Finance topics

January 6, 2012

U.S. Consumer Comfort Climbs to 5-Month High - Bloomberg

Filed under: Homes, management — Tags: , , , — Gogo @ 3:52 pm

Consumer confidence in the U.S. rose last week to the highest level in more than five months and the pace of firings declined, showing an improving job market is bolstering the biggest part of the economy.

The Bloomberg Consumer Comfort Index (COMFCOMF) climbed to minus 44.8 in the period ended Dec. 31, the best reading since mid-July, from minus 47.5 the prior week. Applications for jobless benefits (INJCJC) decreased by 15,000 during the same time to 372,000, according to Labor Department figures.

A pickup in hiring will further lift Americans

January 4, 2012

Greek PM warns of default without loan deal

Filed under: Loans, management — Tags: , , , — Gogo @ 11:48 pm

Greece’s prime minister says his debt-crippled country faces a disorderly default in March if it fails to secure a continued flow of international rescue loans.

Prime Minister Lucas Papademos says decisions made in the next few weeks, ahead of a new visit by international debt inspectors, will determine whether Greece will remain in the 17-nation eurozone or revert to its pre-2002 currency, the drachma.

According to a transcript from his office, Papademos told union leaders and employer representatives Wednesday that Greece’s international creditors have called for a re-examination of labor costs to boost lagging competitiveness and fight high unemployment.

He warned that, unless significant reforms are made, Greece will not receive its next installment of rescue funds.

Source

January 3, 2012

Construction spending near 1-1/2 high in November

Filed under: Business, technology — Tags: , , , — Gogo @ 10:04 am

Construction spending surged to a near 1-1/2 year high in November as investment in public and private projects rose solidly, cementing expectations of

strong economic growth in the fourth quarter.

Construction spending increased 1.2 percent to an annual rate of $807.1 billion, the highest level since June 2010, the Commerce Department said on Tuesday.

Spending in October was revised to a 0.2 percent fall, after initially reported as a 0.8 percent rise.

Economists polled by Reuters had expected construction spending to rise 0.5 percent in November.

Overall construction spending was up 0.5 percent compared to November 2010.

Private construction spending rose 1.0 percent, advancing for a fourth straight month. Spending on residential projects increased 2.0 percent, with solid gains in both multifamily and single family homes.

The housing market is showing some signs of recovery, with builders breaking more ground on new projects to meet growing demand for rental apartments. It is becoming less of a drag on the economy and is expected to significantly add to growth in 2012.

Private nonresidential construction was flat in November after declining 0.6 percent the prior month.

Spending on public sector construction rebounded 1.7 percent in November as outlays on federal projects jumped 5.3 percent after dropping 7.5 percent in October.

State and local government spending rose 1.3 percent after falling 1.2 percent the prior month.

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January 1, 2012

Singapore GDP Slowed to 4.8% as Lee Predicts

Filed under: Uncategorized, marketing — Tags: , , , — Gogo @ 10:28 am

Singapore

December 30, 2011

RCGA: F-15 deal worth $2.9B a year to local economy.

Filed under: marketing, term — Tags: , , , — Gogo @ 5:56 pm

It was pretty clear from the start that this week’s news that Saudi Arabia is buying 84 new F-15 fighters from The Boeing Co. would have a big impact on the St. Louis region.

Today, the Regional Chamber and Growth Association took a stab at counting just how big.

While the $30 billion deal is not expected to create any new jobs, it will prolong production of the F-15, which is largely built at Boeing’s plant in north county, by about five years, through 2020.

That production supports about 1,000 manufacturing jobs at Boeing, and contribute to nearly 4,000 more through local suppliers and spinoff activity, according to RCGA economist Ruth Sergenian. Those direct jobs generate $1.1 billion a year in wages and other economic activity, and the indirect impact is another roughly $1.8 billion.

It’s worth noting that these sort of estimates are notoriously rough, and that something else might well fill the void were Boeing’s F-15 production to go away. But, for now, it’s not, and 2.9 billion more dollars flowing through the region’s economy every year is a pretty good thing.

Source

December 29, 2011

Asian stocks mostly down on mixed US economic news

Filed under: Loans, management — Tags: , , , — Gogo @ 5:52 am

Asian stocks markets were mostly lower Wednesday, with trading thinned by year-end holidays and mixed economic news out of the U.S.

Hong Kong’s Hang Seng index fell 0.4 percent to 18,556.53. South Korea’s Kospi lost 0.9 percent to 1,825.94 and Australia’s S&P ASX 200 lost 0.9 percent to 4,103.90. Benchmarks in mainland China and the Philippines were also lower.

Bucking the trend was Japan’s Nikkei 225 index, which rose 0.1 percent to 8,449.54. While Japan’s industrial output dropped last month, government forecasters expect manufacturing and production to rebound this month and next.

Industrial output dropped a seasonally adjusted 2.6 percent in November, the government said. It was the first decline in two months paydayloan.

Trading, falling between the Christmas holiday and New Year’s, was generally light.

On Wall Street on Tuesday, the Dow Jones lost less than 0.1 percent to close at 12,291.35. The S&P 500 was up marginally to 1,265.43. The Nasdaq composite rose 0.3 percent to 2,625.20.

Consumer confidence surged to an eight-month high, but home prices fell in 19 of the 20 cities tracked by the Standard & Poor’s/Case-Shiller index. That report dampened investors’ enthusiasm about a jump in consumer confidence to the highest level since April.

Source

December 27, 2011

White House to seek increase in borrowing limit

Filed under: marketing, money — Tags: , , , — Gogo @ 4:20 pm

The Obama administration will ask Congress to raise the nation’s borrowing limit by $1.2 trillion this week, marking the third and final increase from a deal negotiated over summer.

Treasury officials said Tuesday that the increase is necessary because the government will be within $100 billion of its current limit by Friday.

The debt limit is the amount the government can borrow to finance its operations. The latest increase will boost that limit to $16.4 trillion. Officials say that should be enough to allow the government to keep borrowing until the end of 2012 _ just after the presidential election.

Congress can reject the request, although Obama can veto their objection. If Congress doesn’t act by Jan. 14, the increase will take place automatically.

The national debt has soared because the government has run record deficits over the past decade. The borrowed money has helped pay for two wars, stimulate the nation’s economy after the worst recession since the Great Depression and finance broad tax cuts initiated during the Bush administration.

The enormity of the debt has also stoked intense partisan debate in Congress over spending and taxes. Polls show growing voter anger with the inability of both parties to reach solutions to the country’s budget problems fast cash now.

In August, Congress and the administration agreed to raise the borrowing limit by $2.1 trillion in three steps. The deal was reached hours before a potential default on the nation’s debt and only after the parties also agreed to cut more than $2 trillion from the deficit over the next 10 years.

Still, the parties are at odds over how to reduce the deficit. In November, a bipartisan panel failed to meet a deadline to agree on $1.2 trillion of the cuts. That means automatic cuts of that amount will begin in January 2013 _ a condition included in last summer’s deal.

Republicans want to modify the timetable for the automatic cuts, largely because it includes steep cuts to the nation’s defense budget.

Congress agreed to raise the debt limit by $400 billion in August and by another $500 billion in September.

House Republicans voted against the second increase. But they failed to block it because the Senate approved it. The increases are scheduled to take effect unless both chambers vote against them.

Source

December 26, 2011

Slovenia Ratings Cut by Moody

Filed under: legal, online — Tags: , , , — Gogo @ 2:42 am

+%3Cp%3ESlovenia+had+its+credit+rating+lowered+one+step+to+A1+by+Moody%92s+Investors+Service+on+the+potential+need+for+the+government+to+support+its+banking+system+amid+Europe%92s+debt+crisis.+%3C%2Fp%3E+%3Cp%3EThe+euro-area+nation%92s+banking+industry+has+assets+that+are+about+136+percent+of+gross+domestic+product%2C+which+is+%93relatively+large+when+compared+to+other+systems+in+eastern+Europe%2C%94+Moody%92s+said+yesterday+in+a+statement.+It+assigned+a+negative+outlook+to+Slovenia%92s+credit+grade%2C+the+fifth-highest.+Standard+%26amp%3B+Poor%92s+ranks+the+nation+AA-%2C+one+level+higher.+%3C%2Fp%3E+%3Cp%3ESlovenia+was+downgraded+at+Moody%92s+for+the+second+time+in+three+months+as+the+euro+area+struggles+to+resolve+its+sovereign-debt+crisis%2C+prompting+stepped-up+ratings+scrutiny+for+the+region.+S%26amp%3BP+and+Fitch+ratings+said+this+month+they+may+cut+the+scores+of+15+euro-region+members+after+assessing+the+outcome+a+European+Union+summit+on+a+tighter+fiscal+pact.+%3C%2Fp%3E+%3Cp%3E%93Asset+quality+pressure+and+the+euro-area+debt+and+funding+crisis+have+further+exposed+significant+vulnerabilities+in+the+solvency+and+short-term+external+funding+and+overall+business+model+of+the+largest+institutions+in+Slovenia%92s+financial+sector%2C%94+Moody%92s+said.+%3C%2Fp%3E+%3Cp%3EThe+government+is+the+majority+owner+of+the+country%92s+two+biggest+lenders%2C+Nova+Ljubljanska+Banka+d.d.+and+%3Ca+topic_url%3D%22http%3A%2F%2Ftopics.bloomberg.com%2Fnova-kreditna-banka-maribor-dd%2F%22+href%3D%22http%3A%2F%2Fwww.bloomberg.com%2Fapps%2Fquote%3Fticker%3DKBMR%3ASV%22+density%3D%22sparse%22+title%3D%22Get+Quote%22+ticker%3D%22KBMR%3ASV%22+class%3D%22web_ticker%22%3ENova+Kreditna+Banka+Maribor+d.d.+%28KBMR%29+%3C%2Fp%3E+September+Downgrades++%3Cp%3ESlovenia%92s+rating+was+lowered+one+level+by+S%26amp%3BP%2C+Moody%92s+and+Fitch+Ratings+in+September%2C+citing+fiscal+concerns%2C+a+weak+domestic+banking+industry+and+a+poor+outlook+for+the+export-+driven+economy.+The+nation+is+rated+AA-+by+Fitch.+%3C%2Fp%3E+%3Cp%3EThe+former+Yugoslav+republic+needs+to+repay+1.17+billion+euros+%28%241.5+billion%29+in+bonds+next+year%2C+according+to+data+compiled+by+Bloomberg.+%3C%2Fp%3E+%3Cp%3E%93The+further+weakening+economic+growth+outlook+also+complicates+the+government%92s+ability+to+achieve+its+medium-term+fiscal+consolidation+plans%2C%94+Moody%92s+said.+%93The+highly+volatile+funding+conditions+on+the+euro-area+bond+markets+represent+additional+risks+even+for+a+small+issuer+like+Slovenia+in+the+event+that+the+financing+needs+exceed+the+original+estimates.%94+%3C%2Fp%3E+%3Cp%3ESlovenia%92s+borrowing+costs+surged+after+voters+rejected+pension+changes+in+June+and+after+the+European+debt+turmoil+engulfed+Italy%2C+its+neighbor+to+the+west+and+the+third-biggest+trading+partner+after+Germany+and+Austria.+%3C%2Fp%3E+Rising+Yields++%3Cp%3EYields+on+Slovenia%92s+10-year+bonds+reached+a+peak+of+7.77+percent+on+Nov.+11%2C+a+level+that+had+prompted+other+nations+like+Greece%2C+Ireland+and+Portugal+to+seek+assistance+from+the+EU+and+the+International+Monetary+Fund.+%3C%2Fp%3E+%3Cp%3EThe+yield+on+notes+maturing+in+January+2021+has+dropped+since+and+was+at+6.66+percent+today+at+1%3A54+p.m.+in+Ljubljana+from+6.746+percent+yesterday%2C+according+to+data+compiled+by+Bloomberg.+%3C%2Fp%3E+%3Cp%3E%93It+was+no+surprise%2C+but+of+course+there+is+a+constant+source+of+bad+news+flow%2C%94+said+Lutz+Roehmeyer%2C+a+fund+manager+at+Landesbank+Berlin+Invest+in+Berlin+who+oversees+11.5+billion+euros+and+holds+Slovenian+bonds.+%93It+weighs+on+the+sentiment+of+investors+and+funds+with+rating+constraints+get+into+selling+pressure+depending+on+their+specific+rating+limits.%94+%3C%2Fp%3E+%3Cp%3ENova+Ljubljanska+received+a+250+million-euro%2C+three-year+loan+from+the+European+Central+Bank+as+lenders+in+Europe+sought+a+record+489+billion+euros+in+financing%2C+the+Ljubljana-based+bank+said+yesterday.+The+company+wants+to+raise+400+million+euros+by+mid-2012+to+improve+its+capital+ratio+to+above+9+percent.+%3C%2Fp%3E+Bank+Ratings++%3Cp%3EMoody%92s+also+cut+the+debt+and+deposit+ratings+of+three+Slovenian+banks%2C+Nova+Ljubljanska%2C+Nova+Kreditna+and+%3Ca+topic_url%3D%22http%3A%2F%2Ftopics.bloomberg.com%2Fabanka-vipa-dd%2F%22+href%3D%22http%3A%2F%2Fwww.bloomberg.com%2Fapps%2Fquote%3Fticker%3DABKN%3ASV%22+density%3D%22sparse%22+title%3D%22Get+Quote%22+ticker%3D%22ABKN%3ASV%22+class%3D%22web_ticker%22%3EAbanka+Vipa+d.d.+%28ABKN%29%2C+it+said+in+the+statement+today.+The+rating+company+also+downgraded+the+issuer+and+senior+unsecured+ratings+of+SID+Banka%2C+a+government-owned+development+bank.+%3C%2Fp%3E+%3Cp%3ENLB+and+its+smaller+competitor%2C+Nova+Kreditna%2C+said+they+will+probably+report+losses+for+this+year+on+mounting+bad+loans+from+the+sinking+construction+industry+and+as+more+and+more+companies+file+for+bankruptcy+or+receivership.+%3C%2Fp%3E+%3Cp%3ESlovenia+%93believes+that+the+question+of+a+capital+boost+only+relates+to+the+country%92s+biggest+bank+NLB%2C%94+as+Nova+Kreditna+passed+the+recent+test+by+the+European+Banking+Authority%2C+the+Finance+Ministry+in+Ljubljana+said+today.+%3C%2Fp%3E+%3Cp%3E%93With+the+capital+increase+at+NLB%2C+private+investors+are+considered+the+first+option%2C+or+the+participation+of+the+government+that+wouldn%92t+increase+the+country%92s+debt%2C%94+the+ministry+said.+%3C%2Fp%3E+%3Cp%3EBad-loan+provisions+in+Slovenia+surged+40+percent+in+the+first+10+months+from+a+year+ago+to+706+million+euros%2C+the+central+bank+said+in+a+Dec.+7+report.+%3C%2Fp%3E+Savings+Measures++%3Cp%3ESlovenians+on+Dec.+4+elected+the+Positive+Slovenia+party+of+Ljubljana+Mayor+Zoran+Jankovic+in+snap+elections+after+the+previous+government+collapsed+in+September.+%3C%2Fp%3E+%3Cp%3ELawmakers+adopted+savings+measures+of+150+million+euros+by+freezing+by+freezing+public+employees%92+pay%2C+pensions+and+benefit+payments+to+allay+investor+concern+over+its+debt.+%3C%2Fp%3E+%3Cp%3EAll+86+lawmakers+present+voted+for+the+legislation+that+will+come+into+force+from+Jan.+1+and+will+last+until+June+next+year%2C+according+to+a+live+broadcast+by+public+broadcaster+TV+Slovenija.+%3C%2Fp%3E+%3Cp%3E%93I+count+on+Europe+to+take+into+account+these+efforts+and+bond+yields+could+go+lower+if+we+adopt+these+measures%2C%94+Jankovic%2C+who+is+likely+to+form+the+next+government%2C+said+before+the+vote.+%3C%2Fp%3E+%3Cp%3ESlovenia%2C+the+first+former+communist+country+to+adopt+the+euro%2C+is+struggling+with+the+euro+region%92s+sovereign+debt+crisis%2C+which+erodes+demand+for+its+exports.+It+risks+sliding+back+into+recession%2C+while+public+debt+may+widen+to+more+than+50+percent+next+year.+%3C%2Fp%3E+%3Cp%3EThe+economy+shrank+0.5+percent+in+the+third+quarter+from+a+year+before%2C+following+growth+of+0.8+percent+in+the+previous+three-month+period+and+public+debt+has+more+than+doubled+in+four+years.+%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fwww.bloomberg.com%2Fnews%2F2011-12-22%2Fslovenia-ratings-cut-by-moody-s-on-concern-nation-s-banks-may-need-funding.html%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

December 19, 2011

Juror in Microsoft case at peace with decision

Filed under: Loans, economics — Tags: , , , — Gogo @ 1:32 am

The lone holdout juror who prevented a Utah company from getting as much as $1.2 billion from one-time rival Microsoft Corp. for alleged antitrust violations says he’s at peace with his decision.

Corbyn Alvey, a 21-year-old security guard from Magna, told KSL-TV ( http://bit.ly/ubPwcB) that he didn’t think there was enough evidence presented during the two-month trial in U.S. District Court in Salt Lake City to support the claims of Provo-based Novell Inc.

Novell sued Microsoft in 2004, claiming the software giant duped it into developing the once-popular WordPerfect writing program for Windows 95 only to pull the plug so Microsoft could gain market share with its own product. Novell says it was later forced to sell WordPerfect for a $1.2 billion loss.

“I walk away feeling honestly myself, and I can’t speak for the other jurors, that I made the right decision even if it resulted in a hung jury,” Alvey said Saturday. “There were so many inferences that needed to be drawn that I felt that it was unfair to Microsoft to go out on a limb and say, `yes.’”

Alvey described the three days of jury deliberations as stressful. The 11 other jurors sided with Novell.

“Obviously, I wanted to convince them to agree with me and they wanted to convince me to agree with them,” he told KSL.

Bill Gates testified last month that he had no idea his decision to drop a tool for outside developers would sidetrack Novell payday loan lenders. Gates said he was acting to protect Windows 95 and future versions from crashing.

Novell argued that Gates ordered Microsoft engineers to reject WordPerfect as a Windows 95 word processing application because he feared it was too good.

Alvey said the jury agreed on the technical aspects of the case but disagreed on what Novell could have accomplished “but for” Gates’ decision.

“There was a lot of speculation in this `but for’ world,” he said.

As for Gates’ testimony, Alvey said, “The man was a little sarcastic at times. If anything, it provided a little break from the monotonous questions and answers … I think from his testimony, what I heard, and what I saw in the emails, Bill Gates was a man who took every threat extremely seriously.”

Jury foreman Carl Banks said he tried hard to get a verdict.

“It was a tough case. It was long and it was hard and it was grueling,” he said. “We gave it our best shot.”

Novell attorneys have said they would seek to retry the case with a new jury. Microsoft said it would file a motion asking the judge to dismiss Novell’s complaint for good and avoid a second trial.

Source

December 17, 2011

India holds rates steady on growth concerns

Filed under: Mortgage, management — Tags: , , , — Gogo @ 11:12 am

India’s central bank held key interest rates steady Friday as it struggles to foster growth amid high inflation, disappointing businesses who were looking for more drastic action.

The Reserve Bank of India kept the short-term lending rate, or repo rate, at 8.5 percent and the reverse repo rate _ the rate it pays to banks for deposits, at 7.5 percent. The bank also kept the cash reserve ratio for commercial lenders unchanged.

“Downside risks to growth have clearly increased,” the bank said in a statement. “However, it must be emphasized that inflation risks remain high.”

The bank’s 13 rate hikes since March 2010 are starting to choke growth in Asia’s third largest economy. Growth slipped to a two year low of 6.9 percent in the September quarter and industrial production fell 5.1 percent in October, its first contraction since June 2009. But inflation remains above 9 percent.

“I would like to see RBI do a major rate cut now,” B. Muthuraman, president of the Confederation of Indian Industry and vice chairman of Tata Steel, told CNBC-TV18 before the policy decision.

He said he would have liked the bank to cut rates by half a percentage point and reduce the cash reserve ratio to boost lending. That would help small and medium sized businesses _ which are crucial to jobs and output in India’s manufacturing sector _ get more affordable financing to grow.

“Government inaction is a big cause of concern for industry,” Muthuraman said, citing coal shortages, land acquisition difficulties and slow decision making. “We can have a growth rate in excess of 8 percent, if only we’d had reforms. It’s a very sad story.”

The rupee, which has been trading at record lows, strengthened Friday, after the central bank took to steps to curb speculation.

Source

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