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September 1, 2011

Netflix price rise gives Redbox an opening

Filed under: technology, uk — Tags: , , , — ManInBlack @ 12:44 pm

Netflix is giving Redbox a golden opportunity to gain some ground.

Beginning today, Netflix, the largest U.S. video subscription service, will hit its nearly 25 million U.S subscribers with rate increases of as much as 60 percent. The sticker shock is expected to make Redbox, which rents DVDs for $1 per day through kiosks, even more enticing to movie lovers.

Netflix Inc.’s higher prices will drive business to Blockbuster and other home entertainment rivals, too, but none are better positioned to take advantage of the disruption than Redbox, according to Wedbush Securities analyst Michael Pachter.

That’s because millions of people are expected to keep paying for a Netflix service that streams video over high-speed Internet connections but will look for other places to rent DVDs.

Most people won’t have to go far to find a Redbox kiosk; two-thirds of the U.S. population now lives within a five-minute drive of one of the company’s red vending machines.

Pachter believes 2 million to 3 million customers will close their Netflix accounts in protest.

A Netflix forecast issued in July acknowledged its higher prices will result in a high cancellation rate. During the last year, Netflix averaged 2.8 million cancellations per quarter. That compared with an average of 5.2 million new subscribers every three months during the same period.

If the projections pan out, a large audience of DVD renters will be up for grabs in the next few months.

Source

August 29, 2011

Asian stocks up after Fed chief speech

Filed under: online, technology — Tags: , , , — ManInBlack @ 7:12 am

Asian stock markets rose in early trading Monday, after Federal Reserve chief Ben Bernanke’s prediction of long-term economic growth for the U.S. helped fuel a Wall Street rebound.

Japan’s Nikkei 225 index rose 0.5 percent to 8,845.19. Australia’s S&P ASX 200 jumped 1.7 percent to 4,270.60 and New Zealand’s NZX 50 rose 0.6 percent to 3,314.28.

Gold-related shares rose after prices of the precious metal rebounded Friday after a volatile week. Newcrest Mining Ltd., Australia’s largest gold miner, rose 1 percent.

On Friday in New York, gold for December delivery rose $34.10 to finish at $1,797.30 an ounce after nearly hitting $1,900 an ounce as Monday’s trading ended.

The euro was slightly down at $1.4482 from $1.4484 in late trading in New York. The dollar rose to 76.74 yen from 76.66 yen.

Market optimism was fueled Friday by a highly anticipated speech by Fed chief Bernanke at a conference in Jackson Hole, Wyoming. While he announced no new economic stimulus measures, as some investors had hoped, he did leave open the possibility of more action if another recession looks likely _ and he also emphasized the strengths of the U.S. economy.

The Dow Jones industrial average rose 1.2 percent to close at 11,284.54. The Standard & Poor’s 500 index rose 1.5 percent to 1,176.80. The technology-heavy Nasdaq composite index rose 2.5 percent to 2,479.85.

The Fed has said it plans to keep short-term interest rates low until mid-2013. Low rates on investments like bonds make higher-risk bets such as stocks more attractive.

Source

August 24, 2011

More are missing mortgage payments

Filed under: loans, technology — Tags: , , , — ManInBlack @ 10:08 am

The percentage of homeowners who have missed at least one mortgage payment has risen for the second straight quarter, the Mortgage Bankers Association says.

“It is clear that the downward trend we saw through most of 2010 has stopped,” the Mortgage Bankers Association’s chief economist, Jay Brinkmann, said.

The second-quarter delinquency rate for loans on one- to four-unit residential properties increased to 8.44 percent of all U.S. mortgages as of June 30, up from 8.32 percent on March 31 and 8.25 percent on Dec 31. The rate in Missouri was 8.18 percent. In Illinois it was 8.4 percent.

In a normal market, the percentage of delinquent borrowers is about 1.1 percent.

Delinquent mortgages have plummeted from a record high of more than 10 percent of residential mortgages a year ago. But the decline is due partly to delays in foreclosure filings that are backlogged. The end of a state and federal investigation into faulty foreclosure paperwork is likely to lead to increased foreclosures. Analysts say the increase is especially worrisome because it’s mainly because of high unemployment. And once delayed foreclosures are restarted, the economy could suffer a hit.

“The current processing delays mean this will not happen quickly, underlining our view that both the housing market and the economy will remain weak for a few years,” said Paul Dales, senior U.S. economist at Capital Economics.

Tim Logan of the Post-Dispatch contributed to this report.

Source

August 14, 2011

Electric choice finally ramping up in Illinois

Filed under: mortgage, technology — Tags: , , , — ManInBlack @ 4:32 pm

Nearly a decade after Illinois’ residential electric market was opened to competition, consumers are finally getting the chance to shop for electricity the same way they compare phone or Internet services payday loan online.

In the Chicago area, tens of thousands of consumers have already defected from the state’s largest electric utility, ComEd

August 13, 2011

Dow finishes wild week on an up note

Filed under: technology, uk — Tags: , , , — ManInBlack @ 1:48 am

The wildest week in Wall Street’s history is ending on an up note.

A rebound in retail sales in July helped the stock market push higher Friday. The week has been marked by seesaw trading. The Dow Jones industrial average rose or fell by more than 400 points each of the first four days of the week as investors reacted to concerns about the global economy and Europe’s debt problems.

The Dow is finishing with a gain of 125 points, or 1.1 percent, to 11,269. The S&P 500 is up 6, or 0.5 percent, to 1,279. The Nasdaq is up 15, or 0.6 percent, to 2,508.

Two shares rose for every one that fell on the New York Stock Exchange. Volume was an above average 4.9 billion shares.

Source

August 1, 2011

Humana beats 2nd-quarter Wall Street estimates

Filed under: investors, technology — Tags: , , , — ManInBlack @ 5:04 pm

Humana says its second-quarter profit rose by 35 percent as the health insurer reported enrollment gains in its Medicare plans.

The Louisville-based company on Monday raised its earnings forecast for the year to a range of $7.50 to $7.60 per share, up from $6.70 to $6.90 per share.

Humana also reported growth in its health and well-being services segment from its acquisition of health care company Concentra Inc.

For the three months ended June 30, Humana earned $460.3 million, or $2 cash till payday advance.71 per share. That compares to nearly $340.1 million, or $2 per share, last year. Revenue in the just-ended quarter totaled $9.28 billion.

Adjusted income was $2.50 per share.

The performance beat Wall Street forecasts. Analysts polled by FactSet predicted earnings per share of $2.05 on $9.28 billion in revenue.

Source

July 22, 2011

Reynolds American 2Q net income falls on charges

Filed under: mortgage, technology — Tags: , , , — ManInBlack @ 11:20 pm

Cigarette maker Reynolds American says its second-quarter profit fell more than 10 percent on charges related to a legal case and costs related to plant closings.

Excluding those charges, the nation’s second-biggest tobacco company said its profit rose 2 percent as higher prices and smokeless tobacco gains offset cigarette volume declines.

The maker of Camel, Pall Mall and Natural American Spirit brand cigarettes says its net income fell to $304 million, or 52 cents per share, for the period ended June 30. That’s down from $341 million, or 58 cents per share, a year ago.

Adjusted earnings were 67 cents per share. Analysts expected 71 cents per share.

Revenue excluding excise taxes rose less than 1 percent to $2.27 billion, beating analyst estimates for the Winston-Salem, N.C., company.

Its shares slipped 38 cents to $38.13 in premarket trading.

Source

July 21, 2011

Blistering heat wave stressing nation’s power grid

Filed under: investors, technology — Tags: , , , — ManInBlack @ 8:08 am

A lengthy, blistering heat wave that is blanketing the eastern half of the United States is putting significant stress on the nation’s power grid as homeowners and businesses crank up their air conditioners.

Utilities say they’re ready for high power demand and widespread electricity shortages or outages are unlikely. Lines and equipment are not fully taxed and there is more generating and transmission capacity available than usual because of the weak economy. Also, not many major storms are in the forecast, meaning fewer downed power lines.

The heat wave began a week ago in the Plains states and is expected to spread east through the weekend. It is lasting longer than most heat waves and is spread over an unusually wide area, according to Travis Hartman, the Energy Weather Manager at MDA Earthstat, which proves forecasts for utilities and other weather-dependent businesses.

Hartman predicts 90- to 100-degree weather from Chicago to Boston from Wednesday through the weekend. The Midwest is expected to see peak heat on Thursday while thermometers in eastern states will top out on Friday and Saturday. Philadelphia may break a 1957 record of 100 degrees on Friday, while Washington, D.C., is expected to reach 103, tying a record from 1926.

Texas and the southern Plains states will extend a long streak of hot weather. On Wednesday Oklahoma was expected to suffer its 30th day of triple-digit temperatures this year.

Nationwide, Thursday and Friday will be hotter than any time since 1950, says Hartman. “It’s going to mean elevated power demand for an extended period of time for a lot of people,” he says.

To meet demand, utilities are firing up special power plants used only a few days a year, delaying scheduled maintenance in order to keep all equipment on line and testing heat-sensitive switches and other equipment with high-tech devices like thermographers that can gauge temperatures to one-tenth of a degree.

“These are the days everyone wants to have their ACs on, their computers going while they watch TV,” says Jon Jipping, Chief Operating Officer of ITC Holdings Corp., a transmission grid operator that owns grids in Iowa, Michigan and four other Midwest states. “These are the days we get ready for.”

Peak demand for most utilities usually happens on a late weekday afternoon in mid-summer. That’s when businesses are still open but people return home, turn on their air conditioners, lights and televisions and they start cooking dinner.

Problems can arise when the grid comes under maximum strain. Equipment can’t cool off, and it can’t handle as much power as usual. Lines, transformers and switches are working at full capacity and can be overwhelmed by power surges that can result from a blown piece of equipment or downed power line payday lenders.

Even drops in power demand can be perilous. When a thunderstorm drenches a big, hot city, there is a quick drop in power demand because suddenly millions of air conditioners don’t have to work so hard. When power flow changes rapidly, either because of a surge or a sudden dropoff, devices meant to prevent equipment failures could trip, cutting power to customers.

Peak summer demand can be nearly double the demand of a typical day in a mild month like April or October. The PJM Interconnection, which operates the transmission grid in parts of 13 mid-Atlantic states, hit a record peak demand of 146,082 megawatts Tuesday. That compares to a typical April peak load of 78,000 megawatts.

Utilities and grid operators have to plan for the summer peak year-round. For them, a summer heat wave is like Black Friday for a big box retailer. Customers are clamoring for service, and it is time to sell the most power at the highest rates of the year.

Power generators have fleets of small power plants that can be turned on and off relatively easily to meet demand. They are inefficient and expensive, and therefore push the wholesale price of power sharply higher. Peak summer wholesale prices can be triple the price of power during a mild-weather month.

By the end of May each year, utility emergency procedures must be finalized, equipment must be repaired and power plants prepared. Jim Meister, vice president of operations support for Exelon Nuclear, which owns 10 nuclear plants, says each plant undergoes an average of 100 maintenance activities a year to get ready for summer.

When a heat wave is predicted, alert levels are raised that slow and then stop all non-essential maintenance on the grid. Fuel is delivered to plants that may need to fire up and workers are put at the ready.

A long heat wave like this week’s can put even more stress than normal on the system. When heat waves are short, some people will put up with a sweaty day or two. But when a heat wave lasts, many people make their homes colder than normal and run air conditioners constantly.

Also, air conditioners have to work harder because the persistent heat deeply warms walls and other infrastructure, making it harder to cool rooms.

“As you get into the heat wave, the load builds even if the temperature stays the same,” says Mike Bryson, the Executive Director for systems operations at PJM.

Jonathan Fahey can be reached at www.facebook.com/Fahey.Jonathan

Source

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 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

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