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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

In brief: Saudis don’t see need to cut OPEC output

From Wire Reports

VIENNA – Top OPEC producer Saudi Arabia suggested Wednesday there is no need for the cartel to cut its output ceiling despite a plunge in prices that has poorer members of the organization hurting.

Saudi Oil Minister Ali Naimi told reporters he expects the oil market to eventually “stabilize itself.” That suggests the Saudis, who effectively determine OPEC’s production policy, will not back any calls for reducing output by other nations at today’s oil ministers’ meeting.

The global price of oil has fallen 32 percent since late June to $78 a barrel.

Japan will bounce back, ADB president says

MANILA, Philippines – The president of the Asian Development Bank said Wednesday that Japan’s economy is expected to return to growth in the fourth quarter of this year and its recession will have little impact on Southeast Asian economies.

Japan earlier this month said its economy, which is the world’s third-biggest after the U.S. and China, slipped into recession in the third quarter. It contracted an annualized 1.6 percent in the July-September period as consumer and corporate spending failed to gain momentum after a sales tax increase in April.

Economic reports

New home sales: Sales of new U.S. homes edged up modestly in October, led by a big jump in activity in the Midwest. New home sales advanced 0.7 percent last month to a seasonally adjusted annual rate of 458,000, the Commerce Department reported Wednesday.

Pending home sales: The National Association of Realtors said Wednesday its seasonally adjusted pending home sales index fell 1.1 percent in the past month to 104.1. The index remains below its 2013 average but is 2.2 percent higher than last October. Pantheon Macroeconomics’ Ian Sheperdson said the latest numbers are “more evidence that the trend in housing market activity is flat, despite the gains in existing home sales in the past couple of months.”

Mortgage rates: Average U.S. long-term mortgage rates ticked down for the third straight week, a positive trend for potential homebuyers. Mortgage company Freddie Mac said the nationwide average for a 30-year mortgage declined to 3.97 percent this week from 3.99 percent last week.

Jobless benefits: The number of people seeking U.S. unemployment benefits jumped last week, pushing total applications above 300,000 for the first time in nearly three months. Weekly applications rose 21,000 to a seasonally adjusted 313,000, the Labor Department said Wednesday. That’s the highest level since the first week of September. The four-week average, a less volatile measure, rose 6,250 to 294,000. The increase is unlikely to raise concerns about the broader health of the job market.