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October 22, 2011

UK borrowed less than forecast in September

Filed under: mortgage, uk — Tags: , , , — Gladiator @ 11:24 am

U.K. government borrowing in September fell by more than anticipated, official figures showed Friday, providing rare good news after a series of downbeat reports.

The Office for National Statistics said public sector net borrowing in September was 14.1 billion pounds ($22.2 billion), down on the 15.4 billion pound shortfall in the same month last year.

September’s figure was about a billion pounds better than the market consensus.

The agency also revised its August borrowing figure downward by 2 billion pounds.

The data leaves the government broadly on course to hit its full-year deficit target of 122 billion pounds, providing the economy doesn’t deteriorate further.

However, worries persist.

“We doubt that these figures fully reflect the recent slowdown in the pace of economic growth and therefore we continue to expect the trend in borrowing to deteriorate in the second half of the fiscal year,” said Samuel Tombs, U.K. economist at Capital Economics.

The statistics agency reported earlier this week that inflation had hit a three-year high of 5.2 percent. Unemployment was up to 8.1 percent in the latest report, while household incomes were growing at less than 2 percent a year; GDP rose just 0.1 percent in the second quarter.

Chris Williamson, chief economist at financial information company Markit, said the government may be forced to cut spending further to meet the borrowing target if the economy gets worse. However, he said this raises the risk that austerity measures “end up driving the deficit higher rather than reducing it.”

Concern about sagging growth has prompted the Bank of England to resume a program of buying up financial assets from the banks in the hope of increasing the money supply and getting them to lend more.

Earlier this month, the Bank’s Monetary Policy Committee unanimously voted to spend another 75 billion pounds ($118 billion) on the so-called program of quantitative easing. Between March 2009 and January 2010, it bought up 200 billion pounds ($315 billion) of assets.

Source

October 20, 2011

Stocks dip on concerns that EU meeting delayed

Filed under: economics, uk — Tags: , , , — Gladiator @ 8:28 pm

Stocks slid Thursday after reports that a meeting planned for the weekend between European leaders to fend off a credit crisis may be delayed. The reports overshadowed an unexpected recovery in manufacturing in the Northeast.

The Dow Jones industrial average fell 63 points, or 0.5 percent, to 11,441 at 11:20 a.m. Eastern.

Investors are concerned that differences between the leaders of Germany and France may hold up an agreement on how to protect European banks from the likelihood of a default by the Greek government.

Officials from the 17 countries that share the euro are scheduled to meet at a summit this Sunday to discuss ways to contain the damage. A messy default by Greece could to huge losses for European banks that hold Greek bonds. If that leads them to pull back on lending to each other, investors fear it could cause another freeze in global credit markets like the one in late 2008 after Lehman Brothers collapsed.

The S&P 500 fell 7, or 0.6 percent, to 1,202. The Nasdaq lost 30, or 1.2 percent, to 2,573.

U.S. indexes had edged higher in early trading after the Federal Reserve Bank of Philadelphia said regional manufacturing was “showing signs of recovery.” Its index of manufacturing, shipments and new orders was far better than economists had forecast quick payday loan.

Other economic reports were mixed. The Labor Department said new applications for unemployment benefits dropped to 403,000 last week, a sign that layoffs are easing. On the down side, sales of previously-occupied homes fell 3 percent last month.

Several large companies reported earnings before the market opened. Union Pacific Corp., the nation’s largest railroad, surged after its earnings came in well ahead of analysts’ estimates. The company gained 5.3 percent after reporting that its income jumped 16 percent, more than analysts had forecast. It also said it expects the growth to continue. .

Southwest Airlines rose 3.2 percent after reporting income that was a penny per share higher than analysts predicted. AT&T Inc. lost 1 percent after reporting that the number of new iPhones activated last quarter was the lowest in a year and a half.

The New York Times jumped 4 percent after the company reported higher profits than expected.

Microsoft Corp. will report earnings after the market closes.

Source

October 14, 2011

For beer vendors, Cardinals playoff run means extra paydays

Filed under: term, uk — Tags: , , , — Gladiator @ 8:44 am

ST. LOUIS

October 4, 2011

Jobs shrinking while competition growing for the young and educated

Filed under: finance, uk — Tags: , , , — Gladiator @ 3:08 pm

Young people have always struggled to find work, but in difficult economic times, it becomes more pronounced.

The barriers pile up. Mandatory retirement has been eliminated, baby boomers are choosing to hang on to their jobs, and workers who have been laid-off are competing with new graduates for a smaller pool of jobs.

September 24, 2011

UBS CEO Gruebel faces board amid huge trading loss

Filed under: uk, usa — Tags: , , , — Gladiator @ 4:40 pm

UBS Chief Executive Oswald Gruebel, under pressure after a rogue trader lost $2.3 billion of the Swiss banking giant’s money, kept silent Friday after facing the institution’s board of directors in Singapore.

Gruebel was the first of UBS’s top management and board to leave the meeting at the bank’s office and refused to answer reporters’ questions as he sat alone in the back of a chauffeured Mercedes.

Several UBS board members left about 30 minutes later and also declined to comment.

Some analysts have speculated that Gruebel’s job is at stake, though he said last weekend that he will not resign. UBS leadership may also be mulling whether to keep its investment banking arm to go along with its wealth management business.

Earlier this week, the Government of Singapore Investment Corp. _ the largest UBS shareholder _ said in a rare public rebuke that it was concerned about lapses at UBS and called on the bank to restore confidence.

The sovereign wealth fund, which owns about 6.4 percent of UBS, has suffered heavy losses on its investment as the bank’s share price has more than halved since GIC became a shareholder.

A UBS spokeswoman said Friday that no further meetings among the board and top management are planned for this weekend.

The bank’s board was scheduled to meet in Singapore this week because UBS is a major sponsor of the Formula One race being held on the island Sunday, and it plans to entertain clients at its luxury suite.

London-based UBS trader Kweku Adoboli was arrested last week and charged with fraud and false accounting for the loss. A judge ordered him Thursday to be held in jail until a hearing next month.

Source

September 13, 2011

Bank of America to cut 30,000 jobs

Filed under: Uncategorized, uk — Tags: , , , — Gladiator @ 8:08 am

Bank of America is slashing 30,000 jobs as part of an effort to reverse a crisis of confidence among investors. It’s the largest single job reduction by a U.S. company this year.

What CEO Brian Moynihan is trying to do is nothing less than save the nation’s largest bank. Investors have cut the bank’s market value by half this year. The bank is facing huge liabilities over soured mortgage investments and concerns over whether it has enough capital to withstand more financial shocks.

The cuts, which affect Bank of America’s consumer businesses, represent 10 percent of the Charlotte, N.C., bank’s work force. The bank said it hoped the cuts and other measures would result in $5 billion in annual savings by 2014. The bank has already cut 6,000 jobs this year. The bank also said it would look for cost savings at its other businesses in a six-month review that will begin next month.

Bank of America’s stock has lost 48 percent this year, largely because of problems related to poorly written mortgages at Countrywide.

Just in the first half of the year the bank paid out $12.7 billion to settle claims from investors that it sold them securities backed by faulty mortgages no fax payday advance.

Some investors and analysts worry that the job cuts will lead to poor customer service and the bank will lose market share to rivals at a time when there are signs that the economy is slowing down.

They also wonder if the job cuts are enough to produce the profits the bank needs to overcome the spiraling costs from its mortgage business.

“There is a fair amount of skepticism on Wall Street, and Brian is doing as much as he can do in the face of a worsening economy,” said Nancy Bush, an analyst and contributing editor at SNL Financial.

Bank of America is the second-largest bank in the St. Louis region, based on deposits, and is a major employer here. As of June 30, Bank of America had 2,815 employees in the St. Louis area, down slightly from 2,888 employees at the end of last year. A Bank of America spokeswoman said Monday that the location of the job reductions had not been released by the bank.

Lisa Brown of the Post-Dispatch contributed to this report.

Source

September 1, 2011

Fuel-efficient vehicles help fuel strong August sales

Filed under: mortgage, uk — Tags: , , , — Gladiator @ 10:48 pm

Ford Canada said Thursday that interest in its fuel-efficient cars drove an eight per cent increase in overall sales during August over the prior year.

Canada’s top-selling automaker sold 25,927 vehicles during the month, making it the best August sales results in 23 years.

Since January, the company has sold 193,648 cars and trucks, 5.2 per cent higher than the prior year.

Solid gains from Ford Fiesta, Focus, Fusion and Lincoln MKZ pushed overall car sales up 18 per cent to 6,898 units in August. Sales since January are up 22 per cent to 52,622.

Truck sales grew five per cent to 19,029 and by 0.1 per cent to 141,026 for the year to date.

Chief executive David Mondragon said consumers are recognizing the fuel efficiency of Ford’s cars and trucks, as more than 64 per cent of cars sold in the month achieved at least 55 miles per gallon or 5.14 litres per 100 kilometres.

Also, more than 40 per cent of F-150 truck sales were EcoBoost engines, which achieve more than 30 miles per gallon (9.42 litres per 100 km).

Lincoln sales increased 27 per cent on growing interest in the MKZ, MKX and Navigator.

Mondragon said Ford is maintaining its leadership position for the second consecutive year as the Canadian auto industry is on the path of “moderate growth in 2011.”

Source

July 29, 2011

Stocks edge lower as the debt debate drags on

Filed under: loans, uk — Tags: , , , — Gladiator @ 9:08 pm

The word of the day in financial markets: Anxious.

U.S. stocks first plunged Friday after a dismal report on economic growth added to traders’ fears about the consequences of a stalemate over raising the country’s borrowing limit. But by late morning after President Barack Obama said there were multiple paths to a compromise, the Dow remained the only index that was down slightly.

If Congress fails agree to raise the debt limit before Aug. 3, the U.S. won’t be able to pay all of its bills. The country might then default on its debt. Experts say that could be a disaster for financial markets and the broader economy.

The combination of bad economic news and growing worries about a debt deal were evident in nearly every measure of investor confidence.

_Bond yields fell as more investors sought safer investments.

_The U.S. dollar fell against the yen and Swiss franc, as traders considered them safer. The dollar remained up against some other currencies.

_Gold prices rose by nearly 1 percent.

_The cost to protect against a U.S. default within the next year reached a record high. The cost to insure Treasurys for one year jumped 54 percent this week.

Many analysts have said they believe the debt dispute will be resolved before the deadline. If that confidence fades, the market could plunge more sharply, said Jack Ablin, chief investment officer at Harris Private Bank.

“I think there’s a growing sense of resignation that we could go into technical default” and a downgrade of U.S. debt looks more likely, he said.

But there are other concerns for investors, too. The government said early Friday that economic growth slowed in the first half of the year to its weakest pace since the recession ended two years ago.

The news overshadowed strong earnings reports from drugmaker Merck & Co. Inc. and oil giant Chevron Corp.

In morning trading, the Standard & Poor’s 500 index is flat at 1,301. The Dow Jones industrial average dropped 34, or 0.3 percent, to 12,208. The Nasdaq composite index is up 5, or 0.2 percent, to 2,771.

Traders flocked to bonds, considered to be a safer investment, pushing the yield on the benchmark 10-year Treasury note to 2.85 percent from 2.95 percent on Thursday. As demand for bonds increases, the government is able to pay bondholders lower interest rates, causing yields to fall. Concerns that bond yields could spike on fears of a default have so far been unfounded.

Gold rose about $10, or just under 1 percent, to $1,627 per ounce. Gold prices tend to rise when investors are nervous about turbulence in other markets.

House Republicans are trying for the third straight day to pass a bill that would raise the borrowing limit while cutting federal spending by nearly $1 trillion.

President Barack Obama said again Friday that he will not sign such a bill. Democrats say any bill must include revenue increases from higher taxes as well as cuts.

A default by the U.S. could increase borrowing costs for the government and consumers. That could dig the nation into a deeper deficit hole and discourage people from borrowing to buy homes and cars.

Even if Congress does reach a deal, rating agencies might still downgrade U.S. debt, which would likely have the same effect on borrowing costs.

The debate over increasing the nation’s borrowing authority has cast a shadow of uncertainty over the financial markets all summer. Any remaining calm faded before the markets opened Friday, as news of weak economic growth pushed some investors to sell quickly.

The dollar fell 1.5 percent against the Swiss franc as traders’ confidence in the reserve currency eroded.

The market-wide selloff pushed shares of Merck down 2 percent, despite the company’s reporting strong earnings before the markets opened. The drugmaker said its second-quarter profit nearly tripled from a year ago. It announced plans to cut 11,830 jobs.

Shares of Chevron also lost a fraction of a percent despite strong second-quarter earnings. The company said its profit jumped 43 percent, beating analysts’ estimates, as higher oil and gasoline prices offset a decline in production.

Among the few gainers was travel website operator Expedia Inc. Shares surged 8 percent after the company said its second-quarter net income rose more than expected because bookings increased and prices for plane ticket and hotel rooms rose.

Source

July 25, 2011

Britain: who else hacked phones?

Filed under: loans, uk — Tags: , , , — Gladiator @ 12:20 am

The chief villain in Britain’s phone hacking scandal, the News of the World tabloid, is history, shut by owner Rupert Murdoch. But was it the only shadowy practitioner in Britain’s cutthroat media market? Some celebrities think not.

Actor Jude Law is suing The Sun, another tabloid owned by Murdoch, for allegedly hacking into his voice mails. And actor Hugh Grant, now a vigorous campaigner against phone hacking, is pushing to learn who in the British media may have intercepted his phone messages.

Britons greet their scandals with cynicism about fallen figures, but they are not used to ones that sweep up major institutions all at once. Police, politicians and journalists were pulled into what Prime Minister David Cameron called a “firestorm,” and now people wonder how far this one will go. Even the number of possible hacking victims is uncertain, with the number said to run into the thousands.

The focus for now is on the News of the World and its management, as well as former executives who were arrested in a police investigation. But a key question that has yet to be addressed is to what extent other newspapers hacked the voice mails of celebrities and others in an attempt to garner gossip and other titbits deemed worthy of print.

The slow pace of investigative work, the challenge of untangling evidence in seized documents and confidentiality clauses in any settlements between newspapers and plaintiffs mean it could take months or years to uncover the full extent of wrongdoing, if it happens at all.

“I believe it to be widespread,” said Max Clifford, a celebrity publicist who got a hefty payout from the News of the World after his phone was hacked in an earlier scandal. “News of the World were definitely the leaders of the pack, but they weren’t isolated. They weren’t the only ones.”

The scandal erupted a few weeks ago with allegations that journalists at the News of the World hacked the phone of a 13-year-old murder victim while police were still searching for her and broadened to include claims reporters paid police for information. Arrests followed, top police officials quit, and Murdoch and his son, James, told a parliamentary committee that they were unaware of wrongdoing.

Murdoch’s camp has sought to deflect criticism by alleging that News of the World was unfairly tarnished, accusing newspapers that have printed critical reports of hypocrisy and suggesting that phone hacking was hardly confined to one media organization.

Daily Mail editor Paul Dacre told a parliamentary committee this month that some “questionable methods” could be justified to break a story that was in the public interest, but he said he had never considered phone hacking or “blagging,” or obtaining information through misrepresentation.

“Clearly, they are criminal charges,” he said.

Fresh information on hacking could emerge in January, when dozens of alleged victims, including former government ministers, bring a joint lawsuit against News International, which runs Murdoch’s British newspapers, to the High Court in London.

The case will focus on five lead claimants chosen to represent the different types of people who were allegedly targeted _ Hollywood actor Law, British lawmaker Chris Bryant, former soccer star Paul Gascoigne, interior designer Kelly Hoppen and soccer agent Sky Andrew.

Lawyer Tamsin Allen, who represents Bryant, said so far 32 claimants in all had joined the action, which will decide whether hacking took place and whether victims should receive compensation.

Law is already suing The Sun for allegedly hacking his telephone mails for stories about his private life. News International denies the claim, accusing the actor of “a deeply cynical and deliberately mischievous attempt” to drag The Sun into the scandal. The Sun is the first paper other than the News of the World to face a phone-hacking lawsuit.

Law’s spokeswoman, Sara Keene, on Friday declined to comment on any aspect of phone hacking.

On Wednesday, actor Grant was granted the right to see evidence that could reveal whether his voice mails were intercepted by journalists at the News of the World or other newspapers.

A judge at Britain’s High Court ordered police to disclose information to Grant and his former girlfriend, Jemima Khan, that was allegedly gathered by private investigator Glenn Mulcaire. Mulcaire, who was jailed for phone hacking in 2007, worked for the News of the World and may also have sold information to other newspapers.

The Guardian reported that their lawyer, David Sherborne, also asked for any information the police had on “passing of material about the claimants to other newspapers.”

Martin Moore, a founder of Hacked Off, a group that seeks full accountability in the phone-hacking scandal, said documents seized from Mulcaire, which are key to police and parliamentary inquiries, are difficult to decipher because they don’t spell out the identities of alleged phone hacking targets. A document might list a birthday instead of a name, for example, but it is not clear whose birthday it is.

“It’s terribly difficult to know what else they mean,” Moore said. “I can understand why that would be quite daunting for the police.”

Another former private investigator with links to News of the World is Jonathan Rees, who was charged with conspiring to murder a former business partner, though the charge was eventually dropped. Moore said documents seized from Rees deserve more scrutiny and, he said, “there may be other private investigators we don’t know about.”

CNN talk show host Piers Morgan has been drawn into the debate, denying claims he was involved in hacking when he was editor of the News of the World and a non-Murdoch tabloid, the Daily Mirror.

British lawmaker Louise Mensch, who was on the committee that questioned the Murdochs, said Morgan has been “very open about his personal use of phone hacking,” and had boasted about it in his memoir “The Insider.”

In fact, Morgan writes in the book of being suspicious that his own phone was hacked and says that after being warned by a friend, he changed his phone’s security code. Morgan challenged Mensch to repeat the claim outside Parliament, where parliamentary privilege protects members form being sued. She has declined.

Morgan told the AP that any suggestion that he was involved in phone hacking is “a falsehood and I suspect maliciously done.”

“I’m obviously very high-profile back in Britain. There’s lots of old friends in the newspaper game that would like nothing more than to drag my name into this and have tried very hard to do so,” he said.

Morgan edited the News of the World in 1994 and 1995. He later moved to the Mirror, but was forced to quit in 2004 after the newspaper ran pictures of British soldiers allegedly abusing Iraqis that turned out to have been faked.

The Guardian devoted considerable effort to investigating phone hacking, and The Independent and The Observer also pursued the story prior to the scandal that shook British public life. Clifford, the publicist whose voice mail was hacked, noted that some newspapers had avoided the matter even though it was hurting the reputation of their rivals at the News of the World.

“I think that pretty much speaks for itself,” Clifford said without elaborating. He said police should investigate other newspapers if necessary, even if it entails more embarrassing revelations of inappropriate ties between law enforcement and the media.

Source

June 13, 2011

Corporate deals help to give stock market a lift

Filed under: houses, uk — Tags: , , , — Gladiator @ 5:08 pm

A flurry of corporate deals is helping to lift the stock market out of its rut.

Stocks rose on Monday after Wendy’s/Arby’s Group said it would sell control of its Arby’s business to a private equity firm. VF Corp., whose brands include Wrangler and The North Face, also said it would buy boot maker Timberland for more than $2.2 billion.

The deals gave investors some much-needed confidence. In early trading, the Dow Jones industrial average is up 43, or 0.4 percent, at 11,996. The Standard & Poor’s 500 is up 4, or 0.3 percent, at 1,275. The Nasdaq is up 8, or 0.3 percent, at 2,652.

Weak economic news has sent stocks lower for six straight weeks. On Friday, the Dow fell below 12,000 for the first time since March.

Source

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