John Ydstie

When Will Fed Officials Ease Off The Accelerator?

John Ydstie — Thu, 23 May 2013 08:48:00 +0000

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DAVID GREENE, HOST:

NPR's business news starts with some of the shine off the stock market.

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GREENE: OK, after a big run up in prices, global stock markets stumbled today. Japan's Nikkei dropped more than seven percent. European markets are down two to three percent, and here in the United States the Dow and S&P averages are both down less than one percent. One reason for all this investors selling analysts say, is new indications from the U.S. Federal Reserve and Fed Chief Ben Bernanke about a pull back in quantitative easing.

Apple CEO Defends Tax Practices At Senate Hearing

John Ydstie — Tue, 21 May 2013 21:43:00 +0000

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ROBERT SIEGEL, HOST:

From NPR News, this is ALL THINGS CONSIDERED. I'm Robert Siegel.

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And I'm Melissa Block.

The top executives of Apple faced tough questions today on Capitol Hill. They came at a hearing about Apple's alleged avoidance of billions of dollars in U.S. income taxes.

CEO Cook To Defend Apple Before Senate Committee Hearing

John Ydstie — Tue, 21 May 2013 08:24:00 +0000

Giant technology firm Apple is paying billions of dollars less than it should in U.S. taxes each year, according to a report by the Senate Permanent Subcommittee on Investigations. In a hearing Tuesday in Washington, D.C., Apple CEO Tim Cook will defend the company.

The subcommittee's report says Apple avoids the tax payments mainly by shifting profits to three subsidiary companies in Ireland. The investigation found Apple is taking advantage of technicalities in U.S.

Yen's Drop In Value Could Fuel Curency War

John Ydstie — Thu, 16 May 2013 08:24:00 +0000

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STEVE INSKEEP, HOST:

Japan's economy is finally getting a lift. The stock market is soaring there. Companies like Toyota and Sony are seeing a surge in profits. And today, Japan's government reported the economy grew a three-and-a-half percent annual rate in the first three months of the year, a significant improvement.

Now, the government has prodded growth by causing the value of the currency, the yen, to decrease against other currencies like the dollar. That affects the price of everything Japan buys and sells - for example, dropping the price of Japanese exports.

Is A Smaller Budget Deficit A Lasting Trend?

John Ydstie — Wed, 15 May 2013 15:11:00 +0000

As the economy improves, the federal budget deficit is growing dramatically smaller. The Congressional Budget Office has sharply revised its estimates from just a few months ago, knocking off $200 billion in red ink for the current fiscal year. Some temporary factors are being cited for the projected improvement.

CBO now says it expects the budget shortfall to be $642 billion this year. That's still large, but far better than the trillion-dollar-plus deficits of the previous four years.

Housing Recovery Lifts Other Sectors, Too

John Ydstie — Thu, 02 May 2013 21:27:00 +0000

The government's employment report for April comes out Friday. It's an important measure of the economy's health and the advance signals have been mixed. One report this week showed layoffs falling to a five-year low, but another suggests disappointing jobs creation.

At least one sector is providing some positive news for the job market: housing.

It was only a year or so ago that housing was a big drag on the economy, and the main reason for the disappointing recovery. But that's changed. Jim O'Sullivan, chief U.S.

Regulators Warn Banks On Direct-Deposit Loans

John Ydstie — Thu, 25 Apr 2013 23:06:00 +0000

Consumer advocates call them "debt" traps. The banks that offer them call them direct-deposit advances and describe them as available funds for short-term emergencies.

But the cash advances have many of the negative characteristics of payday loans. And on Thursday, U.S. bank regulators took a step toward protecting consumers from the risks they pose.

Japan's Big Stimulus Move Shocks Globe's Market Watchers

John Ydstie — Thu, 11 Apr 2013 21:49:00 +0000

Currency traders were stunned last week by aggressive action from Japan's central bank. The Bank of Japan embarked on a bond-buying program that, by one measure, is twice the size of the extraordinary moves by Ben Bernanke and the Federal Reserve in the United States. The BOJ's move is an effort to shock the Japanese economy out of more than a decade of sluggish growth and deflation.

Jens Nordvig, global head of currency strategy at Nomura Securities, was one of many market watchers surprised by the strength of the Bank of Japan's move.

Cyprus' Crisis Frames Eurozone As 'Work In Progress'

John Ydstie — Fri, 29 Mar 2013 07:07:00 +0000

On the second day since Cyprus reopened its banks, depositors continue to face restrictions on getting at their money. ATM withdrawals are limited to 300 euros a day, and there are limits on how much cash travelers can take abroad.

The controls are designed to keep worried depositors from draining the banks and moving money out of the country.

Odd Political Bedfellows Agree: Banks Still Too Big To Fail

John Ydstie — Tue, 19 Mar 2013 22:04:00 +0000

Amid Washington's dysfunction, one issue has united some liberal Democrats and conservative Republicans: a common concern that "too big to fail" is alive and well.

Despite the Dodd-Frank financial reforms, these lawmakers believe the nation's largest banks still pose a threat to the economy and that the government will step in to bail them out if they get in trouble.

At a recent hearing on Capitol Hill, Sen. Elizabeth Warren, D-Mass., confronted Federal Reserve Chairman Ben Bernanke with her concerns. "We've now understood this problem for nearly five years," she said.