Archive for the 'online' Category

16
Mar

Dodd Lays Out Details of Financial Overhaul Bill

By alfredlester Closed
Categories: Free blog Tips, business, news, online and power
Tags: , , , ,

WASHINGTON — Senate Democrats, with the backing of the Obama administration, took a big step forward on Monday toward adopting the most sweeping overhaul of financial regulations since the Depression, calling on Republicans to join them to adopt the measure in the thick of an election year.

Exactly 18 months since Lehman Brothers filed for bankruptcy, setting in motion a financial crisis that required a federal bailout of unprecedented scope, the chairman of the Senate Banking Committee laid out a bill that aims to ensure stability for the financial system; close regulatory loopholes that had allowed excessive risk-taking; and protect consumers from the kinds of abusive loans that brought down the housing market.

The bill would enshrine Washington’s role in policing Wall Street, creating a nine-member council, led by the Treasury secretary, to detect systemic risks to the markets and placing the Federal Reserve in charge of all of the nation’s largest and most interconnected financial institutions.

The banking committee chairman, Christopher J. Dodd, Democrat of Connecticut, noted that negotiators from the two parties were not far apart when he announced last week that Democrats would proceed with their own bill.

“We will have financial reform adopted this year in the Congress of the United States,” Mr. Dodd said.

Even so, the measure’s prospects remained far from certain.

The major flashpoints will include, among other things, the scope of authority for a new Consumer Financial Protection Bill to be established within the Fed; the scope of exemptions under new rules governing the trade of derivatives; and the mechanism by which the government could seize and dismantle a large company on the verge of failure.

Another provision is one intended to curb Wall Street’s influence over the Federal Reserve Bank of New York. Its president would be appointed by the president of the United States, not by a board that includes representatives of member banks business card design.

Mr. Dodd estimated that there was substantial bipartisan agreement on 9 of the bill’s 11 titles, the exceptions being consumer protection and corporate governance.

The bill “reflects an awful lot of work that has gone on between Democrats and Republicans on this committee,” Mr. Dodd said, taking pains to praise the top Republican on the committee, Senator Richard C. Shelby of Alabama, and another member, Senator Bob Corker of Tennessee, who had spearheaded Republican negotiations in recent weeks.

The bill quickly attracted praise from observers — if not lawmakers — on both sides of the aisle.

“This will ensure that large financial institutions face the same resolution process as small banks and eliminate the possibility of future government bailouts,” said Sheila C. Bair, a Republican who is chairwoman of the Federal Deposit Insurance Corporation.

Elizabeth Warren, a Harvard law professor who is chairwoman of the Congressional Oversight Panel that oversees the Troubled Asset Relief Program, said in a statement, “Despite the banks’ ferocious lobbying for business as usual, Chairman Dodd took an important step today by advancing new laws to prevent the next crisis. We’re now heading toward a series of votes in which the choice will be clear: families or banks.”

Douglas J. Elliott, a former investment banker and now a fellow at the Brookings Institution, said the proposal appeared to “represent a major improvement to the status quo, but political compromises significantly diminish its effectiveness compared to an ideal set of reforms.”

Dodd Lays Out Details of Financial Overhaul Bill

14
Mar

Retail sales rise as shoppers fight winter blues

By alfredlester Closed
Categories: all, business, news, online and world
Tags: , , , ,

WASHINGTON (Reuters) – U.S. retail sales rose unexpectedly last month despite heavy snow storms that were thought to have kept shoppers at home and bolstered hopes of a sustainable economic recovery.

Optimism about Friday's report was tempered by a slip in consumer confidence early this month. Worries about stubbornly high unemployment held back sentiment, even though the economy appears to be on the cusp of creating jobs.

"The manufacturing recovery is starting to broaden out to the key consumer area of the economy. Consumers are keeping up their end of the bargain to ensure the recovery from recession is a sustainable one," said Chris Rupkey of the Bank of Tokyo-Mitsubishi in New York.

Sales rose 0.3 percent, the Commerce Department said, as consumers bought an array of goods from necessities to luxury items. Analysts had expected sales to slip 0.2 percent. January sales, however, were revised down to a gain of 0.1 percent from the previously reported 0.5 percent rise.

U.S. stocks initially rose on the retail sales data but lost steam, and major indexes ended flat on the surprise drop in consumer confidence. U.S. government debt prices rose as investors focused on the weak sentiment data, while the dollar tumbled to a one-month low against the euro.

The sales report was the latest in a series of data hinting at building underlying strength in an economic recovery that has been largely driven by government stimulus and a swing toward inventory building by businesses.

Officials from the Federal Reserve meet on Tuesday and are expected to hold overnight interest rates in a range of zero to 0.25 percent and maintain a pledge to keep them ultra-low for an "extended period" to foster a more robust recovery.

Stronger data, however, could spark a lively discussion at the meeting, as some officials have raised concerns about the inflationary impact of keeping rates too low for too long.

Treasury Secretary Timothy Geithner said on Friday the economy was gradually strengthening across the board, but cautioned it would take time to fully recover.

The rise in spending came even as consumers were turning more sour. Thomson Reuters/University of Michigan's Surveys of Consumers' index on consumer sentiment slipped to 72 cash advance to savings account.5 from 73.6 in February. That was below market expectations for 73.6.

LABOR MARKET KEY

Economists, however, warned against placing too much weight on the dip in sentiment, saying it was not a good predictor of future sales. Consumer spending has continued to surprise on the upside even with confidence trending lower.

"What is more important is what happens in the job market and that market is improving. February was distorted by storms, but the underlying trend is up and March will be strong," said Bill Cheney, chief economist at John Hancock Financial Services in Boston.

Sluggish consumer spending had fed worries the economy's recovery from the worst downturn in seven decades could falter when support from government stimulus and the swing in the inventory cycle disappears.

Motor vehicle and parts purchases extended their decline last month, falling 2 percent, likely reflecting a drop in demand by consumers nervous about vehicle recalls by Toyota Motor Corp. Excluding motor vehicles, retail sales rose 0.8 percent, building on a 0.5 percent rise the prior month.

Even more encouraging, core retail sales — which correspond most closely with the consumer spending component of the government's gross domestic product report — increased 0.9 percent after rising 0.6 percent in January.

"This implies that personal consumption is on track to exceed 2.0 percent for the first quarter of the year and bodes well for a greater than 3.0 percent print on gross domestic product," said Joseph Brusuelas, chief economist at Brusuelas Analytics in Stamford, Connecticut.

A second report from the Commerce Department showed business inventories were unchanged in January after falling by 0.3 percent in December.

Inventories are a key component of gross domestic product changes over the business cycle and a sharp slowdown in the pace of inventory liquidation handed the economy its fastest growth rate in six years in the fourth quarter.

(Additional reporting by Glenn Somerville in Washington and Caroline Valetkevitch in New York; Editing by Chizu Nomiyama)

Retail sales rise as shoppers fight winter blues

10
Mar

Senate to pass jobless aid, business tax breaks

By alfredlester Closed
Categories: business, economic, life, market and online
Tags: , , , ,

WASHINGTON – Legislation blending help for the jobless with popular tax breaks for businesses and individuals is slated to pass the Senate Wednesday over protests from conservatives who say it adds too much to the $12.5 trillion national debt.

But compassion for the jobless and the political power of an annual package of tax breaks is likely to produce a bipartisan vote to pass the measure, even though it would add more than $130 billion to the budget deficit over the next year and a half.

The bill would provide unemployment benefits of up to 99 months in many states for people mired in joblessness as the economy slowly recovers from the worst recession in decades. The measure easily cleared a procedural hurdle Tuesday by a 66-34 vote, with eight Republicans voting with Democrats to break a GOP filibuster.

The measure illustrates the great extent to which direct help for the jobless and the poor makes up a large portion of Democrats’ election-year agenda on jobs — and threatens to squeeze out other items amid concerns about a budget deficit projected at a record $1.6 trillion this year.

The sweeping bill cleans up a host of unfinished congressional business from last year that languished as the Senate focused on health care. It would also prevent doctors from absorbing a 21 percent cut in Medicare payments and extends through December a generous 65 percent subsidy of health insurance premiums for the unemployed under the COBRA program, at a cost of $10 billion.

Democrats also hope to finish work this week on a far smaller job-creation measure blending additional highway spending with new tax breaks for companies that hire the unemployed inferred heaters. The Senate could clear the measure for President Barack Obama’s signature by Friday.

Wednesday’s larger bill also provides the annual extension of $26 billion worth of tax breaks for businesses and individuals that are popular with senators in both parties.

The $66 billion cost of providing additional months of unemployment checks — the core benefit is 26 weeks — is added directly to a budget deficit expected to hit $1.6 trillion this year. Federal cash to help states with Medicaid adds about $25 billion more.

“Even though these programs may be good for your state, a senator has an obligation to stand up and say ‘no more,’” said freshman GOP Sen. George Lemieux of Florida. “No more spending our kids’ future. No more bankrupting the promise of this country.”

But Democrats said it would be heartless to cut off unemployment benefits to the long-term jobless and contended that the benefits inject demand into the economy, helping to lift it.

“This is not just some technical bill,” said Sen. Max Baucus, D-Mont. “This bill helps real people. Failure to enact this bill would cause real hardship. Failure to enact this bill would cost jobs.”

The tax breaks include a property tax deduction for people who don’t itemize, lucrative credits that help businesses finance research and development and a sales tax deduction that mainly helps people in the nine states without income taxes.

Senate to pass jobless aid, business tax breaks

08
Mar

The Female Factor: Awareness Rises, but Women Still Lag in Pay

By alfredlester Closed
Categories: Free blog Tips, news, online, power and world
Tags: , , , ,

PARIS — Companies in the United States, Spain, Canada and Finland lead the world in employing the largest numbers of women from entry level to senior management, according to a report set to be published Monday by the World Economic Forum. Yet the report also found that, despite increasing awareness of gender disparities in the workplace, women at many of the world’s top companies continued to lag behind their male peers in many areas, including pay and opportunities for professional advancement.

Moreover, many of these companies have yet to implement policies to address these gaps, despite pressure from many of their governments to do so.

The forum, based in Switzerland, surveyed 600 heads of human resources offices at the largest employers in 20 countries representing 16 different industries.

The poll assessed companies according to a range of criteria, including rates of female representation, whether the companies measured or set targets for gender balance in pay or promotion, and whether they offered benefits, like paid family leave, to promote work-life balance for their employees.

The findings, which were timed to coincide with the 100th anniversary of International Women’s Day, follow the announcement Friday by the European Union of an initiative aimed at significantly narrowing the union’s average 18 percent gender wage gap, which has changed little in the past 15 years.

A study by the 27-member union last year estimated that closing the wage gap could lead to a potential increase of 15 percent to 45 percent in gross domestic product.

A 2009 report by the International Labor Organization found an average 20 percent difference in pay for men and women employed full time in the Group of 20 largest developed and developing economies. Yet the World Economic Forum’s report found that 72 percent of the companies in its survey had no systems to track salary differences by gender.

In addition, 60 percent of the companies said they had no affirmative action policies to promote women within their hierarchies and did not measure women’s participation in their work forces.

Companies in India had the lowest percentage of female employees, 23 percent, just below Japan, with 24 percent, the forum’s report found.

Turkey, Austria and Italy rounded out the bottom five, with women representing just 26 percent, 29 percent and 30 percent of their staffs, respectively instant payday loans.

As its focus was on companies, the forum’s survey did not assess the status of women working in the public sector or in education, areas where female representation is traditionally high and where policies to promote gender balance are often institutionalized by law.

Women remained in the minority of senior corporate managers, representing just 5 percent of the chief executives of the 600 companies surveyed. Finnish companies in the sample had the largest proportion of female chief executives, with 13 percent, followed closely by Norway and Turkey with 12 percent and Italy and Brazil with 11 percent.

The high percentage of female chief executives at Turkish companies, despite having relatively low levels of female employment, was due to the fact that many of the biggest companies were controlled by families where women were at the helm, said Saadia Zahidi, co-author of the report and head of the forum’s Women Leaders and Gender Parity Program. In Italy, which reported similarly large numbers of women at the top, the companies surveyed were mainly large, multinational corporations.

In both countries, Ms. Zahidi said, “there is a real dearth of women elsewhere in the corporate hierarchy.”

The forum’s findings also follow a global study of 4,500 business school graduates published last month by Catalyst, a U.S.-based organization that advocates for women in the workplace.

The Catalyst study found that, even in this high-potential group, women consistently lagged behind men in advancement and compensation from their very first professional job. The differences held even in comparing men and women of equal levels of work experience and professional aspiration and in discounting for whether or not they had children.

Herminia Ibarra, a professor of leadership and organizational behavior at Insead, an international business school, and a co-author of the forum’s report, said of the findings, “Study after study shows that, in most countries and industries, women enter the workplace pipeline in representative numbers. Then, something fails to happen.”

The Female Factor: Awareness Rises, but Women Still Lag in Pay

06
Mar

Funds Tied to Madoff Win a Ruling to Stop Suits

By alfredlester Closed
Categories: Free blog Tips, all, business, market and online
Tags: , , , ,

UBS and Ernst & Young won a court ruling Thursday in Luxembourg, potentially blocking hundreds of claims by investors who had lost money in funds tied to Bernard L. Madoff’s fraud.

Luxembourg’s commercial court said that investors could not bring individual lawsuits for damages. The court said it was up to the liquidators of the funds that invested with Mr. Madoff to seek the “recovery of the capital assets.”

Investors who lost millions of dollars through Access International Advisors’ LuxAlpha Sicav-American Selection fund had filed more than 100 lawsuits against UBS and Ernst & Young for “seriously neglecting” their fund supervisory duties. Luxembourg’s commercial court in April 2009 decided to hear some of the cases to test whether the claims were admissible.

UBS served as the custodian for LuxAlpha. Custodians are responsible for oversight of funds and manage deposits and payments to investors.

“UBS welcomes the clarification of Luxembourg law as expressed by today’s decisions,” Tatiana Togni, a spokeswoman for the bank, said in an e-mail message.

Spokesmen for Ernst & Young in Luxembourg could not immediately be reached to comment. LuxAlpha, which invested 95 percent of its assets with Mr. Madoff, said it had $1.4 billion in net assets a month before Mr. Madoff’s arrest in December 2008. The fund was dissolved and is being liquidated.

Luxembourg is the second-largest mutual fund market after the United States, with about 3,463 registered funds holding 1.84 trillion euros ($2 business cards.5 trillion) in assets.

François Brouxel, who represented investors in four of the test cases and has more than 60 others pending, said he would appeal the court’s finding. He said the ruling “is in direct contradiction with E.U. rules and will have repercussions for the Luxembourg financial market if investors feel they are not protected.”

Mr. Madoff, 71, pleaded guilty last year in federal court in Manhattan and was sentenced to 150 years in prison for using money from new clients to pay earlier investors.

UBS Settles Auction-Rate Case

The Swiss bank UBS agreed on Thursday to buy back $200 million of auction-rate securities and pay a $6.64 million fine to settle charges it misled investors about the debt’s safety.

The accord, reached with the Texas State Securities Board, covers investors left out of an August 2008 nationwide settlement with several regulators in which UBS agreed to buy back $18.6 billion of auction-rate securities and pay a $150 million fine.

That settlement covered investors who held securities in UBS accounts. The state said UBS has to date agreed to buy back $22 billion of auction-rate debt.

Auction-rate debt has interest payments that reset at periodic auctions. Regulators have accused many broker-dealers of marketing the debt as being as safe as cash.

Reuters

Funds Tied to Madoff Win a Ruling to Stop Suits

04
Mar

Greece prepares tax rises, debt continues to mount

By alfredlester Closed
Categories: all, life, money, online and power
Tags: , , , ,

ATHENS (AFP) – Greece, fighting to avert bankruptcy, was to reveal a third wave of tax rises and welfare cuts on Wednesday to win support from the European Union and a reprieve from debt markets.

Prime Minister George Papandreou, who warned lawmakers on Tuesday that the country faced a "wartime situation", was expected to announce the new draconian measures after briefing President Carolos Papoulias.

The latest round of crisis action is believed to include a two-percent increase in sales tax, a pension freeze, heavier benefit cuts for civil servants and steeper tobacco and fuel duties.

The European Commission, the EU's executive arm, insists that Greeks must sort out their fiscal mess — which includes a public debt of nearly 300 billion euros (407 billion dollars) — before expecting any outside help.

Greece must avoid "a nightmare of bankruptcy in which the state would not be able to pay salaries or pensions," Papandreou told lawmakers in Athens. He said: "We find ourselves today in a wartime situation."

That would create a huge headache for its European partners which are alarmed that Greece's problems could cause lasting damage to the credibility and discipline which underpin the eurozone. Related article:EU unveils 2020 vision

Greece needs more than 20 billion euros (27 billion dollars) by May to redeem old debt falling due. It also needs to borrow heavily to finance a public deficit which is close to 13 percent of gross domestic product (GDP).

Overall, the government is desperate to improve its downgraded credit rating and thereby reduce the crippling interest rate, currently slightly above 6.0 percent, which it has to pay to borrow from international investment funds.

And time is short. Papandreou has said that financing needs are assured until the middle of March.

A total of 54 billion euros will have to be raised this year to cover the public deficit which has swollen way beyond the three-percent EU limit make quick cash. Moody's rating agency has estimated that about 15 percent of tax revenues will be absorbed by debt charges this year.

A team of analysts from the Standard and Poor's rating agency is currently in Athens for talks with Greek ministers.

Meanwhile, the sentiment on financial markets about the course of events in Greece is highly uncertain, although there is a suspicion that if the latest round of measures satisfies EU authorities, some sort of support for Greece may emerge in the next week or so.

A Greek official told Dow Jones Newswires that Athens would issue a 10-year bond to raise between three and five billion euros "within days of the announcement of the austerity package."

And economist Neil MacKinnon at VTB Capital told AFP that a rescue "has to be agreed, whether it is some sort of loan package contingent on evidence of Greek budget cuts or debt purchases by EU governments and/or state owned entities or some sort of debt guarantees."

The Greek prime minister flies to Berlin on Friday for talks with German Chancellor Angela Merkel, widely regarded as holding the key to any eurozone bailout.

Papandreou has undertaken to use the crisis to restructure the economy, and cure Greece of decades of fiscal mismanagement and deeply entrenched corruption, but statistics released on Tuesday show that he faces a titanic reform task as bribery is on the rise.

The local branch of Transparency International said that bribes last year rose by 50 million euros from 2008 to 790 million euros (1.1 billion dollars), paid to all parts of the economy, from hospitals to tax officials.

Greece prepares tax rises, debt continues to mount

28
Feb

James River Coal 4th-quarter loss narrows

By alfredlester Closed
Categories: all, business, economic, online and world
Tags: , , , ,

RICHMOND, Va. – Coal mining company James River Coal Co. said Friday that its fourth-quarter loss narrowed, but the company said its results were hurt by lower rates of production at its mines.

The company also put out 2010 guidance that came up short of analyst expectations.

James River Coal said it lost $3.2 million, or 12 cents per share, compared to a loss of $33.6 million, or $1.26 per share, in the year-earlier quarter.

The company sold $149.5 million worth of coal during the quarter, up from $140.8 million in the 2008 fourth quarter. But company executives said that they were forced to reduce production because of soft coal markets business cards.

Analysts surveyed by Thomson Reuters expected earnings of 44 cents per share on sales of $175.4 million.

For 2010, the company projects earnings of $1.70 to $2.25. That is below the analyst consensus view of $2.93 per share.

James River Coal earned $51 million, or $1.85 per share, for all of 2009.

Shares of the company fell $1.09, or 6.4 percent, to close at $15.91.

James River Coal 4th-quarter loss narrows

26
Feb

A.I.G. Reports a Loss and Increases Its Reserves

By alfredlester Closed
Categories: Free blog Tips, all, business, market and online
Tags: , , , ,

The American International Group, the insurance giant, said Friday that it lost about $11 billion last year, and cited a rebound in annuities sold by its renamed life insurance companies as a bright spot.

The insurer’s year-end result was a small fraction of the record-breaking loss of $61.7 billion that it reported for 2008, when its large derivatives portfolio blew up, leading to a government bailout. Most of the 2009 loss came from a fourth-quarter charge taken to reflect that its bailout had been restructured — a one-time charge that A.I.G. has been warning about for months. The charge was not connected with the company’s core insurance operations.

But a big part of the loss was directly related to its insurance activity — A.I.G. increased its reserves on the advice of its outside actuaries. The move seemed to vindicate a study by the Sanford C. Bernstein research firm last November, which found a big shortfall in A.I.G.’s reserves for its property and casualty businesses. Those businesses have been renamed Chartis and are expected to be A.I.G.’s backbone.

Insurance companies set aside reserves to pay claims that they anticipate, and when they have to strengthen inadequate reserves, they take money from earnings. The Bernstein analyst, Todd R. Bault, had predicted that A.I.G. would have to “take some kind of a reserve charge” before it could offer Chartis’s shares to investors, as part of the company’s plans to restructure and pay back its government bailout.

For the fourth quarter alone, A.I.G. lost $8.87 billion, or $65.51 a share. That compared with a loss of $458.99 a share in the period a year ago. Analysts surveyed by Thomson Reuters forecast a loss of $3.94 a share.

A.I.G. said that $2.7 billion of its loss, on a pretax basis, came from increasing its reserves. Much of the increase took place in the fourth quarter, after an annual study showed a deficit in the amounts needed to pay workers’ compensation and other commercial claims that are gradually coming due on policies sold in 2002 and earlier.

Mr. Bault had reported that A.I.G.’s reserves seemed inadequate for its workers’ compensation and other types of insurance where claims take a long time to develop. But he said the deficit appeared to be much larger, estimating it at $11.9 billion. A.I.G. said the increase in reserves left Chartis with a surplus of $27 billion, 4 percent more than its surplus in 2008.

The chief executive, Robert Benmosche, said in a statement: “Our team has made great progress during the year in executing our strategic restructuring plan.”

In addition to strengthening the insurance companies, he cited the progress made in winding down A.I.G.’s derivatives business, and “positioning certain businesses for sale.”

A.I.G. has announced that it will sell shares in its biggest international life insurance company, the American International Assurance Company Ltd online pay day loans., on the Hong Kong stock exchange sometime this year. It has also been negotiating the sale of another large international life insurance company, known as Alico, to MetLife. The talks have proceeded slowly because of questions about a possible tax liability and who would pay it.

The first $25 billion in proceeds from those two transactions are to go to the Federal Reserve Bank of New York, to pay back part of the cost of rescuing A.I.G.

Already, A.I.G. had replaced $25 billion of rescue debt to the New York Fed with $25 billion of equity, an investment which will pay off when the sales of the two foreign life insurers go through. The debt-for-equity swap lightened A.I.G.’s debt burden, averting a credit downgrade that loomed in the first quarter of 2009, when the company announced its disastrous 2008 results.

The company said $5.2 billion of its year-end pre-tax loss was the result of eliminating the $25 billion of debt to the Fed. It has been carrying the lending commitment as an asset on its balance sheet, but was able to speed up the amortization of the so-called commitment asset, leading to the $5.2 billion pre-tax charge.

In addition, A.I.G. paid the New York Fed $5.2 billion of interest on its rescue loans over the course of 2009.

Another big factor in A.I.G.’s losses for 2009 was the pending sale of yet another foreign life insurance company, the Nan Shan Life Insurance Company, of Taiwan. Although the sale has not yet closed, A.I.G. said it had recognized a $2.8 billion pretax loss on the sale in the fourth quarter.

In his statement, Mr. Benmosche said his team was “increasingly confident in how we see the mix of A.I.G.’s businesses over the long term.”

He said the “nucleus” would consist not only of Chartis but of “a strong U.S. life and annuity operation and several other businesses,” which he did not identify. In the months immediately after A.I.G.’s rescue, its interim chief executive, Edward Liddy, had spoken of selling the company’s domestic life insurance companies.

Since then, the life insurance companies have been renamed and at least some of them have emerged as significant sources of cash for A.I.G. Mr. Benmosche cited in particular a subsidiary once called A.I.G. Annuity, which last year reverted to the name it used before A.I.G. acquired it, Western National.

Under the new name, Western National has reclaimed its former position as the largest seller of single-premium fixed annuities in banks. Some banks had suspended the sales immediately after the bailout, but in the second half of 2009 the sales were resumed. Demand was strong because the annuities, which are not insured by the F.D.I.C., have offered customers more interest than similar bank deposits.

A.I.G. Reports a Loss and Increases Its Reserves

22
Feb

Obama version of health reform expected Monday

By alfredlester Closed
Categories: Free blog Tips, economic, life, news and online
Tags: , , , ,

WASHINGTON – The White House readied its last-ditch effort to salvage health care legislation Sunday while the Senate’s Republican leader warned Democrats against the go-it-alone approach.

The White House was expected to post a version of President Barack Obama’s plan for overhauling health care on its Web site on Monday, ahead of his critical and daring summit at Blair House on Thursday. The plan, which was likely to be opposed by the GOP, was expected to require most Americans to carry health insurance coverage, with federal subsidies to help many afford the premiums.

Hewing close to a stalled Senate bill, it would bar insurance companies from denying coverage to people with medical problems or charging them more. The expected price tag is around $1 trillion over 10 years.

The conference at the White House guest residence is to be televised live on C-SPAN and perhaps on cable news networks. It represents a gamble by the administration that Obama can save his embattled overhaul through persuasion — a risky and unusual step.

It was forced on the administration by the Senate special election victory of Massachusetts Republican Scott Brown in January. He captured the seat long held by Democrat Edward M. Kennedy, who died last year. Brown’s victory reduced the Democrats’ majority in the Senate to 59 votes, one shy of the number needed to knock down Republican delaying tactics.

Senate Minority Leader Mitch McConnell said Sunday he would participate, but that Obama and congressional Democrats would be wrong to push the bills they wrote in the House and Senate.

“The fundamental point I want to make is the arrogance of all of this. You know, they are saying, `Ignore the wishes of the American people. We know more about this than you do. And we’re going to jam it down your throats no matter what.’ That is why the public is so angry at this Congress and this administration over this issue,” said McConnell, R-Ky.

While the House and Senate had passed its own version of a health overhaul, lawmakers had yet to settle their differences and produce a single bill acceptable to both chambers when Brown won.

California Gov. Arnold Schwarzenegger, a Republican, hoped a compromise — “sweet spot,” he called it — was possible No teletrak payday loan.

“If you really want to serve the people and not just your party, I think you will find that sweet spot and you can get it done,” he said.

Democratic Gov. Ed Rendell of Pennsylvania appealed to Republicans to offer their own proposals. “You take some of our ideas. We’ll take some of your ideas. We may not love your ideas, but we’ll take them. If they don’t do that, I think this whole dynamic of this political year could turn around,” he said.

Rendell and Schwarzenegger spoke from the sidelines of the National Governors Association meeting. Four leaders of the group, two Republicans and two Democrats, later summoned the media to a news conference and offered to strike a compromise between the warring factions in Washington.

“We are making an offer to help and are very willing to roll up our sleeves and help if that’s what Congress and the president decided,” said Tennessee Gov. Phil Bredesen, a Democrat.

The governors’ plea was an implicit acknowledgment that Obama and the Democratic-led Congress have frozen governors out of the process.

The Blair House meeting takes place nearly a year after Obama launched his drive to remake health care — a Democratic agenda item for decades — at an earlier summit he infused with a bipartisan spirit. The president will point out that Republicans have supported individual elements of the Democratic bills.

Under the expected Obama plan, regulators would create a competitive marketplace for small businesses and people buying their own coverage. The plan would be paid for with a mix of Medicare cuts and tax increases. It would also strip out special Medicaid deals for certain states, while moving to close the Medicare prescription coverage gap and making newly available coverage for working families more affordable. The changes would cost about $200 billion over 10 years. It’s unclear what the total price tag for the legislation would be; the Senate bill was originally under $900 billion.

McConnell spoke on “Fox News Sunday.” The governors appeared on ABC’s “This Week.”

Obama version of health reform expected Monday

14
Feb

Insider Trading Charge in China

By alfredlester Closed
Categories: Free blog Tips, business, market, money and online
Tags: , , , ,

HONG KONG — The former chairman of one of China’s largest electronics companies has been charged with insider trading, offering bribes and running illegal operations, the state-run China News Service said.

Huang Guangyu’s case was sent to the Beijing Municipal Second Intermediate People’s Court for trial, and the people accused of being his accomplices have also been indicted, China News Service said Saturday without identifying those people.

The charges against Mr. Huang had long been expected. He has been in detention since November 2008, and Chinese officials subsequently took the uncommon step of publicly confirming that he was under investigation by the Ministry of Public Security.

He resigned as chairman of the electronics company, Gome, two months after his detention.

He has been held incommunicado, as is common in China during investigations, and could not be reached Sunday for comment.

Sunday marks the first day of the Lunar New Year holiday, with government and corporate offices closed across China and tens of millions of people going to their hometowns to celebrate.

The long-running scandal over Mr no fax payday loans. Huang’s alleged activities has already tarnished the careers of a series of Chinese officials. Zhu Ying, the former deputy director of the Shanghai Municipal Public Security Bureau, was expelled from the municipal discipline inspection committee of the Communist Party last December. The committee issued a statement at the time saying, without providing details, that he had been stripped of his membership in connection with the investigation of Mr. Huang.

The investigation of Mr. Huang has also resulted in further reviews at the Ministry of Public Security of how the ministry’s economic crimes section had handled the affair, according to the state-run news agency Xinhua, which is larger than China News Service.

Before his arrest, Mr. Huang had been one of the wealthiest people in China, with Forbes magazine estimating his wealth then at $2.7 billion and the Hurun Report, which also keeps track of the wealth of Chinese business leaders, estimating that he was worth $6.3 billion.

Insider Trading Charge in China

13
Feb

Euro Hovers Near Nine-Month Lows

By alfredlester Closed
Categories: Free blog Tips, business, life, market and online
Tags: , , , ,

HONG KONG — European leaders’ declaration of support for Greece may have helped ease global worries of a debt default, but it did little to lift the euro, which hovered around nine month lows against the dollar on Friday.

Any gains in the currency shared by 16 European countries were undermined by lingering concerns about the fragile finances of several nations in the euro zone, analysts said.

The euro has sagged sharply against the dollar and the yen since January, as worries about a potential debt default by Greece began to surface.

At the start of this year, a euro bought around $1.45 and 133 yen; by midday in Asia on Friday, it bought only $1.37, and 122.5 yen.

Friday’s levels were a touch lower than Thursday’s — despite the European support for Greece — meaning the single currency remains around its weakest level against the U.S. currency since May last year. The last time the euro was at such levels against the yen was a year ago.

Stock markets, too, took only limited comfort from Thursday’s news out of Brussels, which was little more than a statement from European leaders to aid Greece during its debt crisis, if needed. Leaders offered no details on what that support would entail.

The main stock market indexes in the Asia-Pacific region were mixed, with muted rises in Japan, Hong Kong and Australia, and equally limited falls in South Korea.

The Nikkei 225 index in Tokyo was 0.9 percent higher by early afternoon. The Hang Seng in Hong Kong and the Straits Times index in Singapore gained about 0.3 percent, and the benchmark index in Australia edged up 0.1 percent In South Korea, the Kospi index slipped 0 free credit scores.3 percent by around noon.

On Thursday, the Dow Jones industrial average gained 105.81 points, or 1.05 percent, to close the day at 10,144.19. European markets ended Thursday mixed.

“Yesterday’s news on Greece did not actually provide much more than had been widely expected. The market was hoping for more specifics, so the reaction is now quite muted,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong.

Activity across much of the region was also dampened ahead of the Lunar New Year holiday, which will shut much of the region — notably China, Hong Kong, Singapore and Taiwan — on Monday.

“Risk appetite should gradually resume — unless we get massive violence in the streets of Greece,” Mr. Kowalczyk added, referring to worries that the Greek government’s efforts to reduce its deficit will be constrained by mass popular opposition.

Striking civil servants brought public services to a halt across Greece on Wednesday, in a largely peaceful one-day protest against the tough austerity measures that officials have said are necessary to stave off a mounting financial crisis. A much broader strike is planned for Feb. 24. “Feb. 24 will be a day to watch,” Mr. Kowalczyk said.

Better-than-expected news Thursday from the closely-watched U.S. jobs market failed to set spark strong gains. The number of Americans filing first-time unemployment claims fell by more than expected last week.

Euro Hovers Near Nine-Month Lows

01
Feb

News Analysis: Is the Day of Tiny Ads Finally Here?

By alfredlester Closed
Categories: all, business, economic, news and online
Tags: , , , ,

Every year around this time, a few brave forecasters declare that advertising on mobile devices is poised to become the next big thing in marketing. And every year, the results disappoint.

But this year, with technology powerhouses like Apple and Google introducing whole new mobile devices and buying up ad firms specializing in the small screen, the forecasts may finally be right.

By now, the sales pitch is familiar: The mobile phone offers advertisers all the benefits of traditional Internet ads, including the ability to track their effectiveness. And it lets marketers reach consumers on the go, on a gadget they clutch intimately.

Why, then, according to Juniper Research, did worldwide spending on mobile advertising last year amount to only $1.4 billion — less than one third of one percent of total ad revenue?

For one thing, some marketers remain wary about trying it, for fear of annoying consumers by intruding on their personal space. A technical toolbox poorly equipped to work with small screens has also hurt; after all, banner ads the size of thumbnails don’t make a big impression.

Industry analysts say that now, with the introduction of Apple’s iPad tablet, an entirely new approach to mobile ads could be near.

That is because the iPad, a cross between a laptop and an iPhone, looks more like an iPhone from an ad perspective. It does not support Adobe Flash, the software used for much PC-based advertising. So, to make their ads available to iPad users, marketers may have to develop new kinds of ads, rather than simply adapting existing Web ads no faxing payday loan.

Apple, seeing big potential in mobile advertising, recently agreed to acquire a specialist in that business, Quattro Wireless. That followed a deal by Google to buy one of the largest players in the field, AdMob. The combined $1 billion-plus cost was of a scale not previously seen in the world of advertising on the tiny screen.

“It’s a pretty exciting time for the market,” said Oliver Roxburgh, managing director of the British operations of YOC, a mobile ad agency. “It’s starting to grow up a little.”

Mr. Roxburgh’s enthusiasm has been buoyed by the efforts of Apple and Google and is shared by a growing chorus of industry experts.

Indeed, Windsor Holden, a principal analyst at Juniper Research, predicts that mobile ad spending worldwide will more than quadruple, to $6 billion, by 2014. And he does not shrink from the prediction.

“Everybody has been hoping for about the last five years that the next year would be the one when mobile advertising takes off,” Mr. Holden said. “There are a number of pointers to the possibility that this will be the year when we get some significant traction.”

News Analysis: Is the Day of Tiny Ads Finally Here?

Hot News: Economic Preview: Too soon to say recovery will last

« Previous Entries