UNEMPLOYMENT RATE INCREASES
Job growth in May was the weakest in a year and employers added only 69,000 jobs, according to the Labor Department. Economists had expected non-farm payrolls to increase by 150,000. According to Fox Business the unemployment rate increased to 8.2 percent. While past months have blamed the unseasonably mild winter for the sluggishness, analysts are now feeling there is a fundamental weakness in the economy.
MANUFACTURING WEAKENS IN BOTH EUROPE AND CHINA
The Eurozone’s manufacturing index, the Purchasing Manager’s Index or PMI, dropped to 45.1 from 45.9 in April, slightly above its lowest rating in June 2009. The Chinese PMI fell to 50.4 while HSBC’s number for the factory sector in China fell to 48.1 , according to CNBC.
MAY ENDS UP DISMALLY
The Dow ended up down 26 points on Thursday at 12,393 and bore out the new “sell in May and go away” theory. According to the Associated Press, May was the first losing month since September and the biggest monthly point loss since May 2010. Disappointing unemployment claims reports and poor first quarter economic growth added to the losses and the uncertainty in Europe over both Spain and Greece continues to impact the markets. European and Asian markets are both down on Friday.
GERMANY AGREES TO GIVE SPAIN MORE TIME
Germany has switched its opinion and decided to support a European Commission proposal to give Spain more time to balance its budget, in a sign that Berlin is becoming more flexible regarding the European debt crisis. It is anticipated that the EU will provide support in purchasing bonds and recapitalizing the banks in Spain, but the mechanism has yet to be determined. CNBC predicts that Spain will continue to have as much or more impact on the markets throughout 2012 as Greece, primarily due to its large size.
NO SUPER SIZING IN NYC
Mayor Michael Bloomberg is proposing a ban on large servings of soda and other sugary drinks in NYC restaurants, delis, sports arenas and movies theaters, according to the Associated Press. Drinks would be limited to 16 ounces, which is considered a small at many restaurants. Bloomberg blames the obesity epidemic for creating a need for this legislation.
SUBWAY BECOMES HEART HEALTHY
In a conflicting story, Subway has been blessed by the American Heart Association for offering “Heart-Check” foods, the first fast food chain to earn this designation. According to USA Today, up to 42 percent of Subway’s sales meet the Heart-Healthy designation. Certification can cost up to $700,000 annually for a chain that seeks the designation
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.