Finance Blog number 1

January 6, 2012

Stock futures fall on concern over Europe’s banks

Filed under: mortgage, technology — Tags: , , , — Sun @ 8:04 am

U.S. stock futures are falling Thursday as the European debt crisis again becomes the key driver of market sentiment.

Stock markets in London, Germany and France have all declined. The euro has dropped to a 15-month low against the dollar.

The concern in the markets has centered on the state of Europe’s banks following UniCredit’s announcement Wednesday that it was selling new shares at a large 69 percent discount to Tuesday’s closing price.

Banks are an integral part of the debt crisis because they hold government bonds. A default or steep fall in the value of government bonds could inflict heavy losses on banks and choke off credit to the European economy. That’s why regulatory authorities want Europe’s banks to raise their buffers by euro115 billion (149 billion) over the next few months. The worry in the markets is that banks will have to offer sharp discounts to raise the funds.

U.S. economic reports have the potential to shift sentiment. Key releases later Thursday include the Institute for Supply Management’s monthly survey of the services sector as well as indicators on the pace of hiring in the private sector.

The latter may affect market expectations for Friday’s closely-watched nonfarm payrolls data for December. The figures often set the market’s tone for a week or two after their release. The expectation is that the U No teletrak payday loan.S. economy generated around 150,000 jobs during December.

Positive economic news propelled U.S. stocks to a big rally on Tuesday. Those gains held Wednesday as automakers reported strong sales in December.

Less than two hours before trading opens in New York, futures on the Dow Jones industrial average are down 55 points to 12,301. Futures for the broader S&P 500 index have fallen 7 points to 1,266.

European stocks fell, though most indexes remained higher for the year so far. Germany’s DAX was down 0.7 percent at 6,066 while the CAC-40 fell 1 percent to 3,163. The FTSE 100 index of leading British shares was 0.7 percent lower at 5,629.

Earlier in Asia, Japan’s Nikkei 225 index fell 0.8 percent to close at 8,488.71. South Korea’s Kospi index lost 0.1 percent at 1,863.74, while Hong Kong’s Hang Seng Index rose 0.5 percent to 18,813.41. Benchmarks in Singapore and Taiwan were also higher.

Mainland China’s benchmark Shanghai Composite Index lost 1 percent to 2,148.45, its lowest level in almost three years. The Shenzhen Composite Index lost 3.5 percent to 813.99. More than 100 companies plunged to the daily limit of 10 percent.

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December 10, 2011

UK threatens eurozone, others over EU institutions

Filed under: technology, term — Tags: , , , — Sun @ 1:00 pm

Britain’s prime minister is threatening that he may not allow a group of 23 European Union states that plan to set up their own treaty to use EU institutions.

David Cameron says “The institutions of the European Union belong to the European Union, belong to the 27″ member states.

The 17 euro states and six other EU states early Friday agreed to create a new treaty that will allow them to introduce stricter fiscal rules in the hope of containing a worsening debt crisis payday loans.

They plan to rely on the European Commission and the European Court of Justice to enforce those rules.

Cameron said it was not in the U.K.’s interest to join the new treaty because he could not get special safeguards for the country’s financial center.

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December 4, 2011

Ultraconservative party to push for Islamic Egypt

Filed under: online, technology — Tags: , , , — Sun @ 1:12 am

Anticipating a strong presence in the new Egyptian parliament, ultraconservative Islamists outlined plans Friday for a strict brand of religious law, a move that could limit personal freedoms and steer a key U.S. ally toward an Islamic state.

Egypt’s election commission announced only a trickle of results from the first round of parliamentary elections and said 62 percent of eligible voters cast ballots in the highest turnout in modern history.

However, leaked counts point to a clear majority for Islamist parties at the expense of liberal activist groups that led the uprising against Hosni Mubarak, toppling a regime long seen as a secular bulwark in the Middle East.

The more pragmatic Muslim Brotherhood is poised to take the largest share of votes, as much as 45 percent. But the Nour Party, which espouses a strict interpretation of Islam in which democracy is subordinate to the Quran, could win a quarter of the house, giving it much power to affect debate.

A spokesman, Yousseri Hamad, said his party considers God’s law the only law.

“In the land of Islam, I can’t let people decide what is permissible or what is prohibited,” Hamad told The Associated Press. “It is God who gives the answers as to what is right and what is wrong.”

The Nour Party is the main political arm of the hard-line Salafist Muslim movement, which espouses a strict form of Islam similar to that practiced in Saudi Arabia. Salafis, who often wear long beards and seek to imitate the life of the Prophet Muhammad, speak openly about their aim of turning Egypt into a state where personal freedoms, including freedom of speech, women’s dress and art, are constrained by Islamic law _ goals that make many Egyptians nervous.

Salafis object to women in leadership roles, citing Muhammad as saying that “no people succeed if led by women.” However, when election regulations forced all parties to include women, Salafi cleric Yasser el-Bourhami relented, saying that “committing small sins” is better than “committing bigger ones” _ by which he meant letting secular people run the government.

In the end, the party put women at the bottom of its lists, represented by flowers since women’s photos were deemed inappropriate.

This week, Salafi cleric and parliamentary candidate Abdel-Monem Shahat caused a stir by saying the novels of Egypt’s Nobel laureate Naguib Mahfouz, read widely in Egyptian schools, are “all prostitution.”

Salafis are newcomers on Egypt’s political scene. They long shunned the concept of democracy, saying it allows man’s law to override God’s. But they formed parties and entered politics after Mubarak’s ouster, seeking to enshrine Islamic law in Egypt’s new constitution.

By contrast, the Muslim Brotherhood, Egypt’s largest and best organized political group, was officially banned under Mubarak but established a nationwide network of activists who built a reputation for offering services to the poor. After Mubarak’s fall, the group’s Freedom and Justice Party campaigned fiercely, their organization and name-recognition giving them a big advantage over newly formed liberal parties.

Stakes are particularly high since the new parliament is supposed to oversee writing Egypt’s new constitution. The Supreme Council of the Armed Forces, which took control of the country when Mubarak fell, has tried to impose restrictions on membership in the 100-member drafting committee. The Muslim Brotherhood has said it will challenge the move, and a strong showing by Islamists in the elections could boost its popular mandate to do so.

Hamed, the Nour Party spokesman, said democracy can’t pass laws that contradict religion.

“We endorse Egyptian democracy,” he said. “However, I don’t give absolute freedom to people to legislate to themselves and decide on what is right or wrong.

“We have God’s laws that tell us that.”

He suggested, for example, that alcohol should be banned and that a state agency could penalize Muslims for eating during the day during the holy month of Ramadan, when the devout fast from dawn to dusk.

The Muslim Brotherhood and Salafis have both cooperated and disagreed in the past.

They tried to form an electoral alliance, which broke down over disagreements about including Christians and women in their electoral lists. However, the two parties campaigned together in some areas and declined to contest certain seats so as not to split the Islamist vote and allow liberal candidates to win.

The strong Islamist showing worries liberal parties who fear the two groups will work to push a religious agenda. It has also caused many youth activists who launched the anti-Mubarak uprising to feel that their revolution has been hijacked. Still, the liberal Egyptian Bloc coalition, which is competing with the Salafis to be the second-largest parliamentary bloc, could counterbalance hard-line elements.

Cooperation between the Brotherhood and Salafis in parliament isn’t guaranteed, said Shadi Hamid, Middle East expert with the Brookings Doha Center. The Brotherhood is a pragmatic organization that will work with other parties to achieve its goals, while the Salafis shun compromise.

Once the parliament is seated, Hamid expects the Brotherhood to focus on establishing a strong parliamentary system, reforming state institutions and boosting the economy _ goals they share with liberal groups.

“Banning alcohol or passing laws on women’s dress are not on their priority list, and they see these issues as a distraction from the issues at hand,” he said.

Still, a strong Salafist bloc in parliament will have a “massive effect,” he said, by giving the group a larger platform for its views.

“The Salafis are going to insert religion into the public debate in a way that would not have happened otherwise,” he said.

Many in Egypt’s Coptic Christian population, which makes up 10 percent of the country, fear the Salafis will push for laws that will make them second-class citizens.

Even some religious Egyptians see the Salafi as too extreme.

“I am religious and don’t want laws that go against my beliefs, but there shouldn’t be religious law,” said Ahmed Abdel-Rahman, a geography teacher. “I don’t want anyone imposing his religious views on me.”

The election commission said Friday that more than 8 million eligible voters _ 62 percent _ participated in the first round. But it announced final results in only a few races. It remains unclear when complete final results will be released.

This week’s vote, held in nine provinces, will determine about 30 percent of the 498 seats in the People’s Assembly, parliament’s lower house. Two more rounds, ending in January, will cover Egypt’s other 18 provinces.

Source

November 21, 2011

Big payouts from startups excite Silicon Valley

Filed under: legal, technology — Tags: , , , — Sun @ 1:24 am

Everyone dreams of striking it rich _ and what they would do with such a windfall. A new house? A fancy car? Maybe designer clothes selected by a personal shopper.

For some in Silicon Valley, those wishes may soon come true.

As restrictions on selling stock are lifted at a handful of sizzling startups, early investors and employees are preparing for big payouts.

What they do with their riches is anyone’s guess, but luxury retailers and wealth managers say they’re expecting a bump in business and have been preparing for this new crop of Internet millionaires.

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November 11, 2011

Asia stocks gain amid signs of progress in Europe

Filed under: loans, technology — Tags: , , , — Sun @ 7:52 am

Asian stock markets were mostly higher Friday following signs of progress in debt plagued Europe _ a successful bond sale in Italy and the naming of a new leader in Greece.

Hong Kong’s Hang Seng gained 0.4 percent to 19,035.94 and South Korea’s Kopsi added 1.2 percent to 1,835.34. Australia’s S&P/ASX 200 rose 0.2 percent at 4,251.70. Benchmarks in Singapore, Taiwan and New Zealand also rose.

After opening higher, Japan’s Nikkei 225 index slipped 0.1 percent to 8,492.36,

Investors were calmed after Greece _ which is struggling to pull back from the brink of bankruptcy _ named Lucas Papademos, a respected economist, as its new prime minister on Thursday.

An additional sign of stability came after Italy was able to borrow $6.8 billion at lower interest rates than analysts expected. On Wednesday, the rise in Italy’s 10-year bond yield to well over 7 percent stoked panic in financial markets that the country was heading toward a Greece-style debt crisis.

Traders are also fretting that debt troubles in Italy and Greece could blow up into a massive liquidity crisis and lead to a global financial meltdown payday advance low fees.

In New York on Thursday, the Dow Jones industrial average rose 1 percent to close at 11,893.86. It plunged 389 points Wednesday after Italy’s borrowing rates soared and talks in Greece to name a new prime minister broke down.

Positive economic data from the U.S. also boosted hopes that the world’s No. 1 economy would avoid a double dip recession.

The Labor Department reported early Thursday that the number of people applying for unemployment benefits in the U.S. fell to 390,000 last week _ the fewest since April. The data suggested layoffs are easing and that the economy grew slightly better over the summer than estimated.

The S&P 500 index gained 0.9 percent to 1,239.70. The Nasdaq rose 0.1 percent to 2,625.15.

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October 26, 2011

Express Scripts gives strong post-Walgreen outlook

Filed under: economics, technology — Tags: , , , — Sun @ 2:36 am

Pharmacy benefit manager Express Scripts said it expects to keep more than 95 percent of its prescription volume in 2012 even though it plans to stop doing business with Walgreen Co., the largest drugstore chain in the U.S.

St. Louis County-based Express Scripts and Walgreen have been unable to come to terms on a new contract to replace a deal that expires Dec. 31. Express Scripts pays Walgreen to fill prescriptions, but after the contract ends, Walgreen won’t fill prescriptions for most Express Scripts members.

The dispute became public in June, after Walgreen said it would stop handling Express Scripts claims because Express Scripts would not pay it enough money and wanted too much control over their relationship.

Walgreen runs close to 7,800 stores, and it fills about 20 percent of all prescriptions in the U.S. Walgreen has said it would lose $5.3 billion in annual revenue by parting with Express Scripts.

Express Scripts said Tuesday its profit rose 8 percent in the third quarter as revenue increased and selling, general and administrative costs fell. The St. Louis company’s net income grew to $324.7 million, or 66 cents per share, from $301.5 million, or 56 cents per share. It earned 79 cents per share excluding one-time costs, most of which were connected to its planned acquisition of competitor Medco Health Solutions Inc. Revenue grew 3 percent $11.57 billion from $11.25 billion.

Analysts expected Express Scripts Inc. to report a profit of 76 cents per share and $11.28 billion in revenue, according to FactSet.

The company handled 184.8 million adjusted prescription claims during the quarter, down 1 percent from a year ago. Medication use has declined because of high unemployment and because some consumers are skipping trips to the doctor to save money. The company handled 556.6 million adjusted prescriptions in the first three quarters of 2011, also down 1 percent from the same period last year. Adjusted prescriptions count 90-day mail order prescriptions as three one-month prescriptions.

Earlier this month the company cut its annual profit guidance because of those trends and said it was not filling as many prescriptions as it had expected. Express Scripts said Tuesday it still expects to earn between $2.95 to $3.05 per share in 2011. Analysts expect $3.01 per share, on average.

The company currently expects to fill less than 750 million adjusted prescriptions in 2011, down from 753.9 million in 2010. Express Scripts expects medication use in 2012 to be about equal to current levels. It said total adjusted prescriptions could be unchanged from 2011, or they could grow as much as 2 percent. It did not provide a profit forecast, citing its planned $29.1 billion acquisition of Medco.

The companies announced the deal in July, and Express Scripts hopes to complete the purchase in the first half of 2011. Antitrust regulators and Congress are scrutinizing the transaction. The companies have said the larger Express Scripts would be able to use its size to save money for consumers and health plans, but critics have said the deal will reduce health care choices and may not deliver the savings.

If the cash-and-stock deal goes through, the new Express Scripts Holding will be the biggest pharmacy benefits manager in the U.S. by far, with about a 30-percent share of the market. Combined, Express Scripts and Medco handled about 1.7 billion prescriptions in 2010.

Express Scripts said its results in the third quarter included 8 cents per share in professional fees and financing costs related to the Medco deal. The remaining charges including 4 cents per share in expenses related to its purchase of NextRx in April 2009, and a penny per share in other amortization costs.

Shares of Express Scripts fell $1.98, or 4.9 percent, to $38.47 on Tuesday. In aftermarket trading, the stock picked up $1.23, or 3.2 percent, to $39.70.

 

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October 6, 2011

US futures rise ahead of European rates decision

Filed under: online, technology — Tags: , , , — Sun @ 3:28 pm

U.S. stock futures are rising sharply ahead of a meeting of the European Central Bank that could provide solutions to Europe’s debt crisis.

Investors expect that officials at the European Central Bank will announce plans to provide support to the region’s struggling banks.

In the U.S., investors will be looking toward a report on first-time applications for unemployment benefits last week.

Shares of Apple Inc. fell 1 percent in premarket trading. The company says co-founder and former CEO Steve Jobs died Wednesday.

Two hours before the opening bell, Dow futures rose 115 points, or 1.1 percent, to 10,953. S&P 500 futures rose 12, or 1 percent, to 1,147. Nasdaq 100 futures gained 16, or 0.7 percent, to 2,183.

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August 26, 2011

Bernanke proposes no new steps to boost economy

Filed under: Crisis, technology — Tags: , , , — Sun @ 8:20 pm

Chairman Ben Bernanke is proposing no new steps by the Federal Reserve to boost the economy while hinting that Congress may need to act to stimulate hiring and growth.

Bernanke said Friday that while record-low interest rates will promote growth over time, the weak economy requires further help in the short run. He is speaking at an annual economic conference in Jackson Hole, Wyo.

His speech follows news that the economy grew at an annual rate of just 1 percent this spring and 0.7 percent for the first six months of the year. Only slightly healthier expansion is foreseen for the second half.

Bernanke said he’s optimistic that the job market and the economy will return to full health in the long run.

Stocks fell lower after the speech was released. The Dow had been down about 78 points, about 0.7 percent, shortly before 10 a.m. The loss quickly extended to 145 points.

In his speech, Bernanke left open the possibility that the Fed will take further steps to strengthen the economy. He said its September meeting will be held over two days instead of just one.

The Fed chairman said long-term deficit reduction is necessary. But he emphasized that future economic health could be jeopardized if hiring and growth are not strengthened now cash advance to savings account.

“Fiscal policymakers should not … disregard the fragility of the current economic recovery,” he said.

Bernanke also was critical of Congress’ handling of this summer’s battle over raising the debt ceiling. He said it disrupted the economy, and another episode like that could have long-term negative consequences.

Bernanke’s speech comes at a critical moment for the economy. Some economists worry that another recession might be near.

A big reason is that consumer spending has slowed. Home prices are depressed. Workers’ pay is barely rising. Household debt loads remain high.

All that, compounded by Europe’s debt crisis, has spooked the stock markets and unnerved consumers. Congress is focused on shrinking deficits and seems unlikely to back any new spending to try to energize the economy.

That’s why many have looked with anticipation to the Fed to do more. The central bank has already kept short-term interest rates near zero for 2 1/2 years. And earlier this month, it said it would keep them there through mid-2013.

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August 25, 2011

Suburban Journals to cut some print editions, 20 staffers

Filed under: business, technology — Tags: , , , — Sun @ 5:24 am

The Suburban Journals on Wednesday announced the layoff of 20 staffers, the elimination of some print editions and a shift in emphasis to online coverage.

The Journals, along with the Post-Dispatch, are owned by Lee Enterprises, which could face bankruptcy unless it can refinance about $1 billion in debt by an April deadline.

The Journals will discontinue publication of full Sunday Journals in St. Charles County and Illinois after Aug. 28. The Wednesday editions in North St. Louis County and Monroe, St. Clair and Jefferson counties will also be discontinued after the Sept. 7 issue.

The Journals will continue to publish six Wednesday print editions in western and eastern St. Charles County, West and South St. Louis County, Collinsville and Granite City.

In addition, both news and sports stories will be updated more frequently online at stltoday.com/neighborhoods and stlhighschoolsports.com, said Publisher Dave Bundy in a written statement.

“Focusing more on digital news delivery in some areas frees us from the weekly print cycle and allows us to continue providing the best community coverage available to the Greater St. Louis area,” according to Bundy’s statement. “Our print Journals, digital coverage and niche products provide a full array of ways to serve readers and advertisers, and we can use the medium or combination that works best for the message.”

The announcement comes on the heels of a layoff of 23 workers at the Post-Dispatch in June. Those cuts included production, technology and marketing employees, but no journalists. This month, however, the company announced that it would seek to cut up to 10 newsroom employees through a voluntary severance offer. 

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August 12, 2011

Mattel to appeal $309M judgment in Bratz doll case

Filed under: Canada, technology — Tags: , , , — Sun @ 6:00 am

Mattel Inc. is planning to appeal a federal judge’s award of more than $309 million to rival toy maker MGA Entertainment Inc. in the fight over ownership of the popular Bratz fashion doll line.

The toy giant’s attorneys filed papers Thursday declaring their intent to appeal last week’s decision by U.S. District Court Judge David O. Carter.

Mattel said in a statement that it wants to find a resolution “that allows us to conclude this litigation on terms that are reasonable and fair.”

Carter awarded MGA $172.5 million for damages related to trade secret appropriation. He also awarded MGA and CEO Isaac Larian more than $137 million for copyright infringement, breach of contract and other issues.

MGA attorney Jennifer Keller told City News Service she’s confident her client will prevail.

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