Job cuts---Lane (medium)
Europe market---Mike (fast)
>> since february, 2001, the u.s. economy has lost over 2.5 million jobs. the unemployment rate climbed to a nine-year high above 6% in may and has remained above six ever since. it stood at 6.2 in july and economists estimate it will remain there. the director of research at the economic cycle research institute and says the weak labor market does not mean a weak recovery.
>> jobs are a problem. but if somebody thinks that because of that the economy is in fragile shape, the recovery is fragile, then they are missing the bompt then they are wrong. they might think that, oh, we are about to tip over in recession if this jobless rate continues this high. that’s not true. we can continue at this level of joblessness and have focus in growth and g.d.p..
>> mr. bannerji says his charts show the economy is strong and unlikely to be derailed even by a major shock. they expect third quarter growth to accelerate to $3.6% and 3.7% respectively. procter gamble is bumping its chief executive’s salary and bonus by 27%. he received a bonus of $3 million after exceeding goals by 10% and sales as much as 6%. other compensation includes nearly 7 million in stock options, a stock award of $4.5 million and other pay worth over $3 million. inflation of the dozen euro countries accelerated to the highest in four months in august as a weaker euro and higher energy costs helped boost prices. bloomberg’s economics editor michael mckee is in washington with more on the stories. mike.
>> well, lane, a little bit of inflation may be good news, if it suggests the economy is growth in europe. consumer prices climbed 2.1% from a year ago, up from 1.9% in july. the luxembourg-based european statistics office said in an initial estimate. inflation stayed at or below the ecb’s 2% limit for the previous three months t bank says inflation will hover around 2% for the rest of the year before slowing in 2004. the biggest problems were a 5% rise in the price of crude oil in august and increasing food prices after temperatures touched 104 degrees fahrenheit across europe during august, damaging crops. wheat output in the european union this year will drop 9.5% because of the hot weather. european commission said. also, goods from abroad are becoming more expensive after the euro slipped against the dollar in the past month. import prices in germany, europe’s largest economy rose 2/10 percent in july. euro closed at 1.0984 dollars per euro, a gain for the euro. the dollar lost ground today against the yen and the pound. now, investors are reining in expectations the e.c.b. will lower its benchmark rate of 2%. german business optimism rose for a fourth month in august and european manufacturing improved in the first month of july. the yield on the three-month interest rate futures contracted for settlement was 2.2% today, up from 1.92% two months ago. lane, it looks like the e.c.b. on hold, even if inflation is picking up a little bit.
>> michael mckee in washington. we’ll be seeing a lot of mike next week as the economic reports continue to roll in.
