Finance topics

May 28, 2010

Donations pour in for border protection

Filed under: marketing — Tags: , — Gogo @ 8:18 am

Arizona’s effort to secure the state’s border with Mexico has generated enough cash donations to require the establishment of a special fund.

State Treasurer Dean Martin and State Representative Doris Goodale (R-Dist. 3) have set up the Border Fence Support Fund aimed at helping the state and its border protection efforts.

Martin spokeswoman Kimberly Yee said letters containing checks as well as e-mails requesting information about how to donate have been pouring into state offices since the immigration controversy began. While officials still are tallying the total, it’s estimated that at least several hundred dollars will be deposited into the account immediately, she said.

The fund was created through two state laws, A.R.S. 41-1105 and A.R.S. 35-149, and will serve as a depositing account for contributions written to the state of Arizona to help finance capital costs associated with building a secure fence along the border between Arizona and Mexico.

“We have waited long enough for the federal government to build viable protection along our border. If the government won’t secure our border, we will. This fund will be used to create security barriers and provide grants to local law enforcement that bear the brunt of the government’s open border policy,” said Martin.

Yee also said the account helps to ensure a trusted outlet for contributions. Officials believe that the establishment of this type of fund is a nationwide first.

Donations may be made directly to: http://www.aztreasurer.gov/borderFenceSupportFund.html.

Source

May 25, 2010

Continental recalls some furloughed pilots

Filed under: news — Tags: , , — Gogo @ 10:54 am

Continental Airlines is recalling some of the pilots it furloughed several years ago, as the company ramps up international flights and replaces retiring older pilots.

Continental (CAL, Fortune 500) spokeswoman Julie King said the airline is recalling 15 of the 147 pilots it furloughed in 2008. In addition, it is putting more than 100 pilots back on active status from the voluntary leaves of absence that they took in 2008.

Some of these pilots will be flying the company’s two recently acquired Boeing 777s, which will be used for international flights, King said.

Continental furloughed the pilots during a particularly tough year for the airline industry, which has struggled to cope with stagnant business and vacation travel thanks to the recession, as well as volatile fuel prices.

"We are pleased to see our pilots returning," said Capt. Jay Pierce, a Continental pilot and a chairman for the Continental chapter of the Air Line Pilots Association. "With the anticipated delivery of new aircraft, the improvements in the economy and the expectations for increased passenger travel during the upcoming summer vacation season, the return of our furloughed pilots — all of them — is needed to maintain the level of service that Continental is known for."

Hunter Keay, senior airline analyst for Stifel Nicolaus & Co payday lenders., said the recall is a small but positive sign for the airline industry.

"Clearly, the industry is recovering, but I think certain regions are performing better than others, and certain airlines are outperforming others," said Keay. "I think that’s a bullish indicator for the demand that Continental sees in its core markets."

The recall is occurring as Continental prepares to merge with UAL Corp.’s United Airlines.

UAL Corp. (UAUA, Fortune 500) announced on May 3 that United will merge with Continental in a deal worth $3.2 billion, creating the world’s largest airline.

The combined company, which will fly under the United moniker and Continental logo, will be larger than Delta Air Lines (DAL, Fortune 500), which became the country’s largest airline when it merged with Northwest Airlines in 2008.

Helane Becker, airline analyst for Jesup & Lamont Securities Corp., said the airlines pledged that they would not lay off pilots as part of the merger.

She cast Continental’s pilot recall as a sign that the airline recognized that its latest staff cuts were "more muscle than fat." 

Source

May 23, 2010

Speaker: Businesses need better Chinese access

Filed under: management — Tags: , — Gogo @ 8:51 pm

Businesses, including those in Dayton, need better access to the Chinese market, one of the largest in the world.

That was the message from John Manzella, president of Manzella Trade Communications Inc., who was the keynote lunch speaker Thursday at the Miami Valley International Trade Association’s World Trade Day.

Trade between the United States and China is changing, he said. It started with American businesses buying direct from China, then went to American businesses producing in China and selling products globally. Now, the current state of trade has businesses producing in China to sell to China’s domestic market, Manzella said.

“We have access, but we want to have continuing, unwavering access,” Manzella said.

Manzella Trade Communications is a communication and public affairs firm in New York. The meeting also included other presentations on the theme of doing business with China.

Manzella’s point was about the essential relationship between these two countries. China is the U.S.’ fastest growing and third largest export market, he said. Top trading partners of the U.S. are Canada and Mexico.

The lunch talk featured several points, according to Manzella.

• China is setting its own agenda and doing what it sees as right for its country; and

• China has shown confidence coming out of the Great Recession and needs the U.S. less. However, both countries are mutually dependent. China needs access to U.S. and world markets, the U.S. needs China to help finance its debt and both need to cooperate on political issues such as North Korea and Iran relations, terrorism and climate change.

“If we view China as the enemy, every issue that comes up will default to fear,” Manzella said.

The message needs to be taken to heart politically and economically, said C. Don Niece, a consultant in import and export regulations for compLight LLC of Tipp City. The importance of doing business with China depends on the industry and not a company’s size, he said.

“Its got to be one of the most important markets,” said Niece, who was at the Trade Association’s lunch.

Manzella is the author of “Grasping Globalization: Its Impact and Your Corporate Response.”

The Miami Valley International Trade Association is a nonprofit organization for networking in overseas development and has 80 company members.

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May 19, 2010

Wall Street faces N.Y. probe on ratings data

Filed under: technology, term — Tags: , , — Gogo @ 12:24 pm

New York Attorney General Andrew Cuomo is launching an investigation into some of Wall Street’s top firms to determine whether they provided misleading information to credit rating agencies.

A total of eight firms are part of the probe, including Goldman Sachs, Morgan Stanley, Deutsche Bank, Credit Suisse (CS), Citigroup, UBS, Credit Agricole and Merrill Lynch, which has since been acquired by Bank of America (BAC, Fortune 500).

Cuomo’s office confirmed that it is launching the investigation, which was initially reported by The New York Times, but would not comment further.

Bank of America spokesman Bill Halldin said the bank is "cooperating with the attorney general’s office on this matter," and Credit Agricole released a statement confirming it too is part of the investigation and will cooperate with authorities. Credit rating agency Fitch said it also plans to cooperate in the investigation.

Goldman Sachs, UBS and Citigroup declined to comment. Spokespeople for the other institutions named were not immediately available.

Critics have repeatedly suggested that the relationship between Wall Street firms and the credit rating agencies was a key factor contributing to the economic meltdown.

Hungry for business, rating agencies assigned top marks to securities issued by banks that would eventually turn toxic. Financial firms, on the other hand, would employ a wide variety of techniques to get higher ratings on their investment products, according to the critics.

Critics have long grumbled that the rating agencies were also slow to lower the debt ratings for troubled financial firms and warn of the risks of bonds and other securities tied to subprime mortgages.

A separate report published Thursday revealed that federal prosecutors are expanding a criminal probe into whether big banks misled investors about their participation in mortgage-bond deals, according to the Wall Street Journal.

The newspaper, citing a person familiar with the matter, said JPMorgan Chase (JPM, Fortune 500), Citigroup (C, Fortune 500), Deutsche Bank (DB) and UBS (UBS) have received civil subpoenas from the Securities and Exchange Commission.

They join fellow Wall Street firms Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500), which are believed to be under the scrutiny by U.S. prosecutors and regulators.

The paper said the U.S. Attorney’s office in New York and the SEC are working together to see whether these firms made proper disclosures when they created and sold complex investments tied to home loans, better known as collateralized debt obligations, or CDOs.

The U.S. Attorney’s office in New York declined to comment on the Journal report, as did Citigroup and UBS. Spokespeople for the other institutions named in the story were not immediately available.

The reports of the widening criminal probes of Wall Street banks weighed on bank shares Thursday. Most of the companies were trading lower.

Goldman shares are down about 22% since the SEC filed fraud charges against it last month.

Morgan Stanley shares tumbled Wednesday when reports that it was being investigated first surfaced, but the stock pared losses and ended the day just 2% lower. Shares were slightly higher Thursday.

– CNNMoney.com’s David Ellis and Grace Wong contributed to this story. 

Source

May 16, 2010

Mortgage rates at lowest level of the year

Filed under: technology — Tags: , , — Gogo @ 9:09 am

Long-term mortgage rates fell to the lowest level of the year this week, after falling for five consecutive weeks.

Freddie Mac's (NYSE: FRE) weekly rate report puts the average 30-year fixed-rate mortgage at 4.93 percent in the week ending May 13, down from 5 percent last week.

A one-year adjustable rate mortgage was 4.02 percent, down from 4.07 percent.

With the homebuyer tax credit now expired, low borrowing rates remain the most attractive incentive for buyers.

The National Association of Realtors this week reported year-over-year housing prices rose in 91 of the nation's 151 largest metropolitan areas. In the Washington area, median prices last quarter were up 4.7 percent from a year ago.

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May 10, 2010

‘Old’ Internet flaw persists

Filed under: marketing — Tags: , — Gogo @ 8:48 am

In 1998, a hacker told Congress that he could bring down the Internet in 30 minutes by exploiting a certain flaw that sometimes caused online outages by misdirecting data. In 2003, the administration of President George W. Bush concluded that fixing this flaw was in the nation’s "vital interest."

Fast forward to 2010, and very little has happened to improve the situation. The flaw still causes outages every year. Although most of the outages are innocent and fixed quickly, the problem still could be exploited by a hacker to spy on data traffic or take down websites. Meanwhile, our reliance on the Internet has only increased. The next outage, accidental or malicious, could disrupt businesses, the government or anyone who needs the Internet to run normally.

The outages are caused by the somewhat haphazard way that traffic is passed between companies that carry Internet data. The outages are called "hijackings," even though most of them are not caused by criminals bent on destruction. Instead the outages are a problem borne out of the open nature of the Internet, a quality that also has stimulated the Net’s dazzling growth.

"It’s ugly when you look under the cover," says Earl Zmijewski, a general manager at Renesys Corp., which tracks the performance of data routes. "It amazes me every day when I get into work and find it’s working."

When you send an e-mail, view a Web page or do anything else online, the information you read and transmit is handed from one carrier of Internet data to another, sometimes in a long chain. When you log into Facebook, your data might be handed from your Internet service provider to a company such as Level 3 Communications Inc., which operates a global network of fiber-optic lines that carry Internet data across long distances. It, in turn, might pass the data to a carrier that’s connected to Facebook’s servers.

The crux of the problem is that each carrier along the way figures out how to route the data based only on what the surrounding carriers in the chain say, rather than by looking at the whole path. It’s as if a driver had to get from Philadelphia to Pittsburgh without a map, navigating solely by traffic signs he encountered along the way — but the signs weren’t put up by a central authority. If a sign pointed in the wrong direction, that driver would get lost.

That’s essentially what happens when an Internet route gets hijacked. Because carriers pass information between themselves about where data should go — and this system has no secure, automatic means of verifying that the routing information is correct — data can be routed to some carrier that isn’t expecting the information. The carrier doesn’t know what to do with it, and usually just drops it. It falls into a "black hole."

On April 25, 1997, millions of people in North America lost access to the Internet for about an hour. The hijacking was caused by an employee misprogramming a router, a computer that directs data traffic, at a small Internet service provider.

A similar incident happened elsewhere the next year, and the one after that. Routing errors also blocked Internet access in different parts of the world, often for millions of people, in 2001, 2004, 2005, 2006, 2008 and 2009. Last month a Chinese Internet service provider halted access from around the world to a vast number of sites, including Dell.com and CNN.com, for about 20 minutes.

In 2008, Pakistan Telecom tried to comply with a government order to prevent access to YouTube from the country and intentionally "black-holed" requests for YouTube videos from Pakistani Internet users. But it also accidentally told the international carrier upstream from it that "I’m the best route to YouTube, so send all YouTube traffic to me." The upstream carrier accepted the message, and passed it along to other carriers across the world, which started sending all requests for YouTube videos to Pakistan Telecom. Soon, even Internet users in the U.S. were deprived of videos of singing cats and skateboarding dogs for hours.

In 2004, the flaw was put to malicious use when someone got a computer in Malaysia to tell Internet service providers that it was part of Yahoo Inc. A flood of spam was sent out, appearing to come from Yahoo.

"Hijacking is very much like identity theft. Someone in the world claims to be you," said Todd Underwood, who worked for Renesys during the Pakistan Telecom hijacking no fax pay day loans. He now works for Google Inc., trying to prevent hijacking of its websites, which include YouTube.

In 2003, the Bush administration’s Critical Infrastructure Protection Board assembled a "National Strategy to Secure Cyberspace" that concluded that it was vital to fix the routing system and make sure the "traffic signs" always point in the right direction.

But unlike Internet bugs that get discovered and fixed relatively quickly, the routing system has been unreformed for more than a decade. And while there’s some progress being made, there’s little industry-wide momentum behind efforts to introduce a permanent remedy. Data carriers regard the fallibility of the routing system as the price to be paid for the Internet’s open, flexible structure. The simplicity of the routing system makes it easy for service providers to connect, a quality that has probably helped the explosive growth of the Internet.

That growth has also increased the risks exponentially. Fifteen years ago, maybe 8,000 people in the world had access to computers that use the Border Gateway Protocol, or BGP, which defines how carriers pass routing information to each other. Now, Danny McPherson, chief security officer at Arbor Networks, believes that with the growth of Internet access across the world and the increase in the number of carriers, that figure is closer to 1 million people.

Peiter Zatko, a member of the "hacker think tank" called the L0pht, told Congress in 1998 that he could use the BGP vulnerability to bring down the Internet in half an hour. In recent years, Zatko — who now works for the Pentagon’s Defense Advanced Research Projects Agency — has said the exploit would still work. However, it would likely take a few hours rather than 30 minutes, partly because a greater number of carriers would need to be hit.

Plenty of solutions have been proposed in the Internet engineering community, going back as far as 1995. The U.S. government has supported these efforts, spurred in part by the Bush administration’s 2003 statement. That has resulted in some trials of new technology, but adoption by carriers still appears distant. And the government doesn’t have any direct authority to force changes.

One reason is that the weaknesses are in the routing between carriers. It doesn’t help if one carrier introduces a new system — every one it connects with has to make the change as well. "It’s kind of everybody’s problem, because it impacts the stability of the Internet, but at the same time it’s nobody’s problem because nobody owns it," says Doug Maughan, at the Department of Homeland Security.

Pieter Poll, the chief technology officer at Qwest Communications, says he would support some simple mechanisms to validate data routes, but he argues that fundamental reform isn’t necessary. Hijackings are typically corrected quickly enough that they don’t pose a major threat, he argues.

One fix being tested would stop short of making the routing system fully secure but would at least verify part of it. Yet this system also worries carriers because they would have to work through a central database.

"My fear is that innovation on the Internet would slow down if there’s a need to go through a central authority," Poll says.

Jeffrey Hunker, a former senior director for critical infrastructure in the Clinton administration, says he’s not surprised that little has happened on the issue since 2003. He doesn’t expect much to happen in the next seven years, either.

"The only thing that’s going to drive adoption is a major incident, which we haven’t had yet," he says. "But there’s plenty of evidence out there that a major incident would be possible."

In the meantime, network administrators deal with hijacking an old-fashioned way: calling their counterparts close to where the hijacking is happening to get them to manually change data routes. Because e-mails may not arrive if a route has been hijacked, the phone is a more reliable option, says Tom Daly, chief technical officer of Dynamic Network Services Inc., which provides Web hosting and other Internet services.

"You make some phone calls and hope and pray," Daly says.

Source

May 8, 2010

The next ‘hot’ careers

Filed under: technology — Tags: , — Gogo @ 3:12 am

Dear Annie: I’m a sophomore in college, majoring in business. Even though I still have two more years of school ahead of me, I’m trying to figure out what kinds of jobs are likely to be available when I graduate. For one thing, having a handle on that would help me choose a minor. I’ll also be graduating with loans to pay off, so I’ll need to start working right away.

I was interested in your column about green jobs ("Getting a green job isn’t so easy") because it mentioned some creative ways to find opportunities. Do you have any suggestions about identifying other areas (aside from green jobs), where companies might be hiring a few years from now? – Early Bird

Dear Early: Interesting question! I put it to Eileen Habelow, Ph.D., senior VP of organizational development with Randstad, a global staffing and human resources consulting firm. Habelow has made a specialty of helping new college grads scope out their career options. In her previous job, as regional vice president for New England, "I was surrounded by sharp new grads," she says. "I wanted them to be outrageously successful in their first jobs, so I got very interested in figuring out where great opportunities are likely to turn up."

A good place to start: The Bureau of Labor Statistics’ Occupational Outlook Handbook. The current edition offers a wealth of statistical projections up to the year 2018, including recession-adjusted estimates of employment growth in dozens of industries and hundreds of occupations. Right now, the BLS is expecting the greatest amount of job creation — about 4 million jobs, or more than one quarter of all new jobs over the next 8 years — in the health care industry.

Which brings us to Habelow’s first tip: Watch the news closely, with an eye toward what it implies for the job market. For instance, even before health care reform was passed into law, health care was a promising field because of the aging of the U.S. population. Now, "the move toward universal health care — adding 30 to 40 million people to the ranks of the insured — will give rise to even more jobs than we thought, in government and elsewhere," she says.

But, you may be thinking, you’re majoring in business, not nursing, pre-med, or, say, physical therapy. That’s just fine. "Don’t forget that ‘health care’ includes finance, human resources, law, technology, and every other discipline that other businesses need," Habelow points out. "When a health care-related company grows, the whole company grows, not just the part that provides direct care to patients. There is a ratio of support staff to medical staff, so the more care is provided, the more of those other kinds of jobs will become available."

Talkback: What do you think the next hot jobs will be?Leave your comments at the bottom of this story.

Although health care is making headlines these days, you can watch the news for other signs of job growth as well. For example, the recession has tightened credit for consumers and small businesses, but in normal times, a drop in interest rates often spurs an uptick in borrowing, so banks need more loan officers and loan processors.

Obviously, any industry or company that’s experiencing a growth spurt is likely to be hiring but, more surprisingly, so are companies that are laying people off. "People often hesitate to apply at companies that have announced layoffs," says Habelow, "but we’ve found that about 50% of them will have openings they’re trying to fill at the same time."

"One advantage to applying at a company where layoffs are occurring is that you will face less competition because others will be reluctant to apply there," she adds.

Two more thoughts: First, you’ll have a great head start on launching your career if you have a specific goal in mind for your first job. "Think about the way you picked your college — urban versus rural, what part of the country, big versus small, and all the other criteria you looked at — and do the same for your job hunt," Habelow suggests. "If you know what you want, you can narrow it down to something like, ‘I want to find a finance job at a pharmaceutical company in the Northeast.’ Then thoroughly research all the possibilities that fit that description, and you’ll have a solid foundation for your job hunt."

And second, keep in mind that all employers want new hires with these four skills: strong communications (including being able to write clearly and use correct grammar), great interpersonal and teamwork abilities, enthusiasm, and a willingness to work hard.

"While you’re researching job openings, make sure you stand out in those four areas," says Habelow. "Combat the Gen Y stereotype. An employer can teach you the technical aspects of a job, but they can’t give you those essential traits. You have to bring them with you."

Talkback: Do you wish you’d studied something else in college that would have prepared you for a more successful career? Tell us on Facebook, below. 

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May 4, 2010

Tax-free bonds will help SSM Health Care

Filed under: term — Tags: , , — Gogo @ 8:21 am

SSM Health Care Corp. will receive $16.5 million in tax-exempt bonds to renovate and equip its hospitals and health care facilities, the Missouri Department of Economic Development announced Wednesday.

SSM Health Care a Catholic, not-for-profit health system will make improvements to Cardinal Glennon Children Medical Center in St. Louis, St. Clare Health Center in Fenton, St. Joseph Health Center in St. Charles, St. Joseph Hospital West in Lake Saint Louis, DePaul Health Center in Bridgeton and St. Mary’s Health Center in Jefferson City.

The state’s private activity bonds, provided by the federal government, are part of a greater bond issue of $581 million that will be sold in Wisconsin and Missouri, said SSM spokesman Chris Sutton.

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