FINANCIAL & BUSINESS NEWS

Last Update on February 07, 2012 18:10 GMT

DOLLAR

NEW YORK (AP) -- The euro is rising against the dollar on expectations that Greek politicians will agree on a new cost-cutting plan.

Greece needs to agree on new austerity measures in order to receive more bailout cash. Without the money, Greece could default on its debt next month. A default could hurt European banks and disrupt financial markets.

Greek politicians are expected to meet later today.

The euro was up to $1.32 in midday trading from $1.31 late yesterday. The euro rose as high as $1.33 earlier in the day, its highest point since Dec. 12.

The dollar is also falling against the British pound, Swiss franc and Canadian dollar. But it's rising against the Japanese yen.

BERNANKE

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke (bur-NANG'-kee) is warning the economy could be hit by shocks from higher taxes next year.

Speaking to a Senate panel today, the Fed chief urged lawmakers to resolve debates over tax cuts that expire this month and at the end of the year, saying uncertainty around both could slow the economy.

Bernanke says he agrees with an analysis by the Congressional Budget Office that growth would slow to 1.1 percent next year if the so-called Bush tax cuts expire. He also says the economy would be hampered if a Social Security tax cut expires at the end of this month.

The tax cuts hinge on a debate over trimming the federal deficit, which is projected to run above $1 trillion for the fourth straight year. Democrats want to increase taxes on the wealthy. Republicans oppose that approach and want to focus on spending cuts.

JOB OPENINGS

WASHINGTON (AP) -- There's more encouraging employment news today.

The Labor Department says the number of available jobs jumped in December to near a three-year high. This follows Friday's optimistic report that the jobless rate dropped to 8.3 percent.

Companies and governments posted 3.38 million jobs in December. That's up from the 3.12 million advertised in the previous month. Job openings in the private sector reached the highest point in almost three and a half years.

There were still 13.1 million people unemployed that month, which means an average of 3.9 people competed for each open job. It's the first time in four years that ratio was below 4 to 1.

In a healthy job market, the ratio is usually around 2 to 1.