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April 24, 2012

World stocks fall as European problems simmer

Filed under: Homebuilder, money — Tags: , , , — Moon @ 4:24 am

World stocks skidded lower 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.

European stocks and U.S. futures fell as investors recoiled from risky assets amid a tepid report on Chinese manufacturing and signs of political resistance to proposed spending cuts aimed at extricating Europe from its debt crisis.

Britain’s FTSE 100 shed 1.4 percent to 5,690.86 and Germany’s DAX dived 2 percent to 6,612.49. France’s CAC-40 lost 1.2 percent to 3,150.42.

Wall Street appeared headed for a lower opening, with Dow Jones industrial futures down 0.8 percent to 12,890 and S&P 500 futures 0.8 percent lower at 1,364.20.

Asian stocks also posted palpable losses, especially Chinese shares. Hong Kong’s Hang Seng fell 1.8 percent to 20,624.39.

Mainland Chinese shares dropped, with the Growth Enterprise Market _ a sub-market focused on smaller, innovative companies _ falling more than 5 percent due to news it will launch a delisting system in May.

The benchmark Shanghai Composite Index lost 0.8 percent to 2,388.59 and the Shenzhen Composite Index lost 1.8 percent to 944.87.

Japan’s Nikkei 225 index swung between gains and losses before closing, down 0.2 percent at 9,542.17.

South Korea’s Kospi slipped 0.1 percent to 1,972.63 and Australia’s S&P/ASX 200 dropped 0.3 percent to 4,352.40. Benchmarks in Singapore, Indonesia, Thailand and Taiwan were also lower.

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 payday loans.

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

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.

Meanwhile, a report on Chinese manufacturing suggested that a slowdown in growth may have bottomed out in the first quarter. HSBC’s China purchasing managers index _ a seasonally adjusted index designed to measure the performance of the manufacturing economy _ rose to 49.1 in April, up from 48.3 in March.

Still, any reading below 50 indicates a drop in production. The semisoft result kept traders hopes high for monetary easing by China to prop up growth. One possible option would be for the Chinese central bank to lower the ratio of reserves that banks are required to hold, a move that could boost lending.

“There is no reason to aggressively ease policy, but at the same time, it seems momentum is weaker and some fine-tuning would be useful,” said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong.

“I think we have to wait for whether China eases policy in the near term. That will be the key determinant of market sentiment, so let’s hope they do.”

U.S. stocks rose Friday on the back of stronger profits from Microsoft, McDonald’s and other major U.S. corporations. Later Monday, ConocoPhillips, toy maker Hasbro Inc. and Netflix Inc. will report quarterly financial results.

In energy trading, benchmark oil for June delivery was down 68 cents to $103.20 a barrel 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 $1.3154 from $1.3215 late Friday in New York. The dollar fell to 81.08 yen from 81.58 yen.

Source

March 2, 2012

Wealthy would cash in under Romney tax plan

Filed under: Homebuilder, economics — Tags: , , , — Moon @ 10:32 pm

Mitt Romney’s new tax plan would mean lower taxes for most Americans. But some would benefit more than others.

According to a new analysis from the Tax Policy Center, wealthy Americans would see their taxes fall precipitously under Mitt Romney’s new plan — which scraps the Alternative Minimum Tax and cuts marginal tax rates by 20%.

Assuming the Bush tax cuts are extended, the Romney plan would give the top 1% of earners an average tax cut of $150,000, a 7.8% reduction in their average federal tax rate, according to the Tax Policy Center.

Americans in the middle 20% of income-earners would get an average tax cut of $810, a 1.4% tax rate reduction.

Those making $1 million or more would receive an average tax cut of $250,000, an 8.1% tax rate reduction, while the average American would get $2,800, a 3.5% rate drop.

The plan would also add to the deficit — $480 billion in calendar year 2015 alone, according to the study.

For its part, the Romney campaign disputes any claim that his plan would add to the deficit. The cuts "will be fully paid for through a combination of economic growth, base broadening and spending restraint," campaign spokeswoman Andrea Saul told CNNMoney on Wednesday.

But the campaign has not spelled out which tax cuts it wants to kill, making it difficult to score.

Taxing the rich is not enough

"Romney seems to be trying to walk a fine line between responsible fiscal policy and pandering to his base," Howard Gleckman, a resident fellow at the Urban Institute, wrote in a blog post savings account payday advance. "But by not identifying how he’d pay for his generous tax cuts, his tightrope is getting pretty wobbly."

The campaign has also said the tax cuts will spur growth that will, in turn, create additional revenue for the federal government. The TPC analysis does not take that growth into account.

The updated plan reiterates other proposals that were first laid out in September, including provisions that would eliminate taxes on interest, dividends and capital gains for taxpayers who make less than $200,000.

It also calls for the elimination of the estate tax, and a reduction in the tax rate paid by corporations from 35% to 25%.

The candidate’s initial economic plan — released in September — was billed by the Romney campaign as "the most detailed plan for economic growth and job creation of any presidential candidate."

But it would only "maintain current tax rates on personal income" as president before moving to a "fairer, flatter, simpler tax structure" in the future.

That plan fell flat with some influential conservatives, including the Wall Street Journal editorial board, which labeled the proposals "surprisingly timid and tactical."

The Tax Foundation, a think tank that generally advocates for lower tax rates, said that Romney’s initial plan for the individual code "really takes no step toward fundamental reform." 

Source

February 15, 2012

Hispanic business group in St. Louis has joyful growing pains

Filed under: Homebuilder, business — Tags: , , , — Moon @ 5:32 pm

ST. LOUIS • Not as well-known and certainly not as big as A-B InBev and Monsanto, Gonzalez Cos. is tucked between the two other businesses on a list of top sponsors of the Hispanic Chamber of Commerce of Metropolitan St. Louis.

Sure, says company founder Anthony Gonzalez-Angel, the $10,000 a year his construction management firm pays to be a member helps promote his business. But he could do that with a lesser level of giving, or in different ways.

Gonzalez-Angel says he wants the chamber to have the tools it needs to continue its transition from more of a social entity to an agency that helps build and promote Hispanic businesses — and one that works to bridge the gap between small companies and large corporations.

“Economic empowerment leads to social empowerment,” Gonzalez-Angel said.

The chamber, around for three decades, has in the last few years raised its profile significantly. It has seen a surge in membership, made plans to buy its rented office space, scheduled a large-scale job fair for next month and has launched its first Latino Leadership Institute, supported by the chamber’s largest sponsor, Centene Corp.

Increasingly, larger and larger corporations are plunking down $5,000 to $25,000 to be bronze, silver, diamond and platinum-level members of the chamber.

But Karlos Ramirez, executive director of the Hispanic Chamber, said the organization is not forsaking the small storefront businesses that pay $150 a year to join.

“The majority of our members remain small businesses,” said Ramirez, who last worked as director of the university center and conference services at St. Mary’s University in San Antonio.

Partly in response to those smaller members, the growing chamber also is putting together its first restaurant guide, helping answer a common question: “Where do I go for good Mexican food?”

While becoming a resource for the region as well as its visitors, the guide also will give small businesses with small budgets a way to get their restaurants recognized. The guide will extend beyond Mexican to all Hispanic restaurants.

Gonzalez-Angel says he is pleased with the direction the chamber is headed and thinks its efforts can change the St. Louis business environment, which he describes as still “very black and white. Hispanics are the minorities of minorities.”

RAPID GROWTH

Hispanics continue to be the fastest-growing minority group in the region, but their numbers remain small. Of the 2.2 million people living in the region’s four largest counties and the city of St. Louis, 2.8 percent of them are Hispanic, according to the Census Bureau.

Gonzalez-Angel, whose Brentwood-based firm has 40 employees, says the chamber helps make the business community more aware of companies that are run by Hispanics as well as those that hire them.

“It’s critically important to St. Louis to have diversity,” Gonzalez-Angel said. “In the last four or five years, there have been changes. But there is resistance to change.”

The chamber has seen its membership grow by 80 percent in two years to 188. About half are Hispanic-owned companies, a balance Ramirez said the chamber would push to keep. Twelve of the 15 board of directors are Hispanic.

Ramirez said having full-time paid staff on board to promote the chamber and increasing the ways it gets involved in the community are among the reasons behind the growth.

Although 30 years old, the chamber did not have an executive director until 2010. A year ago this month, Ramirez became the second. There also are two other staff members, including an assistant director hired since Ramirez came on board. The annual budget is just over $200,000.

In late 2009, the chamber moved into nearly 3,200 square feet of office space in the old South Side National Bank on South Grand Boulevard, not far from Cherokee Street, the unofficial Hispanic neighborhood of St cash advances pay day loan. Louis. Earlier chamber locations included a small office on the University of Missouri-St. Louis campus, and the basement of a bank on Gravois Avenue, about a block from the current offices.

The chamber has just begun a $300,000 capital campaign to buy the office space.

“It shows that we have a home, a set place,” Ramirez said, “and that we are a committed part of the community.”

The chamber received a $500,000 federal grant to lease the space as well as the build-out and furniture.

GROOMING LEADERS

John Sondag, president of AT&T Missouri, said the chamber is making moves that position it to be more influential in the region’s business world.

Sondag was one of several corporate executives asked about a decade ago to sit on a chamber advisory committee. The chamber wanted to better tap into corporate St. Louis and better define its role, Sondag said.

“Up until then, it was more of a social club,” Sondag said. “Members would join but do more socializing rather than traditional chamber work to develop businesses. It’s important for us as a business to help other businesses grow. If the communities we serve grow, we all prosper and benefit.”

A grant from AT&T in 2009 was used to buy 30 computers for the chamber’s technology center. The chamber’s board president, Emma Espinoza, is an AT&T manager. And the company is sending one of its customer service representatives through the chamber’s Latino Leadership Institute, a nine-month professional development program which began in October with 11 applicants.

Ramirez hopes the institute becomes a staple of the programming and training offered through the chamber. The goal is to groom young Latinos early in their careers to better navigate the corporate world and become community leaders.

“Ten years from now, think about the difference that would make in St. Louis,” Ramirez said.

Longtime chamber board member Michael Zambrana said corporate involvement with the chamber is about more than offering experience, money and other resources.

“There is a more fundamental reason and that is for recruiting purposes,” said Zambrana, president and CEO of Pangea Inc., a construction and environmental services firm. “A lot of these companies do international business. They are looking for a connection to bring culture into their companies. It’s required in the international marketplace.”

CREATING VALUE

Ramirez said joining is appealing because it allows members to “tap into the workforce and the Hispanic buying power” and “helps companies with their diversity initiatives. Value means different things to different people.”

At La Vallesana, a Mexican restaurant on Cherokee Street, owner Hilario Vargas says the chamber has been a supportive partner in promoting the expansion of his business. The chamber held a ribbon-cutting to coincide with the September opening of the new addition. Two more expansions, including enlarging the dining room and adding a courtyard, are expected to be completed by summer. The dining guide will be an easy way to update the restaurant’s progress, Vargas said.

“They helped get the word out that we are no longer a little taco stand and now we’ve grown,” Vargas said of the chamber, with translation help from a manager.

The job and business fair next month at a downtown hotel is expected to have at least 60 vendors. Ramirez said it will be the largest hiring event held yet by the chamber, and one that he wants to grow each year.

“I genuinely believe diversity is valued in this region,” Ramirez said.

Source

February 12, 2012

Starbucks bets big on brand strength in tea-drinking India

Filed under: Homebuilder, loans — Tags: , , , — Moon @ 9:52 am

Coffee chain joins with giant Tata group in $80M courtship of India

January 28, 2012

Fed will do its part to aid U.S. recovery, Dudley says

Filed under: Homebuilder, money — Tags: , , , — Moon @ 8:00 pm

Much work remains to maximize U.S. employment and stabilize prices, and the central bank will do its part, an influential Federal Reserve official said on Friday.

The pace of the U.S. economic recovery remains “sluggish” and is likely to slow somewhat this year, said New York Fed President William Dudley. Unemployment is likely to remain “unacceptably high” for some time, he added, while inflation is likely to be below the Fed’s new 2-percent objective for several years.

“Clearly, much work remains to achieve the Fed’s dual mandate of maximum sustainable employment in the context of price stability,” Dudley told reporters in a regular briefing.

The Fed, which has kept interest rates near zero for more than three years, “has done and will continue to do its part in supporting the recovery - but it is not all-powerful,” he added.

“Other complementary policy actions in housing, fiscal policy and structural adjustment or rebalancing of the economy will be essential if we are to achieve the best available recovery.”

Aside from the low rates, the Fed has also bought $2.3 trillion in long-term securities in an unprecedented drive to spur growth and revive the economy after the worst recession in decades. Yet the recovery has been slow and the outlook issued by the Fed this week was bleak, leading the central bank to say it expects to keep rates “exceptionally low” at least through late 2014.

Dudley, a permanent voter on the Fed’s policy-setting committee, added that he expects “moderate” growth this year, and warned the risks are skewed to the downside in part because of Europe’s debt crisis business cards design.

The economy continues to operate with “significant excess slack,” he said, adding: “Inflation has retreated and may be headed down further.”

On Wednesday, Chairman Ben Bernanke said the Fed stood ready to offer more stimulus in the form of bond purchases if inflation remains below 2 percent - a formal target unveiled earlier that day - and if unemployment, now at 8.5 percent, remains high.

The speech by Dudley, a policy dove focused on driving down the high jobless numbers, could add confidence to those who, since the Wednesday meeting, see another round of asset purchases - including mortgage-backed securities - as all but inevitable.

Still, the slow overall recovery has cast some doubt on the U.S. central bank’s far-reaching strategy, with some, including congressional Republicans, warning that the massive quantitative easing efforts over the last few years could crimp the Fed’s ability to tighten policy when the time comes.

The Fed’s ultra easy monetary policy stance, to nurse the recovery, got some support from data on Friday showing U.S. gross domestic product expanded at a 2.8 percent annual rate in the fourth quarter of 2011.

It was a sharp acceleration from the 1.8 percent clip of the prior three months and the quickest pace since the second quarter of 2010. But it was a touch below economist expectations in a Reuters poll for a 3-percent rate, and nearly 2 percentage points were attributed to the build-up in business inventories.

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January 23, 2012

India

Filed under: Homebuilder, payday — Tags: , , , — Moon @ 10:00 pm

India

January 9, 2012

Former Gov. Matt Blunt takes on new role

Filed under: Homebuilder, term — Tags: , , , — Moon @ 8:12 am

WASHINGTON • If timing is everything, as the saying goes, then Matt Blunt might consider a job giving advice on when to make career changes.

Blunt picked 2004 as the year to run for governor of Missouri. It turned into a strong year for Republicans and, at age 33, he became America’s youngest governor.

In his new incarnation, Blunt last year became chief spokesman and a lobbyist in Washington for Detroit’s Big Three automakers just as the American automotive industry was enjoying a resurgence.

It is one of several positions Blunt holds these days that enable him to prove life after Missouri’s Governor’s Mansion can be rewarding and, he says, enjoyable.

As president of the American Automotive Policy Council, one of Blunt’s main tasks is reminding Congress of his industry’s recent success, a rare good news story about American manufacturing.

Two years after General Motors and Chrysler emerged from bankruptcy, both companies, along with Ford, reported profits and increasing sales in 2011. Their turnaround is hailed in reports such as a recent Time magazine cover story titled, “How America Started Selling Cars Again.”

Yet many Americans — some of them in Congress — see the automotive industry as bloated and inefficient, surviving on government bailouts.

“What some people believe about automobile manufacturers, the American-based companies, isn’t accurate,” Blunt said. “The companies today are fundamentally different than they were just a few years ago, in terms of what they make and how they make it.”

Blunt’s portfolio these days includes the vital matters affecting American carmakers, including global trade agreements, new fuel economy standards and a recent recommendation to ban texting and cellphone use in automobiles.

Blunt, who turned 41 in November, is leading a life different from his sometimes rocky four years as a young governor, in which he endured criticism for his cuts to Medicaid and low approval ratings at times.

After leaving office in January 2009, he moved swiftly into the world of business. Besides his Big Three job, he is a director for Copart Inc., an online auto auction company in California that claims to sell 1 million vehicles yearly. He is a senior adviser for Rubicon Global, an Atlanta-based waste management firm, and an advisory board member for private equity funds.

Rather than living in Jefferson City or Springfield, Blunt, his wife, Melanie, and sons Branch, 6, and Brooks, who turned 2 on New Year’s Day, reside now in Middleburg, Va., situated in rolling horse country that has been home to such notables as Jacqueline Kennedy Onassis and Elizabeth Taylor.

Blunt says he is comfortable in a part of the country where he has spent considerable time. He graduated from the Naval Academy in nearby Annapolis, Md., and he was stationed on a Virginia-based ship. His wife is a Virginia native.

In recent interviews, Blunt, whose father, Roy, just completed his first year in the U.S. Senate, said he has no regrets in deciding not to seek a second term.

“I loved being governor. It was a great experience. I was proud of what we accomplished,” he said. “But I don’t know that over another four-year term, I would have been particularly effective. I don’t know there’s much that I would have gotten done.”

He added, “I don’t necessarily miss politics.”

understanding autos

Blunt is dealing now with politics of a different order, in some cases global. He was outspoken last fall in pressing to keep Japan out of the budding Trans-Pacific Partnership free trade alliance, noting Japan’s protectionist policies that keep out all but a few thousand American cars yearly.

Trade is a key focus for Blunt but just one of many focuses for an industry that experts say needs help.

Joe Wiesenfelder, executive editor of Chicago-based Cars.com, said he sees “a gross misunderstanding in Washington about developing and building cars and how long it takes, about the inconsistency of the market and about inconsistency of regulation and the effects on companies.”

Until two years ago, Ford, Chrysler and GM were aligned in Washington with the Auto Alliance, which also includes foreign automakers. But the interests of domestic and foreign companies diverged just as legislation and government rules were becoming more consequential.

Blunt’s background as a governor likely played a role in his selection as the industry sought to navigate tricky political waters in Congress after the controversial bailouts No teletrak payday loan.

Blunt technically is not a registered federal lobbyist because he spends less than 20 percent of his time lobbying. Nevertheless, he works the halls of Congress, trumpeting the key role of the Big Three in the nation’s economy. GM, Ford and Chrysler will add 34,000 jobs in coming years, he said, which translates to 400,000 jobs in the economy supported by automotive plants.

“The American companies are competitive, they are productive and they are making great products,” Blunt said, sounding like the car salesman he has become. “Because of that, what recovery we do have in the American economy, the automobile makers are playing a big part.”

As a self-described conservative Republican, Blunt might find old allies who decry the $80 billion bailout of Chrysler and GM. Most of the money has been paid back, and the White House projected the cost to taxpayers at $14 billion.

“Decisions that President Bush made at the end of his administration and President Obama made early in his administration have had a successful outcome,” he said. “It’s always an academic debate whether a different road map would have led to the success.”

As governor, Blunt was an advocate of smaller government. Those sensibilities could come into play as government moves more aggressively to dictate vehicle design.

After an agreement with both domestic and foreign manufacturers, the administration of President Barack Obama in November proposed nearly doubling fuel economy requirements to 54.5 miles per gallon by 2025. In 2010, the administration completed rules to raise the fuel standard to 35.5 mpg by 2016. The current requirement for new autos is 27.3 mpg.

Foreign-based manufacturers believe the White House has tilted the rules in favor of the domestic industry. True or not, the Big Three will need to be vigilant as regulations are implemented; their focus will be on easing the burden those regulations could cause.

“It’s the classic ‘devil’s in the details,’ and it will be very important to see the rules filed by all the agencies,” Blunt said.

Texting debated

Automakers took notice recently when the National Transportation Safety Board said states should ban texting and cellphone use in vehicles. The board made the recommendation after concluding that a driver’s texting was a factor in a deadly pileup near St. Louis.

Blunt said companies he represents are paying close attention because “they really do believe that you can integrate technology into a vehicle that’s not only safe but safer than the way most drivers use technology today.”

“As you think about what you might or might not ban in a vehicle, it’s important to do it in a way that wouldn’t inhibit safety ideas some of the companies have today, and at the same time be realistic,” he said. “Quite frankly, I don’t think (a cellphone ban is) very realistic.”

As a lobbyist, Blunt seemingly could have a ready ear from father Roy, who won election this month to a Senate GOP leadership slot. Matt Blunt said he doesn’t intend to talk business at family gatherings, perhaps because Roy Blunt has in the past been criticized for ties to lobbyists in his family and otherwise.

Matt’s brother, Andy Blunt, works at a law firm in Jefferson City with a long list of lobbying clients. His sister, Amy, maintains some lobbying clients in her business in the state capital, which largely deals with helping candidates comply with Federal Election Commission rules. Roy Blunt’s wife, Abigail, was a lobbyist for tobacco giant Philip Morris before joining Kraft’s legislative affairs team.

Andy Blunt said his brother arrived in a position that suits his talents.

“He’s a great manager and executive and has the ability to focus on details while thinking about long-term strategy,” he said.

Blunt, who acknowledged driving a German-made automobile in the past, also is walking the talk now — driving it, actually.

He gets around Washington in a Chrysler-made Jeep Grand Cherokee.

Source

January 6, 2012

Euro slides to 15-month low as investors fret over Europe

Filed under: Homebuilder, caredit — Tags: , , , — Moon @ 3:00 am

LONDON

December 10, 2011

U.S. trade deficit hits lowest point of the year

Filed under: Homebuilder, news — Tags: , , , — Moon @ 7:08 am

WASHINGTON

September 16, 2011

London police say UBS trader charged with fraud

Filed under: Homebuilder, finance — Tags: , , , — Moon @ 6:08 pm

An alleged renegade trader accused of losing Swiss banking giant UBS about $2 billion in unauthorized trading was charged Friday with fraud and false accounting, and ordered to appear before a London court.

City of London police said that 31-year-old Kweku Adoboli would appear at a magistrates’ court in the British capital on Friday.

“He remains in police custody and is due to appear at City of London Magistrates this afternoon,” the police department said in a statement. It said an investigation involving financial regulator the Financial Services Authority, the Serious Fraud Office and the Crown Prosecution Service was continuing.

Law firm Kingsley Napley, which represented Nick Leeson _ the trader who brought down British bank Barings in 1995 after he made around $1.4 billion of losses in unauthorized trades _ said that it had been hired to represent Adoboli.

In Switzerland, UBS faced pressure to explain how its managers failed to catch the $2 billion loss, and how monitoring systems had been unable to flag up the alleged unauthorized trades.

Adoboli, born in Ghana, has been employed by UBS on an equities desk known as Delta One and worked with exchange-traded funds _ which track different types of stocks or commodities, such as precious metals no checking account payday advance.

Some commentators and politicians called for senior managers at UBS to take responsibility for the loss.

“Until UBS has explained in detail how such a significant loss due to unauthorized trading could happen, and how the problem will be solved, confidence will remain impaired,” said Andreas Venditti, an analyst at Zuercher Kantonalbank.

The international banking industry has been trying to implement stricter controls on traders in the wake of a 2008 scandal at France’s Societe Generale, when trader Jerome Kerviel gambled away euro4.9 billion ($6.7 billion), and the infamous Leeson case.

UBS stock on Friday recovered some of the losses suffered the day before. Investors took the chance to buy the shares cheaply, sending their price up 3.3 percent to 10.07 Swiss francs ($11.52) on the Zurich exchange by early afternoon. Shares had slumped 10 percent the day before, after the bank said a lone employee had caused the massive loss.

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