BUSINESS BRIEFS
New applications for jobless benefits lowest in 14 weeks
Advertiser News Services
WASHINGTON — New applications for jobless benefits plunged to the lowest level in 14 weeks, a possible sign that the massive wave of layoffs has peaked. Still, the number of unemployed workers getting benefits climbed to a record.
Retail results also improved as discounter Wal-Mart Stores Inc. and other stores reported April sales figures that beat expectations. Analysts acknowledged the positive economic signals but cautioned that any recovery will be subdued as long as unemployment stays high.
The Labor Department reported yesterday that the number of newly laid-off workers applying for benefits dropped to 601,000 last week. That was far better than the rise to 635,000 claims that economists expected.
BORROWING DOWN 5.2% FOR CONSUMERS
WASHINGTON — Consumer borrowing plunged in March at the fastest pace in 18 years as Americans put away their credit cards and hoarded cash amid the worst recession in decades.The Federal Reserve said yesterday that consumer borrowing dropped 5.2 percent in March, the biggest decline since an 8.1 percent fall in December 1990.
In dollar terms, consumer borrowing plunged by $11.1 billion. That's the largest dollar amount on records dating to 1943, and more than three times the $3.5 billion drop that economists expected.
AIG REPORTS LOSSES ARE SHARPLY LOWER
NEW YORK — Battered insurer American International Group Inc. said yesterday its first-quarter loss narrowed, and was sharply lower than the record-setting loss it posted a quarter ago.The New York-based insurance giant said it lost $4.35 billion, or $1.98 per share, during the quarter ended March 31, compared with $7.81 billion, or $3.09 per share, during the same quarter last year.
AIG lost $61.7 billion during the fourth quarter — the most ever in a quarter by a U.S. corporation — amid the mushrooming credit crisis and shortly after its near collapse.
AIG's first-quarter operating loss, which excludes impairment and accounting charges, totaled $1.6 billion, or 97 cents per share. The impairment charge for the quarter totaled $2.63 billion, compared with $3.96 billion during the year-ago period.
OIL PRICES RISE, BUT EXPERTS UNSURE WHY
HOUSTON — Oil prices continued to rise yesterday and climbed above $58 a barrel for the first time in nearly six months as the U.S. economy showed some signs of recovery. Still, oil analysts continue to search for fundamental reasons as to why energy prices have risen to current levels.Upbeat employment and retail news aside, energy consumption remains anemic and most experts say it will be some time before there's a rebound, save for an uptick in summer driving.
Benchmark crude for June delivery rose 37 cents a barrel to settle at $56.71 in trading on the New York Mercantile Exchange. Earlier in the session, the contract reached a high of $58.57.
