A magnitude 4.4 earthquake struck near Los Angeles on Tuesday, awakening residents but causing no apparent damage in the second largest U.S. city, the U.S. Geological Survey and witnesses said.

Police at the epicenter of Pico Rivera, 11 miles southeast of downtown Los Angeles, said there were no immediate reports of injuries or damage from the light quake.

It hit at 4:04 a.m. local time (1104 GMT) and lasted a few seconds, rousing many from their beds and prompting local television stations to issue bulletins. The quake was at a depth of nearly 11 miles on the Whittier fault.

Home to 10 million people, Los Angeles County had its last strong earthquake in Northridge in 1994, which killed some 60 people.

Source/Full Story:   Reuters

National Highway Traffic Safety Administration chief David Strickland told a congressional hearing on Thursday that the regulator is considering whether to make “black boxes” mandatory for all new vehicles. [ID:nN11246251]

The devices can capture data on speed, braking effort and other details which can be vital in reconstructing accidents.

Toyota has recalled more than 8 million vehicles globally to address the risk that accelerator pedals on a range of its vehicles could become stuck because of a loose floor mat or a glitch in the pedal assembly.

Unintended acceleration in the company’s Toyota and Lexus vehicles has been linked to at least five U.S. crash deaths since 2007. Authorities are investigating 47 other Toyota crash deaths over the past decade.

Source/Full Story: Reuters

The Greek economy is set to shrink by more than expected this year, the government said on Wednesday, as it braced for nationwide strikes protesting its plans for bringing the country’s budget deficit under control.

Greece, grappling with a ballooning deficit and a 300 billion euro (272 billion pound) debt pile, told the European Union that 2010 gross domestic product (GDP) would “most likely” shrink by more than the 0.3 percent currently forecast.

It also said the drop may exceed an alternative, more pessimistic, scenario published in Greece’s Stability and Growth Programme in January envisaging a 0.8 percent contraction.

Economists and ratings agencies have warned that a sharper than expected slowdown in the economy is one of the biggest threats to Greece’s commitment to cut its budget deficit to 2.8 percent of GDP by 2012 from close to 13 percent last year.

Source/Full Story: Reuters

“The situation is fairly poor for a lot of states around the country. In fact, most states,” Vermont Governor Jim Douglas, who is chairman of the association, said at a press conference at its annual meeting.

“What we’re finding out from a fiscal standpoint is that the worst is yet to come,” Douglas said.

In a survey conducted last week of 45 of the 50 states, the group found that states have $18.8 billion of budget gaps yet to be closed in fiscal 2010. This comes after they have already imposed measures to eliminate budget imbalances totaling $87 billion in the fiscal year, which for most started last summer.

In the budgets they are drafting for fiscal 2011, states foresee shortfalls of $53.6 billion and for fiscal 2012 $61.6 billion.

“Economists have declared the national recession over. But for those who are still unemployed, for those who have lost their homes, it’s clear that as a nation we have a long way to go,” said Douglas, who added that states’ revenues have plummeted for four quarters in a row.

Source/Full Story: Reuters

Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.

The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move.

“It’s ‘exit stage left’ for first-time homebuyers,” wrote Guy LeBas, an analyst with Janney Montgomery Scott.

December’s sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged pace of 6.54 million in November, the National Association of Realtors said Monday. Sales had been expected to fall by about 10 percent, according to economists surveyed by Thomson Reuters.

The report “places a large question mark over whether the recovery can be sustained when the extended tax credit expires,” wrote Paul Dales, U.S. economist with Capital Economics.

Source/Full Story: huffingtonpost.com

Sam’s Club said it will use Shopper Events, a third-party company, instead of its own employees to run in-store product demonstrations and hand out food samples — a popular tactic used by warehouse clubs to entice shoppers to buy new items.

In a memo to employees, Cornell said Shopper Events will develop a demo program, called “Tastes and Tips”, that will offer improved demonstration of items like food, beverages and electronics.

The shift means Sam’s Club will cut 10,000 jobs primarily held by part-time workers. Current Sam’s Club demo employees can apply for new jobs with Shopper Events.

Brian Pear, general manager for Shopper Events, said his company would hire about the same number of employees being let go by Sam’s Club. But he said there was no guarantee it would hire former Sam’s Club employees to fill the positions.

Cornell and Pear declined to disclose terms of the deal.

Source/Full Story: Reuters

A record one in seven U.S. mortgages were in foreclosure or at least one payment past due in the third quarter, according to fresh data signaling the recovery in the housing market will be tepid at best.

U.S. mortgage delinquency rates and the percentage of loans that entered the foreclosure process also jumped to records from July to September, the Mortgage Bankers Association said on Thursday.

Rising job losses were behind the increasingly bleak portrait of the housing market in a trend that will continue into next year, the group said in data that adds to recent evidence of a still-struggling housing market.

Housing and related business account for about 20 percent of the economy and recovery is essential to bring unemployment down from a 26-1/2-year high and kick-start economic growth.

Source/Full Story: Reuters

It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group (AIG.N) because of an action taken last year by the Securities and Exchange Commission.

In May, the SEC approved a request by AIG to keep secret an exhibit to a year-old regulatory filing that includes some of the details on the most controversial aspect of the AIG bailout: the funneling of tens of billions of dollars to big banks like Societe Generale, Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Merrill Lynch.

The SEC’s Division of Corporation Finance, in granting AIG’s request for confidential treatment, said the “excluded information” will not be made public until Nov. 25, 2018, according to a copy of the agency’s May 22 order.

The SEC said the insurer had demonstrated the information in the exhibit, called Schedule A, “qualifies as confidential commercial or financial information.”

Source/Full Story:  Reuters

U.S. and EU authorities are expected to hammer out the definite shape of a new regulatory order in 2010 that will fundamentally change how world banks and markets operate.

Stricter limits on leverage and capital will emerge, leading eventually to slimmer profits for banks, policy analysts said. Formerly unregulated off-exchange derivatives markets will have to conform to new procedures.

Lenders’ power to package and securitize mortgages and other forms of debt will face new limits, while hedge funds — once the darlings of high finance — will face new scrutiny.

Procedural hurdles remain to be crossed by reform advocates. In the United States, the Senate has not yet approved a reform bill, but the House of Representatives has.

Banking lobbyists and Republicans are working to block reforms. Senate debate will resume this month, with analysts expecting passage of legislation in early spring. The Senate and House will then have to agree on a single measure to send to President Barack Obama. That could happen in April or May.

In Europe, EU member states and the European Parliament must still rule on a range of proposed regulations for banks, markets, insurers, hedge funds and private equity groups.

But it all looks to be on track for adoption, barring unforeseen political shocks, analysts said.

“The reform package will be more far-reaching than anything we’ve seen since the Great Depression, and there is a high likelihood it will pass,” said the Eurasia Group, a research and consulting firm that closely follows Washington politics.

“Upcoming midterm elections (in America) will encourage populist approaches,” the group said in a research note.

Source/Full Story:  Reuters

The share of the U.S. population aged between 40 and 65, when people typically prepare for retirement by building their biggest pile of financial assets, peaks in 2010 and this ratio has shown an uncanny link with real equity prices for 40 years.

Source/Full Story: Reuters

Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania, said in an interview with Reuters home prices will resume their decline by early next year as foreclosure sales pick up again.

“The housing crash is not over,” he said.

The U.S. housing market has suffered the worst downturn since the Great Depression, and its impact has rippled through the recession-hit economy as well as the rest of the world.

A setback for the hard-hit housing market could portend problems for the U.S. economy.

Home prices, as measured by the Standard & Poor’s/Case-Shiller U.S. National Home Price Index, will trough in the third quarter of 2010 after declining 38 percent, Zandi said.

The index peaked in the second quarter of 2006 and hit a trough in the first quarter of 2009, a drop of about 32 percent.

Source/Full Story: Zandi | Reuters

The number of Americans receiving food stamp assistance soared above 36 million for the first time in August, the eighth month in a row that enrollment set a record, the U.S. Agriculture Department said on Wednesday.

USDA said 36.492 million people were receiving food stamps, also known as the Supplemental Nutrition Assistance Program. In July, enrollment stood at 35.851 million. At the current rate, an estimated one in eight Americans receive benefits.
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Source/Full Story: Reuters
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White House economic adviser Paul Volcker said his meeting on Monday with President Barack Obama focused in part on reducing U.S. economic reliance on consumer spending.

The alternatives to help bolster future economic growth include boosting exports, applying innovative technology to green issues and improving the nation’s infrastructure, Volcker said.

The former Federal Reserve chairman, who now heads the White House Economic Recovery Advisory Board, said Obama understands that “We cannot have so much consumption.”

Consumer spending accounted for 70 percent of the U.S. economy before last year’s economic meltdown, a level that Volcker said was sustained only by “the magic of financial engineering.”

“We cannot rebuild the economy to the tune of 70 percent consumption or housing booms. It will just break down again,” Volcker said.

Source/Full Story:  Reuters
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Executives do not expect the U.S. commercial real estate market to emerge from critical condition any time soon, according to a survey by The Real Estate Roundtable.

Although the three indexes tracked by the “Sentiment Survey” have risen dramatically since the near-collapse of financial markets last year, they reflect the respondents’ collective sense of relief at having survived the worst of the turmoil, according to The Real Estate Roundtable.

The U.S. commercial real estate market has been in a downward spiral for more than two years. On the whole, U.S. commercial real estate values have fallen about 40 percent from their peaks in 2007. Borrowers face shortfalls in financings when loans come due, while other borrowers are struggling to meet even monthly payments.

The delinquency rate of U.S. commercial real estate loans that had been securitized into Commercial Mortgage-Backed Securities (CMBS) hit 4.8 percent in October, up from 4.36 the prior month and dwarfing the 0.77 rate a year earlier, according to Trepp, which tracks CMBS loans.

Source/Full Story: Reuters
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Chief executives from the biggest U.S. corporations worry that the slumping dollar could sap U.S. credibility around the globe, spur inflation and ultimately undermine the economy.

The dollar has fallen to a 14-month low; and while a weaker dollar makes U.S. products cheaper overseas, chief executives gathered for the Business Council meeting in Cary, North Carolina, expressed deep concern that the anemic dollar signals serious jitters.

“The issue is currency devaluation, and the worry is that it essentially lowers our credibility in the world,” said Office Depot Inc (ODP.N) CEO Steve Odland in an interview with Reuters on the sidelines of the conference.

CEOs say that a slew of government spending programs on health care and other priorities could undercut economic recovery.

As the Federal Reserve works is effectively “printing money” through various programs to restart stalled financial markets, inflation is a risk.

“I have very significant concerns that unless we modify the current (spending) strategy, we will see inflation and a further reduction of the dollar,” said PG&E Corp (PCG.N) CEO Peter Darbee.

“The current move in the dollar is an early indication that others in the world expect the same thing. That’s why there’s a beginning of the movement away from the dollar as a store of value.”

“We need to return to fiscal responsibility,” added Office Depot’s Odland.

Source/Full Story: Reuters