The news at glance

Economy: Another dismal jobs report

New figures showed U.S. job growth slowing to a crawl, underlining the political peril posed to President Obama’s re-election by the anemic recovery, said Michael Fletcher in The Washington Post. The Labor Department reported that employers added only 96,000 jobs last month, far below the 125,000 expected by economists. The unemployment rate fell to 8.1 percent, down from 8.3 percent in July, but only because 368,000 people gave up looking for work. President Obama said the report was “not good enough,” but noted that the economy had now produced a net increase in jobs for 30 months in a row.

“The economy is now officially behind schedule compared to 2011,” said Derek Thompson in TheAtlantic.com. The average monthly job gain last year was 153,000; this year, it’s only 139,000. August’s report also set two troubling records: The share of working-age Americans who either have a job or are looking for one fell to 63.5 percent, the lowest level since 1981, and the labor rate for men fell to its lowest point since 1948, when records began. That said, the economy is still growing, “but slowly, decimal by decimal, and too subtly to make a difference for the millions of Americans who feel locked out.”

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Tech: Apple unveils iPhone 5

Following months of rumors and hype, Apple presented its latest smartphone this week, said Jenna Wortham in NYTimes.com. The iPhone 5, which Apple boasts is the thinnest smartphone ever made, features a larger screen, a faster processor, longer battery life, and improved cameras. It’s “the most beautiful product we’ve made, bar none,” said Phil Schiller, Apple’s marketing chief. The new phone will go on sale in the U.S. on Sept. 21, and in 100 countries by the end of the year.

Bailouts: U.S. sells chunk of AIG for profit

The U.S. government sold nearly $21 billion worth of AIG stock this week, said Jim Puzzanghera in the Los Angeles Times, reducing its stake in the bailed-out insurance giant from 53.4 percent to less than 16 percent. The Treasury Department, which committed $182 billion to bailing out AIG, said it has now turned a $15.1 billion profit on the rescue. “To stabilize and then restructure the company with a very substantial positive gain for the American taxpayer is a significant accomplishment,” Treasury Secretary Timothy Geithner said.

Taxes: Whistle-blower awarded $104 million

A former UBS banker who blew the whistle on the Swiss bank’s efforts to help wealthy Americans evade taxes received the largest reward in IRS history this week, saidAlan Fram in the Associated Press. Bradley Birkenfeld, 47, was awarded $104 million for revealing secrets of the Swiss banking system beginning in 2007. He helped spark a probe that led to UBS being fined $780 million and the recovery of billions of dollars in unpaid taxes. Last month, Birkenfeld was released from prison after serving a two-and-a-half-year sentence for conspiracy related to the bank’s practices.

Washington: A new threat to U.S. credit rating

Moody’s could join its rival Standard & Poor’s in stripping the U.S. of its AAA credit rating, said Robin Harding and James Politi in the Financial Times. The ratings agency warned this week that it might downgrade the U.S. if Congress fails to reach a deficit reduction deal by early next year. To retain the top rating, Moody’s said, lawmakers must not only strike a deal to avert the fiscal cliff—the spending cuts and tax increases set to begin in January—but also agree to shrink America’s debt pile over the medium term.