Financial life in a big town

December 27, 2011

Consumer confidence index surges in December

Filed under: Banks, money — Tags: , , , — Silver @ 4:16 pm

Americans are gaining faith that the economy is on the upswing. The monthly Consumer Confidence Index surged to the highest level since April and is approaching a post-recession peak.

The New York-based Conference Board said Tuesday that its Consumer Confidence Index rose almost 10 points to 64.5, up from a revised 55.2 in November. Analysts had expected 59. The level is close to the post-recession peak of 72, which the index reached in February.

The surge in December builds on another big increase in November, when the index rose almost 15 points from the month before.

One component of the index that measures how shoppers feel now about the economy, rose to 46.7, up from 38.3 in November. The other barometer, which measures how shoppers feel about the next six months, rose to 76.4, up from 66.4.

Improving confidence is in line with retail reports of a decent holiday shopping season.

Economists watch the confidence numbers closely because consumer spending _ including items like health care _ accounts for about 70 percent of U.S. economic activity. Still, the December confidence reading is below the 90 level that indicates an economy on solid footing.

Analysts are cautious about whether the gains are the start of something more sustainable.

“While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement.

Even with the increase in confidence, shoppers are still nervous about their jobs and the overall economy according to the preliminary results of the survey, which ran Dec pay day loans. 1-14.

Those claiming jobs are “plentiful” increased to 6.7 percent from 5.6 percent, while those claiming jobs are “hard to get” decreased to 41.8 percent from 43.0 percent. Those anticipating more jobs in the months ahead increased to 13.3 percent from 12.4 percent while those anticipating fewer jobs declined to 20.2 percent from 23.8 percent.

That’s because while the job market is steadily improving, unemployment _ at 8.6 percent _ is still high. And housing remains wobbly. The Standard & Poor’s/Case-Shiller index of home prices, also released Tuesday, dropped in October in 19 of the 20 cities it tracks. It was a second straight declining month, further evidence of a bumpy housing recovery.

Heading into the holiday season, store executives were nervous about consumers’ willingness to spend. Merchants offered big discounts on holiday merchandise and lured shoppers with expanded hours.

After a record spending spree over Thanksgiving weekend, the season’s semi-official start, shoppers retreated for a few weeks. Then stores saw a surge of shopping the week before Christmas as consumers took advantage of better discounts.

The National Retail Federation now expects a 3.8 percent increase in holiday sales, up from its original forecast of 2.8 percent made in September when the economy’s recovery looked more uncertain. More data will be released this week that will offer more clues about stores’ last-minutes sales surge before Christmas.

Source

December 26, 2011

King Says Crisis Threatens Europe

Filed under: online, stocks — Tags: , , , — Silver @ 2:42 am

+%3Cp%3EMervyn+King%2C+vice+chairman+of+the+European+Systemic+Risk+Board%2C+said+Europe%92s+sovereign+debt+crisis+is+threatening+to+hurt+the+real+economy+and+the+outlook+for+financial+stability+has+worsened.+%3C%2Fp%3E+%3Cp%3EGrowth+prospects+%93have+deteriorated%94+since+September%2C+King%2C+who+is+also+governor+of+the+Bank+of+England%2C+said+at+a+briefing+hosted+by+the+European+Central+Bank+in+Frankfurt+yesterday.+%93Investors+lack+confidence+to+continue+to+provide+normal+levels+of+funding.+Dependence+on+central+banks+has+risen.%94+%3C%2Fp%3E+%3Cp%3EThe+ECB+loaned+banks+a+record+489+billion+euros+%28%24636+billion%29+for+three+years+on+Dec.+21+to+avert+a+credit+crunch+from+the+sovereign+debt+crisis.+The+central+bank+said+earlier+this+week+that+the+turmoil+has+taken+on+systemic+proportions+not+seen+since+the+2008+collapse+of+Lehman+Brothers+Holdings+Inc.+%3C%2Fp%3E+%3Cp%3EKing+said+the+outlook+for+financial+stability+has+%93worsened%94+since+the+last+ESRB+meeting+in+September%2C+and+while+intervention+by+the+ECB+is+expected+to+%93assuage+funding+problems+in+the+near+term%2C+in+the+longer+term+private+funding+markets+must+be+revitalized.%94+%3C%2Fp%3E+%3Cp%3EBank+shares+have+suffered+this+year+as+borrowing+costs+surged+in+the+euro+region.+The+Stoxx+600+Banks+Index+has+fallen+28+percent+since+the+end+of+June%2C+compared+with+a+12+percent+decline+by+the+Stoxx+Europe+600.+%3C%2Fp%3E+Capital+Plea++%3Cp%3EKing+also+appealed+to+banks+not+to+%93reduce+lending+to+the+real+economy%94+as+they+increase+their+capital+levels+to+meet+new+standards+set+by+regulators.+%3C%2Fp%3E+%3Cp%3E%93We+are+very+conscious+there+is+extreme+risk+aversion+in+private+financial+markets%2C%94+he+said+%3Ca+href%3D%22http%3A%2F%2Fus-fast-cash-now.com%22%3Ecash+advance%3C%2Fa%3E%3C%21–+.+–%3E.+%93We+want+a+more+robust+banking+system+so+that+whatever+risks+crystallize%2C+whatever+their+source%2C+the+banking+system+is+in+a+better+position+than+2008.%94+%3C%2Fp%3E+%3Cp%3EThere+was+%93no+discussion%94+at+the+ESRB+meeting+of+any+country+leaving+the+euro+area%2C+King+said.+Still%2C+%93all+financial+institutions+are+advised+to+prepare+for+a+wide+range+of+contingencies%2C%94+he+said.+%3C%2Fp%3E+%3Cp%3EAndrea+Enria%2C+the+second+ESRB+vice+chair+who+is+also+the+chairman+of+the+European+Banking+Authority%2C+said+he+is+%93disappointed%94+by+European+leaders+dithering+over+putting+rescue+measures+in+place%2C+effectively+delaying+Europe%92s+bank+recapitalization.+%3C%2Fp%3E+%3Cp%3E%93We+have+always+been+quite+adamant+in+all+occasions%2C+also+in+the+debate+running+up+to+the+decision%2C+that+this+should+have+been+a+comprehensive+package%2C%94+Enria+said.+This+includes+%93recapitalization%2C+some+measures+–+funding+guarantees+–+addressing+the+funding+problems+and+strengthening+of+the+European+Financial+Stability+Facility+and+of+the+tools+to+deal+with+the+sovereign+crisis.%94+%3C%2Fp%3E+%3Cp%3EThe+ESRB%2C+which+aims+to+warn+of+brewing+risks+in+the+financial+system%2C+was+set+up+in+January+as+part+of+a+new+European+architecture+designed+to+ward+off+another+financial+crisis+such+as+that+which+followed+the+Lehman+collapse.+Its+65-+member+board+is+headed+by+ECB+President+Mario+Draghi.+%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fwww.bloomberg.com%2Fnews%2F2011-12-23%2Fking-says-crisis-threatens-europe-s-economy-as-stability-outlook-worsens.html%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

December 19, 2011

Egypt’s military, activists vie for public support

Filed under: legal, marketing — Tags: , , , — Silver @ 2:16 am

Egypt’s ruling military and the revolutionaries who demand they immediately step down battled for a third day in the streets on Sunday _ and competed fiercely for the support of a broader public that has grown tired of turmoil since the fall of Hosni Mubarak 10 months ago.

The generals appear to be winning the fight for the public, despite a heavy-handed crackdown on protesters around Cairo’s Tahrir Square using a roughness that rivals even that of Mubarak’s widely hated police force.

The protesters have tried to drum up Egyptians’ anger at the military by spreading videos and photos of military police savagely beating young men and women to the ground with sticks and truncheons _ and the resonant scene of a woman in a conservative headscarf being stripped half naked by soldiers who stomp on her chest.

But so far their efforts to win public sympathy don’t seem to be gaining traction in the face of the military’s campaign to depict the crowds of hundreds in the streets as hooligans and vandals, not the idealistic activists who succeeded in bringing down Mubarak. At least 10 protesters have been killed and 441 others wounded in the three days of violence, according to the Health Ministry.

“The military has failed in everything except for its stunning success in making people hate the revolution, its history and its revolutionaries,” prominent columnist Ibrahim Eissa wrote in an editorial in the independent pro-revolution newspaper, Al-Tahrir.

Led by a general who served for 20 years as Mubarak’s defense minister, the military has been methodically seeking to discredit the revolutionaries, accusing them of illegally receiving foreign funds and being part of a plot hatched abroad to destabilize Egypt. The generals have in the meantime sought to portray themselves as key players in the 18-day revolt that toppled Mubarak’s 29-year rule and hence have earned the right to rule.

In a statement posted on its Facebook page, the ruling military council on Sunday called the clashes part of a “conspiracy” against Egypt. It said its forces had the right to defend the “property of the great people of Egypt.”

Seeking to depict the protesters as hooligans _ and apparently to counter the widely published images of protesters being beaten or dragged on the ground _ it also posted on the page footage of young men throwing rocks at a basement window of the parliament building and of at least one man trying to set the place ablaze.

The generals’ campaign plays on Egyptians’ frustration with continued instability and economic woes since Mubarak’s fall. Many are now more focused on the multistage parliamentary elections that began last month and continue through March. Islamist parties have so far overwhelmingly dominated the vote, with liberals and secular parties far behind.

That trend continued with the announcement Sunday of results from the second of three rounds of voting, held last week. Out of around 160 seats up for grabs in the second round, the Muslim Brotherhood won 29 and another more conservative Islamic party, Al-Nour, won 23. Two liberal groups _ the Wafd Party and the Egyptian Bloc _ won nine and seven seats, respectively. The rest will be determined in a run-off vote to be held later this week.

The Islamists have been staying clear of the recent violence, fearing that they could jeopardize their electoral gains by taking part in the protests. Their stance has prompted many activists to accuse them of political opportunism.

The military has meanwhile been using the state media and sympathetic private TV stations to market an image of itself as the protector of the nation, filling its statements with patriotic rhetoric and grave warnings if turmoil persists.

The revolutionaries who led the protests against Mubarak accuse the military of mismanaging the transition since then, of seeking to hold on to power and of using the same autocratic ways as the ousted leader. They demand that the military hand over power to civilians immediately _ and some have begun demanding that presidential elections scheduled for the middle of next year be moved up to January to pick a civilian head of state to take the generals’ place.

“The military is looking down at us and handling everything from a security perspective,” said Shady el-Ghazali Harb, a prominent activist and an icon of the anti-Mubarak uprising. “It is trying to make the point that its way of handling things is what will be applied and nothing else.”

The latest deadly clashes began Friday, when one of several hundred peaceful protesters staging a sit-in outside the Cabinet offices near parliament was detained and beaten by troops. The protesters began their sit-in three weeks ago to demand that the military immediately step down.

In Sunday’s clashes, protesters and troops battled on two main streets off Tahrir Square, trading volleys of stones and firebombs around barriers that the military set up to block the two central avenues. The army also used water canons.

One of the streets is site of a research center set up during the three-year occupation of Egypt by France in the late 18th century. The building was almost completely gutted by a fire which broke out during the height of the clashes on Saturday, when troops on its roof and on other nearby rooftops hurled rocks down on protesters below.

Protesters, who blame the fire on the troops, have been trying to salvage valuable books and documents from the center, whose two-story building is now in danger of collapsing after its roof caved in.

Activists have flooded social network sites and sympathetic media with photos and video from the troops’ brutal assaults the past two days.

The photo of the woman protester half-stripped by soldiers ran on the front page of the Al-Tahrir newspaper, emblazoned with a headline in red, “Liars,” referring to repeated denials by the military council and military-appointed Prime Minister Kamal el-Ganzouri that no force or live ammunition were used against the protesters.

The presenter of a political talk show on a private TV station sarcastically praised the soldiers for their bravery in wrestling the woman down.

“She is more of a man than 300,000 men put together, including me,” said Youssef al-Hussein on ONTV.

Other widely circulating footage show an army officer firing a pistol at protesters _ though it is not clear whether he was using live ammunition _ and soldiers dragging women by the hair and ferociously beating, kicking and stomping on protesters cowering on the ground.

Still, many Egyptians complain the revolutionaries have gone too far and that, almost a year after ousting Mubarak, they should now go home and let the military run the country or wait for the next parliament to decide the country’s future.

Such sentiments are not surprising given that the military has been the most powerful institution in Egypt since army officers seized power in a 1952 coup that toppled the monarchy.

Nearly 60 years later, the military continues to have the last word on policies, a position of power that has left many activists not entirely certain that the generals who succeeded Mubarak would voluntarily return to their barracks.

“The military council uses every opportunity to show itself as the land’s strongest institution,” said Mohammed Abbas, an activist who defected from the Muslim Brotherhood to side with youth groups more active in protests. “We are making it easier for the generals by our divisions and isolation.”

Source

December 14, 2011

Spartech narrows loss in fourth quarter

Filed under: Business, news — Tags: , , , — Silver @ 4:08 am

Plastics maker Spartech Corp. cut its loss for the fourth quarter in half.

Clayton-based Spartech reported a loss of $27.7 million in the fourth quarter that ended Oct. 29, or 90 cents a share, compared to a loss of $55.7 million, or $1.81 a share a year ago.

Spartech produces plastic sheet, compounds and packaging products. Sales of higher margin products for transportation and construction customers helped Spartech’s sales increase 13 percent in the quarter, to $293.2 million, compared with $259.6 million a year ago.

For its 2011 fiscal year, Spartech posted a loss of $21.1 million, compared with a loss of $50.4 million in fiscal 2010.   

Source

December 2, 2011

US auto sales look strong in November

Filed under: lenders, management — Tags: , , , — Silver @ 2:44 pm

People are finally replacing the cars and trucks they held onto during the economic slump, giving a boost to sales at Chrysler, GM and Nissan in November.

Chrysler’s sales rose 45 percent from a year earlier, while GM’s climbed 7 percent and Nissan’s 19 percent. The three companies were among the first to report U.S. sales of new cars and trucks on Thursday.

Dealers say they’ve had strong floor traffic all month, with surprisingly high sales for a month that’s normally lackluster because of colder weather and holiday distractions. But this November, buyers went to showrooms because of good deals on leases, more confidence in the economy and a need to trade in older cars, says Ryan LaFontaine, a partner in a six-dealer chain in Michigan.

The activity underscores projections that Americans bought new cars at the fastest pace in more than two years as they replace aging vehicles. Analysts expect that the annual sales rate for November could range between 13.3 million and 14 million cars and trucks. That is far better than the rate of 12.6 million through the first 10 months of the year.

November sales also could approach the 14.1 million annual rate from August of 2009, when the government offered big rebates for drivers to trade in their gas-guzzling clunkers.

Sales at Chrysler Group LLC last month were led by the Jeep Compass small SUV, which had a nearly ten-fold increase in sales. Jeep brand sales rose 50 percent, while Chrysler brand sales nearly doubled on strong demand for its 200 and 300 sedans. But Chrysler also raised its incentives to nearly $3,300 per vehicle, up 6 percent from October.

At General Motors Co., buyers snapped up small cars and pickup trucks. Sales of the Chevrolet Cruze compact rose 54 percent, while the Silverado pickup, GM’s top-selling vehicle, saw sales jump 34 percent.

“We are seeing a broad spectrum of customers return to the market,” says Don Johnson, GM’s U.S. sales chief.

At Nissan, the tiny Versa led sales with a 38 percent increase, but SUV and truck sales also rose 32 percent.

People have been holding onto their vehicles in an unstable economy, and the rate of cars that are scrapped has surpassed sales for several years. The average age of a car on U.S. roads is a record 10.6 years, according to the Polk auto industry research firm.

The sales increases at the three car companies also reflect consumer confidence for November, which rose to the highest level since July, according to the Conference Board. October’s number was the lowest since the recession.

With the increased confidence, car buyers are releasing pent-up demand, said Larry Dominique, executive vice president of data for the TrueCar.com automotive website. “I think consumers are just starting to say `it’s time to start spending money again,’ ” he said.

TrueCar expects November sales to be nearly 12 percent higher than a year earlier, capping six months of sales gains compared with the same month in 2010. Last November, the annual sales rate was only 12.3 million as the auto industry was just starting to recover from the economic meltdown.

Sweet lease deals, helped by low interest rates and high used-car values that make leased vehicles worth more when they’re returned, also are fueling sales. GM, for instance, is offering a Cruze lease $169 per month for 39 months. According to TrueCar, the average industry spending on incentives such as leases and low-interest loans was $2,534 per vehicle in November, up 2.5 percent from October.

Source

December 1, 2011

Business news in brief

Filed under: Australia, lenders — Tags: , , , — Silver @ 1:48 am

Bistate wage gender gap

The wage gap between men and women yawns wider in Missouri and Illinois than elsewhere, according to new data from the Bureau of Labor Statistics.

The average full-time woman worker in Missouri made just 75 percent of the average man’s earnings in 2010. Women in Illinois did a little better at 78 percent. The national average is 81 percent.

The bureau doesn’t blame the gap on state-to-state differences in sexism. Instead, it cites “variations in the occupations and industries found in each state and the age composition of each state’s labor force.”

In Missouri, the median weekly wage stood at $813 for men and $616 for women. Illinois was at $814 for men and $634 for women. The national average is $824 for men and $669 for women. (Jim Gallagher)

Ralcorp in ‘buy’ mode

November 26, 2011

Italy’s borrowing rates soar, batter stock markets

Filed under: Uncategorized, legal — Tags: , , , — Silver @ 9:16 am

Italy’s borrowing rates skyrocketed during bond auctions Friday, battering stock markets in Europe as the continent’s escalating debt crisis laid siege to the eurozone’s third-largest economy.

The auction results are another sign that Italy’s new technocratic government under economist Mario Monti faces a battle to convince investors it has a strategy to cut down the country’s euro1.9 trillion ($2.6 trillion) debt. They are also likely to fuel calls for the European Central Bank to use its firepower to cool down a debt crisis that’s rapidly getting worse.

“Mario Monti has failed so far to impress bond markets he has the power and authority to do what is required,” said Louise Cooper, markets analyst at BGC Partners. “I don’t rate his chances either.”

Driving the markets fears is the knowledge that Italy is too big for Europe to bail out, like it has done with smaller nations Greece, Portugal and Ireland. Given the size of its debts _ Italy must refinance $300 billion next year alone _ the government has to continually tap investors for money. But when borrowing rates get too high, it fuels a potentially devastating debt spiral.

Friday’s auctions indicated that investors see Italian debt as increasingly risky. The country had to pay an average yield of 7.814 percent to raise euro2 billion ($2.7 billion) in two-year bills _ sharply higher than the 4.628 percent it paid in the previous auction in October. And even raising euro8 billion ($10.7 billion) for six months proved exorbitantly expensive. The yield for this auction spiked to 6.504 percent, nearly double the 3.535 percent rate in October.

Following the grim auction news, Italy’s borrowing rates in the markets shot higher, with the ten-year yield spiking 0.34 percentage point to 7.30 percent _ above the 7 percent threshold that forced other nations into bailouts.

Italy was not the only country in the 17-nation eurozone in experiencing a disappointing auction this week. Even Germany _ the region’s strongest economy and the main funder of eurozone bailouts _ suffered a shock Wednesday when it failed to raise all the money it sought, its worst auction result in decades. Spain too saw its borrowing rates ratchet sharply higher even after a landslide election victory for the conservative Popular Party, which has made getting Spain’s borrowing levels down its top priority.

Monti, who replaced Silvio Berlusconi as Italy’s leader earlier this month, has pledged to quickly implement new austerity measures followed by deeper reforms. He spent much of his first week in office meeting with European Union officials and the leaders of France and Germany laying out his plans.

During the meetings, Monti emphasized his intention to balance the budget by 2013 and to introduce “fair but incisive” structural reforms,” his office said in a statement following a Cabinet meeting Friday.

Monti also has pledged to reform the pension system, re-impose a tax on homes annulled by Berlusconi’s government, reduce tax evasion, streamline civil court proceedings, get more women and youths into the work force and cut political costs.

EU monetary affairs commissioner Olli Rehn told the Italian Parliament that “full and effective implementation will be key.”

He urged a “clear and ambitious roadmap for reform and an ambitious timeline” and expressed particular concern about low employment among Italian youth.

“Over the longer term, productivity will depend on a well-educated labor force,” Rehn said. “I am particularly concerned about high unemployment, which is a tremendous waste of talent that Europe simply cannot afford.”

Rehn was in Rome to monitor Italy’s compliance with promises to liberalize its labor market, reduce the bloated public sector and sell off some state assets.

There were also signs that contagion over Europe’s debt crisis was moving eastward. Moody’s downgraded Hungary’s sovereign debt to junk status _ from Baa3 to Ba1 with a negative outlook _ a decision Hungary hotly criticized. Hungary is not a member of the eurozone, but trades with many eurozone members.

This week’s developments have ratcheted up the pressure on the European Central Bank to step up its bond purchases in the markets, though Germany remains adamantly opposed. The current program is designed to support bond prices in the markets, thereby keeping a lid on the borrowing rates.

So far, the ECB has been buying limited amounts of bonds and has to sell an equivalent amount of assets. The ECB said Monday it bought bonds worth only euro4.5 billion last week, down from euro9.5 billion a week earlier.

Potentially, the ECB has unlimited financial firepower through its ability to print money and many countries in the eurozone, including France, want the bank to act more decisively to solve the debt crisis.

However, Germany finds the idea of monetizing debts unappealing, warning that it lets the more profligate countries off the hook for their bad practices.

Source

November 24, 2011

France and Germany to propose changing EU treaties

Filed under: Lending rates, Uncategorized — Tags: , , , — Silver @ 6:20 pm

President Nicolas Sarkozy appeared to temper his calls for the European Central Bank to play a bigger role in solving Europe’s debt crisis as he agreed to a German effort to change EU treaties to improve the governance of the troubled eurozone.

Speaking after meeting with German Chancellor Angela Merkel and Italian Premier Mario Monti on Thursday, Sarkozy said “propositions for the modification of treaties” would be presented in the coming days.

He wouldn’t elaborate on what these changes may be but said they would be ready in time for the next EU leaders summit on December 9.

This was the first meeting of the three leaders since Monti took over last week following mounting market concerns over Italy’s huge debts.

The meeting in Strasbourg, France comes amid signs that even Germany and France _ the eurozone’s two biggest economies _ are not immune from the crisis that’s already seen three relatively small countries bailed out.

All three leaders said they would do what it takes to stabilize the situation and save the euro.

“We want the euro, we want a strong, stable euro … we will do everything to defend it,” Merkel said.

France has been reluctant to resort to changes to EU treaties to improve the way the eurozone countries work together and set policies and prevent future crises low fee payday advance. Germany had pushed for such changes, saying voluntary pledges by national governments are no longer enough to boost market confidence.

Merkel insisted that the proposed changes would “not deal with the European Central Bank,” which she stressed was responsible for monetary, not fiscal, policy. Sarkozy did not push for a greater role at their closing press conference, while Merkel insisted on the bank’s independence.

Many think the ECB is the only institution capable of calming frayed market nerves.

Potentially, the ECB has unlimited financial firepower through its ability to print money. However, Germany finds the idea of monetizing debts unappealing.

Monti, meanwhile, reiterated his pledge to balance Italy’s budget by 2013 though he sidestepped the question on whether achieving that aim would require more austerity measures, and if so, whether it risked triggering a recession in the eurozone’s third largest economy.

Source

November 22, 2011

Asian stocks down after US cuts 3Q growth estimate

Filed under: Business, money — Tags: , , , — Silver @ 11:08 pm

Asian stocks fell Wednesday after the U.S. lowered its economic growth estimate for the third quarter and climbing yields on Spanish bonds magnified worries over Europe’s debt load.

Hong Kong’s Hang Seng fell 2 percent to 17,882.10. South Korea’s Kospi lost 2 percent to 1,789.83 and Australia’s S&P/ASX 200 shed 1.6 percent to 4,066.80. Japanese stock markets were closed for a public holiday.

Wall Street slipped Tuesday after a government report showed the U.S. economy grew at a 2 percent annual rate from July through September, down from an initial estimate of 2.5 percent. Economists had expected the figure to remain the same.

The Dow Jones industrial average lost 0.5 percent to close at 11,493.72. The Standard & Poor’s 500 fell 0.4 percent to 1,188.04. The Nasdaq composite fell 0.1 percent to 2,521.28.

Higher borrowing costs for Spain, meanwhile, renewed worries about Europe’s debt crisis. The higher rates suggest that investors are still skeptical that the country will get its budget under control despite a new government coming to power this week.

Investors have been worried that Spain could become the next country to need financial support from its European neighbors if its borrowing rates climb to unsustainable levels.

Greece was forced to seek relief from its lenders after its long-term borrowing rates rose above 7 percent. The rate on Spain’s own benchmark 10-year bond is dangerously close to that level, 6.58 percent payday advance lenders.

Underscoring jitters was the lack of market reaction to an announcement by the International Monetary Fund that it will provide quick cash on flexible terms to countries facing sudden financial stress.

“Failure of this news to result in significant gains across markets shows just how cautious investors are,” Stan Shamu of IG Markets in Melbourne said in a report.

Concerns remain that Europe’s debt crisis is pushing the region toward recession, which would slow industrial activity in countries around the world that export to Europe.

Australian resource shares took a big hit after the country’s House of Representatives approved a proposal to impose a windfall profits tax on big mining companies. The Senate is expected to endorse the measure in early 2012.

BHP Billiton, the world’s largest mining company, fell 2.6 percent. Rival Rio Tinto lost 1.6 percent and Energy Resources of Australia slid 4.2 percent.

Benchmark oil for January delivery was down 65 cents to $97.36 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.09 to finish at $98.01 per barrel on the Nymex on Tuesday.

In currencies, the euro fell to $1.3466 from $1.3509 late Tuesday in New York. The dollar rose slightly to 76.99 yen from 76.97 yen.

Source

November 21, 2011

Protestors reinvigorate buy-American debate

Filed under: Banks, lenders — Tags: , , , — Silver @ 12:32 pm

Whether people celebrate or criticize Occupy Wall Street, the movement has reinvigorated calls for local buying just in time for the manic holiday shopping season.

Buying local and American-made became a battle cry for some in the movement that blames big business greed for shuttering American operations and shipping those jobs overseas.

“Some people talk about buying local and not supporting large chain stores, but really I think we want to encourage people to think consciously about where they shop,” said Zach Chasnoff, 33, of south St. Louis.

Chasnoff has wielded a bullhorn at a few Occupy St. Louis rallies, though he said he couldn’t speak as a representative of a movement. He said he’d been waiting for an opportunity to ignite this particular discussion.

Chasnoff owns a house painting business that fluctuates from two to seven employees during his busy season. When the bottom fell out of the economy in 2008, he was virtually unemployed for about seven months and didn’t know if he’d keep his house, he said. Meanwhile, bank bailouts and news of continued executive bonuses infuriated him. He blames greed for companies’ transferring jobs overseas and cheap foreign goods for undercutting American-made items.

Many economists challenge that logic, saying that free trade ultimately benefits the U payday loans.S.

“It feels almost anti-patriotic to buy goods made elsewhere right now. You are perpetuating the loss of manufacturing jobs,” Chasnoff said, echoing long-standing protests by some against, for instance, buying foreign cars.

Buying local, on the other hand, puts consumers, not corporations, in control, he said.

Would it work?

Steve Farazzi, a professor of economics at Washington University, said that the wage disparity concerns at the root of the Occupy Wall Street movement wouldn’t be solved by shopping at boutiques and farmers markets.

“I’d have a hard time telling people that their holiday shopping patterns will have an important impact on income distribution,” Farazzi said.

If globalization has killed American jobs and driven down wages, then the tool to combat the trend would be higher wages in emerging markets such as China, not necessarily closing operations there. China’s extremely cheap labor is the problem for American workers, not the fact that Chinese workers have jobs formerly held by Americans, Farazzi explained.

Rising global wages would level the playing field for American workers, he said, and it would increase the demand for all goods if we have more people who can afford to buy. But Farazzi acknowledged that a push to boost wages for Chinese workers

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