UPI NewsTrack Business

Markets skid

NEW YORK, Feb. 10 (UPI) -- U.S. markets were down at midday Friday after the Department of Commerce said the U.S. trade deficit widened in December.

The trade gap grew from $47.1 billion in November to $48.8 billion in December. Moreover, it rose by $58 billion in 2011 from 2010 to a total of $558 billion for the year.

In early afternoon trading on Wall Street, the Dow Jones industrial average shed 120.75 points or 0.94 percent to Dow 12,769.70. The Standard & Poor's 500 index lost 9.99 points or 0.74 percent to 1,341.96. The Nasdaq composite index dropped 20.40 points or 0.70 percent to 2,906.83.

The benchmark 10-year treasury note fell 1/32 to yield 2.78 percent.

The euro fell to $1.3177 from Thursday's $1.3286. Against the yen, the dollar fell to 77.65 yen from Thursday's 77.66 yen.

In Tokyo, the Nikkei 225 index dropped 0.61 percent, 55.07, to 8,947.17.

Greece hit by strikes protesting debt plan

ATHENS, Greece, Feb. 10 (UPI) -- Greek workers went on strike Friday, the second time this week they walked off their jobs to protest the country's new austerity programs.

The 48-hour national walkout was called after the government Thursday reached a conditional deal with the European Commission, the European Central Bank and the International Monetary Fund on terms of a new loan program, The New York Times reported.

The deal calls for Prime Minister Lucas Papademos' government to cut private-sector wages by at least 20 percent, furlough thousands of public employees and reduce public spending. Creditors also demanded more cuts to cover a $430 million shortfall created when Greece's political leaders refused to reduce supplemental pensions, as well as parliamentary approval and written commitments to the terms of the agreement from leaders of Papademos' three-party coalition before more funding is released.

Parliament is expected to vote on the package Sunday or Monday. Leaders of the country's largest public- and private-sector unions said protests were planned for both days of the strike, as well as the day of the vote.

Both deals must be completed soon to ensure funding will be released so Greece can pay a $19 billion bond that matures March 20 and avoid default.

Most public transportation services were suspended during the 48-hour walkout, although air travel operated normally, the Times said. Ferry and train service was suspended and an urban rail service operated on a limited schedule. Government offices, schools and courts were close and hospitals were open with emergency staffs.

The strike will be accompanied by three days of demonstrations, Ekathimerini reported.

From Brussels, Greek Finance Minister Evangelos Venizelos appealed to his countrymen to rally behind the measures.

"If we see the future of our country within the eurozone, within Europe, we should do what we have to do for the program to be approved and for the [private sector involvement] to be concluded on time before major bonds expire in March," Venizelos said, referring to negotiations on private-sector involvement in a bailout that includes a write-off of about $130 billion of the country's debt.

Greece's government statistics agency said the country's industrial output fell 11.3 percent in December from a year earlier and unemployment soared in November to an all-time high of 20.9 percent, up from October's 18.2 percent.

Canadian trade surplus more than doubles

OTTAWA, Feb. 10 (UPI) -- Canada's international trade surplus more than doubled to $2.7 billion in December, based on a 4.5 percent surge in exports, Statistics Canada reported Friday.

Merchandise exports rose 4.5 percent to $42 billion while imports increased 0.8 percent worth $39.3 billion on a monthly basis, the agency said.

"The value of exports increased in all sectors, led by machinery and equipment," StatsCan said. "Exports have been trending upwards since July 2011."

Canada's trade surplus with its largest trading partner, the United States, grew from $4.7 billion in November to $5.5 billion in December. Exports for the month rose 5.3 percent to $30.2 billion on higher exports of crude petroleum, aircraft and precious metals, the agency said.

Export trade with other countries was up 2.5 percent to a record high of $11.8 billion while imports declined 2.6 percent to $14.7 billion. Much of the import decline was from the European Union, the report said.

U.S. trade gap widened in 2012

WASHINGTON, Feb. 10 (UPI) -- The U.S. trade deficit widened considerably in 2011 from 2010, the U.S. Census Bureau said Friday.

The trade gap tacked on an additional $58 billion to reach $558. billion for the year. Exports in 2011 reached $2.1 trillion, while imports reached $2.6 trillion.

For the year, the trade deficit in goods reached $737.1 billion, up $91.2 billion above 2010. The trade surplus in services rose the $179 billion, up $33.2 billion over 2010.

In the final month of the year, the trade gap appeared to be defining a new plateau. In August through October of 2011, the deficit averaged $44.1 billion, holding to thin margins of difference. That shot up to $47.1 billion in November and climbed again in December, the bureau said.

In December, U.S. exports climbed by $1.2 billion from November to $178.7 billion. Imports in the month imports rose by $3 billion to $227.6 billion.

From December 2010 to December 2011, the deficit rose by $8.3 billion with exports up 9 percent or by $14.8 billion and imports up 11.3 percent or by $23.1 billion.