Category: Economy (Page 4 of 12)

Great news from Apple regarding US manufacturing

December 6, 2012 / Staff

This is big news, and frankly it’s nice to see a company like Apple put its excess billions to use here in the United States.

Apple CEO Tim Cook says the company will produce one of its existing lines of Mac computers in the United States next year.
Cook made the comments in part of an interview taped for NBC’s “Rock Center,” but aired Thursday morning on “Today” and posted on the network’s website.
In a separate interview with Bloomberg Businessweek, he said that the company will spend $100 million in 2013 to move production of the line to the U.S. from China.
“This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money,” Cook told Bloomberg.

Here’s more context about why so much manufacturing has been done in China.

Cook said in his interview with NBC that companies like Apple chose to produce their products in places like China, not because of the lower costs associated with it, but because the manufacturing skills required just aren’t present in the U.S. anymore.
He added that the consumer electronics world has never really had a big production presence in the U.S. As a result, it’s really more about starting production in the U.S. than bringing it back.

There has been a trend in bringing some manufacturing back from China to the US. But this is big as it relates to technology manufacturing from a tech giant like Apple. Of course Apple has had to deal with Foxconn problems, so that may be driving this, along with the huge PR push Apple will get. But this move could help spur a new tech manufacturing hub, that would be great for the US and for Apple as well.

Economy, General Business, Manufacturing

Apple Apple and Foxconn Apple brings jobs home Apple jobs in US bringing back US manufacturing Foxconn onshoring tech companies tech industry technology companies technology industry US manufacturing US vs Chinese manufacturing

Jobless claims settle down

October 25, 2012 / Staff

Take a look at this chart. This alone should provide clear evidence that the Obama stimulus worked to stem job losses and stop a great depression. The jobs market has steadily improved since. It still has a way to go, but the trend line is absolutely clear.

Economy

great depression jobless claims jobs trend line Obama stimulus stimulus package unemployment

U.S. manufacturing grows

October 2, 2012 / Staff

Recent news on durable goods orders was terrible, but perhaps it was an aberration. This news on manufacturing activity paints a more positive picture.

U.S. manufacturing unexpectedly expanded in September for the first time since May as new orders and employment picked up, but the pace of growth showed the economy was still stuck in a slow recovery.
The Institute for Supply Management said on Monday its index of national factory activity rose to 51.5 from 49.6 in August.
“We’re not quite at the point where things are good, but this indicates strongly that things are not so bad,” said Adam Sarhan, chief executive of Sarhan Capital in New York.
It was the first time since May that the index has been above the 50 threshold that indicates expansion in the sector.
The forward-looking new orders gauge also rose to its highest level since May at 52.3 from 47.1, while employment gained to 54.7 from 51.6.

Overall the news is choppy as the economy struggles to gain traction, but perhaps this good sign can help build momentum.

Economy, General Business

durable goods durable goods orders Institute for Supply Management manufacturing

Some signs point to an improving economy

August 10, 2012 / Staff

Things were starting to look pretty grim earlier this summer as job growth slowed and manufacturing activity slowed down, but now we’re starting to see some signs of life in the economy.

After a spring and summer of weak economic indicators, a flurry of fresh data suggest key sectors of the economy might be gaining traction, just as the battle for the White House enters the final round.
The long-moribund housing market has bustled to life, with prices and new-home construction rising in recent weeks. Hiring, so weak earlier this year, picked up last month. And on Thursday, the government reported an acceleration of a downward trend in the number of people seeking unemployment insurance, as well as a sharp improvement in U.S. exports.

The housing news is key, as we were never going to have significant GDP or job growth without reaching a bottom in the housing market as Warren Buffett explained many times.

Economy, Real Estate

economic indicators GDP growth housing market job growth new-home construction unemployment insurance US exports Warren Buffett

Another Euro deal

June 29, 2012 / Staff

Stocks surged in the United States and around the world today as markets reacted to the latest news out of Europe. We’ve had so many deals and false starts, but it looks like serious progress might be at hand in Europe.

By the end of a vital two-day summit here, European diplomacy had played out like soccer, with Spain and Italy — the two nations headed to the Euro 2012 finals — emerging victorious and the Germans returning home in shock.
After a marathon 14 hours of talks, Berlin unexpectedly agreed to concessions clearing the way for a deal that could help both Madrid and Rome in their desperate efforts to stave off economic collapse.
The agreement, while conditional on the creation of a regulatory body, addressed the core of the questions facing Europe: Who will cover the tab for its 2½-year-old debt crisis, and how?
Under the terms of the deal, troubled euro-zone countries would have more options for aid, including using a pool of European rescue funds to directly recapitalize ailing banks. That, in turn, would spare governments the humiliation of having to ask for aid themselves to channel to domestic banks, sidestepping the kind of intrusive financial inspections imposed on Greece, Ireland and Portugal.

The big change has to do with the decision to directly fund the troubled banks. Check out the whole article for the story, but it looks like Germany will cave here.

Economy, Finance, General Business

banking system banks banks in Europe debt crisis Euro deal euro-zone countries foreign markets troubled banks