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March 30, 2011

Your $67 rebate from Bell is in the mail

Filed under: investors, mortgage — Tags: , , , — ManInBlack @ 4:07 pm

If you’re an active Bell home phone customer and you live in an urban area, you’re entitled to get a $67.41 rebate cheque. Eligible customers were notified last November.

 I’ve heard from a half dozen people who asked about the Bell rebates. One man called to tell me that only half his friends opened their letters. The other half threw them out, dreading to get yet another frenzied sales pitch.

A young blogger came close to recycling the envelope unopened, showing a widespread aversion to Ma Bell’s high-pressure marketing tactics.

Sheila, a retiree, wondered if the cheque was legitimate. "By cashing it, will I have engaged in the law of contract and have to buy some package? I am suspicious at how they have linked it with other ‘offers.’ But at the same time I can’t afford to throw money away."

In an earlier campaign, Bell tried to get customers to trade off their $67.41 rebate for a $100 saving on a service, subject to a two-year contract. I wrote about it here.

Spokeswoman Jacqueline Michelis said the envelope was Bell branded and had a message, "Important Account Information" clearly written on the front of it, above the name and address window low fee pay day loans. If you have misplaced your cheque, you should call 310-Bell, she advises.

I’m not eligible, alas, even though I overpaid Bell during the period in question. I switched to another provider before the deadline of Aug. 31, 2010.

Meanwhile, those who became Bell customers last year — say Aug. 1, 2010 — are getting rebates even if they weren’t responsible for contributing the excess funds.

If you don’t like the system, complain to the regulator. The CRTC ordered refunds to customers of Bell Canada, Bell Aliant, Telus and MTS, whose money went into a reserve account.

I always cringe when people tell me they throw out letters from companies they deal with before reading them. You can’t assume something is junk mail without making sure what it contains.

And in this case, you could be foregoing enough money to treat yourself to a nice meal or buy a new pair of shoes. The Bell tolls for you, so make sure to answer the call.

Source

Hoenig announces October retirement from Fed

Filed under: marketing, small business — Tags: , , , — ManInBlack @ 7:15 am

Thomas M. Hoenig, the longest serving of the Federal Reserve’s 12 regional bank presidents, announced on Friday that he will retire on Oct. 1.

Hoenig, who had headed the Fed’s Kansas City regional bank since 1991, has opposed the Fed’s efforts to boost the economy through an extended period of low interest rates and the purchase of billions of dollars in Treasury securities.

He dissented against those policies at all eight Fed meetings last year. He argued that the Fed’s efforts to spur growth could kindle future inflation.

His departure had been expected because he will reach the mandatory retirement age for Fed bank presidents of 65 in September.

Hoenig was not joined in his opposition to the Feb policies by other members of the Federal Open Market Committee, the panel of Fed board members and regional bank presidents who set monetary policy. This year, there have been no dissents. Hoenig does not have a vote on the FOMC this year.

Hoenig first joined the Kansas City Fed in 1973 as an economist in bank supervision and his time in that division included the banking crisis of the 1980s. He was involved with regulatory actions on nearly 350 banks that either failed or needed government assistance.

The Kansas City Fed has formed a search committee to select Hoenig’s successor. The successful candidate will need the approval of the directors who serve on the Kansas City Fed’s board.

Source

March 23, 2011

Concern in Tokyo over radiation in tap water

Filed under: business, money — Tags: , , , — ManInBlack @ 4:31 pm

A spike in radiation levels in Tokyo tap water spurred new fears about food safety Wednesday as rising black smoke forced another evacuation of workers trying to stabilize Japan’s radiation-leaking nuclear plant.

Radiation has seeped into vegetables, raw milk, the water supply and seawater since a magnitude-9 quake and killer tsunami crippled the Fukushima Dai-ichi power plant nearly two weeks ago. Broccoli was added to a list of tainted vegetables, and U.S. officials announced a block on Japanese dairy and other produce from the region.

The crisis is emerging as the world’s most expensive natural disaster on record, likely to cost up to $309 billion, according to a new government estimate. The death toll continued to rise, with more than 9,400 bodies counted and more than 14,700 people listed as missing.

Concerns about food safety spread Wednesday to Tokyo after officials said tap water showed elevated levels: 210 becquerels per liter of iodine-131 _ more than twice the recommended limit of 100 becquerels per liter for infants. The recommended limit for adults is 300 becquerels.

“It is really scary. It is like a vicious negative spiral from the nuclear disaster,” said Etsuko Nomura, a mother of two young children ages 2 and 5. “We have contaminated milk and vegetables, and now tap water in Tokyo, and I’m wondering what’s next.”

Infants are particularly vulnerable to radioactive iodine, which can cause thyroid cancer, experts say. The limits refer to sustained consumption rates, and officials urged calm, saying parents should stop giving the tap water to babies, but that it was no worry if the infants already had consumed small amounts.

They said the levels posed no immediate health risk for older children or adults.

“Even if you drink this water for one year, it will not affect people’s health,” Chief Cabinet Secretary Yukio Edano said.

Tokyo residents shouldn’t worry, said Dr. Lim Sang-moo, director of nuclear medicine at the Korea Cancer Center Hospital in Seoul.

Parents might want to be more cautious if they have a choice. “Nobody wants to drink radioactive water,” he said. But “it’s not a medical problem but a psychosocial problem: The stress that people get from the radioactivity is more dangerous than the radioactivity itself.”

Experts also say iodine-131 dissipates quickly in the air, with half of it disappearing every eight days.

Richard Wakeford, a public health radiologist at the University of Manchester in Britain, blamed the spike in radiation on a shift in winds from the nuclear plant toward Tokyo. He predicted lower levels in coming days once the wind shifts back to normal patterns.

“I imagine that bottled water is now quite popular in Tokyo,” he said.

The latest reported food data showed sharp increases in radioactivity levels in a range of vegetables. In an area about 25 miles (40 kilometers) northwest of the plant, levels for one locally grown leafy green called kukitachina measured 82 times the government’s limit for radioactive cesium and 11 times the limit for iodine cash advance no faxing.

The unsettling new development affecting Japan’s largest city, home to some 13 million in the city center and 39 million in the greater Tokyo area, came as nuclear officials struggled to stabilize the hobbled reactor 140 miles (220 kilometers) to the north.

The quake and tsunami that struck off the east coast March 11 knocked out the plant’s crucial cooling systems.

Explosions and fires followed in four of the plant’s six reactors, leaking radioactive steam into the air. Progress in cooling down the facility has been intermittent, disrupted by rises in radiation, elevated pressure in reactors and overheated storage pools.

The plant operator had restored circuitry to bring power to all six units and turned on lights at Unit 3 late Tuesday for the first time since the disaster _ a significant step toward restarting the cooling system.

It had hoped to restore power to cooling pumps at the unit within days, but experts warned the work included the risk of sparking fires as electricity is restored through equipment potentially damaged in the tsunami.

Tokyo Electric Power Co. manager Teruaki Kobayashi said the pump for Unit 3 had been tested and it was working. But officials weren’t sure when they would be able to turn the power on to the pump.

In a new setback, black smoke billowed from Unit 3, prompting another evacuation of workers from the plant during the afternoon, Tokyo Electric officials said. They added that there had been no corresponding spike in radiation at the plant.

“We don’t know the reason” for the smoke, said Hidehiko Nishiyama of the Nuclear Safety Agency.

As a precaution, officials have evacuated residents living within 12 miles (20 kilometers) of the plant and advised those up to 19 miles (30 kilometers) away to stay indoors to minimize exposure.

And for the first time, Edano suggested that those downwind of the plant, even if just outside the zone, should stay indoors with the windows shut tight.

Survivors, meanwhile, buried the dead from the disaster in makeshift coffins, resorting to wrapping some bodies in blue tarps.

In Higashimatsushima, about 200 miles (320 kilometers) northeast of Tokyo, soldiers lowered bare plywood coffins into the ground, saluting each casket, as families watched from a distance. Two young girls wept inconsolably, their father hugging them tight.

“I hope their spirits will rest in peace here at this temporary place,” said mourner Katsuko Oguni, 42.

Hundreds of thousands remained homeless, squeezed into temporary shelters without heat, warm food or medicine and no idea what to call home after the colossal wave swallowed up cities and towns along the coast.

Source

March 22, 2011

Europe agrees financing for future bailout fund

Filed under: Uncategorized, term — Tags: , , , — ManInBlack @ 12:47 am

Germany’s finance minister says 17 states that use the euro have agreed on the financing of the eurozone’s future bailout fund and slightly lowered the contributions for poorer states.

Wolfgang Schaeuble said Monday the eurozone members will give the European Stability Mechanism a capital base of euro80 billion and provide euro620 billion in callable capital, which has to be made available if a bailed out country looks unable to repay its loans.

That will give the ESM _ which will come into force in mid-2013 _ an effective lending capacity of euro500 billion.

Schaeuble also said that the formula to calculate each state’s contributions will be changed to give economic output more weight than population _ slightly lowering the burden on poorer countries.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

BRUSSELS (AP) _ Germany’s finance minister says 17 states that use the euro have agreed on the financing of the eurozone’s future bailout fund and slightly lowered the contributions for poorer states free credit score.

Wolfgang Schaeuble said Monday the eurozone members will give the European Stability Mechanism a capital base of euro80 billion and provide euro620 billion in callable capital, which has to be made available if a bailed out country looks unable to repay its loans.

That will give the ESM _ which will come into force in mid-2023 _ an effective lending capacity of euro500 billion.

Schaeuble also said that the formula to calculate each state’s contributions will be changed to give economic output more weight than population _ slightly lowering the burden on poorer countries.

Source

March 20, 2011

Retirement confidence slips as more workers fear losses

Filed under: loans, mortgage — Tags: , , , — ManInBlack @ 10:39 am

More than a quarter of U easy payday loans.S. workers

March 18, 2011

Ontario won

Filed under: economics, uk — Tags: , , , — ManInBlack @ 7:18 pm

Ontario will continue to relay heavily on nuclear power in the future despite the nuclear crisis in Japan, says energy minister Brad Duguid.

Duguid

March 17, 2011

Foursquare and its rivals try out Groupon’s business model

Filed under: economics, money — Tags: , , , — ManInBlack @ 4:22 am

Location-based social networks Foursquare, Gowalla, and Loopt have collectively raised almost $50 million in funding from investors, and racked up around 13 million users.

Now it’s time for Act 2: making those users pay off.

South by Southwest (SXSW) is the ideal testing ground for these so-called "geosocial" apps. With events every hour at the city’s jammed bars and restaurants, show attendees often rely on check-in apps to find out where their friends are flocking. Last year, New York-based Foursquare and local startup Gowalla went head-to-head at SXSW in a battle for attention.

This year, they’re using the show as a testing ground for business models. For inspiration, they’re eying Groupon, the daily-deals wunderkind that reportedly has annual sales topping $1 billion.

Foursquare has in the past experimented with sponsored promotions and exclusive deals. At SXSW, it teamed up with American Express to offer card holders discounts at local merchants.

"We basically built a way for you to load deals onto your AmEx card," says Foursquare founder Dennis Crowley. "You sync your Amex card with your Foursquare account, and when you do that you start to see additional specials."

Spending $5 at a participating merchant automatically credits $5 to the Amex account. The program isn’t generating any revenue for Foursquare, but could serve as a model for future business deals.

Loopt — older than Foursquare, but with a smaller user base — is also eying discounts and rewards as a way to monetize its members.

"I think the big trend with location is about value," Loopt founder Sam Altman said.

Like Foursquare, Loopt launched a feature that allows businesses to send location-specific offers directly to consumers’ phones. The company didn’t take a cut of the deals, but plans to on future promotions.

"The key for all of us is to provide a better experience of the real world," Altman says.

"We’ll be successful to the degree we can make users’ lives better/more interesting, and also based on how much we can increase the revenue of local businesses.

Gowalla also got into the discounts game at SXSW, launching its pilot test for Gowalla Rewards, another local-merchant daily-deals campaign.

Fine-tuning their core offerings is still critical for the geolocation services if they want to reach a mass audience. Just 4% of online adults use sites like Foursquare, according to a recent Pew Research Center study.

The companies hope they can increase that tally by enhancing their applications. Virtual prizes — like badges advertising "achievements" such as checking in to 100 places — won over early adopters, but the holdouts need more to lure them in.

At SXSW, Foursquare rolled out a new recommendations engine, drawing on the mine of data it has collected. Last year, the company — which now has 50 employees — recorded 382 million check-ins from its 7 million members.

"Every check-in that we do, every piece of information that we put into the system, we recycle back and we get smarter and help you figure out things in the city," Crowley said of the new feature. 

Source

March 15, 2011

Inflation Surprise Spoils Five-Week Bond Rally as RBI Meets: India Credit - Bloomberg

Filed under: Canada, Uncategorized — Tags: , , , — ManInBlack @ 1:26 pm

An unexpected jump in India’s inflation last month ended a five-week rally in bonds and reinforced expectations the central bank will raise interest rates this week.

The yield on the 8.08 percent bond due in August 2022 climbed 4 basis points yesterday, after dropping 21 since Feb. 4. Wholesale prices rose 8.3 percent from a year earlier, compared with 8.2 percent in January and the median forecast in a Bloomberg survey of 7.8 percent. The Reserve Bank of India will boost the repurchase rate on March 17 by a quarter point to 6.75 percent, according to all 24 economists in separate survey.

The government data surprised investors because Reserve Bank Governor Duvvuri Subbarao had predicted inflation would slow to 7 percent by March 31 as winter harvests curb food-price increases. The rate is second only to Russia among the so-called BRIC nations including Brazil and China, where central banks have all signaled plans to raise rates during the past month.

“The current trajectory of inflation is significantly higher than the RBI’s comfort zone,” said Sajjid Chinoy, a Mumbai-based economist with JPMorgan Chase & Co. “The sustained increase in the momentum of manufacturing inflation is testimony enough that the central bank should have been more aggressive.”

Faster price increases threaten to erode the purchasing power of the three-quarters of India’s 1.2 billion people who the World Bank estimates live on less than $2 a day. The benchmark inflation in India is more than China’s 4.9 percent and Brazil’s 6.01 percent and compares with 9.5 percent in Russia. India’s government also revised the December inflation rate to 9.41 percent from an earlier estimate of 8.43 percent.

Bonds Rally

The Reserve Bank raised benchmark rates seven times in the past year, compared with five times in Brazil and three times in China. Russia’s central bank unexpectedly lifted the refinancing rate from a record low last month, the first increase since December 2008 to curb price gains.

The yield on the 11-year bond, which rose the most in five weeks yesterday, fell two basis points to 8.08 percent today. The rate on debt maturing in May 2020, which has become less active, fell 8 basis points, or 0.08 percentage point, to 7.90 percent. The gap between 10-year Indian and the U.S. government bonds reached an almost nine-month low of 439 basis points on March 3, poised to narrow for a second straight quarter, data compiled by Bloomberg show. The difference was 471.5 today.

The five-week rally in bonds was driven by signs price increases were slowing. Food inflation was 9.5 percent in the week ended Feb. 26, the smallest gain in three months, as the winter harvest boosted supplies of vegetables and potatoes, the government said March 10.

Food Prices

“I don’t think there is a strong argument in favor of continuing the hikes in the same measure as last year,” said Shubhada Rao, chief economist at Mumbai-based Yes Bank Ltd. “The past tightening is definitely beginning to moderate the economic activity and inflation should trend lower.”

She predicts wholesale-price gains to average about 7.5 percent in the fiscal year starting April 1, compared with 9.3 percent in 2010, with the 10-year yield hovering between 8.10 to 8.15 percent by the end of this month.

Manufacturing inflation accelerated to 4 personal business card.9 percent in February from 3.8 percent in January, government data show. The cost of manufactured products accounted for 36 percent of the inflation rate in February compared with 27.5 percent in January, signaling growing consumer demand.

Consumer Demand

“Consumer demand remains pretty strong and hence all the more responsibility on the RBI to raise rates,” said Leif Eskesen, an economist at HSBC Holdings Plc in Singapore. “We think the RBI’s 7 percent target by March-end is not going to happen.”

HSBC expects the RBI to raise rates by 25 basis points on March 17 and predicts the 2020 yield will rise to around 8.1 percent by the end of the year. JPMorgan sees a range of 7.9 percent and 8 percent by the end of March.

An 18 percent surge in crude oil prices in the past month may make it more difficult for India’s policy makers to contain price pressures. The nation imports almost 75 percent of the oil it uses. The commodity, which reached a 29-month high of $106.95 per barrel in New York on March 7, fell to a two-week low of $98.41 today on concern the March 11 earthquake in Japan will limit demand in the world’s third-largest economy.

“It’s clear that our effort and policies to bring down inflation will continue,” Kaushik Basu, the chief economic adviser in India’s finance ministry, said on March 10.

The cost of fixing interest rates for a year in India’s swaps market has dropped 16 basis points since Feb. 28 to 7.33 percent today, after jumping 35 in the previous two months as oil rose, Bloomberg data show.

‘Huge Uncertainty’

“Oil prices are a huge uncertainty” for India’s policy makers, said Sonal Varma, an economist at Nomura Holdings Inc. in Mumbai. “It may have come down a bit after the Japan quake, but it’s around $100 a barrel and still very high.”

Nomura predicts the 10-year yield at 7.9 percent this month. Rupee debt has returned 1.45 percent in 2011, the third- best performance in Asia, according to indexes compiled by HSBC Holdings Plc. Notes in Singapore earned 1.75 percent, the most in the region.

The rupee has slid 1.23 percent this year, the third-worst performance among Asia’s 10 most-traded currencies excluding the yen, according to data compiled by Bloomberg. It fell 0.3 percent to 45.26 per dollar today.

State Bank Debt

The cost of protecting the debt of government-owned State Bank, which some investors perceive as a proxy for the nation, has dropped 9 basis points to 179 this month, according to CMA prices. Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.

Morgan Stanley cut its economic growth forecast for India on March 7 to 7.7 percent from 8.2 percent for the fiscal year starting April 1.

“The two key factors making us nervous on the growth outlook are inflation persistently staying above policymakers’ comfort zone and weak investment growth trend,” said Chetan Ahya, Singapore-based regional economist at Morgan Stanley. “The recent hike in commodity prices and the consequent impact on inflation has increased the downside risks to growth.”

Source

March 13, 2011

Rally in oil stocks means it’s time to rebalance

Filed under: Uncategorized, technology — Tags: , , , — ManInBlack @ 10:42 pm

You only have to drive past a gas station to know that crude oil prices are near two-year highs. That’s not a pleasant thing for the cost of your daily commute, but it has propped up the portfolio of anyone who bought energy stocks six months ago.

It’s a tempting thought: Why not buy the stocks of companies that are profiting from $100-a-barrel oil? Energy companies in the Standard & Poor’s 500 are up nearly 10 percent for the year, almost double the performance of the next best performer among the 10 groups that make up the index. But the more energy prices rise _ and the more that energy stocks follow _ the greater the chance of an economic slowdown that can squelch a market rally.

Just ask Gary Bradshaw. A Dallas-based fund manager with Hodges Mutual Funds, a company with $415 million in assets under management, Bradshaw added to his holdings of Exxon Mobil in August when the stock was trading around $60 per share. It’s since shot up to $82. But Bradshaw isn’t as happy as you would expect for someone with a 35 percent gain in six months.

“My problem is that if oil goes too high it will kill the economic recovery and send us back into a recession,” he says. “High oil prices are good for Exxon, but the truth of the matter is that if they go too high it will kill demand.”

The ideal oil prices for a strong stock market are around $75 to $80 a barrel, he says. For now, he is considering the sale of some of his holdings in Chevron and ConocoPhillips if oil reaches $125 a barrel. At that level, he says, consumers will stop shopping, spending money at restaurants or buying new vehicles because the money they are spending on gasoline will make them cost-conscious.

With average gas prices up 35 cents a gallon since an uprising in Libya began in mid-February, “it’s too late to be buying energy companies now,” Bradshaw says. Exxon, for instance, is trading at 13.2 times its earnings over the past 12 months. That wouldn’t be high for a technology stock with a lot of expected growth, but it is higher than average for a staid oil company like Exxon. The company has cost an average of 11.8 times earnings over the past five years.

Energy companies are a good buy if you expect to hold them for three years or more, says John Canally, a market strategist at LPL Financial. But the jump in prices has pushed his team to lower their recommended holdings for stocks in general. “Higher energy prices can mean higher inflation,” he says. He recommends buying commodities like silver as a hedge.

Oil companies may be a good buy for the long run. Exxon, for instance, pays a dividend of 2.1 percent, which is more than you’d get from a five-year Treasury note. The company’s record of increasing its dividend each year is one reason why Exxon has outperformed the broad stock market over the past 10 years by an enormous margin. An investor who bought Exxon 10 years ago and reinvested his dividends had a total return of 139 percent since then. An investor in a low-cost S&P 500 index fund, meanwhile, had at best a 27 percent total return after fees.

But investors who see those returns and decide to increase the energy portion of their portfolios should consider doing so slowly. “Oil companies have a very bright future because demand is rising from emerging markets,” says Quincy Krosby, chief market strategist at Prudential Financial. She recommends waiting for prices to dip or buying at regular intervals, a technique known as dollar-cost averaging.

Source

March 12, 2011

SEC chief says she erred with handling of lawyer

Filed under: economics, legal — Tags: , , , — ManInBlack @ 7:34 am

The head of the Securities and Exchange Commission said Thursday she erred in allowing a former agency official who benefited financially from Bernard Madoff’s Ponzi scheme to play a key role crafting policy on how Madoffs’ victims should be compensated.

SEC Chairman Mary Schapiro told a House hearing she should have gone beyond the agency’s ethics requirements in her handling of David Becker, the agency’s former general counsel. She said she now wishes Becker had stayed away from the policy. Earlier this week, she told lawmakers in a letter that she didn’t see a conflict in Becker having inherited a Madoff account from his mother.

In hindsight, it would have been “appropriate” for Becker to be excluded from any SEC work on the Madoff policy, Schapiro said in testimony to two panels of the House Oversight and Government Reform Committee.

Republican lawmakers said the incident erodes the public’s trust in an agency already battered from its failure to detect Madoff’s scheme.

The Becker affair “could be the greatest challenge to the SEC” since the Madoff scandal, said Rep. Darrell Issa, R-Calif., chairman of the full oversight committee. “We’re not willing to accept that this can ever happen again.”

The SEC inspector general is investigating the agency’s handling of Becker, who is being sued because a federal court-appointed trustee says he inherited money his mother made from Madoff’s scheme. Madoff pleaded guilty in 2009 after conducting a multibillion-dollar investment fraud scheme.

“From where I sit now … I wish that Mr. Becker had recused himself, absolutely,” Schapiro said

Republicans are questioning Schapiro’s judgment at a time when the SEC is seeking more money from Congress to implement new financial regulatory rules. Many GOP lawmakers voted against the sweeping financial overhaul law and now say the SEC has been rushing out the rules.

Schapiro said the agency needs the $1.4 billion for the budget year beginning Oct. 1 to hire new staff and to invest in new technology to police sprawling markets.

Schapiro said the agency is making a “top-to-bottom” review of its conflict-of-interest and other ethics policies.

“We will learn from this experience and we will take all actions necessary to earn the trust the public places in us,” she said.

Becker, who was appointed by Schapiro in February 2009, left the SEC last month. His tie to Madoff became public late last month, when the court-appointed trustee sued Becker and his brothers, saying they earned more than $1.5 million in profits from their deceased mother’s investments with Madoff.

Schapiro says she left it to Becker to get a judgment from the agency’s ethics officer on whether he had a potential conflict of interest.

Becker did that. The ethics officer told him that “a reasonable person with knowledge of all of these facts would not question (his) impartiality.”

Source

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