Posts Tagged ‘opinion

22
Mar

Arrow Energy Accepts Takeover Bid From Royal Dutch Shell and PetroChina

By alfredlester Closed
Categories: Free blog Tips, economic, market, power and world
Tags: , , , ,

SYDNEY (AP) — Arrow Energy Ltd., a major owner of gas assets in Australia, has agreed to a sweetened takeover bid from Royal Dutch Shell and PetroChina Co. worth Australian dollars 3.44 billion ($3.15 billion).

The deal comes as Australia ramps up major natural gas projects in response to booming demand from China and elsewhere as a less polluting fuel than coal to drive power generators.

Arrow said Monday in a statement to the stock exchange it received an offer from a joint venture company owned by Shell and PetroChina named CS CSG Pty. Ltd. for AU$4.70 cash per share. Two weeks ago, the joint venture launched its takeover bid with a cash-per-share offer of AU$4.45.

Under the deal, Arrow will spin off its assets outside Australia — including interests in China, India, Vietnam and Indonesia — into a new company, Dart Energy Ltd., in which existing Arrow shareholders will get a stake.

Arrow said its board was unanimously recommending that shareholders accept the offer.

Arrow Energy is an integrated energy company focused on supplying coal seam gas to eastern Australia and Asia high risk personal loans. It claims to have the largest coal seam gas reserves in Queensland state.

The company had been planning to list 20 percent of its Arrow International arm, retaining 70 percent, with the remainder already held by Royal Dutch Shell.

Among major integrated oil companies, Shell considers itself expert in converting methane to liquefied natural gas (OOTC:LNGLF) , or LNG, so it can be shipped rather than piped away from its source.

It has a separate LNG project in the works in Queensland that would benefit from the extra supply from Arrow.

PetroChina Co. is Asia’s largest oil and gas company. Last year it signed agreements with Exxon Mobil Corp. (NYSE:XOM) worth $41 billion to buy LNG from the yet-to-be developed Gorgon gas field off Australia’s far northwest coast.

Arrow Energy Accepts Takeover Bid From Royal Dutch Shell and PetroChina

18
Mar

Bernanke: Fed should oversee big and small banks

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

WASHINGTON (MarketWatch) - The Federal Reserve needs to supervise banks of all sizes so it can stay on top of the markets and the economy, the central bank’s chairman, Ben Bernanke, said in testimony prepared for a hearing on Wednesday.

“The Federal Reserve’s participation in the oversight of banks of all sizes significantly improves its ability to carry out its central banking functions, including making monetary policy, lending through the discount window, and fostering financial stability,” Bernanke said in testimony prepared for a House Financial Services Committee hearing about the Fed’s role in bank supervision.

A Look at the Fed’s Bank Examiners

WSJ’s Dennis Berman and colleague Evan Newmark take on the Fed — namely the Federal Reserve Bank of Philadelphia, which Berman recently visited in the hopes of better understanding the people securing the front lines of the broken financial system.

“Because of its wide range of expertise, the Federal Reserve is uniquely suited to supervise large, complex financial organizations and to address both safety and soundness risks and risks to the stability of the financial system as a whole.”

Bernanke continues to defend the Federal Reserve from Senate legislation that seeks to remove some of its authority to oversee banks paperless payday loans. The bank reform bill introduced by Senate Banking Committee Chairman Christopher Dodd, D-Conn., on Monday would remove the Fed’s oversight of smaller state-chartered banks, permitting it to only continue to oversee and conduct on-site exams for 35 largest banks with $50 billion or more in assets.

That wording, however, is an improvement from the Fed’s point of view, over the legislation Dodd introduced in November. That original bill would have removed all the Fed’s supervision authority over banks so it could concentrate only on monetary policy. The House bank reform bill approved in December retains the Fed’s authority to supervise banks and conduct monetary policy. Dodd plans to have senators on the banking committee vote on the bill next week. He hopes to have legislation approved by the full Senate by spring.

The Fed oversees roughly 5,000 bank holding companies and about 850 state-chartered banks.

Bernanke: Fed should oversee big and small banks

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

25
Feb

Asian Shares Falter on Concerns About U.S. Economy

By alfredlester Closed
Categories: Free blog Tips, all, business, news and world
Tags: , , , ,

SINGAPORE — A tepid rally in Asian shares faltered early on Thursday and the dollar rose after the Federal Reserve chairman Ben Bernanke’s reaffirmation of an extended period of low U.S. rates boosted risk-seeking but also raised some concerns about global growth.

The Nikkei 225 average in Japan rose initially, helped by exporters like Canon and as Toyota Motor reversed most of its losses of the past two days after its chief apologized to consumers and pledged reforms to skeptical U.S. lawmakers at Congressional hearings. Toyota’s U.S.-listed shares jumped 3.9 percent.

But a more than 2 percent slide in Denso Corp. weighed on the broader Tokyo market after authorities said the FBI has raided three Detroit-area Japanese auto parts makers for a sealed federal antitrust investigation, including the Toyota suppliers Denso and Tokai Rika.

“The market welcomed a rebound in U.S. stocks after news that the country will continue its low rate policy,” said Yutaka Miura, a senior technical analyst at Mizuho Securities. “But we’ve seen a series of worse-than-expected economic data from America lately and uncertainty about the outlook for the U.S. economy is increasing.”

The MSCI Asia excluding Japan index fell 0.43 percent by midday, and sectors that fell the most were industrials and technology.

The Nikkei closed 0.95 percent lower.

A report on U.S. new home sales on Wednesday highlighted the Fed’s predicament. Sales slumped more than 11 percent to a record low, suggesting the sector at the center of the financial crisis had yet to fully heal.

Mr. Bernanke’s assessment of the economy was also grim, further curbing the speculation of quicker policy tightening that had been spurred by the Fed’s raising of the discount rate last week.

He also said a weak job market and tame inflation warrant low interest rates for “an extended period,” making clear that policy tightening is some time away, which helped the Dow Jones Industrial average rise 0 best humidifiers.89 percent.

The dollar fell initially in Asia but the trade-weighted index soon recovered to 80.96.

Gold was at $1,096 an ounce, far from a the previous day’s high of #1,107.95.

Oil prices also hovered just above the $80 mark but were also off the previous day’s highs at $80.45, a level hit when stock markets rallied on the back of Mr. Bernanke’s remarks despite a bearish report showing a build up in U.S. crude stockpiles.

The euro stayed weak at $1.3483, paring further the gains it had made soon after Mr. Bernanke’s remarks and heading closer to a nine-month low of $1.3442 struck last week.

Worries about a possible downgrade of Greece weighed on the European single currency, pushing it down from above $1.36 on Wednesday.

Standard and Poor’s said it may cut Greece’s BBB+ rating by one or two notches within a month, citing downside risks to growth that could hinder the country’s deficit-cutting plans.

“The Greek situation remains fluid. So acrimonious discussions between Athens and Brussels could easily result in further near term euro slippage,” Citigroup said in a note.

But Citigroup also said that with euro net short positions at a record high, any positive news from Greece in the coming weeks could lead to a bounce in the single currency.

The euro has lost over 10 percent since late November as fiscal woes in Greece intensified in the past few months leading to a huge sell-off by investors.

Reuters

Asian Shares Falter on Concerns About U.S. Economy

Hot News: Targets 4Q profit rises 53.7 percent

30
Jan

Davos leaves questions over global bank rules push

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

DAVOS, Switzerland (MarketWatch) — Bankers and politicians agreed on little in public during this week’s World Economic Forum gathering of top CEOs and policymakers in the Swiss Alps, other than the desire to see regulations coordinated around the globe.

But some attendees say it’s not clear that’s going to happen.

Bankers and politicians met behind closed doors at the annual meeting Saturday, though the discussions didn’t appear to produce any concrete agreements.

Bankers have acknowledged they are going to see more regulation, said U.S. Rep. Barney Frank, the Democratic chairman of the House Financial Services Committee, after the meeting.

Deutsche Bank chief executive Josef Ackermann, who has emerged as an unofficial spokesman for the bankers at this year’s WEF , told an audience at a panel discussion later Saturday that “something has to happen quickly to restore confidence in the banking system.”

Ackerman, who chairs the forum’s committee of finance CEOs, on Friday said the bankers were in favor of higher capital requirements, better liquidity management and improved market infrastructure, as well as measures that would ensure failed banks could be wound up without bringing down the system. Read about Ackermann’s presentation.

Davos: Jacob Zuma Promotes World Cup at Forum

South African President Jacob Zuma goes on a public relations blitz at the Davos economic forum to promote the World Cup in South Africa. WSJ reporter Roman Kessler has more.

Meanwhile, questions surround the ability of regulators to internationally coordinate new banking rules.

Ensuring some degree of uniformity in new banking rules amid intense public anger around much of the world was always going to be a tough task.

The importance of policy coordination was a “key lesson of the crisis,” International Monetary Fund Managing Director Dominique Strauss-Kahn said on Saturday. “I’m a bit afraid we’re not going in this direction.”

“The big unknown is the attitude of the United States,” said Barry Eichengreen, an economics professor at the University of California Berkeley, in an interview.

The Obama administration’s introduction last week of the “Volcker rule,” a proposal that would limit the size of commercial banks, barring them from trading for their own account and operating private equity and hedge funds,

British Chancellor of the Exchequer Alistair Darling contends that approach wouldn’t solve the problems that created the crisis fast payday loans. He’s put the emphasis on increased capital requirements and “living wills” that would detail how to close down failed banks.

French President Nicolas Sarkozy told Davos bankers and other luminaries earlier this week that the Obama measures were correct, but that no nation could go it alone. Efforts must be coordinated by the Group of 20 nations, which agreed in April that the Basel, Switzerland-based Financial Stability Board would oversee negotiations. Read about Sarkozy’s speech in Davos.

Banks say that a lack of coordination would make for an un-level playing field. Policy makers say banks would game differences in a damaging round of regulatory arbitrage.

European Central Bank President Jean-Claude Trichet told a Davos audience that failure to coordinate measures “would be a catastrophe.”

Frank has said the Obama plan would be passed within months.

In a panel discussion earlier this week, he dismissed ideas that pressing ahead with the plan threatened efforts to coordinate measures across the globe as a “false dichotomy.”

While Frank was in high demand this week, Obama administration officials were thin on the ground in Davos.

On Saturday, Eichengreen introduced a high-powered panel discussion of central bankers and business leaders on the issue of financial reform, noting that the panel lacked only a representative of the Obama administration. “But why should this panel be any different from others here at Davos this year,” he said.

White House economic adviser Lawrence Summers delivered remarks in Davos Friday, but no other high-profile administration officials were in attendance for the event that began Wednesday.

Eichengreen said a U.S. policy that insists on elements of the Obama plan such as the ban on proprietary trading by commercial banks would make it difficult to reach international agreement.

Davos leaves questions over global bank rules push

Hot News: Batch of Bad News Weighs on Asian Stock Markets

21
Jan

Fed defends actions in AIG case, invites inquiry

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

WASHINGTON (Reuters) – Federal Reserve officials on Tuesday launched a vigorous defense of their dealings with American International Group (AIG.N), calling for a Congressional audit and denying any inappropriate action with respect to payments the bailed-out insurer made to banks.

Fed Chairman Ben Bernanke invited a full Congressional audit of the U.S. central bank's dealings with AIG and the New York Fed turned over 250,000 pages of documents to a House committee that has scheduled a hearing on the matter next week.

The U.S. House of Representatives Oversight and Government Reform Committee is investigating whether the New York Fed improperly limited public disclosures about payments to banks to unwind $62.1 billion in AIG credit default swaps.

In a lengthy memo posted on its website, the New York Fed contested a number of basic points that had been reported earlier after a batch of emails was released by a lawmaker that appeared to show the New York Fed counseled AIG not to reveal it was paying banks 100 cents on the dollar on credit default swaps it had written.

The New York Fed said it was "incorrect" to say that as a result of its actions, AIG did not tell the Securities and Exchange Commission that it was paying banks including Goldman Sachs Inc (GS overnight pay day loans.N) 100 cents on the dollar for swaps contracts.

AIG, in filings with the SEC, said the securities were being bought by letting banks retain collateral and by making cash payments that — taken together — roughly equaled the full value of the swaps, the Fed said.

The New York Fed also disputed charges that it leaned on AIG not to make required disclosures to regulators about the transactions.

"Some have … suggested that the (New York Fed) pressured AIG not to make required disclosures about material elements of the Maiden lane III transactions," the Fed said, referring to the special entity it set up to fund the rescue of AIG swaps contracts.

"This is also incorrect," the New York Fed asserted.

The central bank further denied that it was as a result of pressure from it that AIG sought to keep the names of the counterparties under wraps.

When pressed to disclose the names by the SEC, AIG sought confidentiality, fearing those firms and others might sever businesses ties over a breach of trust, the New York Fed said.

Fed defends actions in AIG case, invites inquiry

16
Jan

Stocks & Bonds: Dow Plunges 100 Points on JPMorgan’s News

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

Stock prices fell sharply on Friday, the worst day of trading this year, as worries over the strength of the American consumer eclipsed a round of mostly positive earnings reports.

On its surface, the news that JPMorgan Chase had doubled its 2009 profits from 2008 might seem reason for elation among investors. But on Friday, Wall Street traders took one look at the results and began to sell.

By the end of trading, the three major indexes were down about 1 percent, with the Dow Jones industrial average falling nearly 101 points. The dollar strengthened, and bond yields fell.

Traders saw promise and peril in JPMorgan Chase’s financial report. The bank said it earned $11.7 billion last year and that its profit quadrupled in the fourth quarter, beating expectations. But the firm’s chief executive noted that losses on consumer loans remained high and would remain an issue in 2010.

“It does continue to bring up old fears,” said James W. Paulsen, chief investment strategist for Wells Capital Management.

The Dow Jones industrial average declined 0.94 percent, or 100.90 points, to 10,609.65. The Standard & Poor’s 500-stock index fell 1.08 percent, or 12.43 points, to 1,136.03. The Nasdaq composite index dropped 1.24 percent, or 28.75 points, to 2,287.99.

For the week, the Dow industrials slipped 0.1 percent, the S.& P. 500 index lost 0.8 percent and the Nasdaq fell 1.3 percent.

All sectors posted losses, with shares of banks leading the retreat. JPMorgan Chase declined 2.26 percent, and Bank of America fell 3.33 percent. Many banks will report earnings next week.

Two weeks into the new year, Wall Street finds itself searching for direction. Over the next few weeks, companies will continue to announce fourth-quarter earnings, and the results are expected to be mostly positive.

Expectations this quarter, however, have shifted, and investors are looking for indications that businesses have moved beyond cost-cutting and have started to bring in revenue.

After the market closed on Thursday, Intel reported a 28 percent increase in revenue and the largest gross profit margin in its history. Overnight, its shares climbed, but they closed down 3 payday cash loans.17 percent on Friday.

That seemingly irrational behavior, selling even as a company exceeds expectations, brought an adage to the minds of several investors: “Buy the rumor, sell the news.”

“It is an interesting juxtaposition,” said Hank B. Smith, chief investment officer for Haverford Investments. “These all beat expectations, but by the time all the news is disseminated, there’s concern this may be the peak for profit margins for these companies.”

Mr. Smith said he did not believe the worries were valid. But he said Wall Street’s negative reaction to the cheery reports could indicate that investors were using the earnings season as a selling opportunity.

“It would be healthy for the market to consolidate and pull back,” Mr. Smith said. “It’s very normal to have a correction — defined as 10 percent or more — in a bull market.”

After an energetic rebound in the stock market last year, equities are expected to rise modestly through 2010. The Dow is approaching a psychologically important milestone — 11,000 points, a level not seen since before the financial crisis — and the S.& P.’s 500-stock index is nearing 1,150 points.

Economic data released on Friday provided little relief from investors’ concerns over profits. A report said manufacturing activity fell slightly in December, and a barometer of consumer sentiment released by the University of Michigan rose slightly this month but fell short of expectations.

Still, there were signs that the near-zero interest rates may remain in place for some time, a boon for stocks. A Labor Department report suggested inflation was largely in check, with consumer prices increasing just 0.1 percent in December.

Interest rates were lower Friday. The Treasury’s 10-year note rose 15/32, to 97 16/32, and the yield fell to 3.68 percent from 3. 74 percent late Thursday.

United States markets are closed on Monday for Martin Luther King’s Birthday.

Stocks & Bonds: Dow Plunges 100 Points on JPMorgan’s News

Hot News: London Markets: Man Group underperforms in mildly higher FTSE 100

15
Jan

Waning volatility favors Gap, Ford stocks: analyst

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

SAN FRANCISCO (MarketWatch) — A calmer environment for stock trading, illustrated by the VIX near mid-2008 lows, should benefit stocks distinguished by potential earnings strength and price momentum — a varied group including Gap Inc., Ford Motor Co. and Goldman Sachs, say analysts at Bank of America Merrill-Lynch.

Stock Market Volatility Suggests Higher Prices

Key measures of stock market volatility, such as the Vix and VStoxx, indicate that stocks are likely to climb. But a consensus view of a 10% rise could be wrong.

The Chicago Board Options Exchange Volatility Index , which uses options contracts based on the S&P 500 index to measure market expectations of near-term volatility, has fallen 18.6% since the start of the year to 17.65. Earlier this week it breached the 17 level, a first since May 2008.

The decline in the index, often dubbed Wall Street’s fear gauge, reflects a steep rise in investor confidence as stocks rebounded from multiyear lows hit in March 2008, battered by the credit crisis and U.S. recession.

U.S. stocks, as measured by the S&P 500, have gained 36% in the past year and have surged 72% off their March lows. The VIX, meanwhile, has fallen 64% in the past year.

Cyclical sectors — or industries seen as benefiting from the early stages of an economic recovery — have led the way. Of the S&P 500’s 10 industry groups, tech, materials and consumer discretionary sectors have gained the most in the past year.

The drop in the VIX “has been associated with the outperformance of pro-economy types of sectors and the lagging behavior of healthcare, staples and more defensive stocks,” said Myles Zyblock, chief institutional strategist at RBC Capital Markets.

He thinks that trend has more room to run.

But further declines in the VIX could lay the groundwork for a different type of stock-picking strategy.

Focus on fundamentals

B. of A. quantitative strategist Savita Subramanian wrote Wednesday that “the likeliest direction for the VIX is a continued decline over the next 12 months” and suggested this extended drop will favor investing strategies that select stocks attractive in terms of their price momentum and their prices compared to past earnings no teletrack payday loans.

A focus on more fundamental measures contrasts with last year, when the dramatic drop in the VIX favored stocks seen as riskier, such as those with small sizes, and those that carried high betas. A high beta indicates a stock tends to make wilder swings than the broader market.

To pick the best stocks for a period of low volatility, B. of A. analysts screened stocks using strategies that seemed to work best in the 2004 to 2006 period.

These included those that were in the top quartile of the S&P 500 based on price momentum, which essentially shows how much these stocks have started to rise; whether Wall Street stock analysts were increasing their earnings estimates for the companies; and valuation based on earnings and cash flow yield. They also had to be rated “buy” by B. of A. stock analysts.

The list includes a handful of consumer oriented stocks — including Gap , Priceline.com , and Ford Motor Co. — as well as miner Freeport McMoRan , brokerage Goldman Sachs Group Inc. , paper company MeadWestvaco and energy company Anadarko Petroleum Corp. .

Shares in Gap have gained 72% over the last 12 months. Priceline has surged 202%; Ford Motor shares have ballooned 420% and Goldman Sachs shares have gained 123%.

The S&P 500, in contrast, has gained 36%.

In Thursday’s trading, major stock indexes rose to new 15-month highs, though most sectors struggled for direction as investors awaited the after-hours release of Intel Corp. .

The Dow Jones Industrial Average closed up 30 points, or 0.3%, to 10,711. The Nasdaq Composite gained 9 points, or 0.4%, to 2,317. The S&P 500 added 3 points, or 0.2%, to 1,148.

Waning volatility favors Gap, Ford stocks: analyst

Hot News: Techs lead Wall St higher; Intel up after results

05
Jan

Giant Tuna Fetches $177, 000 at Japanese Auction

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

Filed at 6:29 a.m. ET

TOKYO (AP) — A giant bluefin tuna fetched 16.3 million yen ($177,000) in an auction Tuesday at the world’s largest wholesale fish market in Japan.

The 513-pound (233-kilogram) fish was the priciest since 2001 when a 440-pound (200 kilogram) tuna sold for a record 20.2 million yen ($220,000) at Tokyo’s Tsukiji market.

The gargantuan tuna was bought and shared by the owners of two Japanese sushi restaurants and one Hong Kong-based sushi establishment, said a market representative on condition of anonymity because he was not authorized to disclose the information.

Caught off the coast of northern Japan, the big tuna was among 570 put up for auction Tuesday. About 40 percent of the auctioned fish came from abroad, including from Indonesia and Mexico, the representative said.

Japan is the world’s biggest consumer of seafood with Japanese eating 80 percent of the Atlantic and Pacific bluefins caught no faxing 1 hour payday loans. The two tuna species are the most sought after by sushi lovers.

However, tuna consumption in Japan has declined because of a prolonged economic slump as the world’s second-largest economy struggles to shake off its worst recession since World War II.

”Consumers are shying away from eating tuna … We are very worried about the trend,” the market representative said.

Apart from falling demand for tuna, wholesalers are worried about growing calls for tighter fishing rules amid declining tuna stocks.

The International Commission for the Conservation of Atlantic Tunas in November slashed the quota for the 2010 catch by about one-third to 13,500 tons (12,250 metric tons) — a move criticized by environmentalists as not going far enough.

Giant Tuna Fetches $177, 000 at Japanese Auction

31
Dec

No 2009 cash bonuses for top Wells Fargo execs

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

SAN FRANCISCO (MarketWatch) — Wells Fargo said Thursday that four top executives won’t get 2009 cash bonuses.

Wells became the latest financial institution to change its compensation policies in the wake of a national uproar over executive pay this year.

The four executives, including Chief Executive John Stumpf and Chief Financial Officer Howard Atkins, will be getting restricted stock currently worth a total of roughly $25 million, Wells added.

Steve Sanger, who chairs the Human Resource Committee of Wells board of directors, said the stock was granted to the executives to encourage them to stay at the bank to help integrate its acquisition of Wachovia and steer the company out of the recent recession.

“Given the current challenges impacting the banking industry, Wells Fargo executives, at all levels, are being increasingly and aggressively recruited by competitors,” Sanger said in a statement. “Retaining them, along with our entire senior management team, is clearly in the best interest of our Company and its shareholders.”

Wells was among the first group of large U.S. financial institutions to get tens of billions of dollars in government money via the Troubled Asset Relief Program, or TARP, in the midst of the financial crisis last year.

The bank was reluctant to take the money and became more uncomfortable with the program as it became clearer that tough compensation limits would accompany government support.

Wells said as recently as September that it would repay TARP without selling new stock and further diluting shareholders’ stakes. The bank argued that it was generating enough capital internally to exit the program.

However, on Dec. 18, Wells ended up selling 489.9 million new shares of common stock at $25 each, raising $12.25 billion to help repay government support. Last week, Wells exited TARP, freeing itself from government limits on compensation loan till payday. See full story.

Despite that, Wells and other institutions have been under pressure to change executive compensation practices, after some experts blamed excessive pay for helping fuel the credit market boom and subsequent bust. See MarketWatch.com special report on CEO Pay.

Goldman said recently that its 30-person management committee will be getting bonuses for 2009 in the form of “shares at risk” instead of cash. The shares cannot be sold for five years. The firm, which was the first major institution to exit TARP, also gave shareholders an annual vote on its pay practices. Read about recent pay changes at financial institutions.

Morgan Stanley is planning to defer more compensation for top executives over time and benchmark pay against rivals, the Wall Street Journal reported recently. See complete article on Morgan Stanley’s compensation overhaul at WSJ.com.

Wells said Thursday that Stumpf will get 379,600 shares, currently worth about $10 million.

CFO Atkins; Dave Hoyt, head of wholesale banking; and Mark Oman, who runs the bank’s Home and Consumer Finance unit, will get 189,800 shares, worth roughly $5 million, Wells added.

The bank said these shares aren’t cash compensation or a form of annual incentive bonus. The stock will be forfeited if the executives leave the company to work for a rival, Wells explained.

The shares vest after three years only if the company meets specific performance targets. After that, the stock is covered by a “long-standing” policy that a portion of all shares earned by executives as compensation must be held for as long as they work at the company, Wells added.

No 2009 cash bonuses for top Wells Fargo execs

27
Dec

Christmas and Boxing Day shoppers defy British recession

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

By Peter Barker

LONDON, Dec. 26 (Xinhua) — Despite the continuing recession, shoppers in Britain took to the Internet on Christmas Day and the High Street on Boxing Day in the search for bargains.

On Christmas Day all shops, banks and transport were shut, but the first shopping days after Christmas now see big discounts from high street retailers large and small, known as the Sales.

Up until the late 1990s virtually no high street chains were open on Boxing Day, December 26. After that retailers quickly seized the opportunity to be open for customers keen to find bargains.

This year supermarket chains like Tesco and Sainsbury’s opened stores, but other famous chains like Marks & Spencer and Waitrose remained shut. Some household names, like Debenhams and Next, opened earlier than usual, at 8 a.m..

The Guardian newspaper reported on its website that in London, hundreds of people queued outside Selfridges’ flagship store before the doors opened at 9 a.m.. When the doors opened shoppers rushed for bargains and stewards were used to control the crowd.

Richard Brasher, Tesco’s commercial and trading director, said in a statement: “Boxing Day is a key time for customers looking to save on electrical items, homeware and clothing. We will cut prices on big brand homeware and electricals.”

Online retail is an area which barely existed 10 years ago, but with the greater penetration of broadband and the increasing e-retail awareness of businesses, it is fast becoming an important source of income and is breaking down the old tradition that Christmas Day was a day when no shopping was done.

Internet retailing is driven by infrastructure and demand. According to the Office of National Statistics, at the end of 2008,the last period statistics are available for, 95.1 percent of all Internet connections were broadband, with 59.6 percent at speeds of more than 2 Mbps (megabytes per second).

Advertisers recognize this, and in 2008 the Internet took 23.2 percent of total ad spend, according to Ofcom, the communications industry regulator in Britain. This was beaten only by newspapers (28.4 percent) and TV (26.4 percent). The proportion of ad spend on the Internet in Britain was far higher than in any other major developed nation, with France and Germany next on 15.6 percent and15.3 percent respectively.

Robin Goad, research director at Experian Hitwise, said: “Last year Christmas Day was the seventh busiest online day of the year for online retailers, while Boxing Day was the busiest Same day payday loans.

“Over the last few years the importance of these two days has been increasing, and we see no reason for it to be any different this Christmas. We have already seen that shoppers are willing to hold out longer for a bargain this year, with ‘Cyber Monday’ moving a week closer to Christmas.

“This behavior is likely to carry through to the post-Christmas period, with people logging on after Christmas lunch to find the best discounts before hitting the high street and shopping malls the following day (Boxing Day).”

Cyber Monday is the name given to the busiest Internet shopping day of the year, usually the first Monday in December as customers place orders for their Christmas presents in time for them to be delivered.

E-retail industry body IMRG estimated that on Christmas Day 4.3million shoppers went on-line - spending 120 million pounds (about191.5 million U.S. dollars), at an average of 27.90 pounds each.

The year-on-year growth in sales value for December is expected to be around 14 percent, with around 5.2 billion pounds (about 8.3billion U.S. dollars) expected to be spent online this month.

Christmas Day sales online are boosted by the presents given earlier in the day.

David Smith, director at IMRG, described what happens. He said: “A lot of purchases are for downloads be it films or computer games. If you have received a games console or computer for Christmas one of the first things you want to do is download something.”

Brian McBride, managing director of Amazon.co.uk Ltd, said: “In2008, we saw a 150 percent increase in sales on Christmas Day compared to the previous year. One of the great things about the advent of Internet shopping is that you now have stores that are open 24/7, every single day of the year.

“We saw high volumes of gift certificates being redeemed on Christmas Day as well as a substantial number of MP3 tracks being purchased, with people presumably logging on to get content for the MP3 player that they had received as a gift earlier that day.”

McBride said that when the figures for Christmas Day 2009 were known, he expected them to be even better.

Christmas and Boxing Day shoppers defy British recession

25
Dec

Weekend Investor: How to keep your finances on track in 2010

By alfredlester Closed
Categories: business, economic, life, money and world
Tags: , , , ,

NEW YORK (MarketWatch) — There’s no way to put a positive spin on what happened to most investors’ retirement portfolios in 2008 and early this year. Simply put, the losses were brutal, and in some cases ruined long-held retirement plans.

Yet if there’s any consolation to be taken from the past 18 months, it’s that many people now pay more attention to their total financial picture — not just stock and bond investments, but saving and spending habits as well.

Buckle up for 2010 markets

A dozen experts weigh in with their 2010 predictions for stocks, bonds and the economy. Barron’s Clare McKeen reports.

“There’s no silver bullet that can undo what happened last year,” said Richard Hisey, president of AARP Financial Inc. “There’s no guarantee [that losses won't happen again] but that’s no reason to not take steps [to improve finances].”

There are basic financial measures that all investors should be aware of, Hisey said, such as being disciplined about spending and keeping a watchful eye on an investment portfolio’s asset allocation.

“If anyone takes an objective look at their finances and how they can improve them, it’s surprising how [much] they can make improvements by having a budget and sticking to it,” Hisey said.

“People don’t have time to focus on their saving as much as they should,” he added. “By keeping the message simple and encouraging work on basic things, it’s easier to get through.”

As the new year approaches, here are some steps to get your finances back on track:

1. Be practical. Inventory all of your assets and liabilities and take it even further by looking at the different types of liabilities. Use some assets — savings in a cash account that yields practically zero, for instance — to repay certain types of debt, such as the balance on a credit card that’s charging 15% interest a year.

2. Revisit retirement goals. For many people, retirement means days of fishing or playing golf, or lying on a beach sipping cocktails. In truth, it may be time to shelve those dreams and prepare for a retirement that includes some sacrifices.

This realization can be difficult for baby boomers, who often have a disconnect between how they envision retirement and how they’ve actually prepared for it, Hisey said.

For example, you might have to move to a smaller house or apartment. And many people at retirement age will have to accept that they’ll still be working, if only part-time, Hisey said.

3. Don’t ignore inflation. The impact of inflation on a nest egg is difficult to grasp, especially since inflation lately has been relatively tame.

One way to imagine the sting of inflation, Hisey said, is to compare what basic goods and services cost a couple of decades ago with their prices today instant payday loan. Gasoline is a good example, Hisey said: “Remember when you paid less than $1 a gallon for gas, and then think about paying $4 a gallon recently.”

4. Save, save, save. It’s often-quoted advice, but saving as much money as possible — and starting early — can make a huge difference in the quality of your later years. Some investment companies recommend stashing away 10% or even 15% of gross salary, but Hisey didn’t want to put a set number on it. Even 2%, if that’s all one can afford, should be set aside — but always with a view to increasing that amount.

5. Be smart about insurance. Get strategic about what insurance to take and when to take it. For instance, for a younger person with a young family, full life insurance makes sense. But once the children have left and are making their own money — and as the infirmities of old age creep in — it might be worth drawing down the life insurance and increasing disability insurance so that illness doesn’t mean the loss of income.

There’s also the matter of having the right type of insurance. Hisey spoke of one family whose house burned down who turned to their insurer only to discover that their insurance payout had a limit. The family was forced to tap retirement savings to buy another house.

“People should look at their finances the way companies do,” Hisey said. “There are assets such as hard assets and also human capital — the value of your work — and you need to protect those assets. Look as hard at your insurance portfolio as you would your investment portfolio.”

6. Don’t let panic dictate investment choices. Last year’s losses have led many investors to change their asset allocation and diversification strategies. In some cases, this is the result of deliberate decisions taken in light of the changed market. But all too often it’s the reaction of a panicked or fearful investor.

Regardless of what the market is doing, sticking with an allocation that matches an investor’s principles, especially when it comes to risk, is most important, said Hisey.

7. Get help if you need it. AARP encourages investors to work with financial professionals when it comes to making their financial and investing decisions. The organization believes these professionals can provide valuable guidance, particularly in times of crisis.

“Make sure you find somebody you can trust,” Hisey said. “It should be a relationship like the one you have with your doctor — get second opinions if want them and keep asking questions. If they can’t explain things in ways that you understand, move on.”

Weekend Investor: How to keep your finances on track in 2010

« Previous Entries