Reverse Spin: Jobs continue their disappearing act

Quick, someone get a tourniquet! The U.S. economy shed jobs at a blistering pace for a second month in a row during November as the unemployment rate jumped to its highest level in more than six years, the Department of Labor said Friday.

The government reported that another 331,000 non-farm jobs were eliminated last month, far above the 189,000 that Wall Street and economists had expected. Adding insult to injury, the government revised its tally of job losses in October – boosting the final number to 468,000, from 415,000.

The unemployment rate in November climbed to 5.7%, from 5.4% in October. The unemployment news, which sent the stock market into negative territory Friday, came just days before Federal Reserve policymakers are scheduled to meet to consider yet another interest rate cut.

The Fed, bless its little heart, has reduced rates 10 times already this year. An 11th cut is a no-brainer, say those with brains. “We were set up for strength, but we got weakness. The details are not pretty,” said Christopher Low, chief economist in New York with First Tennessee Capital Markets Corp. of Memphis.

“I think this is going to make the market think about leaning toward a half [percentage]-point cut. It definitely takes no cut off the table.”

AOL farewell

Gerald Levin is leaving.

Mr. Levin, 62, the man behind the deal that created the world’s largest media company – AOL Time Warner Inc. – said Wednesday he will step down as chief executive in May to get in touch with his “sensitive, creative side.”

Richard Parsons, 53, the co-chief operating officer, will succeed Mr. Levin. Mr. Parsons said there will be no major strategy shift.

“What I want to do now is spend a lot more time focusing on our people, because I’m a firm believer that at the end of the day it’s about the people, and providing them some leadership and helping them better understand the strategies of the company, and [that] they fit,” he said.

Let’s hope Mr. Parsons’ highly touted people skills serve him well in dealing with fellow co-COO Robert Pittman, the man he beat out for the top spot. On Friday, AOL’s shares took a beating after a Merrill Lynch & Co. Inc. analyst, Jessica Reif Cohen, cut her revenue and cash flow estimates for the company, in part because of Mr. Levin’s retirement.

Schwab scrubs biz

Global? Did we say we want to be global? Charles Schwab & Co., the nation’s No. 1 discount broker, said Friday it is exiting the Australian and Japanese markets because of bad trading conditions.

Meanwhile, it was reported that New York’s Merrill Lynch & Co. Inc. is also considering plans to cut back its role in a global online banking strategy with HSBC Holdings PLC as the slowdown in global markets has reduced investor demand for such services.

Disclosure glass: Is it half empty?

Apparently Wall Street folks can’t quite understand full disclosure.

A study by a Securities and Exchange Commission member of a year-old rule forcing companies to disclose key information to the public and Wall Street at the same time has concluded that the agency should consider issuing further guidance on what is considered “material information.”

The study, written by Commissioner Laura Unger, also surmised that Regulation Full Disclosure has increased investor access to information but needs further study.

“The regulation’s impact on the amount and quality of information investors receive has not yet been quantified,” Ms. Unger says in the report, which was released Thursday.