Tax hikes and Government Spending cuts set to start next year, why arent more firms postponing hiring decisions . What were hearing from businesses is that it is really hard to actually pull back hiring right now, because theyve already fired so many workers, gotten so lean that its really difficult. Reporter but not all the surprises in the report were good. At 7. 7 , the Unemployment Rate hit its lowest level since december 2008. But that was mostly due to people giving up their search for work. And theres another disappointing trend, weak wage growth. What we are not seeing is strong income generation. The slowing in wage gains the weak Bargaining Power of labor comes across in this report and reporter so although the labor market is not getting worse, its not getting a lot better, either. And there are plenty of risks that could cause businesses to cancel projects, and hiring plans. Clearly one of the biggest risks is that we dont see a deal on the fiscal cliff, or that they drag i
On the high street with them falling near the stock 600. And the Prime Minister tells cnbc exclusively the muslim brother is no longer welcome in his country. Physically, they feel more and more excluded. They are in a state of denial, so they are really stuck. Hello and welcome to the first Worldwide Exchange of the week. We kick off the data out of the eurozone, we are unchanged from the estimate, 52. 1 in december. 52. 1 in november. Enjoying a fairly strong finish to 2013. So new orders in at the fastest pace since june 2011. The Employment Index hitting the 50 mark for the first time in two years, that means employers are hiring people just as many as they are lagging off. But france seems to see the flash repeated. Theres a better number out of spain as well. Euro dollar at 1. 3601 away from the number we hit weeks ago. Well get thoughts from kathy, is sturgon manager. Happy new year. Happy new year. In 2013 there were russian consultants in europe and core europe. Now its really
And that will tend to be supportive of the economy. So that has an automatic stabilizertype effect. It offsets adverse shocks. Reporter as it turns out, the fed expects the Unemployment Rate to fall below 6. 5 until 2015, exactly when the fed said a few months ago it expected to begin raising Interest Rates. So this isnt much of a change in policy. Bernanke also said the central bank will continue buying bonds, 85 billion a month, to help bring down Interest Rates and boost growth. And the fed plans to keep doing that until the labor market shows a solid pickup or there are other signs of trouble. If future evidence suggests that the programs effectiveness has declined, or if potential unintended side effects or risks become apparent as the Balance Sheet grows, we will modify the program as appropriate. Reporter the fed will also look at broader measures of the labor market including the hours people are working and payroll growth. But the Unemployment Rate target still raises some con
His case. Here we are at the eleventh hour, and the president still isnt serious about dealing with this issue right here. Its this issue spending. Reporter the president left his spokesman to respond that republicans were pushing a plan of fantasy economics that raised more revenues while also cutting taxes on the wealthy. What spending cuts have the republicans put forward . The proposal that weve seen is a twopage letter, and the much discussed second proposal is less than half a page. There is no specificity behind what the republicans have put forward. Reporter right now, the risk is rising that we will avoid the fiscal cliff, but end up with what some call a worst case outcome. We get some sort of hoaky deal thats put together with gimmicks and baseline adjustments and all that stuff. They get by the fiscal cliff without much damage. Wall street breathes a sigh of relief, but weve done nothing for the longer term debttogdp ratio. Worst of all, most of what they do will take effec
Supportive of the economy. So that has an automatic stabilizertype effect. It offsets adverse shocks. Reporter as it turns out, the fed expects the Unemployment Rate to fall below 6. 5 until 2015, exactly when the fed said a few months ago it expected to begin raising Interest Rates. So this isnt much of a change in policy. Bernanke also said the central bank will continue buying bonds, 85 billion a month, to help bring down Interest Rates and boost growth. And the fed plans to keep doing that until the labor market shows a solid pickup or there are other signs of trouble. If future evidence suggests that the programs effectiveness has declined, or if potential unintended side effects or risks become apparent as the Balance Sheet grows, we will modify the program as appropriate. Reporter the fed will also look at broader measures of the labor market including the hours people are working and payroll growth. But the Unemployment Rate target still raises some concerns. The Unemployment R