Quick Notes for the Day - December 10

Initial Jobless Claims Rise - The Labor Department reported that the number of people filing claims for state unemployment benefits rose by 17,000 to a seasonally adjusted 474,000. This marked the first rise in initial claims in six weeks. The number of people collecting state benefits fell by 303,000 to a seasonally adjusted 5.16 million in the week ending Nov. 28.

Trade Gap Narrows in October - The Commerce Department reported that trade deficit narrowed by 7.6% in October to $32.9 billion since exports rose faster than imports during the month. Crude oil imports were down in the month and contributed to the decrease. The deficit for the year now totals $304 billion, down sharply from $610.8 billion in the same period one year ago.

Bank of England Leaves Rates Unchanged - The Bank of England left its key lending rate unchanged at a record low of 0.5%. The central bank said its Monetary Policy Committee made no changes to the bank's 200 billion pound ($324 billion) asset-purchase program.

Natural Gas Inventories Drop - The Energy Information Administration reported that natural gas inventories fell for the first time in nine months, down 64 billion cubic feet. On the news, natural gas futures spiked up 7%.

AT&T May Have to Limit iPhone Users - By Charley Blaine - MSN - "OK, you truly wild and crazy iPhone users.

You know who you are: the ones who check out every application, play every game, call up every piece of news and check out every restaurant within 100 miles.

You are causing AT&T (T) a big problem. You're swamping the system, and AT&T, which has an exclusive right to market the iPhone in the United States, wants you to get a life and dial back. "

Quick Notes For the Day - December 9

Treasury extends bailout program to October 2010 - By David Lawder - Reuters - "Treasury Secretary Timothy Geithner on Wednesday moved to extend the government's $700 billion bailout fund into October 2010 and pledged to deploy no more than $550 billion of it."

Britain to Impose a 50% Tax on Banker Bonuses - Chancellor of the Exchequer Alistair Darling said in his annual pre-budget report (outlines budget and deficits) that he wanted to give the banks a choice since all benefited directly or indirectly from massive government aid. "They can use their profits to build up their capital base. But if they insist on paying substantial rewards, I am determined to claw money back for the taxpayer," he said. Essentially, any bonuses above 25,000 pounds would be taxed at 50%.

Industry and banker associations in the UK immediately opposed the idea. Richard Lambert,director general of the Confederation of British Industry, said the threat of top bankers leaving the U.K. is real. "A headline-grabbing tax on bankers' bonuses may have populist appeal, but the government needs to take care not to put the U.K.'s financial services sector at a comparative disadvantage internationally," Lambert said in a statement. Meanwhile, Angela Knight, chief executive of the British Bankers' Association, stated, "The U.K.'s banks have already agreed to observe pay restraints where bonuses are mostly deferred and paid in shares. We are already well ahead of the other G20 countries in doing this." "Only concerted international agreements will succeed in reforming remuneration in the financial sector," she added.

Oil Down After Data - The Energy Information Administration reported crude inventories fell 3.8 million barrels in the week ended Dec. 4, . Gasoline inventories, however, rose 2.2 million barrels, as more gasoline was produced than what's needed. Distillate stockpiles, which include heating oil and diesel, also rose 1.6 million barrels. Crude fell since refiners used more oil to produce petroleum products while crude imports declined.

Points of View - December 6

Two main topics continue to be the hot items this week - health care and climate change. Read some of the varying views below...

Health Care

No Way, No How, to the Public Option - An Interview with Joe Lieberman - By Kimberley A. Strassel - The Wall Street Journal - "The senator from Connecticut doesn't look sorry. Sitting in his office on Wednesday, he looks like he's having the time of his life. Ever since his bruising 2006 re-election, in which he quit the Democratic Party to run as an independent, Mr. Lieberman has been a man unleashed. He's caucused with Democrats yet campaigned for John McCain. He's enthusiastically supporting President Barack Obama's Afghanistan surge and just as spiritedly criticizing his decision to try 9/11 terrorists in U.S. courts. He's joined Democrats to reform health care, even as he's promised to torpedo their government-run insurance option."

Senate Health Care Follies - The New York Times - "The first week of debate on the Senate’s health care bill was a depressing mixture of foolish posturing by members of both parties and blatant obstructionism by Republicans. If this is the best the Senate can do, we are in for very rough going."

Blue Cross Blue Patients - The Wall Street Journal - "Another day, another study confirming that ObamaCare will increase the price of health insurance. The Blue Cross Blue Shield Association has found that premiums in the individual market will rise on average by 54% over the status quo, which translates into an extra $3,341 a year for families and $1,576 for singles. The White House denounced the report as a 'sham' before it was even released, which shows how seriously it takes such concerns."

Climate Change

Stopping Climate Change - The Economist - "At a time when they are not short of pressing problems to deal with, the presence of 100-odd world leaders at the two-week meeting that starts in Copenhagen on December 7th to renew the Kyoto protocol on climate change might seem a little self-indulgent. There will be oceans of planet-saving rhetoric, countless photographs of politicians wearing dark suits and serious faces and, if things go according to plan, an agreement to cut emissions to avert a rise in temperature that might anyway have turned out to be marginal and self-correcting."

Will Big Business Save the Earth? - By Jared Diamond - The New York Times - "There is a widespread view, particularly among environmentalists and liberals, that big businesses are environmentally destructive, greedy, evil and driven by short-term profits. I know — because I used to share that view. But today I have more nuanced feelings. Over the years I’ve joined the boards of two environmental groups, the World Wildlife Fund and Conservation International, serving alongside many business executives."

Quick Notes for the Day - December 4

Jobs Data Points to Slowing Job Losses - Unemployment Improves to 10% - The Labor Department reported that the labor market has dramatically improved over the past several months with the unemployment rate improving to 10%. Nonfarm payrolls dropped by a seasonally adjusted 11,000 in November which is the fewest since December 2007. Payroll losses in September and October were both revised lower by a total of 159,000 which helped lead to the revision in the unemployment figure. Analysts had expected job losses to be over 100,000 jobs and the unemployment rate to remain at 10.2%.

Oil, Gold Both Drop on Stronger Dollar and Jobs Data - Well, it looks like the continued rise in gold was put on hold for at least one day as gold futures dropped more than 4% or $50 on a stronger dollar and a much better jobs report. Crude oil also had fallen on the stronger dollar by about 1%.

October Factory Order Rise - The Commerce Department reported that orders for factory goods increased 0.6% in October. October marks the six month out of the last seven that factory orders have risen. Factory orders were led by a 1.6% rise in nondurable-goods orders. Core capital equipment orders fell 3.4% in October, revised down from a 2.9% fall estimated a week ago, the government said. Inventories rose 0.4% in October, the first gain following 13 straight declines.

Fed Futures See Interest Rate Increases in August - Interest-rate futures indicated traders expect that the Federal Reserve will increase its target rate by August 2010 on the basis of the better than expected jobs data this morning. The August 2010 fed funds contract indicated traders expect rates to rise to 0.50% by then, compared to a 0.34% rate a week ago and from the current range of zero to 0.25%. Futures for December 2010 show traders expect the benchmark rate to be 0.94% by then, compared to 0.81% on Thursday.

Obama Says Jobs Data Good - But Not Good Enough - "We have a lot more work to do before we can celebrate," Obama said at previously scheduled Allentown, PA town hall event to discuss jobs. "Too many members of our American family have felt the gut punch of a pink slip."

"Every one of us knows someone who has been swept up by this storm." The steps taken earlier this year "have helped turn the tide," he said, promising to announce more ideas "to help jumpstart private sector hiring and get Americans back to work."

In the Q&A section of the event, he was pressed on small business credit issues and healthcare which he stated he was working with Congress to address both issues.

Quick Notes for the Day - December 3

Initial Jobless Claims Drop 5,000 - The Labor Department reported new claims for state unemployment benefits dropped by 5,000 to 457,000. This marks the fifth straight week of declines. This is the fewest initial claims since September 2008. The total number of people claiming benefits rose by 527,000 to 9.61 million, as a new program for extended benefits kicked in.

Productivity Revised Down - Still Best in 6 Years - The Labor Department reported that nonfarm business productivity increased at an 8.1% annual rate in the third quarter which is a revision from last month's 9.5% estimate. Unit labor costs fell 2.5% which is higher than the negative 5.2% decline. In manufacturing, productivity increased at a record 13.4% annual rate and unit labor costs fell 6.1% annualized.

Service Sector Contracts in November - The Institute for Supply Management reported that the service sectors of the economy contracted in November to 48.7% from 50.6% in October. This followed two months of expansion in the service sector. Six of 18 industries were expanding in November, the ISM said. The employment index rose to 41.6% from 41.1%. The new orders index fell to 55.1% from 55.6%.

Natural Gas Inventories Rise - The Energy Information Administration reported that natural gas inventories rose 2 billion cubic feet last week. At the current level, stocks were 470 billion cubic feet higher than last year at this time and 487 billion cubic feet above the five-year average.

NBC deal seen as a step toward more focused GE - By Scott Malone - Reuters - "The long-expected sale of the media business, which accounted for about 10 percent of GE revenue, focuses the world's biggest maker of jet engines and electricity-generating turbines more tightly on its core business of selling heavy equipment and financing the purchase of it."

Quick Notes for the Day - December 1

Cyber Monday a Big Hit - According to Coremetrics, sales from "Cyber Monday" rose 13.7% from last year and beat Black Friday's sales figures - 24.1% higher.

Cyber Monday shoppers spent about $180.03 per online order, up 38.2% from the 2008 level when consumers spent an average of $130.24. Cyber Monday shoppers also bought nearly 10% more items than this year's Black Friday shoppers, and 30% more than during last year's Cyber Monday.

Pending Home Sales Index Rises - The National Association of Realtors reported that the pending home sales index rose a seasonally adjusted 3.7% in October from September - the ninth straight month of increase. The index is up 31.8% year over year and 6% from September. The index tracks sales contracts on pre-owned homes.

ISM Still Shows Expansion - The Institute for Supply Management reported that the ISM manufacturing index fell to 53.6% from 55.7% in October - still the fourth straight month of improvement though. Readings over 50% indicate more firms said they were growing than said they were contracting. In November, 12 of 18 industries were expanding. The new orders index rose to 60.3% from 58.5% in October. The production index fell to 59.9% from 63.3% in October. The inventories index fell to 41.3% from 46.9% n October.

Fed's Plosser Calls For Higher Rates - In a speech on Tuesday, Philadelphia Fed President Charles Plosser said the Fed needed to start raising interest rates sooner rather than later and had to begin withdrawing excess cash from the financial system. If the Fed does not act soon "the inflation rate is likely to rise to levels that most would consider unacceptable," he warned. Plosser will not be a voting member of the Fed interest-rate committee until 2011. Plosser was estimating GDP growth to average around a 3% annual rate over the next two years.