Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Economy, deficit top voter issues ahead of Obama speech: poll






WASHINGTON (Reuters) – Americans are eager to hear President Barack Obama address the U.S. economy and federal deficit in his State of the Union speech on Tuesday, with more than half still convinced the nation is in a recession, a poll released on Monday found.


Gun policy and healthcare are also top concerns U.S. voters want the president to discuss in his annual speech to the nation, according to the survey by Quinnipiac University.






Obama, who began his second term last month after winning re-election in November, is expected to use Tuesday night’s speech to offer his plan for spurring the tepid economy, including proposals for investments in infrastructure, manufacturing, clean energy and education.


The nationwide poll found 35 percent of U.S. voters said the economy was a top concern, while 20 percent pointed to the federal deficit. It also showed 53 percent said the U.S. economy is still in a recession even though economists have said the downturn that began in late 2007 officially ended in July 2009.


Fifteen percent said the nation’s gun policies were a top priority and 12 percent said they were most concerned about healthcare, Quinnipiac found.


Its poll of 1,772 registered voters has a margin of error of 2.3 percentage points.


Obama’s speech comes as U.S. lawmakers grapple with the nation’s $ 16 trillion debt and looming across-the-board government spending cuts slated to take effect on March 1.


“Voters trust President Obama more than congressional Republicans on the economy and most other issues, but they are more closely divided on who would do a better job on the deficit and on gun control,” Peter Brown, assistant director of the Quinnipiac University Polling Institute, said.


The finding showed 47 percent backed Obama to handle the economy compared to 41 percent who said they trusted congressional Republicans, while 48 percent said they had more trust in Republicans to cut federal spending compared to 39 who backed Obama.


Those polled were more closely split over whether Obama or Republicans could better handle immigration issues, Quinnipiac said.


Two-thirds of respondents said they were likely to watch the speech, with more women than men saying they would tune in, the poll also found.


(Reporting by Susan Heavey; Editing by Philip Barbara)


Economy News Headlines – Yahoo! News





Title Post: Economy, deficit top voter issues ahead of Obama speech: poll
Url Post: http://www.news.fluser.com/economy-deficit-top-voter-issues-ahead-of-obama-speech-poll/
Link To Post : Economy, deficit top voter issues ahead of Obama speech: poll
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

‘Fully-funded’ policy on social care









Health Secretary Jeremy Hunt says people must feel confident their homes are not at risk



The government says it will announce a “fully-funded solution” on Monday to the problem of elderly people in England who cannot afford social care.


It is expected to include a £75,000 cap on the costs people pay for care and a rise in the threshold for means-tested support from £23,250 to £123,000.


Health secretary Jeremy Hunt said the “scandal” of many people selling homes to pay care bills must be tackled.


Labour said the country needed “a far bigger and bolder response”.


At present, up to 40.000 people every year are forced into selling their homes because they face unlimited care bills, says Mr Hunt – who will set out the plan in a statement to the Commons.


He told the BBC’s Andrew Marr show the aim was “to be one of the first countries in the world which creates a system where people don’t have to sell their own house”.


Deputy Prime Minister Nick Clegg, writing in the Sunday Telegraph, meanwhile, said: “We will make sure no-one is forced to sell their home to pay for care in their lifetime, and no-one sees their life savings disappear just because they developed the wrong kind of illness.”


The cost of accommodation in residential care homes averages about £7,000-£10,000 a year.


Continue reading the main story

Ministers may be giving themselves a big pat on the back for their changes to the social care system.


But for many involved in the sector this is just the start of the process.


Firstly, the £75,000 cap is more than double the figure recommended by Andrew Dilnot, the independent expert asked to look at the issue by government two years ago.


While publicly it is being welcomed – campaigners have been promised reform ever since Tony Blair came to power – there is a nagging fear that it is too high to really get people engaged with planning for their old age.


And, secondly, this reform does nothing to improve the quality of services currently on offer. It is purely aimed at preventing people having to sell their own homes to pay for care.


Local government has long argued the system is dramatically under-funded and services are suffering as a result. For many, this is just the start of the solution.



While the cap is a sizeable sum the hope is that, by establishing the principle that the state will cover the really high costs, people will start planning for their future care needs.


There are a variety of ways in which the elderly with the means to do so can free up £75,000, but one hope is that the insurance industry will start engaging with the issue and developing products that would cover old-age care.


Mr Hunt, who said 10% of people ended up paying more than £100,000 in care costs, said that “just as people make provisions for their pensions in their 20s and 30s, so we also need to be a country that prepares for social care as well”.


He added: “By setting an upper limit to how much people have to pay, then it makes it possible for insurance companies to offer policies, for people to have options on their pensions, so that anything you have to pay under the cap is covered.”


As well as introducing a cap, the government is expected to increase the means-tested threshold – there to ensure the less well-off get state help towards their care costs.


Currently anyone with assets of more than £23,250 has to pay for their care. Under the plans, it is likely the threshold will rise to £123,000 for people who need to go into a care home.


That reflects the fact that rising property prices over the years have effectively meant any home-owner falls outside the state system.


Continue reading the main story

Start Quote



These proposals won’t do anything for the hundreds of thousands of elderly and disabled people who are facing a desperate daily struggle to get the care and support they need right now”



End Quote Shadow care minister Liz Kendall


Mr Hunt is also expected to reveal that the plans will be part-funded by freezing the inheritance tax threshold – at £325,000 for individuals and £650,000 for couples – for three years from 2015.


That is despite Chancellor George Osborne’s Autumn Statement pledge, in December, to raise the threshold by 1% – to £329,000 for individuals and £658,000 for couples – in 2015/2016.


Other funding will come from previously-announced changes to National Insurance and pensions and cuts in government departments.


Labour said that, while the government’s plan would help “some people who need residential care in five or more years’ time”, it would not be fair “for people with modest homes”.


“And these proposals won’t do anything for the hundreds of thousands of elderly and disabled people who are facing a desperate daily struggle to get the care and support they need right now,” shadow minister for care and older people Liz Kendall said.


“We need a far bigger and bolder response to meet the needs of our ageing population: a genuinely integrated NHS and social care system which helps older people stay healthy and living independently in their own homes for as long as possible.”


Continue reading the main story

Start Quote



“The reforms will start to open up the possibility of the financial services sector being able to help people prepare for care”



End Quote Economist Ros Altmann


The National Pensioners Convention said the proposals “simply tinker at the edges” and that a £75,000 cap “will help just 10% of those needing care, whilst the majority will be left to struggle on with a third-rate service”.


“The current system is dogged by means-testing, a postcode lottery of charges, a rationing of services and poor standards and nothing in the plan looks like it will address any of these concerns,” general secretary Dot Gibson said.


Older people’s charity Age UK said it was disappointed at the “high cap” of £75,000 but added “a high cap is better than no cap at all”.


The Association of British Insurers (ABI) welcomed the plans but said it was “vital that people clearly understand the cap and what costs are covered, and a national awareness campaign will be needed to make this happen”.


And Economist Ros Altmann said the proposals would create a fairer system that would allow people to “plan and prepare for care”.


BBC News – Business





Title Post: ‘Fully-funded’ policy on social care
Url Post: http://www.news.fluser.com/fully-funded-policy-on-social-care/
Link To Post : ‘Fully-funded’ policy on social care
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Opposition slams Venezuela devaluation, shoppers fret






CARACAS (Reuters) – Opposition leaders derided another currency devaluation by President Hugo Chavez‘s government as evidence of economic incompetence, while some anxious Venezuelans hit shops on Saturday in fear of price increases.


Though unseen in public since cancer surgery two months ago in Cuba, government ministers said Chavez personally ordered the fifth devaluation of the bolivar in a decade of socialist economics in the OPEC nation – this time by 32 percent.






“The Maduro-Cabello duo are finishing off our Venezuela, we must not allow it!” said opposition leader Henrique Capriles, accusing Vice President Nicolas Maduro and Congress head Diosdado Cabello of squandering revenue from high oil prices.


“They spent the money on (election) campaigning, corruption and gifts abroad. What a lying government!” Capriles said on Twitter.


The measure was announced before a four-day weekend for Venezuela’s Carnival holiday to minimize political or market repercussions. It had been widely forecast by economists as a way of redressing distortions including a black market rate for dollars at four times the old official level of 4.3 bolivars.


Raising the rate to 6.3 bolivars will boost state finances by providing more local currency for each dollar of oil export revenue. But it also hikes prices for imports crucial to the oil-dependent economy, potentially fueling inflation – though the state will seek to brake that using price controls.


WALL STREET PRAISE


Maduro, who is Chavez’s preferred successor should his cancer force a new presidential election, said the move was needed to optimize revenues, including to fund flagship social programs that are wildly popular among Venezuela’s poor.


He said the devaluation was also a response to attacks on the bolivar by capitalist “speculators,” adding that more economic measures would be announced in the days ahead, in line with Chavez’s instructions to ministers who visited Havana.


“Our commander-president has decided them with full consciousness and clarity … to guarantee economic growth and diversification this year,” Maduro said. “We will push ahead with the perfect plan for the people’s victory.”


Critics, however, flooded Twitter with mocking references to a “red package,” or socialist version, of an old-style International Monetary Fund economic package hated by leftists.


“The devaluation is not due to the crisis of global capitalism. It’s due to the government’s irresponsibility and worrying incoherence,” said Ramon Aveledo, head of the opposition Democratic Unity coalition.


On Wall Street, analysts praised the move as necessary – albeit overdue – given the impact on state finances of heavy spending during Chavez’s re-election campaign last year, and the soaring black market rate for the dollar.


Some calculated it would generate extra revenue equivalent to more than 3 percent of GDP.


“It is a positive development,” said Goldman Sachs’ Alberto Ramos. “Clearly, the economic and financial cost of waiting outweighed the political cost of the unpopular move to devalue.”


The illegal rate jumped again, according to websites, immediately after the announcement. Publishing that rate is illegal in Venezuela. Some analysts predicted the government would be obliged to devalue again soon.


VENEZUELANS DEBATE MEASURE


On the streets of Caracas, ideological sparring and complicated economic calculations gave way to anxiety at the prospect of yet more price rises in an economy that for decades has suffered one of the world’s highest inflation rates.


Already packing stores due to shortages of some goods, some shoppers began buying even more before prices rose.


“I’m sure everything will go up on Wednesday, so we have to take advantage now,” said Alicia Leon, 67, packing a trolley with vegetables, fruit and other food at a supermarket in Caracas’s bustling Chacao neighborhood.


Downtown in the emblematic Bolivar Square named for Venezuela’s independence hero, and the president’s idol, Simon Bolivar, 55-year-old Chavez supporter Omaira Fermin said she trusted the government to help the people.


“Salaries will rise thanks to President Chavez,” she said. “There’s a global financial crisis. Of course, Venezuela can’t be immune to that. The problem is capitalism.”


Officials have been at pains to stress that Chavez is still driving policy from his hospital in Cuba, despite Venezuelans having heard nothing from him since his December 11 operation.


They say he is improving after his fourth surgery for a cancer first diagnosed in his pelvic area in mid-2011. But there is no word on any homecoming date yet. Many Venezuelans suspect he will not be able to return to active rule.


Devaluations generally make a nation’s exporters more competitive by lowering the cost of production.


But critics say the move is unlikely to contribute to a significant expansion of domestic industry because of the government’s battle with the private sector, extensive price controls and sometimes uncompensated expropriations.


The central bank president, finance minister, energy minister and other senior officials met on Saturday to inaugurate Venezuela’s new currency authority that will supervise the changes from Wednesday.


“We have hard work ahead,” Finance Minister Jorge Giordani said at the event, shown live on TV.


Venezuela’s heavily-traded bonds are likely to rise on the devaluation, given the healthier picture for state coffers.


(Additional reporting by Girish Gupta, Mario Naranjo and Deisy Buitrago; Editing by Daniel Wallis and Vicki Allen)


Economy News Headlines – Yahoo! News





Title Post: Opposition slams Venezuela devaluation, shoppers fret
Url Post: http://www.news.fluser.com/opposition-slams-venezuela-devaluation-shoppers-fret/
Link To Post : Opposition slams Venezuela devaluation, shoppers fret
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

The Economy Likely Grew After All, Thanks to Oil






There were big headlines—here and elsewhere—after the government reported on Jan. 30 that the U.S. economy shrank in the fourth quarter.


Never mind. A little more than a week later, surprisingly good trade figures today are leading economists to predict that the government will revise its gross domestic product estimate for the last three months of 2012 into positive territory.






The Department of Commerce said the trade deficit shrank 21 percent to about $ 39 billion, the smallest trade gap since January 2010. Oil was the biggest factor. The U.S. imported the fewest barrels of crude in almost 16 years, while fuel exports actually rose.


Commerce’s Bureau of Economic Analysis releases its first estimate on quarterly GDP growth just a month after the quarter ends, so it’s forced to make assumptions and extrapolations to fill in for missing data. The accuracy of its estimate improves as more complete information arrives.


Economists quickly incorporated the new figures into their GDP estimates. Macroeconomic Advisers (briefly) estimated that the economy grew at a 0.7 percent annual rate in the fourth quarter.


“The U.S. trade balance improved dramatically at the end of last year,” UniCredit (UCG) economist Harm Bandholz wrote to clients.


Wait, though. That wasn’t the end of things. Shortly after putting out better-than-expected trade data, the government released worse-than-expected data on wholesale inventories. Macroeconomic Advisers’ Ben Herzon said incorporating inventories would probably reduce its growth estimate to roughly 0.4 percent to 0.5 percent. Barclays (BCS) estimated 0.3 percent. JPMorgan Chase (JPM) economist Daniel Silver wrote to clients: “Our tracking estimate of 4Q GDP growth is now at 0.2%.”


The net of the flurry of revisions is that the economy probably didn’t really shrink in the fourth quarter after all. On the other hand, it didn’t grow much, either.


Businessweek.com — Top News





Title Post: The Economy Likely Grew After All, Thanks to Oil
Url Post: http://www.news.fluser.com/the-economy-likely-grew-after-all-thanks-to-oil/
Link To Post : The Economy Likely Grew After All, Thanks to Oil
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

How Samsung Is Winning the Ad War With Apple








68de3  3Gduepif0T1UGY8H4yMDoxOm1qO387Kn How Samsung Is Winning the Ad War With ApplePlay


Feb. 7 (Bloomberg) — Bloomberg Businessweek’s Sam Grobart has bad news for Apple: Samsung is winning the messaging wars with ads that are more clever, more current and connect more directly with consumers.










Businessweek.com — Top News





Title Post: How Samsung Is Winning the Ad War With Apple
Url Post: http://www.news.fluser.com/how-samsung-is-winning-the-ad-war-with-apple/
Link To Post : How Samsung Is Winning the Ad War With Apple
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

RBS fined $612 million for rate rigging






LONDON (Reuters) – Britain’s Royal Bank of Scotland was fined $ 612 million and a subsidiary admitted to a criminal offence as regulators nailed a third bank in a global investigation into rigging of benchmark interest rates.


RBS, 82-percent-owned by the state after a bailout at the height of the 2008 financial crisis, said on Wednesday it was cutting bonuses to help pay for the fine, in a bid to avoid a public backlash.






The bank fears the scandal will embolden critics who want it to further shrink its profitable investment bank and focus on basic lending at home.


“This is a sad day for RBS, but also an important one in continuing to put right the mistakes of the past,” Chairman Philip Hampton said.


More than a dozen banks and brokerage firms, including JP Morgan, Deutsche Bank and Citigroup, are being investigated by regulators over the manipulation of benchmark interest rates such as Libor and Euribor, which are used to price trillions of dollars worth of loans.


Switzerland’s UBS agreed in December to pay fines of $ 1.5 billion, and Britain’s Barclays has paid $ 453 million, for their role in the Libor scandal.


Deutsche Bank said on Wednesday it had suspended five traders in connection with alleged manipulation of Euribor, a source familiar with the matter said.


Investigators said they discovered hundreds of attempts by at least 21 RBS employees in London, Singapore and Tokyo to manipulate Libor. RBS traders aided dealers at other banks, including UBS, to rig the rates and helped UBS staff to bribe brokers for their assistance in the manipulation.


The abuse at RBS occurred from at least 2006 until late 2010 – after some of the traders learned of the probe into Libor.


The U.S. Department of Justice said RBS was guilty of a “stunning abuse of trust,” while Britain’s Financial Services Authority (FSA) said more fines were likely for other banks.


“The size and scale of our continuing investigations remains significant,” said Tracey McDermott, director of enforcement and financial crime at the FSA.


RBS is paying 87.5 million pounds ($ 137 million) to the FSA, $ 150 million to the U.S. Department of Justice and $ 325 million to the U.S. Commodity Futures Trading Commission.


A unit of the bank in Japan also pleaded guilty to one count of wire fraud, a criminal offence in the United States.


However, RBS avoided criminal liability in the United States, meaning it can retain its banking license there and avoid a fire sale of its U.S. business Citizens.


SHAME


RBS said all but six of the 21 staff implicated had either been fired or had already left the bank. The remainder were being disciplined.


The bank will cut 300 million pounds ($ 470 million) from its bonus pool, including clawing back awards from previous years, to help pay the fine, it said.


John Hourican, head of RBS’s investment bank, is leaving at the end of April after it was discovered the manipulation went on after he took charge. He had no involvement in, or knowledge of, the misconduct, RBS said.


“The conduct of those involved was disgraceful and has brought shame on our company,” the Irish man said in an email to staff on Wednesday.


Hourican, who hit the headlines last year when he made nearly 5 million pounds from selling shares given to him in a 2009 bonus, will receive a year’s salary but forgo share awards.


RBS has shrunk its balance sheet by 700 billion pounds and cut thousands of jobs as it tries to re-invent itself as a “normal lender” after the previous management’s ambitions for global domination went belly up during the financial crisis.


But British Business Secretary Vince Cable said the bank was “in limbo” and should have been fully nationalized when it was rescued in the financial crisis.


The Liberal Democrat said early hopes for a re-privatization of RBS now looked a “distant dream” and resurrected an idea he originally proposed in 2011 that shares in RBS should be distributed to the public by the government so that they share in any eventual recovery in the bank’s stock price.


“This is nothing short of kamikaze greed,” Laura Willoughby, chief executive of consumer group Move Your Money, said of the activity of the RBS traders implicated in rate rigging.


“Libor is the railroad tracks on which our banking system runs, RBS and other banks have shattered trust in the very foundations of our financial system.”


At 1545 GMT RBS shares were up 0.6 percent at 339.6 pence. The stock outperformed a weaker pan-European banking index as traders welcomed the removal of what one called “a major overhang” in the stock price.


($ 1 = 0.6382 British pounds)


(Additional reporting by Laura Noonan, Tim Castle and Myles Neligan in London and Douwe Miedema and Aruna Viswanatha in Washington; Editing by Mark Potter)


Business News Headlines – Yahoo! News





Title Post: RBS fined $612 million for rate rigging
Url Post: http://www.news.fluser.com/rbs-fined-612-million-for-rate-rigging/
Link To Post : RBS fined $612 million for rate rigging
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Wall Street extends gains; Nasdaq up 1 percent






NEW YORK (Reuters) – U.S. stocks rose on Tuesday, with the Nasdaq gaining more than 1 percent, as investors sought bargains following the market’s worst daily session since November and more companies reported results that beat Wall Street’s expectations.


The Dow Jones industrial average <.dji> was up 114.81 points, or 0.83 percent, at 13,994.89. The Standard & Poor’s 500 Index <.spx> was up 13.63 points, or 0.91 percent, at 1,509.34. The Nasdaq Composite Index <.ixic> was up 30.81 points, or 0.98 percent, at 3,161.98.</.ixic></.spx></.dji>






(Reporting By Angela Moon; Editing by Kenneth Barry)


Business News Headlines – Yahoo! News





Title Post: Wall Street extends gains; Nasdaq up 1 percent
Url Post: http://www.news.fluser.com/wall-street-extends-gains-nasdaq-up-1-percent/
Link To Post : Wall Street extends gains; Nasdaq up 1 percent
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Wall Street retreats, Nasdaq and S&P 500 off 1 percent






NEW YORK (Reuters) – Stocks declined on Monday after a disappointing report on factory orders, retreating from gains in the prior session that left the S&P 500 at a five-year high and the Dow above 14,000.


Investors also grew wary on political uncertainty in the euro zone, leading to a sharp rise in Spanish government bond yields.






Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades.


“S&P technicals are at overbought levels, and risk off harbingers, such as Spanish 10-year yields, which are much more difficult for central bankers to tame, have bounced off recent lows,” said Peter Cecchini, managing director at New York-based Cantor Fitzgerald & Co.


Spanish and Italian bond yields rose, renewing worries about the euro zone’s sovereign debt crisis. Spain’s prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank were expected to widen three weeks before a national election.


The benchmark S&P 500 rose on Friday, leaving it roughly 60 points away from its all-time intraday high of 1,576.09, while the Dow’s march above 14,000 was the highest for the index since October 2007.


The S&P index <.spx> is up 5.5 percent for the year, with nearly half of the gains coming after U.S. legislators sidestepped temporarily the “fiscal cliff” of automatic tax increases and spending cuts.</.spx>


Data from the Commerce Department showed overall factory orders rose 1.8 percent during the month, below economists’ expectations. The report said capital goods orders outside of the defense and aircraft industries, edged 0.3 percent lower in December. The category is seen as a gauge of U.S. business investment plans.


Economic data has pointed to a modest U.S. recovery, but the data has not been strong enough to upset investor expectations the Federal Reserve will continue its stimulus policy that has buoyed stocks.


The Dow Jones industrial average <.dji> dropped 134.39 points, or 0.96 percent, to 13,875.40. The Standard & Poor’s 500 Index <.spx> lost 15.16 points, or 1.00 percent, to 1,498.01. The Nasdaq Composite Index <.ixic> fell 39.32 points, or 1.24 percent, to 3,139.77.</.ixic></.spx></.dji>


Chevron Corp dipped 1.1 percent to $ 115.23 after UBS cut its rating to neutral, while Wal-Mart Stores Inc shed 1.7 percent to $ 69.26 after JP Morgan lowered its rating on the world’s largest retailer and reduced its price target.


Oracle Corp lost 3 percent to $ 35.09 after the company agreed to buy network gear maker Acme Packet Inc for about $ 1.9 billion. Acme Packet shares surged 22.2 percent to $ 29.24.


Shares of household products company Clorox rose 1.8 percent to $ 80.53 after the company’s quarterly profit beat analysts’ estimates as a severe flu season boosted sales of disinfecting wipes.


Earnings are due from Anadarko Petroleum Corp and Yum! Brands Inc , owner of fast-food chains, after the closing bell.


According to Thomson Reuters data, of the 256 companies in the S&P 500 that have reported earnings through Monday morning, 68.4 percent have reported earnings above analyst expectations compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


S&P 500 fourth-quarter earnings are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast on October 1.


Herbalife Ltd slumped 4.5 percent to $ 33.46 after The New York Post reported the seller of weight loss products is facing a probe by the Federal Trade Commission.


(Reporting By Angela Moon; Editing by Kenneth Barry)


Business News Headlines – Yahoo! News





Title Post: Wall Street retreats, Nasdaq and S&P 500 off 1 percent
Url Post: http://www.news.fluser.com/wall-street-retreats-nasdaq-and-sp-500-off-1-percent/
Link To Post : Wall Street retreats, Nasdaq and S&P 500 off 1 percent
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Analysis: Higher U.S. bond yields could impede economic recovery






NEW YORK (Reuters) – A rough couple of months in the U.S. bond market has lifted interest rates off record lows and now could impede a slow economic recovery heavily dependent on cheap money to keep going.


While stocks have surged to near-record levels from five years ago, an accompanying rally in the $ 11.6 trillion U.S. Treasury debt market appears to have run out of steam and bond prices have dropped steadily since early December. That has pushed up bond yields, which move in the opposite direction to prices and they are now at the highest levels since last spring.






Some of what’s behind the sell-off can be seen as positive – greater investor confidence in riskier assets such as stocks, signs the European debt crisis is abating and a spate of U.S. economic indicators that point to more growth.


As bonds fall out of favor, however, credit-sensitive corners of the economy could start to feel the pinch. The housing market, car sales and business and public sector investment will be vulnerable as the cost of borrowing rises because all credit costs are ultimately tied to the Treasury market.


“I do fall into the camp of people who worry what will happen when rates go up,” said Tom Nelson, chief investment officer at New York-based Reich & Tang, a firm with nearly half of its $ 28 billion in assets under supervision in money market mutual funds.


Of course, the demise of the three-decade bond-market rally has been forecast repeatedly in recent years. Just last March, Bill Gross, manager of the world’s largest bond fund, the PIMCO Total Return fund, sharply cut his exposure to U.S. Treasuries. Bonds proceeded to rally through November, driving the yield on the benchmark 10-year Treasury note to well below 2 percent.


The threat of a major sell-off remains distant in many investors’ minds because the market enjoys one big source of demand – the U.S. Federal Reserve. As part of its latest effort to prop up the economy by flooding the banking system with cash, the Fed has been buying $ 85 billion of Treasuries and mortgage bonds from banks each month since September and has no plans to ease up anytime soon.


RISING RATES


Still, investors have grown more hungry for higher yields, driving investment fund flows into equities and away from bonds in the past couple of months. The Standard & Poor’s 500 index has delivered a total return in excess of 6 percent since the end of November, while the return on Treasuries has been a negative 1.3 percent, according to Bank of America/Merrill Lynch Fixed Income Index data.


As a result, the 10-year yield last week rose to more than 2 percent for the first time in nine months. Expectations are for yields to move higher, at least modestly.


“This is the biggest risk for bond investors,” Hans Mikkelsen, a bond strategist with Bank of America Merrill Lynch in New York. “I’m surprised we have gotten to 2 percent already.”


In October, Mikkelsen forecast a “Great Rotation” from bonds into stocks in early 2013. Also, a survey last week by J.P. Morgan showed that one in four investors own fewer Treasuries than their portfolio benchmarks, the most in almost 19 months.


And ultimately, analysts agree the Fed’s highly accommodative monetary policy must come to an end.


Nelson from Reich & Tang recalled 1994, when the Fed raised its benchmark federal funds rate six times, to 5.50 percent from 3 percent.


“When the Fed starts to raise rates, they’re not going to go to 35 basis points,” Nelson said. “There’s a high probability that they will move faster than they did in 1994 because just getting back to neutral will mean a sharp rise in rates.”


BANANA PEEL FOR HOUSING?


The spike in Treasury yields, from which most U.S. mortgage interest rates are derived, comes at a sensitive moment for a housing market that has just started gaining traction. Rising mortgage costs could slow investments in real estate, which contributed to economic growth in 2012 for the first time since the housing bubble burst five years ago.


The average interest rate on 30-year mortgages, the most widely held type of U.S. home loan, has increased by 0.15 percentage point to 3.67 percent, according to the Mortgage Bankers Association. That rate would probably have to rise to about 4 percent to hurt housing by discouraging investors from pouring more cash into the sector, analysts said.


Rapidly rising yields would also squeeze businesses and local governments looking to borrow to spend on building plants and roads or hire workers. Like mortgage rates, public and private borrowing costs are linked to Treasury yields.


Berkshire Hathaway Inc , run by billionaire investor Warren Buffett, sold $ 2.6 billion of debt last week. The timing was seen as a response to a recent rise in U.S. Treasury rates and Buffett has a reputation for spotting turning points.


DEJA VU ALL OVER AGAIN


Still, the bond market has seen this before. In the last two years, bond yields rose in the first quarter, only to fade by spring as growth slowed and Europe’s debt crisis flared up.


“Each year we’ve had waves of optimism and pessimism. Right now, investors are on the optimistic foot,” said Robert Tipp, chief investment strategist at Prudential Fixed Income in Newark, New Jersey.


Even if yields rise modestly, it is not bad for everyone. Banks would see profit margins improve as their short-term borrowing costs will likely remain near zero because the Fed is expected to stick to ultra loose monetary policy into 2015.


For savers who have seen their incomes dwindle, a pickup in interest on bank accounts and money mutual funds should be a relief and perhaps encourage them to spend a bit more.


Overall, economists do not think the ingredients are in place for more than a modest rise in rates in 2013. The economic growth trend is still spotty. Even an aggressive forecast would still not bet on Fed raising rates until somewhere in 2014.


“It’s not the final bell for the bond market just yet, though it’s getting closer,” said Daniel Heckman, senior fixed income strategist at U.S. Bank Wealth Management in Minneapolis.


(Reporting by Richard Leong and Ellen Freilich; Editing by David Gaffen and Andre Grenon)


Economy News Headlines – Yahoo! News





Title Post: Analysis: Higher U.S. bond yields could impede economic recovery
Url Post: http://www.news.fluser.com/analysis-higher-u-s-bond-yields-could-impede-economic-recovery/
Link To Post : Analysis: Higher U.S. bond yields could impede economic recovery
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Ron Johnson Concedes: J.C. Penney Isn’t Apple






Okay, so Ron Johnson is not the god of retail.


Even with his reputation for retail wizardry at Apple (AAPL) and Target (TGT), everyone knew it would be hard for him to work his magic at J. C. Penney (JCP). Instead of hawking cool, high-margin tech products for the hipster fan base of Apple, Johnson has to deal with busy moms, screaming kids, and the the broad swath of humanity that just wants a cheap pair of pants. Now, Johnson has been forced to reverse field, announcing that he’ll start holding sales again to boost the struggling department-store chain. It’s a bow to reality: Nobody goes to a J. C. Penney to drink in the ambience or check out what’s new with Joe Fresh. They’ve surfed the Web or seen an ad that tells them the store has Joe Fresh on sale.






Johnson has now displaced J.Crew’s Mickey Drexler as the most watched man in mass-market fashion. And with J. C. Penney’s stock price down about 40 percent since his appointment was announced in June 2011 (though it’s up almost 8 percent today, on the pricing strategy shift), he has plenty of critics on Wall Street. But it’s too soon to write off his tenure as a failure.


In late 2011, Johnson rode in from his heady success at Apple, promising to transform a ho-hum chain into the hub for a 21st century shopping experience. He has widened aisles, offered haircuts, set up jean bars, and brought in colorful newbies like Joe Fresh. As he told me in July, his goal is to have J. C. Penney look less like a merchandise mart than a retail street fair with “all the kinds of things that would entertain the kids while mom shops”—creating a relaxed social experience that brings families together and is “high touch.” Sounds good so far. That’s what Apple did, after all, with its Genius Bars and in-store events.


And what did he miss? That consumers want their coupons and sales, too. Unlike, say, the latest version of the iPhone, there’s nothing in a J. C. Penney that most ordinary people would classify as a “must have.” Even in July, Johnson was starting to realize his disregard for sales was perhaps misplaced. “I thought people were just tired of coupons and all this stuff,” he told me. “The reality is all of the couponing we did, there were a certain part of the customers that loved that. They gravitated to stores that competed that way. So our core customer, I think, was much more dependent and enjoyed coupons more than I understood.”


Back then, his answer was to reform the customer. The challenge, as he saw it, was to get people to understand they can get a good deal every day at J. C. Penney. Then he discovered they already have a place to do that. It’s called Wal-Mart (WMT). If cheap was the defining motivation for most shoppers, they’d never stray beyond Dollar Tree (DLTR) or Wal-Mart for most of their purchases. It’s not. Discounts and sales are just part of the game. It whets the appetite, gets people motivated to look twice at a pair of boots in the knowledge that someone else paid twice as much.


But that doesn’t change the real challenge for Johnson, which is to delight customers once they’re in his stores and motivate them to spend more. The reason J. C. Penney floundered in recent years was because it was boring: ho-hum merchadise, ho-hum layout, a lack of distinctive branding. That’s what has to transform if Johnson is going to move the needle on sales.


The mistake he made was in thinking people would simply visit out of curiosity or because they heard it’s a good deal every day. Wrong! Now he’s stepping up to bring back that sense of urgency. While spokeswoman Daphne Avila stressed in an e-mail this afternoon that “our return to sales in no way signifies a change to our pricing strategy, but rather an evolution of it,” the move feels like a reversal, of course. Good thing. As Johnson himself said, “We’ve got to earn traffic through merchandise and content and experiences.”


At Apple, even with the seamless experience, Johnson knew the products and brand essentially sold themselves. At J. C. Penney, he’s now discovered, customers need a reason to show up. If sales help, more power to him. The chain’s turnaround will ultimately be decided by what people find once they walk through the door.


Businessweek.com — Top News





Title Post: Ron Johnson Concedes: J.C. Penney Isn’t Apple
Url Post: http://www.news.fluser.com/ron-johnson-concedes-j-c-penney-isnt-apple/
Link To Post : Ron Johnson Concedes: J.C. Penney Isn’t Apple
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

US economy adds 157,000 new jobs







The US economy added 157,000 jobs last month, which was slightly below forecasts, but the number of new jobs at the end of 2012 was revised up significantly, official data has shown.






In November and December, the Labor Department’s revised figures showed that 127,000 more jobs were created than initially thought.


But the unemployment rate ticked up to 7.9% in January, from 7.8% in December.


In 2012, an average of 181,000 jobs a month were created, the data showed.


The news helped lift shares on Wall Street to levels not seen since before the financial crisis. In early trading the Dow Jones index rose above 14,000 for the first time since October 2007.


The unemployment rate is based on a survey of households, while the job creation figure is taken from a survey of employers.


On Wednesday, government data indicated that the US economy unexpectedly shrank at an annualised rate of 0.1% in the fourth quarter of 2012.


Meanwhile, an industry survey on Friday said that the US manufacturing sector grew in January at the fastest pace for nine months.


The latest purchasing managers’ index from financial data firm Markit rose to 55.8 last month, up from 54 in December. A reading above 50 indicates growth.


Markit said that its latest survey “suggests the underlying health of the industrial sector continues to improve, and rising production will help the economy return to growth in the first quarter, provided there are no set-backs in coming months”.


‘Positives and negatives’


The Labor Department said that in January, jobs were created in retail, construction, healthcare and wholesale trade, but jobs were lost in transportation and warehousing.


Employment in retail rose by 33,000, compared with an average monthly gain of 20,000 in 2012.


Employment in construction rose by 28,000. The Labor Department said that the industry had created 296,000 jobs since falling to a low in January 2011, but added that the current level of employment was still some two million below its previous peak in April 2006.


Healthcare added 23,000 jobs in January, while wholesale trade added 15,000.


There was little change in manufacturing employment, which has been essentially flat since July 2012.


On the downside, couriers and messengers lost 19,000 jobs, after strong seasonal hiring in November and December came to an end.


Darrell Cronk, regional chief investment officer for Wells Fargo Private Bank in New York, said: “Like most of our jobs reports, it seems like every month, there is something for everybody in this one – there are positives and negatives.


“It was certainly below expectations and a slight negative that we saw a tick up in the unemployment rate from 7.8% to 7.9%, especially with the labour force participation rate staying where it is, which suggests there aren’t a vast influx of those unemployed/underemployed coming back being job seekers. That was disappointing.”


BBC News – Business





Title Post: US economy adds 157,000 new jobs
Url Post: http://www.news.fluser.com/us-economy-adds-157000-new-jobs/
Link To Post : US economy adds 157,000 new jobs
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

MasterCard beats on rise in card spend, cautious on 2013






(Reuters) – MasterCard Inc’s fourth-quarter results topped Wall Street estimates as more people chose card payments over cash but the payment network said global economic woes could slow revenue growth in 2013.


Shares of company, which had risen 4 percent in early trade, changed course and were down more than $ 1 at $ 514.35 in late-morning trade on the New York Stock Exchange.






“There is going to be uncertainty in Europe and the US could well be on a path for a slow recovery, but fiscal policy discussions and circumstances have not been completely resolved,” Chief Executive Ajay Banga said on a conference call. “They could affect consumer confidence further.”


U.S. consumer sentiment unexpectedly deteriorated for a second straight month to its lowest in over a year in January, while a weaker economy in the United Kingdom is pushing the country closer to a “triple-dip” recession.


“Given the current economic backdrop, we expect net revenue growth in the first half of 2013 to be below the 10.7 percent currency-adjusted rate that we saw in the second half of 2012,” Chief Financial Officer Martina Hund-Mejean said.


But she backed the company’s long-term earnings objectives. MasterCard expects 20 percent compounded annual growth on an earnings-per-share basis in the 2013 to 2015 period.


BETTING ON AFRICA, MOBILE


MasterCard and larger rival Visa Inc run debit and credit card networks and have been working to spread card payments in parts of the world dominated by cash transactions.


For both companies, business in Africa, Asia and the Middle East has been growing faster than the United States of the last few quarters.


MasterCard customers made $ 727 billion of purchases worldwide on a local currency basis, up 13 percent.


Purchase volumes in Asia-Pacific, the Middle East and Africa grew at 19.5 percent, far outpacing the 7.1 percent rise in the United States.


The company is now focusing on tie-ups with banks in Africa and Brazil, where mobile and card payments are on the rise.


It signed a deal with Equity Bank of Kenya earlier this month to issue five million debit and prepaid cards over the next 18-months. The deal will also be extended to Uganda, Tanzania, Rwanda and South Sudan later.


The company has also partnered with TIM, the second-largest mobile network operator in Brazil, to launch a mobile money program for its subscribers.


“I’m trying to put my bets in multiple places in mobile,” Chief Executive Ajay Banga said on the call.


Banga wants the company to be able to offer all kinds of mobile payments, including tap-and-go transactions, transferring money via short messaging services and mobile wallets.


RESULTS BEAT


MasterCard’s emerging markets focus boosted its fourth-quarter results. It earned $ 605 million, or $ 4.86 per share, in the quarter, up from $ 19 million, or 15 cents per share, a year earlier.


The Purchase, New York-based company took a $ 495 million litigation charge in the year-ago quarter.


Fourth-quarter revenue rose 10 percent to $ 1.9 billion – the fastest it has grown in three quarters.


Analysts on average expected the company to earn $ 4.81 per share, excluding items, on revenue of $ 1.89 billion, according to Thomson Reuters I/B/E/S.


MasterCard’s results bode well for Visa, which is slated to report earnings next week.


(Reporting by Jochelle Mendonca in Bangalore; Editing by Roshni Menon and Saumyadeb Chakrabarty)


Economy News Headlines – Yahoo! News





Title Post: MasterCard beats on rise in card spend, cautious on 2013
Url Post: http://www.news.fluser.com/mastercard-beats-on-rise-in-card-spend-cautious-on-2013/
Link To Post : MasterCard beats on rise in card spend, cautious on 2013
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

FRC proposes tougher accounting test on banks’ health






LONDON (Reuters) – Accountants will have to determine more thoroughly if a bank can stand on its own two feet for well over a year without taxpayer help under draft changes from the Financial Reporting Council.


The FRC said auditors such as KPMG, PwC, Deloitte and Ernst & Young would have to examine threats to a company’s business model and capital adequacy through the economic cycle for the sector a company is in.






The planned reform stems from anger among UK policymakers that auditors gave banks a clean bill of health just before taxpayers had to shore them up in the 2007-09 financial crisis.


Currently auditors only attest to a company as a “going concern” for the following 12 months, but an inquiry by Lord Sharman recommended a longer period and wider criteria.


KPMG said the proposals represented a high hurdle as the duration of an economic cycle was long and may be open to debate. “My concern is that it will be difficult for many companies to meet what appears to be such a tough test,” said Tony Cates, KPMG’s head of audit.


The FRC said on Wednesday auditors would also have to be sure a company’s solvency and liquidity can be managed for at least a year, disclose any significant risks posed by this, and demonstrate there has been a “robust going-concern assessment”.


Currently audits of banks look at solvency and liquidity but in other sectors typically only liquidity is looked at in any depth. There is no requirement at present to show there has been any in-depth examination of going concern issues in an audit.


GOING CONCERN


The reform is part of efforts to end the perception in markets that banks would not be allowed to fail and taxpayers would always ultimately step in to rescue them.


Saying a bank is a going concern based on this assumption won’t be acceptable any longer.


“We make it clear it’s not possible or appropriate to rely on banks not being allowed to fail. They would have ensure they have appropriate facilities for as long as they needed,” said Marek Grabowski, head of audit policy at the FRC.


The changes would apply to all listed companies who must be audited, not just banks.


The FRC’s draft changes have been put out to public consultation until April and follow an inquiry chaired by Lord Sharman who said on Wednesday the reforms will be radical for many companies.


“If implemented effectively, they will support better risk decision taking, ensure that investors, creditors and other stakeholders are well protected and informed about going concern risks,” Sharman said in a statement.


Directors would also be forced to recognise, acknowledge and respond to economic and financial distress sooner rather than later, he added.


The FRC wants to introduce the changes in annual reports for 2013 onwards.


(Editing by David Holmes)


Economy News Headlines – Yahoo! News





Title Post: FRC proposes tougher accounting test on banks’ health
Url Post: http://www.news.fluser.com/frc-proposes-tougher-accounting-test-on-banks-health/
Link To Post : FRC proposes tougher accounting test on banks’ health
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Ford shares down on Europe losses







Shares in Ford have fallen 3.9% in early Wall Street trading on the rising cost of fixing its European business.






The US carmaker cautioned that 2013 losses in Europe would be $ 2bn, greater than its previous $ 1.5bn estimate.


The stock market reacted negatively, despite Ford reporting profits for the last three months of 2012 that beat expectations thanks to strong US sales.


Earnings after tax for the quarter were $ 1.6bn (£1bn), with underlying profits up 55% from the same period in 2011.


Revenues rose 5% overall, driven by a 13% rise in North America.


Ford boasted that its North American unit had enjoyed its most profitable fourth quarter and year since it first began recording the region’s performance in 2000.


The contrasting fortunes of the number two US carmaker on either side of the Atlantic reflect the broader market trends. While total US car sales hit a post-financial-crisis high last year, 2012 sales in Europe fell more than 8% from the previous year.


Ford, like many rivals, is in the process of downsizing its European business to reflect the shrinking market, with resulting losses due to redundancy payments and the write-off of the value of factories and other assets it owns in the region.


The company said these costs were turning out to be more than expected, thanks to the strength of the euro and the higher valuation of employee pension claims. It has also marginally cut its forecast for total European sales in 2013.


To add to the firm’s woes on the continent, chief financial officer Bob Shanks admitted to investors that the delayed launch of the new Mondeo in Europe would cost Ford several hundred million dollars in missed revenues.


BBC News – Business





Title Post: Ford shares down on Europe losses
Url Post: http://www.news.fluser.com/ford-shares-down-on-europe-losses/
Link To Post : Ford shares down on Europe losses
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Obama’s Parting $250,000 Gift to Hillary Clinton






Last week, campaign disclosure reports revealed that Hillary Clinton had finally retired the debt from her 2008 presidential campaign — with a little help from the guy who beat her, Barack Obama. Clinton’s debt once totaled more than $ 20 million, although it had dwindled to about $ 250,000 by last year. That’s when a team of top Obama donors decided to surprise Clinton, and thank her for her loyal service, by raising enough money to pay off her bills. As Secretary of State, she was forbidden from political fundraising.


According to a person involved in the effort who did not want to be named talking about internal fundraising strategy, it was launched last April by Steve Spinner, a California finance chairman for the Obama campaign; Jane Stetson, the former Democratic National Committee finance chair; and Henry Munoz, the incoming DNC finance chair. The challenge was tougher than it may appear, since it required a particular kind of donor. In order not to run afoul of campaign finance laws, the Obama team had to find people who had not already given Clinton the 2008 maximum primary donation of $ 2,300 or maxed out their total federal candidate donations during the 2012 cycle ($ 46,200). And of course those people also had to be warmly disposed toward Clinton and still have plenty of free cash on hand.






The team found them by assigning an intern to comb through the records at OpenSecrets.org and see who still had room to give. In the end, it took the checkbooks of about 120 people and several months to retire the debt–I’m told the last check arrived in early July. And as it turned out, the Obama folks substantially overshot the mark. Clinton’s campaign, which has not yet formally been shut down, now shows a surplus of about $ 205,000.


Businessweek.com — Top News





Title Post: Obama’s Parting $250,000 Gift to Hillary Clinton
Url Post: http://www.news.fluser.com/obamas-parting-250000-gift-to-hillary-clinton/
Link To Post : Obama’s Parting $250,000 Gift to Hillary Clinton
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

ADB, World Bank to step up work in Myanmar after arrears paid






(Reuters) – The Asian Development Bank (ADB) said on Monday it was resuming operations in Myanmar with a $ 512 million loan for social and economic projects that would help the country build on reforms since a military government stepped down in 2011.


In a separate statement, the World Bank said its board had approved a $ 440 million credit for Myanmar and that, as with the ADB, it was now fully able to support the country’s development because debt arrears had been cleared with the help of Japan.






Myanmar President Thein Sein, who heads a quasi-civilian government, has freed political prisoners, unmuzzled the media and begun to reform the economy with a new foreign investment law and an exchange rate determined more by market forces.


In response, Western countries have eased sanctions imposed on the military regime. International financial institutions have offered mostly technical help but have been constrained until now by debt arrears accumulated under the military.


The Manila-based ADB said in a statement that bridge financing provided to Myanmar by the Japan Bank for International Cooperation (JBIC) this month allowed the government to pay off arrears to the ADB of about $ 500 million.


The World Bank, in its statement from Washington dated January 27, said its loan would be used in part to “help the government meet its foreign exchange needs”, which included repaying the JBIC’s bridge loan.


The World Bank arrears had been put at about $ 400 million. Japan, whose government and companies have been particularly active in the former Burma since it opened up, had said it would help with the arrears, which were preventing international bodies from offering fresh loans.


The ADB, which reopened an office in Yangon, Myanmar’s commercial capital, in April 2012, said the clearing of arrears allowed it to provide its first loan to the country in more than 30 years.


Thein Sein’s government has had to start practically from scratch in developing a modern economy. Reflecting that, the ADB said it would focus on “the building blocks for stability and sustainability”.


Among other things, it would look at improving public finances and developing the finance sector.


The loan would be used to “finalize arrears clearance and sustain government efforts to revamp the national budget process and modernize tax administration”, the ADB said.


“In rural areas, where development has been hindered by lack of infrastructure, restrictions on land usage, poorly developed support services and limited access to financial services for farmers, ADB funding will help develop a strategy to make banking services more widely available,” it said.


The World Bank said its credit would support reforms to strengthen macroeconomic stability and to improve public financial management and the investment climate.


It said that, over the past year, it had opened an office in Yangon and brought in technical experts to help the government develop a broad development program. The government put a detailed program to a big aid donors’ conference in the capital, Naypyitaw, on January 19-20.


The World Bank said it had already provided an $ 80 million grant for improvements to rural infrastructure, including schools, health clinics, roads and irrigation schemes in about 640 villages across Myanmar over six years.


The International Monetary Fund said on January 17 the government had asked for its help to pursue reforms and craft economic policies so that Myanmar could become part of the global economy.


(Additional reporting by Martin Petty; Writing by Alan Raybould; Editing by Richard Borsuk and Paul Tait)


Economy News Headlines – Yahoo! News





Title Post: ADB, World Bank to step up work in Myanmar after arrears paid
Url Post: http://www.news.fluser.com/adb-world-bank-to-step-up-work-in-myanmar-after-arrears-paid/
Link To Post : ADB, World Bank to step up work in Myanmar after arrears paid
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Banks face ‘decisive’ two years









Mark Carney says that 2013 and 2014 are going to be decisive years for financial sector reform



The incoming governor of the Bank of England has said the next two years will be “decisive” for bank reform.


Mark Carney, current governor of the Bank of Canada, said “shadow banking” and the issue of “too big to fail” would be tackled.


The 2008 crisis would be repeated if unregulated financial activities – blamed for amplifying the meltdown – went unchallenged, he said.


He also warned that central banks alone could not eliminate “tail risks”.


He said that, contrary to some reports, tail risks – essentially worst-case scenarios – in Europe and the United States remained.


Shadow banks are companies that operate like banks but fall outside current oversight.


“The next two years will be decisive on ending ‘too big to fail’ [for banks] and addressing shadow banking and over-the-counter derivatives, that absolutely amplified the last crisis – and will do so again if we don’t complete our agenda,” he told an audience at the World Economic Forum in Davos.


Continue reading the main story



The calm mood in sunny Davos is open to interpretation. It might be tempting to see it as a reflection of hope that the global economy is back on track and picking up pace.


But equally, it could be taken as a sign of exhaustion, bringing pause to an economic crisis that has been long and tiring.


Nobody here expects a sharp and sudden recovery, especially not in the US or the eurozone.


But these days, politicians and business leaders seem happy as long as they are not in the eye of a storm.



Over-the-counter derivatives – unregulated because they are privately negotiated between two parties – were blamed for exacerbating the financial system.


Mr Carney takes up his new position at the Bank of England in June.


His comments could hint at what is to come when he succeeds Sir Mervyn King at the Bank, which has seen its financial regulatory powers increase since the financial crisis.


Meanwhile, International Monetary Fund managing director Christine Lagarde, who was also present on the panel with Mr Carney, warned that countries should keep up with reforms, especially in the eurozone, to pursue banking and fiscal union while keeping pace with structural reforms.


BBC News – Business





Title Post: Banks face ‘decisive’ two years
Url Post: http://www.news.fluser.com/banks-face-decisive-two-years/
Link To Post : Banks face ‘decisive’ two years
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Exxon overtakes Apple in market value again






NEW YORK (Reuters) – Exxon Mobil briefly overtook Apple as the largest U.S. publicly traded company by market value on Friday as shares of the technology giant continued to fall.


Apple shares traded down 2 percent on the day at $ 441.31, down from a high above $ 700 set in September, for a market value of roughly $ 416 billion. Exxon shares, flat on the day at $ 91.33, added to a market value of about $ 416.5 billion.






Apple has closed the day as the largest company by market capitalization since late January last year, when it passed Exxon.


(Reporting by Rodrigo Campos; Editing by James Dalgleish)


Business News Headlines – Yahoo! News





Title Post: Exxon overtakes Apple in market value again
Url Post: http://www.news.fluser.com/exxon-overtakes-apple-in-market-value-again/
Link To Post : Exxon overtakes Apple in market value again
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

RIM shares rise on report of Lenovo interest






TORONTO (Reuters) – Shares of Research In Motion Ltd rose 4 percent on Thursday after a report quoting China’s Lenovo Group as saying a bid for the BlackBerry maker was among the options for boosting its mobile business.


“We are looking at all opportunities — RIM and many others,” Lenovo Chief Financial Officer Wong Wai Ming told Bloomberg in an interview at the World Economic Forum‘s annual meeting in Davos, Switzerland. “We’ll have no hesitation if the right opportunity comes along that could benefit us.”






Wong said Lenovo has spoken to RIM and its bankers about various combinations or strategic ventures, the Bloomberg report said.


Earlier this week, RIM shares surged to a 13-month high after its chief executive, Thorsten Heins, said RIM might consider strategic alliances with other companies, including a possible sale of its handset business, following next week’s launch of devices powered by RIM‘s new BlackBerry 10 operating system.


Any bid for RIM, which Canadian Prime Minister Stephen Harper once described as a national “crown jewel,” would face a rigorous review by the government to determine if the deal would bring a “net benefit” to the country.


ALL OPTIONS EXAMINED


RIM announced a far-reaching strategic review last May under which it was expected to examine all options, from software licensing deals to an outright sale of the company.


After the comments from Lenovo, a RIM spokesman said the company had nothing new to report on its strategic review at this time.


“We continue to examine all available options to create new opportunities, focusing on areas where we will be more effective partnering rather than going it alone, and ultimately maximizing value for all stakeholders,” said RIM spokesman Nick Manning.


The company, once a pioneer in the smartphone industry, has struggled in recent years as its aging line-up of devices lost market share to Apple Inc’s iPhone and devices based on Google Inc’s Android operating system.


RIM hopes its new touch-screen and keyboard devices, powered by its new BlackBerry 10 operating system, will help it claw back market share.


Shares of RIM, which opened lower on Thursday, were up 4 percent at $ 18.07 in morning trading on the Nasdaq, while its Toronto-listed shares were up 3.8 percent at C$ 18.10.


(Reporting by Euan Rocha; Editing by Frank McGurty)


Economy News Headlines – Yahoo! News





Title Post: RIM shares rise on report of Lenovo interest
Url Post: http://www.news.fluser.com/rim-shares-rise-on-report-of-lenovo-interest/
Link To Post : RIM shares rise on report of Lenovo interest
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

To Crack China, Apple Needs More Than Cheap iPhones






When Apple reports its quarterly earnings after the markets close Wednesday, investors will be looking for clues about how Chief Executive Tim Cook plans to cope with the company’s challenges in China. In the world’s largest telecom market, Apple has not only fallen far behind arch rival Samsung Electronics (005930), it also lags behind Lenovo, a PC company that just two years ago was barely even in the smartphone business at all.


Adding to the indignity, Apple (AAPL) is also behind an even less-known brand called Coolpad,  which is owned by Shenzhen-based China Wireless Technologies. As my Bloomberg News colleague Edmond Lococo and I reported Wednesday, Coolpad has become the No. 3 brand in China, behind only Samsung and Lenovo and well ahead of Apple, thanks to its focus on low-cost smartphones.






The below-$ 200 market segment is growing fast in China but it’s one that Apple has long ignored. The cheapest iPhone on Apple’s China website, an 8-gigabyte iPhone 4, costs 3,088 yuan (or $ 495). The latest iPhone 5 starts at 5,288 yuan ($ 850).


A cheaper iPhone might help Apple address that problem and take down upstarts like Coolpad. As Bloomberg has reported, Apple is working on a low-cost iPhone priced between $ 99 and $ 149, with China and other developing markets the target.


But selling more gadgets is just one of Apple’s China challenges. Another is getting Chinese to pay for things on iTunes. China is notorious as a piracy playground, and with counterfeit CDs and DVDs so easy to buy in the markets, and unauthorized music and movies so easy to download from the Internet, relatively few Chinese can be bothered buying from an online service. And even if they wanted to pay, they wouldn’t have the chance; Apple doesn’t sell music or movies in China.


Apple is trying. There is a Chinese iTunes store that offers apps, although most of the popular ones are free. Suppose you’re in China and you want to buy a game app for your iPhone or make an “in-app” purchase while playing a free game. Until last year, you needed a credit card from the U.S. or another Apple-blessed place to buy from iTunes. Now Apple has started a local version of iTunes for people with Chinese credit cards.


Still, it’s not easy to be loyal to iTunes in China. First of all, the servers are not in China, so the service is slow. Also, any would-be shopper must prepay to buy from China’s version of iTunes. If you haven’t put money into the account, you can’t buy anything. That makes impulse shopping very difficult. And unlike Android users, iPhone owners can’t just make purchases and have the charges show up on their mobile-phone bills. China’s cellular operators last year starting offering that service for Android, greatly simplifying the purchasing process. Apple doesn’t have anything comparable yet. Perhaps that’s one of many things on Tim Cook’s agenda when he met this month with Xi Guohua, the chairman of China Mobile.


Businessweek.com — Top News





Title Post: To Crack China, Apple Needs More Than Cheap iPhones
Url Post: http://www.news.fluser.com/to-crack-china-apple-needs-more-than-cheap-iphones/
Link To Post : To Crack China, Apple Needs More Than Cheap iPhones
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..