Lenon’s main business news

March 20, 2012

Bernanke Returns to Academic Roots to Justify Fed

Filed under: finance, uk — Tags: , , , — Moon @ 6:44 pm

Federal Reserve Chairman Ben S. Bernanke returns to his roots as a university professor today, seeking to explain and justify the existence of the central bank ahead of the 100th anniversary of its founding next year.

Bernanke will lecture to about 30 undergraduate students at George Washington University in the first of four hour-long talks on the history of the Fed as part of what public relations specialist Richard Dukas called a

March 19, 2012

Osborne Seeks to End 50% Tax Spat With Pledge to Aid U.K. Poor - Bloomberg

Filed under: USA, caredit — Tags: , , , — Moon @ 2:32 am

Chancellor of the Exchequer George Osborne sought to calm speculation over whether he will scrap Britain

March 15, 2012

Oil drops on reports UK, US to release reserves

Filed under: business, news — Tags: , , , — Moon @ 8:40 pm

Oil prices are falling on reports that Britain and the United States will release oil from government-controlled emergency reserves.

News organizations reported Thursday that the two countries will try to knock down oil prices by releasing spare supply on the market. High oil prices have helped push gasoline in the U.S. to the highest price ever for this time of year, $3.82 per gallon. Experts predict the national average could reach as high as $4.25 per gallon by late next month.

The U.S. released oil from its Strategic Petroleum Reserve in August with only limited success. Prices dipped for just a few days.

Benchmark crude gave up $1.28 to $104.25 per barrel in New York while Brent crude dropped by $2.17 to $122.37 per barrel in London.

Source

March 12, 2012

Feds investigate Ford Tauruses for stuck throttles

Filed under: marketing, uk — Tags: , , , — Moon @ 3:24 pm

Federal safety regulators are investigating complaints of throttles sticking in some Ford Tauruses.

The National Highway Traffic Safety Administration said on its website that 14 people have complained about the cars from the 2005 and 2006 model years, about 360,000 in all. No crashes or injuries have been reported, but the agency says a driver ran a red light and entered an intersection before the car could be stopped.

The agency says the cruise control cable may become detached and hold the throttle open guaranteed cash advance. Drivers have reported that it was hard to stop the car with the brakes, and several said they had to shut off the engine or shift into neutral to stop.

Ford says it is cooperating in the probe. The cars have not been recalled.

Source

March 10, 2012

ETFs that win by not losing

Filed under: Uncategorized, finance — Tags: , , , — Moon @ 11:52 pm

Good fund performance isn

March 4, 2012

‘How we’re losing our multi-million dollar home’

Filed under: management, uk — Tags: , , , — Moon @ 1:20 pm

Like millions of Americans, Joanne and John Buchanan are facing foreclosure. But at a value of more than $2 million, the home they stand to lose isn’t your average delinquency.

For the Buchanans, it’s the dream house they built from the ground up in a resort community near Breckenridge, Colo., in 2003. It took them almost two years and about $2.2 million to build — and soon they will have to move out.

Foreclosure Fiasco

‘How we’re losing our multi-million dollar home’ Foreclosures made up one in four home sales Uncle Sam wants you to rent out its foreclosed homes Why the mortgage settlement is a fair deal Million-dollar foreclosures rise as rich walk away

For years, homeowners at the high end of the housing market were able to postpone the foreclosure process, but now multi-million dollar homes are becoming more commonplace in America’s foreclosure pipeline. In fact, America’s wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country, according to RealtyTrac.

Out of all foreclosure activity, the share of foreclosures on multi-million dollar properties — or homes valued at more than $2 million — has jumped by 273% since 2007.

For the Buchanans, losing the six-bedroom estate they helped design was unimaginable at one time, but now it seems unavoidable.

The couple moved to Colorado from California where John had worked as the director of business development at a high-tech Silicon Valley firm. They came seeking a less stressful life. John took a buyout package and the couple opened two wine and tapas restaurants, using their new dream home as collateral.

See inside the Buchanan’s $2 million dream home

Things went well, for a while. "In 2008, we were hit up here with the slowdown as much as anybody," John said. But "we were on the wrong end of the market," he said. High-end restaurants like theirs were quickly without customers.

John was forced to shutter the restaurants in a Chapter 7 bankruptcy filing.

Meanwhile other expenses were also piling up, including the couple’s mortgage payment, which was more than $7,000 a month. They had gone to their lender, CitiMortgage, to ask them to modify the mortgage on their home, which was then valued at $3 million. But the bank refused.

Eventually, the Buchanans just stopped paying their mortgage. John said he hoped it would get the bank’s attention. It has been almost 30 months since they last made a payment, meaning the couple is more than $210,000 behind on their mortgage no teletrek payday advance.

Sean Kevelighan, a spokesman for Citi, said the bank could not comment on specific cases. "Our first priority is to keep families in their homes," he said.

Since 2007, Citi has helped more than 1 million homeowners avoid potential foreclosure, he noted. "Unfortunately, that is not always possible, and some cases proceed to foreclosure," said Kevelighan.

As part of the bankruptcy filing, the Buchanans have agreed to sell their home and hand over the remaining assets to the restaurant lender after Citi recoups the $1.7 million that it is still owed on the mortgage, according to John.

"We had a lot of our savings tied up in the house and we’ll end up losing all of that," he said.

If the house doesn’t sell soon, CitiMortgage will proceed with a foreclosure, which will further destroy the Buchanan’s already damaged credit. But selling is looking less and less like an option: The market for high-end properties in the resort community has largely dried up. The Buchanan’s house was first listed for $3.3 million in 2008. Now it’s listed for $2.3 million, and there have been very few interested buyers, according to Joan Moats, the listing agent on the property.

"Transactions dropped, sales volume is lower and prices are down 25% to 30% since 2008," Moats said. Houses over the $1 million mark, like the Buchanans’ property, are particularly hard to move, she said. "We’ve reduced it by over a $1 million now — we’re trying to get it sold but I’m racing against the bankruptcy and the foreclosure."

"There’s no traffic, there’s no market at this level. If we find a buyer they will have difficulty getting a loan," John added. "The foreclosure will happen soon."

8 multi-million dollar foreclosures

And things just may get worse before they get better. More than 36,000 homes valued at $1 million or more were foreclosed on — or at least served with a notice of default — last year. That number is likely to rise in 2012, according to Daren Blomquist, vice president of RealtyTrac.

"The longer the tough economy persists, the more of these high-end homeowners will eventually succumb to foreclosure," Blomquist said.

After the Buchanans lose their home, they plan to move into a small rental property they can afford. "We probably won’t be able to buy anything for a long, long time," John said.  

Source

February 28, 2012

Durable goods orders drop by most in 3 years

Filed under: legal, news — Tags: , , , — Moon @ 3:20 pm

Businesses slashed spending on machinery and equipment in January after a tax break expired, pushing orders for long-lasting manufacturing goods down by the largest amount in three years.

Orders for durable goods fell 4 percent last month, the Commerce Department said Tuesday.

A big reason for the decline was demand for so-called core capital goods, which are viewed as a good measure of business investment plans, tumbled 4.5 percent. That’s the biggest drop in a year.

Demand for core capital goods hit an all-time high in December. Companies rushed to take advantage of a tax break that expired at the end of last year.

A durable good is a product expected to last at least three years. They include everything from appliances and cars to heavy machinery and planes. Orders tend to fluctuate sharply from one month to the next. But the overall trend in orders has increased since the recession ended nearly three years ago.

In January, overall orders totaled $206.1 billion. That’s 38.6 above the low hit during the recession. Orders are still 16 percent below their peak hit in December 2007.

Even without that tax break, many analysts believe business investment will pick up and stay strong in 2012 as companies take advantage of stockpiles of cash to expand and modernize their production facilities payday loan lenders.

U.S. factories boosted output last month and December ended up being their best month of growth in five years. Strong auto sales and growing business investment in machinery and other equipment are keeping factories busy and helping the economy grow.

About 9 percent of the nation’s jobs are in manufacturing. But last year, factories added 13 percent of new jobs. And in January, about one-fifth of the 243,000 net jobs the economy created were in manufacturing.

The economy grew at an annual rate of 2.8 percent in the final three months of last year. Economists are looking for roughly the same level growth in the current quarter. And a forecasting panel of the National Association for Business Economics said Monday that the economy should grow 2.3 percent this year.

Source

February 27, 2012

Manufacturing in U.S. Probably Increased at Faster Pace to Lead Expansion - Bloomberg

Filed under: economics, finance — Tags: , , , — Moon @ 1:04 am

Manufacturing probably accelerated for a fourth straight month in February, consumer confidence improved and Americans picked up the pace of spending a month earlier, economists said reports this week will show.

The Institute for Supply Management

February 25, 2012

Al-Qaida claims deadly attacks on Iraqi cities

Filed under: Uncategorized, technology — Tags: , , , — Moon @ 10:04 am

Iraq’s al-Qaida branch has claimed responsibility for the wave of bombings and other attacks that killed dozens in Baghdad and across the country the day before.

The Islamic State of Iraq says it targeted security forces and government officials in “revenge for the elimination and torture campaigns that Sunni men and women face in the prisons of Baghdad and other cities.”

The daylong series of attacks in 12 cities across Iraq killed 55 and wounded 225 people. The al-Qaida claim was posted on militant websites late Thursday.

In the past two months since the American military pulled out of Iraq, al-Qaida and other Sunni militants have stepped up attacks on Shiites, raising concern of a new surge in sectarian violence.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

BAGHDAD (AP) _ Bombs and deadly shootings relentlessly pounded Iraqis on Thursday, killing at least 55 people and wounding more than 225 in a widespread wave of violence the government called a “frantic attempt” by insurgents to prove the country will never be stable.

Cars burned, school desks were bloodied, bandaged victims lay in hospitals and pools of blood were left with the wounded on floors of bombed businesses after the daylong series of attacks in 12 cities across Iraq.

The assault demonstrated how vulnerable the country remains two months after the American military left and put the onus for protecting the public solely in the hands of Iraqi forces.

“There was no reason for this bomb. A primary school is here, students came to study and people came to work,” Karim Abbas woefully said in the town of Musayyib, where he saw a car bomb parked near an elementary school kill three people and wound 73. Most of the injured in the town, located about 40 miles (60 kilometers) south of Baghdad, were schoolchildren.

Other Iraqis, fed up with the continued violence, furiously blamed security forces for letting it happen.

“We want to know: What were the thousands of policemen and soldiers in Baghdad doing today while the terrorists were roaming the city and spreading violence?” said Ahmed al-Tamimi, who was working at an Education Ministry office a block away from a restaurant bombed in the Shiite neighborhood of Kazimiyah in northern Baghdad.

He described a hellish scene of human flesh and pools of blood at the restaurant, where another car bomb killed nine people and wounded 19.

No group immediately claimed responsibility for the latest attacks, but car bombs are a hallmark of al-Qaida. The Iraqi Interior Ministry blamed al-Qaida insurgents for the violence.

“These attacks are part of frantic attempts by the terrorist groups to show that the security situation in Iraq will not ever be stable,” the ministry said in a statement. “These attacks are part of al-Qaida efforts to deliver a message to its supporters that al-Qaida is still operating inside Iraq, and it has the ability to launch strikes inside the capital or other cities and towns.”

Fifteen of the day’s 26 attacks targeted security forces on patrols, at checkpoints and around government and political offices. Six policemen were killed at their checkpoint in northern Baghdad in a pre-dawn drive-by shooting. A suicide bomber blew up his car in front of a police station in Baqouba, 35 miles (60 kilometers) northeast of Baghdad, killing two and wounding eight.

Such violence undermines the public’s confidence in the ability of their policemen and soldiers to protect everyday citizens, and discourages people from joining or helping the security forces.

All the casualties were reported by local police and hospital officials in the cities where the attacks took place. Most spoke on condition of anonymity because they were not authorized to release the information.

A statement by the Sunni-dominated Iraqiya political party, the main opposition bloc to the Shiite-led government, called on Prime Minister Nouri al-Maliki to accept full responsibility for protecting the public.

“If the government fails to do so, then it should resign and the parliament should choose a government capable of confronting the terrorists and impose security and stability in all over Iraq,” the statement said.

Even months before U.S. troops left, extremists launched large-scale attacks every few weeks. The violence now is nowhere as frequent as it was during the tit-for-tat sectarian fighting that almost pushed Iraq into civil war a few years ago. But the attacks appear to be more deadly than they were before American military’s withdrawal in late December.

Days after the American military left, a Dec. 22 wave of bombs targeting Shiites killed at least 69 people. That happened twice more over the following three weeks, killing 78 and 53, respectively. Al-Qaida was blamed for them all.

Until the U.S. troops left, the most sweeping attack of 2011 was in August in a multi-city bombing spree that killed 63.

The renewed potency of the violence points to a dangerous security gap that Iraqi forces have not yet solved without the help of the U.S. military: Gathering intelligence on militants plotting attacks.

Ongoing negotiations between the U.S. Embassy in Baghdad and the Iraqi government are addressing, in part, how to supply security forces with enough equipment and training to conduct surveillance and reconnaissance operations.

Turbulence in Iraq’s political system also has fueled sectarian tensions, but there’s no indication so far that it’s led to violence. The day after the U.S. withdrawal on Dec. 18, the Shiite-led government announced an arrest warrant against Iraq’s highest-ranking Sunni politician, Vice President Tariq al-Hashemi, on charges he commandeered death squads against security forces and government officials.

Al-Hashemi has denied the charges he calls politically motivated, and many Iraqis fear the case will bring the return of widespread sectarian violence. The U.S. Embassy in Baghdad alluded to that in a statement Thursday calling the terrorist attacks “heinous” acts that “tear at the fabric of Iraqi unity.” Parliament Speaker Osama al-Nujaifi condemned the attacks as an attempt “at igniting strife among Iraqi people.”

Yet in an encouraging sign that Iraq’s government is able to function, Parliament late Thursday approved the nation’s $100 billion operating budget for 2012.

Al-Nujaifi said Thursday’s blast likely sought to frighten diplomats from attending the Arab League’s annual summit, scheduled to be held in Baghdad in late March. The League meeting was canceled in Baghdad last year amid similar fears.

Douglas A. Ollivant, who oversaw Iraq policy at the National Security Council at the White House from 2008 to 2009, said that while security forces may not be able to stop al-Qaida, the violence has come nowhere close to pushing the nation back into war.

“Al-Qaida has been incredibly ineffective in its goal of renewing sectarian violence,” said Ollivant, now senior fellow at the New America Foundation in Washington. “Yes, Iraq has a terrorism problem and it needs to get better at dealing with it. But al-Qaida’s inability to get any traction on their larger strategy is demonstrating that the civil war in Iraq is decidedly over.”

But as the burning, charred cars that littered streets across the country showed Thursday, Iraq’s battle against terrorism and violence is far from over.

Source

February 23, 2012

Draghi: Greek compliance must be ‘flawless’

Filed under: money, payday — Tags: , , , — Moon @ 7:08 pm

The head of the European Central Bank said Greece’s compliance with its bailout agreement must be “flawless” for the financially struggling country to avoid worse trouble.

ECB head Mario Draghi said in an interview with the Frankfurter Allgemeine Zeitung that “the key to controlling risks lies with the implementation of the program, which has to be flawless.”

Greece has agreed to reduce wages, cut spending and make its economy more business-friendly in return for a second, euro130 billion ($173 billion) bailout from other eurozone countries and the International Monetary Fund.

The harsh cutbacks have drawn opposition in Greece, which is in a deep recession.

Draghi said it was crucial for any government to support the agreed program of reforms, even after elections that are expected in March.

Source

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