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World markets steady after US jobs data

LONDON (AP) — U.S. and European stock markets were steady Friday after further depressing news on the U.S. jobs front further reined in any market euphoria from the previous day’s meeting of the Group of 20 world leaders.

Though the Labor Department reported that the U.S. shed 663,000 jobs in March — more or less what the market was anticipated, it revised up its figure for the number of jobs lost in January by nearly 100,000 more than previously anticipated. In addition it said the unemployment rate rose to a 25-year high of 8.5 percent in March from 8.1 percent in February. As a result, the U.S. has lost over 5 million jobs since the recession started in December 2007.

“These massive job losses point to continued declines in output and we expect another big fall in gross domestic product to be reported for the first quarter,” said Arek Ohanissian, an economist at the Centre for Economic Business and Research in London. Read more

Bailed-out banks may buy toxic assets

(Reuters) - U.S. banks that have received government aid, including Citigroup Inc, Goldman Sachs, Morgan Stanley and JPMorgan Chase & Co, are considering buying toxic assets to be sold by rivals under the Treasury’s $1,000 billion plan to revive the financial system, the Financial Times said.

Citigroup was considering whether to take part in the plan as a seller, buyer or manager of the assets, but no decision had yet been taken, the paper said, citing people close to the company.

Goldman and Morgan Stanley have pledged to increase investments in distressed assets, the paper said. Read more

10 Financial Myths Busted

Before the economic rout, you could rely on certain iron laws of personal finance. For example, it was a given that house values didn’t fall. Money-market funds never lost a dime. And no matter how ugly the market, expert mutual fund managers could protect you from drastic losses.

Alas, in this Hydra-headed global financial crisis, another generally accepted principle of financial strategy or economic logic finds its way into the shredder almost every day. We gathered ten truisms that no longer pass the test.

MYTH 1: There’s always a hot market somewhere. When U.S. markets began to blow up, you heard about “decoupling” and “the Chinese century.” The idea is that Asia — or Russia or Latin America — can grow vigorously independent of the U.S. and Europe. Invest there and you’ll offset losses at home. Instead, Chinese, Indian and Russian shares have crumbled. Net investment money flowing into emerging-market economies fell 50% in 2008, to $466 billion, and is forecast to sink to $165 billion in 2009.

Truth: In this age of globalization, economic downturns and bear markets observe no borders. Read more

New high-rise could be bright spot in LA’s gloomy downtown development landscape

LOS ANGELES (AP) — A major developer planned to announce a $1 billion high-rise office and hotel complex Friday, the first new downtown construction project since the real estate spiral largely scuttled dreams of a resurgent city center.

Thomas Property Group’s plans call for an 80-story glass-walled building with a slanted profile resembling a ship’s sail that would be built on property owned by development partner Korean Air Co.

The design includes a 40-story hotel and condo tower and an 18,000-square-foot public park that would replace the 50-year-old Wilshire Grand hotel.

Company Chairman and Chief Executive James A. Thomas said the city’s first major office high-rise in some 20 years will satisfy what he sees as a rising demand for business real estate as downtown grows after the recession.

“There is no place that has the amenities, the attractions that downtown Los Angeles has,” he told The Associated Press on Thursday, a day ahead of the official announcement. Read more

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