Global finance blog - news, jokes, life…

A marked deterioration in Royal Dutch Shell’s refining operations contributed to a modest fall in fourth quarter profits at Europe’s biggest oil company.

Over the previous year, Shell said its net profit fell 4.3 percent to $6.50 billion.

Though the company’s production arm was helped by higher oil prices, its refining operations swung to a loss.

Production profits rose 29 percent to $6.57 billion despite a fall in production. Shell’s “downstream” operations, which include its refining arm, lost $244 million, compared to profit of $411 million a year ago free instant credit score.

Chief executive Peter Voser said overall he was “satisfied” with the company’s performance.

Shell will increase its quarterly dividend a cent to $0.43 in 2012.

Source

Federal Reserve Bank of St. Louis President James Bullard said the Fed probably won

Applause and cheers rang out after Unionized Boeing Machinists voted overwhelmingly to approve a four-year contract extension _ a deal that grants the company labor peace and likely ends a federal complaint that had become a hot topic for Republican presidential candidates.

Boeing promised that if workers approved the pact, the company would build the new version of the popular 737 in the Puget Sound region, while the Machinists said they’d drop their allegations that Boeing opened a nonunion assembly plant in South Carolina in retaliation for previous strike.

“This contract signifies jobs throughout the Northwest, throughout the region,” said the union’s aerospace coordinator, Mark Blondin. “The message of this contract is … Boeing is acknowledging we have the deepest pool of skilled aerospace workers in the country.”

Dozens union members sounded their approval with cheers Wednesday night as Tom Wroblewski, president of Machinists District Lodge 751, announced that 74 percent of voting members chose to approve the deal.

The union represents 28,000 workers in Washington, Oregon and Kansas.

Machinists went on strike in 2005 and 2008. The latter strike helped delay delivery of Boeing’s first 787, costing the company dearly.

“This contract will help secure a better future for our employees, our customers, our communities and our company,” said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. “It reflects an effort on the part of the company and the union to find a better way to work together and achieve common ground.”

The deal guarantees Chicago-based Boeing a stretch of labor peace at a time when it badly needs it. Competition with European rival Airbus is tight, and looming budget cuts at the Defense Department are likely to cut into the company’s defense business.

In a lawsuit filed this year, the National Labor Relations Board claimed Boeing violated labor laws by opening the South Carolina line. The case became a political issue, with Republican presidential candidates using it to bash the Obama administration. South Carolina Gov cash advance. Nikki Haley and the state’s congressional delegation said the NLRB lawsuit threatened thousands of jobs and millions of dollars invested in the new Boeing facility in Charleston.

The labor board is an independent agency dominated by the president’s appointees. As part of the deal, the Machinists said they’d drop the matter. If the NLRB follows suit, it would remove a potentially damaging element for Obama in the 2012 campaign.

The deal extends the Machinists’ contract to September 2016. It calls for annual wage increases of 2 percent, cost-of-living adjustments, an incentive program intended to pay bonuses between 2 percent and 4 percent, a ratification bonus of $5,000 for each member, and improvements in the pension program. But it also would raise workers’ share of health costs.

Blondin said Boeing’s pension is the most generous in the country, and he hoped the fact that Boeing is retaining it for new hires would prompt other companies to do likewise: “As we all know pension plans have gone away,” he said. “We can get pensions back. They are affordable.”

Crucially for the union, it would ensure that jobs for Boeing’s updated 737 line _ the 737 Max _ stay in the Puget Sound region. Boeing said in July it was studying other locations for the new 737.

“It’s jobs for the people and not having to worry about a strike _ it’s beautiful,” said Gabrielle Rogano, a third-generation Boeing employee who works at a shipping and receiving center in SeaTac.

Wilson Ferguson, a delivery mechanic, wore a Santa suit as he helped count votes Wednesday night _ having come straight from volunteering to pose for photos with children of union members. The 24-year Boeing veteran has participated in the last four strikes, and said it’s a huge relief not to face another.

“Nobody wins, you never recover,” he said. “With this economy, it’s not the time to go on strike.”

Source

PARIS

BRUSSELS—European leaders are struggling for compromise on a crucial debt-fighting agreement, but it was unclear if their last-ditch meeting on Wednesday would produce an accord capable of calming financial markets.

With the future of the European Union possibly hanging in the balance, leaders have been trying to put aside national interests and craft the elements of a comprehensive, EU-wide plan to head off a financial meltdown across the continent.

Hours before EU leaders were set to arrive for the one-night Brussels summit, German Chancellor Angela Merkel won vital parliamentary approval at home on plans to increase the eurozone rescue fund’s firepower.

The summit will look at a strategy to vastly increase the $600-billion bailout fund by offering government bond buyers insurance against possible losses and drawing capital from private investors and possibly sovereign wealth funds from such countries as China and Brazil.

In a speech to the Bundestag in Berlin, Merkel called for European leaders to recognize the urgency of Europe’s situation.

“We need to look to the future,” she told legislators. “If the euro fails, Europe fails.

“We need to overcome the acute crisis, we need to come to concrete solutions with regard to countries that are very much in debt, we have to tackle the mistakes made in the past so the crisis will not get worse,” Merkel said.

In another positive sign, Italian Premier Silvio Berlusconi appeared likely to at least partially meet EU demands for new austerity measures designed to rein in Italy’s massive public debt, which is contributing to instability on the continent’s financial markets. Berlusconi nailed down an overnight deal early Wednesday with his allies in parliament on emergency growth measures and pension reforms no fax cash loans.

But it remains unclear whether EU leaders can reach a detailed, concrete agreement Wednesday that would reassure investors or whether the accord will be a loosely worded plan for future action. Such a vague outcome might reignite the continent’s financial crisis.

The key issue of how to restructure Greek debt was unsettled on the eve of the summit. As of Tuesday, governments and banks remained sharply divided over the extent of the losses that would have to be accepted by holders of government bonds issued by Greece, the country that tipped the continent into a financial crisis.

Banks have been resisting pressure from governments for “voluntary” write-downs of about 60 per cent on their Greek bonds.

Also, there was troubling division on how to finance the expansion of the bailout fund, the European Financial Stability Facility. France had been pushing for the European Central Bank (ECB) to support the EFSF by providing it with loans that could raise the fund’s total capacity to the $1.5-trillion range. But Germany has rejected this approach.

In a compromise, leaders may agree that the EFSF be allowed to bail out debt-laden eurozone governments such as Spain and Italy by giving partial guarantees to investors or banks who buy more of the countries’ bonds.

But key elements on how the EFSF will operate and where it will obtain funds in future may require more discussion among EU officials over coming months.

The details of any agreement are expected to be announced Wednesday evening.

Source

Stock futures rose Wednesday on hopes that Europe will finally take the bold steps needed to stem its financial crisis.

The European Union is expected to present a new plan Wednesday to strengthen weak banks and lower Greece’s debt burden. The plan is considered the boldest yet to stem the debt crisis that threatens to push the global economy into another recession.

The plan comes a day after Slovakia rejected a bill that would have given more power to Europe’s financial rescue program. Sixteen other countries that use the euro have already approved the bill, but the measure requires unanimous support. Still, there are ways around Slovakia’s opposition, and investors predict the bill will ultimately pass.

Dow Jones industrial average futures rose 95 points, or 0.8 percent, to 11,425 about 45 minutes before the opening bell.

Standard & Poor’s 500 index futures rose 10, or 0.8 percent, to 1,199. Nasdaq 100 index futures rose 26, or 1.1 percent, to 2,314.

Earnings season is under way, and so far results are mixed. PepsiCo Inc. rose 1.4 percent in premarket trading after the company said its profit rose because of stronger sales of its snacks and beverages, particularly in overseas markets.

Yet Alcoa Inc. dropped 4.1 percent ahead of the opening after the aluminum maker reported earnings that were weaker than analysts expected. A 12 percent drop in aluminum prices in the third quarter dragged down results.

Host Hotels & Resorts Inc. fell 3.2 percent after the lodging real estate investment trust lowered its full-year forecast for funds from operations, a key measure of its financial performance.

Source

Saddled with millions of dollars in recent judgments for failure to pay licensing fees, television station operator Roberts Broadcasting filed for bankruptcy Friday.

Roberts Broadcasting is one of the many businesses owned by brothers Michael and Steven Roberts, two high-profile St. Louis businessmen who also are former St. Louis aldermen. Their holdings also include real estate and hotels around the country. Neither returned calls for comment.

The four TV stations owned by Roberts Broadcasting are WRBU-Channel 46 in St. Louis, WZRB in Columbia, S.C.; WRBJ in Jackson, Miss.; and WAZE in Evansville, Ind.

In a statement released Friday, Steven Roberts, president of Roberts Broadcasting said the four stations will seek to create a reorganization plan within the next six months.

“It was difficult to make the decision to file these cases, but the provisions of Chapter 11 (bankruptcy) will allow us to deal with the old debts, preserve the jobs of about 50 employees, and continue to service these communities,” he said.

The bankruptcy, filed in St. Louis, lists Roberts Broadcasting’s assets as $50,000 or less and its debts ranging between $500,000 and $1 million.

Creditors include law firms Armstrong Teasdale and Stinson Morrison Hecker LLP, electric utility AmerenUE and the city of St. Louis.

The three television stations outside the St. Louis area also filed separately in St. Louis for Chapter 11. All showed debts ranging between $100,000 and $500,000 and assets of $50,000 or less.

In the statement released Friday, Steve Roberts blamed the bankruptcy on the downfall of the UPN television network, which shut down in 2006.

“All four of these stations were designed to be affiliates of the former UPN network, owned by the CBS Corp.,” he said in the statement. “UPN’s minority-oriented programming fit nicely with each station’s demographics, and with its potential advertisers. To our surprise, UPN folded shortly after these stations started broadcasting, which throw off all of our business plans.”

Roberts Broadcasting has faced multiple lawsuits for failure to pay syndication fees for programs it aired on its stations. In 2009, 20th Century Fox filed a lawsuit against Roberts Broadcasting over nonpayment of more than $1 million in fees. The two sides settled last year, and the case was dismissed.

Then in April 2010, CBS subsidiaries CBS Studios Inc. and King World Productions Inc. filed a lawsuit against Roberts Broadcasting, alleging their TV stations aired CBS shows without paying licensing fees. CBS won a $1 million judgment against Roberts Broadcasting in March in that case.

Last week, a Los Angeles Superior Court judge ordered Roberts Broadcasting to pay a $1.4 million judgment to Warner Bros. for airing “The Fresh Prince of Bel-Air,” “George Lopez” and other Warner Bros. shows on its stations without paying. The Roberts Bros. filed a notice of non-objection to the Warner Bros. judgment on Aug. 31. Linda Burrow, an attorney representing Warner Bros., declined to comment on the case.

FINANCIAL STRESS

Signs of financial stress have been seen at the Roberts’ other business entities, all owned by a parent company, Roberts Cos. Roberts Cos. sold its wireless communications tower business last year for $88.5 million, in part, to shore up its other business interests, Michael Roberts said at the time of the sale.

Other than its TV stations, Roberts Cos.’ remaining business interests - real estate and hotels - have suffered during the economic downturn. Ground was broken on their $70 million high-rise condo building in the heart of downtown St. Louis’ central business district just as the recession took hold. Originally slated to open to residents two years ago, the vacant 300-foot tall tower sits empty.

Several of the Roberts Cos.’ other real estate development plans in recent years have also soured. A planned $25 million Hotel Indigo slated for the 900 block of Locust Street in downtown St. Louis was scrapped.

Roberts Cos. has also faced lawsuits recently for its hotel operations. Several local contractors filed lawsuits totalling nearly $1 million against the brothers related to the $4.4 million renovation of a hotel in the Central West End. That hotel was originally flagged a Hotel Indigo but the name was changed to the Roberts Hotel Central West End this year.

Roberts Cos.’ is privately held and no financial records were available.

Source

The stock market’s worst quarter since the end of the financial crisis closed Friday on another down note.

Stocks fell broadly on fresh signs that Europe’s debt problems and the U guaranteed payday loan.S. economy continue to languish. Makers of raw materials, industrial companies and banks

Palestinian President Mahmoud Abbas said Monday he’ll not be deterred from seeking U.N. recognition of a state of Palestine, despite what he said was “tremendous pressure” to drop the request and instead seek to resume peace talks with Israel.

Abbas spoke to reporters en route to the United Nations, where he is to seek U.N. membership for “Palestine” in the West Bank, Gaza and east Jerusalem, territories Israel captured in the 1967 Mideast War.

The U.S. and Israel oppose Abbas’ bid, saying a state can only be established through negotiations. Abbas has said that negotiations remain his preference, but that they must be based on the pre-1967 war frontiers and a halt of all Israeli settlement construction on occupied land.

Abbas said Monday that even if Israel were to agree to those two demands, “we will go to the U.N. because there is no contradiction between negotiations and going to the U.N.”

Officials from the Quartet of Mideast mediators _ the U.S., European Union, Russia and the United Nations _ have been holding talks in recent days in hopes of persuading the Palestinians to drop the U.N. bid and instead resume peace talks with Israel.

The Palestinian leader said he came under “tremendous pressure” in recent days, but that the proposals for a new framework for talks were unacceptable.

Full U.N. membership can only be bestowed by the U.N. Security Council, where the recognition bid could be derailed if fewer than nine of the 15 members vote in favor or if the U.S. uses its veto, as it said it would.

Abbas said his plan, for now, is to go to the Security Council, but suggested that he might change tactics at the last minute and go for the lesser option of General Assembly approval of Palestine as a nonmember observer state. Chances for success are much higher in the General Assembly, which Abbas is to address Friday.

“From now until delivering the speech at the General Assembly, we have no thought except going to the Security Council,” he said. “Then, whatever the decision is, we will sit with the leadership and decide.”

Asked whether he was threatened by U.S. officials trying to stop him from seeking U.N. recognition, Abbas said: “It’s not a matter of threats, but they (the Americans) said that things will be very difficult after September. … We don’t know to what extent. We will know later.”

He said he has not been told officially that U.S. aid to the Palestinians would be cut. For months, congressional Republicans and Democrats have threatened to cut off some $500 million in economic and security assistance if the Palestinians move forward with the U.N. bid.

Abbas said he’s not scheduled to meet with President Barack Obama on the sidelines of the General Assembly.

Concerning the possibility of mass protests in the Palestinian territories, Abbas said the only violence might come from Israeli settlers. In recent months, there has been an upswing in attacks by settlers on Palestinians and their property, some of it as retaliation for attempts by Israeli troops to remove unauthorized settler outposts.

“We will never return to an intifada (uprising). We will never return to violence,” Abbas said. “All our people will do is demonstrate peacefully inside the (Palestinian) cities.”

Abbas, however, holds no sway over the Gaza Strip or its rulers from the violently anti-Israel group Hamas, which drove out forces loyal to Abbas during a power struggle in 2007.

Source

An electic mix of celebrities, crime victims and former police suspects will take part in a judge-led inquiry into the state of Britain’s scandal-tarred press.

Lord Justice Brian Leveson said Wednesday that Harry Potter creator JK Rowling, actors Hugh Grant and Sienna Miller, Formula One boss Max Mosley, the parents of missing girl Madeleine McCann and murdered schoolgirl Milly Dowler will participate.

Leveson has been asked to examine the ethics of the British media and to investigate improper conduct.

The group of around 46 people will give evidence on alleged media intrusion into their private lives.

The inquiry was set up in response to the phone hacking scandal in which journalists at News International are accused of hacking into voice mails.

Source