Page 25 - Aruba Today
P. 25
BUSINESS A25
Thursday 24 December 2015
STREET BRIEFS US consumer spending, incomes up in November
Norfolk Southern M. CRUTSINGER A man carries bags out of a department store, in Alameda, Calif. U.S. consumer spending re-
rejects Canadian AP Economics Writer bounded in November after a weak showing in October, while a key inflation gauge posted the
Pacific buyout bid WASHINGTON (AP) — U.S. fastest year-over-year increase in 11 months. The Commerce Department said Wednesday, Dec.
consumer spending re- 23, that consumer spending increased 0.3 percent in November after an essentially flat reading in
OMAHA, Neb. (AP) — Nor- bounded in November af- October and a 0.2 percent gain in September.
folk Southern still isn’t in- ter a weak showing in Oc-
terested in Canadian Pa- tober, while a key inflation (AP Photo/Ben Margot)
cific’s sweetened offer of gauge posted the fastest
roughly $31 billion to buy year-over-year increase in ber compared with a year raise rates three or four secutive month core infla-
the railroad. 11 months. ago, the biggest year- times in 2016. tion has recorded a 1.3
Norfolk Southern’s board Spending increased 0.3 over-year jump since last The 0.4 percent year-over- percent yearly increase.
unanimously rejected the percent in November after December. Inflation is be- year increase in the infla- The personal saving rate
latest offer Wednesday an essentially flat reading ing closely watched by the tion gauge tied to consum- edged down to 5.5 per-
because the bid remains in October and a 0.2 per- Federal Reserve to deter- er spending came after a cent of after-tax income
“grossly inadequate” and cent gain in September, mine the pace for hiking 0.2 percent yearly rise in in November compared to
unlikely to be approved by the Commerce Depart- interest rates. October. It was the biggest 5.6 percent in October.
regulators. Norfolk South- ment said Wednesday. The Fed boosted a key rate 12-month jump since a 0.8 The data on consumer
ern says if Canadian Pacif- Personal income rose a for the first time in nearly percent increase in De- spending was inadver-
ic is serious about the offer, solid 0.3 percent in Novem- a decade last week by a cember of last year. tently released by the gov-
it should ask regulators for ber, reflecting solid gains in quarter-point to 0.25 per- Yellen has said that she ernment on Wednesday,
preliminary approval of the wages and salaries, after cent to 0.5 percent. Fed expects overall inflation ahead of the scheduled
deal’s proposed structure. a 0.4 percent October in- Chair Janet Yellen said to move up in 2016 as the Thursday release time. The
Canadian Pacific rejected crease. that the Fed will be closely favorable effects of last Bureau of Economic Analy-
that idea last week as un- Economists are predicting watching progress in meet- year’s big declines in gaso- sis, the Commerce agency
necessary. Canadian Pa- that further improvement ing the Fed’s 2 percent line start to fade. Outside which produces the spend-
cific spokesman Martin Cej in the job market will sup- inflation target to help de- of food and energy, core ing report, said it would
said the railroad couldn’t port consumer spending in termine the pace of future inflation was up 1.3 percent take steps to guard against
immediately comment coming months. rate hikes. Many econo- in November compared to future early releases of sen-
Wednesday morning. Ca- Paul Ashworth, chief U.S. mists believe the Fed will a year ago, the 11th con- sitive data. q
nadian Pacific has estimat- economist at Capital Eco-
ed that its cash and stock nomics, said that the new
offer could be worth as economic data supported
much as roughly $40 billion his view that the overall
to $45 billion. economy will expand at a
But much of that is based moderate 2 percent rate
on the projected value of in the current October-De-
stock in a new company cember quarter, helped
that would own both rail- by solid growth in consum-
roads. er spending.
“Even if investment ends
Turing cuts jobs, up being a bit weaker than
looks for new CEO we were expecting, real
consumption growth is on
after Shkreli left track for a 2.5 percent an-
nualized gain in the fourth
TALI ARBEL quarter,” Ashworth said
AP Business Writer in a research note. Con-
NEW YORK (AP) — Tur- sumer spending grew at a
ing Pharmaceuticals, the 3 percent rate in the July-
company formerly led by September quarter.
pharma bad boy Martin A key inflation gauge was
Shkreli, says it has cut jobs, up 0.4 percent in Novem-
“realigned its business pri-
orities” and is looking for Orders for US durable goods unchanged in November
a new permanent CEO.
Shkreli resigned Friday, AP Economics Writer ucts and fabricated met- U.S. goods more expensive High Frequency Econom-
a day after his arrest on als accelerated last month, overseas and less competi- ics. Much of this year’s de-
charges of securities fraud WASHINGTON (AP) — Fac- but their gains were offset tive. Lower oil prices have cline in orders comes from
related to a company he by declines in machinery also squeezed demand for a 36.9 percent drop in the
previously ran. He pleaded tory orders for long-lasting and non-defense aircraft. pipelines and equipment commercial aircraft cat-
not guilty and was released Orders for capital goods by energy companies. egory, along with waning
on $5 million bail. goods such as autos, air- not including aircraft — a “The manufacturing sec- demand for machinery
He had been reviled for key proxy for business in- tor still looks fairly weak — and primary metals. Those
hiking the price of Da- planes and electronics vestment — fell 0.4 percent. weaker than non-manu- losses have hurt factory hir-
raprim by 5,000 percent. Durable goods orders have facturing, reflecting more ing in recent months and
It’s the only approved were flat in November, as tumbled 3.7 percent year- exposure to declining ex- cut into exports abroad.
drug for toxoplasmosis, a to-date. Slow economic ports, a plunge in oil-related The dollar has appreciated
life-threatening parasitic the impact of a strong dol- growth among major U.S. investment and an invento- more than 11 percent in
infection that mainly strikes trading partners — includ- ry cycle” where wholesal- the past 12 months against
pregnant women, cancer lar and struggling global ing Europe, China and Ja- ers are reducing their stock- a basket of foreign curren-
patients and AIDS patients. pan — has caused the dol- piles, said Jim O’Sullivan, cies, according to the Fed-
q economy weigh on U.S. lar to rise in value, making chief U.S. economist at eral Reserve q
manufacturers. Orders
for durable goods were
nearly unchanged in No-
vember after a 2.9 percent
increase in October, the
Commerce Department
said Wednesday. Demand
for autos, electronic prod-
