Economy News

LOS ANGELES (Reuters) - In a depressed neighborhood in the City of Angels, hundreds of good jobs appeared to fall from the sky last week.

(Reuters) - The U.S. Federal Reserve this month asked nine banks that were part of "stress tests" conducted earlier this year to submit plans to repay money injected under the Troubled Asset Relief Program (TARP), Bloomberg said, citing a person familiar with the situation.

WASHINGTON - Faced with limited job options, many young adults are turning to an old standby to weather the recession: moving back in with mom and dad.

MEXICO CITY - Fitch Ratings downgraded Mexico's credit rating Monday, saying dependence on a flagging oil sector has weakened the country's ability to weather financial problems.

WASHINGTON - President Barack Obama said Monday the nation's economy is in good shape for the long term thanks to "core strengths" such as its universities, its innovation and a dynamic workforce.

CHARLOTTE, North Carolina (Reuters) - As the economy shows signs of stabilizing, major retail brokers are increasingly comfortable with leaving the largest brokerage houses and setting out on their own, according to a company that provides services to the brokers.

WASHINGTON (Reuters) - President Barack Obama assured Americans on Monday that boosting jobs was a top priority, but gave no specifics about how to meet this goal that some economists say warrants more government spending.

WASHINGTON (Reuters) - Sales of previously owned U.S. homes jumped last month to their highest level in more than 2-1/2 years, but a fall in an economic gauge was a reminder that recovery from recession would be patchy.

NEW YORK - Citigroup Inc. upgraded its 2010 economic growth forecasts for several countries on Monday, and said it expects a sustained but uneven global recovery next year.

NEW YORK - The safe-haven dollar began the week lower as a Federal Reserve official urged the continuation of stimulus programs and as home sales in October greatly exceeded market expectations, revving up traders' taste for higher-yielding assets.

WASHINGTON - Interest rates on six-month Treasurys hit their lowest level on record and three-month bills their lowest point in 11 months in Monday's auction of T-bills.

WASHINGTON - Obama: US economy has 'core strengths' that will put nation in good position for long term.

WASHINGTON (AFP) - A rush to cash in tax incentives helped boost sales of existing US homes 10.1 percent in October, according to data Monday showing fresh momentum for the sector at the heart of the economic crisis.

WASHINGTON (Reuters) - The White House said on Monday it was reviewing options to spur economic activity and job creation, but stressed any action would be taken in the context of the fiscal challenges facing the country.

Economists expect the joblessness that has weighed down the nation's economic recovery will start to slowly abate in 2010, but they predict consumers will continue to keep a tight rein on spending, according to a new survey.

FAIRLESS HILLS, Pa. - New Jersey's governor-elect and Pennsylvania Gov. Ed Rendell met for the first time since the election on Monday and seemed optimistic about working together.

NEW YORK (Reuters) - New Yorkers struggling to make ends meet during the recession are clamoring for change in how lawmakers in the state capital Albany conduct business, according to a survey released on Monday.

A look at economic developments and activity in major stock markets around the world Monday:

DETROIT - The U.S. auto industry will recover only a little next year, weighed down by high unemployment and other troubles that will continue to limit economic growth, a top industry analyst said Monday.

WASHINGTON (Reuters) - Sales of previously owned U.S. homes rose in October at a faster-than-expected pace to the highest in more than 2-1/2 years as buyers rushed to take advantage of a popular tax credit, a survey showed on Monday.

WASHINGTON (AFP) - The worst of US job losses are expected to be over by March 2010 as the economic grows after a long recession, a poll of business economists showed Monday.

New York (Reuters) - Sales of existing U.S. homes likely rose for a second consecutive month in October, reaching their highest since July 2007, according to a Reuters poll, as buyers scrambled to take advantage of greater affordability and a first-time home buyer tax credit.

ALBANY, N.Y. - The recession may be easing, but the urgent need to feed New York's hungry is still sharp.

NEW YORK (Reuters) - The Federal Reserve Bank of Chicago said on Monday its gauge of the national economy fell further into negative territory in October, in a report that suggested the economic recovery could be in trouble.

HONOLULU - A joint panel of the Hawaii Legislature will examine the use of federal economic stimulus money in the state departments of health and human services.

LONDON - The international economy is still fragile and vulnerable to shocks despite recent improvements in financial markets, the managing director of the International Monetary Fund said Monday.

LONDON (Reuters) - The global economy is in a holding pattern and vulnerable to more upheaval, and a lasting recovery will depend on policymakers taking the proper steps in coming months, the head of the IMF said on Monday.

PROVIDENCE, R.I. - Gov. Don Carcieri's administration has failed for months to spend $20 million meant to insulate poor people's homes against the winter chill and put unemployed people to work during one of the worst economic crises since the Great Depression.

LONDON (AFP) - The dollar slid against the euro on Monday on concerns that the Federal Reserve may keep emergency stimulus measures in place for a while longer, helping push gold prices to a record high level.