Sales of new homes in the U.S. jumped by 11% in June over the month before, to their highest rate this year. The surprising number gave more weight to beliefs that a housing recovery may be under way. Sales rose to an annualized rate of 384,000, far better than analysts had predicted, and the biggest monthly gain in nine years. Sales were up throughout the nation except in the South.

Some of the increase can be ascribed to the $8,000 first-time homebuyer credit, which expires in November. And buyers are responding to lower interest rates and lower prices. The median price of a new home in June was was $206,200, down 12% from June, 2008, said the Commerce Dept.

Source: Washington Post

Silverman Leaving NBC

Ben Silverman, co-chair of NBC Entertainment, will depart after the fall TV season to head a new media-content company funded by Barry Diller’s IAC/InterActiveCorp. NBC Universal, owned by General Electric, also named Jeff Gaspin, COO of Universal Television, to become chair of NBC Universal Television Entertainment, effective immediately. NBC, which has suffered poor ratings for years, has been shaking up its executive ranks. Silverman is executive producer of award-winning shows The Office and Ugly Betty.

Source: Wall Street Journal

EBay to Reward Top-Rated Sellers

In a bid to beef up the performance of its core marketplace business, the online auctioneer will grant “Top-Rated Seller” status to sellers who win the highest plaudits from buyers. The sellers will then be able to place a badge designating them as such next to their offerings. They will also win a 20% discount on final fees. The move is part of eBay’s attempt to improve service to buyers in hopes that it will help the company fend off rivals such as Amazon.

Source: MarketWatch.com

Bernanke: Unemployment Will Be Stubborn

The U.S. jobless rate will stay high even when the country’s economy recovers from recession some time in the next few months, according to Federal Reserve Chairman Ben Bernanke. Speaking at a town hall meeting on July 26, Bernanke also said it would take GDP growth of around 2.5% to keep the jobless rate constant. The Fed’s current outlook don’t foresee growth to reach that level at any time during 2009. Bernanke’s comments mark a shift in strategy to get his message to the U.S. population. In a departure from the central banker’s tradition as an aloof and secretive temple of economic policy, Bernanke has jumped into the public spotlight to an extent that none of his predecessors would have contemplated. He has given a television interviews, held televised news conferences, and written newspaper commentaries to explain the Fed’s efforts to fight the financial crisis.

Source: Reuters, New York Times

U.S. Government Takes 34% Stake in Citigroup

The U.S. government is set to take a one-third stake in struggling Citigroup following the completion of a long-awaited $58 billion share offering. The move will increase both the government’s exposure to and influence over the U.S. financial giant.

Source: Financial Times

Bank Lending Shrinks in Second Quarter

The total number of loans held by the 15 largest U.S. banks shrank by 2.8% in the second quarter of 2009. That comes after more than half of the loan volume in April and May came from refinancing mortgages and renewing credit to businesses, not new loans. Analysts reckon financial institutions are clamping down on lending to conserve capital as a cushion against mounting loan losses.

Source: Wall Street Journal

Growing Number of Consumers Stop Repaying Debt

A small, but increasingly noticeable group of cash-strapped consumers are deciding to stop paying off debts. After loading up on credit eagerly provided by the credit card companies during the boom times, people now find themselves trapped in an endless cycle where they are charged interest on interest and fees upon fees while the lenders get government bailouts.

Source: New York Times

Investors Flock to Corporate Bonds

Investor appetite for corporate bonds is on the rise. The investments are benefiting from the generally upbeat mood of the current earnings season on signs in quarterly reports that the U.S. economy is heading toward the end of the recession.

Source: Wall Street Journal

Apple Revamps iTunes

Apple is working with the four largest record labels to increase digital sales of albums. The plan involves bundling a new interactive booklet, sleeve notes, and other features with music downloads in an attempt to alter buying trends on the company’s online music store. The news comes as Apple is frantically finishing work on a full-featured, tablet-sized computer in time for the Christmas shopping season.

Source: Financial Times

U.S. and China Meet for High-Level Talks

Climate change, protectionism fears, and questions about how China navigates its rise as a global economic power will dominate the agenda on July 27 when the administration of U.S. President Barack Obama resumes a senior-level U.S.-China economic dialogue initiated in the Bush Administration. Few experts, though, expect any serious progress on the main issues separating the two economic giants.

Source: BusinessWeek

Skilled Immigrants Start to Leave U.S.

A rising number of highly skilled immigrants are preparing to leave the U.S. as the nation’s economy slows. With the U.S. unemployment rate approaching double digits, job opportunities are diminishing and calls to restrict immigration have gotten louder. Those who favor tightening the rules argue that U.S. citizens should get first priority for jobs.

Source: BusinessWeek

High-Flying Kuwaiti Banker Commits Suicide

In a move that has sent shockwaves through the Gulf Arab financial community, a brash Kuwaiti financier facing a fraud suit by U.S. authorities was found dead on July 26 in an apparent suicide. A source said Hazem Al-Braikan appeared to have died from a single gunshot wound to the side of the head, while a policeman standing outside Braikan’s house said the well-connected financier had shot himself.

Source: Reuters