Tuesday, January 31, 2012

Grover Norquist on U.S. Tax Code, Romney

ICBC, Agribank, Citic Securities Favored, CCB Says

Feb. 1 (Bloomberg) -- Peter So, co-head of research at CCB International Securities Ltd., talks

Feb. 1 (Bloomberg) -- Peter So, co-head of research at CCB International Securities Ltd., talks about China's stock market, economy, and central bank monetary policy. China?s manufacturing unexpectedly expanded last month on increased new orders, suggesting the world?s second-biggest economy is withstanding Europe?s debt crisis and a government-induced property slowdown at home. So speaks in Hong Kong with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Source: http://www.businessweek.com/video#video=pscGliMzoerkpCLfhW8c1wFgm1AXKYsk

finance news economic news world us news about us business business news news latest news us news key news

Interactive Business Bullet: UK GDP, Eurozone, Vodafone and the MPC's QE vote

Robert Miller with the main City and business news as China's sovereign wealth fund, China Investment Corporation, takes a near-9pc stake in Thames Water after Warren Buffett's vote of confidence in Tesco, but traders are looking ahead to next week's UK GDP figures which could show a small contraction; EU and IMF officials hold week-end talks on restructuring Greece's debt; mobile operator Vodafone celebrates India court victory and a �320m rebate and next week the Bank of England publishes minutes of the Monetary Policy Committee meeting which will throw light on when the next round of QE or asset purchases is due.

Source: http://telegraph.feedsportal.com/c/32726/f/568312/s/1bfe58b0/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C90A271860CInteractive0EBusiness0EBullet0EUK0EGDP0EEurozone0EVodafone0Eand0Ethe0EMPCs0EQE0Evote0Bhtml/story01.htm

key news best news economic news finance news economic news world us news about us business business news news

Greek PM, opposition reach power-sharing deal

, On Sunday November 6, 2011, 6:48 pm EST

ATHENS, Greece (AP) -- Greece's embattled prime minister and main opposition leader agreed Sunday to form an interim government to ensure the country's new European debt deal, capping a week of political turmoil that saw Greece face a catastrophic default that threatened its euro membership and roiled international markets.

As part of the deal, Prime Minister George Papandreou agreed to step down halfway through his four-year term. He and conservative opposition head Antonis Samaras are to meet Monday to discuss who will become prime minister and the makeup of the Cabinet.

The new unity government's main task will be to pass the European rescue package, reached after marathon negotiations between European leaders barely a week ago -- a move considered crucial to shoring up the euro. The interim government will then lead the country into early elections, expected early next year.

Officials had been anxious to reach some form of agreement before a meeting of eurozone finance ministers in Brussels on Monday.

"Of course it's a breakthrough," government spokesman Elias Mossialos said. "It is a historical day for Greece, we will have a coalition government very soon, early next week. The prime minister and the leader of the opposition will discuss tomorrow the name of the new prime minister and the names of ministers."

Papandreou sparked the latest crisis by announcing last week that he was taking the hard-fought debt agreement to a referendum. That outraged European leaders, who said such a vote could raise the specter of Athens leaving the common currency -- setting off an unpredictable chain reaction that could drag down other European countries.

They also warned a vote would jeopardize the disbursement of a vital $11 billion (euro8 billion) installment of Greece's existing $152 billion (euro110 billion) bailout, which the country desperately needs to avoid the potential of a catastrophic default within weeks.

In the ensuing market turmoil, Italy -- which also faces severe financial difficulties, but is considered too big to bail out -- saw its borrowing costs spiral, sparking fears it could be dragged into the fray.

Papandreou withdrew the referendum plan Thursday in the wake of European anger and after it sparked a rebellion among his own Socialist lawmakers, many of whom called for him to resign. The turmoil also pushed the conservative opposition party to publicly declare it would back the debt agreement.

Any interim government that is formed with the support of both major parties will be almost guaranteed to push the European rescue package through parliament, even if it has to be approved by a reinforced majority of 180 of the legislature's 300 lawmakers.

The new European deal would give Greece an additional $179 billion (euro130 billion) in rescue loans and bank support. It would also see banks and private investors write off 50 percent of their Greek debt holdings, worth some $138 billion (euro100 billion). The goal is to reduce Greece's debts to the point where the country is able to handle its finances without relying on constant bailouts.

Greece's lawmakers must now approve the package, putting intense pressure on the country's leaders to swiftly end the political crisis so parliament can convene and put it to a vote.

A planned meeting with the leaders of all political parties in parliament, which was to take place Monday evening, was canceled after two leftist parties refused to attend, the president's office said.

Sunday's agreement came after a late-night meeting between Papandreou and Samaras called by President Karolos Papoulias at Papandreou's request to end a two-day deadlock. Direct talks had failed to get off the ground because Papandreou had said an agreement had to be reached on a new government before he stepped aside, while Samaras insisted Papandrepou resign before the start of negotiations and demanded quick elections.

An opposition conservative party official said Samaras' New Democracy party was "absolutely satisfied" with the outcome of the talks and that party officials were to hold meetings late Sunday night with Finance Minister Evangelos Venizelos and his advisers to discuss how long it would take to finalize the new debt deal and when elections could be held.

"Our two targets, for Mr. Papandreou to resign and for elections to be held, have been met," the official said, speaking on condition of anonymity to discuss the process.

The Finance Ministry said a late-night meeting between Venizelos and opposition party members determined the "most suitable" date for elections was Feb. 19.

Two turbulent years after coming to power in a landslide election victory, Papandreou has seen his popularity plummet as his government has been forced to severely cut spending while hiking taxes to tackle a runaway deficit and debt that led Greece to become the first eurozone country to seek an international bailout.

Ireland and Portugal have since followed suit, but European leaders have been desperate to ensure other countries with larger economies are not also dragged down.

Associated Press writer Nicholas Paphitis in Athens contributed to this report.

Source: http://us.rd.yahoo.com/finance/news/rss/story/*http%3A//us.rd.yahoo.com/finance/news/topfinstories/*http%3A//biz.yahoo.com/ap/111106/eu_greece_financial_crisis.html

about us business business news news latest news us news key news best news economic news finance news

Obama stumps for jobs bill in GOP leaders' turf (AP)

CINCINNATI ? President Barack Obama was marketing his massive jobs proposal Thursday from an outdated bridge that links the home states of his two chief congressional Republican rivals, a symbolic and cheeky maneuver designed to pressure the GOP and convey resolve in the face of a sputtering economy.

Obama was making his pitch for $447 billion in tax cuts, jobless aid and public works projects at the Brent Spence Bridge south of Cincinnati, an aging span that connects House Speaker John Boehner's state of Ohio with Kentucky, home of Senate Republican leader Mitch McConnell.

The politics are clear. White House press secretary Jay Carney gladly conceded that the trip was a symbolic one designed to heap pressure on Boehner and McConnell to rally behind his plan

"We have never suggested that ground would be broken on this project immediately," Carney said. "We're very transparent about why we're going to this bridge: We're going to this bridge because it spans the river that divides two states that are represented by the speaker of the House and the Senate minority leader."

The bridge itself, deemed "functionally obsolete" by the federal government, is already scheduled to be replaced starting in 2015, although Carney argued that passage of the president's jobs bill could speed up that timeline.

McConnell and Boehner, both of whom have supported the bridge project, dismissed the visit as a ploy.

"I would suggest, Mr. President, that you think about ways to actually help the people of Kentucky and Ohio, instead of how you can use their roads and bridges as a backdrop for making a political point," McConnell said on the Senate floor Thursday morning. "If you really want to help our state then come back to Washington and work with Republicans on legislation that will actually do something to revive our economy and create jobs. And forget the political theater."

Added Boehner spokesman Brendan Buck, "We want to work with the president to support job creation, but political stunts and empty promises bring us no closer to finding common ground."

In the very short term, Obama's visit was making traffic on the overloaded 1963 bridge worse, not better. Ohio and Kentucky transportation officials warned motorists to expect long delays around the time of the president's appearance Thursday afternoon because of lane closures and a ramp shutdown. Boehner joked that stopping bridge traffic won't win any votes.

Both Boehner and McConnell declined a White House invitation to attend Thursday's event, because Congress is in session.

Public opinion polls show only about 1 person in 4 approves of Obama's economic performance. The president is seeking to put his differences with Republicans into sharper focus and to shift to his political rivals some of the responsibility for the nation's high unemployment and feeble growth rate.

The president's defiant approach to Boehner and McConnell represents a shift from his outreach to Boehner this summer, when the two men tried to work out a deal that would extend the nation's borrowing authority and cut long-term deficits as well.

Then, the president took Boehner golfing. Now he's taking him to task.

Obama on Monday announced a $3 trillion deficit-reduction package, half of which consists of tax increases. It was a direct challenge to Republicans and Boehner in particular, who last week flatly ruled out tax increases as way to lower long-term deficits.

Obama's visit will be his second to Ohio in two weeks. It's not the first time the president has taken on Boehner in his home state. A year ago, Obama went to Parma, Ohio, just days after Boehner had delivered an economic speech to the City Club of Cleveland. Obama criticized the speaker by name for his policy proposals.

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20110922/ap_on_go_pr_wh/us_obama

world us news about us business business news news latest news us news key news best news economic news

A look at economic developments around the globe (AP)

A look at economic developments and activity in major stock markets around the world Thursday:

___

FRANKFURT, Germany ? A raft of downbeat indicators stoked fears that Europe is on the edge of recession as it grapples with a crippling debt crisis.

The European Commission's index of consumer optimism from the European Commission fell to a two-year low of minus 18.5 in September in the 17 countries that use the euro. Meanwhile industrial orders ? key for Europe's manufacturing driven economy ? slid 2.1 percent in July, according to Eurostat, the EU's statistics office.

___

LONDON ? Mounting evidence that the world economy is slowing down sharply sent global stock markets spiraling down as investors brushed off the U.S. Federal Reserve's efforts to spur growth and focused instead on the central bank's gloomy outlook.

France's CAC-40 was down a hefty 5.3 percent while Germany's DAX slid 5 percent. The FTSE index of Britain's leading shares ended down 4.7 percent.

___

TOKYO ? In Asia, Japan's Nikkei 225 dropped 2.1 percent. South Korea's Kospi slid 2.9 percent. Australia's S&P/ASX 200 was 2.6 percent down.

Hong Kong's Hang Seng saw the biggest fall, diving over 900 points, or 4.9 percent.

In mainland China, the Shanghai Composite Index closed down 2.8 percent.

___

FRANKFURT, Germany ? The departing chief economist of the European Central Bank warned that heavy government debts threatened the existence of the euro currency, and urged the EU to take much tougher steps to force overspending governments back into line.

___

ATHENS, Greece ? Austerity-weary Greeks lashed out against more tax hikes and pension cuts with a new round of strikes, with public transport workers, taxi drivers, teachers and air traffic controllers walking off the job.

___

MADRID ? Spain's Parliament restored a deficit-reducing wealth tax in its final session before dissolving to make way for an election that opposition conservatives are favored to win.

___

TAIPEI, Taiwan ? Taiwan and Japan signed an arrangement to bolster mutual investment despite their lack of formal diplomatic ties.

___

BRASILIA ? Brazil's government statistics agency says the unemployment rate in Latin America's biggest economy was 6 percent in August. That's unchanged from the previous month, but the lowest figure for a month of August since 2002.

___

DUBLIN ? Ireland's economy has grown 1.6 percent in the second quarter, more than expected, and appears on course to exit a three-year recession.

___

PARIS ? The top tier of luxury consumers curbed their spending on high-end clothes, accessories and jewelry in the first half of 2011, while regular consumers picked up the slack for the first time since the 2008 financial crisis, a study by American Express' consulting unit said.

___

Source: http://us.rd.yahoo.com/dailynews/rss/stocks/*http%3A//news.yahoo.com/s/ap/20110922/ap_on_bi_ge/us_economy_countries_glance

economic news finance news economic news world us news about us business business news news latest news us news

Readers' Tips for Financial Renewal, Part 1: Ideas for Smart Saving

Rainy DayA few weeks ago, we asked DailyFinance readers for their best tips for putting your financial house in order. Many were quick to note that the foundation of financial security lies in being ready when disaster hits. With that in mind, here are some of their best suggestions for planning ahead for rainy days -- and making sure your umbrella is big enough.

In 2008, more than 2.6 million people lost their jobs. Some were prepared, but many found themselves raiding savings accounts, selling possessions, and moving out of their dream homes in desperate attempts to get their finances on a firmer footing. As "Frank S." noted, much of that frantic effort could have been avoided with better planning. "Save up to six months in the event you get laid off," he suggests.

Several other readers expressed similar sentiments: "Ray" noted that he has "saved at least 10% of what I have earned since I first began to work in 1971." "DocDearth" suggested going even further: "The more you can afford to save in the way of a percentage of income the better. Between 10% and 15% ... is a good benchmark."

Many of you pointed out that planning for retirement is vital for long-term financial security. To accomplish that goal, some said, they saved all of their bonuses, lived off of only one spouse's income, or maxed out their 401(k) accounts. "DocDearth" puts this especially well, reminding us that we should put money in our retirement accounts before spending on anything else: "The number one rule of financial planning is 'PAY YOURSELF FIRST!!'"

When It Rains, It Pours

But saving can only take you so far. As many readers noted, another vital part of keeping your finances healthy is avoiding the sorts of situations that can decimate them. For example, in 2010 and 2011 20% of people seeking bankruptcy counseling blamed medical bills for their dire financial straits. In 2009, The American Journal of Medicine put the number even higher: According to a study published by the journal, up to 60% of bankruptcies could trace their financial woes to out-of-control health bills.

"Susan S.," who describes herself as a "secret millionaire," takes a proactive approach to the problem: Her simple answer is doing everything she can to avoid getting sick. "You cannot control for all diseases, but keeping yourself as healthy as possible will save on healthcare. Eat your vegetables, exercise, don't smoke or drink to excess, and wear protective equipment such as bike helmets." Also, as many readers noted, even expensive health insurance can be a bargain if a serious medical problem arises.

Divorce is another financial disaster: In the past, it was women who were most often left financially bereft when marriages fell apart, but a rise in divorce judgments against men, combined with increased policing of their child support and alimony payments, has shifted the trend. Today, the percentages of men and women whose economic fortunes take a nosedive when their marriages break up are almost the same.

But while the financial impact of divorce has become more fairly divided, there is no question that the overall cost remains high. "Meek6" advised "Chose a life partner and stay married. Divorce is the biggest loss you can ever have." "David A" echoed the sentiment by telling a bit of his own private story: "My beloved wife and I will be celebrating 34 years together in 2012. Divorce is one of the most costly mistakes you can make to derail your finances."

When it comes to your finances, there are many ways to scrimp and save. However, as DailyFinance's readers note, perhaps the best way to live well is to be prepared when disaster comes knocking.

Bruce Watson is a senior features writer for DailyFinance. You can reach him by e-mail at bruce.watson@teamaol.com, or follow him on Twitter at @bruce1971.

Source: http://www.dailyfinance.com/2012/01/30/readers-tips-for-financial-renewal-part-1-ideas-for-smart-sav/

key news best news economic news finance news economic news world us news about us business business news news

Lakers get last word in LA clash

'; } } document.write(s); return; } google_ad_client = 'ca-money_test_js'; //2008-03-05 : News Internal 300x250 google_ad_channel = "5088647641"; google_ad_output = 'js'; google_max_num_ads = '1'; google_ad_type = 'text'; google_language = 'en'; google_encoding = 'utf8'; google_safe = 'high'; google_kw_type = 'broad'; google_ad_section = 'default'; google_page_url=document.location.href; // -->

Like this story, share it with millions of investors on M3


Like this story, share it with millions of investors on M3

Lakers get last word in LA clash

NBA-LAKERS:Lakers get last word in LA clash

LOS ANGELES (Reuters) - The battle for Los Angeles gained another feisty chapter as the Lakers scrapped to a 96-91 win over the Clippers on Wednesday to reassume inner-city bragging rights.

In a duel that featured a number of technical fouls and skirmishes, Kobe Bryant scored 12 of his 24 points in the fourth quarter as the Lakers flexed their muscles at crunch time.

Pau Gasol added 23 points and 10 rebounds and the Lakers (11-8) ended a three-game skid with a satisfying victory that ended with Bryant and Gasol exchanging heated words with Clippers leader Chris Paul.

"Just a little bit of trash talk, that's all," Gasol told reporters. "It was a good, competitive battle.

The Spaniard gave the Lakers a strong inside presence along with Andrew Bynum, who finished with 19.

The Lakers trailed narrowly for much of the game until Bryant sank a three-pointer midway through the fourth quarter to give the home team their first lead since the opening minute, and they held on to spoil the return of Paul.

Paul, whose off-season trade to the Clippers turned them into a legitimate rival of the Lakers, looked rusty after missing five games with a hamstring injury and finished with four points and 12 assists.

He was originally injured in a Clippers' victory over the Lakers on January 14 which signaled their arrival as a threat to their storied neighbors.

This time, the Clippers (9-6) fell back despite leading by nine early in the third and getting 26 points and nine rebounds from Blake Griffin, including several rim-rattling dunks.

They closed within three points to start the fourth, and after Bryant scored eight straight points in the fourth the Lakers seized control.

Metta World Peace, who helped rally the home team as an emotional leader off the bench, made a three-pointer to give his team an 87-82 with 3:30 left and raced down the court pounding his chest.

The Clippers had a chance to tie things in the last minute but World Peace blocked a Paul lay-up and the visitors made a crucial turnover as the game slipped away.

In the final seconds, Paul barked at Gasol after the Lakers big man tried to rub his head and the rivalry waged on.

"I don't like that," said Paul, whose Clippers are now tied with the Lakes for first in the Pacific Division.

"I have kids of my own, don't touch my head like I'm one of your kids. You don't walk up and do that to a grown man!"

(Reporting by Jahmal Corner; Editing by Alastair Himmer. To query or comment on this story email sportsfeedback@thomsonreuters.com)

( Enjoy Moneycontrol.com on iPad and be prepared for a fantastic experience. Get real time stock quotes, interactive charts, market buzz, and watch CNBC-TV18, CNBC Awaaz live on your iPad. Check out the free moneycontrol app. Click here to download now )��

Source: http://www.moneycontrol.com/news/wire-news/lakers-get-last-wordla-clash_657427.html

finance news economic news world us news about us business business news news latest news us news key news

How the major stock indexes fared Tuesday (AP)

The Fed's decision to buy long-term Treasurys and sell short-term ones to help get the economy back on its feet was expected. Stocks sank anyway on fears the Fed's statement showed economy was in dire shape.

The Dow Jones industrial average lost 283.82 points, or 2.5 percent, and closed at 11,124.84.

The Standard & Poor's 500 index fell 35.33, or 2.9 percent, to 1,166.76.

The Nasdaq composite fell 22.59, or 0.9 percent, to 2,590.24.

The Nasdaq composite fell 52.05, or 2 percent, to 2,538.19.

For the week to date:

The Dow is down 384.25, or 3.3 percent.

The S&P 500 is down 49.25, or 4.1 percent.

The Nasdaq is down 84.12 or 3.2 percent.

For the year to date:

The Dow is down 452.67, or 3.9 percent.

The S&P 500 is down 90.88, or 7.2 percent.

The Nasdaq is down 114.68, or 4.3 percent.

Source: http://us.rd.yahoo.com/dailynews/rss/stocks/*http%3A//news.yahoo.com/s/ap/20110921/ap_on_bi_ge/us_wall_street_box

business news news latest news us news key news best news economic news finance news economic news world us news

Monday, January 30, 2012

Is American Manufacturing on Track for a Comeback?

LincolntonWill America ever be great again? There are signs far up the supply chain that suggest an emerging renaissance in U.S. manufacturing.

In December, Detroit's big-three automakers -- Ford (F), General Motors (GM), and Chrysler -- announced that they were going to hire 33,000 new workers. This news came on the heels of the revelation that Toyota (TM) and Subaru are now building cars in the U.S. for export to Asia.

It gets you wondering: Just what is going on here? Is this -- could it be -- the beginning of a new industrial age for America?

Yes. It very well might be.

China, and the End of Offshoring

Forgive the brain teaser, but to see why what's happening here is happening here, you have to look abroad to where it happened first: China.

If there's one country that has become the poster child for the decline of American manufacturing, it's the PRC -- and the cheap labor the country is famous for. If the 20th century was the "American Century," in which the U.S. rose to become a global economic superpower, then the first 10 years of the 21st century was definitely the "Chinese Decade."

One by one, we saw American manufacturers shutter their U.S. factories and move their jobs offshore to low-cost China. There were two big reasons: First, and most obviously, it just plain made sense to establish a manufacturing presence in China, to serve its 1.3 billion potential customers. Why make stuff here and then pay to ship goods over there when you could just make the stuff there in the first place?

Once American manufacturers got a taste of the Chinese market, they began to realize something else: Chinese labor was cheap. Cheap enough that you could build stuff over there and then import it here -- and make a hefty profit, even with shipping costs.

That was great news for Walmart (WMT) and its kin, which were able to roll back prices, bump up profits, and grab ever-larger swaths of market share in the process, all thanks to the low cost of goods made in China.

But what happens once when the cost of those goods stops being so low? I'll tell you what happens. For one thing, Toyota (TM) starts building cars in America for export to Asia. Ford, GM, and Chrysler also hire more workers to build cars here. And that's just the start:

  • Down in North Carolina, Lincolnton Furniture resumes building furniture in the U.S.
  • Element Electronics announces it's opening in Michigan the first U.S.-owned, U.S.-built television-set factory since Zenith sold out to LG Electronics.
  • Bridgestone (BRDCY.PK) invests $1.1 billion in a tire plant expansion in South Carolina.
  • Caterpillar (CAT) starts pointing to the U.S. as an example of cost-effective manufacturing, and talks about shifting production to Muncie, Ind.

Minding the Narrowing Wage Gap

Chinese wages remain cheap relative to American wages. At Apple (AAPL) supplier Foxconn, for example, some workers make as little as $17 a day. In contrast, new auto manufacturing jobs in Detroit pay $19 an hour.

But the gap is closing fast. According to the Boston Consulting Group, salaries in China are growing 15% to 20% per year. The IMF says that as recently as 1990, average per capita income in China was $350. By 2000, this figure had tripled to $1000, then hit $3,000 in 2008. Today, even a lowly Foxconn worker bee makes perhaps $5,500 a year, and experts project Chinese wages could reach First World levels of $20,000 per person by 2030.

Granted, that's nearly two decades away. But already, wage inflation is sapping the competitiveness of Chinese manufacturing.

A Slow Boat From China

Boston Consulting Group also reminds us that the average Chinese worker is only about 25% as productive as the average American worker. That wipes out a big chunk of China's price competitiveness right there.

Combine the costs of fuel and transport, the high cost of Chinese labor today, and 20% annual wage inflation, and BCG believes that by 2015, Chinese-made goods will be reduced to just a 10% price advantage over U.S.-made goods.

For now, announcements of U.S. factory openings and large job hirings are still rare enough that each one garners a newspaper headline. But already, the trend has acquired a name: "reshoring" -- as opposed to "offshoring." It's a start.

For more on restoring American competitiveness, see:

Motley Fool contributor Rich Smith does not own shares of any company mentioned above. The Motley Fool owns shares of Walmart Stores, Ford Motor, and Apple. Motley Fool newsletter services have recommended buying shares of Walmart Stores, General Motors, Ford Motor, and Apple. Motley Fool newsletter services have recommended creating a diagonal call position in Walmart Stores, creating a synthetic long position in Ford Motor, and creating a bull call spread position in Apple.

Source: http://www.dailyfinance.com/2012/01/25/signs-of-a-new-industrial-age-in-america/

economic news finance news economic news world us news about us business business news news latest news us news

Most of the unemployed no longer receive benefits

, On Saturday November 5, 2011, 11:13 am EDT

WASHINGTON (AP) -- The jobs crisis has left so many people out of work for so long that most of America's unemployed are no longer receiving unemployment benefits.

Early last year, 75 percent were receiving checks. The figure is now 48 percent -- a shift that points to a growing crisis of long-term unemployment. Nearly one-third of America's 14 million unemployed have had no job for a year or more.

Congress is expected to decide by year's end whether to continue providing emergency unemployment benefits for up to 99 weeks in the hardest-hit states. If the emergency benefits expire, the proportion of the unemployed receiving aid would fall further.

The ranks of the poor would also rise. The Census Bureau says unemployment benefits kept 3.2 million people from slipping into poverty last year. It defines poverty as annual income below $22,314 for a family of four.

Yet for a growing share of the unemployed, a vote in Congress to extend the benefits to 99 weeks is irrelevant. They've had no job for more than 99 weeks. They're no longer eligible for benefits.

Their options include food stamps or other social programs. Nearly 46 million people received food stamps in August, a record total. That figure could grow as more people lose unemployment benefits.

So could the government's disability rolls. Applications for the disability insurance program have jumped about 50 percent since 2007.

"There's going to be increased hardship," said Wayne Vroman, an economist at the Urban Institute.

The number of unemployed has been roughly stable this year. Yet the number receiving benefits has plunged 30 percent.

Government unemployment benefits weren't designed to sustain people for long stretches without work. They usually don't have to. In the recoveries from the previous three recessions, the longest average duration of unemployment was 21 weeks, in July 1983.

By contrast, in the wake of the Great Recession, the figure reached 41 weeks in September. That's the longest on records dating to 1948. The figure is now 39 weeks.

"It was a good safety net for a shorter recession," said Carl Van Horn, an economist at Rutgers University. It assumes "the economy will experience short interruptions and then go back to normal."

Weekly unemployment checks average about $300 nationwide. If the extended benefits aren't renewed, growth could slow by up to a half-percentage point next year, economists say.

The Congressional Budget Office has estimated that each $1 spent on unemployment benefits generates up to $1.90 in economic growth. The CBO has found that the program is the most effective government policy for increasing growth among 11 options it's analyzed.

Jon Polis lives in East Greenwich, R.I., one of the 20 states where 99 weeks of benefits are available. He used them all up after losing his job as a warehouse worker in 2008. His benefits paid for groceries, car maintenance and health insurance.

Now, Polis, 55, receives disability insurance payments, food stamps and lives in government-subsidized housing. He's been unable to find work because employers in his field want computer skills he doesn't have.

"Employers are crying that they can't find qualified help," he said. But the ones he interviewed with "weren't willing to train anybody."

From late 2007, when the recession began, to early 2010, the number of people receiving unemployment benefits rose more than four-fold, to 11.5 million.

But the economy has remained so weak that an analysis of long-term unemployment data suggests that about 2 million people have used up 99 weeks of checks and still can't find work.

Contributing to the smaller share of the unemployed who are receiving benefits: Some of them are college graduates or others seeking jobs for the first time. They aren't eligible. Only those who have lost a job through no fault of their own qualify.

The proportion of the unemployed receiving benefits usually falls below 50 percent during an economic recovery. Many have either quit jobs or are new to the job market and don't qualify.

Today, the proportion is falling for a very different reason: Jobs remain scarce. So more of the unemployed are exhausting their benefits.

Federal Reserve Chairman Ben Bernanke has noted that the long-term unemployed increasingly find it hard to find work as their skills and professional networks erode. In a speech last month, Bernanke called long-term unemployment a "national crisis" that should be a top priority for Congress.

Lawmakers will have to decide whether to continue the extended benefits by the end of this year. If the program ends, nearly 2.2 million people will be cut off by February.

Congress has extended the program nine times. But it might balk at the $45 billion cost. It will be the first time the Republican-led House will vote on the issue.

Source: http://us.rd.yahoo.com/finance/news/rss/story/*http%3A//us.rd.yahoo.com/finance/news/topfinstories/*http%3A//biz.yahoo.com/ap/111105/us_jobless_without_benefits.html

key news best news economic news finance news economic news world us news about us business business news news

Naval band led by officer for the 25th time

'; } } document.write(s); return; } google_ad_client = 'ca-money_test_js'; //2008-03-05 : News Internal 300x250 google_ad_channel = "5088647641"; google_ad_output = 'js'; google_max_num_ads = '1'; google_ad_type = 'text'; google_language = 'en'; google_encoding = 'utf8'; google_safe = 'high'; google_kw_type = 'broad'; google_ad_section = 'default'; google_page_url=document.location.href; // -->

Like this story, share it with millions of investors on M3


Like this story, share it with millions of investors on M3

Naval band led by officer for the 25th time

Naval band led by officer for the 25th time

New Delhi, Jan 26 (PTI) It was silver jubilee for Navy's Master Chief Petty Officer Ramesh Chand Katoch, who led the naval band, at the Republic Day parade today. Katoch marched down the majestic Rajpath as part of the brass band for the 25th year in a row. He led 81 musicians at the parade playing the lilting tune 'Jai Bharati' as 144 elegantly dressed Navy men marched through the Rajpath. It was the 14th year he was leading the band at the parade. His counterparts in the Air Force played 'Air Battle' while the various army contingents marched to the tunes of 'Arjuna', Thimmaya, 'Gangotri' and 'Veer Gorkha' military numbers. The bands of paramilitary forces played 'Hum Hai Seema Suraksha Bal', 'Seva Bhakti Ka Yeh Prateek', 'Kadam Kadam Baraye Chal', 'Saare Jahan se Aacha' and 'Josh Bhara Hai Sine Main' among others.

( Enjoy Moneycontrol.com on iPad and be prepared for a fantastic experience. Get real time stock quotes, interactive charts, market buzz, and watch CNBC-TV18, CNBC Awaaz live on your iPad. Check out the free moneycontrol app. Click here to download now )��

Source: http://www.moneycontrol.com/news/wire-news/naval-band-led-by-officer-for25th-time_657433.html

economic news world us news about us business business news news latest news us news key news best news

Stocks trim losses, but still down on Greek woes

u.s. stock market

Click the chart for more stock market data.

NEW YORK (CNNMoney) -- U.S. stocks recovered most of their lost ground but remained in the red Monday afternoon as concerns over Greece continued to weigh on the market.

Stocks started the day down about 1% after the weekend came and went without Greek leaders reaching an agreement on a debt-relief deal. But as the trading session wore on, the major indexes trimmed some of those losses.

With about an hour remaining in the day, the Dow Jones industrial average (INDU) was off 50 points, or 0.4%. The S&P 500 (SPX) lost 6 points, or 0.5%, and the Nasdaq (COMP) slumped 5 points, or 0.2%.

Financial stocks led the declines, with Bank of America (BAC, Fortune 500) the biggest decliner on the Dow. Citigroup (C, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Wells Fargo (WFC, Fortune 500) and Goldman Sachs (GS, Fortune 500) were all down between 1% and 2%.

Greek officials finished the weekend without a deal with private-sector creditors, and investors will be looking this week for the parties to finally reach an agreement. Without such a deal, the country jeopardizes its access to bailout funds and might not be able to make a ?14 billion debt payment that's due March 20.

"As long as there is an unresolved issue as its relates to Greece and Europe overall in the background, investors can't move too far forward," said Dave Hinnenkamp, CEO of KDV Wealth Management. "The market has been focusing on the domestic news, but the impact of that is starting to fade and the background is shining through again."

European Union leaders gathered Monday for their first summit of the year.

The official agenda is focused on striking a balance between more austere fiscal measures for nations with unsustainable levels of debt and policies that will help revive economic growth across the 17-member euro-currency area.

But the difficult debt negotiations in Greece have revived concerns about a default, and investors are growing worried about Portugal, where borrowing costs continue to soar.

U.S. stocks ended mostly lower Friday as jittery investors digested the weaker-than-expected GDP report, and Europe's crisis loomed in the background.

World markets: European stocks closed lower. Britain's FTSE 100 (UKX) fell 1.1%, the DAX (DAX) in Germany dropped 1% and France's CAC 40 (CAC40) lost 1.6%.

Asian markets ended lower. Shanghai re-opened after a weeklong break for Lunar New Year, and the Shanghai Composite (SHCOMP) closed down 1.5%. The Hang Seng (HSI) in Hong Kong fell 1.7%, and Japan's Nikkei (N225) slumped 0.5%.

Economy: Personal income ticked up 0.5% in December, while spending remained flat, the Commerce Department reported Monday.

Meanwhile, the personal consumption expenditures price index -- a measure of inflation preferred by the Federal Reserve -- showed prices, excluding energy and food, rose 0.2% in December, up from a 0.1% gain in November.

Companies: Shares of Pep Boys (PBY) popped more than 20% after the auto parts chain agreed to be taken private for $791 million by investment firm The Gores Group.

Wendy's (WEN) shares fell after the fast-food chain reported earnings per share of one cent, the same as the year-ago quarter.

Buzz continued to swirl over a possible Facebook IPO after the Wall Street Journal reported Friday that the filing could come as early as this Wednesday. The Global X Social Media ETF (SOCL), which includes Groupon (GRPN), LinkedIn (LNKD), Pandora (P), and Zynga (ZNGA), moved higher.

Shares of Carnival Corp. (CCL) -- owner of the ill-fated Costa Concordia -- declined after the cruise-ship operator updated its earnings outlook, saying it expected a decrease of 48 to 51 cents a share for the year.

Currencies and commodities: The dollar rose against the euro and the British pound but fell versus the Japanese yen.

Oil for March delivery slipped 78 cents to settle at $98.78 a barrel.

Gold futures for February delivery fell $1.20 to settle at $1,731 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.83% from 1.90% late Friday. �To top of page

First Published: January 30, 2012: 9:43 AM ET

Source: http://rss.cnn.com/~r/rss/money_topstories/~3/RHRpaOSbXXk/index.htm

economic news world us news about us business business news news latest news us news key news best news

Want a Better Used Car? Shop like a Woman

Used car shoppingAre women actually better at buying used cars than men? A company called LeaseTrader, which runs a used-car marketplace for people who want to get in or out of a lease rather than buy, crunched some data and came to just that conclusion.

LeaseTrader found that women who use their service are significantly more likely than men to ask sellers tough questions, evaluate a car's safety features, and have vehicles inspected by mechanics before making a deal.

Men, on the other hand, tended to limit their questions to subjects like engine performance and technology -- and nearly half declined to arrange a pre-purchase inspection by a mechanic, even when buying long-distance.

'Fess up, folks: Are we really surprised?

The Right Way to Buy a Used Car

What women and men both have right is that buying a used car isn't a casual purchase -- it's a big deal, and you need lots of information in order to make the right choice.

It's no surprise that men and women would prioritize the information they need differently. It makes sense that moms who expect to spend a lot of time with kids in the car will ask hard questions about a car's safety. And guys... well, we guys tend to romanticize our cars a bit. We like horsepower and great stereos, so it's a no-brainer that many of us will pay close attention to those aspects of a car's feature list.

Of course, those are stereotypes, and plenty of purchasers on both sides of the gender gap fall outside of those descriptions. But no matter your gender, you'll do a lot better in your used-car hunt if you do your research the right way.

The Two Questions You Must Ask Before Buying

Impulse buys are fine at the mall, but not a good plan when you're spending thousands of dollars on a vehicle that will carry you and your family for several years. Before handing over that check, there are two big, critical questions that need to be answered about any new-to-you car:

1. Is this the right model for me? Do you fit comfortably in the driver's seat? Do your kids fit in back? Does the model have good reliability ratings from Consumer Reports? Are the controls laid out in a way that works for you? Does it have the features and specs -- safety, performance, fuel economy -- that you want and need? Does it feel good to you on the road? Do you like it? (Don't underestimate the importance of that last one. You're planning to live with this thing for several years.)

2. Is this particular car a good one? Does it look like the previous owner took good care of it? Are the door panels, the interior surfaces, the tires in good shape? Are there signs of accident damage? Test drive it: Does it drive well, with no vibrations, rattles or squeaks? Does it accelerate smoothly and stop briskly? Can you live with the color? What does your mechanic think of it?

Answering the first question -- deciding on the kind of car you want to buy -- will require some research to narrow down the possibilities, and probably a few test drives. Don't be afraid to cast your net widely -- while the mainstays from Toyota (TM) and Honda (HMC) mostly deserve their top-drawer reputation for reliability, the best offerings from Ford (F) and General Motors (GM) have been just as good lately -- and can often be had at a better price used.

And the second question? It's always best to check out each car in person -- but nowadays, when so many folks buy cars over the Internet, that's not always possible. But what is possible is to arrange for a pre-purchase inspection by a competent mechanic, something that should always be done whether the car is local to you or far away.

Don't Skimp on This Last Step

Most good mechanics will be happy to do a pre-purchase inspection. If you're buying long-distance and you're an AAA member, the club can help you find a reputable shop that's local to the seller.

Typically, pre-purchase inspections will include basic engine diagnostics, a survey of wear and tear on things like suspension parts, and a check for rust or accident damage; in short, the things you want to know about a used car, but often cannot easily determine yourself.

Expect to spend about $120 or so for an inspection like this. That's not cheap, but it's money well-spent if you're ready to buy, and it's money that both men and women should be ready to lay out to make sure that your new-to-you ride is as good a deal as you hope.

At the time of publication, Motley Fool contributor John Rosevear owned shares of Ford and General Motors. The Motley Fool owns shares of Ford, and Motley Fool newsletter services have recommended buying shares of General Motors and Ford. Motley Fool newsletter services have also recommended creating a synthetic long position in Ford.

Source: http://www.dailyfinance.com/2012/01/25/want-a-better-used-car-shop-like-a-woman/

best news economic news finance news economic news world us news about us business business news news latest news

Companies need to gain from their altruism

His speech writer is erroneously attributing to a system for distributing resources characteristics that are uniquely human.

It's not capitalism that needs to change, it's people that need to change. The market, capitalism's modus operandi, is blind to what may or may not be considered socially responsible and has no interest in being popular.

What the Prime Minister's words really mean is that people should be socially responsible and genuinely popular, specifically people running companies.

Put like that his ideas take on a little more meaning. Many companies already have some understanding of what's socially responsible. If that makes them popular so be it, but popularity per se is not something companies should be concerned with beyond existing issues of reputation and brand which are already important boardroom matters.

A "John Lewis" economy would be no more popular than the current version, especially when the brave new shareholder democracy was told to write a few expensive cheques and risk more of their capital to keep the economy growing.

What politicians are really hoping for, but can't quite articulate it, is that companies will adopt a more altruistic attitude towards the environment and communities around them.

Which they will, many already do, but it's a form of self-interested altruism that is designed to ultimately improve shareholder value. It will be part of the business plan, whether politicians like it or not, and it will be people's motives, including the profit motive, that will decide what is or isn't responsible for companies to do.

damian.reece@telegraph.co.uk

Source: http://telegraph.feedsportal.com/c/32726/f/568312/s/1bf987da/l/0L0Stelegraph0O0Cfinance0Ccomment0Cdamianreece0C90A267410CCompanies0Eneed0Eto0Egain0Efrom0Etheir0Ealtruism0Bhtml/story01.htm

news latest news us news key news best news economic news finance news economic news world us news about us

Obama stumps for jobs bill in GOP leaders' turf (AP)

CINCINNATI ? President Barack Obama was marketing his massive jobs proposal Thursday from an outdated bridge that links the home states of his two chief congressional Republican rivals, a symbolic and cheeky maneuver designed to pressure the GOP and convey resolve in the face of a sputtering economy.

Obama was making his pitch for $447 billion in tax cuts, jobless aid and public works projects at the Brent Spence Bridge south of Cincinnati, an aging span that connects House Speaker John Boehner's state of Ohio with Kentucky, home of Senate Republican leader Mitch McConnell.

The politics are clear. White House press secretary Jay Carney gladly conceded that the trip was a symbolic one designed to heap pressure on Boehner and McConnell to rally behind his plan

"We have never suggested that ground would be broken on this project immediately," Carney said. "We're very transparent about why we're going to this bridge: We're going to this bridge because it spans the river that divides two states that are represented by the speaker of the House and the Senate minority leader."

The bridge itself, deemed "functionally obsolete" by the federal government, is already scheduled to be replaced starting in 2015, although Carney argued that passage of the president's jobs bill could speed up that timeline.

McConnell and Boehner, both of whom have supported the bridge project, dismissed the visit as a ploy.

"I would suggest, Mr. President, that you think about ways to actually help the people of Kentucky and Ohio, instead of how you can use their roads and bridges as a backdrop for making a political point," McConnell said on the Senate floor Thursday morning. "If you really want to help our state then come back to Washington and work with Republicans on legislation that will actually do something to revive our economy and create jobs. And forget the political theater."

Added Boehner spokesman Brendan Buck, "We want to work with the president to support job creation, but political stunts and empty promises bring us no closer to finding common ground."

In the very short term, Obama's visit was making traffic on the overloaded 1963 bridge worse, not better. Ohio and Kentucky transportation officials warned motorists to expect long delays around the time of the president's appearance Thursday afternoon because of lane closures and a ramp shutdown. Boehner joked that stopping bridge traffic won't win any votes.

Both Boehner and McConnell declined a White House invitation to attend Thursday's event, because Congress is in session.

Public opinion polls show only about 1 person in 4 approves of Obama's economic performance. The president is seeking to put his differences with Republicans into sharper focus and to shift to his political rivals some of the responsibility for the nation's high unemployment and feeble growth rate.

The president's defiant approach to Boehner and McConnell represents a shift from his outreach to Boehner this summer, when the two men tried to work out a deal that would extend the nation's borrowing authority and cut long-term deficits as well.

Then, the president took Boehner golfing. Now he's taking him to task.

Obama on Monday announced a $3 trillion deficit-reduction package, half of which consists of tax increases. It was a direct challenge to Republicans and Boehner in particular, who last week flatly ruled out tax increases as way to lower long-term deficits.

Obama's visit will be his second to Ohio in two weeks. It's not the first time the president has taken on Boehner in his home state. A year ago, Obama went to Parma, Ohio, just days after Boehner had delivered an economic speech to the City Club of Cleveland. Obama criticized the speaker by name for his policy proposals.

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20110922/ap_on_go_pr_wh/us_obama

key news best news economic news finance news economic news world us news about us business business news news

Asia stocks lower amid Greek political turmoil

, On Sunday November 6, 2011, 11:54 pm

BANGKOK (AP) -- Asian stocks stalled Monday as investors remain unsure whether Greece will be able to work itself out of a debt crisis despite a weekend deal by the country's leaders aimed at implementing a controversial austerity program.

Oil prices rose to near $95 per barrel, while the dollar gained against the euro but slipped against the yen.

Japan's Nikkei 225 index fell 0.5 percent to 8,755.44. South Korea's Kospi lost 0.4 percent to 1,921.23 and Australia's S&P/ASX 200 was 0.5 percent down at 4,259.90. Hong Kong's Hang Seng fell 0.2 percent to 19,806.73. Shares in mainland china were also lower, while Benchmarks in Taiwan, Thailand and New Zealand rose.

Global stock markets have been rattled for the past week over uncertainty surrounding Greece. Investors worry that a default by Athens on its debts could cripple European banks and cause fiscal strain on much larger European countries like Italy.

On Wall Street on Friday, stocks fell on concerns that Greece might not go through with a plan hammered out by European leaders that requires Greece to implement harsh austerity measures in exchange for billions of euros in financial assistance.

The Dow fell 0.5 percent to close at 11,983.24. The Standard & Poor's 500 index fell 0.6 percent to 1,253.23. The Nasdaq composite shed 0.4 percent to 2,686.15.

Over the weekend, Prime Minister George Papandreou and conservative opposition head Antonis Samaras agreed to form an interim government whose main task would be to ensure implementation of the austerity program.

Stocks plunged early last week after Papandreou shocked investors with an announcement that he would put the country's austerity plan to a public vote. He backed away from the plan, but investors remain unnerved.

In one bright spot Friday, the U.S. Labor Department raised its estimates for job growth. The nation added 80,000 jobs last month, the 13th consecutive month of gains. The government also said a total of 102,000 more jobs were added in August and September than had been previously reported.

In Tokyo trade, Japanese exporters posted losses, as a stubbornly strong yen continued to eat into their profits. Nissan Motor Corp. dropped 2 percent, while Toshiba Corp. dipped 1.9 percent. Honda Motor Corp. fell 1.8 percent.

In Hong Kong, the most actively traded shares include China Construction Bank, down 2.8 percent, and China National Offshore Oil Corp., or CNOOC, down 2.2 percent. Gainers include China Life Insurance, up 3.1 percent.

Benchmark crude for December delivery was up 52 cents at $94.78 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 19 cents to settle at $94.26 in New York on Friday.

In currencies, the euro fell to $1.3770 from $1.3778 late Friday in New York.

The dollar fell to 78.10 yen from 78.16 yen.

Source: http://us.rd.yahoo.com/finance/news/rss/story/*http%3A//us.rd.yahoo.com/finance/news/topfinstories/*http%3A//biz.yahoo.com/ap/111106/world_markets.html

business news news latest news us news key news best news economic news finance news economic news world us news

Sunday, January 29, 2012

Super Bowl ad sneak peek

Even an Arctic-dwelling polar bear needs a cool, refreshing drink. And apparently he's willing to go to great lengths to get it -- so long as it's Coke. That's the message that Coca-Cola, a prolific Super Bowl advertiser, has prepared to air during the Feb. 5 game.

In the ad, a polar bear scrambles desperately to keep his Coke from sliding off an ice cap and disappearing into the freezing slush.

This scenario seems as likely as a chimpanzee wearing a suit. Which brings us to...

NEXT: Boss Driving You Bananas?

Source: http://rss.cnn.com/~r/rss/money_topstories/~3/Z5YwIckrKa8/index.html

world us news about us business business news news latest news us news key news best news economic news

Disney paid Iger $31.4 million in 2011

Published: Jan. 21, 2012 at 11:31 AM

LOS ANGELES, Jan. 21 (UPI) -- U.S. entertainment giant Walt Disney Co. said top executives received substantial raises in 2011.

Chief Executive Officer Bob Iger was paid $31.4 million in 2011, a raise of 12 percent from 2010 and 45 percent from 2009, The Hollywood Reporter said Saturday.

Iger's total pay included $15.5 million in bonuses and an annual stock award worth $12.9 million.

Chief Financial Officer Jay Rasulo was paid $9.9 million, a $300,000 pay raise from 2010. Executive vice president and chief human resources director Jayne Parker was paid $3.1 million, a 15 percent raise, the Reporter said.

Disney's top lawyer, Alan Braverman was paid $6.9 million, also taking home a $300,000 raise over 2010.

Executive vice president of corporate strategy and business development Keven Mayer missed out, however, with his pay falling from $4.1 million to $3.6 million, the newspaper said.

Source: http://www.upi.com/Business_News/2012/01/21/Disney-paid-Iger-314-million-in-2011/UPI-70981327163517/

best news economic news finance news economic news world us news about us business business news news latest news

Obama: Link U.S. College Aid to Affordability

January 28, 2012, 8:17 AM EST

By Julianna Goldman and Kate Andersen Brower

(Updates with comments by Obama starting in second paragraph.)

Jan. 27 (Bloomberg) -- Saying ?we just can?t keep on subsidizing skyrocketing tuition,? President Barack Obama proposed to have the government, for the first time, link federal aid to a college?s ability to control tuition costs and maintain education quality.

?We are putting colleges on notice -- you can?t assume that you?ll just jack up tuition every single year,? Obama said today at the University of Michigan in Ann Arbor. ?If you can?t stop tuition from going up, then the funding you get from taxpayers every year will go down.?

For institutions that control costs, the administration is proposing to increase campus-based aid to about $10 billion a year, up from $1 billion. The bulk of the money, about $8 billion, would be devoted to Perkins loans for students, with other aid set aside for work-study grants and Supplemental Educational Opportunity Grants.

Obama said higher education today is ?an economic imperative? instead of a luxury. ?College is the single most important investment that you can make in your future,? he said.

The administration?s proposal calls for $1 billion to entice states to help keep costs down at public colleges while encouraging an overhaul of state programs that help finance education.

Obama is also proposing $55 million for individual colleges as an inducement to improve education quality.

Congressional Approval Needed

Congress would be required to approve the changes, which will be spelled out in greater detail when the president submits his fiscal 2013 budget to lawmakers on Feb. 13.

In his Jan. 24 State of the Union address, the president said that states need to make ?higher education a higher priority in their budgets.?

As part of the package, the administration is urging Congress to block an increase in government-subsidized Stafford loan interest rates that would affect 7.4 million borrowers. Rates are set to double this summer to 6.8 percent.

Obama?s proposal would double work-study jobs on institution campuses, and he is urging Congress to extend beyond 2012 the Opportunity Tax Credit program, which offers as much as much as $10,000 in credits for four years of college.

In 2008 Obama won Michigan by 16 percentage points. Tuition and fees at the University of Michigan rose 6.7 percent in the 2011 school year after a $47.5 million decrease in state funding.

Lower State Investment

The president said he wants the U.S. to have the highest number of college graduates by 2020, though the weak economy has lowered state funding for education and stymied his calls for more investment in education.

Jack Jennings, president of the Center on Education Policy, a Washington-based group that advocates for public education, said Obama doesn?t have as many ?power levers? when it comes to regulating higher education.

The president has more influence on policies affecting elementary and secondary education because the federal government?s money for higher education goes not to the institutions, but to students in the form of student aid, tuition tax credits and Pell grants.

?He?s got to deny Johnny Jones his loan in order to put pressure on the state legislature,? Jennings said. ?Johnny Jones isn?t going to appreciate that very much.?

One-Third of Revenue

In the 2010-2011 school year, about one-third of the revenue of U.S. colleges and universities -- $170 billion -- came from federal student aid, according to an estimate by the Washington-based American Council on Education, which represents more than 1,600 college presidents.

Over the last decade, tuition and fees at public four-year universities increased at an average rate of 5.6 percent above inflation, according to the New York-based College Board. At private nonprofit colleges, that figure jumped 3.8 percent annually above that measure.

Including room and board, private colleges charged an average $38,589 a year -- and approached $60,000 at the most expensive institutions. Students who borrow for their education now graduate with an average of more than $25,000 in debt, twice the amount they were saddled with in 1996, according to the Education Department.

?Price Control?

Colleges and universities would probably resist any attempt by the federal government to impose a kind of ?price control? by tying federal aid to how much they charge, said Terry Hartle, senior vice president at the American Council on Education.

?The government would be telling you how you could price your product,? he said in a telephone interview. ?Any industry would be unhappy with that idea.?

F. King Alexander, president of California State University, Long Beach, was one of a dozen university professors and higher education leaders at a Dec. 5 White House meeting with Obama and Education Secretary Arne Duncan to discuss ways to tamp down rising rates.

About a month ago, Alexander said, administration officials asked if he would consider coming to the State of the Union address on the condition that he pledge to freeze tuition rates for a year. He said he refused and told the officials: ?We will be there if you make the 50 state legislatures and the 50 governors take the pledge first that they?re going to maintain their investments. It?s not up to us.?

State Legislatures

State legislatures must be ?punished? for reducing their funding of higher education, Alexander said of his message to the president.

?The primary reason tuition has been going up so rapidly throughout the United States is because state legislatures have been abandoning their investments and commitments in their public institutions,? he said.

Alexander said he is meeting with White House officials on Jan. 30 to help develop a plan that would reward institutions that keep tuition rates low.

Holden Thorp, chancellor of the University of North Carolina at Chapel Hill, also attended the Dec. 5 meeting with the president and Duncan and said he and other university heads clearly delivered the message that ?strained state budgets are a big part of the reason why tuition has gone up? at public universities.

North Carolina?s legislature has cut more than $100 million in state appropriations for the school in the 2011 school year.

?Bully Pulpit?

?The president has the bully pulpit the way no one else in the nation does, and I think when he calls for certain actions to be taken, people take them seriously,? said Brit Kirwan, chancellor of the University System of Maryland, who was also at the White House meeting.

?There are regulations and the moral imperative to ensure that colleges remain affordable, and putting the onus on both the state government and universities is in my mind exactly the right way to go,? Kirwan said.

Universities can?t be ?let off the hook,? said Kirwan, who oversees the University of Maryland, Towson University and several other schools with more than 150,000 students and an operating budget of $4.5 billion for fiscal year 2012.

In the 2013 budget, Maryland Governor Martin O?Malley, a Democrat, is calling for a 3 percent tuition increase and a 2.2 percent increase to the university system?s operating budget.

--With assistance from John Hechinger in Boston and Roger Runningen in Washington. Editors: Leslie Hoffecker, Bob Drummond

To contact the reporters on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net; Kate Andersen Brower in Washington at kandersen7@bloomberg.net

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net

Source: http://www.businessweek.com/news/2012-01-28/obama-proposes-to-link-u-s-college-aid-to-affordability.html

us news key news best news economic news finance news economic news world us news about us business business news

Brazil, China and other emerging markets trail US

, On Sunday November 6, 2011, 12:12 pm EST

NEW YORK (AP) -- It sounded like a can't-miss proposition: Buy the winners, drop the losers.

Developing countries from Brazil to China are expanding much faster than aging economies in the U.S. and Europe, where borrowing during the boom years has been a drag on growth. So the smart money bought stocks in emerging markets, expecting that rapid economic expansion there would provide better rewards. This year, that bet hasn't worked out.

The broadest measure of U.S. stocks, the Standard & Poor's 500 index, is down just 0.4 percent this year. Markets in Brazil, China and the like have lagged far behind, even though their economies are still growing faster than the U.S.

"If you were anywhere in the world other than in the S&P 500 this year, you got crushed," said Greg Peterson, director of research at Ballentine Partners, an investment advisory firm.

The main reason emerging market stocks have suffered deeper losses isn't because their economies are suddenly sluggish. Analysts say it's because people have been worried about the European debt crisis and a possible recession in the U.S. It may seem unfair, but when fear of another financial crisis strikes money managers, they tend to flee emerging markets and stay closer to home.

This summer, panicked money managers dropped the most risky investments first. That meant bonds from deeply indebted countries like Italy and Portugal, small companies in the U.S and emerging market stocks got hit the hardest. Even gold, an asset normally considered safe, dropped as traders shifted money into dollars.

"There was a globalization of fear," says Nathalie Wallace, a senior portfolio manager at Batterymarch Financial Management.

The same thing happened when the U.S. financial crisis hit in 2008. The S&P 500 fell 38.5 percent for the year. But the MSCI Emerging Market index, made up of countries where the banks didn't peddle subprime mortgage bonds, plummeted 47.3 percent.

"Anytime you see risk and fear coming, you see emerging markets get hit a bit more," Wallace says. "It doesn't mean the underlying fundamentals of the economy have changed."

Consider the collection of emerging-market rising stars known as the BRICs, which stands for Brazil, Russia, India and China. All have economies whose growth exceeds the U.S.

-- Brazil: The economy has expanded 3.1 percent over the past year. The benchmark Bovespa has lost 15.3 percent.

-- Russia: Economic growth of 5.1 percent. The Micex has dropped 11.1 percent this year even after a 10 percent rebound in the past month.

-- India: Economic growth of 7.7 percent. The BSE Sensex index is down 14.4 percent.

-- China: Economic growth of 9.1 percent. The Shanghai Composite has slumped 10 percent this year.

By contrast, the U.S. economy has expanded 1.6 percent over the past 12 months. That's sluggish compared to the developing world's stars. And worries that the U.S. could slip into a recession, or that Europe's debt crisis could tip it into one, have weighed on investors for months. Even after those fears dragged down stocks nearly 20 percent in a month, the S&P 500 outshines indexes in nearly all of the world's fastest growing economies.

In fact, if you rank the U.S. against emerging markets this year, it places ahead of 20 countries and behind just one, Indonesia.

China and other emerging markets long relied on shipping toys, timber and other goods to consumers in the U.S. and Europe. Trade helped them grow. But that has a downside, says Tim Morris, a portfolio manager at J.P. Morgan's asset management unit. When a small country hitches its fortunes to U.S. shoppers, it's bound to suffer when the U.S. economy slows down.

A related problem for many emerging market countries is that they're dominated by energy and material producers, the type of companies most vulnerable to a global slowdown. Todd Henry, an emerging markets equity specialist at T. Rowe Price, points to Brazil, a country that isn't as dependent on exports for growth. "It's a relatively closed economy," Henry says. "But commodity and energy companies make up a large part of their stock market. So if the world is slowing down, that gets priced in."

The largest company in Brazil's stock index is the oil giant Petrobras. When the U.S. economy looks weak, the price of oil falls and the companies that sell oil fall, too. That pushes down Petrobras, which tugs on the Bovespa. In other words, when the U.S. has the sniffles, Brazil's stock market still catches a cold.

"Americans tend to think our problems are limited to the U.S.," says Richard Bernstein, chief executive officer of Richard Bernstein Advisors LLC. "But our problems are their problems, too."

Source: http://us.rd.yahoo.com/finance/news/rss/story/*http%3A//us.rd.yahoo.com/finance/news/topfinstories/*http%3A//biz.yahoo.com/ap/111106/us_wall_street_week_ahead.html

about us business business news news latest news us news key news best news economic news finance news