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July 14, 2011

Wholesale prices drop for first time in a year

Filed under: business, technology — Tags: , , , — ManInBlack @ 8:48 pm

Companies paid less for raw materials and factory goods in June, evidence that inflation pressures are weakening as gas prices fall.

The Labor Department says that the Producer Price Index, which measures price changes before they reach the consumer, declined 0.4 percent in June, the steepest drop since February 2010. Wholesale energy prices fell 2.8 percent, the biggest decline in nearly two years.

Gas prices averaged $3.65 a gallon on Wednesday, according to AAA. That’s down from nearly $4 in early May.

Food prices rose 0.6 percent in June, mostly because of higher fruit and melon costs.

Excluding the volatile food and energy categories, the so-called core index rose 0.3 percent, driven largely by a jump in prices for pickup trucks.

Source

July 11, 2011

World stocks decline after weak US jobs report

Filed under: business, news — Tags: , , , — ManInBlack @ 2:44 pm

World stock markets slid Monday, dragged by global economic angst after an unexpectedly weak U.S. jobs report and surging inflation in China.

Wall Street’s sharp drop before the weekend extended to Asia and Europe, where investors digested news that U.S. employers created the fewest number of jobs in nine months. The 18,000 net jobs in created in June were a fraction of what many economists expected and dampened hopes that the economy is improving.

“Economic news in the U.S. was disappointing,” said a Barclays Capital report Monday. “The employment report was weaker than expected across the board _ employment, unemployment, hours, and wages all reflected the same worrisome trend.”

As trading got under way in Europe, France’s CAC 40 was off 1.3 percent at 3,861.08 and Britain’s FTSE 100 dropped 0.2 percent to 5,976.79. Germany’s DAX shed 0.9 percent to 7,337.62. Wall Street was also set for losses with Dow futures down 0.7 percent at 12,529.

In Asia, Japan’s Nikkei 225 stock average lost 0.7 percent to 10,069.53 and Hong Kong’s Hang Seng retreated 1.7 percent to 22,347.23. South Korea’s Kospi fell 1.1 percent to 2,157.16 while the Shanghai Composite index edged up 0.2 percent to 2,802.69.

Also dragging sentiment was data released Saturday showing China’s inflation accelerated to a three-year high in June even as the overheated economy began to cool.

Consumer prices rose 6.4 percent over a year ago, a sharp jump from May’s 5.5 percent rate, China’s government said Saturday. Communist leaders declared taming prices their priority this year, but they have been frustrated amid inflation’s steady rise.

In Australia, the government’s new carbon tax proposal battered stocks. The S&P/ASX 200 shed 1.6 percent to 4,582.30.

Prime Minister Julia Gillard unveiled a plan Sunday to force the country’s 500 worst polluters to pay 23 Australian dollars ($25) for every ton of carbon dioxide they emit.

Australia’s flagship carrier Qantas said Monday the tax will cost it 110 million to 115 million Australian dollars ($118 million to $123 million) for the 2013 financial year and lead to an increase in passenger fares.

Qantas Airways shares tumbled 3.3 percent, and Virgin Blue Australia Holdings fell 2.9 percent.

Another big loser in Australia was Rupert Murdoch’s News Corp., which fell more than 5 percent. The 80-year-old CEO arrived in London over the weekend to tackle a phone-hacking crisis that led to the quick demise of his best-selling Sunday tabloid, the News of the World.

In Tokyo, chip-related shares tumbled after Credit Suisse downgraded its rating on Elpida Memory Inc. to “underperform” from “neutral.” The issue fell more than 13 percent, while chip equipment maker Tokyo Electron Ltd. slid 2.9 percent.

“PC demand continues to slump, reflecting market saturation in advanced countries, and the severe delay in the Chinese laptop market staging a recovery,” Credit Suisse analyst Hideyuki Maekawa said of DRAM chips.

In New York Friday, the Dow Jones industrial average lost 62.29, or 0.5 percent, to 12,657.20.

The Standard and Poor’s 500 index fell 9.42 points, or 0.7 percent, to 1,343.80. The tech-heavy Nasdaq composite dropped 12.85, or 0.4 percent, to 2,859.81.

Oil prices fell to below $96 a barrel Monday in Asia amid signs of a struggling U.S. economy.

Benchmark oil for August delivery was down $1.29 to $94.91 a barrel in electronic trading on the New York Mercantile Exchange. Crude gave up $2.47 to settle at $96.20 on Friday.

In London, Brent crude was steady at $118.33 per barrel on the ICE Futures exchange.

The euro was trading at $1.4124. The dollar was changing hands for 80.75 yen.

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July 9, 2011

Murdoch backs UK news operation CEO amid scandal

Filed under: business, technology — Tags: , , , — ManInBlack @ 11:48 pm

Rupert Murdoch has expressed his full support for the head of his U.K. newspaper division amid continuing fallout from an expanding phone-hacking scandal at the News of the World.

The tabloid, forced to close amid fresh revelations of impropriety, is printing its final issue Saturday.

Many journalists and media watchers have expressed astonishment that Rebekah Brooks, who was editor of Murdoch-owned News of the World when some of the hacking allegedly occurred, was keeping her job even as the paper’s journalists are put out of work fast payday loan no faxing.

When asked by reporters Saturday in Sun Valley, Idaho _ where he is attending a media conference _ if Brooks continues to have his support, Murdoch replied simply: “Total.”

“We already apologized,” he said. “We’ve been let down by people … the paper let down its readers.”

Murdoch is expected in London Sunday on a scheduled visit.

Source

July 6, 2011

British PM backs Murdoch’s NewsCorp deal for BSKYB

Filed under: business, mortgage — Tags: , , , — ManInBlack @ 6:32 pm

British Prime Minister David Cameron said the phone hacking scandal will not affect Rupert Murdoch’s politically sensitive multibillion pound (dollar) takeover of broadcaster BSkyB in Britain.

The government has already given qualified approval to Murdoch’s NewsCorp. to take full control of the satellite broadcaster. Media regulator OFCOM now has to sign off the deal.

Opposition leader Ed Miliband had asked Cameron to reconsider after allegations that Murdoch-owned tabloid News of the World had hacked into the mobile phones of a missing schoolgirl and the families of London terror victims, in addition to celebrities and royals.

Cameron said Wednesday that the government had followed the correct procedures over the BSkyB deal.

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

LONDON (AP) _ Britain’s Prime Minister David Cameron has called for a further inquiry into the phone hacking scandal engulfing the News of the World tabloid.

Cameron says an independent inquiry needs to look at why an original police investigation did not get to bottom of what happened when the scandal first emerged several years ago.

The demand came as British police revealed they would investigate allegations that officers received payments from the tabloid newspaper, thanks to new documents given police by the tabloid’s parent company, News International.

Lawmakers are staging an emergency House of Commons debate Wednesday to vent their outrage over a widening tabloid phone hacking scandal that allegedly targeted a missing schoolgirl and the families of London terror victims in addition to celebrities and royals.

News International is the British linchpin of Rupert Murdoch’s global media empire.

Source

June 30, 2011

Maple Leaf Foods names Purdy Crawford as non-executive chairman

Filed under: business, loans — Tags: , , , — ManInBlack @ 6:24 am

TORONTO

June 25, 2011

Judge sends unapologetic Black back to prison

Filed under: business, economics — Tags: , , , — ManInBlack @ 5:24 am

Conrad Black, once a media mogul whose newspaper empire spanned several continents, is headed back to prison after a federal judge ruled Friday that he had not served enough time for defrauding investors.

Judge Amy St. Eve sentenced Black to 3 1/2 years in prison after berating and then praising him. But prosecutors say he will be given credit for more than two years he already had served, meaning the 66-year-old will go back for a little more than a year.

As St. Eve announced the sentence with Black standing expressionless before her, his 70-year-old wife, Barbara Amiel, fainted on a wooden courtroom bench. As she sprawled across the laps of other spectators, medics rushed in to attend to her.

In a 20-minute statement before he was sentenced, Black spoke confidently and philosophically, citing poetry and maintaining he had been falsely accused. At no point did he apologize.

His final words to St. Eve were to ask for a lesser sentence.

“I never ask for mercy,” he said, standing with his hands on the podium, “but I do ask for avoidance of injustice.”

St. Eve had originally sentenced Black to 6 1/2 years in prison after he was convicted in 2007 of defrauding investors in Hollinger International Inc.

Black, whose empire once included the Chicago Sun-Times, The Daily Telegraph of London, The Jerusalem Post and small papers across the U.S. and Canada, served part of the sentence before being freed on bail to pursue what would be partially successful appeals.

St. Eve said Friday that Black had “violated the trust” of his shareholders.

“As you stand before me today, I still scratch my head as to why you engaged in this conduct,” she said.

The judge said she rejected the option of sending Black back to prison for more than four years in part because of dozens of letters she had received from inmates saying Black had changed their lives through lectures he gave on writing, history, economics and other subjects.

Prosecutor Julie Porter said the government, which had sought a longer sentence, was pleased with the result.

It “sends a very strong message to corporate executives,” she said.

After the hearing, the Blacks walked out of the federal courthouse together, his arm around her. They got into a chauffeured vehicle and drove away.

Eddie Greenspan, Black’s Canadian lawyer, said it’s too early to say if defense attorneys will appeal the new sentence, though he added they will consider all their options.

Black will have to report to prison in about six weeks, though a fixed date hadn’t been set, U.S. Attorney’s Office spokesman Randall Samborn said instant payday loan.

The former mogul had been in the Coleman Federal Correctional Complex in central Florida, and he could return there. But a final decision on where he serves the additional year will be made later.

George Tombs, author of “Robber Baron: Lord Black of Crossharbour,” said another prison stint will be rough for Black, who received his title when he became a member of the British House of Lords.

“He was born with a silver spoon in his mouth,” Tombs said. “He’s a lawmaker in Great Britain for goodness sakes.

Tombs said Black lives in a bubble.

“He doesn’t realize that he did anything wrong,” he said. “He does not acknowledge anything.”

Black’s big chance to squash his convictions arose in June 2010, when the U.S. Supreme Court sharply curtailed the disputed “honest services” laws that underpinned part of his case.

The 7th U.S. Circuit Court of Appeals in Chicago tossed out two of Black’s fraud convictions last year, citing that landmark ruling.

But it said one conviction for fraud and one for obstruction of justice were not affected by the Supreme Court’s ruling. The fraud conviction, the judges concluded, involved Black and others taking $600,000 and had nothing to do with honest services: It was, they asserted, straightforward theft.

The appeals court said St. Eve would have to sentence Black again for those two standing counts.

Despite the nullified counts, prosecutors had asked St. Eve to hand Black the same sentence she originally meted out.

“He fails to acknowledge his central role in destroying Hollinger International through greed and lies, instead blaming the government and others for what he describes as an unjust persecution,” prosecutors said in a recent filing.

At Friday’s hearing, Black said obliquely that, “It is not the case that I have no remorse.” But he didn’t say those feelings had anything to do with any wrongdoing on his part, rather that he had been too trusting of others.

Black’s lawyers argued that he was a model prisoner who gladly offered advice about business and other matters to prisoners who constantly approached him.

Prosecutors say the defense painted too rosy a picture.

One prison employee, Tammy Padgett, claimed in an affidavit filed by prosecutors that Black had arranged for inmates _ “acting like servants” _ to iron his clothes, mop his floor and perform other chores. Another employee told her Black once insisted she address him as “Lord Black,” Padgett added.

Source

June 6, 2011

Diamond withdraws nomination for Fed board

Filed under: business, economics — Tags: , , , — ManInBlack @ 7:33 pm

The White House says it’s “deeply disappointed” that Nobel Prize-winning economist Peter Diamond is withdrawing his nomination to the Federal Reserve Board.

Press secretary Jay Carney said Monday that Diamond “fell victim to partisan obstructionism.”

Senate Republicans attacked the 71-year-old MIT professor as a proponent of bailouts and big government. And Diamond wrote in a New York Times op-ed piece that it’s clear the GOP wouldn’t let him serve.

But Carney says President Barack Obama believes Diamond would have brought knowledge and expertise to the Fed board.

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

Nobel Prize-winning economist Peter Diamond is withdrawing his nomination for the Federal Reserve board.

In an op-ed piece first published on The New York Times website on Sunday and in its print edition on Monday, Diamond seemed frustrated by the confirmation process, detailing how President Barack Obama had nominated and re-nominated him to fill a vacancy on the seven-member board.

The Fed often operates with vacancies on its board. The board hasn’t had every seat filled since 2006.

Diamond’s initial nomination fizzled when the Senate adjourned in December without acting on it. When Obama resubmitted the nomination in January to the newly convened Senate, the Republicans held six additional seats, which was expected to make the confirmation process more difficult.

Senate Republicans blocked a floor vote on Diamond’s confirmation and have questioned his practical experience and research. Diamond is considered an authority on Social Security, pensions and taxation. He shared the Nobel Prize in economics that was awarded in October, with Diamond saying that his portion of the prize was for his work on unemployment and the labor market.

In the op-ed piece, Diamond took aim at Washington’s “partisan polarization” and said that there was “a failure to recognize that the analysis of unemployment is crucial to conducting monetary policy.”

“It is time for me to withdraw, as I plan to inform the White House,” Diamond wrote.

There was no immediate comment from the White House on Diamond’s plans.

Diamond said the leading opponent to his appointment was the ranking Republican on the Senate Banking Committee, Richard C. Shelby of Alabama. Diamond said Shelby questioned how his academic work on pensions and the labor market fit with conducting monetary policy.

“But understanding the labor market - and the process by which workers and jobs come together and separate - is critical to devising an effective monetary policy,” he wrote.

Diamond said he would continue as a professor at the Massachusetts Institute of Technology and would take advantage of opportunities presented to a Nobel laureate.

“I had hoped to bring some of my own expertise and experience to the Fed. Now I hope someone else can,” he said.

Source

May 10, 2011

Conservative economic strategy faces tests

Filed under: business, uk — Tags: , , , — ManInBlack @ 5:55 am

OTTAWA

May 6, 2011

Obama plans to scrap government buildings

Filed under: business, marketing — Tags: , , , — ManInBlack @ 11:27 pm

The federal government, the country’s biggest property owner, is looking to unload a hefty chunk of its real estate portfolio.

The Obama administration has identified 14,000 buildings that agencies can afford to lose, and put forward a new plan on Wednesday that will help move the process along.

At the center of the effort is legislation that would create a Civilian Property Realignment Board, an independent commission based on the similar panel that was used to close military bases.

The new group will recommend buildings to close or demolish.

And if everything works out, taxpayers will save an estimated $15 billion over the next three years.

Currently, agencies must meet 20 requirements before unloading property, according to Office of Management and Budget Deputy Director Jeffrey Zients.

One condition is that buildings must be offered up as housing for the homeless before being sold.

That red tape, coupled with resistance from local political interests, and the added stress on short-term budgets associated with real estate transactions, has created an environment where waste is endemic us fast cash.

"For too long, the American people’s hard-earned tax dollars have gone to waste," Zients said. "It’s simply unacceptable."

On Wednesday, the administration released a map with a partial list of properties that are on the chopping block.

Ranging from office buildings to land parcels, not every property will be sold. Many of the buildings have little or no commercial value and will be destroyed. That will save the government money on operating costs.

Why the move to reform federal property management? There is a lot of money in it.

Agencies are already on track to save $3 billion by the end of next year, and the administration thinks $15 billion can be saved if Congress approves the legislation.

Zients said 60% of the savings would be used to reduce the federal deficit, while the other 40% would be used to finance additional property sales. 

Source

May 3, 2011

U.K. Manufacturing Drops to Seven-Month Low as Construction Orders Decline - Bloomberg

Filed under: business, mortgage — Tags: , , , — ManInBlack @ 6:06 pm

A U.K. manufacturing index fell to a seven-month low in April amid declining consumer confidence and falling construction orders.

The gauge based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply fell to 54.6 from a revised 56.7 in March, according to a report published in London today. The median forecast of 19 economists in a Bloomberg News survey was for a decline to 57 from a previous March reading of 57.1. A measure above 50 indicates expansion.

The recovery in manufacturing may be losing momentum as the biggest fiscal squeeze since World War II takes hold, countering the benefit to exporters from a weaker pound. Policy makers will probably keep the key interest rate at a record low of 0.5 percent this week to support the recovery, according to 42 of 43 economists in a Bloomberg News survey.

“Export orders continue to grow at a very healthy rate but domestic demand is suffering as a result of falling consumer confidence and spending,” David Noble, chief executive officer at CIPS, said in an e-mailed statement. “The outlook for U.K. manufacturing is definitely bleaker than it was at the start of the year.”

The pound fell 0.9 percent and traded at $1.65 at 9:59 a.m. in London. The yield on the two-year note fell 13 basis points to 1.04 percent.

Domestic Deterioration

The rate of growth in a measure of total order books slowed to an eight-month low and a deterioration in new business reflected conditions in domestic markets, according to the report. Exports rose on higher demand from the U.S., Europe, China, Russia, the Middle East and Turkey.

Wolfson Microelectronics Plc (WLF), an Edinburgh-based maker of semiconductors for consumer electronic products, said April 27 first-quarter revenue rose 44 percent on mobile-phone sales payday loan lenders. Chief Executive Officer Mike Hickey forecast “strong” revenue growth in 2011.

The U.K. economy expanded 0.5 percent in the first quarter, erasing the contraction in the final three months of 2010. Manufacturing expanded 1.1 percent, while construction shrank 4.7 percent, the most in two years. The pound’s 24 percent drop on a trade-weighted basis since the start of 2007 made British goods cheaper to buy abroad.

Officials Split

Bank of England officials are split on whether growth is strong enough to withstand government cuts. U.K. consumer confidence fell to minus 31 in April, the lowest since the depth of the recession in February 2009, GfK NOP Ltd. said April 28.

Policy maker Andrew Sentance maintained a call last month to raise the key rate a half point to 1 percent, while Spencer Dale and Martin Weale kept up a push for a quarter-point increase to tame inflation at 4 percent, double the bank’s target. The remaining six members of the Monetary Policy Committee, including Governor Mervyn King, voted for no change.

The bank announces its next policy decision on May 5 at noon in London. All 29 economists in a Bloomberg News survey forecast no change to the 200 billion-pound ($330 billion) bond- purchase plan.

“Given they have a mandate of targeting 2 percent inflation in two years’ time, the worrying outlook for growth favors patience from BOE policy makers,” James Knightley, an economist at ING Financial Markets in London, said in an e- mailed note to investors. “Today’s report further diminishes the likelihood of a rate hike this week, with November looking the most likely point for policy tightening at present.”

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