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To: Jim Willie CB who wrote (48533)	3/8/2002 10:04:37 AM
From: stockman_scott	Respond to of 65232

Unemployment Rate Dips as Jobs Added Updated 9:15 AM ET March 8, 2002 By Mark Egan WASHINGTON (Reuters) - U.S. employment grew for the first time in seven months, beating expectations, as the jobless rate fell for a second straight month, the government said on Friday in the latest signal of economic recovery. The Labor Department said the jobless rate declined to 5.5 percent in February from 5.6 percent in the previous month. That drop came as a rise in retail employment, boosted by seasonal forces, helped add 66,000 jobs to payrolls outside the farm sector -- the first addition to payrolls since a mild 18,000 gain during July of last year. February's gains followed job losses of 126,000 in January, worse than the previously reported 89,000 job losses. The report adds to expectations that the Federal Reserve will shift its stance on the balance of risks in the U.S. economy at its March 19 meeting to signal that it may start to increase interest rates as early as the middle of the year. But with the recovery in its early stages, the central bank will be wary of choking off the recovery too early, especially until the job market has returned to full strength. A sell-off in the Treasury bond market sparked by Fed Chairman Alan Greenspan's relatively rosy assessment of the economy on Thursday continued after the employment data. The American economy has shed more than 1.4 million jobs since the recession began a year ago. Highlighting how badly the economy was hammered by the Sept. 11 attacks, 1.2 million of those job losses came between September and January. The dip in the unemployment rate came as more than 800,000 Americans rejoined the workforce. Indeed, the report, albeit boosted by special factors, was stronger than most expected. Economists in a Reuters poll had forecast a 13,000 payrolls increase and a higher unemployment rate at 5.8 percent. ``This definitely keeps alive the prospect of a stronger-than-expected bounce in the U.S. economy going into the second half of the year,'' said Andrew Delano, currency analyst for IdeaGlobal in New York. ``There is a little bit of fresh hiring out there. And I think that's a very good sign that the labor market has stabilized and is poised to bounce a little,'' he added. But the report showed some constraints still in the labor market with employers keeping costs low. The length of the average work week was unchanged at 34.1 hours and average hourly earnings rose a slim 0.1 percent to $14.63. The latest evidence the economy may have shrugged off its relatively mild slump came just one day after Greenspan proclaimed the recession over and the recovery underway in a Congressional hearing. But the powerful central banker warned the latest recovery could be milder than past rebounds. Highlighting the fragility of the current job market, February's payroll gains were driven by a 58,000 addition in retail jobs. But the Labor Department said those gains were uncertain, given unusual seasonal factors. The government department said that because retail hiring was so weak over the holiday period the normal raft of retail layoffs in January and February failed to materialize. The service-producing sector added 97,000 jobs in February and the construction business added 25,000 positions as unusually mild weather allowed more work than normal at this time of year. And while the manufacturing sector, in recession for the past two years, lost 50,000 jobs in February, those losses were the mildest in the factory sector since December, 2000. But most economists still expect the jobs market to remain choppy in the months ahead. ``We're not in neutral anymore. We're in first gear,'' said Ken Mayland, president of ClearView Economics in Cleveland. ``But I'm not sure that the unemployment rate has peaked and (is) trending down.''

To: Jim Willie CB who wrote (48533)	3/8/2002 10:11:41 AM
From: stockman_scott	Respond to of 65232

Jw: Have you seen this...? gold-eagle.com

To: Jim Willie CB who wrote (48533)	3/8/2002 12:04:31 PM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Senate Overwhelmingly OKs Stimulus Plan Friday March 8, 11:15 am Eastern Time WASHINGTON (Reuters) - Despite signs the U.S. recession is over, the Senate overwhelmingly passed an economic stimulus plan on Friday that extends unemployment benefits and provides billions of dollars in tax breaks to businesses. The Democrat-controlled Senate voted 85-9 for the bill a day after the Republican-led U.S. House of Representatives overwhelmingly approved it. The measure now goes to President Bush, who said he will sign it. Opponents said the economy has already turned around -- the jobless rate for February dropped to 5.5 percent -- and is beginning to expand. They also argue that the business tax breaks in the package will also affect revenues to cash-strapped states. Many base their business taxes on federal rules. Supporters said the package, which will cost the Treasury $42 billion over 10 years, was needed in order to ensure recovery from the economic slump made worse by the Sept. 11 attacks against the World Trade Center and Pentagon. Treasury Secretary Paul O'Neill said the business tax breaks in the bill will add ``momentum'' to the economy and help create jobs. ``As President Bush said, this bill not only takes care of unemployed workers, it also has tax relief for employers to create and retain jobs as a major part of it,'' O'Neill said in a statement. ``This legislation will add momentum so that we have a more robust economy recovery and return to full prosperity.'' The bill, which would cost the U.S. Treasury about $51 billion this year, would provide business tax breaks to encourage investment and help companies ease the pain of operating losses. It will also extend unemployment benefits 13 weeks beyond the current 26 weeks. States experiencing continued unemployment of 4 percent or higher would be eligible for additional extensions of benefits. Bush has been pressing for an economic stimulus package since hijacked airliners slammed into the World Trade Center and Pentagon on Sept. 11. Six months after the attacks, many workers who lost their jobs are exhausting unemployment benefits, and Democrats want them extended. CONTROL OF CONGRESS AT STAKE Republicans, anxious to see a strong economy going into the November elections, had pressed for a broader tax package with more far-reaching tax breaks for businesses and individuals. But they said the scaled-down legislation was the best they could achieve in light of Democratic resistance to more far-reaching business and individual tax cuts included in previous Republican-backed measures passed by the House. The broader Republican-backed bills stalled in the Senate amid partisan bickering over tax cuts and measures to help unemployed workers pay for health insurance. Democrats expressed disappointment lawmakers were unable to resolve differences over health care and the package does not include health benefits for unemployed workers. In addition to extending unemployment benefits, the bill would allow businesses to write off 30 percent of the cost of computers and other equipment, a provision that should help high-tech firms that have been hit hard by the economic downturn. The bill also allows businesses to use current losses to reduce tax payments for the previous five years. It also would extend a number of business tax breaks that otherwise would expire, including a tax credit for electricity production from wind, biomass and chicken waste. It also includes economic aid for New York. The bill would cost about $51 billion this year and $43 billion next year. The cost would be $42 billion over 10 years. The long-term cost is less because as businesses write off more of their expenses and losses earlier, they have less to write off in later years.

To: Jim Willie CB who wrote (48533)	3/8/2002 2:12:56 PM
From: stockman_scott	Respond to of 65232

Cayman Islands to require locally-signed audits for funds NEW YORK, March 8 (Reuters) - About 90 percent of mutual funds registered in the Cayman Islands use locally-signed audits, ahead of a new regulation that kicks in July 1 making locally-signed audits mandatory, the Cayman Islands Monetary Authority said Friday. The Authority said in a news release that it is in talks with auditing firms not established in the Cayman Islands and with funds using those firms about how they can go about meeting the new requirement. The major U.S. accounting firms and their local counterparts, as well as local firms approved by the Authority, already sign the vast majority of audits, the Authority said. The change in the law is designed to make sure firms issuing audit opinions are subject to the Authority's jurisdiction. According to the Cayman Islands government Web site, more than 2,000 funds are registered in the Cayman Islands with assets estimated at about $200 billion.