Page 24 - ARUBA TODAY

Thursday 8 June 2017 BUSINESS
A24

Consumers increased borrowing by smallest amount since 2011

By MATT OTT 2.6 percent, to $3.8 trillion. Consumer borrowing is growth in consumer credit month that U.S. household
Associated Press It was the smallest percent- closely watched by econ- will remain strong this year, debt had reached a re-
WASHINGTON (AP) — age increase since borrow- omists to determine con- reflecting low unemploy- cord high in the first quarter
American consumers in- ing declined 3.5 percent in sumers’ willingness to take ment and strong consumer of 2017, topping the previ-
creased their borrowing at August 2011. on more debt to support confidence. ous peak reached in 2008,
the slowest pace in April The category that includes their spending. Consumer The Labor Department re- when the financial crisis
than they have in almost six student and auto loans in- spending accounts for 70 ported slightly sluggish job plunged the economy into
years. Credit card spend- creased $6.7 billion, or 2.9 percent of U.S. economic gains last week, but it was a deep recession.
ing growth slowed, while percent — also the smallest activity. The Commerce enough to nudge the un- Even with debt levels back
borrowing gains for school increase in that category Department reported employment rate down to to record heights, analysts
and autos also cooled. since August 2011. last month that consumer 4.3 percent, its lowest level say that household borrow-
The Federal Reserve reports Credit card borrowing in- spending rose in April in in 16 years. ing appears more sustain-
that total consumer bor- creased $1.5 billion, or 1.8 part due to solid gains in in- The Federal Reserve Bank able now than it did nearly
rowing rose $8.2 billion, or percent. comes. Economists believe of New York reported last a decade ago.q

Banks lead US stocks slightly higher; oil slumps

administration: deregula- say Trump asked Comey if
tion, reduced taxes and he could back off an inves-
improved infrastructure, tigation into Michael Flynn,
because they have been who was fired as national
delayed, delayed and de- security adviser because
layed,” said Erik Davidson, he misled the White House
chief investment officer for about his ties to Russia.
Wells Fargo Private Bank. Investors will try to glean
The Standard & Poor’s 500 how the outcome of the
index rose 3.81 points, or 0.2 hearing may play into
percent, to 2,433.14. the administration’s ef-
The Dow Jones industrial av- forts to forge ahead with
erage gained 37.46 points, Trump’s pledge to cut tax-
or 0.2 percent, to 21,173.69. es, increase infrastructure
The Nasdaq composite in- spending and implement
dex added 22.32 points, or other business-friendly poli-
0.4 percent, to 6,297.38. The cies.
Russell 2000 index of small- Financials were the biggest
company stocks picked up gainers in the S&P 500, ris-
1.78 points, or 0.1 percent, ing 0.8 percent. The sector
to 1,396.67. is up 23 percent this year.
The major indexes remain Speculation that the Feder-
slightly below record highs al Reserve may raise its key
Traders Michael Smyth, left, and Eugene Mauro work on the floor of the New York Stock Exchange.
Banks and other financial companies led U.S. stocks slightly higher Wednesday, snapping a two- set late last week. interest rate at a meeting
day losing streak for the market. Stocks wavered between of policymakers next week
(AP Photo/Richard Drew) small gains and losses early likely helped lift the sector
Wednesday as investors on Wednesday, said Da-
By ALEX VEIGA of U.S. crude oil, which fell former FBI Director James weighed the latest com- vidson.
AP Business Writer 5.1 percent, its biggest Comey, part of a congres- pany earnings reports. Higher interest rates allow
Banks and other financial single-day drop in nearly sional investigation into Comey’s appearance banks and credit card is-
companies led U.S. stocks three months. Russia’s possible election before the Senate intelli- suers to charge more for
slightly higher Wednesday, Trading was mostly sub- meddling. gence committee will be loans, which boosts profits.
snapping a two-day losing dued, with the major in- “From an investor perspec- his first public comments JPMorgan Chase gained
streak for the market. dexes trading in a narrow tive it would be nice to get since he was abruptly oust- 95 cents, or 1.2 percent, to
The latest gains were par- range as investors sized up another potential distrac- ed by President Donald $83.91. American Express
tially offset by a slide in en- the latest company earn- tion out of the way and Trump on May 9. The for- rose $96 cents, or 1.2 per-
ergy companies following ings and looked ahead to move toward the three-
a steep slump in the price testimony Thursday from fold mandate of the Trump mer director’s associates cent, to $79.81.q
Spanish bank buyout showcases Europe’s new anti-crisis rules

ARITZ PARRA which had lost more than eurozone, the European to move banking supervi- including 7.2 billion euros
Associated Press half their value since last Central Bank, said Tuesday sion to the EU level — so- ($8.1 billion) in real estate.
MADRID (AP) — Spain’s week as concerns grew that it believed Popular called “banking union” As confidence waned in
Banco Santander is paying about the lender’s financial was “failing or likely to fail.” — due to concerns that Popular, shares in the bank
1 euro to take over trou- health. It will raise around 7 It was the first time the ECB national regulators were fell about 38 percent last
bled rival Banco Popular, billion euros ($7.9 billion) in had pulled the plug on a too slow to flag problems week and another 20 per-
in a deal that showcases a share issue to strengthen bank since it was given at their home banks. The cent this week, to 0.32 eu-
Europe’s new system to Banco Popular’s balance new powers aimed at pre- ECB took over supervisory ros per share before regu-
rescue failing banks with- sheet. venting the rescue of banks responsibility on in Novem- lators halted trading in its
out burdening taxpayers or The takeover was con- from overwhelming gov- ber 2014. shares ahead of Wednes-
stressing markets. ducted in an auction ernment finances, as they Madrid-based Popular has day’s market opening.
Santander said Wednes- sanctioned by European did during the eurozone’s been struggling with 7.9 Popular had 305,152 share-
day it will take over all the authorities after the main debt crisis. billion euros ($ 8.9 billion) holders as of the end of
shares in Banco Popular, banking regulator in the European leaders agreed in non-performing assets, March.q