Published: Wednesday, October 1, 2008
Consumer confidence in economy up last month
Americans' confidence in the economy unexpectedly improved in September, but it still hovers near a 16-year low as they wrestle with a weak job market, higher food and fuel prices, and the worst financial crisis in decades. The Conference Board said Tuesday that its Consumer Confidence Index is now at 59.8, up from a revised 58.5 in August. Economists surveyed by Thomson/IFR expected a reading of 55.5. The survey, which is based on a sample of 5,000 U.S. households, aims at measuring how much faith people have in the job market and in the economy now and over the next six months.
Crude oil prices rise over $100
Oil prices swung back above $100 a barrel Tuesday following a precipitous plunge a day earlier, with a growing consensus among investors that Congress will resurrect a failed U.S. financial bailout plan. Light, sweet crude for November delivery rose $4.27 to settle at $100.64 a barrel on the New York Mercantile Exchange, after earlier rising as high as $101.40. On Monday, prices fell $10.52 to settle at $96.37 -- the second largest drop ever in dollar terms -- after House legislators rejected the $700 billion bailout, stunning investors and raising fears of a long economic crisis.
Hollywood sues over copy software
Hollywood's six major movie studios on Tuesday sued RealNetworks Inc. to prevent it from distributing DVD copying software that they said would allow consumers to "rent, rip and return" movies or even copy friends' DVD collections outright. The studios stand to lose key revenue from the sale of DVDs, estimated by Adams Media Research at $14 billion this year, if consumers stop buying DVDs and copy rental discs from outlets such as Netflix and Blockbuster instead. The suit, filed in U.S. District Court in Los Angeles, alleges RealNetworks' RealDVD program, which launched Tuesday, illegally bypasses the copyright protection built into DVDs.
Credit markets remain stymied
Stocks are rebounding and a new bailout package could be coming soon, but the credit markets -- where day-to-day borrowing keeps the economy turning -- are still stuck. Even relatively healthy businesses are being left out in the cold. Randall Stephenson, the CEO of AT&T Inc., said Tuesday that when he tried to get short-term cash last week by selling commercial paper, no one was willing to lend anything for longer than overnight. Many small businesses can't get funding for supplies and in some cases are falling behind on their payrolls.
Home prices fall sharply
A closely watched index released Tuesday showed home prices tumbling by the sharpest annual rate ever in July, and though the monthly rate of decline is slowing, there is no turnaround in sight. The Standard & Poor's/Case-Shiller 20-city housing index fell a record 16.3 percent in July from the year-ago month, the largest drop since its inception in 2000. The 10-city index plunged 17.5 percent, its biggest decline in its 21-year history. Prices in the 20-city index have plummeted nearly 20 percent since peaking in July 2006.
From Herald news services
Crude oil prices rise over $100
Oil prices swung back above $100 a barrel Tuesday following a precipitous plunge a day earlier, with a growing consensus among investors that Congress will resurrect a failed U.S. financial bailout plan. Light, sweet crude for November delivery rose $4.27 to settle at $100.64 a barrel on the New York Mercantile Exchange, after earlier rising as high as $101.40. On Monday, prices fell $10.52 to settle at $96.37 -- the second largest drop ever in dollar terms -- after House legislators rejected the $700 billion bailout, stunning investors and raising fears of a long economic crisis.
Hollywood sues over copy software
Hollywood's six major movie studios on Tuesday sued RealNetworks Inc. to prevent it from distributing DVD copying software that they said would allow consumers to "rent, rip and return" movies or even copy friends' DVD collections outright. The studios stand to lose key revenue from the sale of DVDs, estimated by Adams Media Research at $14 billion this year, if consumers stop buying DVDs and copy rental discs from outlets such as Netflix and Blockbuster instead. The suit, filed in U.S. District Court in Los Angeles, alleges RealNetworks' RealDVD program, which launched Tuesday, illegally bypasses the copyright protection built into DVDs.
Credit markets remain stymied
Stocks are rebounding and a new bailout package could be coming soon, but the credit markets -- where day-to-day borrowing keeps the economy turning -- are still stuck. Even relatively healthy businesses are being left out in the cold. Randall Stephenson, the CEO of AT&T Inc., said Tuesday that when he tried to get short-term cash last week by selling commercial paper, no one was willing to lend anything for longer than overnight. Many small businesses can't get funding for supplies and in some cases are falling behind on their payrolls.
Home prices fall sharply
A closely watched index released Tuesday showed home prices tumbling by the sharpest annual rate ever in July, and though the monthly rate of decline is slowing, there is no turnaround in sight. The Standard & Poor's/Case-Shiller 20-city housing index fell a record 16.3 percent in July from the year-ago month, the largest drop since its inception in 2000. The 10-city index plunged 17.5 percent, its biggest decline in its 21-year history. Prices in the 20-city index have plummeted nearly 20 percent since peaking in July 2006.
From Herald news services
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