News digest

Just to do this quickly, here are some of the headlines today:

  • Stocks advance after better economic indicators number and reports of AIG paying back TARP soon

AIG jumped 18 percent to $31.40 after Benmosche said in an interview in Croatia that “at the end of the day, we believe we will be able to pay back the government and we hope we will be able to do something for our shareholders as well.”

Source: Bloomberg

  • UK likely to keep rates low until 2013

Gerard Lyons, chief economist at Standard Chartered Bank, said it was now possible that King would not raise interest rates from their current all-time low of 0.5% during his current term as governor, which lasts until mid-2013.

Other economists said that because whichever party winning next year’s election would have to cut spending and raise taxes to close the enormous budget deficit, the resulting fiscal squeeze would mean interest rates would probably be kept very low to keep the economy moving.

Source:  Guardian

  • Jobless claims unexpectedly rose again

Initial claims for jobless benefits rose 15,000 to 576,000 in the week ended Aug. 15, the highest level in three weeks, the Labor Department said in its weekly report Thursday.

The four-week average of new claims, which aims to smooth volatility in the data, rose 4,250 to 570,000. That was the highest average since the week ended July 11.

Source: WSJ

  • NY dealers out of cash for clunkers

Hundreds of auto dealers in the New York area have withdrawn from the government’s Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.

Gerard Lyons, chief economist at Standard Chartered Bank, said it was now possible that King would not raise interest rates from their current all-time low of 0.5% during his current term as governor, which lasts until mid-2013.

Source:NYT

  • Google’s IPO, 5 Years Later

Five years ago today, Google sold shares to the public for the first time in what was one of Silicon Valley’s most discussed, dissected and debated initial public offerings of stock. Its debut on the Nasdaq market on Aug. 19, 2004, came after numerous twists and turns, including a Playboy magazine interview with the company’s founders that drew the attention of the Securities and Exchange Commission — apparently they read it for the articles — and a last-minute drop in the initial offer price.

Source: NYT Dealbook

S Korea to create bad bank

Six of South Korea’s leading banks on Thursday signed a preliminary deal to set up a private bad bank in an attempt to spark greater competition in a market for toxic assets monopolised by a state-run bad bank.

Source: FT

Non-headline:

Bernanke’s Heroism

He still works seven days a week, but earlier this month he took two days off — for the first time in two years — to attend his son’s wedding. And he often gets home for dinner and even out to baseball games every few weeks.

Source: NYT

Other economists said that because whichever party winning next year’s election would have to cut spending and raise taxes to close the enormous budget deficit, the resulting fiscal squeeze would mean interest rates would probably be kept very low to keep the economy movi

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