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January 19, 2012

U.S. Housing Starts Drop 4.1% - Bloomberg

Filed under: economics, online ads — Tags: , , , — Snowman @ 12:48 pm

Builders began work on fewer houses than forecast in December, capping the worst year on record for single-family home construction and signaling recovery in the industry will take time.

Housing starts dropped 4.1 percent to a 657,000 annual rate last month, reflecting a slump in multifamily dwellings, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, were little changed.

Four years after housing helped spark the last recession, falling home prices and ongoing foreclosures are hampering an industry-wide recovery. For all of 2011, work was started on 428,600 single-family homes as construction competed with the surfeit of previously owned dwellings.

January 17, 2012

Fiat, Peugeot Lead European Car-Sales Drop - Bloomberg

Filed under: legal, mortgage — Tags: , , , — Snowman @ 8:38 pm

Fiat SpA (F), PSA Peugeot Citroen (UG) and Renault SA (RNO) led a fourth consecutive year of car sales declines across Europe as consumer confidence fell and unemployment remained at record levels.

Registrations last year fell 1.4 percent to 13.6 million vehicles, propelled by a 5.8 percent drop in December, the Brussels-based European Automobile Manufacturers Association, or ACEA, said today in a statement.

Four of the region

January 16, 2012

Greek Debt Swap Faces

Filed under: loans, online ads — Tags: , , , — Snowman @ 7:03 am

The Greek government and its creditors return to the negotiating table this week to revive stalled talks on a debt swap as German Chancellor Angela Merkel places pressure on both sides to forge a deal.

Greek Finance Minister Evangelos Venizelos said two days ago that talks with the Institute of International Finance will resume on Jan. 18. The Washington-based IIF, which represents banks holding the bonds, said on Jan. 14 there is a

January 14, 2012

In bankruptcy, AMR suddenly becomes hot topic

Filed under: money, technology — Tags: , , , — Snowman @ 5:19 pm

With the worst recent financial record in the industry and poisonous labor relations, American Airlines wasn’t a very attractive target for buyers.

That view is changing now that American and parent AMR Corp. are reorganizing under the bankruptcy process at the same time that most other airlines have returned to profitability. Mergers have reduced competition and helped drive up fares.

Suddenly, American Airlines is in play. US Airways Group Inc. has hired advisers to study AMR, according to a source familiar with the situation, and reports say that Delta Air Lines Inc. and buyout firm TPG Capital are also weighing bids. None of the companies would comment.

Industry insiders expect every major U.S. airline to take a look at AMR. Despite losing money every year since 2008 and missing out on the airline merger mania of the past few years, American is still the world’s third-biggest carrier by passenger traffic. In bankruptcy, AMR could shed billions in debt, reduce its costs and still afford new planes _ a trifecta that has caught the eye of rivals.

“Everybody has to be thinking about how to deal with AMR in two years,” said Darryl Jenkins, a consultant who has worked for airlines on previous mergers. “They will be the most efficient carrier with a new fleet. They’re going to be very desirable.”

AMR’s CEO has said the best course for American is to remain independent. But if another airline makes an offer that sounds good to creditors and the bankruptcy judge, then it could make more sense for AMR to simply sell itself.

Wolfe Trahan & Co. analyst Hunter Keay put the chances of AMR emerging from bankruptcy as a stand-alone airline at no better than 20 percent. He thinks that with Delta’s access to borrowing and US Airway’s connections to deep-pocketed TPG, there could even be a bidding war for AMR.

Several other airlines or other suitors could pursue AMR. Each combination would carry its own pros and cons:

_ US Airways would get needed size. In the last few years, it failed in bids to buy or merge with Delta and United and now finds itself the nation’s fifth-largest airline.

“The combination that makes the most sense is US Airways with American because they both need a bigger presence to appeal to business travelers,” said Saranthi Syth, an analyst for Raymond James Financial Inc.

The US Airways hub in Philadelphia could help American expand service from the eastern U.S. to Europe and take pressure off American’s trans-Atlantic bottleneck at New York’s Kennedy Airport, said Bob McAdoo, an airline analyst for Avondale Partners.

Other analysts, however, said US Airways wouldn’t offer much help in key markets such as Asia, where American is weaker than United and Delta. Its hubs, including Charlotte, N.C., and Phoenix, are in the kind of secondary cities from which American has been retreating. And such a deal would merge two airlines with already poor labor relations and pilots represented by different unions.

US Airways has not yet discussed a merger directly with American, but has hired investment adviser Jim Millstein and Barclays Capital to study how a deal might look, a source with knowledge of the situation said free online credit report. This person requested anonymity because the status of the airline’s examination of American has not been publicly disclosed.

_ Delta would love to get American’s routes in Latin America, but analysts think a combination of these two would be too big to win regulatory approval without major divestitures _ both are already big in New York, for example. That has some experts thinking that Delta is only interested in cherry-picking parts of AMR if it is broken up.

_ United Continental Holdings Inc., the world’s biggest airline, would benefit by adding American’s operations at London’s Heathrow Airport. But a United bid would face the same _ or even tougher _ regulatory scrutiny than a Delta offer, and the company is still busy absorbing Continental. But few would be surprised if United is intrigued.

“If Delta is going to take a look at AMR, United will take a look at AMR,” said Sterne Agee analyst Jeff Kauffman.

_ TPG Capital would have one advantage: not being an airline, it would presumably face fewer regulatory hurdles. It has worked amicably with AMR and its new CEO. But it’s not clear how a buyer that’s not an airline will help boost AMR revenue and some analysts don’t believe TPG will be a serious bidder in the end.

American’s labor unions, despite a history of poor relations with management, are wary of a takeover. James C. Little, president of the Transport Workers Union, which represents American’s mechanics and other ground workers, said he fears that a buyer would send aircraft-overhaul work overseas. American employees do most of that work in the U.S., while rival airlines have outsourced it.

For now, at least publicly, American Airlines is taking the position that it would prefer to remain independent.

New CEO Thomas Horton, in a letter to employees two weeks after the bankruptcy filing, said “opportunists” might try to buy the company while it’s down but that “the best path for American is the one that leads us back to the top.”

McAdoo, the Avondale analyst, thinks American will most likely remain independent because its labor unions and new CEO might prefer that to being bought by another airline that has its own unions and CEO.

“Here’s a guy (Horton) who just got promoted to CEO,” McAdoo said. “Is he going to want to give up that title, and pair up with a company where he isn’t the CEO?”

Gordon Bethune, a former Continental Airlines CEO who evaluated offers for Delta during that airline’s bankruptcy, said AMR greatly helped its chances of remaining independent by filing for Chapter 11 when it still had $4 billion in cash _ enough to buy time.

“They don’t need financing,” Bethune said. “They don’t need to go begging and get involved with somebody they don’t want to get involved with.”

Source

January 12, 2012

Documents show how Fed missed housing bust

Filed under: marketing, money — Tags: , , , — Snowman @ 11:51 pm

Ben Bernanke presided over his first meeting as Federal Reserve chairman in March 2006 believing the nation could achieve a “soft landing” from falling home prices. Three months later, Bernanke had begun to grasp that he and others might have underestimated the risk housing posed to the economy.

Newly released transcripts of Fed meetings during Bernanke’s first year as chairman show that, among Fed officials, he often expressed the most concern about housing. But no official, according to the transcripts, recognized the extent of the damage a housing bubble would cause Payday advance. A year later, its collapse helped send the nation into the worst recession since the Great Depression.

In fact, Treasury Secretary Timothy Geithner, then a Fed official, expressed confidence in September that “collateral damage” from housing could be avoided.

Source

January 11, 2012

EU’s chicken-and-egg conundrum

Filed under: business, legal — Tags: , , , — Snowman @ 8:55 am

When Eric Pierart takes in the chaotic wiggling of thousands of hens caged in his renovated barn, he’s reminded of how tough it is for Europe to unite on anything.

And how much time it takes.

A dozen years after the European Union set Jan. 1, 2012 as the date to eliminate the most cramped cages to improve the living standards of egg laying hens, half of the 27 European Union nations have failed to fully comply _ a flop seen as a metaphor for Europe’s current state of disarray.

“In all, they have been talking about it for 30 years,” complained the ruddy-cheeked Pierart, who adhered to the new rules.

“Now, it shows that common ideas for everyone are still hard to come by.”

Such is the way of the EU, where legislation seeps through layers of political and institutional granite in 27 nations at barely a trickle. And it affects a lot more than just the happiness of chickens.

Take the global economy.

For nearly two years, the world has been crying out for immediate and drastic measures to combat a debt crisis that has threatened to trigger a worldwide depression.

For nearly two years, the world has come away frustrated with explanations that Europe is not a legislative superhighway.

Now the fate of the lowly laying hen is again underscoring how slow a process it is to get everyone in the quilt of nations that is the European Union to unite on a common cause.

Many chicken farmers who made the heavy investment on time are now at a competitive disadvantage from laggards who didn’t. Pierart says he spent some euro1.5 million ($1.9 million) on new equipment for 100,000 chickens.

In this chicken-and-egg situation, it’s hard to pinpoint who’s ultimately to blame.

Some fault the glacial pace of continentwide legislation, as well as the EU’s poor checks, controls and enforcement.

Others point the finger at the perceived bad faith of some EU nations, seen as turning a laudable ideal into a logistical mess.

“If it is already so difficult for this, then how tough is it for 27 nations on much bigger issues?” Pierart asked.

It’s all deepened well-worn stereotypes that have long dogged the European Union _ about how the less affluent south and east skirt the rules, about how upright nations like Germany end up paying for it all, and about the bloated EU institutions that seem unable to do anything about it.

Those institutions, often identified simply as “Brussels”, can be a soft target. Fix something, and they’re accused of meddling. When things goes wrong, they’re accused of inaction or incompetence.

“It’s an absolute joke,” said Ian Plant, the owner of Plants Eggs in England’s Lincolnshire, who, like Pierart, made the switch on time.

“This is such a serious situation that someone at the end of the day has to get to grips with it.”

Even EU Consumer Policy Commissioner Dalli has said the hen imbroglio is undermining the EU’s credibility.

His office said that 14 member states are still not complying with the rules, including France, Italy, Poland and Spain.

That has particularly irked Britain, which has deep animal rights traditions and often seizes on any perceived slight from the European Union easy payday loans.

“It is unacceptable that after the ban on battery cages comes into effect around 50 million hens across Europe will still remain in poor conditions,” said British Agriculture Minister Jim Paice.

The European Commission says the total stands at 46 million hens still kept in illegal battery cages out of 330 million, or roughly 14 percent.

The new rules require cages to boost living space per hen to at least 750 sq. centimeters (115 sq. inches) from at least 550 square centimeters (85 square inches), among other measures.

“We have all had plenty of time to make these changes,” Paice said. “It would be unthinkable if countries continuing to house hens in poor conditions were to profit from flouting the law.”

The European Commission says it will be sending inspectors and starting legal proceedings against the recalcitrant nations as soon as possible. But those, too, can be lengthy, and meanwhile member states are left to deal with the potentially unfair competition as best they can.

“It can go all the way to the European Court of Justice,” said EU Commission spokesman Frederic Vincent, referring to the EU’s highest court. “It can lead to penalties.”

To many farmers, though, that is too little too late.

And animal welfare activists are equally frustrated. The cock-up with the hens reminds Michel Vandenbosch, leader of Belgian animal rights group Gaia, of how Greece _ whose debt woes triggered the financial crisis _ cooked its budgetary books for years until it was found out in 2009.

“Greece made a fool of the EU for years,” Vandenbosch said. “And now in this case too, they see things when it is too late.”

After all the years of work, Vandenbosch said the campaign to win hens a bit more wiggle room almost wasn’t worth the effort.

“Chickens won’t notice the difference,” he said. Instead of working with EU politicians, he said his organization has had at least as much success working on market players like Unilever, which is now moving well beyond EU rules and toward using only eggs from cage-free birds in their food products.

“Politics will have to realize how the market reacts, and they will have to follow,” Vandenbosch said.

In England, Plant said his renovations cost several million pounds.

“Having made this sort of investment, having been told by our government all the way along that this legislation was gold-plated, that it had to be completed by Jan. 1, we are now very disillusioned to find that substantial parts of Europe haven’t complied,” he said.

And when Europe fails, many still look to national borders as a line of defense.

“We’re now faced with a situation where something has to be done about these illegal eggs coming onto the British market,” said Plant.

Source

January 9, 2012

Swiss Franc Policy Test Looms for SNB Frontrunner Jordan After Hildebrand - Bloomberg

Filed under: marketing, term — Tags: , , , — Snowman @ 7:19 pm

Thomas Jordan

January 8, 2012

Merkel, Sarkozy Return to Work on Euro Rescue - Bloomberg

Filed under: Uncategorized, money — Tags: , , , — Snowman @ 10:51 pm

German Chancellor Angela Merkel and French President Nicolas Sarkozy meet today for the first time in 2012 as they seek to craft a master plan for rescuing the euro over the next three months.

The two leaders gather in Berlin to flesh out a new rulebook for fiscal discipline negotiated at a Dec. 9 summit that seeks to create a

January 6, 2012

Employment growth picks up pace

Filed under: online ads, term — Tags: , , , — Snowman @ 8:23 pm

Employment grew solidly last month and the jobless rate dropped to a near three-year low of 8.5 percent, offering the strongest evidence yet of an acceleration in economic activity.

Nonfarm payrolls increased 200,000 last month, the Labor Department said on Friday, the most in three months and way above economists’ expectations for a 150,000 gain.

The economy needs to sustain the current pace of job creation to signal a robust recovery is finally under way.

The unemployment rate dropped from a revised 8.7 percent in November, which was previously reported as 8.6 percent. The jobless rate is now the lowest since February 2009.

“This highlights that the U.S. economy is on its way to recovery even as strains in Europe persist,” said David Watt, senior currency strategist at RBC Capital in Toronto.

Stocks index futures extended gains on the data, while prices for Treasury debt fell. The dollar rose against the euro.

Signs the labor market is gaining traction could offer some comfort for the Obama administration, whose economic policies are constantly attacked by the Republicans.

The state of the labor market could determine whether President Barack Obama gets re-elected in November.

The report cemented views that growth in the fourth quarter accelerated after a tepid performance in the first 9 months of the year.

A string of better-than-expected U.S. economic indicators in recent weeks has highlighted a contrast between the recovery in the world’s biggest economy and Europe, which is already widely believed to be in recession and probably faces worse to come.

Though the payrolls count for October and November was revised to show 8,000 fewer jobs created than previously reported, there is no denying the labor market is recovering.

The separate household survey, from which the jobless rate is derived, showed gains in employment and a modest decline in the labor force, helping to lower the jobless rate.

A broad measure of unemployment, which includes people who want to work but have stopped looking and those working only part time but who want more work, dropped to an almost three-year low of 15.2 percent from 15.6 percent in November.

Still, the economy needs even faster pace of job growth over a sustained period to make a noticeable dent in the pool of the 23.7 million Americans who remain either out of work or underemployed since the end of the 2007-09 recession business card design.

With the labor market still far from healthy, the debt crisis in Europe unresolved and tensions over Iran threatening to drive up oil prices, the U.S. economy faces stiff headwinds.

Economists predict the recovery will lose a step early this year after expanding in the fourth quarter at what is expected to be the fastest pace in 1-1/2 years.

This should keep alive the possibility of the Federal Reserve embarking on a third round of asset purchases, or quantitative easing, to spur stronger growth.

GOVERNMENT A DRAG

All the job gains in December came from the private sector, where payrolls rose 212,000 - the most in three months. Government employment contracted 12,000.

For all of 2011, the private sector added 1.9 million jobs, while government employment fell 280,000.

A measure of the share of industries that showed job gains during the month rebounded after falling sharply in November.

There were job gains in construction, where unseasonably mild weather has boosted groundbreaking for new homes. Construction payrolls increased 17,000 after falling 12,000 in November.

Transportation and warehousing also got a boost from the mild temperatures, with employment jumping 50,200.

The bulk of the transportation increase came from the courier and messenger industry, which rose 42,000, probably reflecting gains from online purchases during the holiday season.

Manufacturing jobs rose 23,000, the largest gain since July. Factory employment rose 225,000 last year.

Retail employment rose 27,900 after hefty gains in November as retailers geared for a busy holiday shopping season.

Healthcare and social assistance increased 28,7000 after rising 20,200 in November. But temporary hiring - seen as a harbinger of future hiring - fell 7,500 in December after gaining 11,200.

Even though employment picked up last month, hourly earnings rose a modest four cents, indicating that most of the jobs being created are low paying. The high unemployment rate also means wages cannot grow much.

This is a potentially troubling sign for consumer spending, which has been largely supported by a reduction in savings.

The average workweek rose to 34.4 hours from 34.3 hours in November.

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January 5, 2012

Euro Extends Drop Versus Dollar After French Borrowing Costs Rise at Sale - Bloomberg

Filed under: business, term — Tags: , , , — Snowman @ 7:39 am

The euro extended its decline against the dollar after French borrowing costs rose at a sale of bonds.

The 17-nation common European currency was 0.9 percent weaker at $1.2832 at 10:08 a easy to get unsecured personal loans.m. London time.

Source

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