Financial life in a big town

Deutsche Telekom AG’s major shareholder, the German state, is pressing it to make large acquisitions in the hope of raising its sagging share price, a source familiar with the government’s thinking said.

“Berlin is very clearly on an expansion course and is putting pressure on Deutsche Telekom,” the source told Reuters on Monday, as speculation swirled the German company could bid for U.S. wireless phone company Sprint Nextel (S.N: Quote, Profile, Research).

A source close to the company said Deutsche Telekom (DTEGn.DE: Quote, Profile, Research) had been looking at Sprint Nextel since the U.S. company announced a huge goodwill writeoff in February. The person said no decision had been taken on whether to bid.

The Berlin government still owns around a third of the former state-owned company, has a representative on its supervisory board and has a major say in company decisions.

Asked about Telekom being interested in Sprint Nextel, German Finance Minister Peer Steinbrueck told reporters in Berlin he considered it to be “a rumor, like so much else”.

Deutsche Telekom’s chief executive, Rene Obermann, has said he wants to grow the group’s mobile phone business through acquisitions to compensate for a dwindling fixed-line business and has linked his performance to boosting the share price.

Telekom shares lost 1.5 percent to close at 11.61 euros, the second-biggest decliner among German blue-chips .GDAXI faxless online payday advances. Sprint shares were up 4.3 percent at $8.23 by 1751 GMT.

Such a deal would vault Deutsche Telekom’s T-Mobile USA unit past AT&T (T.N: Quote, Profile, Research) and Verizon Wireless (VZ.N: Quote, Profile, Research) (VOD.L: Quote, Profile, Research) to the number one spot among U.S. mobile phone service providers, but industry experts were skeptical Telekom would pull it off. 

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British oil major BP Plc (BP.L: Quote, Profile, Research) beat forecasts on Tuesday with a 48 percent leap in first-quarter profits to $6.6 billion, helped by record oil prices and strong profits from punting energy markets.

The results raised investor hopes Chief Executive Tony Hayward’s restructuring of the world’s third-largest non government-controlled oil company by market capitalization was working effect, pushing BP’s shares up over 4 percent.

“The figures are very good,” Tony Shepard, oil analyst at Charles Stanley said.

The results echo the forecast-beating profits also reported by Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research) on Tuesday. Double click on nL29466167 for more.

The main driver of BP’s earnings was its core oil and gas production unit, which benefited from oil prices which broke the $100/barrel barrier in the quarter, although output was flat at 3.913 million barrels of oil equivalent per day (boepd) americashadvance.

Output would have risen 5 percent, BP said, if it were not for the production sharing contracts it has with resource-holders, which reduce the amount of oil BP receives from projects when oil prices rise.

BP’s refining and marketing division turned in an unexpected $1.2 billion profit, despite lower crude processing margins and lower throughputs at its refineries.

Many analysts had expected a loss but a strong result from marketing aviation fuel and lubricants helped the company. 

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So, you want to open a discount brokerage account and manage your own investments.

Which discount broker do you choose? How do you compare them all?

Luckily, you can find a wealth of Canadian information online.

You can start your virtual tour with Surviscor, a consulting firm that regularly reviews and ranks the discount brokerages.

Its winter 2008 survey, posted at www.surviscor.com, compares 16 online brokers operating in Canada.

As well as overall rankings, there are separate rankings for investors and traders. This recognizes they have different needs.

Credential Direct, owned by Canada’s credit unions, gets the top score for catering to investors (7.59 out of 10).

It’s followed by BMO InvestorLine (6.85), Qtrade (6.56), National Bank Direct Brokerage (6.42) and TD Waterhouse (6.37).

Your next stop is the Stingy Investor website. (Go to www.ndir.com and search for Canadian discount brokers). It’s run by Norm Rothery, chief investment strategist at Dan Hallett & Associates Inc.

Here you can find up-to-date comparisons of the fees and commissions charged by 15 Canadian online brokerages (as well as phone numbers and email addresses).

What you pay usually depends on how many trades you make per quarter or year, how many shares you buy at a time and how many dollars you have in assets at the firm.

In the past year, most discount brokers have introduced lower fees for active traders. That’s the good news.

But many brokers also charge penalties – called maintenance fees – for inactive traders, especially those with smaller accounts. So, watch out and ask questions.

The Stingy Investor doesn’t rank discount brokers. But when you read its listings, one firm stands out for simplicity and low fees.

Questrade charges one cent a share, $4.95 minimum to $9.95 maximum, and calls this "democratic pricing."

Maybe you want to hear about other investors’ online trading experiences paydayloan.

You want to eavesdrop on their conversations.

Thanks to a proliferation of Canadian personal finance blogs, you can have access to other people’s experiences and opinions. But you do need to exercise judgment.

Start with CanadianCapitalist.com, one of the longest-running and active personal finance blogs. Scroll down the right hand side to Categories, then find Investing and Discount Brokers.

You’ll find out why this blogger went to Questrade for rock-bottom trading commissions and then returned to TD Waterhouse to consolidate all his accounts with one broker.

Another blog worth an investment of your time is Million Dollar Journey, which has a chart comparing eight Canadian discount brokers (www.milliondollarjourney.com).

Besides fees and commissions, he looks at such factors as: What is the margin rate? Can you get real-time quotes free? What is the minimum required to open an account? Is there a maintenance cost? How much interest is paid on cash? Can you use a dividend reinvestment plan? What is the foreign exchange fee or spread charged?

This blog also publishes reviews of individual brokers and critical comments from readers.

"It took a total of 5.5 weeks for my RRSP to get transferred from Tradefreedom to Questrade," says one investor. "I saw that my RRSP positions were incorrect. I’m pretty frustrated with the overall experience."

In case you think it’s all one-sided, you can find responses from Lynn Suderman, communications manager for Questrade, to some of this negative feedback.

Next week, we’ll look at how to put together a portfolio of exchange-traded funds that needs little oversight or supervision.

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Anyone who has tried to break a bad habit knows how hard it can be. Every New Year’s Day millions resolve to lose weight, quit smoking or get better organized. And every Jan. 2, those making the resolutions are resolved to try it again another day.

In his latest book, "Strategy and the Fat Smoker," author David Maister equates business achievement with the struggle a smoker has when trying to quit the habit. Many try, but not all will succeed.

With business, as it is with smoking, Maister surmises some essential questions of strategy are not being asked and answered despite a plethora of practical wisdom that is well disseminated, publicized and understood.

Smokers who want to quit know that doing so will benefit their health and their wallets. Executives know a well-designed business approach will add to their bottom line.
There are a million good reasons for doing both. But turning reason into reality means thinking differently about strategy. Without answering some tough questions, the smoker lights up again or the business fails because of the pursuit of the same old failed strategy in hopes of a better result.

Those who lead organizations, according to Maister, must think differently about strategy. First, they must learn what drives and motivates people, then take that information to the next level by using it to figure out how to change and improve their businesses. Second, they must be ready to rebound from mistakes. The ability to recover from mistakes is a strategy move in its own right.

Maister’s book has opened my eyes to two important ways of looking at strategy.

First, it has helped me realize that creating a single resolve in a group to take action is more important than merely creating insights into what should be done. Getting everyone on board and, as Maister says, "sticking to the diet" can be a leader’s biggest challenge. If done well, however, it can also be the most rewarding.

Second, is the importance of taking an action-oriented approach to strategy cash advance loan. Problems should be addressed now, before something serious happens in the future, leaving what needs to be fixed beyond repair. Being successful means moving forward and implementing something management and your organization cannot ignore.

Maister also reveals his finding that success cannot be achieved if you rely on only doing things "well most of the time." For him, the pursuit of short-term goals is inherently anti-strategic and self-defeating. The time necessary to make noteworthy advancements cannot be undervalued.

He reminds us that anything worth putting an effort into, whether it is breaking a bad habit or building a better business strategy, will take time to bear fruit. You must forgo some of today to reach a better tomorrow.

Maister says strategies in business are applied more efficiently when presented as matters of principle and not just convenience. In establishing those strategies, business leaders must take into account that some people have an appetite for high-investment, future-oriented strategies they are willing to defer. Others, they will find, are reluctant to invest, even in their own future.

If you are willing to invest some of your time on a strategy book designed to make you a better manager, take a bite out of "Strategy and the Fat Smoker."

BENJAMIN OLA. AKANDE IS DEAN OF WEBSTER UNIVERSITY’S SCHOOL OF BUSINESS AND TECHNOLOGY. READERS ARE INVITED TO JOIN WEBSTER’S ONLINE BIZTALK BOOK CLUB. GO TO WWW.WEBSTER.EDU/SBT/BOOKCLUB TO JOIN AND PARTICIPATE IN THE BOOK CLUB CHAT FOR "STRATEGY AND THE FAT SMOKER" FROM NOON TO 1 P.M. TODAY. NEXT MONTH’S BIZTALK BOOK CLUB SELECTION IS "LIFE’S A CAMPAIGN: WHAT POLITICS HAS TAUGHT ME ABOUT FRIENDSHIP, RIVALRY, REPUTATION, AND SUCCESS," BY CHRIS MATTHEW.

‘Strategy and the Fat Smoker’ by David Maister The Spangle Press, $29.99

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Stock index futures fell on Thursday as investors fretted about the outlook for corporate profits and news that Lehman Brothers (LEH.N: Quote, Profile, Research) put $1 billion of soured assets onto its balance sheet.

Retailers were also a focus as they released March sales reports. Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research) posted same-store sales that fell short of Wall Street’s forecasts but raised its profit forecast. Shares of Wal-Mart, a Dow component, rose 2 percent to $55.24.

But a headwind for stocks was the price of oil, which traded above $111 a barrel and near a record high set on Wednesday.

Shares of Lehman Brothers were down more than 5 percent in Europe after the Wall Street bank said in a regulatory filing it liquidated three floundering investment funds and put $1 billion of assets onto its balance sheet.

Home goods retailer Bed Bath & Beyond Inc (BBBY.O: Quote, Profile, Research) joined United Parcel Service Inc (UPS.N: Quote, Profile, Research) and others when it gave a quarterly profit forecast well below Wall Street’s estimates quick payday loan. Its shares dropped 5 percent after the bell from a Nasdaq close of $29.47.

“We have entered a very cautious phase with investors very much on edge about earnings,” said Peter Cardillo, chief market economist at Avalon Partners.

“We also have oil prices making new highs and the dollar making new lows against the euro. While the averages are not falling apart, we’ve certainly embarked in a cautious, downward trading range.”

S&P 500 futures fell 6.4 points, but were above fair value, a formula to evaluate pricing taking into account interest rates, dividends and time to expiration on the contract. 

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In a recent performance review, my sister was rated "below expectations." Her boss said she took too long to complete a project. However, this really wasn’t her fault.

During that time, she had a lot of computer problems. Also, management changes created some confusion and her co-workers weren’t very cooperative. But she still got a bad review.

Now she’s on three-month probation with a warning that her current project must be completed on time. It’s not clear what will happen if she doesn’t meet the deadline.

I don’t think this is fair, because many things are out of her control. And the rules seem to be different for her. For example, her boss has positioned her monitor so that he can see what she’s doing.
My sister tries hard, despite getting little cooperation from others. I feel that "below expectations" should be for people who goof off all day. What do you think?

I think you only have one side of the story. When someone receives a reprimand, the automatic response is to point out other reasons for the problem. That’s just human nature.

But here’s the catch: people who never see their own flaws continue to repeat the same ineffective behaviors. So your sister needs to take a long, hard look in the mirror.

Your sister received a low rating because her project was late. Other factors may have contributed, but her boss believes she was responsible. She needs to stop fretting about "fairness" and concentrate on self-improvement.

To get off probation, she must focus like a laser on her upcoming project deadline cash advance flexible payments. If unavoidable obstacles arise, she needs to tell her boss immediately. And nothing but work should appear on her computer monitor.

If you continue to encourage your sister’s search for scapegoats, you will only perpetuate the problem. Instead of collaborating in her denial, try to help her save her job.

I am 24 years old with a job that bores me to death. Now that I’m in graduate school, I’ve realized that I truly hate this field. However, I am clueless about what I might prefer.

My parents say I should stick with this profession because the pay and benefits are good. What’s your opinion?

Somewhere along the line, you wandered down an inappropriate career path. But that doesn’t mean you have to stay there.

If you do, a lack of interest and commitment will limit your success. And no salary or benefit package is worth a lifetime of unhappiness and boredom.

Although your Mom and Dad undoubtedly have your best interests at heart, parents often make lousy career counselors. You need to seek out professional advice.

As a graduate student, you should have access to career counseling through your school’s placement office. Explore different occupations until you find one that energizes and excites you.

Marie G. McIntyre is a workplace coach. Send questions and get tips at www.yourofficecoach.com.

2008, McClatchy-Tribune Information Services

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The U.S. Department of Justice has launched a criminal investigation into whether Alcoa Inc (AA.N: Quote, Profile, Research), one of its subsidiaries and people connected with the unit committed fraud, corruption and bribery in its relations with customer Aluminum Bahrain B.S.C. (Alba).

In a motion filed Thursday with the U.S. District Court in Pittsburgh, the Justice Department asked the court to put a temporary hold on a Alba’s civil suit against Alcoa, the world’s largest supplier of alumina, the principal raw material used in making aluminum.

The suit also names affiliate Alcoa World Alumina LLC, former Alcoa World Alumina Vice President of Marketing William Rice and Victor Dahdaleh, an agent of Alcoa and Alcoa World Alumina, as defendants.

“The Alba complaint alleges numerous facts which, if true, could be relevant to the government’s criminal investigation and a potential criminal trial,” the department wrote in its motion.

Last month, Alba, one of the worlds largest smelting firms, filed suit seeking more than $1 billion from Alcoa, accusing the firm of participating in a 15-year conspiracy involving overcharging, fraud and bribery.

In the suit, Alba accused the defendants of steering payments for alumina to companies abroad in order to pay kickbacks to a Bahraini government official.

Alba, which is 77 percent owned by the government of Bahrain, also accuses the defendants of overcharging it for alumina payday advance. It did not name the official to whom bribes were allegedly paid.

According to the suit, the bribes were sent through a series of shell companies controlled by Alcoa and resulted in hundreds of millions of dollars in overpayments. 

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DALLAS — The Federal Aviation Administration, under fire for its handling of missed safety inspections at Southwest Airlines Co., said Tuesday it is ordering a check of maintenance records at all U.S. airlines.

The FAA’s action applies to records on all planes. FAA inspectors will check to make sure airlines have complied with orders to perform the type of structural inspections that Southwest missed on some older Boeing 737s.

The FAA hit Southwest this month with a $10.2 million civil penalty for missing the inspections and then continuing to fly the planes even after realizing the mistake. Dallas-based Southwest plans to appeal.

Acting FAA Administrator Robert Sturgell said Tuesday that the failure of Southwest to check the fuselages of its planes for cracks prompted him to ensure that other carriers were meeting the same requirement.

Sturgell said the first check of the airlines’ maintenance records will be done by March 28 and a full audit finished by June 30.

The FAA said it would check compliance with at least 10 safety orders, called airworthiness directives, at every airline by March 28. The agency said a full audit covering at least 10 percent of all safety directives will be finished by June 30 payday loan.

FAA spokeswoman Laura Brown said the review will involve both examining paperwork and checking airplanes at 118 operators, some of which are very small.

David Castelveter, a spokesman for the airlines’ trade group, the Air Transport Association, said the FAA audit would "help create the redundancies that make our aviation system the safest in the world."

In a letter to airline officials, FAA Associate Administrator for Safety Nicholas Sabatini defended the agency’s recent strategy of relying more heavily on information from the airlines themselves. FAA and airline officials argue that the system correctly focuses on improving safety instead of finding blame.

Southwest turned itself in to the FAA last March after discovering it had missed structural safety inspections on 46 planes. The company is conducting an internal review, and the FAA is also investigating how the lapses occurred.

After a drumbeat of bad publicity lasting more than a week, Southwest confirmed Monday that it was suspending plans to outsource some of its maintenance work to a contractor in El Salvador.

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On Dec. 17, Jewell Douthit walked out of the St. Louis County Jail, looking for a new start.

He had been in since March, on felony nonpayment of child support, and it had opened his eyes to some things, he said. His debt to society repaid, he wanted to build a new life.

But to do that, Douthit needed a job. That’s not the easiest thing to find when the economy is slumping and you have "convicted felon" attached to your name.

This is what the job search can be like on the margins. Uncertain. Frustrating. A lot of closed doors. And sometimes littered with hurdles like a lack of transportation, a criminal record and plain unfamiliarity with the ways of the working world.

A few days after he got out, Douthit boarded a Metro bus and rode it to Employment Connections, a social service agency that provides job counseling for welfare recipients, homeless vets and felons.

Like each of the roughly 1,500 people who come through the agency each year, Douthit’s first stop was a class on "work readiness training" and four days with Michael McCoy.

Shaven-headed, bushy-bearded and relentlessly upbeat, McCoy describes his job in a way that makes him sound a little like a drill sergeant, giving people on the bottom the tools, and the mind-set, they need to compete in the job market.

"These people have been beaten down by so much payday loans. They need to be reprogrammed, you know?" he said. "We have to fight through layer by layer by layer."

To do that, he starts with some advice. Stay positive. Network. Stick with your search, even when it means waiting 20 minutes for a bus on a cold day.

Then he asks his class of 10 how many have an e-mail address. Only half raise their hands.

"Get one," he said. "It shows employers you’re in the 21st century with the rest of us."

Then there’s the "don’ts."

Don’t slouch when you’re talking with an employer. Don’t fold your arms.

Don’t let your tattoos show, or wear earrings if you’re a man. If you’ve got gold teeth, as he used to, think about taking them out.

"That may be your culture," McCoy said. "But when you go into the business world, it’s about perception."

And, like it or not, he said, perception often is stacked against the people who wind up in his classroom.

Douthit, in fact, is better off than most of the ex-cons in McCoy’s classes. His crime was nonviolent, and not drug-related. He has a r

A Washington-based advocacy group has threatened to sue St. Louis-based Anheuser-Busch Cos. for marketing caffeinated drinks that contain alcohol. The Center for Science in the Public Interest claims A-B’s Bud Extra and Tilt drinks deliberately appeal to young consumers and that Web and magazine marketing imply that consuming alcohol and caffeine together allows people to drink more alcohol.

It is threatening similar lawsuits against Miller Brewing Co.

The center said A-B could avoid potential lawsuits in state courts if it agrees to stop selling alcoholic beverages that contain caffeine, guarana or ginseng and give up profits from the sale of Tilt and Bud Extra payday advance.

A-B said the formulation and labeling for Bud Extra and Tilt have been approved by federal authorities, and that the products are lawful in states where available.
The brewer said it will "vigorously defend (its) legal right" to compete within the category.

— JEREMIAH MCWILLIAMS

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