-Import Bank's principal role is to guarantee commercial bank loans made to foreign businesses to buy US products. The bank also makes direct loans and provides export credit insurance to protect against losses to companies from non-repayment of loans.

Puerto Rico’s governor acknowledges government and publicly owned utilities can’t pay $72 billion debt

Puerto Rico Governor Alejandro Garcia Padilla

Puerto Rico Governor Alejandro Garcia Padilla said that the US commonwealth cannot pay its roughly $72 billion in debts. He called for a negotiated agreement with bondholders to delay payment for a number of years.

A comprehensive debt-restructuring plan will be developed by Puerto Rico officials by the end of August. Padilla said, "Without such a plan, "the option is unplanned and unilateral default of our obligations, with all the negative consequences that this implies for each and every one of us".

Puerto Rico bonds' price sold in 2014 touched record lows of around 68 cents on the dollar Monday. Mr. Padilla said that they cannot allow the heavy weight of the debt to force us to choose between paying their creditors and paying their policemen, teachers and nurses.

Important Things to Keep in Mind before Retirement

Important Things to Keep in Mind before Retirement

Retirement might sound peaceful to some or even exciting in some cases, but it can actually be a difficult landscape to understand and navigate. One can even get rid of this problem by guiding his/her savings with a retirement calculator.

Figuring out how much one can expect to get in Social Security benefits can be difficult, said experts.

For many Americans, Social Security benefits are the base of their retirement incomes. Whether one is close to retirement or years away, it’s about time they need to know the basic Social Security facts. Check out some of the most important ones to know below.

Following points will tell who all are eligible for benefits:




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