Page 24 - ARUBA TODAY

Tuesday 4 July 2017 BUSINESS
A24

American construction spending remains flat in May

By MATT OTT lows a report two weeks limited inventory and rising a seasonally adjusted an- could still happen with revi-
Associated Press ago showing that hous- prices. nual rate of $1.23 trillion, sions next month.
WASHINGTON (AP) — U.S. ing starts fell for the third Private residential construc- the same as last month’s “Construction activity,
construction spending was straight month. tion fell 0.6 percent in May, revised figure. unfortunately, continues
flat in May with homebuild- Economists have been the first decline in that cate- The flat May number fol- to disappoint,” said Jen-
ing falling again, even as expecting housing con- gory since April 2016 and its lows April’s decline of 0.7 nifer Lee, an economist
buyers face climbing prices struction to play a key role biggest decline since a 0.6 percent, which was revised with BMO Capital Markets.
and a shortage of avail- in supporting overall eco- percent drop in July 2014. from an originally reported “If June is flat again, that
able properties on the mar- nomic growth in 2017 as Non-residential construc- drop of 1.7 percent. would mean a negative
ket. demand for homes rises tion declined 0.7 percent, Analysts last month said quarter for construction.”
The Commerce Depart- amid low unemployment the fifth straight monthly they thought April’s dismal Government construction
ment reported on Monday and rising incomes. decline for the category. number was an anomaly spending rose at the state
no increase in construction However, many buyers Overall construction and had expected a mod- and federal levels after de-
spending in May, which fol- have been frustrated by spending was reported at est rebound in May, which clines last month. q
Gains for energy companies and banks boost stock indexes

manufacturing activity finished higher.
climbed in June to its high- Banks continued their re-
est level in almost three cent winning ways as bond
years. yields and interest rates in-
“The market clearly liked creased further.
that number,” said Scott Higher interest rates let
Wren, senior global equity banks make more money
strategist for Wells Fargo In- from lending, and that
vestment Institute. helped financial compa-
He said that economic nies rally last week. Major
reports over the last few banks also raised their divi-
months have been a bit dends and said they will
disappointing, but “It’s still buy back more stock. JPM-
in line with expectations for organ Chase added $1.85,
modest GDP growth.” or 2 percent, to $92.75 and
The Standard & Poor’s 500 Citigroup rose $1.38, or 2.1
index added 5.61 points, percent, to $68.26. Morgan
or 0.2 percent, to 2,429.02. Stanley climbed $1.05, or
The Dow Jones industrial 2.4 percent, to $45.61.
average rose 129.64 points, Bond prices fell. The yield
or 0.6 percent, to 21,479.27. on the 10-year Treasury
The Russell 2000 index of note rose to 2.34 percent
smaller-company stocks from 2.30 percent.
Trader Gregory Rowe, center, works on the floor of the New York Stock Exchange. U.S. stocks added 11.32 points, or 0.8 U.S. factories did more
rose Monday as banks continued to climb along with interest rates, and energy companies percent, to finish at a re- work in June, according
rallied again with oil prices. cord high of 1,426.68. to the Institute for Supply
(AP Photo/Richard Drew) The Nasdaq composite Management. The group’s
By MARLEY JAY sales and a strong report interest rates continued to lost 30.36 points, or 0.5 per- survey of manufacturing
AP Markets Writer on U.S. factories also boost- rise. cent, to 6,110.06. That was reached its highest level
NEW YORK (AP) — U.S. ed stocks. Companies that stand to a six-week low, as tech- since August 2014.
stocks rose Monday as Energy companies made benefit from faster eco- nology companies have That suggests the economy
banks continued to climb large gains in Monday’s nomic growth, like indus- been slumping for almost a could be getting stronger
along with interest rates, abbreviated trading ses- trial companies and basic month. and that U.S. manufactur-
and energy companies ral- sion as oil prices rose for the materials makers, climbed Overall, almost three- ing continues to recover af-
lied again with oil prices. eighth day in a row. Banks after the Institute for Sup- fourths of the stocks on the ter a slump in late 2015 and
Better-than-expected auto rose as bond yields and ply Management said U.S. New York Stock Exchange early 2016.q

Barclays, execs in UK court over fraud allegations

By DANICA KIRKA Britain against a bank and June and October of 2008. Varley, 61, former invest- kins were charged with an-
Associated Press former executives for ac- The probe centered on ment banking chief Roger other count in regard to the
LONDON (AP) — Barclays tivities during the crisis. two side agreements un- Jenkins, 61, Thomas Kalaris, second round of financ-
and four of its former ex- At the heart of the case is der which Barclays paid 61, who headed the bank’s ing, as well as a separate
ecutives, including the ex- the question of whether the Qatari investors 322 mil- wealth management divi- charge of providing unlaw-
CEO, appeared in court Barclays hid the true nature lion pounds ($406 million) sion, and Roger Boath, 58, ful financial assistance.
in Britain on Monday on of the fundraising plan with over five years, the bank head of the European fi- In bailing all four, senior
charges of conspiracy to Qatar from authorities and disclosed in 2013. nancial institutions group, district judge Emma Ar-
commit fraud connected other shareholders. Ex-CEO John Varley, the were all charged with con- buthnot ordered Jenkins
with efforts to raise funds The charges follow an in- other defendants, and a spiracy to commit fraud and Kalaris to pay a secu-
from Qatar and avoid a vestigation by the Seri- bank representative ap- by false representation in rity each of 500,000 pounds
bailout during the 2008 fi- ous Fraud Office into two peared at Westminster relation to the first round of because Jenkins lives in the
nancial crisis. rounds of fundraising by Magistrates’ Court on Mon- fundraising. United States and Kalaris is
The charges are the first in Barclays from Qatar in day. Barclays, Varley and Jen- a dual national.q