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August 31, 2011

Consumer confidence is down, not out

Filed under: Uncategorized, usa — Tags: , , , — Gladiator @ 7:52 am

Americans are depressed about their economic prospects but continue to spend their way through their latest downturn in sentiment, new consumer confidence data showed Tuesday.

The latest survey from the New York-based Conference Board, a business-research center, had its consumer confidence index plunging almost 15 points to 44.5 in August, down from 59.2 points in July. The steep drop reflected the lowest point in consumer confidence since April 2009, a month when the economy shed 539,000 jobs amid recession and financial crisis.

Blame fell on Washington’s political brinksmanship over the debt ceiling, which took the nation to the verge of a first-ever debt default.

As bad as Tuesday’s confidence number was, there was offsetting positive news in the broader report from the Conference Board, as well as in Monday’s Commerce Department report that consumer spending rose 0.8 percent in July, the best showing in five months.

“Digging deeper in the (Conference Board) report, we find that consumers’ buying attitudes do not reflect their confidence levels,” economists at Bank of America Merrill Lynch noted.

The number of consumers who indicated they would be purchasing automobiles in the next six months rose from 11.9 percent in July to 12.9 percent in August. And for the first time in nearly a year, more than 50 percent indicated that they would soon buy big appliances. Almost 47 percent of respondents planned to take vacations.

“We shouldn’t be seeing more consumers planning to take more vacations or purchase large items if they truly thought that another recession was on its way,” Bank of America Merrill Lynch’s report noted. “We think the drop in sentiment in August was a result of the dysfunction in Washington over raising the debt ceiling and also the S&P’s downgrading of the U.S.’s credit rating.”

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August 29, 2011

Swedish bank Nordea to lay off 2,000 staff

Filed under: money, usa — Tags: , , , — Gladiator @ 4:56 pm

The Nordic region’s largest bank Nordea AB says it will lay off around 2,000 employees in 2011 and 2012, partly due to the increased costs imposed by new global bank regulations.

The bank Monday said it has started negotiations with unions in Sweden, Finland and Denmark to lay off between 500 and 650 staff in each country. It has also started negotiations with unions in Norway to reduce its work force there by between 200 and 300 people overnight pay day loans.

The bank said the “increased costs imposed by new global regulation will create challenges for all banks,” and the layoffs are part of a scheme to maintain its place among the top-league banks in Europe.

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August 28, 2011

Facebook boosts photo size, makes them load faster

Filed under: economics, real estate — Tags: , , , — Gladiator @ 2:00 am

SAN FRANCISCO

August 26, 2011

HK think tank to put Asian angle on global issues

Filed under: finance, technology — Tags: , , , — Gladiator @ 11:04 am

A prominent Hong Kong business family has set up a think tank to look at global economic issues in the latest attempt at developing a world class research institute in Asia that can compete with those in North America or Europe

The Fung Global Institute was established on Thursday and will look at global issues from an Asian perspective as economic power increasingly shifts to the East.

As Asian economies have grown, new think tanks have sprouted in the region. But limits on democracy and free speech in many Asian countries mean few have produced research comparable in quality and influence to counterparts such as the Washington, D.C.-based Brookings Institution, Canada’s Fraser Institute or Britain’s Chatham House.

The Fung Global Insitute said it is recruiting experts from around the globe to provide business leaders and policymakers with research that aims to “help shape and advance international dialogue on Asia’s growing influence on the world economy cash advance payday loan.”

Michael Spence, a 2001 Nobel laureate in economics, will chair the think tank’s academic board.

The institute is set up with an endowment from the Victor and William Fung Foundation _ a charity funded by and named for the two brothers behind trading company Li & Fung Ltd.

The new think tank will look at four main themes, including global supply chains.

Li & Fung Ltd. is one of the biggest suppliers of clothing and other consumer goods sourced in Asia for Western consumers.

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August 24, 2011

An early stock rally fades; indexes edge lower

Filed under: houses, online — Tags: , , , — Gladiator @ 8:04 pm

An early stock market rally faded Wednesday, leaving indexes with small losses in early afternoon trading. The price of gold slumped 4 percent as investors became less fearful.

A sharp increase in orders for long-lasting goods in July eased fears that the U.S. was headed for another recession. Companies placed more orders for aircraft, automobiles and other durable goods in July. Orders rose 4 percent, the biggest increase since March.

The Dow Jones industrial average was down 37 points, or 0.3 percent, at 11,140, erasing a morning jump of 115 points. It gained 322 points the day before.

The stock market often makes big swings in late August with fewer traders at their desks, said Dan Greenhaus, chief global strategist at the brokerage BTIG. Lower trading volumes often make for a more volatile market.

“It’s kind of crazy. I blinked and in 15 minutes the market had turned,” Greenhaus said. “But in the last two weeks of August, wild swings like this are not out of the ordinary.”

Two days after trading above $1,900 an ounce for the first time, gold fell $72 to $1,788 as investors became less skittish. Gold has risen 8 percent since Aug. 5, when the stock market entered a two-week period of heavy turbulence.

The S&P 500 index fell 4 points, or 0.4 percent, to 1,158. It gained 38 points Tuesday, also its best day since Aug. 11. The Nasdaq fell 21 points, or 0.9 percent, to 2,424.

Bank of America Corp. rose 8 percent, the most of any stock in the Dow average, after analysts said a four-day slide that erased 15 percent of the bank’s value had been overdone. Toll Brothers rose 4 percent after the homebuilder reported quarterly income that trounced analysts’ estimates.

Stocks have made huge moves this month after Europe’s debt crisis flared up again and as signs emerged that the U.S. might slip back into recession. The Dow has moved by more than 300 points seven days in August. A 200-point jump early Monday dwindled to a 36-point gain by the close of trading.

Indexes jumped sharply Tuesday as investors brushed off a pair of weak economic reports and an earthquake that shook the East Coast. Even after Tuesday’s rally, the Dow is down 8 percent in August. The S&P 500 index has lost 11 percent, putting it on track for its worst August since 1998.

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August 23, 2011

Olive: How likely is a double dip?

Filed under: Uncategorized, marketing — Tags: , , , — Gladiator @ 5:08 am

Nervous Nellies on Bay and Wall Streets pulled back a bit yesterday from their panic selling of recent weeks, which has seen the S&P/TSX Composite Index drop a total of 15.5 per cent in Canada from its previous peak, in March; and the benchmark Dow Jones Industrial Average fall a similar 15.2 per cent from its most recent peak, in May.

But don

August 21, 2011

Mexico’s president becomes TV adventure guide

Filed under: management, technology — Tags: , , , — Gladiator @ 2:12 pm

President Felipe Calderon is figuratively going out on a limb _ and literally down a sinkhole, up a river (with a paddle) and over the top of a few pyramids _ in an attempt to boost Mexico’s flagging tourism industry.

The balding, 49-year-old leader is personally trying to change his country’s violent reputation by appearing as a sort of adventure tour guide in a series of TV programs to be broadcast starting in September on Public Broadcasting Service stations in the United States.

The president dons an Indiana Jones-style hat and a harness and descends a rope into the 1,000-foot-deep (375-meter) Sotano de las Golondrinas cavern, accompanied by Peter Greenberg, host of the “The Royal Tour” TV series. Calderon also straps on scuba tanks to lead Greenberg into a sinkhole lake known as a cenote in Yucatan. And he helps a Lacandon Indian paddle a boat down a river in a jungle in southern Chiapas state.

In the 30-minute videos, Calderon breaks from his image as a lawyerly policy wonk best known for launching a bloody, controversial offensive against drug cartels. He plans to attend a premiere of the show within a few weeks, according to Tourism Department spokesman Roberto Martinez.

“I have other duties that are more dangerous,” Calderon jokes, dangling midair in a cavern as a rope lowers him hundreds of feet to the bottom. The site is in the Gulf coast region of Mexico known as the Huasteca, which is covered in jungle and dotted with caverns, waterfalls and crystalline pools.

Calderon swaps the explorer hat for a helmet with a headlamp for the descent into the Golondrinas cave, named for the huge flocks of birds that live inside. Calderon also appears in underwater footage from the stalactite-studded cenote in Yucatan, where he flashes the camera an “OK” signal from behind his dive mask.

Analysts say the videos represent a distinct break from the solemn treatment that has long characterized the Mexican presidency but fit in with Calderon, who has emphasized using the media to get his message across, and who has sought to project a forceful image.

“That’s always been his objective, the whole macho thing,” said John Ackerman, of the legal research institute at Mexico’s National Autonomous University. In 2007, soon after putting the army on the front line of his offensive against drug cartels, Calderon departed from presidential tradition by putting on an olive-green army jacket that was a few sizes too big for his short frame, an image that has been widely lampooned in newspaper cartoons ever since.

“From the very beginning, using the military uniforms and saluting, it’s always been his kind of thing,” Ackerman said. “It doesn’t quite fit with his physical appearance.”

Drawing criticism, Calderon’s administration took the image-building a step further this year by funding a privately produced television miniseries glorifying the federal police, which was broadcast by the country’s largest network. On Friday, the navy told local news media that it is letting private producers use navy locations to make a miniseries about the force, but that the navy is not financing any of the production no fax payday loans.

Calderon’s message in the latest videos is that Mexico is safe for tourists.

“This is part of a strategy to promote the country abroad,” said Martinez.

Nobody argues that Mexico’s tourism needs a boost. According to the country’s central bank, overall foreign tourism in 2010, not including border-area visitors, was still 6.3 percent below 2008 levels, and the first half of 2011 saw a 2 percent decline from the same period of 2010.

Cruise ship visits in the first half of the year declined 9.3 percent, after several cruise lines canceled Pacific port calls in Mazatlan and Puerto Vallarta.

Analysts blame the drops on the world economic downturn hitting many countries’ travel industries, but also pointed to Mexico’s drug violence, which has claimed between 35,000 and 40,000 lives since Calderon took office in late 2006.

While foreign tourists have not been targets of the violence, a point Calderon is eager to make, it has had some undeniable effects. For example, the border highway that many U.S. visitors once used to travel to the Huasteca region where Calderon went cave-diving is now considered so plagued by highway holdups and shootings that the U.S. State Department has issued warnings about traveling there.

The Huasteca remains a beautiful and largely safe region, but most tour operators recommend foreigners fly to a nearby Mexican airport rather than drive down from the border.

Some argue that Calderon’s stint as a television travel guide might be ill-advised, both because it compromises the dignity of the presidency and comes just months before campaigning opens for the 2012 elections to choose his successor.

Mario di Costanzo, a congressman for the leftist Labor Party, says he has requested information on how much Mexico spent to film the series. Calderon’s office said the videos’ U.S. producers paid production costs on the trips, but Mexican presidential and military helicopters can be seen ferrying the ‘presidential tourists’ around.

“We are questioning the legality of the president’s actions,” Di Costanzo said. “Never in the history of the country has the image of the president been used to promote tourism.”

“We see this as a promotion of Felipe Calderon’s own image, for the benefit of his own party, rather than an institutional image of the country as a tourism destination,” Di Costanzo noted.

Greenberg has previously traveled with the king of Jordan, the president of Peru, and the prime ministers of New Zealand and Jamaica on similar programs.

Congresswoman Leticia Quezada of the Democratic Revolution Party said her party objects to Calderon using government vehicles and personnel for the series, and said he has been spending too much time and money on television.

“We’re going to start calling him Felipe Calderon Productions,” she quipped.

Source

August 19, 2011

Relaxing Obama hits bookstore, Vineyard golf links

Filed under: business, mortgage — Tags: , , , — Gladiator @ 11:16 pm

Summer reading and a bit of golf. That says vacation for many Americans. And briefings on the economy and national security if you’re the president.

Barack Obama began the first full day of his Martha’s Vineyard vacation on Friday by taking his daughters book shopping, then hitting the golf links at a private course.

The White House was at pains to point out he also was briefed by aides on national and international issues.

At the Bunch of Grapes bookstore, Obama was greeted by shouts of “2012″ and “Four More Years.” Dressed casually in jeans and an untucked blue polo shirt, he introduced his daughters to patrons before setting off in search of vacation reading. The girls, meanwhile, shopped with a purpose.

“They’ve got to buy some books,” Obama said of Malia, 13, and Sasha, 10, adding that one of them had a school assignment.

One woman, Terry Wilson, 63, of Alexandria, Va., told the president: “Please don’t forget the teachers.” Obama replied that he loves teachers. “How could I forget them?” he said.

At the end of the 15-minute shopping trip, Obama was seen holding five or six books, including “Brave New World,” Aldous Huxley’s futuristic classic, and “The Bayou Trilogy,” a crime novel by Daniel Woodrell set in Louisiana swampland.

Obama emerged to cheers from well-wishers who were kept behind yellow police tape, then climbed into his SUV and rode back to his vacation compound to drop off the girls before being driven to Vineyard Golf Club in Edgartown. Aides said his afternoon foursome included longtime Chicago friend Eric Whitaker and two White House staffers cash advance.

Several Republican presidential candidates have criticized Obama for coming to this upscale island resort off the coast of Massachusetts at a time of economic uncertainty across the country.

The 10-day stay on Martha’s Vineyard is Obama’s third straight summer on the island off Cape Cod, and his visit to the Bunch of Grapes was a reprise of how he started last year’s vacation. Once again, it was a father-and-daughters outing, with first lady Michelle Obama elsewhere on the island.

Inside the bookstore, once Malia and Sasha had picked out books, Obama went to the cashier to pay but was heard disagreeing with the $32 price he was quoted, which seemed low for the size of his stack. He later paid by credit card, telling the cashiers that he uses it only about three times a year.

“We’re counting on you!” one patron yelled as Obama left the store.

He also found a supportive audience outside the shop.

“He’s working all the time. He’s getting a little relaxing when he’s with his girls,” said Virlynn Atkinson White, from Washington, D.C., who also was on vacation. “But for the most part, I’m sure he’s working. There’s too much going on in the country. He’s very conscientious.”

The White House defends Obama’s desire for time to recharge and spend time with his family before the new school year begins. Officials also say the president is never really on vacation.

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Associated Press writer Erica Werner contributed to this report.

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August 18, 2011

Target’s 2Q profit rises 3.7 percent

Filed under: loans, term — Tags: , , , — Gladiator @ 8:20 am

Target Corp. is benefiting from the economic downturn, while other retailers are getting battered by it.

The discounter, based in Minneapolis, on Wednesday posted second-quarter profit and revenue that beat Wall Street estimates in part because of a growing frugal trend among Americans who are concerned with job security and other economic woes. Target said that while cost-conscious customers in general are making fewer shopping trips to save money on gas, they’re increasingly coming into its stores for their one-stop shopping needs.

“We do believe that we are gaining some of the trip consolidation,” said Kathy Tesija, Target’s executive vice president of merchandising. “We think we’re benefiting across all income levels.”

Consumers have been changing their shopping habits during the economic downturn as they’re being squeezed by rising food costs, high unemployment and weak job and housing markets. Retailers have had to adapt by keeping inventory fresh, offering incentives and discounting.

Target said its results were buoyed by its push into the grocery business, which allows it to offer customers more food items. The retailer also said it benefited from the 5 percent discount program it launched in October for customers who pay with Target branded credit and debit cards.

Target said profit rose 3.7 percent to $704 million, or $1.03 per share, for the quarter that ended July 30. That compares with $679 million, or 92 cents per share, a year earlier. Revenue rose 4.6 percent to $16.24 billion. Analysts were expecting earnings of 97 cents per share on revenue of $15.9 billion.

Revenue rose 3.9 percent at stores opened at least a year __ a key indicator of a retailer’s health. Target said shoppers bought more clothing and home furnishings, as well as groceries and beauty products. Some shoppers also traded up to higher-end home brands like Fieldcrest.

Looking forward, Target said August sales growth is so far slightly slower than in June and July. But the company said school supplies have been selling well and the heart of the back-to-school selling season is still ahead.

The company forecasts third-quarter profit of 70 cents to 75 cents per share, while analysts expect 72 cents per share. For the full year, Target expects to earn $4 payday loan.15 per share to $4.30 per share, compared with the $4.14 per share analysts expect.

“Without a doubt, recent economic and financial market turmoil create additional uncertainty about what lies ahead,” said CEO Gregg Steinhafel, who expressed caution in speaking to investors during a conference call on Wednesday. “Our teams are vigilant and prepared to address unexpected challenges and opportunities as they arise.”

Target shares rose $1.31, nearly 3 percent, to $50.68. That’s at the mid-point of its 52-week range of $45.28 and $60.97.

Analysts say Target is winning customers from rival Wal-Mart Stores Inc., the world’s largest retailer. Target’s results come a day after Wal-Mart posted its ninth straight quarter of declines in revenue at U.S. Walmart stores open at least a year.

The Bentonville, Ark.-based company, however, reported a 5.7 percent increase in second-quarter profit and raised its outlook for the year, citing strong international sales growth and cost cutting. And al-Mart said it has seen a steady improvement in its U.S. business in the past three quarters.

During a pre-recorded call on Tuesday, Mike Duke, Wal-Mart’s chief executive officer, said his company’s shoppers are being pinched by the economy and “trading down to stretch their budgets.”

But some analysts say customers are trading to Target because they were turned off when Wal-Mart got rid of popular brands and items in an effort to clean up its stores. Moreover, recent surveys, including one from WSL Strategic Retail, show that customers no longer believe that Wal-Mart is the low-price leader.

Wal-Mart has been working to restock shelves with popular items again. It’s also returning to an everyday low-price strategy instead of discounting select merchandise on a temporary basis. But some analysts say it’s too little too late for some shoppers.

“Wal-Mart is getting its lunch eaten,” by Target, said Patty Edwards, a principal at Trutina Financial, an investment management firm. “Wal-Mart’s flip-flopping is confusing shoppers.”

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August 16, 2011

Germany economy grew only 0.1 pct in Q2

Filed under: houses, technology — Tags: , , , — Gladiator @ 5:24 pm

Germany’s economic growth more or less ground to a halt in the second quarter, in another downbeat sign for the global economy.

Its quarterly growth of only 0.1 percent was way below market expectations for a 0.5 percent increase, and follows hard on the heels of similarly disappointing readings for France and the United States.

Until now Germany’s economy, Europe’s biggest, had been growing strongly as its world-renowned companies tapped export markets all around the world, particularly in faster-growing emerging countries. Its industrial prowess had in many ways cushioned it from a government debt crisis that’s afflicting the 17 countries that use the euro.

Germany’s state statistical agency said Tuesday that lagging consumer spending and construction investment were largely behind the growth slowdown in the April-June period.

As well as being below expectations, the second-quarter figure was way down on the 1.3 percent growth recorded in the first quarter, when the economy was boosted by strong exports of cars and industrial machinery. That figure itself was revised down from 1.5 percent in earlier releases.

Top German corporate executives have cautioned that growth could be less impressive in the second half of the year due to volatile raw material prices and economic and financial turmoil over the heavy levels of government debt in Europe and the U.S.

The second-quarter figure looked better compared with the same quarter a year ago, rising 2.7 percent.

Slowing growth in Germany weighs on overall growth in the eurozone. A slowdown in the zone’s biggest country would give the European Central Bank more reason to avoid more interest rate increases this year. Analysts said the German figures may mean that eurozone economic growth for the quarter _ due later _ could well be below the 0.3 percent forecast.

“The weak data for Germany follow recent numbers showing zero growth in France in the second quarter, and raises concerns that the euro area’s hitherto strong core countries are undergoing a much deeper than previously thought soft-patch,” said Chris Williamson, chief economist at financial information company Markit.

It’s not just Europe that’s slowed down. The U.S. economy is growing at a far slower rate than previously thought while figures Monday showed Japan contracted further in the second quarter in the wake of March’s devastating earthquake and tsunami.

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