Finance Blog number 1

January 14, 2012

U.K. Factory-Gate Prices Unexpectedly Fell in December on Fuel-Price Drop - Bloomberg

Filed under: Crisis, loans — Tags: , , , — Sun @ 10:48 am

U.K. factory output prices unexpectedly fell in December for the first time in 18 months as the cost of petroleum products such as gasoline plunged.

The cost of goods at factory gates declined 0.2 percent from November, the Office for National Statistics said today in London. Annual price growth slowed to 4.8 percent, the least in a year. On the month, economists had forecast a 0.1 percent gain in December, according to the median of 17 estimates in a Bloomberg News survey.

Declines in prices for commodities such as oil may ease inflation pressure in the economy as producers and manufacturers pass lower costs onto consumers. The Bank of England, which maintained its bond-purchase target at 275 billion pounds ($422 billion) yesterday, has forecast that consumer-price growth will ease

January 11, 2012

Republican Senators Criticize Fed Recommendations on Housing - Bloomberg

Filed under: Crisis, Uncategorized — Tags: , , , — Sun @ 4:52 am

Republican Senators Orrin Hatch of Utah and Bob Corker of Tennessee criticized the Federal Reserve for overstepping its role by making policy recommendations on how the U.S. government should try new ways to spur the housing market.

Hatch, the top-ranking Republican on the Senate Finance Committee, said the housing study sent by Chairman Ben S. Bernanke to Congress last week, along with recent Fed speeches,

December 30, 2011

Germany May Speed Payments to Bailout Fund - Bloomberg

Filed under: Crisis, lenders — Tags: , , , — Sun @ 5:44 pm

Germany

December 25, 2011

Toronto stock market opens higher on rising commodities, positive economic data

Filed under: Crisis, business — Tags: , , , — Sun @ 11:40 am

+%3Cp%3ETORONTO%97The+Toronto+stock+market+opened+higher+as+oil+and+gold+prices+rose+and+traders+digested+positive+economic+news.%3C%2Fp%3E+%3Cp%3EThe+S%26P%2FTSX+composite+index+was+up+25.01+points+at+11%2C660.39.%3C%2Fp%3E+%3Cp%3EThe+Canadian+dollar+added+0.24+of+a+cent+to+96.67+cents+US%2C+with+gains+accelerating+after+the+release+of+statistics+showing+wholesale+trade+grew+more+than+expected+in+October.%3C%2Fp%3E+%3Cp%3EWall+Street+also+opened+higher%2C+with+the+Dow+Jones+up+46.7+points+11%2C913%2C+the+Nasdaq+ahead+12.4+points+at+2%2C567.73+and+the+broader+S%26P+500+up+4.7+points+at+1%2C224.34.%3C%2Fp%3E+%3Cp%3EAnd+commodities+were+mostly+higher%2C+with+the+January+oil+contract+up+85+cents+to+%2494.38.%3C%2Fp%3E+%3Cp%3EThe+February+gold+contract+added+US%245.70+to+US%241%2C603.60+per+ounce%2C+while+copper+shed+a+penny+to+US%243.32+per+pound.%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fwww.thestar.com%2Farticle%2F1104172%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

December 8, 2011

Ford to resume paying dividend

Filed under: Crisis, lenders — Tags: , , , — Sun @ 10:04 pm

Ford Motor Co. said Thursday it will resume paying a dividend in March, more than five years after it halted payments because of its financial problems.

The company’s board approved a quarterly dividend of 5 cents per share. It will be paid on March 1 to shareholders of record as of Jan. 31.

“We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow,” Executive Chairman Bill Ford said in a statement. “The board believes it is important to share the benefits of our improved financial performance with our shareholders.”

Its stock pared its loss for the day after the announcement. Ford shares fell 4 cents to $11.04 per share in midday trading. Before the dividend was announced, it had traded as low as $9.84 earlier in the session.

The company stopped paying a dividend in September 2006, when it was deeply in debt. The company lost $12.7 billion that year fast cash advance.

But since then Ford has shed brands like Volvo and Mercury, closed factories, offered buyouts to thousands of employees and earned praise for new products like the Ford Explorer SUV and Ford Fiesta subcompact. Ford reported its tenth straight profitable quarter in the third quarter of this year, and it earned $6.6 billion in 2010.

“We have demonstrated our capability to finance our plans and we are confident that we can begin to pay a dividend that will be sustainable through economic cycles,” Chief Financial Officer Lewis Booth said in a statement.

Ford spokesman Todd Nissen said the New York Stock Exchange halted trading of Ford shares temporarily just before the noon announcement. Trading resumed about 10 minutes later.

Source

December 2, 2011

Cupples 7 situation remains shaky

Filed under: Crisis, marketing — Tags: , , , — Sun @ 10:16 am

ST. LOUIS

November 30, 2011

UK govt minister may have had computers hacked

Filed under: Crisis, loans — Tags: , , , — Sun @ 7:24 pm

British police are investigating whether computers belonging to former government minister Peter Hain were hacked by the tabloid News of the World while he was the official responsible for Northern Ireland, Hain’s office said Wednesday.

It said in a statement that Hain had met with police officers “regarding an investigation into the alleged hacking of his official and personal computers during his time as Secretary of State for Northern Ireland.”

Hain was Northern Ireland secretary between 2005 and 2007 and would have had access to classified intelligence information.

Police are investigating phone hacking by the Rupert Murdoch-owned newspaper have set up a parallel probe into whether computers also were targeted.

Murdoch’s News International said it was “co-operating fully with the police” on all investigations.

Earlier Wednesday, Alastair Campbell, Tony Blair’s former spin doctor, told a media ethics inquiry set up in the wake of the hacking scandal that a minority of journalists had turned the country’s press “putrid” and tarnished the whole industry. Campbell said journalists such as those who hacked phones for the News of the World tabloid had “besmirched the name” of almost every other reporter in the country.

“A very, very small number of people have completely changed the newspaper industry,” said Campbell, who is credited with running a sophisticated _ and manipulative _ media operation when he worked for the then-prime minister at 10 Downing Street between 1997 and 2003.

“We have a press that has just become frankly putrid in many of its elements,” Campbell said, criticizing the “inhumane treatment” meted out to celebrities and ordinary people alike by newspapers in relentless pursuit of exclusives.

Campbell was giving evidence to Judge Brian Leveson’s inquiry, which was established to examine media ethics and practices and recommend changes to Britain’s system of media self-regulation.

Prime Minister David Cameron set up the inquiry in response to the scandal that began with the exposure of illegal eavesdropping by the News of the World.

Murdoch shut down the tabloid in July after evidence emerged that it had accessed the mobile phone voice mails of celebrities, politicians and even crime victims in its search for scoops.

Campbell said police had told him details about his working life were included in the notes of private investigator Glenn Mulcaire, who worked for the News of the World and was jailed in 2007 for phone hacking.

In a written witness statement, Campbell said he suspected the phone of Blair’s wife, Cherie, had been hacked _ although he acknowledged he had no proof.

He said stories about her “often involved details of where Cherie was going, the kind of thing routinely discussed on phones when planning visits, private as well as public.”

He said phone hacking could explain how the Daily Mirror learned that Cherie Blair was pregnant in 1999.

“As I recall it, at the time only a tiny number of people in Downing Street knew that she was pregnant,” Campbell said. “I have heard all sorts of stories as to how the information got out, but none of them strike me as credible.”

Campbell told the inquiry he had accused Cherie Blair’s adviser Carole Caplin of tipping off the press about Cherie Blair’s whereabouts. Caplin has since been told by police her phone may have been hacked.

Campbell said he had apologized to Caplin for blaming her.

More than a dozen current and former News of the World journalists and editors have been arrested, and two top London police officers and several senior Murdoch executives have resigned over the still-unfolding hacking scandal.

Police said they had made a new arrest, a 31-year-old woman detained in northern England on Wednesday. Her name was not disclosed, although media including Sky News _ which is 39 percent owned by Murdoch’s News Corp. _ identified her as a former News of the World reporter.

The only people charged with crimes so far are Mulcaire and former News of the World reporter Clive Goodman, who were jailed in 2007 for hacking into the voicemails of royal aides.

Source

November 25, 2011

Italy pays sharply higher rates in auctions

Filed under: Crisis, management — Tags: , , , — Sun @ 10:24 pm

Italy had to pay sharply higher borrowing rates to entice investors to part with their cash during a couple of auctions Friday, in an acute sign that Europe’s crippling debt crisis is laying siege to the eurozone’s third-largest economy.

The auction results are another sign that the country’s new technocratic government, faces a big battle to convince that it has a strategy to get a grip on the country’s massive debts.

The country had to pay an average yield of 7.814 percent to raise euro2 billion in two-year bills. That rate was sharply higher on the 4.628 percent it had to pay in the previous auction and represented a new high since the creation of the euro in 1999.

And even raising euro8 billion for six months proved exorbitantly expensive. The yield for this auction spiked to 6.504 percent, nearly double the 3.535 percent rate in the last equivalent auction no faxing payday loans.

Following the grim news on the auction front, the country’s borrowing rates in the markets sky-rocketed, with the ten-year yield spiking 0.34 percentage point to 7.30 percent _ above the 7 percent threshold that is widely-considered unsustainable in the long-run and eventually proved the point at which Greece, Ireland and Portugal had to seek financial bailouts.

The renewed rise is likely to renew tensions over Italy’s debts, which stand at euro1.9 trillion ($2.6 trillion), or a huge 120 percent of economic output. Europe’s current anti-crisis measures are too not big enough to deal with Italy’s debt mountain.

Source

November 24, 2011

Asia stocks muted after poor German debt auction

Filed under: Crisis, marketing — Tags: , , , — Sun @ 7:28 am

Asian stock markets edged higher Thursday as speculation that China might ease its monetary policy soothed fears that the German economy _ Europe’s strongest _ may be succumbing to the continent’s debt crisis.

Benchmark oil hovered above $96 per barrel while the dollar fell against the euro and the yen.

Hong Kong’s Hang Seng posted a 0.5 percent gain at 17,944.72. South Korea’s Kospi rose 0.4 percent to 1,790.29 and Australia’s S&P/ASX 200 gained marginally to 4,052.30. Benchmarks in Singapore and Taiwan also rose.

Japan’s Nikkei 225, reopening after a one-day public holiday, fell 1.3 percent to 8,208.47. Shares in India, Malaysia and Indonesia also fell.

Speculation that China’s central bank was aiming to ease its tight monetary policy helped spur a wave of buying in Hong Kong, analysts said. But the official Xinhua News Agency said Thursday the move _ lowering reserve requirements for six rural banks in eastern Zhejiang _ was administrative rather a policy shift. The banks’ reserve requirements had been raised a year earlier after they failed to lend enough to farming businesses.

There have been signs that China’s campaign of interest rate hikes and credit controls to tame stubbornly high inflation has been working, giving it leeway to ease monetary policy as the world economy stumbles.

“The positive catalyst today is the expectation that the China tightening cycle might loosen,” said Jackson Wong, vice president at Tanrich Securities in Hong Kong.

The chatter helped push up Chinese banking shares. Hong Kong-listed Agricultural Bank of China Ltd. jumped 3.3 percent and Industrial & Commercial Bank of China, the country’s biggest commercial lender, rose 1.9 percent.

Global markets were spooked Wednesday by the poor results at an auction of German debt, which met with only 60 percent demand. Germany’s Financial Agency blamed “the extraordinarily nervous market environment payday loans.”

The weak buying suggests that Europe’s crisis might be infecting strong nations that are crucial to keeping the euro currency afloat. Germany bears much of the burden of bailing out weaker neighbors such as Greece and Portugal.

Analysts at Credit Agricole CIB said the European debt crisis remains “the major concern for the markets” and that the German debt auction signals the spread of “the contagion to hard core economies” in the region.

Borrowing costs for Italy and Spain rose from levels that already were considered dangerously high. Europe lacks the resources to bail out those countries, its third- and fourth-biggest economies.

In the U.S., the government released a mixed batch of economic reports. Slightly more people applied for unemployment benefits last week, a sign that layoffs continue.

Consumer spending was sluggish but incomes rose a bit more than expected. Orders for long-lasting manufactured products fell for a second month and business investment dropped off.

The Dow fell 2.1 percent to close at 11,257.55. The Standard & Poor’s 500 index fell 2.2 percent to 1,161.79. The Nasdaq fell 2.4 percent to 2,460.08.

U.S. markets will be closed on Thursday for the Thanksgiving holiday and will have shortened hours on Friday.

Benchmark crude for January delivery was up 4 cents at $96.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.84 to settle at $96.17 in New York on Wednesday.

In currency trading, the euro rose to $1.3379 from $1.3326 late Wednesday in New York. The dollar dropped to 77.07 yen from 77.35 yen.

Source

November 22, 2011

Owners of Belleville hospital plan purchase of land for O’Fallon, Ill., facility

Filed under: Crisis, USA — Tags: , , , — Sun @ 4:36 pm

O’FALLON, ILL. 

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