Finance topics

May 18, 2012

Stocks mixed: Asia edges up, Europe sags on Greek worries

Filed under: Finance, technology — Tags: , , , — Gogo @ 8:40 pm

BANGKOK - Asian stocks eked out gains Thursday as traders hunted for bargains after sharp selling in recent days, but markets in Europe fell amid intensifying fears of a messy exit by Greece from the euro common currency.

Greece called a new round of elections for June 17 after coalition talks to form a government fell apart. The president said depositors were pulling hundreds of millions of euros out of banks, weakening the country’s strained financial system.

The developments fueled fears that Greece would exit the euro currency and shake global markets. In elections earlier this month, Greek voters punished parties that supported tough austerity measures needed to secure international bailout money.

But analysts at Credit Agricole CIB in Hong Kong said the scheduling of new Greek elections suggested “a reduction in near-term uncertainties” that could lead to some relief for volatile markets.

Britain’s FTSE 100 fell 0.4 per cent to 5,380.72 in early trading. Germany’s DAX fell 0.2 per cent to 6,373.01 and France’s CAC-40 lost 0.2 per cent to 3,042.45.

U.S. stocks were set for a moderately higher opening, with Dow Jones industrial futures up 0.3 per cent at 12,610. S&P 500 futures rose 0.4 per cent to 1,327.

In Asia, stock markets enjoyed a slight rebound as investors went bargain-hunting, analysts said.

Japan’s Nikkei 225 climbed 0.9 per cent to close at 8,876.59 after the country posted better-than-expected growth figures for the first quarter. South Korea’s Kospi added 0.3 per cent to 1,845.24. Benchmarks in Taiwan, New Zealand and the Philippines also rose business cards.

Australia’s S&P/ASX 200 slipped 0.2 per cent to 4,157.40, dragged down by financial stocks. Hong Kong’s Hang Seng closed 0.3 per cent down at 19,200.93.

Mainland Chinese shares bounced back from early losses, buoyed by calls from the country’s central bank governor, Zhou Xiaochuan, for market reforms.

The benchmark Shanghai Composite Index rose 1.4 per cent to 2,378.89. The Shenzhen Composite Index also gained 1.4 per cent to 954.95. Shares in brokerages, financial and trading-related companies led the gains.

Positive news on the U.S. economy on Wednesday underpinned sentiment in Asia. Construction of homes in April rose 2.6 per cent from March, and U.S. factory production increased 0.6 per cent in April, helped by a gain in auto production.

Some Japanese stocks saw big gains amid news that the country’s economy grew at an annualized 4.1 per cent for the January-March quarter thanks to a rebound in consumer spending.

Sharp Corp. jumped 5.7 per cent and Mazda Motor Corp. added 3.8 per cent. Steel company JFE Holdings shot up 5.5 per cent.

Benchmark oil for June delivery was up 52 cents to $93.33 per barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract fell by $1.17 to finish at a seven-month low of $92.81 per barrel in New York.

In currencies, the euro fell to $1.2715 from $1.2725 late Wednesday in New York. The dollar rose to 80.35 yen from 80.29 yen.

___

AP researcher Fu Ting contributed from Shanghai.

Source

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May 14, 2012

Nordic Cost Cuts Create Baltic Jobs, Latvia Lures Samsung - Bloomberg

Filed under: Mortgage, marketing — Tags: , , , — Gogo @ 2:16 am

Mattias Loov sought to cut costs for his clients at Stockholm-based H1 Communication AB after the global economic crisis hit the Nordic region. He found a solution 760 kilometers (475 miles) across the Baltic Sea.

H1 now has about 10 percent of its staff in Estonia, where the hourly labor cost is a fifth of Sweden

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May 12, 2012

EverBank debuts Brentwood-based wealth management company

Filed under: Finance, legal — Tags: , , , — Gogo @ 1:44 pm

EverBank is branching out with a new wealth management company based in Brentwood that is targeting affluent customers.

EverBank Financial Corp., a Jacksonville, Fla.-based financial services firm, formed the wealth management subsidiary to provide wealthy customers looking for institutional-caliber investment advice.

“We see that as lacking in the market,” EverBank Wealth Management’s CEO Frank Trotter said in an interview.

Launched Monday, EverBank Wealth Management Inc. joins many other financial institutions that are seeking to grow revenue by broadening investment services for the wealthy.

EverBank’s wealth management subsidiary is based at 8300 Eager Road, where the bank’s World Markets division and some other bank operations are based. Some wealth management executives are based here, including Trotter, and some are based in Jacksonville.

Locally, EverBank employs about 150 people in Brentwood, which will grow as the wealth management business expands, Trotter said.

Companywide, EverBank has 575,000 customers nationwide and $10.3 billion in assets as of the end of 2011. The wealth management company formation came the same week EverBank launched an initial public offering of its stock.

Trotter, a longtime St. Louis banker, formed EverBank as an Internet-based bank in 1999. In 2002, EverBank was acquired by Alliance Capital Partners, a holding company based in Jacksonville, which later changed its name to EverBank Financial.

Through its World Markets division in Brentwood, EverBank offers investments in foreign currencies and in precious metals.

EverBank already works with more than 200 broker-dealer and investment advisory firms nationwide, matching customers with advisors through its Advisor Services unit, which is also based in Brentwood.

But the bank lacked its own in-house advisory services after EverBank sold in 2002 its investment advisory business, Acropolis Investment Management, which is based locally.

“People have always asked: can’t you just manage my money for me,” Trotter said.

“We wanted to get back into it,”he said of EverBanks’ return to offering investment advice.

David Conover, EverBank Wealth Management’s president and chief operating officer, said the concentration of investment advisors in the St. Louis area — which is home to a mass of financial services firms including Wells Fargo Advisors and Edward Jones — will help in recruitment efforts for the subsidiary.

“There’s a concentration of talent in St. Louis and economies of scale” with EverBank’s existing operations, Conover said.

EverBank’s push into wealth management comes as other banks, including U.S. Bank, Commerce Bank, and Enterprise Bank & Trust, have added new services or added staff to increase their wealth management offerings as the population of high net worth individuals, or those with at least $1 million in invest-able assets, continues to grow.

Trotter said EverBank Wealth Management’s strategy is to offer a simple fee structure based on a customers’ assets and to put an emphasis on listening to customers.

“We’ve observed over the years that some brokers say ‘this is the way I do it,’” Trotter said. “We want to listen to the client and hear the way they approach investing and how they feel about the economic situation – we want to have a conversation with them and I feel that’s radically different than what’s available.”

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May 9, 2012

Stocks tumble on Greece uncertainty

Filed under: technology, term — Tags: , , , — Gogo @ 7:48 am

U.S. stocks sank Tuesday, although the major indexes closed off session lows, as Greece’s uncertain political situation keeps investors on edge.

The Dow Jones industrial average () fell 76 points, or 0.6%, to 12,932. The S&P 500 () tumbled 6 points, or 0.4%, to 1,364. The Nasdaq () declined 11 points, or 0.4%, to 2,946.

The selling picked up steam during the morning, with the S&P 500 touching a 2-month low, as stocks in Europe fell sharply. But major indexes in the United Sates pared losses in the last hour of trading.

All eyes continue to be on Europe, after Greece’s main center-right party failed to form a coalition government. Now, the left-wing coalition, which is opposed to austerity as the way to close Greece’s debt gap, will have three days to form a government.

The latest development is feeding investors’ fears that Greece might have to drop out of the eurozone.

"The political stalemate in Greece is casting a shadow over risk markets in general and equities in particular," said Nick Stamenkovic, investment strategist at RIA Capital Markets in Edinburgh. "Investors are questioning whether Greece will be a part of the single currency at the end of this year."

The Greek stock market fell 3.6%, adding to sharp losses in the previous session.

Greece could drop euro but tragedy won’t follow

As various parties grapple with forming a coalition government in Greece, it’s looking increasingly likely that new elections will need to be held, most likely in mid-June. That throws into question whether Greece will be forced to renegotiate its bailout funding.

Greek leftist leader Alexis Tsipras on Tuesday laid out the radical agenda he hopes to pursue if he becomes prime minister, including the cancellation of international loan agreements to Greece that forced the country into sharp budget cuts.

Meanwhile, European Union leaders are grappling with the need to boost economic growth during a time of austerity. Early Tuesday, European Council president Herman Van Rompuy set May 23 as the date for an unscheduled EU summit, announcing on his Twitter feed that it would be an "informal dinner."

In addition to the "re-circulating woes in Europe," investors were also rattled by weak sales numbers from McDonalds, said Peter Tuz, portfolio manager at Chase Investment Counsel in Charlottesville, Va.

"More uncertainty in Europe is not good for U.S. markets, nor is the weakness in consumer-oriented stocks," said Tuz.

U.S. stocks recovered from a shaky start Monday, following elections in France and Greece over the weekend payday loan.

World markets: European stocks fell sharply late in the day to end lower. Britain’s FTSE 100 () was down 1.7%. The DAX () in Germany shed 1.9%. In France, the benchmark CAC 40 () fell 3% one day after Socialist party leader Francois Hollande won the nation’s presidential election.

In the bond market, investors bought €1.3 billion worth of short-term Greek government bills out of €2.6 billion offered. The yield was 4.69%, up from 4.55% at the last auction in April.

Asian markets ended mixed. The Shanghai Composite () slid 0.1% and the Hang Seng () in Hong Kong lost 0.2%, while Japan’s Nikkei () rose 0.7%.

Companies: Shares of fashion accessories maker Fossil () plunged after it reported first-quarter revenue that fell short of even the lowest forecasts.

Fast-food chain Wendy’s () reported operating income of 1 cent a share, falling short of analysts’ forecasts for a profit of 3 cents a share.

Shares for Electronic Arts () slipped after the video-game maker cut its first-quarter outlook for the period ending in June.

The Government Accountability Office issued a report Tuesday that the U.S. Treasury may eventually turn a $15.1 billion profit on its bailout of insurer AIG (, Fortune 500) when all final payments and asset sales are complete.

McDonald’s Corp.’s (, Fortune 500) same-store sales increased 3.3%, both globally and in the U.S. market. Analysts were expecting sales to grow 5%, according to Reuters. Sales rose 3.5% in Europe, but only 1.1% in the unit that includes Asia-Pacific, Middle East and Africa.

In other corporate news, shares of DirecTV (, Fortune 500) slipped even as the broadcast satellite provider reported slightly better earnings and sales in line with forecasts.

Entertainment conglomerate and Dow component Walt Disney (, Fortune 500) will report earnings after the close. The studio had a blockbuster weekend with "The Avengers," which broke records with box office sales of $200.3 million during opening weekend. Those sales will not be included in this report, while an estimated $200 million in losses on epic bomb "John Carter" will.

Currencies and commodities: The dollar gained strength against the euro and British pound, but fell versus the Japanese yen.

Oil for June delivery fell 93 cents to end at $97.01 a barrel.

Gold futures for June delivery dropped $34.60 to settle at $1,604.50 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell Tuesday, leaving the yield at 1.84%. 

Source

May 5, 2012

Buffett says his successor will run Berkshire well

Filed under: Homes, Loans — Tags: , , , — Gogo @ 9:12 pm

Warren Buffett says his eventual successor as CEO of Berkshire Hathaway will maintain the company’s culture and keep key managers of its subsidiaries happy.

Buffett says the successor Berkshire’s board has in mind won’t do anything to turn off the managers of the 80-odd companies Berkshire owns.

Many of the managers of Berkshire companies are independently wealthy themselves. They work only because they enjoy it, and Buffett largely lets them operate their companies independently instant credit report.

Buffett says that his successor will be better than he is in many ways.

Berkshire Vice Chairman Charlie Munger says that there is so much momentum within the company that it would be hard for Buffett’s successor to change the company.

Source

April 30, 2012

Moderate Islamist gains in presidential race

Filed under: Loans, news — Tags: , , , — Gogo @ 6:52 pm

A moderate Islamist campaigning to be Egypt’s next president has won the support of some unlikely allies _ the country’s most conservative religious groups, including former militant jihadists.

Their backing reflects the growing mistrust by many Islamists of the powerful Muslim Brotherhood, the would-be flagbearer for the religious vote. And it has made Abdel-Moneim Abolfotoh a front-runner with an unusual coalition that includes secular liberals and even some Christians along with hard-line Islamists.

“He (Abolfotoh) will be a president for all Egyptians,” Wael Ghonim, an icon of the youthful revolutionaries behind the uprising that toppled Hosni Mubarak last year, wrote on his Twitter account Monday.

“He will bring us together, not divide us.”

Before he was thrown out last year, Abolfotoh was a senior leader of the Muslim Brotherhood _ now Egypt’s most powerful political force. He earned the reputation as a moderate reformer within the Islamic fundamentalist group.

But the bearded, 60-year-old former dissident eventually fell out with the group after publicly slamming it for not being transparent about its financing and irking his fellow Brothers by saying he would rather have a good Christian than a bad Muslim as president _ contradicting the movement’s line that majority Muslim Egypt should not be ruled by a Christian.

Now he is one of the few candidates with crossover appeal for both religious conservatives and liberals.

The endorsements and other key developments over recent days dramatically shifted the fortunes of Abolfotoh from a promising underdog to a real contender. The biggest change came when the election commission disqualified three strong candidates _ Hosni Mubarak’s former spy chief and vice president, Omar Suleiman, the Brotherhood’s first choice candidate Khairat el-Shater and ultraconservative lawyer-turned-preacher Hazem Salah Abu Ismail.

Abolfotoh’s newfound support comes from the ultraconservative Islamists known as Salafis. They adhere to an interpretation of Islam partly inspired by Saudi Arabia’s puritanical Wahhabi doctrine and want to see Islamic law strictly applied in Egypt.

Their backing eats into the chances of Mohammed Morsi, the second choice candidate of the Muslim Brotherhood, which won just under half of all seats in parliamentary elections around the start of this year. Abolfotoh’s growing strength also provides Amr Moussa, Mubarak’s longtime foreign minister and a front-runner himself, with a formidable competitor for the land’s highest office.

“Our top priority was: Who has the biggest chance to win? And we found that Abolfotoh has that chance,” said Sheik Abdel-Akhar Hamad, a top leader of the Gamaa Islamiya, the jihadist group that endorsed Abolfotoh on Monday.

The group was partially motivated by its fear of the Brotherhood’s “desire to monopolize power,” Hamad said.

In many ways, the May 23-24 presidential election will answer the persistent question of whether the popular uprising that toppled Mubarak has actually transformed Egypt from autocratic rule to a functioning democracy or whether it just removed the head, Mubarak, but left the regime intact, as many of the liberal youth groups claim.

That someone like Abolfotoh has a realistic shot at being president also speaks to the stunningly swift empowerment of Islamists in post-Mubarak Egypt and their emergence as a the nation’s most powerful group after years of persecution. The candidate was imprisoned multiple times under the Mubarak regime, once for five years Payday Loan for Bad Credit.

Abolfotoh, according to an opinion poll conducted by the state-funded Al-Ahram Center for Political and Strategic Studies, has the support of 27 percent of voters, well behind Moussa who has 41 percent. The poll surveyed 1,200 participants in most of Egypt’s 28 provinces and has a 3 percent margin of error. It was conducted in mid-April.

The poll indicates Abolfotoh is likely to face Moussa in a June 16-17 runoff. The winner will be announced June 21, the last stop in a bumpy transitional process led by the generals who took over from Mubarak last year and promised to step down by July 1.

Official campaigning kicked off Monday.

Abolfotoh has been cagey about the state of his relations with the Brotherhood, leaving the exact nature of current ties to the group ambiguous.

That may be motivated in part by his hopes of wooing the votes of young Brotherhood members who are at odds with the group’s leaders over policy, particularly the reversal of initial insistence that they would not field a presidential candidate.

However, his views on core Islamic issues set him apart from the fundamentalist Brotherhood on questions such as the role of women and Christians in mainly Muslim Egypt and whether there is a need to implement Islamic Shariah laws, such as forcing women to respect a strict Islamic dress code in public.

“The greatest thing in Shariah is freedom and justice,” Abolfotoh told a television interviewer recently. “Some people think that you can force people to pray or punish them for not praying. Forcing people against their individual rights create a hypocrite person. When women wear hijab (Islamic headscarf) because they fear punishment, this is religious hypocrisy.”

Such moderate views raise the question of what Abolfotoh offered in return for the endorsements he received.

For example, the Gamaa Islamiya took part in the planning and execution of President Anwar Sadat’s 1981 assassination and fought a low intensity insurgency against Mubarak’s regime for the rest of the 1980s and most of the 1990s to create a purist Islamic state.

The Gamaa’s nod to Abolfotoh followed a more important endorsement over the weekend from a group that is just as radical _ the ultraconservative Dawa Salafiya and its political arm Al-Nour party, which leads a bloc that controls nearly 20 percent of parliament’s seats. Al-Nour, like the Gamaa, advocates the implementation of a strict interpretation of Shariah laws that many view as unfair to women, minority Christians and secularists.

“We felt that it is too much for the Muslim Brotherhood to have it all: parliament with its two chambers, the presidency and the Cabinet,” senior Gamaa official Assem Abdel-Maged said. “This is harmful to the whole Islamist movement.”

Yasser Bourhami, an influential ultraconservative cleric from the Dawa Salafia, said Abolfotoh pledged to the group that, if elected, he would allow the Islamist bloc in parliament, the chamber’s largest, form the government and allow the Salafis a free rein to preach in mosques and religious schools.

“He (Abolfotoh) is the most accepted by the people. He is the most balanced,” he said in videotaped comments posted on social networks. “This is what we think is the best for this phase.”

Source

April 27, 2012

Spain crisis deepens with jobless rise, downgrade

Filed under: news, online — Tags: , , , — Gogo @ 12:52 pm

The hole in Spain’s economy is getting deeper.

The government reported Friday that unemployment rose to 24.4 percent in the first quarter _ compared with 22.9 percent in the fourth quarter _ and that more than half of Spaniards under 25 are now without jobs. The bleak employment report came one day after ratings agency Standard & Poor’s downgraded the country’s debt.

The Spanish economy is in recession for the second time in three years as the damage from a housing bust persists. Foreclosures are rising, Spain’s banks are in worse financial shape and the government’s deficit is hitting worrisome levels.

The first-quarter employment data showed that 365,900 people lost their jobs, bringing the number of unemployed Spaniards to 5.6 million. The unemployment rate for people under 25 climbed to 52 percent, up from 48.5 percent in the previous quarter.

“The figures are terrible for everyone and terrible for the government,” Foreign Minister Jose Manuel Garcia-Margallo told Spanish National Radio. “Spain is in a crisis of enormous magnitude.”

The total number of unemployed increased by 729,400 compared with the first quarter of 2011. The National Statistics Institute said Friday that Spain now has 1.7 million households in which no one has work.

The figures were another blow to the conservative government of Mariano Rajoy after Standard & Poor’s late Thursday became the first of the three leading credit rating agencies to strip Spain of an A rating. It cited a worsening budget deficit, worries over the banking system and poor economic prospects for its decision to reduce the rating by two notches from A to BBB+.

S&P even warned that a further downgrade is possible as it left its outlook assessment on Spain at “negative.”

Spain, the eurozone’s fourth-largest economy, is just now just three notches above so-called junk status. Earlier this week, the Bank of Spain confirmed that the country had entered a technical recession _ two consecutive quarters of negative growth.

The country’s economic problems have become the epicenter Europe’s debt crisis in recent weeks as investors worry over Spain’s ability to push through austerity measures and reforms at a time of recession and mass unemployment.

The cuts are aimed principally at slashing the government’s deficit from 8.5 percent of economic output to the maximum level set by the European Union of 3 percent by 2013. For this year the goal is 5.3 percent.

With the economy shrinking and the population restless, there are concerns that the government will not meet its targets and will be forced into seeking a financial rescue as Greece, Ireland and Portugal have done before.

The difference is that Spain’s economy is double the size of the combined economies of the three countries that have already been bailed out. The other eurozone countries would struggle to muster enough money to rescue it.

The government later Friday released a flurry of upbeat data on how it plans to turn the economy round between 2012-2015. Despite the dismal job numbers, it predicted a roughly balanced budget in 2016.

But there was more pain, too. Economy Minister Luis de Guindos announced an increase next year in indirect taxes. He said this measure will raise (EURO)8 billion ($11 billion) in new revenue to help chip away at a bloated deficit.

The conservative government has already raised income and property taxes, and announced cuts in spending on health care and education. The forecast is for the economy to shrink 1.7 percent this year.

Foreseeing the economic downturn, businesses have been laying people off at a faster rate than expected, said IESE Business School economics professor Antonio Argandona. New laws also make it easier for companies to shed workers at low cost.

Argandona said Spain is not now at risk of needing a bailout because its government is still solvent. But even if the economy returns to growth next year as forecast, the jobless rate will lag behind and unemployment could hit 26 percent, he added.

The mood among Spanish people out on the streets Friday was downcast.

“The situation is very bad. There’s no work,” said Enrique Sebastian,a 48-year-old unemployed surgery room assistant as he left one of Madrid’s unemployment offices.

“The only future I see is one with wages of (EURO)400 ($530) a month for eight-hour days. And that’s if you can find it,” said Sebastian.

Markets in Spain initially reacted negatively to the twin news but soon recovered their poise alongside the rest of Europe as the downgrade was largely viewed as a belated acknowledgment of the market realities.

The main IBEX index, having fallen more than 1 percent earlier, recovered and was up 1.2 percent in early afternoon trading. Meanwhile investors sold off Spanish bonds in a show of jitters. The interest rate, or yield, on the country’s ten-year bond was up 0.07 of a percentage point to 5.87 percent, having touched 6 percent earlier.

Though the yield is below the 7 percent rate widely considered unsustainable in the long-run, it has edged up over the past month from below 5 percent in a clear sign investors are fidgety over its economic prospects.

Gayle Allard, a labor market expert at IE Business School, said that while a jobless rate of 24.4 percent is terrible, Spain is traditionally a high unemployment country. Three times in the past 30 years it has exceeded 20 percent, Allard said.

“It is something that, somehow, they live with. Things go underground. I don’t know what they do. They hide money in good years and they pull it out in bad years,” Allard said.

____

Pylas contributed from London. Ciaran Giles and Jorge Sainz contributed from Madrid.

Source

April 24, 2012

French Bond Yields Test Hollande

Filed under: management, news — Tags: , , , — Gogo @ 4:40 am

Investors are steering away from French bonds as they cast a wary eye on election frontrunner Francois Hollande

April 20, 2012

Housing recovery still sputters

Filed under: Loans, legal — Tags: , , , — Gogo @ 9:31 pm

The housing market continued to struggle in March, despite low home prices and record low interest rates, an industry report revealed Thursday.

Sales of existing homes fell 2.6% compared with a month earlier, to an annualized rate of 4.48 million homes, the National Association of Realtors said.

Gus Faucher, a senior economist at PNC Financial, called the report disappointing.

"We were expecting an increase," he said. "We need a turnaround to help the economy recover."

The Realtors’ group’s chief economist, Lawrence Yun, opted to look on the bright side of the report — sales were up 5.2% year-over-year.

It’s safe to sell your home again

"We have seen nine consecutive months of year-over-year sales increases," he said. "Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year."

The choppy market stands in contrast to the continuing gains made in affordability.

Factoring in price declines that have averaged about 34% nationally, according to the S&P/Case-Shiller home price index, and record low mortgage rates, homebuying is more affordable than ever.

"For buyers who can qualify for a mortgage, now is a very good time to become a homeowner," said Realtors’ president Moe Veissi.

According to Yun, better economic conditions will push sales higher as the year goes on.

"With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year," he said.

As the year goes on, buyers may find fewer properties to choose from.

The number of homes for sale dropped 1.3% in March to 2.37 million existing homes. That’s a 6.3-month supply at the current sales pace. Inventory declined 21.8% compared with March 2011 and is well below the record of 4.04 million in July 2007.

Ironically, the tighter supply may have cut into sales, with house hunters in some areas of the nation having trouble finding homes to suit their needs or tastes.

"We’re already seeing this in the Western states and in South Florida," said Yun.

If the tightness in inventory spreads, it could signal a rebirth for home builders, who would have to step up development to fill the gap. And putting construction workers back on the job would be a shot in the arm for the overall economy as well as the housing market.

"Conditions are in place for a turnaround," said Faucher. "We’re just waiting for more confidence among buyers. We expect that to happen over the next few months." 

Source

April 17, 2012

Watch out! Higher interest rate and borrowing costs coming (just not yet)

Filed under: management, technology — Tags: , , , — Gogo @ 6:08 pm

OTTAWA

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