03.18.10
Posted in All, Free blog Tips, news, online, world of money tagged news, opinion, politics, reviews, work at 6:06 am by carydalton
NEW YORK (MarketWatch) — John Thain won a reputation on Wall Street as Mr. Fixit.
He was known for rebuilding the New York Stock Exchange after the controversial reign of Richard Grasso and selling Merrill Lynch & Co. at a premium to Bank of America Corp.
CIT Group Inc. is a different challenge altogether. Thain, on Wednesday, laid out the dire situation: CIT’s book value, $41.99 a share, is at a premium to its stock price by 16%. The lender lost $3.8 billion in 2009. Thain’s is struggling with personnel. He’s trying to beef up the senior ranks. See full report on Thain’s discussion of CIT.
“We’re going to have to focus on that debt structure to get ourselves in a position where the funding costs are more in line with our businesses,” Thain said.
CIT’s model of lending to small- and medium-sized businesses and then repackaging that debt is as broken as the debt market on which it depends. The company did report a fourth-quarter profit of $3.15 billion after it emerged from bankruptcy at the end of last year, but without bankruptcy, CIT would have lost $1 billion and some analysts believe the company will lose money in 2010 business card templates.
If there is little confidence in CIT, there is confidence in Thain. CIT shares added 4% in early trading Wednesday after Thain hosted his first conference call with investors. He said credit quality is improving at CIT. Charge-offs improved to 4.77% of finance receiveables in the final quarter of 2009, about half the level of the previous quarter. See WSJ story on CIT credit provisions.
Ultimately, Thain will have to convince the market that CIT’s $46.1 billion in finance and leasing assets are solid. The quality of the assets needs to be established. And Thain seems to be getting an initial break from the market even though his record at Merrill in disclosing bad assets is dubious.
Thain has a measure of confidence for now, but ultimately CIT’s business model, not the CEO, will make or break the company’s fortunes.
- David Weidner
MarketWatch First Take: Thain has no magical fix for CIT
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03.14.10
Posted in .com, All, Free blog Tips, shortly, world of money tagged economics, economy, financial, marketing, reviews at 10:06 am by carydalton
LONDON (Reuters) – The euro zone has agreed a multi-billion euro bailout for heavily indebted Greece as part of a package to support the euro, the Guardian newspaper reported on Saturday.
The 16 euro zone members have agreed on "coordinated bilateral contributions" in the form of loans or loan guarantees to Greece if Athens is unable to refinance its debts and asks the European Union for help, the Guardian quoted a senior European Commission official as saying.
The agreement was reached despite strong resistance by Germany, and Berlin has played the pivotal role in organizing the deal, the paper quoted other sources as saying.
Euro zone finance ministers will finalize the package on Monday, the paper said.
The aid to be made available by the bailout could reach 25 billion euros, the paper quoted its sources as saying. Greece's borrowing needs for the whole of 2010 total 53.2 billion euros.
Greece, laboring under a crippling debt burden, announced a 4.8 billion euro package of austerity measures last week designed to reduce its budget deficit to 8.7 percent of GDP this year from 12.7 percent in 2009.
It has been paying a high premium over benchmark European bonds to raise funds, the yield spread of 10-year Greek government paper over bunds topping 400 basis points in January.
The bailout "will be a coordinated approach of bilateral contributions … a bilateral contribution can be a loan or a loan guarantee. The guarantees will facilitate the kind of funds potentially needed in this context," the paper quoted the senior Commission official as saying auto loans.
The agreement has been tailored to avoid breaking the ban, in the rules governing the operation of the euro currency, on a bailout for a country on the brink of bankruptcy, and to avoid a challenge by Germany's supreme court, the official said.
The Commission is also rushing through tougher rules for the euro zone to set up rigorous "budgetary surveillance" of the 16 member states, the Guardian said. Greece has in the past provided the European Union with misleading economic statistics.
"The Greek case is a turning point for the euro zone," the Guardian also quoted EU Economic and Monetary Affairs Commissioner Olli Rehn as saying in an interview with it and other European papers.
"If Greece fails and we fail, this will do serious and maybe permanent damage to the credibility of the European Union. The euro is not only a monetary arrangement but a core political project of the European Union … in that sense we are at a crossroads."
Rehn said he would propose next month a regime of "rigorous surveillance of national budgets" including giving Eurostat, the EU statistics agency, big new auditing powers over the accounts of euro zone member states.
(Reporting by Tim Pearce)
Euro zone agrees bailout for Greece: report
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03.12.10
Posted in business, economic, money, shortly, world of money tagged marketing, opinion, personal, politics, reviews at 3:18 pm by carydalton
NEW YORK (MarketWatch) — Weighing in at 2,200 pages, the court-appointed examiner in the Lehman Brothers Holdings Inc. bankruptcy case performed the kind of due diligence that was sorely lacking at the failed firm.
No one, it seems, escaped the gaze of Anton Valukas, the chairman of the law firm Jenner & Block, who spent $30 million on the post mortem. Valukas states Lehman executives manipulated the balance sheet, withheld information from the board, and inflated the value of toxic real estate assets. See report on possible legal claims from the case.
The voluminous detail of the report vindicates some and castigates others. Here are the major verdicts:
Guilty: Dick Fuld, Erin Callan.
The CEO and chief financial officer of Lehman, respectively, are painted by the report as either dubious or overmatched by the complex nature of Lehman’s holdings. Callan, is alleged to have ignored warnings from the firm’s financial controller about the use of Repo 105s, the internal term used to move assets off the balance sheet and hide debt.
WSJ’s Deal Journal received this response from Fuld’s attorneys: “Mr inferred heaters. Fuld did not know what those transactions were — he didn’t structure or negotiate them, nor was he aware of the accounting treatment.”
As if that looks any better.
Not guilty: David Einhorn, short sellers, counterparties, Matthew Lee.
David Einhorn, the head of the hedge fund Greenlight Capital, argued that Lehman was hiding its balance sheet problems for months and took a lot of heat from Lehman as a result. Likewise, Fuld liked to blame the firm’s sagging fortunes in the summer of 2008 on short-sellers such as Einhorn.
The Valukas report shows they made the right bet. Counterparties including as J.P. Morgan Chase & Co. soon followed, and as the report suggests, rightfully so.
History also would look favorably on Matthew Lee, a senior vice president, who in June 2008 warned management and auditors. Only to be ignored.
— David Weidner
MarketWatch First Take: Lehman’s guilty and not guilty
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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
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03.08.10
Posted in business, economic, news, shortly, world of money tagged finance, life, markets, news, reviews at 7:06 pm by carydalton
LISBON, Portugal – Portugal announced new austerity measures Monday to avoid a debt crisis like the one engulfing Greece, cutting welfare benefits and government hiring as well as selling assets and raising taxes on the well-off.
The announcement comes two days ahead of a bond issue in which Portugal will try to raise euro750 million ($1.02 billion). Greece was able to tap bond markets last week after also announcing more deep cutbacks to shore up its finances.
The two countries’ troubles have fueled a Europe-wide debt crisis that has undermined the euro and led the European Union to consider setting up a new European monetary fund to help support the euro.
Portugal aims to raise euro6 billion ($8.2 billion) from privatizations, trim welfare benefits and slash other state expenditure in an effort to reduce the country’s heavy debt load, Finance Minister Fernando Teixeira dos Santos said.
The measures are part of a four-year austerity plan devised to convince financial markets and other eurozone countries that Portugal has its finances in order.
The plan “rests, essentially, on a reduction in public spending,” Teixeira dos Santos told a news conference.
Portugal’s budget deficit is projected to have hit a record 9.3 percent of gross domestic product last year, prompting fears it could face similar problems to Greece where a budget crisis has brought violent demonstrations, rattled the European Union and undermined the 16-country euro currency, of which Portugal is a member.
Portugal’s public debt is expected to climb to 85.4 percent of GDP this year, up from 76.6 per cent in 2009, and Teixeira dos Santos said he predicts it will peak at 90.1 percent of GDP in 2012 before falling back.
Teixeira dos Santos said he expected the privatizations over the next four years to bring revenue equivalent to 3.6 percent of Portugal’s gross domestic product.
The center-left Socialist government also wants to keep annual pay hikes for state employees below the rate of inflation up to 2013, cut welfare benefits and scrap some tax breaks personal business card.
Teixeira dos Santos said he would create a new tax rate of 45 percent for people earning more than euro150,000 ($205,000) a year and raise the ceiling on entitlements for tax breaks, but otherwise he ruled out tax increases.
“We are focussing on reducing spending and avoiding tax hikes,” Teixeira dos Santos said.
Planned spending on new military equipment projected for the next four years will be cut by 40 percent, and a plan to build a high-speed rail link to Spain will be postponed for at least two years.
The minority government was consulting Monday with opposition parties over the plan, though it has not said whether the measures will be put to a vote in Parliament.
The government has included some of the the planned austerity measures, including a contested pay freeze for civil servants, in its 2010 state budget, which parliament is expected to approve on Friday. The budget was delayed by a general election last year.
State spending cuts will be across the board, Teixeira dos Santos said. About 75 percent of current expenditure goes on salaries and welfare policies.
He said that increasing pay by less than the inflation rate would cut the state’s wage bill to 10 percent of GDP from just over 11 percent.
Staffing levels will be cut by allowing one new employee to be hired for every two that leave the civil service.
The government also wants to reduce outlays on welfare by 0.5 percent by 2013 by trimming benefits. Temporary measures introduced in recent years to ease the effects of the economic downturn, including financial help for companies hiring new workers, will be phased out.
The government is also expecting some relief from an improving economic growth rate which Teixeira dos Santos said is forecast to reach 1.7 percent in 2013.
The government estimates the economy contracted 2.7 percent last year. It predicts growth of 0.7 percent this year.
Portugal adds austerity measures
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03.02.10
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
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02.27.10
Posted in hot news, money, news, online, top tagged blogs, campaign, politics, reviews, work at 6:36 pm by carydalton
NEW YORK (Reuters) – Consumer sentiment was weaker in February, as Americans grew more impatient with the government's gridlock over efforts to stimulate jobs, a survey released on Friday showed.
While not fearful of another spike in layoffs, consumers have turned more gloomy about their job and income prospects, according to the Thomson Reuters/University of Michigan's Surveys of Consumers.
"Consumers have been getting more impatient with the slow progress of the stimulus program, and confidence in the Obama administration's economic policies has begun to wane," Richard Curtin, director of the surveys, said in a statement.
The survey's overall index of consumer sentiment was at 73.6 in February, down from 74.4 in January and below the 74.0 forecast by analysts polled by Reuters. The preliminary February reading was 73.7.
The gauge of current economic conditions was at 81 personal humidifier.8 for the month, up from January's reading of 81.1. This compares with 84.1 in the preliminary figures and 82.0 predicted by analysts.
The survey's barometer of consumer expectations weakened to 68.4 in February from 70.1 in January. It fell short of the 69.9 forecast by analyst but it did improve from the preliminary figure of 66.9.
The index of consumers' 12-month economic outlook fell to 80 from 84 in January, but it was up from 79 in early February.
The survey's 1-year inflation expectations eased to 2.7 percent in February from 2.8 in January, while the five-to-10-year inflation measure slipped to 2.7 from 2.9 a month ago.
(Reporting by Richard Leong and Caroline Valetkevitch, Editing by Chizu Nomiyama)
Consumer sentiment weakens in February
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02.16.10
Posted in All, money, news, shortly, world of money tagged economics, financial, opinion, political, reviews at 10:48 am by carydalton
LONDON (Reuters) – Consolidation is needed in the global oil refining sector, the chief economist of BP Plc (BP.L) said on Monday, indicating more tough decisions ahead for an industry beset by poor margins.
Oil companies including BP and Royal Dutch Shell (RDSa.L) have reported billions of dollars of losses from their refining business in the fourth quarter 2009 as the economic crisis hit fuel demand.
"To put it bluntly and shortly, there will have to be some consolidation in the global refining industry," BP's Christof Ruehl said at the IP Week oil and gas industry conference.
Oil refiners faced a double blow in 2009 when world demand for fuel fell because of recession just as a host of new refining projects planned during the boom years came on stream, squeezing margins.
Additions to global oil refining capacity in 2009 were the highest in 30 years, Ruehl estimates.
Shell is looking to divest 15 percent of its global refining. U.S. rival Chevron (CVX.N) plans to close some of its refineries but has yet to say where.
The BP official said so-called simple refineries — without the capacity to convert heavy oil products into lighter fuels such as gasoline — would be most likely to close. Still, it was not simply a matter of closing plants for good.
"This is most likely to be not just about permanent shutdowns — it's about mothballing, running down crude runs, changing configurations," he told reporters.
DISADVANTAGE
Refineries in developed markets will be at a disadvantage compared with those in emerging markets, where governments often subsidies fuel prices, BP's Ruehl said payday loans.
"You would expect the impact on refiners to be worse in countries where there is no protection," he said.
Ruehl said he expected global refining utilization rates to fall in 2010.
Oil demand in developed OECD countries has peaked, according to BP and some other forecasts, while consumption is still expected to rise in emerging economies, such as China, for the foreseeable future.
Ruehl said he expected oil majors to seek acquisitions in China and other parts of Asia.
"These are the growing markets," he said.
An Exxon Mobil (XOM.N) executive attending the conference said the company was always reviewing the profitability of its assets worldwide, but any sale of the Exxon's Fawley refinery in the UK was not on the agenda.
"We continue to look at the economics of our operations around the world," Brad Corson, chairman of Exxon Mobil International, said when asked if the company planned any refinery sales.
"We currently have the largest refinery in the UK, Fawley refinery. We pride ourselves on being one of the most cost-effective refineries in the European region and as such we have no imminent plans in that regard."
(Editing by James Jukwey)
Global oil refining sector needs consolidation: BP
Hot News: China Sees Growth Engine in a Web of Fast Trains
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02.15.10
Posted in All, Free blog Tips, economic, hot news, news tagged All, business, money, politics, reviews at 1:42 am by carydalton
ANCHORAGE, Alaska – Rain, low clouds and predicted high winds Sunday grounded searchers seeking the body of a ConocoPhillips Alaska employee missing and presumed dead in an avalanche that killed the head of the company.
The avalanche at around noon Saturday on the Kenai Peninsula buried Jim Bowles, 57, head of ConocoPhillips Alaska, and Alan Gage, 39, part of the company’s capital projects team in Anchorage. Gage remains missing.
“The weather is not cooperating and it’s not conducive to search,” said Megan Peters, a spokeswoman for the Alaska State Troopers.
The men were in a party of 12 snowmobilers in the Grandview wilderness area, part of the Chugach National Forest, between the tiny communities of Moose Pass and Portage.
Bowles was buried for about 45 minutes before companions using avalanche beacons dug him out. He was pronounced dead at the scene.
Gage apparently was not wearing an avalanche beacon, troopers said.
Troopers and U.S. Forest Service personnel rode snowmobiles 15 miles to reach the scene. The railroad brought in Girdwood Fire Department personnel and a trooper helicopter flew in from Anchorage.
Ridgetop winds Saturday averaged 10 to 20 mph and mountain temperatures were in the mid-20s to low 30s. Conditions deteriorated overnight, with two inches of new snow falling at Turnagain Pass, about 15 miles north of Grandview.
Ridgetop winds Sunday ramped up, averaging 30 mph with gusts to 40. A strong low pressure area in the Gulf of Alaska was expected to bring gale to storm force easterly winds, rain at sea level, and up to 12 inches of new snow at higher elevations.
The Chugach National Forest Avalanche Information Center said the avalanche danger rose to “considerable” with pockets of “high” hazard as the storm progressed.
“We pretty much hit the tipping point the last few days, and this next storm will just add more stress to a snowpack with significant buried weak layers,” said forecaster Lisa Portune on the center’s Web site free credit scores.
Forecaster Carl Skustad said the snowmobile party was in moderate terrain, with probably a 35 to 40 degree slope. However, with the weak snow layer underneath, that can be enough for snow to let loose, he said.
Emergency officials said a search would resume when weather improved and avalanche danger subsided.
Bowles joined Conoco in 1974. He was named head of Alaska operations, overseeing about 900 employees since in late 2004. Jim Mulva, ConocoPhillips chairman and chief executive officer, said in a statement Sunday that Bowles presided over developments that ensured the company’s place and standing in Alaska.
“On behalf of everyone at ConocoPhillips, including those who had the privilege to know and work with these two gentlemen and those who did not, I want to extend our sincere condolences to the Bowles family and our heartfelt best wishes to the Gage family and make sure they know the high regard in which we hold Jim and Alan, both as co-workers and as friends.”
Gov. Sean Parnell issued a statement saying he and his wife, Sandy, were saddened by Bowles’ death and lauded his work in Alaska.
“Jim brought so much to our state: his love of the great outdoors, his leadership of ConocoPhillips Alaska, and his dedication to making Alaska a better place for all of us to call home,” Parnell said.
U.S. Sen. Lisa Murkowski, R-Alaska, said Bowles was a great partner in the responsible development of Alaska’s natural resources.
A third man was caught in another avalanche and killed Saturday near Eagle River on Anchorage’s north side.
William Brasher Schorr, 60, was skiing alone near the top of a ridge while a friend waited near the bottom for his arrival. A witness saw the slide begin from his home. Schorr’s body was recovered about 45 minutes later.
Weather halts Alaska search for avalanche victim
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01.10.10
Posted in .com, money, shortly, top, world of money tagged financial, opinion, people, personal, reviews at 12:06 am by carydalton
Don’t miss these top stories:
Your January tax to-do list
The IRS is too busy to talk
Estate-tax repeal affects spouses
Taxpayers got some good news this week: At long last, the IRS said it will regulate tax preparers, including the big companies like H&R Block and Jackson Hewitt and the small storefront shops that pop up this time of year. While certified public accountants, tax attorneys and enrolled agents already are subject to professional standards, hundreds of thousands of tax preparers haven’t been regulated at all, until now.
So, yes, overall that’s good news. But there are a few things that could stand improvement. For one, the new rules — including passing a competency exam and taking continuing-education classes — don’t go into effect until 2011. You’re on your own this year to make sure you find a competent professional.
Also, the new rules don’t cover online and store-bought software products — a huge and growing portion of the tax-preparation field.
And, as some commentators pointed out this week, regulating tax preparers is just a symptom of a very deep problem: the extreme complexity of the U.S. tax code. If the rules weren’t so complicated, we wouldn’t have to pay someone else to try to figure it out for us. And we wouldn’t have to hope and trust that they get it right. Keep in mind that no matter who does your taxes, the IRS considers you, the taxpayer, responsible for getting it right, not the preparer.
But hey, we’ll take what we can get. I for one am glad to hear that preparers will be required to update their education. Given lawmakers’ penchant for fiddling with the tax code, I’m not sure how you could be a tax practitioner without continuing classes.
Enough of that. It’s January, and MarketWatch is here to help you through the tax season ahead. Taxing Times goes back to its weekly schedule starting today, arriving in your inbox every Friday through tax season. Check out Eva Rosenberg’s story today on what you need to do this month to make sure you’re all set come April.
— Andrea Coombes, assistant personal finance editor
Tax moves to make in January
The tax laws are still in flux. We’re waiting for the estate-tax law to be written, and Form 5405 for the home-buyer’s credit isn’t ready yet. To top it off, IRS started the year by announcing a major step-up in enforcement of tax preparers. This is going to be an interesting tax season. Are you ready? See TaxWatch.
IRS too busy to talk, watchdog says
An expanding slate of duties is stretching the Internal Revenue Service too thin, leading to poor customer service and undermining its ability to collect taxes, a government watchdog said Wednesday. See full story.
Estate-tax repeal means some spouses are left out
Spouses of those wealthy who die this year might find themselves with nothing if the family will isn’t revised–a major wrinkle that could follow Friday’s repeal of the federal estate tax guaranteed payday loan. See full story.
Workers get lower mileage rate in 2010
Millions of workers who use their cars for work will get a smaller tax deduction next year. Under tax rules, they can choose to deduct their actual expenses, or they can use the Internal Revenue Service’s optional standard mileage rate. Using the IRS rate generally is simpler and saves recordkeeping hassles. See Tom Herman’s Tax Report.
CONVERTING TO A ROTH IRA Avoid these Roth IRA conversion mistakes
As years go, 2010 is on course to be a blockbuster for retirement-account owners. Starting in January, all Americans who own a traditional IRA — not just those who have modified adjusted gross income under $100,000 — will be able to convert their accounts to a Roth IRA. But don’t rush for the doors just yet. There’s plenty of slip between cup and lip waiting for those unaware of the conversion mistakes to avoid. See Robert Powell.
Tips for converting IRA assets to Roth
When considering converting investments to a Roth IRA from a traditional individual retirement account, past performance is less important than what you anticipate in the future. See full story.
POLITICS AND TAXES ‘Carried-interest’ tax gains traction
The “carried-interest” tax debate has re-emerged in Congress, threatening to more than double taxes on some of the country’s wealthiest individuals–private-equity and hedge-fund managers. See full story.
Biodiesel industry stunted as tax credit expires
The biodiesel industry is revving up efforts to reinstate the U.S. biodiesel tax credit, warning that as many as 23,000 jobs could be at risk if lawmakers don’t revive the program that expired on Jan. 1. See full story.
TAX TIPS FROM BANKRATE 10 astute tax moves in 2010
To put the struggling economy back on track, Congress has passed several new tax laws in recent years. The good news is some tax breaks will still be around in 2010 while new ones are in the works. Here are 10 tax laws that could help you lower your IRS bill in the New Year. See full story.
2009 exemption amounts
You can take an exemption deduction for yourself, your spouse and each dependent you claim. On 2009 returns, this exemption amount is $3,650 per person. Some taxpayers, however, will see their personal exemption amount reduced if they make over a certain limit that is adjusted annually for inflation. See full story.
10 key tax terms to know
One of the hardest things about taxes is learning the language. You’ve got all the forms and instructions, but it seems they’re harder to decipher than that first lesson in your high school Latin class! Here are 10 key tax terms to help you start talking taxes. See full story.
Taxing Times: Good news for taxpayers, but don’t celebrate yet
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01.05.10
Posted in Free blog Tips, business, money, top, world of money tagged business, economics, news, opinion, reviews at 1:54 am by carydalton
SAN FRANCISCO (MarketWatch) — Japanese financial services firm Orix Corp. plans to invest some 300 billion yen ($3.2 billion) in Chinese firms providing financial and infrastructure services over the next three years, in a bid to tap into that country’s surging economy, according to a report Tuesday.
The Nikkei business daily reported that Orix will set up a holding company this month to oversee its investments in China, and will seek to profit from taking small local firms public.
Orix will take a roughly 15% stake in a tourism and real-estate firm as its first China deal, Nikkei reported.
Each investment is expected to total between 5 billion and 10 billion yen, the report said, adding that Orix will both procure funding from local financial institutions and set up funds to solicit capital from outside investors savings account payday advance.
The establishment of an investment fund marks Orix’s first direct entry into Chinese investment operations, Nikkei reported.
Shares of Orix rose 3% in the early minutes of Tuesday trading in Tokyo.
Orix reportedly to make major investments in China
Hot News: Novartis Buys Majority Stake in Alcon
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01.03.10
Posted in .com, hot news, online, shortly, world of money tagged economics, finance, opinion, personal, reviews at 6:35 pm by carydalton
NEW YORK – The stock market closed out a remarkable 2009 with a loss as investors bet the improving economy will lead the government to pull back on its stimulus measures. But stocks still managed their best year since 2003 as they recovered from the financial crisis and recession.
Thursday’s trading, which came on extremely light pre-holiday volume, was a fitting end to a tumultuous year. Stocks fell to 12-year lows by early March on investors’ increasing pessimism, then rallied on growing signs of recovery in what turned out to be Wall Street’s biggest comeback since the Great Depression. In the last day of the year, more signs of healing first pleased investors, then had them concerned about the economy’s ability to thrive without government help.
The thin volume exaggerated the market’s moves. The Dow Jones industrial average fell 120.46, or 1.1 percent, to 10,428.05. For the year, the Dow rose 1,651.66, or 18.8 percent.
The broader Standard & Poor’s 500 index, considered by professionals to be the market’s best barometer, fell 11.32, or 1 percent, to 1,115.10. The S&P ended the year with a gain of 211.85, or 23.5 percent.
Meanwhile, the Nasdaq composite index fell 22.13, or 1 percent, to 2,269.15. Powered by the recovery in high-tech stocks, the Nasdaq ended 2009 with a gain of 696.12, 43.9 percent.
The full-year stats are dwarfed by the indexes’ recovery from the depths of last March, when they hit bottom. The Dow rose 3,881.00, or 59.3 percent from its March 9 close, while the S&P 500 rose 438.57, or 64.8 percent, and the Nasdaq regained 1,000.51, or 78.9 percent.
News that weekly unemployment claims fell to the lowest level since July 2008 gave stocks an initial blip Thursday, but the market gave back the gains as traders took some profits to close out their books.
Joe Saluzzi, co-head of equity trading at Themis Trading LLC, said the light volume made it hard to read much into the day’s move. However, he said the improved jobs figures stirred speculation that the government would be forced to withdraw supports for the economy such as low interest rates, which could fan inflation.
“How can they justify more stimulus if now you’re in a growing economy,” he said. “The question becomes can the U.S. economy really support itself without the assistance of the U.S. stimulus. My gut says no.”
The Labor Department said new claims for unemployment benefits fell by 22,000 to a seasonally adjusted 432,000 last week. Analysts had expected claims would rise. The number of workers continuing to seek unemployment benefits fell by 57,000 to 4 easy payday loans.9 million. Analysts predicted an increase.
Many investors believe that the stock market, which has had its best year since 2003, has seen the best of its gains for a while. So many of those working Thursday were moving money out of some stocks.
“Everyone is looking to put a ribbon on the year and wrap things up,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
Ablin said investors will be looking at upcoming corporate profit reports and jobs numbers to determine whether the market can hold its huge gains in 2010.
“I have a certain belief that the market can keep going, albeit at kind of a shallower pace, but that’s going to require some help from corporate America and the economy itself,” he said.
Two stocks fell for every one that rose on the New York Stock Exchange, where volume came to an extremely light 2.23 billion shares, down from Wednesday’s 2.37 billion.
Most bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.84 percent from 3.79 percent late Wednesday. The 10-year yield began 2009 at 2.22, a reflection of investors’ high anxiety and need for the safety of government debt.
The dollar, whose decline this year has helped feed the rally in stocks, was mostly lower against other major currencies Thursday. Gold, which has soared in response to the falling dollar and investors’ greater appetite for commodities in general, closed at $1,096.20 on the New York Mercantile Exchange after reaching a record high of $1,227.50 on Dec. 3.
Light, sweet crude rose 8 cents to settle at $79.36 per barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies fell 8.02, or 1.3 percent, to 625.39. It ended the year with a gain of 25.2 percent.
Overseas, Britain’s FTSE 100 rose 0.3 percent, while France’s CAC-40 rose less than 0.1 percent. Markets in Germany and Japan were closed.
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The Dow Jones industrial average closed the week down 92.05, or 0.9 percent, at 10,428.05. The Standard & Poor’s 500 index fell 11.38, or 1 percent, to 1,115.10. The Nasdaq composite index fell 16.54, or 0.7 percent, to 2,269.15.
The Russell 2000 index, which tracks the performance of small company stocks, fell 8.68, or 1.3 percent, for the week to 625.39.
The Dow Jones U.S. Total Stock Market Index — which measures nearly all U.S.-based companies — ended at 11,385.11, down 237.70, or 2 percent.
Stocks fall sharply as investors close out 2009
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01.01.10
Posted in business, hot news, money, news, shortly tagged All, blogs, political, reviews, world at 3:06 am by carydalton
NEW YORK, Dec. 31 (Xinhua) — The dollar was mixed against major currencies on Thursday in the last trading day of 2009 with thin volume.
U.S. initial claims for jobless benefits unexpectedly declined to 432,000 in the week ending December 26, the lowest level since July 2008, the Labor Department reported. Analysts cautioned that it can be difficult to properly seasonal adjust weekly claims at this time of year due to shifts in the holiday calendar.
A series of important economic reports will be released in the first week of 2010, including construction spending, ISM manufacturing and non-manufacturing indexes, motor vehicle sales and the non-farm employment report.
If the reports were as positive as expected, the dollar will continue rising as it decouples from risk sentiment.
For more than a year, there has been a correlation between strong dollar and bad economic news as foreign exchange investors took the dollar as a safety haven currency fast cash without a hassle. The correlation seemed to be fading in the past month amid encouraging U.S. economic data.
In the next week, the Federal Reserve will release the minutes for its latest monetary policy meeting. Investors are closely watching the minutes and a major speech by Fed Chairman Ben Bernanke for any clues about policy outlook of the central bank.
The euro bought 1.4321 dollars in late New York trading compared with 1.4334 dollars it bought late Wednesday. The pound rose to 1.6169 dollars from 1.6069 dollars.
The dollar fell to 1.0473 Canadian dollars from 1.0554 Canadian dollars, and rose to 93.07 Japanese yen from 92.46 Japanese yen. It fell to 1.0356 Swiss francs from 1.0370 Swiss francs.
Dollar mixed against most major currencies
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