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May 20, 2012

Manufacturing, Housing Probably Improved: U.S. Economy Preview - Bloomberg

Filed under: Uncategorized, economics — Tags: , , , — Gogo @ 6:28 pm

Manufacturers probably received more orders in April and home sales rose, a sign the U.S. expansion is still on track, economists said before reports this week.

Factory bookings for long-lasting goods rose 0.3 percent last month after falling 3.9 percent in March, according to the median forecasts of 61 economists surveyed by Bloomberg News before a May 24 Commerce Department report. Other figures may show purchases of existing and new houses also climbed.

Manufacturers may keep forging ahead as automakers crank out more cars and trucks, while housing will probably benefit from record-low mortgage rates that are making properties more affordable. Nonetheless, those industries alone will fail to spur a pickup in growth without bigger increases in employment throughout the economy that will propel consumer spending.

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May 17, 2012

Wal-Mart’s first-quarter profit up 10 percent

Filed under: marketing, technology — Tags: , , , — Gogo @ 8:12 am

Wal-Mart Stores Inc. is reporting a 10.1 percent increase in first-quarter profit as the world’s largest retailer’s re-emphasis on low prices continues to woo back bargain-hungry shoppers in an uncertain economy.

Wal-Mart says that it earned $3.74 billion, or $1.09 per share, in the quarter ended April 30. That compares with $3.39 billion, or 97 cents per share, in the year-ago period.

Net sales excluding membership fees from Sam’s Club rose 8.6 percent to $112.2 billion.

Analysts had expected $1 guaranteed online personal loans.04 per share on net sales of $110.5 billion.

Revenue at stores opened at least a year rose 2.6 percent at its Wal-Mart’s namesake U.S. division. That’s above the 1.4 percent estimate from Wall Street.

The company is offering an upbeat profit outlook for the current quarter.

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May 4, 2012

Bombings reported on South Sudan-Sudan border

Filed under: economics, management — Tags: , , , — Gogo @ 8:40 am

South Sudan’s military spokesman says Sudanese aircraft dropped 10 bombs in an oil-rich region near a military base south of the shared border.

Col. Philip Aguer said Friday that the bombs were dropped late Thursday afternoon. He said two civilians were wounded in the bombings, which took place on the town of Laloba, about 50 kilometers (30 miles) north of the Unity State capital of Bentiu in South Sudan.

The attacks came one day after Sudan announced it had accepted an agreement put forward by the African Union to return to talks with South Sudan Same day payday loans. The agreement demands both sides adhere to a cease-fire.

Major violence between the two sides has flared in recent weeks, pushing the region to the edge of all-out war.

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April 29, 2012

Dubai spends $250M to get full control of Atlantis

Filed under: Finance, money — Tags: , , , — Gogo @ 11:04 am

Dubai says it now has full control of the Atlantis resort hotel perched atop its palm-shaped island.

State-run investment firm Istithmar World said late Friday it paid $250 million to buy out financially troubled business partner Kerzner International Holdings Ltd., which had held a 50 percent stake in the coral-colored hotel. Istithmar already owned half of the property.

Kerzner will continue to operate the resort, which includes a waterpark and 18 restaurants, Istithmar said.

It agreed to give up its stake in the Dubai property and a similar resort in the Bahamas after struggling to restructure $2.6 billion in debt. Canada’s Brookfield Asset Management acquired the Bahamas property in a previously announced deal by agreeing to waive $175 million in debt owed by Kerzner.

Kerzner said it plans to use proceeds from the Dubai sale to reduce its debt load.

Istithmar is part of Dubai state conglomerate Dubai World, which has struggled with high-profile debt troubles of its own. It owns upscale retailer Barneys New York and has a stake in performance company Cirque du Soleil.

“This acquisition is in line with our strategy of managing our assets for value and investing selectively where growth opportunities exist,” Dubai World’s chairman, Sheik Ahmed bin Saeed Al Maktoum, said in a statement cheapest personal loan rates.

Istithmar’s parent Dubai World was at the heart of Dubai’s financial meltdown in 2009. It signed an agreement to restructure some $25 billion in debt last March.

The Atlantis is one of Dubai’s better-known tourist destinations. It is a mainstay of city tours, vying for attention with the world’s tallest tower, Burj Khalifa, and more traditional offerings such as the old gold and spice markets. Ads for the hotel greet Dubai airport passengers on arrival.

Atlantis opened for business in September 2008, shortly after a construction fire damaged part of the brightly painted lobby.

A lavish coming-out party for the resort two months later cost $20 million and featured a celebrity guest list that included Robert DeNiro and Lindsay Lohan. Australian pop star Kylie Minogue provided the entertainment.

The 1,537-room hotel is at the top of the Palm Jumeirah, the first of Dubai’s palm-shaped manmade islands and the only one that is developed. Visitors arrive by monorail or by traveling through an underwater tunnel.

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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 22, 2012

Asian stocks fall as European problems simmer

Filed under: legal, term — Tags: , , , — Gogo @ 11:20 pm

Asian stocks fell Monday after budget talks in the Netherlands collapsed over the weekend and a Socialist who wants to put France’s austerity plans in reverse won the first round of the country’s presidential election.

Japan’s Nikkei 225 index fell 0.3 percent to 9,533.48, as a strengthening yen hurt high-tech exporters. Hong Kong’s Hang Seng lost 0.7 percent to 20,871.23 and South Korea’s Kospi fell 0.3 percent to 1,969.69. Australia’s S&P/ASX 200 dropped 0.2 percent to 4,357.70.

Over the weekend, Dutch lawmakers failed to resolve differences over budget cuts needed to bring the Dutch deficit back within the European Union limit of 3 percent of gross domestic product.

The government is expected to resign within the coming days and call elections later this year, making it the latest European government forced out of office by the continent’s financial crisis.

Markets were also rattled by first-round results in France’s presidential election. Socialist candidate Francois Hollande garnered more votes than incumbent conservative President Nicolas Sarkozy.

Hollande wants to renegotiate a European treaty intended to limit excessive government spending in order to emphasize growth over austerity low interest personal loan.

If Hollande wins a second-round election May 6, economists fear those steps would upset France’s delicate cooperation with Germany that has been key to Europe’s efforts to resolve its financial crisis.

U.S. stocks rose Friday on the back of stronger profits from Microsoft, McDonald’s and other major U.S. corporations.

The Dow Jones industrial average rose 0.5 percent to close at 13,029.26. The Standard & Poor’s 500 index rose 0.1 percent to 1,378.53. The Nasdaq composite index fell 0.2 percent to 3,000.45.

In energy trading, benchmark oil for June delivery was down 13 cents to $103.75 a barrel Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.16 to settle at $103.88 in New York on Friday.

The euro fell to $1.3187 from $1.3215 late Friday in New York. The dollar fell to 81.27 yen from 81.58 yen.

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April 16, 2012

US homebuilder outlook dips below 4-year high

Filed under: Loans, news — Tags: , , , — Gogo @ 10:24 am

The outlook among U.S. homebuilders dimmed in April after six months of rising or steady confidence. The decline suggests the housing market remains weak despite modest gains.

The National Association of Home Builders/Wells Fargo said Monday that its builder sentiment index fell this month to 25 from 28. Last month’s reading was the highest since June 2007. The index rose for five straight months between September and February.

Builders expressed weaker confidence in sales over the next six months. A separate gauge measuring that outlook rose for six straight months before falling this month, from 35 to 32.

The housing industry has a long way to go in its slow recovery. Any reading below 50 indicates negative sentiment about the housing market. The index hasn’t reached hit that level since April 2006, the peak of the housing boom.

“What we’re seeing is essentially a pause in what had been a fairly rapid build-up in builder confidence that started last September,” said David Crowe, chief economist with the homebuilders’ group. “This is partly because interest expressed by buyers in the past few months has yet to translate into expected sales activity.”

The spring buying season got an early start thanks to a mild January and February, which made up the best winter for sales of previously occupied homes in five years. Permits to build houses and apartments rose in February to their highest level since 2008.

Yet home prices continued to fall this winter. Builders keep slashing their prices to stay competitive. Last year was the worst for new-home sales on records dating back to 1963.

Builders are struggling to compete with foreclosures, which have forced down prices of previously occupied homes. And many people are finding it hard to qualify for loans or meet higher required down payments.

Low appraisals are scuttling some deals after contracts have been signed. As a result, some people who want to buy a new house are holding off because they can’t sell their home.

Those in a position to buy are benefiting from lower prices and the cheapest mortgage rates on record. The average rate on the 30-year fixed mortgage is hovering near record lows below 4 percent.

Builders have pointed to some regional pockets of strength. New Orleans, Pittsburgh and other smaller areas of Texas, in particular, have reported increased buying.

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April 13, 2012

Bank Overhaul Mess Is Noose Around EU

Filed under: Homes, legal — Tags: , , , — Gogo @ 12:24 am

Global financial regulators have failed to create clear standards for banks, meaning lenders are hoarding cash instead of providing loans needed to drive growth, European Banking Federation President Christian Clausen said.

April 11, 2012

Obama makes case for Buffett Rule

Filed under: Finance, legal — Tags: , , , — Gogo @ 10:24 am

President Obama made a broad push Tuesday for increasing taxes on the wealthy and in particular proposed Buffett Rule.

His address to college students in Florida came on the heels of a White House report that laid out its case, arguing that the Buffett Rule would make the tax code fairer and make it harder for the very rich to lower their tax bills.

Quiz: What the rich really pay in taxes

"What drags our entire economy down is when the benefits of economic growth and productivity go only to the few … and the gap between those at the very, very top and everybody else keeps growing wider and wider," Obama said.

The Buffett Rule is a key talking point in Obama’s re-election bid. The general principle behind it is that millionaires and billionaires like investor Warren Buffett shouldn’t pay a lower percentage of their income in federal taxes than middle-class households.

Obama has even set a threshold for how much they should pay: At least 30% of their income.

Obama’s Buffett Rule: FAQ

Most millionaires today already pay a higher percentage of their income in federal taxes than the vast majority of all Americans. But roughly 25% of them end up with a lower effective tax rate than 10% of middle-income households, according to the Congressional Research Service.

And a very small number — fewer than 1,500 households in 2009, according to the IRS — end up owing no federal income tax at all.

Obama’s Buffett Rule is targeted specifically at those high-income households that are in a position to structure their income and engage in legal tax strategies to minimize their tax bite.

Millionaires who owe no federal income tax

"The idea behind the Buffett Rule is to have a tax on high-income earners who manage to avoid paying a large share of their income in taxes," Alan Krueger, director of the president’s Council of Economic Advisers, said in a call with reporters.

They can do so if much of their income comes from capital gains and dividends — which are taxed at a lower rate than ordinary paychecks. The same is true if they have made tax-free or tax-sheltered investments.

And a number of other tax breaks on the books end up disproportionately benefiting high-income households.

Krueger asserted that the Buffett Rule would also make for good tax policy by making the tax code more efficient. That is, there would be less incentive for the wealthy to choose one investment or financial activity over another or to recharacterize their income simply to reduce their tax bills.

Tax experts, however, say the goals of the Buffett Rule could be accomplished more simply through a complete overhaul of the tax code.

Indeed, Obama initially proposed the Buffett Rule as a guiding principle for reform. But Senate Democrats are now pushing a bill to implement a version of the rule in today’s tax code. And the White House is now endorsing that push.

Tax reform is likely to be a long slog, and implementing a Buffett Rule now would be a "simple and common sense" step toward reform, said Jason Furman, the principal deputy director of the National Economic Council. 

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April 8, 2012

Hollande rides zeitgeist as France embraces left

Filed under: economics, money — Tags: , , , — Gogo @ 7:40 am

The man polls say has the best shot at becoming France’s next president wants to hire thousands more teachers, renegotiate Europe’s expensive, hard-won bailout package, and re-assess his country’s role in both Afghanistan and NATO.

But Socialist Francois Hollande appeals less for his platform than for his persona: the innocuous, intellectual everyman is many things that conservative President Nicolas Sarkozy is not.

Hollande, 57, is tapping into a French zeitgeist wary of international finance, weary of Sarkozy’s “bling-bling” personality and eager for change. While countries in struggling Europe shift to the right, France may hand the presidency to the left for the first time in a generation, with repercussions for the continent’s direction and France’s future.

Part of Hollande’s appeal is his Mr. Nice Guy image, but he still must convince voters that he’s got what it takes to run a complex, nuclear-armed nation and one of the world’s biggest economies.

Hollande isn’t the only leftist making headlines in this campaign: Firebrand far-left candidate Jean-Luc Melenchon has amassed some of the biggest crowds so far at rallies blanketed in red communist flags. Melenchon, with the charisma that the mainstream Hollande lacks, is complicating the political calculus.

French voters kick off the balloting in two weeks, with 10 candidates from across the political spectrum facing off in a first-round vote on April 22 that will winnow the race down to two.

While Hollande has slipped a little in recent weeks, polls have suggested for months that he would win the expected two-man finale against Sarkozy on May 6 by a broad margin.

The economic crisis in Europe has felled many governments in recent years. A Hollande victory could break from a recent rightward trend in the continent, and put France out of step with other big European countries like Germany, Spain, Britain and Poland _ all run by center-right or conservative leaders. Italy, hobbled by a debt crisis, is led by technocrat Mario Monti.

Some of Hollande’s major proposals could raise eyebrows abroad: As governments enact austerity measures elsewhere in Europe, he wants to hire thousands more teachers. He wants to scrap a European bailout package led by Sarkozy and German Chancellor Angela Merkel. He has pledged to pull all French combat troops out of Afghanistan by year-end, and says that pledge would be the first thing he tells allies at a NATO summit in Chicago in May.

For many in France, the time seems ripe for a return to a Socialist president: the only one in postwar France was Francois Mitterrand, from 1981 to 1995; throw-the-bums-out has been an election theme in Europe; Sarkozy, in part for reasons of personal style, has been unpopular for years; and the financial crisis and debt crises in Europe have emboldened the left.

Hollande is seen as more of a consensus manager and a listener than visionary. For much of his tenure as party first secretary from 1997 to 2008, he served mostly as a water carrier for party elders _ and only now is coming into his own.

His advisers insist to a foreign reporter that Hollande is no old-school Socialist, but a social democrat wary of the economic challenges coming from 21st-century powers like China and India.

Yet while major parties of the left in Europe reformed and tacked toward the political center in recent years _ like Gerhard Schroeder’s Socialists in Germany, or Britain’s Labour party under Tony Blair, the Socialists in France eschewed such a move.

And when he speaks to the French faithful, Hollande’s class-warfare style rhetoric _ inveighing against the financial world that he calls his “adversary”, and demanding justice for the underclass _ often draws cheers.

Hollande, who once quipped “I don’t like the rich” on TV, got a recent boost in the polls after he announced a proposal to slap a 75-percent tax on income beyond the first (EURO)1 million ($1.3 million) earned each year.

Hollande on Wednesday drew thousands who spilled out of two warehouses at a convention center near the city of Rennes, in the heart of the left-leaning region of Brittany.

The highlight was Hollande’s appearance alongside Segolene Royal, his longtime partner and mother of his four children. Royal, who is also Socialist, was the party’s nominee in 2007 _ and lost handily to Sarkozy payday advance. Hollande and Royal split not long after that election.

On stage, Hollande and Royal appeared just seconds together, and the body language was uncomfortable: they clasped hands from a distance, and smiled to the cheering throng. But the message _ party unity _ was clear. His new romantic partner, political journalist Valerie Trierweiler, looked on from a seat in the crowd.

Hollande’s near 90-minute speech covered his platform: A focus on education, job support for French youths facing high jobless rates, equal pay for women, respect for culture and ethnic diversity. Sarkozy has structured his campaign on a theme of a “strong France.”

Hollande claimed that Sarkozy, who took office promising economic growth, fiscal responsibility and competitiveness in France, had failed on all _ and promised more responsible Socialist leadership.

“People say to us, ‘Watch out, the left is back, it’s going to empty the (state) coffers.’ It’s already happened! ‘Watch out, if the left is back, it’ll raise the debt’. It’s already happened! ‘The Left will hurt competitiveness’ _ It’s already happened,” he thundered. “Well, we’ll do the opposite.”

The rich, he said, will be asked to pay more, and more money will be redistributed “to allow France to pick itself up.”

Unlike Sarkozy rallies, where a preppier crowd often hoists tricolor French flags in abundance, the Rennes gathering mostly brought out young students and retirees.

His campaign has been textbook: He launched a 60-point platform months ago, hewing to many Socialist tenets. At times, he comes across as stiff and cautious, but has made no big gaffes.

Hollande’s biggest challenge has been to try to project presidential caliber. While his pedigree is top-tier as a graduate of the Ecole National d’Administration _ the French breeding-ground school for both political and corporate elites like former President Jacques Chirac _ he has never run a government ministry.

Under his tenure as party boss, the Socialists suffered one of the biggest shockers in recent French political history: Lionel Jospin lost the first round to far-right nationalist Jean-Marie Le Pen in the 2002 presidential race, later won by Chirac. Hollande calls it the biggest blow of his career and one he won’t soon forget.

Hollande was born in the Normandy city of Rouen, the son of a social-worker mother who he admired and a doctor father who backed the political right and whose ideas “forced me to construct my ideas,” Hollande writes in his campaign-season book entitled “Changer de Destin” (Change Destiny).

On Les Guignols de l’Info, a satirical fake news show with puppets, Hollande has long been depicted as innocent, wide-eyed and soft-in-the-middle _ with a dopey, hollow laugh.

But in the Sarkozy era, he’s tapped into frustration about unemployment and perceived economic inequality. While Sarkozy, a former hard-charging Interior Minister, has trotted out his longtime formula of playing up his security credentials, Hollande has focused on what polls show worry the French most: joblessness and the economy.

The body language at the lectern _ where both Sarkozy and Hollande can excel _ speaks volumes. Hollande often leans on his elbows, or flails his arms about in the air, and laughs. Sarkozy cuts the air in crisp movements, and is seemingly less about engaging his audience than displaying resoluteness.

People who have known Hollande for years say his human touch and his assiduousness _ often unseen _ at the ground game of politics set him apart.

“What you notice most about Francois is that he’s well-balanced, has integrity, and feels good about himself,” said Frederic Bourcier, the Socialist Party’s First Secretary in the region around Rennes, alluding to the image of Sarkozy as hasty, tempestuous and aggressive. “We need something new.”

He also said Hollande had reworked himself, with an image makeover ahead of the campaign that included trimming his midsection, and that could serve as an inspiration for the country.

“This guy is tailor-made for France nowadays,” Bourcier said.

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