From ABC Radio News:
The first government estimate of 3rd quarter economic growth comes out on Thursday, and it might surprise on the upside. Some economists are revising their earlier GDP estimates higher – projecting annual growth of 2.5 percent during the summer.
That’s far from strong growth, but better than the tepid numbers of the first half of the year. The brighter picture follows better-than-expected figures on retail sales, car production, manufacturing, and business investment. The Dow Jones industrial average is up nearly 1,000 points so far this month. After widespread fears of a bear market, major stock averages are now slightly up for the year.
Netflix is being punished for its recent missteps and loss of goodwill. The shares plunged 27 percent after yesterday’s close, when the company said it lost 800,000 subscribers in the third quarter. Many regular customers closed their accounts when Netflix changed its pricing plan, and talked of splitting up its DVD by mail and online streaming business.
In cautious times, banks are awash in cash. Fearful of a recession and a volatile stock market, many consumers have parked their money in bank accounts. The New York Times reports financial institutions are trying to discourage the trend. Banks pay virtually no interest on CDs and checking accounts. Some are now passing along part of the cost of federal deposit insurance too.
European government leaders continue working on their debt rescue package. Greek debt holders are being asked to take at least a 50 percent cut on the value of their investments. This hard-line stance is in line with German demands for the banks to take losses from Greek bond holdings.