Economic and Financial News

Facebook Slump Continues After Two Senior Executives Exit

Bloomberg,

3 August, 2012

Facebook Inc. (FB) dropped 4 percent to a record low, the fifth straight day of declines after the world’s largest social-networking service reported earnings that showed slowing growth.

The shares slid to $20.04 at the close in New York. Earlier the stock fell as low as $19.82, the lowest intraday price since the company held an initial public offering on May 17. Shares of the Menlo Park, California-based company have lost 47 percent since the IPO.

For article GO HERE

U.S. Stocks Fall For 4th Day As ECB’s Draghi Disappoints

Bloomberg

U.S. stocks fell, sending the Standard & Poor’s 500 Index down for a fourth straight day, after European Central Bank President Mario Draghi failed to reassure investors on immediate efforts to bolster the economy.

The S&P 500 (SPX) retreated 0.7 percent to 1,364.93 at 4 p.m. New York time, dropping 1.5 percent in four days.

For article GO HERE

Losing 500,000 Jobs Seen New Reality Of Europe Crisis

Bloomberg,

2 August, 2012

Efforts by PSA Peugeot Citroen (UG) and Fiat SpA (F) to end losses in Europe could cost more than 500,000 people their jobs as automakers and parts suppliers grapple with the effects of the European sovereign debt crisis.

The region’s auto industry, including component makers such as SKF AB (SKFB) and Autoliv Inc. (ALV), is set to pare payrolls as auto demand contracts for the fifth straight year. Easy-to-fire temporary workers, which account for about 1.5 million of the industry’s 7 million employees, would likely bear the brunt of the cuts, according to Lars Holmqvist, the former head of the region’s parts supplier association.

The dismissals would follow about 800,000 job losses in the industry since 2007 and add to a record unemployment rate of 11.2 percent in the 17-nation euro area. With auto demand already hampered by 17.8 million jobless, the 13-member Stoxx 600 Automobiles & Parts Index has dropped 14 percent over the past 12 months, led by Peugeot’s 72 percent plunge.

For article GO HERE

US Export Orders Are Collapsing

Zero Hedge,

2 August, 2012

Presented with little comment, courtesy of Diapason Commodities' Sean Corrigan, NAPM Export Orders have plunged over 3 sigma in the last 3 months and have only dropped more (in history) immediately after the Lehman debacle. Decoupling anyone?