Greece to get next part of IMF financial rescue package
The International Monetary Fund has backed the latest 3bn-euro (£2.6bn) instalment of a rescue package for Greece.
It is the latest tranche in the IMF's joint bail-out with the European Union aimed at helping the country pull back from an impending debt default.
A 110bn-euro rescue package was drawn up for the country last year.
The IMF also said on Friday that Greece had continued to make "some progress" in introducing economic reforms.
And the fund said it believed Greece would return to positive growth in the first half of 2012.
"The [rescue] programme is delivering important results: the fiscal deficit is being reduced, the economy is rebalancing, and competitiveness is gradually improving," IMF managing director Christine Lagarde said in a statement.
"However, with many important structural reforms still to be implemented, significant policy challenges remain."
Pork prices drive Chinese inflation
Think prices are rising rapidly in the U.S.? Inflation is going even more hog wild in China.
China's Consumer Price Index -- a broad measure of prices consumers pay for food, housing, clothing and other common expenses -- showed prices rose 6.4% over the last 12 months ending in June, China's National Bureau of Statistics reported Saturday.
That marks the fastest pace in inflation since July 2008 and an acceleration from May's 5.5% rate.
But unlike in the U.S., where inflation has being driven primarily by a surge in gas prices, economists say China's inflation problem is due instead to soaring food prices -- namely pork.
Food, which accounts for more than third of an average Chinese person's monthly expenses, rose 14.4% year-over-year. Meat and poultry prices were the worst culprit in that category, surging a whopping 32.3%. Pork prices rose 57.1%.
Mark Williams, senior China economist for Capital Economics, estimates pork prices alone contributed as much as 2 percentage points to June's overall inflation rate.
China raises key interest rates
The retail price of pork has increased 15% in the past four weeks, and is now more than 50% at its year-ago level, he said in a note to investors.
"A decline in China's pig population at the turn of the year is now resulting in a surge in pork prices," he wrote.
While that hurts the spending power of Chinese consumers who buy pork, it's also a good sign that China's inflation is not broadbased, said Carl Weinberg, chief economist with High Frequency Economics.
China's government has said that taming inflation to a rate around 4% is one of its key economic goals for the next five years.
Both Weinberg and Williams think it will miss its target for this year, but the government won't be too concerned. After raising interest rates three times his year -- including one rate hike this week -- an excess of credit is not the problem.
"Inflation is high not because of excessive lending, interest rates being too low, capital inflows or even a pick-up in demand," Williams said. "Increased inflation is simply the result of a cyclical decline in pork supply which will reverse itself in time."
As for Chinese exports to the United States, Weinberg says not to worry -- rapidly rising food prices are not likely to have a major impact on export prices.
"We're not going to see an increase in the prices of T-shirts at Wal-Mart or iPads at the Apple Store because of inflation in China," he said.
"Food prices are the only thing that have gone up significantly," he said. That tells me, it's not an overall price change."
Stocks drop as job report disappoints
U.S. stocks posted broad losses on Friday as Wall Street dealt with a dismal June jobs report that showed hiring crawled to a near standstill last month.
"We now have a clear indication of a stall in the U.S. economic recovery," said Frank Davis, director of sales and trading with LEK Securities.
The Dow Jones industrial average (INDU) sank 62 points, or 0.5%, to close at 12,657. The S&P 500 (SPX) fell 9 points, or 0.7%, to 1,344; and the Nasdaq Composite (COMP) fell 13 points, or 0.5%, to 2,860.
Investors focused on the Labor Department's jobs report, which showed the U.S. economy created only 18,000 jobs last month, a fraction of the 120,000 jobs that a CNNMoney survey of 27 economists had forecast.
June's unemployment rate rose to 9.2% from 9.1%, versus the decline to 9% economists had expected.
"There's no way to spin today's number into a way that's positive," said Liz Ann Sonders, chief investment strategist with Charles Schwab.
Investor reaction to the report was broadly negative. Twenty three of the 30 Dow members ended the session in the negative, with Bank of America (BAC, Fortune 500) and General Electric (GE, Fortune 500) the biggest laggards among the blue chips.
Meanwhile bond yields swooned as investors flooded into the relative safety of government bonds. Gold prices rose as well.
The yield on the benchmark 10-year note briefly fell below the 3% mark, down from Thursday's yield of 3.14%. Energy-related commodities also sold off, with oil falling more than 2.5%.
June jobs report: Hiring slows, unemployment rises
"We have had many, many months to stimulate this economy and still not seeing businesses hire," Davis said. "It's a real concern."
The government's jobs report came as a sharp contrast to two stronger-than-anticipated reports released Thursday on the employment market, which helped U.S. stocks rise sharply yesterday.
Despite today's losses, all three indexes posted gains in this holiday-shortened week. The Dow rose 0.4% while the S&P rose 0.2% and the Nasdaq rose 1.4%.
0:00 / 1:17 Amazon holds up on app store win
Companies: News Corp. (NWSA, Fortune 500) was the worst performer on the S&P 500 on Friday, sinking 4%, as the company continues to deal with the fallout stemming from the "News of the World" hacking scandal. Investors expressed concern that the hacking scandal may stop regulators from approving News Corp.'s bid to purchase British TV provider BSkyB.
Shares of JDS Uniphase (JDSU) fell 4.5% after Piper Jaffray lowered its price target on the stock to $21 from $25.
Economy: The Commerce Department said May wholesale inventories rose 1.8%, better than the 0.9% that economists had expected.
U.S. consumer credit rose by a seasonally-adjusted rate of 2.5% in May, the Federal Reserve said Friday. It was the eighth-straight monthly increase for that figure.
World markets: European markets ended Friday's session solidly lower after the jobs report. Britain's FTSE 100 ticked down by 1.1%, the DAX in Germany lost 0.9% and France's CAC 40 fell 1.5%.
Asian markets finished the week with gains. The Shanghai Composite ticked up 0.1%, the Hang Seng in Hong Kong jumped 0.9% and Japan's Nikkei rose 0.7%.
Currencies and commodities: The dollar fell against the euro, the Japanese yen and the British pound.
Oil for August delivery fell $2.47, or 2.5% to $96.20 a barrel.
Gold futures for August delivery gained $11 to $1,541.60 an ounce.
Former First Lady Betty Ford Dies
Former U.S. first lady Betty Ford, an outspoken advocate for women's rights and the founder of the Betty Ford Center for substance abuse, has died at the age of 93.
Family members said she died Friday evening.
President Barack Obama said Mrs. Ford distinguished herself through her courage and compassion. He said that as the nation's first lady, she was a powerful advocate for women's health and women's rights.
Former president Jimmy Carter praised Mrs. Ford for her work in improving mental health and substance abuse care.
Former president George H.W. Bush called Mrs. Ford a “courageous first lady,” a “wonderful wife and mother,” and a “great friend.”
Another former first lady, Nancy Reagan said Mrs. Ford was an “inspiration to so many” thanks to her efforts at the Betty Ford Center, and to educate people about breast cancer.
Mrs. Ford was born in Chicago in 1918. She moved to New York in her twenties where she worked as a dancer and a model.
The late president Gerald Ford was her second husband. The two wed shortly before he was elected to serve in congress in 1948. In 1974, the couple moved to the White House, after the Watergate scandal led president Richard Nixon and his first vice-president, Spiro Agnew, to resign.
As first lady, Betty Ford became known for her candor, famously discussing women's rights, premarital sex, and abortion in a television interview. She was also diagnosed with breast cancer while at the White House, and became an advocate for breast cancer research and awareness.
After leaving the White House, Mrs. Ford admitted and sought treatment for an addiction to alcohol and painkillers. She co-founded the Betty Ford Center in 1982, still one of the most well-known and well-regarded treatment centers for substance abuse.
11 Bodies Found Outside Mexico City
Mexican police say the bodies of 10 men and woman were found shot on the outskirts of Mexico City Friday.
Police say the victims were found in the Valle de Chalco area blindfolded and with their hands tied.
The Associated Press says another body was found in the vicinity some time later, but police are not confirming the victim was part of the mass shooting.
Police suspect the killings could be drug related, but say they are continuing their investigation.
Malaysia Locks Down Capital Ahead of Protests
Police in Malaysia's capital have sealed off key roads and deployed tucks mounted with water cannons near a stadium where electoral reform activists plan to hold a banned rally Saturday. Rally organizers say they expect tens of thousands of protesters.
Authorities have obtained court orders to bar 91 opposition and civic leaders from entering Kuala Lumpur's downtown area.
Leaders of Bersih, a coalition of more than 60 non-governmental groups, say they will go ahead with the rally at the city's iconic Merdeka Stadium, even though the government has refused to issue the necessary permit. The coalition had reached an agreement with Malaysia's constitutional monarch to hold the rally in the stadium instead of the streets, in order to prevent a clash with police.
Bersih is demanding the government implement electoral reforms ahead of the next round of national elections, including measures to prevent vote-buying and fraud. The elections are due to be held in 2013.
More than 200 people have been arrested in the past few weeks for helping to support the rally, drawing criticism from human rights advocacy groups.
BP Wants to Stop Paying Future Loss Claims
British oil company BP says it should not have to pay for potential future economic losses to people in the U.S. Gulf region, saying the economy there has recovered from the 2010 oil rig explosion and massive oil spill.
In a 29-page document made public Friday, the company noted that tourism is booming in the region, federal fishing grounds have reopened, and the seafood there has been certified as safe to eat.
BP said it remained committed to paying all legitimate claims from people whose businesses have been damaged in the aftermath of the oil spill. But the company says it is now time to re-evaluate how the victims' fund estimated future damages.
However, the president of Louisiana's Seafood and Marketing Board told the Associated Press that fishermen will continue to lose money for years because of the spill. He said customers still worry about contamination, despite studies showing the seafood is safe.
Kenneth Feinberg, who manages the compensation claims process, said he would take BP's submission under advisement.
The Deepwater Horizon oil rig exploded in April 2010, killing 11 people and starting an 85-day underwater leak that spewed nearly 5 million barrels of oil into the Gulf of Mexico. It was the worst offshore oil spill in U.S. history.
BP set aside $20 billion to compensate those whose livelihoods were hurt after the oil spill. So far BP says the fund has paid out more than $4.5 billion to more than 195,000 people. A further $430 million has been offered in settlements which are still being considered by claimants.
Bolting Away
World record holder Usain Bolt cruised to an easy victory over European champion Christophe Lemaitre in the 200 meters at the Areva athletics meeting Friday.
The Jamaican sprinter clocked 20.03 seconds, well off his record of 19.19 set at the 2009 world championships in Berlin. It was enough to outclass Lemaitre of France, who finished second in 20.21.
Bolt has been working on his technique lately, before defending his world titles next month in South Korea.
In the men's 400 meters, South African amputee Oscar Pistorius finished fifth in 45.84, failing to reach the 45.25 time that would automatically qualify him for the worlds. Christopher Brown of the Bahamas won in 44.94, with American Jeremy Wariner - winner of the Olympic gold in 2004 and silver in 2008 - fourth in 45.50.
Yao Ming retires from NBA
Yao Ming, the 7-foot-6 top overall pick by Houston in the 2002 draft and one of the pivotal figures in the globalization of the NBA, has decided to retire, two sources told SI.com.
News of Yao's retirement was first reported by Yahoo! Sports' Adrian Wojnarowski.
The 30-year-old center had his career derailed over the last two years due to an injury in his left foot and ankle. He missed the entire 2009-10 season recovering from surgery to repair a broken bone in the foot and played just five games last season after suffering a stress fracture in his ankle.
Over nearly a decade, Yao's presence helped facilitate the NBA's popularity in Asia. He was voted in as an All-Star starter eight times, largely due to an enormous Internet vote from China. His 2007 matchup with countryman Yi Jianlian was broadcast over 19 networks and seen in more than 200 million homes in China.
Yao retires with career averages of 19.0 points and 9.2 rebounds.
Source: sportsillustrated
Yankees-Rays rained out; Jeter's quest on hold
The game between the New York Yankees and Tampa Bay Rays scheduled for Friday night has been postponed because of rain, delaying Derek Jeter's pursuit of 3,000 hits.
The game will be made up Sept. 22. The rainout gives Jeter, with 2,998 career hits, just two games to reach the mark at Yankee Stadium before the All-Star break.
Yankees spokesman Jason Zillo says the team proposed playing a doubleheader on Saturday, but the Rays turned it down. By rule, both clubs get a say on whether to add a game for a doubleheader.
Jeter said earlier that he was pulling himself from next week's All-Star game. The shortstop says he wants to rest his injured calf.
Source: sportsillustrated