No Jobs Report as Economy Losses Mount

By ABC News

Oct 4, 2013 9:47am

Morning Money Memo…

By John Kapetaneas

As the government shutdown enters Day 4, estimated losses for the US economy have now topped $1.2 billion according to IHS predictions. While politicians spar over details on Friday, investors will trade without the use of the September jobs report, which was set to be released today, but has now been delayed while the Labor Department is furloughed. The IHS predicts that the week-long shutdown could cost the economy as much as a .2 percentage drop in fourth-quarter growth.

Investor confidence has been shaky for the week, with the Dow falling 261 points through Thursday’s close. With more than 800,000 federal employees out of work because of the shutdown, all eyes will be on Congress come Monday, in a crucial week leading up to the October 17 debt ceiling deadline. President Obama warned Thursday that an extended debate over the raising the debt limit would affect consumers and financial markets alike.

Twitter yesterday revealed details about its highly anticipated IPO, which could happen as early as the end of the month. Led by Goldman Sachs, the company plans to raise up to $1 billion in a public offering—a measure that would value the Internet company at around $13 billion. Meanwhile, smartphone giant Samsung said today that it expects record profit for its 3Q 2013, with estimates in the range of $9.5 billion. But all that glitters is not gold in the smartphone market—Taiwan’s HTC, maker of the HTC One, posted its first quarterly net loss since 2002. Sales for its flagship phone shrank in the last quarter.

Are You Ready for Some Futbol? Officials from FIFA are gathering to discuss options to move their flagship FIFA tournament in Qatar… in 2022! The executive committee discussed moving the tournament from the summer to the winter, expressing fears of the harsh Persian Gulf heat on the athletes. The impact of such a decision could interfere with the regular soccer season, putting in jeopardy the estimated $3.2 billion of advertising revenue the tournament is expected to generate.

 

 

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