03.10.10
Posted in .com, Free blog Tips, hot news, online, world of money tagged All, markets, money, news, reviews at 2:30 pm by carydalton
SAN FRANCISCO (MarketWatch) — Citigroup Inc. shares rallied almost 7% Tuesday on speculation about mergers and acquisitions in the U.S. banking industry and after a bullish research note came out on the bank.
Barclays PLC is considering another major acquisition in the United States, and is hunting for a retail bank that would give it more deposits and extend the presence of its Barclays Capital unit in the country, The Wall Street Journal reported Tuesday, citing unidentified people familiar with the matter.
Bull-market birthday
As the bull market notches its first year anniversary, the News Hub panel weighs in on whether investors can still make money and how the market will react when the interest rates inevitably adjust.
The bank, in response to potential changes in banking regulation, has designated an internal team to assess possible targets, the newspaper added no teletrack payday loans.
Citigroup is “back from the brink and back in business,” research firm CreditSights wrote in a report released late Monday evening.
“Citi is still a work in progress,” the research firm said, but the bank’s debt and equity should benefit from its branch-light configuration, international consumer exposure, improving liquidity and the fact that the stock “is just plain cheap.”
Citi climbed 6.7% to $3.80 in afternoon action on Tuesday. More than 630 million shares were traded.
Citigroup shares rally on M&A speculation
Permalink
03.06.10
Posted in .com, hot news, money, top, world of money tagged All, blogs, events, money, opinion at 3:12 pm by carydalton
LONDON (MarketWatch) — Anglo-Swiss mining firm Xstrata gained ground on Friday after a deal to sell its Prodeco assets in Columbia to shareholder Glencore, a move that helped the metals sector to advance in the British stock market.
Xstrata shares climbed 2.5% after it said Glencore International will exercise its option to acquire its Prodeco coal operations in Columbia.
Under the option agreement, Glencore, which holds more than 34% of Xstrata, will pay Xstrata at least $2.25 billion in cash upon completion of the sale.
“Glencore’s decision to exercise its option provides Xstrata’s shareholders with a robust cash return on the initial purchase price and provides additional financial flexibility as Xstrata’s capital expenditure program ramps up to deliver 50% volume growth by 2014,” said Xstrata CEO Mick Davis.
Analysts at MF Global noted: “Prodeco was Glencore’s asset contribution during the [Xstrata] rights issue last year, when the metals trader did not have the cash to participate.”
They believe that the deal will take Xstrata’s net debt/EBITDA ratio back below 1 times which “should allow the group to spend more on capital expenditure or even mergers and acquisitions.”
They added: “investors in that context could focus on Lonmin once more, of which Xstrata already owns 24.65%.” Platinum miner Lonmin rose 1.8%.
Overall, the FTSE 100 index rose 0.4% to 5,550.99 on Friday and other European shares also advanced. U.S. stock futures were pointing to mild gains ahead of key jobs data due out later. See Europe Markets. Read more on jobs.
“News flow from Japan is overshadowing the final trading session of the week, though we expect that will change in a few hours when the U.S. employment report for February is published,” said Kenneth Broux, economist at Lloyds Corporate Markets.
On Friday, there was speculation that Japan will ease monetary policy through April in order to push down short-term rates. The BOJ’s policy board is expected to discuss such steps at a two-day meeting starting March 16, Japanese business daily Nikkei reported cash advance. Read more on BOJ.
Banks were higher in London trading, with Standard Chartered shares up 2.4% and HSBC Holdings up 1%.
Still, shares of advertising giant WPP / declined 0.7%. Its fiscal-year net profit was broadly flat at 437.7 million pounds, compared to 439.1 million pounds a year ago. Sales rose 16.1 to 8.68 billion pounds.
WPP said that 2010 should be a more stable year although “there is no marked growth as yet.”
Shares of British American Tobacco declined 0.4% to 2,309 pence.
It was downgraded to neutral from outperform at Credit Suisse with the broker saying it sees limited upside to its new target price of 2,350p following a recent strong performance for the firm’s shares. It raised 2010 and 2011 earnings per share forecasts for the firm by 4%, mainly to reflect recent sterling weakness.
“At current levels, we would favor Imperial Tobacco and Philip Morris International , which should also deliver robust earnings growth in 2010 as pricing - the industry’s main P&L lever - remains good,” the broker said.
Outside the top index, United Business Media shares jumped 10%.
The media firm posted 2009 profit after tax of 81.8 million pounds, from 82.7 million pounds last year and also resolved its “decade-long dialogue” with the U.K. tax authorities following the sale of its regional newspapers business in 1998.
“We have agreed to make a payment of 46.5 million pounds in settlement of this and a number of other tax issues. This, together with the resolution of a number of other tax matters, has resulted in a release of 135.2 million pounds of our previous tax creditor,” the firm said.
Michael Page International shares fell 1.7%.
The recruitment firm’s 2009 net profit fell to 12.4 million pounds, from 97.3 million pounds recorded at the same point last year. Revenue declined to 716.7 million pounds, from 972.8 million pounds last year.
London Markets: British shares up as miners, banks rise
Permalink
03.05.10
Posted in .com, business, economic, news, online tagged events, finance, newsreports, personal, politics at 7:12 am by carydalton
NEW YORK – Shoppers returned to the nation’s malls last month, buying a surprising amount of spring clothing and other items and helping stores post the strongest retail sales since November 2007, a month before the recession began.
The better-than-expected 3.7 percent gain reported Thursday showed that Americans are still thrifty, but they are letting go of some of the frugality brought on by the economic downturn. And many are willing to spend for certain higher-end goods.
Consumers “are now starting to go back to where they had typically shopped” before the recession, said Michael Niemira, chief economist at the International Council of Shopping Centers, who expected a 2 percent gain. “I’m surprised by the broad strength.”
But, he added, there’s still uncertainty about whether such a robust pace can be sustained, particularly later this year when the sales figures are being compared with more stabilized spending patterns.
The February sales report was the third consecutive monthly increase, according to the ICSC. The monthly index excludes Wal-Mart Stores Inc., which stopped reporting monthly sales last year.
Shoppers shrugged off snowstorms and worries about the economy to visit a broad array of merchants, from luxury retailer Nordstrom to middlebrow Macy’s Inc. to discounter Target Corp., which all reported solid sales increases that beat Wall Street analysts’ estimates.
The figures are based on sales at stores open at least a year and are considered a key indicator of a retailer’s health.
Stores in malls, which had seen sales plunge as their customers traded down to cheaper options, are starting to bring shoppers back by offering lower-priced or exclusive items.
Saks Fifth Avenue, for example, is expanding its exclusive merchandise offerings, putting more emphasis on lower prices and expanding its discount Off Fifth chain.
Selia Black, 26, was at the Manhattan Mall in New York on Thursday to find a birthday gift for her sister. She splurged on a $178 jacket at full price at Bebe. A year ago, she would have been scouring for a present that was deeply discounted, she said.
“I’m easing up a little bit, but not totally,” said the Brooklyn woman. She does not work, but her husband is a security guard.
Black says the recession has made her switch from Macy’s to discounters such as Marshall’s, and she planned to keep shopping at discount stores even when the economy recovers.
“You always get the deals,” she said. “But this is something special.”
Dennis Jacobe, chief economist at Gallup, believes shoppers’ thriftiness may have thawed a bit, as shoppers who have jobs are buying a little more. But, he said, frugality has not gone away, based on Gallup’s polls.
“We are in a new normal of spending,” he said low fee payday advance. He cited Gallup surveys taken Feb. 1 to Feb. 3 in which 57 percent of consumers polled said they are spending less. One-third of those surveyed said curtailed spending will be their normal pattern.
Another factor that helped the monthly sales figures look so strong was that February 2009 figures were so awful. Jacobe says spending levels are still well below 2008.
February, sandwiched between post-holiday clearance and spring, is the second-least important month of the year for retailers after January. Analysts see combined data for March and April as a more accurate measure of consumer behavior.
Still, the fact that shoppers were buying full-priced spring clothing was a pleasant surprise in the face of a sharp drop in the monthly Consumer Confidence Index.
Economists pointed to factors that depressed shoppers’ mood last month but did not seem to affect spending: gridlock in Congress over the jobs bill and a dive in the stock market related to worries about Greece’s national debt — not to mention repeated winter storms that buried much of the country in heavy snow.
Most economists say companies need to start hiring significantly in order for spending to keep improving. Unemployment stood at 9.7 percent in January and was expected to increase to 9.8 percent in February. The Labor Department was to report new job figures Friday.
In other encouraging signs for the economy, the Labor Department reported Thursday that new claims for jobless benefits fell last week, reflecting that layoffs may be easing as the economy slowly recovers. Factory orders also rose in January, according to the Commerce Department.
Shoppers are buying food at Wal-Mart and picking up discounted designer clothing at TJ Maxx, but trading up to stores such as Macy’s and Kohl’s for exclusive merchandise, said Craig Johnson, president of retail consultancy Customer Growth Partners.
Target, the nation’s second-largest discounter behind Wal-Mart Stores Inc., said February sales in stores open at least a year rose 2.4 percent as it attracted more customers and more spending per customer. But food and household essentials remained the biggest sellers, with furniture and clothing sales about flat with last year.
Gap, where sales had been led by low-price Old Navy, is starting to see a recovery across all its brands, including upscale Banana Republic, where sales were hurt when the financial meltdown escalated. Sales at namesake Gap stores were flat, but Banana Republic posted a 6 percent gain and Old Navy’s business improved by 5 percent.
Retail sales post strongest gains since late 2007
Permalink
03.02.10
Posted in .com, Free blog Tips, hot news, online, world of money tagged business, finance, life, marketing, world at 6:05 pm by carydalton
LONDON – Inflation in the 16 countries that use the euro fell in February, official figures showed Tuesday, in a further sign that price pressures remain subdued in the wake of the recession.
Eurostat, the EU’s statistics office, said that eurozone prices are estimated to have risen by 0.9 percent in February from the year before. That rate is down from the 11-month high of 1 percent recorded in January.
The decline was unexpected — the consensus in the markets was for inflation to hold steady at 1 percent.
No further details were provided, but more information will come when Eurostat publishes its full release on March 16.
Nevertheless, the figures give further evidence that inflationary pressures remain constrained by a near 10 percent unemployment rate and subdued money growth.
This view was further underlined by another release from Eurostat showing that prices at the factory gate fell by 1 percent in January from the year before.
The figures are also likely to reinforce market expectations that the European Central Bank will not be raising its benchmark interest rate from the current record low of 1 percent anytime soon business card. The bank is tasked with keeping inflation at or just below 2 percent.
“In all, then, we still expect headline inflation to ease back towards zero over the remainder of the year, suggesting that it will be a long while yet before the ECB begins thinking about raising interest rates,” said Ben May, European economist at Capital Economics.
Though an interest rate increase is not thought to be imminent, the central bank’s president Jean-Claude Trichet is expected to announce on Thursday, at the conclusion of the latest monetary policy meeting, that special liquidity measures introduced to prop up the banking system during the financial crisis and the recession will continue to be wound down.
Eurozone inflation drops to 0.9 percent in Feb
Hot News: Titanium Metals reports sharp drop in 4Q profit
Permalink
Posted in .com, All, Free blog Tips, business, top tagged campaign, finance, markets, personal, reviews at 6:00 am by carydalton
FORT WORTH, Texas – Natural gas and oil producer Quicksilver Resources Inc. posted a fourth-quarter profit of $32.5 million, or 19 cents per share, Monday as revenue grew, compared with a loss a year earlier, when it recorded several charges.
A year earlier, the company lost $467 million, or $2.79 per share.
The results, which beat Wall Street’s expectations, sent Quicksilver’s shares up 50 cents, or 3.4 percent, to $15.42. The stock has traded the past 52 weeks at $3.98 to $16.59.
Excluding one-time items, the company earned $47.3 million, or 27 cents per share, up from an adjusted profit of $39.3 million, or 23 cents per share, a year earlier home kerosene heaters.
Revenue rose 12 percent to $234.1 million from $208.9 million.
Analysts, on average, were expecting a profit of 25 cents per share on sales of $217.4 million, according to a poll by Thomson Reuters.
For the full year, Quicksilver posted a loss of $557.5 million, or $3.30 per share, compared with a loss of $378.3 million, or $2.33 per share, a year earlier.
Adjusted earnings were 86 cents per share for 2009.
Revenue rose to $832.7 million from $800.6 million.
Quicksilver reports profitable 4Q, shares climb
Permalink
02.21.10
Posted in .com, business, money, shortly, top tagged campaign, economics, financial, news, writing at 4:06 pm by carydalton
BERLIN – The Cockpit pilots union offered Saturday to meet with the chief of Lufthansa AG to try to head off a four-day strike beginning Monday that could cause headaches for thousands of travelers.
The union offer to meet with Lufthansa Chief Executive Wolfgang Mayrhuber came after Germany’s transport minister urged the two sides to return to talks and avoid a strike that could damage the country’s economy.
Lufthansa has said it is willing to talk, but not without conditions. It was not immediately clear if the meeting would take place.
Lufthansa has already canceled some 600 flights ahead of the strike and is scrambling to rebook travelers on partner airlines or trains.
“Lufthansa is doing everything in its power to inform its customers as soon as possible and offer them alternative travel options,” the company said on its Web site.
Travelers who are unable to reschedule are being reimbursed for their tickets, it said guaranteed pay day loans.
The airline, Germany’s largest, estimates the strike could cost it as much as euro100 million ($135.19 million).
The union is urging some 4,500 pilots who fly for Lufthansa, Lufthansa Cargo and Germanwings to walk off their jobs from February 22-25 to press the airline for increased job security.
Cockpit accuses the airline of outsourcing more and more flights to pilots employed by other companies, who work for less pay and under worse conditions.
Also Saturday, German Transport Minister Peter Ramsauer warned the strike could seriously damage the German economy.
“It can not be that the largest German air fleet is grounded for four days,” Ramsauer told the Bild am Sonntag weekly.
___
On the Net:
http://www.lufthansa.com
Pilots offer to talk with Lufthansa before strike
Permalink
02.11.10
Posted in .com, All, money, online, top tagged economics, finance, marketing, newsreports, writing at 5:48 am by carydalton
BRUSSELS — The crisis in Greece brought Europe’s leaders together on one issue Wednesday: The need for emergency action to keep the problem from infecting Europe’s other weak economies. But an accord on who will take the lead — and how — appeared uncertain.
European officials face greater urgency to devise a bailout for Greece after fears its government might default caused a recent slump in financial markets worldwide.
A phalanx of European leaders put on a unified show of support ahead of a Thursday summit meeting in Brussels, where the heads of all European Union governments and the finance ministers of the 16 countries that use the euro are scheduled to appear. Together with the president of the European Central Bank, Jean-Claude Trichet, the officials agreed Wednesday that they could no longer allow uncertainty about the future of Greece — and the euro zone — to disturb global investors.
“The point of no return has been passed,” said one diplomat involved in negotiations over a possible European bailout of Greece. “We have to do something or announce something.”
But some officials said the meeting might achieve little more than a political statement, leaving details to be worked out later by finance ministers.
German officials also insisted that no formal decision had been made.
Stocks on Wall Street fell Wednesday, partly on worries that European politicians may not find a quick resolution to the crisis.
A crucial point in the discussions is whether the government in Athens should be offered loan guarantees or given additional loans to help meet a looming debt payment, or whether there should be a pledge to buy Greek government bonds should the need arise. Investors like the concept of having one or several creditworthy nations, like Germany, guaranteeing the debts of a poorer nation, although such a move would be largely without precedent.
Germany and France are expected to have to take the lead on any emergency solution, especially after European officials rejected allowing Greece to go the International Monetary Fund — which often provides financial aid to emerging markets — for help. Going to the fund is considered a highly undesirable option for any of the 16 countries that use the euro currency. President Nicolas Sarkozy of France and Chancellor Angela Merkel of Germany intend to hold a joint news conference after the summit meeting.
It is “no longer considered an option not to act,” said a French official involved in the talks.
Officials are worried about the “moral hazard” of any Europe-backed solution for Greece: If one country is bailed out by the others, investors will expect a similar response should other weak economies that use the euro, including Portugal and Spain, fall into serious trouble.
And then there are questions about how to apply any commitments so that the weaker governments would be pressured to deliver painful economic overhauls freecreditreport.
The talks, which included a discussion of what steps Greece might be required or even forced to take to deal with its own financial problems, came as Greek citizens demonstrated in protest against austerity measures so far announced by the government, which many market participants think are far from adequate.
“At this junction they will have to support Greece,” Simon Tilford, chief economist at the Center for European Reform, said of Europe’s politicians. “If you have encouraged the markets to believe that support is forthcoming and then it is not, we will see a backlash” in financial markets.
Though Mr. Tilford said the markets would ideally like to see some form of guarantee extended to Greek loans, he added that this would probably be too much for the government in Berlin. The most likely outcome was a loan facility extended on condition that changes were undertaken by the government in Athens. It would also need to apply to other countries facing similar ills.
Jean Pisani-Ferry, director of the Bruegel research institute in Brussels said that whatever officials decide Thursday, it was important to lay out markers — including what assistance they would take, what would activate it and who would provide it — so that markets could understand how aid would be given.
The summit meeting Thursday was called by Herman Van Rompuy, president of the European Council, to try to draw up a longer-term economic strategy for the European Union to modernize its economy by 2020, an agenda that has been overshadowed by the euro zone debt crisis.
Stocks rose across most of Europe on Wednesday, with the euro-zone benchmark Dow Jones Euro Stoxx 50 index gaining 1.2 percent. The euro slipped as conflicting comments from European leaders showed the bloc was still moving hesitantly toward concrete measures. The 16-nation currency traded at $1.3733 late Wednesday in Europe.
Greek government debt rallied for a second consecutive day, with the yield on the government’s benchmark 10-year bond — which spiked as high as 7.2 percent on Jan. 28 — dropping at one point below 6 percent for the first time in a month. Italian, Irish, Spanish and Portuguese bonds also gained. The cost of insuring government debts against default through credit default swaps also fell.
Charles Diebel, head of European rate strategy at Nomura International, said a default was not imminent in Greece. But without European Union support Greek bond yields will rise so high that Athens would find it very difficult to sell debt when it needs to refinance in a few months.
“It’s a question of confidence, not fundamentals,” Mr. Diebel said.
Nicholas Kulish contributed reporting from Berlin.
Europe Agrees to Aid Greece, but Is Unsure of How to Help
Permalink
02.08.10
Posted in .com, money, shortly, top, world of money tagged finance, newsreports, opinion, politics, world at 5:18 am by carydalton
NEW YORK – Betty White plays football, babies talk about “milkaholics” and a house made of Bud Light cans falls slowly apart. It must be the Super Bowl — or at least the advertising showcase that entertains amid the gridiron action.
The commercials from such advertisers as Anheuser-Busch and Coca-Cola got off to a funny start Sunday night on CBS.
Villanova marketing Professor Charles R. Taylor said the light-hearted tone is working this year because the ads still manage to tell people what the brands stand for. That marks a turn from last year, when some ads took a more somber tone amid the still-deepening recession.
Not every commercial was strictly humorous. Automaker Toyota aired several ads before and after the game to reassure worried owners after its recalls connected with accelerator problems.
A commercial by conservative Christian group Focus on the Family, perhaps the most-discussed ad leading up to the game, hinted at a serious subject, although it, too, had a punchline. Heisman Trophy winner Tim Tebow and his mother talk about her difficult pregnancy with him — implying an antiabortion message, because she had been advised to have an abortion for medical reasons — but ended with Tebow tackling his mom and saying the family must be “tough.”
Taylor said he had been disappointed in at least the past five Super Bowls in terms of the effectiveness of ads in connecting with products, but this year he’s pleased. Advertisers pay dearly for the airtime — from $2.5 million to more than $3 million per 30 seconds — and marketers say ads work best when they focus on the product, as well as entertaining.
He cited a commercial by tiremaker Bridgestone featuring men carrying a whale in the back of their truck, and another by Dove launching its new men’s skin-care line. They were winners, he said, because they manage to entertain while telling people about the brands. The ad for Dove tells the story of boy growing into a man and the signal events in a man’s life.
“So far from what I’ve seen I’m quite positively impressed, more than I thought I would be,” he said.
A first Super Bowl ad by Google — which rarely advertises on television — told an affecting story of a budding relationship through a series of Google searches, beginning with “study abroad” and “how to impress a French woman” and ending with “churches in Paris” and “how to assemble a crib personal business card.”
That was one of the few strong ads this year, said Laura Ries, president of marketing consulting firm Ries & Ries outside Atlanta.
She figured people would most likely end up talking about the game between the New Orleans Saints and the Indianpolis Colts — which was close until the waning minutes — rather than ads. Often, it’s the other way around.
“It’s very, very difficult to be entertaining in a place like the Super Bowl and have a connection to your brand,” she said. “The home runs here are few and far between.”
Other highlights include a series of ads by restaurant chain Denny’s, which showed chickens nervous about all the eggs they’d have to lay when the company gives out free Grand Slam breakfasts again this year.
A top topic on Twitter was “green police” — the name of an ad by carmaker Audi pushing its new diesel-fueled vehicle the TDI. Using word play on Cheap Trick’s “Dream Police” — “Green” police officers deal with people making questionable environmental decisions. A man is arrested for choosing a plastic bag at the grocery store, for example.
But not all ads were winners.
Taylor said an ad by Boost Mobile, Sprint’s prepaid cellular phone service, didn’t work because it depended too heavily on the 1985 Chicago Bears’ “Super Bowl Shuffle,” a reference that could be too old for the brand’s buyers.
An ad by Kia for its Sorento SUV will be remembered for its story of a whimsical joyride taken by children’s toys — but people won’t likely remember the brand behind the ad, Ries said.
Celebrities weren’t as plentiful in this year’s Super Bowl. Notable sightings include Charles Barkley rapping for Taco Bell, Betty White and Abe Vigoda playing football for Mars’ Snickers brand and Beyonce for low-price television brand Vizio.
A promotion for CBS’ “Late Show with David Letterman” was memorable because its punchline was spoken by Jay Leno, whose show will again be squaring off with Letterman in the fall.
Letterman, sitting on a couch with Oprah Winfrey, says “This is the worst Super Bowl party ever.”
Leno replies that Letterman’s “just saying that because I’m here.”
Super Bowl ads: Betty White, Bud Light, big laughs
Permalink
02.04.10
Posted in .com, All, Free blog Tips, hot news, shortly tagged economics, events, markets, political, politics at 6:12 am by carydalton
GENEVA – In an embarrassment to Switzerland’s government, the country’s top court said Wednesday that at least $4.6 million in Swiss bank accounts previously awarded to charities must be returned to the family of Haiti’s ex-dictator Jean-Claude “Baby Doc” Duvalier.
The decision was reached on Jan. 12, just hours before the devastating earthquake that struck Haiti, killing at least 150,000 people. The ruling is urelated to the disaster, but the amount of money contested could feed more than a million Haitians for two weeks.
The court’s decision was only published Wednesday, prompting the Swiss government to issue an emergency decree to keep the money frozen in a Swiss bank until a new law can be passed allowing it to be donated to aid groups working in Haiti.
“This is a public relations disaster for Switzerland,” said Mark Pieth, a Swiss professor with a long resume in international corruption cases such as the U.N. oil-for-food scandal.
In the decision, the Federal Supreme Court reversed a lower court’s ruling that the money should have gone to aid groups working in the impoverished nation because the statute of limitations on any crimes committed by the Duvalier clan would have expired in 2001.
Delays are common in Switzerland between court verdicts and their public announcements, but the release of the decision could not have come at a worse time. Beyond depriving Haiti’s relief efforts of additional money, the ruling also strikes a blow at Switzerland’s long-standing efforts to shed its image as an investment haven for the world’s dictators.
“We assume that this money doesn’t belong to the Duvalier family,” said Eveline Widmer-Schlumpf, the Swiss justice minister. “We’ve blocked the money again today to prevent that it goes somewhere that it shouldn’t for political reasons. We really hope that this money finally goes back to the country.”
Many Haitians accuse Duvalier and his entourage of robbing millions from public funds before he was ousted in 1986. Duvalier is believed to be living in exile in France and has always denied wrongdoing.
The decision cannot be appealed, but the Swiss Foreign Ministry said it would try to keep the money from being withdrawn while it works on a better national law for dealing with assets of “criminal origin.” It said the amount of money actually totaled $5.7 million, though the reason for the discrepancy was unclear.
The government “wants to avoid the Swiss financial center serving as a haven for illegally acquired assets,” it said in a statement, adding that a new law working retroactively could be ready this month. Widmer-Schlumpf was less optimistic, but said the law could come into effect as early as 2011.
Switzerland has traditionally been a favorite location for potentate money because of its banking secrecy rules. But reforms over the last two decades have made it harder to hide money in Switzerland, and the country has become a world leader in returning cash.
Virtually all of about $730 million in Swiss accounts linked to the late Nigerian dictator Sani Abacha has been sent back to the African country, while the Philippines recouped hundreds of millions stashed in Swiss banks by late dictator Ferdinand Marcos low cost payday loans.
Problems have nonetheless persisted, particularly linked to the statute of limitations. Last year, the heirs of late Congo dictator Mobutu Sese Seko recovered about $7.4 million, even though Swiss Foreign Minister Micheline Calmy-Rey had promised in 2007 to return the cash to the Congolese government.
Swiss officials gave few details about the new law they hoped to create to make it easier for assets belonging to deposed dictators to be repatriated to national governments. The current rules only allow Switzerland to return cash when asked for by a national government that is pursuing its own criminal investigation — a handicap in countries where amnesty laws, corruption or weak legal systems hinder prosecution of past leaders.
Haiti made its first request for the money in 1986, shortly after Duvalier’s ouster.
But it has been frozen ever since because Switzerland would not give it back while the Haitian government wasn’t pursuing Duvalier under its own justice system. As a way out, the Swiss government had proposed giving the money to aid groups working in Haiti.
“At a time when everyone tries to help Haiti, issuing a decision that the money belongs to the dictator’s family because of the statute of limitations is very clumsy,” Pieth said. “You have a head of state with a secret army that tortures people, and at the same time he empties the state treasury. The people cannot defend themselves. It’s robbing from the people, and this aspect has to be addressed by the court.”
The U.N. says about $2 billion has already been donated to various relief efforts in Haiti. But the country’s long-term problems related to infrastructure, endemic poverty and criminality means more will be needed to stabilize the country.
The $4.6 million may represent only a drop in the bucket, but the U.N. food agency could use it to feed 1.25 million Haitians for two weeks, said spokeswoman Emilia Casella.
The Supreme Court said it was unhappy about the ruling but that its hands were legally tied, forcing it to reverse an August decision that said the Duvalier family had essentially acted as a “criminal organization” by diverting public funds through a Liechtenstein foundation to accounts at UBS AG, Switzerland’s largest bank.
UBS declined to comment, but said the bank and its employees have donated $3 million to Haiti.
The Swiss government’s decision to keep the money blocked is based on an article in the Swiss Constitution giving it the power to issue emergency decrees to protect national interests. Officials wouldn’t explain the move further.
__
Associated Press writers Bradley S. Klapper and Frank Jordans contributed to this report.
Haiti, Swiss gov’t losers in Duvalier cash ruling
Hot News: Civil Madoff-related fraud charges dismissed
Permalink
02.02.10
Posted in .com, hot news, money, online, world of money tagged blogs, economy, events, life, personal at 9:47 pm by carydalton
NEW YORK – Shares of several staffing agencies ticked higher Tuesday after Manpower Inc. posted fourth-quarter results that beat analysts’ expectations, and its CEO said he is confident about the sustainability of an economic recovery.
Manpower said quarterly earnings plunged 62 percent as employers still feared taking on more workers and unemployment continued to hover around 10 percent. Still, the results topped estimates and CEO Jeffrey Joerres said revenue should start to grow in the first quarter for the first time since late 2008.
“(The) CEO’s commentary regarding the recovery was much stronger and more positive than his comments out of Davos last week,” Deutsche Bank analysts wrote in a note to investors Tuesday, referring to the annual World Economic Forum in Switzerland.
The Milwaukee-based company said it’s continuing to see improving trends across its businesses and is more confident that the global economic recovery is sustainable. It also announced it will acquire fellow staffing firm Comsys IT Partners Inc installment payday loans., which provides temporary employees for information technology jobs.
Shares of Manpower Inc. rose $2.08, or 3.9 percent, to $55.24 in afternoon trading.
Other staffing companies also advanced. Shares of Robert Half International Inc. gained 32 cents to $27.19. The owner of Accountemps and OfficeTeam last week reported a 65 percent drop in its fourth-quarter earnings as high unemployment persisted but also still beat Wall Street expectations. The company placed more temporary and more permanent workers in new jobs than it had in the third quarter, providing some evidence of a recovery.
Shares of blue-collar staffer True Blue Inc. added 28 cents, or 2 percent, to $14.47 and jobs Web site operator Monster Worldwide Inc. climbed 35 cents, or 2.3 percent, to $15.94. Kelly Services Inc. rose 24 cents to $13.80.
Shares of staffing cos. rise on Manpower results
Permalink
01.28.10
Posted in .com, All, money, news, online tagged All, events, marketing, markets, political at 11:00 am by carydalton
HONG KONG (MarketWatch) — Bank of China said Thursday it may sell additional shares in Hong Kong even as it moves ahead with a 40 billion yuan ($5.9 billion) convertible bond sale, moves designed to ensure it meets capital adequacy ratios.
Asian Shares Mostly Up After Fed Announcement
Asian markets rise after a modest rise on Wall Street, and the Fed’s more upbeat assessment on the economy. Dow Jones Newswires’ Leslie Shaffer reports.
Bank of China said in statement filed with stock market regulators in Hong Kong that the fund raising is designed to help the bank maintain a capital adequacy ratio of at least 11.5% in 2010 and 2011.
The bank was the most aggressive in terms of issuing new loans last year, responding to Beijing’s order to help prop up the economy.
In total, Chinese banks extended 9.6 trillion yuan in 2009, nearly double levels from a year earlier.
Beijing has targeted an additional 7 car loans for people with bad credit.5 trillion yuan in new lending this year, stoking concerns that the institutions will need to raise funds to ensure they stay within regulatory requirements.
Bank of China said in a statement on Thursday that the timing of the Hong Kong equity sales would depend on market conditions, regulatory approvals and other factors.
The bank’s capital adequacy ratio may have slipped to below 11% at the end of December, down from 11.6% at the end of September, according to a report by Dow Jones Newswires Thursday, which cited unidentified analysts.
China Merchants Securities research estimates Bank of China will need to raise about 60 billion yuan in addition to the planed 40 billion yuan convertible bond to maintain an 11.5% capital adequacy ratio, the report said.
Bank of China may issue more HK-listed stock
Permalink
01.27.10
Posted in .com, economic, news, shortly, world of money tagged economics, financial, money, people, world at 8:00 am by carydalton
SAN FRANCISCO – Williams-Sonoma says its longtime chief, Howard Lester, will retire from the posts of CEO and chairman after 31 years leading kitchenware retailer.
After his retirement in May, Lester will continue to be an adviser to the company until December 2012 as chairman emeritus, Williams-Sonoma Inc. said Tuesday.
Lester has run the San Francisco company since 1978, when he bought it from founder Chuck Williams and it had four retail stores no fax pay day loans. It now has more than 600 stores in the U.S., Canada and Puerto Rico; it also owns the upscale Pottery Barn and West Elm housewares chains.
The company’s board plans to appoint Laura Alber its new CEO. She joined the company in 1995 and is now president.
Williams-Sonoma says longtime CEO Lester to retire
Permalink
01.24.10
Posted in .com, All, business, economic, online tagged finance, life, personal, politics, world at 3:36 pm by carydalton
Wall Street tumbled for a third day on Friday as a three-day slide pushed the markets down almost 5 percent. For the Dow, Friday was the lowest close since early November.
For a second day, shares declined on concerns about President Obama’s proposal for tighter restrictions on the activity of banks as the markets finished the week with a three-day losing streak.
The president on Thursday proposed to ban banks with federally insured deposits from casting risky bets in the markets, and to resist further consolidation in the financial industry — moves the caught bankers and traders by surprise.
In response, the Dow Jones industrial average fell more than 200 points on Thursday. Declines in Asian and European markets followed and then carried over a second day Wall Street. Concerns of earnings sent shares lower on Wednesday.
At the close, the Dow Jones industrial average was down 216.90 points, or 2.1 percent, at 10,172.98. The broader Standard & Poor’s 500-stock index fell 24.73 points or 2.2 percent, to 1,091.75, while the technology-heavy Nasdaq composite fell 60.41 points or 2.67 percent, at 2,205.29. For the week, the Dow was down about 4.1 percent.
Quincy M. Krosby, a markets strategist at Prudential Financial, said investors were also weighing news that Ben S. Bernanke’s confirmation for a second term as chairman of the Federal Reserve faced growing opposition.
“What they’re sensing is this has taken on a political visceral momentum,” Ms. Krosby said. “They makes them hesitant about the future of the banking system.”
As they did on Thursday, financial shares led the decline. On Wall Street, shares of Morgan Stanley declined 6.3 percent; Goldman Sachs dropped 5.2 percent; Bank of America, 4.5 percent; and Citigroup, 1 percent. In Europe, Barclays lost 6 percent. UBS of Switzerland was off 5.1 percent, while Santander of Spain gave up 3 percent.
“There’s no doubt that there will be a significant amount of regulation in the banking industry in the next year,“ said Henk Potts, equity strategist at Barclays Wealth in London. “But there’s a long road to travel and lots of discussions and negotiations before we find out exactly what this will entail no fax payday loan.”
Questions about the banks, analysts said, could push the markets into another period of uncertainty.
Other analysts saw President Obama’s announcement of tighter banking rules was taken as a sign that government leaders are looking beyond the financial crisis.
“It’s clear that politicians are starting to have enough confidence that the global economy has been saved and are starting to try to find ways of paying the bills,” analysts at Deutsche Bank said Friday in a research note. “The risk is that they do this too early and the timing of this announcement is unfortunate given it coincides with the escalation of problems in peripheral Europe and in a week where China has effectively tightened policy.”
The comments about peripheral Europe were a reference to the budgetary problems in Greece that have rattled bond markets here.
Earnings from two companies helped to offset some of the declines. General Electric topped expectations despite a 19 percent drop in fourth-quarter income. For the quarter, G.E. posted net income of $2.94 billion, or 28 cents a share. That compared with $3.65 billion, or 35 cents, a year earlier.
And the fast-food restaurant chain, McDonald’s said fourth-quarter profit was $1.22 billion, or $1.11 a share, up from $985.3 million, or 87 cents a share, a year earlier. The company said sales overseas had helped to offset a weakness in American sales. G.E. shares were up 1 percent and McDonald’s rose 0.35 percent.
Markets in Europe were also lower. In London, the FTSE 100 was down 32.11 points or 0.6 percent, and the DAX shed 51.65 points, or 0.9 percent, in Frankfurt.
In Asia, the Nikkei 225 index, Japan’s leading market gauge, led the region’s declines with a drop of 2.56 percent. The Shanghai composite index in mainland China fell nearly 1 percent, while the Hang Seng index in Hong Kong dropped 0.6 percent, with the international banks Standard Chartered and HSBC both down.
Bettina Wassener reported from Hong Kong and Matthew Saltmarsh from Paris.
3-Day Slide Sends Markets Down About 5 Percent
Hot News: Report: Barclays to defer bonuses
Permalink
« Previous entries