Markets jolted by trade balance
NEW YORK, Oct. 13 (UPI) -- Markets sputtered early in New York after the Commerce Department said the U.S. trade deficit was unchanged in August at $45.6 billion.
The Department of Labor said first time jobless claims for the week ending Saturday was also steady, dropping by only 1,000 to 404,000 for the week.
In late morning trading on Wall Street, the Dow Jones industrial average gave up 95.21 points or 0.83 percent to 11,423.64. The Standard & Poor's 500 index shed 11.02 points or 0.91 percent to 1,196.23. The Nasdaq composite index lost 5.29 points or 0.2 percent to 2,599.44.
The benchmark 10-year treasury note rose 18/32 to yield 2.15 percent.
The euro fell to $1.3705 from Wednesday's $1.3791. Against the yen, the dollar fell to 76.82 yen from Wednesday's 77.26 yen.
In Tokyo, the Nikkei 225 index added 0.97 percent, 84.35, to 8,823.25.
Second UAW chapter turns down Ford deal
CHICAGO, Oct. 13 (UPI) -- A United Auto Workers local chapter in Chicago said its members have turned down a four-year deal with Ford Motor Co. in a landslide vote.
At the Torrence Avenue factory, which builds the Ford Taurus, Lincoln MKS and Ford Explorer, 2,317 members of UAW Local 551 voted against the deal, while 539 voted for it, Crain's Chicago Businesses reported Thursday.
The local was the second UAW chapter to turn down the contract. It was also rejected by UAW Local 900 in Wayne, Mich.
Workers in Chicago turned down the deal that would have included a Ford commitment to add 1,100 jobs to the plant out of a total of 12,000 jobs the contract would require Ford to add nationwide over the next four years.
The agreement includes a $6,000 contract signing bonus and a raise from $14 per hour to $19.28 per hour for new hires that is gradually phased in over the four-year contract. Ford also agreed to a minimum profit-sharing plan giving hourly workers $3,700 for the first half of 2011 and at least $1,500 for each year after that.
There are 58 local UAW chapters in the country representing 41,000 workers. The voting for all 58 chapters is expected to be completed by Oct. 18.
Trade deficit steady at $45.6 billion
WASHINGTON, Oct. 13 (UPI) -- The U.S. international trade deficit held steady in August at $45.6 billion, the U.S. Census Bureau said Thursday.
The figure was "virtually unchanged" from July's revised deficit figure, the bureau said.
For August, exports totaled $177.6 billion, while imports totaled $223.2 billion.
Exported goods dropped by $100 million to $126.7 billion in August, while exports of services was unchanged at $50.9 billion.
Imported goods were unchanged at $188.1 billion. Imported services dropped to $35.1 billion, down by $200 million.
The trade gap widened with China, climbing from $27 billion in July to $29 billion. With the Organization of Petroleum Exporting Countries, the trade deficit rose from $11.9 billion to $13.3 billion.
Deficits with Japan, Mexico, Germany, Venezuela, Nigeria, Ireland, Taiwan and the European Union also rose or broke even during August.
The trade gap contracted slightly with Canada and South Korea.
Privatize Canadian broadcaster, group says
OTTAWA, Oct. 13 (UPI) -- An Ottawa policy group called Thursday for the privatization of the Canadian Broadcasting Corp., saying it was a financial burden whose time has passed.
The independent, not-for-profit Canadian Center for Policy Studies issued a statement that began by criticizing the broadcaster's finances.
It said the CBC received $1.16 billion government funding in 2010-2011. Citing the CBC's annual report, the broadcaster raised net revenue of $1.8 billion during the same period.
"Nonetheless, the corporation still managed to report a loss of $24.7 million," the policy group said.
One of the CBC's original mandates was to produce and broadcast Canadian programming. The CCPS said media has evolved and the CBC is no longer the principal supplier of Canadian content.
"In today's world of proliferating cable stations, there is no shortage of Canadian content available on our television screens -- if the CBC can't provide Canadian content, that does not mean that someone else can't provide it either," the group said.
The report went on to criticize the CBC's well-reported refusal to disclose the salaries it pays and how much its "gala parties and receptions" cost taxpayers.
There was no immediate response from the broadcaster.
