Economy Faces New Threats

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2/26/2011

NEW YORK

-- Just when the U.S. economy seemed to be getting its footing, a number of new obstacles risk tripping it up. A spike in oil prices due to spreading unrest in the Middle East is the highest profile problem, but not the only one. Economists are also worried about the push to cut government spending, the end of stimulus from the Federal Reserve and the bull market in stocks running its course. While none of these factors might be enough to tip the economy back into a recession individually, "pile up enough headwinds and you're going backwards," said David Wyss, chief economist with Standard & Poor's.

       

PROVIDENCE — The school district plans to send out dismissal notices to every one of its 1,926 teachers, an unprecedented move that has union leaders up in arms. In an e-mail sent to all teachers and School Department staff, Brady said, “We are forced to take this precautionary action by the March 1 deadline given the dire budget outline for the 2011-2012 school year in which we are projecting a near $40 million deficit for the district,” Brady wrote. “Since the full extent of the potential cuts to the school budget have yet to be determined, issuing a dismissal letter to all teachers was necessary to give the mayor, the School Board and the district maximum flexibility to consider every cost savings option, including reductions in staff.” 

        

Boeing Co. rose the most since July after its surprise win in the U.S. Air Force tanker program kept the 767 jet alive and eased the sting from months of delays on two marquee airliners. “They faced the toughest competitor they know in the market and they came out first,” Howard Rubel, a New York-based analyst with Jefferies & Co., said in an interview. “It says that maybe they are not as bad as their last two projects would have told you.”

      

TOKYO—China's government-wealth investors last year more than doubled their investments in major Japanese blue-chip companies, with combined stakes totaling more than 1.6 trillion yen ($19.4 billion), according to investment-advisory firms and people familiar with the matter. The stakes—purchased mostly through obscurely named, Australian-registered investment vehicles—appear to be passive, with investors silent on matters of corporate strategy and management. But they highlight China's growing financial clout as well as the growing economic ties between China and Japan. 

 

 

  

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