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January 12, 2012

Retail sales post weakest reading in 7 months

Filed under: news, online — Tags: , , , — Moon @ 2:44 pm

Retail sales rose at the weakest pace in seven months in December as consumers pulled back late in the holiday shopping season, cutting purchases at department stores and spending less on electronic gadgets.

Total retail sales increased 0.1 percent after rising by an upwardly revised 0.4 percent in November, the Commerce Department said on Thursday.

Economists polled by Reuters had forecast retail sales climbing 0.3 percent last month.

The upward revision for November sales suggests consumers likely frontloaded their holiday shopping. The government had initially estimated retail sales gained 0.2 percent in November.

Spending at electronics and appliance stores fell 3.9 percent in December, while shopping at department stores slipped 0.2 percent.

Fueling the overall increase in retail sales during December, receipts for motor vehicles and parts increased 1 Internet Payday loans.5 percent, adding to the prior month’s 0.9 percent gain.

Excluding autos, retail sales fell 0.2 percent, the first decline since May 2010.

Sales at food and beverage stores fell 0.2 percent in December. Also holding back the overall gain in sales, receipts at gasoline stations dropped 1.6 percent last month after rising 0.9 percent in November.

Core retail sales, which exclude autos, gasoline and building materials, dropped 0.1 percent in December after advancing 0.3 percent the prior month.

Core sales correspond most closely with the consumer spending component of the government’s gross domestic product report.

Read more

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

January 5, 2012

Asia stocks mixed after flat Wall Street trading

Filed under: caredit, finance — Tags: , , , — Moon @ 5:12 am

Asian stock markets were mixed early Thursday, following flat trading on Wall Street as renewed worries over Europe’s banking system and a strong yen weighed on investor sentiment.

Japan’s Nikkei 225 index fell 0.5 percent to 8,514.03, while South Korea’s Kospi index gained 0.2 percent to 1,870.96. Hong Kong’s Hang Seng Index rose 0.3 percent to 18,787.21. Australia’s S&P ASX 200 fell 1.2 percent at 4,139.70.

Benchmarks in Singapore and Taiwan were higher while those in Malaysia and New Zealand were lower.

In Tokyo, the yen’s rise against the euro elicited fears of more pain ahead for Japanese exporters. The euro sank to 98.71 yen on Monday in European trading, which Japan’s Kyodo News said was an 11-year low. The euro remained under selling pressure as it hovered around 99.72 yen Thursday.

On Wednesday, European markets declined after another increase in Italy’s borrowing costs renewed worries about the continent’s efforts to restore confidence in its debt-hobbled governments. Additionally, UniCredit _ Italy’s biggest bank _ said it would offer stock at a 69 percent discount to raise cash guaranteed unsecured personal loan. The size of the discount escalated worries about the state of Europe’s banking sector.

Stocks barely budged in the U.S. The Dow Jones industrial average edged up 0.2 percent to close at 12,418.42. The Dow opened the year Tuesday with a 180-point gain that brought it to its highest level since July.

The Standard & Poor’s 500 index inched up less than 0.1 percent to close at 1,277.30. The Nasdaq fell marginally to 2,648.36.

Benchmark oil for February delivery fell 35 cents to $102.87 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 26 cents to end at $103.22 per barrel on the Nymex on Wednesday.

In currencies, the euro fell to $1.2930 from $1.2938 late Wednesday in New York. The dollar slipped to 76.72 yen from 76.75 yen.

Source

January 3, 2012

India, China Manufacturing Shows Resilience - Bloomberg

Filed under: management, payday — Tags: , , , — Moon @ 4:44 am

Manufacturing in India and China improved in December, a sign the world

January 1, 2012

Treasuries Return Most Since 2008 - Bloomberg

Filed under: USA, money — Tags: , , , — Moon @ 5:28 am

Treasuries (YCGT0025) had the biggest annual return since the depths of the financial crisis in 2008 as Europe

December 30, 2011

Australia Home Prices Drop 3.7% on Concern Europe Crisis May Damp Growth - Bloomberg

Filed under: loans, marketing — Tags: , , , — Moon @ 1:16 pm

Home prices in Australia

December 27, 2011

Don’t know what to do with that gift card? Sell it!

Filed under: business, caredit — Tags: , , , — Moon @ 3:32 am

We want gift cards and like to give them, but for some reason we don’t always use them and wind up wasting billions of dollars.

A recent poll by Consumer Reports, for instance, found that one-quarter of people who received a card as a holiday gift last year still haven’t used it, and more than half of those had two or more unredeemed cards.

We have lots of excuses. We forgot about the card or lost it. The store didn’t have any merchandise we wanted. Or the retailer isn’t nearby, or we don’t like the store.

This has spawned an online secondary market where gift card exchange sites, such as PlasticJungle.com, Cardpool.com, MonsterGiftCard.com and GiftCardRescue.com, help consumers buy and sell unwanted retail gift cards at a discount. Sellers can get around 70 percent to 90 percent of the value of their cards. The more popular the retailer, the higher the price.

“It at least gives consumers the option to get something for an unused gift card,” said Tod Marks, senior editor at Consumer Reports. “It’s like life support for unwanted gift cards.”

Of course, one way to avoid unwanted or forgotten cards is by giving cash or checks instead. It’s unlikely that someone will fail to spend money that’s in their wallet or deposited in the bank. Another benefit: Shoppers tend to spend more at a store than the amount on the gift card. Not so with cash.

But card experts and consumer advocates cringe at my suggestion of cash, saying bills are “gauche.” At least a gift card to a favorite retailer, they say, makes it seem as if you gave some thought to what the recipient would want.

And besides, some say, people want gift cards. They are the No. 1 requested gift this season and are at the top of most shopping lists, according to the National Retail Federation.

Gift card sales are expected to reach a record $100 billion this year, up nearly 10 percent from the year before, according to TowerGroup, a research and advisory firm. About $2 billion of that, though, will be lost through fees and expired, stolen or misplaced cards.

The losses were much worse before federal protections kicked in last year that, among other things, prevent cards from expiring within the first five years.

Still, $2 billion is a lot of money to leave on the table. And if we don’t use it, somebody else will.

Some retailers recognize unredeemed cards as income after a long period of inactivity. Starbucks Corp., for example, reported $46.9 million in income from unredeemed cards for the year ended in October.

And more than a dozen states now recover funds on unredeemed cards, similar to other unclaimed property, said Brian Riley, senior research director at TowerGroup.

So if you are going to give a gift card, make sure it’s from a retailer that the recipient patronizes. Or if you’re not sure, consider a general-purpose gift card that can be used at any store, although you’ll pay a fee to buy the card. American Express, for instance, offers such cards for a $3.95 fee.

And if you’re stuck after the holidays with cards you don’t want, here’s some advice for getting rid of them:

DON’T SPEND, INVEST • The most innovative use of unwanted gift cards this season goes to GoalMine, which caters to small investors by helping them set goals and begin investing for as little as $25.

Between Dec. 19 and the end of January, GoalMine is accepting unwanted gift cards with values of $25 and up that will be sold at PlasticJungle.com, a card exchange site. Consumers decide whether to deposit the proceeds in an FDIC-insured savings account or in a stock or bond mutual fund.

As a further incentive, GoalMine promises to redeem the first card for 150 percent of its value. The card can’t be worth more than $50.

GoalMine’s general manager, Rimmy Malhorta, said the company figured there were a lot of unredeemed cards that could be put to good use. “Wouldn’t it be great instead of letting Starbucks have that money or iTunes or whoever,” he said, “you could make that money for you and put it toward your kid’s college education, your family home or a rainy day fund?”

GIFT CARD EXCHANGES • These middleman websites for consumers wanting to buy, sell or swap cards have been growing. PlasticJungle, one of the major players, bought and sold cards worth about $18 million last year, three times the amount of the year before, said Chief Executive Bruce Bower. “We are having similar growth right now,” he added.

Sites deal in gift cards from hundreds of national retailers, so you likely won’t be able to sell a gift card from a local shop. Cards usually must have a value of $20 or $25 still on them.

Sellers send their cards to the exchange, which verifies the value. They can get as much as 92 percent of the value of the card, but that’s for the hottest retailers.

Buyers can pick up cards at a discount of up to 35 percent, although the saving is much less on popular cards.

Some sites offer a money-back guarantee if a card’s value turns out to be less than promised. That’s a big advantage over trying to sell a card on your own through Craigslist.

If you’re going to buy or sell on one of the exchange sites, check out more than one. CardHub.com has a gift card exchange feature that aggregates card deals from various sites.

Consumer Reports’ Marks, who researched gift card exchanges earlier this year, says no single site gave the best deal every time.

“The sites often had a different idea of the worth of the same card,” he added. The gap between the best and worst offers for a popular Whole Foods card, Marks said, was 22 percent.

Before buying or selling, read the terms, which also can vary among the sites. And buyers should make sure the site guarantees the cards it sells.

Also, buyers should beware of cards with a value that’s an odd number — say, $63.45 — which could signal that the card was given to a customer as a refund on a purchase, said TowerGroup’s Riley. Refund cards, he said, don’t have the same legal protections as gift cards.

If in doubt, he said, ask the site whether the card is from a refund.

Many of the gift card complaints to Maryland’s attorney general deal with the merchant going out of business. When that happens, card owners generally stand in line with all the other creditors and may get little or nothing. Try to avoid this by buying cards from healthy retailers.

You also can set up an account with ScripSmart.com, which sends out email alerts if a retailer appears headed for bankruptcy. ScripSmart also offers a “nag me” alert to remind you to use your gift card.

Source

December 18, 2011

Tips on old credit cards, other financial questions

Filed under: economics, payday — Tags: , , , — Moon @ 11:14 am

Let’s hear from readers today:

My husband and I have a couple of credit cards we never use. However, we have read that one shouldn’t cancel credit cards because it has a bad effect on credit score. We might refinance our house. Should we cancel these cards?

December 16, 2011

Italian govt wins confidence vote on austerity

Filed under: legal, news — Tags: , , , — Moon @ 7:32 pm

The Italian government has won a confidence vote over its package of anti-crisis austerity measures in the lower chamber of Parliament.

Premier Mario Monti called the vote, held Friday in the Chamber of Deputies, to speed passage of the measures he says are vital to save Italy from financial disaster. The package was approved by a vote of 495 in favor and 88 against. The Senate is expected to vote on the measures in the next few days.

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

ROME (AP) _ The Italian government faces a confidence vote over a package of austerity measures while a transport strike to protest the cuts is causing havoc for commuters across the country.

Premier Mario Monti is putting his package of new and higher taxes and pension reforms to a confidence vote in the lower Chamber of Deputies to speed up its passage cash advance payday loan.

The vote, which is expected by early evening Friday, will likely clear the measures, paving the way for final approval in the Senate within days.

The main political parties have said they would back the package despite disagreeing on some measures.

Monti says austerity is needed to save Italy from financial disaster, but unions are furious. Public transport workers idled buses and subways Friday. State railways were also on strike.

Source

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