Finance Blog number 1

Payroll gains in the U.S. probably accelerated in February, buoyed by more seasonable temperatures and a pickup in manufacturing, economists said before reports this week.

Employment increased by 190,000 workers this month, the most since May 2010, after a 36,000 gain in January, when winter storms depressed the count, according to the median forecast of 59 economists surveyed by Bloomberg News ahead of Labor Department data on March 4. The report may also show the jobless rate increased to 9.1 percent from 9 percent.

Business spending on new equipment and gains in exports explain why companies like Intel Corp. are investing in new factories and hiring. Nonetheless, Federal Reserve Chairman Ben S. Bernanke in testimony before Congress this week may reiterate that he is dissatisfied with the pace of expansion and the amount of time it’s taking to bring down unemployment.

Factories remain a bulwark to the expansion Faxless payday loans. The Tempe, Arizona-based Institute for Supply Management’s manufacturing index, due March 1, held at 60.8 in February, the highest level since August 2005, economists forecast in the Bloomberg survey. Readings greater than 50 signal growth.

The jobs report is projected to show factories boosted staff by 25,000 workers this month after a 49,000 January gain that was the biggest since August 1998, the survey showed.

Factory Orders

Orders to U.S. factories probably rose 2 percent last month, the most since September, economists said ahead of a March 4 report from the Commerce Department.

“2010 was a strong recovery year across the board and 2011 is shaping up to be even better for our semiconductor, service and solar businesses,” Michael Splinter, chief executive officer of Applied Materials Inc., said in a teleconference with analysts on Feb. 24.

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Libyan diplomats at the United Nations in Geneva declared they were defecting to the opposition Friday, delivering another blow to Moammar Gadhafi’s flailing regime as international pressure built over his violent attempt to cling to power.

French President Nicolas Sarkozy called on the long-time leader to step down, demanding during a visit to Turkey that Gadhafi “must go,” and calling for an investigation and sanctions against the regime and those who continue to do business with it.

In a dramatic scene at an emergency meeting of the U.N. Human Rights Council, a senior diplomat with the Libyan delegation to the U.N. in Geneva asked the council to stand for a moment of silence to “honor this revolution” _ and then informed the council the entire mission was quitting the government. Council members gave them a standing ovation.

“The young people in my country today, 100 years after the Italian fascist invasion, are today with their blood writing a new chapter in the history of struggle and resistance,” Shaltut told the 47-nation council.

“We in the Libyan mission have categorically decided to serve as representatives of the Libyan people and their free will. We only represent the Libyan people,” he said.

Libya’s top diplomat in Sweden joined the rebellion against Gadhafi, telling The Associated Press he could not accept the “massacre against my own people.” Abdelmagid Buzrigh, the charge d’affaires at the Libyan Embassy in Stockholm, said, however, he would not step down, because he felt he was serving everyday Libyans.

The resignations come after the U.N.’s top human rights official warned that mass killings in Libya, possibly of thousands, require the world to “step in vigorously” and immediately end a brutal crackdown on anti-government protesters in the North African country.

The U.N. high commissioner spoke with the most urgency yet by a U.N. official, citing estimates that thousands may have died at the hands of Gadhafi’s security forces, possibly amounting to crimes against humanity.

“The crackdown in Libya of peaceful demonstrations is escalating alarmingly with reported mass killings, arbitrary arrests, detention and torture of protesters,” Navi Pillay said during the human rights council’s daylong emergency meeting. “Tanks, helicopters and military aircraft have reportedly been used indiscriminately to attack the protesters. According to some sources, thousands may have been killed or injured.”

Diplomats debated whether to call for Libya’s ouster from the council, in what would be an unprecedented suspension of one of its own members. It will also decide whether to heed Pillay’s call for an independent U.N.-led probe of abuses in Libya.

It was only last May that the former U.S. enemy, Libya, was elected to the Geneva-based body as part of a series of attempts at political rehabilitation on the world stage.

European nations were leading the effort to condemn Gadhafi’s regime that has ruled for 42 years but now appears to have lost control of large parts of the country.

“The world is watching you, the world will hold you to account,” British Prime Minister David Cameron told reporters Friday, referring to Gadhafi’s regime. “International justice has a long reach and a long memory.”

Russian President Dmitry Medvedev said in a statement on Friday that Libya must not be allowed any “further exacerbation of the situation, the destruction of the civilian population.” It is the Kremlin’s strongest criticism yet of Libya.

It is the first time that the Geneva-based council has held a special session to scrutinize one of its members.

Nigeria and China were among those who condemned the violence but rejected the call to suspend Libya from the council.

Pakistan’s ambassador, Zamir Akram, said the 57 members of the Organization of the Islamic Conference “strongly condemn the excessive use of force” in Libya.

Also Friday, a Paris-based Libyan official said Libya’s ambassadors to France and to the U.N. cultural and education organization UNESCO had quit.

Gadhafi’s response to the uprising in his country has been the harshest by any Arab leader in the wave of protests that has swept the Middle East recently, toppling the presidents of Libya’s neighbors Egypt and Tunisia.

Suspending Libya’s “rights of membership” under the rules for the council would require two-thirds approval of all the 192 countries in the U.N. General Assembly in New York. Human rights activists said they expect a strongly worded resolution to pass at the council, though it might be watered down by efforts to achieve the broadest possible consensus.

While efforts to ostracize Libya from the council are being driven by Europe, the United States and some Latin American countries, Asian and African nations will be wary of setting a precedent that can be used against them or their allies in future, said Peter Splinter of Amnesty International.

“This is a test of the council and the willingness of some of its more active members, such as Pakistan, South Africa, Cuba, Saudi Arabia, to take a principled stand on human rights,” he said.

In Brussels, NATO was holding an emergency meeting Friday to consider the deteriorating situation in Libya. It had received no requests to intervene and said it would only do so if it were given a United Nations mandate.

The U.N. Security Council also planned to meet later Friday in New York to consider actions against Gadhafi’s regime.

French Foreign Minister Michele Alliot-Marie said France and Britain would press the Security Council for a “total embargo on weapons as well as sanctions, and also the referral of a case to the International Criminal Court for crimes against humanity.”

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Associated Press reporters across Europe contributed to this report.

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Stocks fell for the third straight day Wednesday as surging oil prices overshadowed signs of an improving job market.

Oil prices neared $100 a barrel as clashes in Libya intensified between forces loyal to Moammar Gadhafi and anti-government protesters. Rebels control much of the eastern part of the country, effectively splitting Libya into two.

Libya is the world’s 15th largest exporter of crude, accounting for 2 percent of global daily output. Traders are worried the revolt could threaten Libya’s oil production and spread to other countries in the region, such as oil-rich Saudi Arabia. Higher oil prices can also slow the U.S. economy by increasing transportation costs.

The Dow Jones industrial average fell 79 points, or 0.7 percent, to 12,026. The Standard & Poor’s 500 index fell 7, or 0.5 percent, to 1,300. The Nasdaq composite fell 3, or 0.1 percent, to 2,719.

The Labor Department said fewer people applied for unemployment benefits last week, a sign that the job market is recovering. The four-week average for applications, a figure closely watched by financial analysts, fell to its lowest level in more than two and a half years credit reports free. The Commerce Department said sales of new homes fell significantly in January, another sign that the housing industry is still struggling

Several companies rose after announcing better than expected earnings.

Priceline.com Inc. jumped 6.7 percent after the online travel service reported a 73 percent surge in fourth-quarter earnings and raised its income forecast for the current quarter. Target Corp. rose 2.4 percent after the retailer reported an 11 percent gain in profit. H&R Block Inc. rose 6 percent after the tax preparation company said it expected to report near break-even earnings in its fiscal third quarter.

Bond prices rose, pushing their yields lower. The yield on the 10-year Treasury note fell to 3.42 percent from 3.49 percent late Wednesday.

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A tight hold on expenses helped Macy’s Inc. increase its fourth-quarter net income by 50 percent, but the department store operator said Tuesday that it will raise some prices to contend with rising costs.

The Cincinnati company’s price hikes do not come as much of a surprise, though. Many clothing sellers, including Abercrombie & Fitch and Brooks Brothers, either already have increased spring prices or said they will hike prices soon.

Macy’s, which operates the Bloomingdale’s and Macy’s chains and their websites, remains upbeat on its prospects for the year, forecasting 2011 earnings in a range that includes analysts’ average estimate.

Its stock fell 56 cents, or 2.4 percent, to $23.19 in midday trading.

For the fourth quarter, Macy’s earned $667 million, or $1.55 per share. It posted net income of $445 million, or $1.05 per share, a year earlier.

Adjusted earnings for the period that ended Jan. 29 were $1.59 per share. That excludes charges of 4 cents per share for store closing expenses and to reflect the declining value of some assets.

By comparison, analysts polled by FactSet predicted Macy’s would post adjusted earnings $1.51 per share, and Macy’s forecast $1.44 to $1.49 per share.

Chief Financial Officer Karen Hoguet said during a conference call that selling, general and administrative expenses of approximately $2.25 billion were slightly higher than a year earlier but were better than expected. She credited expense controls, property tax settlements and year-end adjustments.

Macy’s performance is important because it can serve as a barometer of spending by middle- and upper-income shoppers. The company is the second-largest department store operator behind Sears Holdings Corp. Sears will report its earnings results on Thursday.

Quarterly revenue rose 5 percent to $8.269 billion, narrowly missing Wall Street’s average forecast for $8.277 billion.

A key metric _ revenue at stores open at least a year _ fared better, rising 4.3 percent. This comparison is an important gauge of a retailer’s health because it excludes stores that opened or closed during the year.

The figure got a 1.1 percentage-point boost from an increase in online sales of 29.1 percent for the quarter.

Faster-than-expected online growth prompted Macy’s to speed expansion of a distribution center and start construction on a fourth fulfillment center, Hoguet said.

Macy’s has picked up market share from competitors in part by tailoring stock in each store to its region and by placing more emphasis on exclusive brands such as Material Girl from Madonna and her daughter Lourdes. Hoguet said that the company gets about 43 percent of its business from private, exclusive and limited distribution brands.

Macy’s is looking at raising some prices, but Hoguet explained that the retailer is able to add certain features and fashion details to products that allow it to charge higher prices.

She also noted that “a significant portion of our business is in categories that are not impacted by the escalation in raw material prices.”

Still, Hoguet said Macy’s is implementing a number of strategies to deal with pricing concerns, including working closely with its vendors to increase efficiencies.

Hoguet said the company will test and monitor price increases in the spring.

Looking at the full year, Macy’s net income more than doubled to $847 million, or $1.98 per share, This compares with $329 million, or 78 cents per share, in the previous year.

Adjusted earnings increased to $2.11 per share from $1.36 per share.

Annual revenue climbed 6 percent to $25 billion from $23.49 billion.

For fiscal 2010, revenue at stores open at least a year increased 4.6 percent _ the best performance in at least 15 years. The results were also well above Macy’s forecast for a 1 percent to 2 percent rise. Online sales gained 28.7 percent for the fiscal year.

“Fiscal 2010 was a very successful year for Macy’s and Bloomingdale’s based on a combination of strong sales, steady margins and continued expense discipline,” Chairman, President and CEO Terry Lundgren said in a statement.

Macy’s forecasts fiscal 2011 earnings between $2.25 and $2.30 per share. This assumes a 3 percent hike in revenue at stores open at least a year. The company also expects its annual revenue to rise about 3 percent, which implies total revenue of approximately $25.8 billion.

Analysts expect full-year net income of $2.27 per share and revenue of $25.7 billion.

Macy’s runs about 850 Macy’s and Bloomingdale’s department stores in 45 states, the District of Columbia, Guam and Puerto Rico and four Bloomingdale’s outlet stores.

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Members of a high-level delegation sent to resolve the political crisis in Ivory Coast have begun arriving in the country’s commercial hub.

The panel created by the African Union and made up of five African heads of state is awaited by both men who claim to be president of the West African nation, but also by protesters eager to foil their mediation mission.

Hundreds of members of the Young Patriots aligned with the sitting president who is refusing to cede office demonstrated late into the night Sunday in front of Abidjan’s airport. Over the weekend, security forces aligned with incumbent leader Laurent Gbagbo cracked down on opposition neighborhoods where people were attempting to hold meetings.

Witnesses say at least three people were killed in weekend violence.

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European Central Bank President Jean-Claude Trichet declined to comment on press reports saying Ireland’s Anglo Irish Bank Corp. and Irish Nationwide Building Society caused a surge in overnight borrowing costs.

“First of all, I will not discuss the process at all,” Trichet said at a briefing in Paris today after a Group of 20 meeting, when asked about the two Irish lenders. “On the particular case you were mentioning, I have nothing to say. I will see whether with the central bank of Ireland, with the suggestion to mention banks, will have anything to say payday loans.”

The Irish Times reported today that the Dublin-based banks increased emergency borrowing at the ECB as the country’s government prepares to sell assets and deposits of the lenders. The newspaper didn’t say where it obtained the information.

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In some quarters, a German firm’s takeover of the New York Stock Exchange is being portrayed as a harbinger of American decline. It may, instead, be a sign of strength.

If you’re troubled by this deal, watch closely the next time a TV reporter does a live shot from the exchange floor. Do you see much activity?

“It looks emptier than a dead mall,” says Michael Alderson, a professor of finance at St. Louis University. “Twenty years ago, it looked like the Galleria on the day before Christmas. Geography doesn’t matter in a world of electronic trading.”

Electrons certainly don’t care whether they’re moving through wires owned by Deutsche Börse, by an American company called NYSE Euronext or, as the exchange was structured until a 2005 reorganization, by a clubby group of Wall Street insiders.

New York hasn’t lost its relevance as a financial center, but the NYSE is no longer the hub of world financial activity. For decades, big companies like Microsoft and Cisco Systems haven’t wanted or needed an NYSE listing.

Even for stocks that the NYSE does list, most of the trading happens elsewhere. “The volume done on the exchange itself is just about 20 percent of the total volume,” notes Scott Marcouiller, chief technical market strategist at Wells Fargo Advisors. “The rest of it has gone to various electronic sytems.”

Those are run by companies like BATS Global Markets in Kansas City and Direct Edge in Jersey City, N.J. But, again, geography doesn’t matter.

In the big picture, the exciting action isn’t even in stock trading. It’s in derivatives.

Whole categories of derivatives that used to be traded bank to bank, such as credit-default swaps, must be cleared through an exchange to comply with new U.S. financial regulations. NYSE Euronext wants to compete in that arena, and its merger with Deutsche Börse will create the world’s largest futures exchange. That will make it a formidable competitor against other derivatives players like CME Group in Chicago and ICE in Atlanta.

If you want to worry about something, worry about the fact that our weak currency gives European firms an advantage in bidding for U.S. businesses. Worry about whether regulations make it too expensive for American firms to raise capital, but don’t worry about who owns a prominent patch of Wall Street real estate.

“It reminds me of the ’80s, when we were all worried that the Japanese were taking over because they were buying Pebble Beach and Rockefeller Center,” Marcouiller says. That scare was short-lived, and in fact was a symptom of a bubble economy back in Japan.

More importantly, the nothing’s-sacred nature of our financial system is actually what makes America great.

“I call it financial Darwinism,” Marcouiller says. “They (NYSE Euronext) can get on this train that’s speeding faster globally, or they can walk alone and be left far behind.”

Capitalism doesn’t work like that everywhere. When prominent companies in Spain or France or Brazil are threatened with a takeover, political leaders talk seriously about the need to preserve and protect a “national champion.”

Here, we may wax nostalgic about the exchange that was founded under a Manhattan buttonwood tree in 1792, but we also know that nostalgia isn’t good economic policy. If the electrons don’t care who owns the wires and computers that make up a global securities market, then neither should we.

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AT&T Inc.’s CEO Randall Stephenson on Tuesday expressed frustration with the way applications are sold to smart phone users, saying customers should be able to buy an application once and have it work across many devices.

As an alternative to today’s most popular application stores, controlled by Silicon Valley heavyweights Apple Inc. and Google Inc., Stephenson touted an emerging system that lets carriers like AT&T sell apps directly to users.

AT&T Inc. was, until last week, the sole U.S. carrier for the iPhone, which sells apps that run only on Apple devices.

“You purchase an app for one operating system, and if you want it on another device or platform, you have to buy it again,” Stephenson said in a keynote speech at the world’s largest mobile-phone trade show in Barcelona, Spain. “That’s not how our customers expect to experience this environment bad credit payday loans.”

Stephenson highlighted a new standard for Web software, HTML 5, which will allow applications to run on different devices, and the Wholesale Applications Community, which is an “app store” set up by carriers as a counterweight to app stores run by The Wholesale Applications Community announced its commercial launch Monday. From the point of view of software developers, it acts as one app store. The apps are then sold by a variety of phone companies around the world, in stores that carry their own brands.

There are as yet few phones that support WAC applications, but LG Electronics Inc., Samsung Electronics Co., Sony Ericsson, Huawei Technologies Co. and ZTE Corp. have committed to making them.

The four biggest U.S. wireless carriers

Stocks were mixed in early trading Monday, the same day that President Obama unveils his budget proposal for the next fiscal year.

Obama is sending Congress a $3.73 trillion budget that includes a five-year freeze on many domestic spending programs. Republicans and Democrats have argued recently over whether deep spending cuts will slow the economy’s slow recovery.

Bond prices held steady after some of the details of the budget proposal were revealed. The yield on the benchmark 10-year Treasury note was 3.64 percent, unchanged from late Friday. A jump in Treasury bond prices could suggest that investors see U.S. debt as increasingly risky.

The Dow Jones industrial average fell 20 points, or 0.2 percent, to 12,253 in early trading. The S&P 500 rose less than a point to 1,329. The Nasdaq composite gained 4 points, or 0.2 percent, to 2,814. .

MGM Resorts International Inc. fell 3.3 percent after reporting a loss of $139 million last quarter, a little less than analysts had expected. Wal-Mart Stores Inc. lost 1 percent after analysts at JPMorgan downgraded the company.

Stocks ended last week with a moderate gain Friday after the resignation of Egyptian president Hosni Mubarak. The Dow rose to its highest close since June 2008.

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Albert Pujols last year was the fourth-highest-paid employee of any St. Louis company, according to a Post-Dispatch review of publicly available data. But he could rocket to the top spot if he gets the deal he wants from the Cardinals in ongoing contract negotiations.

David Farr

$24.8 million

chief executive

Emerson

Farr is region’s highest-paid business leader, but $16 million of his 2010 earnings will come in stock awards set to pay out in 2014.

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Matt Holliday

$17 million

outfielder

St. Louis Cardinals

After the 2009 season, the Redbirds signed Holliday to a seven-year deal worth $120 million, the team’s biggest contract ever.

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Ahmad Chatila

$16.8 million

chief executive

MEMC

Chatila started at MEMC in 2009, the most recent year figures available, and received $14.5 million in a one-time award of stock options.

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Albert Pujols

$16 million

first baseman

St. Louis Cardinals

Some of Pujols’ paycheck last year was deferred, but he’s due another $16 million this season, the final one in his seven-year contract guaranteed unsecured personal loan. He also earned an estimated $8 million in endorsements from sponsors, according to Bloomberg Business Week.

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Chris Carpenter

$14.5 million

pitcher

St. Louis Cardinals

Carpenter is nearing the end of a five-year, $64 million deal. The team has the option to extend his contract in 2012 for $15 million.

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Hugh Grant

$13.2 million

chief executive

Monsanto Corp.

Grant’s $1.4 million annual salary was frozen last year, but stock options and a one-time stock award of $5.6 million boosted his pay considerably.

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Sam Bradford

$13 million

quarterback

St. Louis Rams

The Rams’ rookie signal-caller just finished the first season of his six-year, $78 million contract. If he meets certain incentives, he could earn up to $86 million.

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Sources: Securities and Exchange Commission, ESPN, staff research.

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