WASHINGTON (AP) -- The
unemployment rate jumped almost half a point to 9.7 percent in August, the
highest since 1983, reflecting a poor job market that will make it hard for the
economy to begin a sustained recovery.
While the jobless rate rose
more than expected, the economy shed a net total of 216,000 jobs, less than
July's revised 276,000 and the fewest monthly losses in a year, according to
Labor Department data released Friday. Economists expected the unemployment
rate to rise to 9.5 percent from July's 9.4 percent and job reductions to total
225,000.
By contrast, in a healthy
economy, employers need to add a net total of around 125,000 jobs a month just
to keep the unemployment rate stable.
WTO rules for US in case
over Airbus subsidies
WASHINGTON (AP) -- The World
Trade Organization has ruled that the European Union provided illegal subsidies
to Airbus for its aircraft, a House Democrat said Friday.
Washington state's Norm
Dicks, who was briefed by U.S. trade officials of the confidential decision,
said the WTO ruling confirms a complaint by the U.S. in 2004 that shows
"all Airbus aircraft have received illegal subsidies and that these have
caused material harm to Boeing."
The WTO handed its interim
ruling to the U.S. and European Union, but didn't reveal the results partly
because of the sensitive company information contained in it. Both Washington
and Brussels confirmed they received the ruling.
In its suit, the U.S.
claimed government subsidies for Airbus created unfair competition in a market
worth $3 trillion over the next two decades. The ruling could set important
precedents on how far governments can go to support the aviation industry.
Stocks jump as jobs report
provides a little hope
NEW YORK (AP) -- Stocks
jumped in light trading Friday after the government reported that the pace of
job losses slowed in August to the lowest level in a year.
The Dow Jones industrial
average gained 97 points to halve its loss for the week after the Labor
Department said employers cut fewer workers last month. However, the report
also showed that the ranks of the unemployed swelled to 9.7 percent, the
highest level since June 1983.
Analysts had been expecting
the rate to increase to 9.5 percent after unexpectedly dipping in July. The
increase initially spooked the market, but stocks later recovered their losses
and moved higher. Many economists expect the rate to top 10 percent by early
next year.
Revised formula counts more
Americans in poverty
WASHINGTON (AP) -- The
poverty rate among older Americans could be nearly twice as high as the
traditional 10 percent level, according to a revision of a half-century-old
formula for calculating medical costs and geographic variations in the cost of
living.
The National Academy of
Science's formula, which is gaining credibility with public officials including
some in the Obama administration, would put the poverty rate for Americans 65
and over at 18.6 percent, or 6.8 million people, compared with 9.7 percent, or
3.6 million people, under the existing measure.
The original government
formula, created in 1955, doesn't take account of rising costs of medical care
and other factors.
European countries call on
G-20 to tackle bonuses
LONDON (AP) -- Top finance
officials debated the next steps for the recovering global economy on Friday,
with European countries pushing for a crackdown on bankers' bonuses while the
U.S. stressed the need to boost bank reserves to prevent a repeat of the
financial crisis.
The Group of 20 countries
were also discussing so-called exit strategies from the recent massive economic
stimulus, although all agreed that withdrawing the massive amounts of money
injected into the ailing world economy any time soon could risk a double-dip
recession.
Developing countries,
meanwhile, used the gathering to press for reform of global financial
governance, proposing shifts in voting power at the International Monetary Fund
and the World Bank in favor of developing countries.
Judge recuses himself from
Chevron case in Ecuador
QUITO, Ecuador (AP) -- The
Ecuadorean judge presiding over a $27 billion environmental lawsuit against
Chevron recused himself.
Judge Juan Nunez said he is
stepping down to guarantee the trial's transparency amid an investigation into
allegations of wrongdoing on his part.
Earlier this week, Chevron
released a video in which the magistrate allegedly told a businessmen he had
already made up his mind to rule against the company.
FAA investigating American's
MD-80 repairs
DALLAS (AP) -- Federal
regulators are investigating American Airlines over structural repairs to its
aging fleet of MD-80 series aircraft.
A Federal Aviation
Administration official said Friday that the investigation centered on 16 planes.
A spokesman for American
denied a report that it had rushed to retire one of the planes to keep it away
from inspectors, and said mothballing the aircraft wouldn't let it escape FAA
scrutiny.
Glaxo's cancer vaccine
inches toward approval
WASHINGTON (AP) -- Federal
regulators said Friday that a GlaxoSmithKline vaccine prevents the leading
cause of cervical cancer in women, bringing the company one step closer to
competing with Merck's blockbuster Gardasil, which has controlled the U.S.
market for three years.
In documents posted online,
the Food and Drug Administration said Cervarix -- Glaxo's vaccine against human
papilloma virus, or HPV -- successfully blocked the two leading strains of the
virus nearly 93 percent of the time.
But even as the British drugmaker
moves closer to competing in the U.S., Merck is poised to begin marketing
Gardasil to boys and men. In a separate review, the FDA said that vaccine
prevented genital warts in males 90 percent of the time.
The agency will ask a panel
of vaccine experts next week to weigh in on both vaccines. The FDA is not
required to follow the group's advice, though it usually does.
H&R Block reports loss
for 1Q due to costs
KANSAS CITY, Mo. (AP) --
H&R Block Inc. said Friday it lost $133.6 million in the first quarter,
about the same as a year ago but slightly more than Wall Street expected, as
acquisition expenses and other costs offset slightly higher revenues.
The nation's largest tax
preparer typically records losses in its first two fiscal quarters outside the
normal tax season.
Chief Executive Officer Russ
Smyth told analysts in a conference call that the Internal Revenue Service
expects a 1 percent to 2 percent decline in tax returns filed next year due to
unemployment and other economic factors. He added that the economy will likely
push more people to do their taxes themselves or to use online tax filing
services.
By The Associated Press
The Dow Jones industrial
average rose 96.66, or 1 percent, to 9,441.27. The Standard & Poor's 500 index
rose 13.16, or 1.3 percent, to 1,016.40, while the Nasdaq composite index added
35.58, or 1.8 percent, to 2,018.78.
Benchmark crude for October
delivery rose 6 cents to settle at $68.02 a barrel in on the New York
Mercantile Exchange.
In other Nymex trading,
gasoline for October delivery fell 1.65 cents to settle at $1.7763 a gallon,
and heating oil fell 1.45 cents to settle at $1.7205 a gallon. Natural gas,
after tumbling to new seven-year low earlier in the day, rose 22 cents to
settle at $2.728 per 1,000 cubic feet.
In London, Brent crude fell
30 cents to settle at $66.82.