European Recovery Means Little for Jobless
Generation - (www.bloomberg.com) Francisco
Justicia Carrasco has been sending off 50 resumes every Monday for more than
three years. He doesn’t expect a job for a long time to come yet. “The
situation is screwed up,” said the 28-year-old who lives in Ripollet, close to
Barcelona, and has worked in a range of jobs from shop cashier to packaging
over the past decade. “I don’t see any improvement at all from last year or
even the year before.” Carrasco is one of the legion of unemployed across Europe’s southern periphery who are seeing little
benefit from an economic recovery that pulled the euro region out of its longest-ever recession in the second quarter. More than a third
of the bloc’s jobless are in Greece and Spain. In Greece, 64.9 percent of
those aged between 15 and 24 are without work.
Egypt
imposes state of emergency after 95 people killed - (www.reuters.com) Egyptian
security forces crushed the protest camps of thousands of supporters of the
deposed Islamist president on Wednesday, shooting almost 200 of them dead in
the bloodiest day in decades and polarizing the Arab world's most populous
nation. At least 235 people were killed in all, including at least 43 police,
and 2,000 wounded, a health official said, in fierce clashes that spread beyond
Cairo to towns and cities around Egypt.
Deposed president Mohamed Mursi's Muslim Brotherhood said the death toll of
what it called a "massacre" was far higher.
Wal-Mart
sales disappoint as shoppers worldwide curb spending - (www.reuters.com) Wal-Mart Stores Inc.
reported a surprise decline in quarterly same-store sales in the United States,
its biggest market, after shoppers came in less often because higher taxes and
gasoline prices were leaving them with less spending money. The world's largest
retailer also cut its revenue and profit forecasts for its fiscal year, raising
concerns about retail spending
as the all-important holiday season nears. It cited weak results from the
United States, as well as Canada, Mexico, Japan and
other international markets that
it is relying on for long-term growth. Shares of Wal-Mart were down 2.4 percent
at $74.59 in midday trading. U.S. sales at stores open at least a year at the
company's main Walmart
chain fell 0.3 percent in the second quarter ended in late July, the company
said on Thursday. Wall Street analysts were expecting a 1 percent gain,
according to Thomson Reuters I/B/E/S.
U.S.
Net Outflow of Long-Term Securities Rises to $66.9 Billion - (www.bloomberg.com) Foreign
selling of U.S. long-term portfolio assets rose for a second straight month in
June as investors abroad sold equities and a record amount of Treasury notes
and bonds, a government report showed. The net long-term portfolio investment outflow was
$66.9 billion after a $27 billion net decline in May, the Treasury Department
said in a statement today in Washington. Net selling of long-term Treasuries by
private foreign investors increased to $40.1 billion from $29 billion the prior
month, the department said. Private foreign investors were net sellers of all
categories of U.S. long-term portfolio assets -- government debt, agency
securities, corporate bonds and stocks in June, the report showed. As U.S.
growth strengthens and the world economy improves, investors may be more
willing to take on risks elsewhere before the Federal
Reserve starts
reining in monetary stimulus, economists said.
Fitch
and Fed warn on risks from ETFs - (www.ft.com) Parts
of the booming market for exchange traded funds risk worsening broader market
sell-offs or triggering crashes, according to two studies released this week. The
reports, from the Federal Reserve and Fitch Ratings, come weeks after a sharp
sell-off in fixed income sparked scrutiny of certain ETFs and
the structure of
the industry, which has grown to a market worth more than $2tn. ETFs allow
investors quick and easy exposure to a range of assets that might otherwise be
difficult to access. But the two reports warn that certain of the investment
tools – corporate bond ETFs and so-called “leveraged ETFs” – could destabilise
broader markets. ETFs that seek to replicate the performance of corporate bonds
risk intensifying a sell-off in the underlying debt, according to rating agency
Fitch.
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