Thursday, December 29, 2011

Rate on 30-year mortgage stays at record 4.09 pct. (AP)

WASHINGTON ? Fixed mortgage rates hovered at record lows for a third straight week. They are likely to fall even further now that the Federal Reserve said it would shuffle its holdings to drive down long-term interest rates.

The average rate on the 30-year fixed mortgage was unchanged at 4.09 percent this week, Freddie Mac said Thursday. That's the lowest rate seen since 1951.

The average rate on the 15-year mortgage ticked down to 3.29 percent. Economists say that's the lowest rate ever for the loan.

Mortgage rates tend to track the yield on the 10-year Treasury note. One day after the Fed's announcement, the yield on the 10-year note touched 1.74 percent Thursday. That's the lowest level since Federal Reserve Bank of St. Louis started keeping daily records in 1962.

In July, the yield on the 10-year note was above 3 percent.

Low mortgage rates have done little to boost home sales. This year is shaping up to be the worst for sales of previously occupied homes since 1997. Few are buying, even though the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks this year.

Many Americans are in no position to buy or refinance. High unemployment, scant wage gains and large debt loads have kept them away.

Others can't qualify. Banks are insisting on higher credit scores and 20 percent down payments for first-time buyers. Some homeowners have too little equity invested in their homes to meet loan requirements.

Most people must also pay extra fees to get the low mortgage rates. Those fees are known as points, with one point equaling 1 percent of the total loan amount.

The average fees for the 30-year held steady at 0.7 point. Fees paid on 15-year fixed loans and both 5-year and one-year adjustable-rate loans were all at 0.6 point.

Once fees are factored in, the average rate on the 30-year loan rises to 4.25 percent, Freddie Mac said.

A drop in mortgage rates could provide some help to the economy if more people could refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend.

But many homeowners with good jobs and stable finances have already refinanced in the past year. The average rate on the 30-year fixed loan fell to 4.17 percent last November, and to 4.15 percent last month. Both were previous lows.

Homeowners typically pay a few thousand dollars in closing costs when they refinance. To refinance again, most experts say rates would need to fall an additional 1 percentage point to make it worthwhile.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage rose to 3.02 percent. That's higher than last week's 2.99 percent.

The average rate for the one-year adjustable-rate mortgage increased slightly to 2.82 percent from 2.81 percent, the lowest rate on records going back to 1984.

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

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How to Make Up for Social Security's Meager Raise

How to Make Up for Social Security's Meager RaiseFor the first time since 2009, Social Security recipients will get an increase in their checks in 2012, thanks to the Cost of Living Adjustment process. The average Social Security check to a retiree in January is expected to be $1,229, a 3.6% COLA increase compared to the $1,186 it would have been without that hike.

As nice as it is to get any sort of raise, whether you're already receiving Social Security or you anticipate getting it someday, you need to ask yourself two key questions:

1. Have your costs of living really risen only 3.6% since the end of 2008?
2. Do you want to live on just that $1,229-a-month average Social Security payment?

If the answer to either of those questions is no, then you need to fill the spending gap that Social Security won't cover in order to retire comfortably.

Where to Look for Income

Unfortunately, these days, there are pretty slim pickings for income-seeking investors. Bonds, a traditional source of investment income, are yielding abysmally low rates. Even the longest-dated and highest-yielding 30-year Treasury bonds carry an interest rate right around 3%. At that yield, with inflation running at 3.4% over the past 12 months, all you're really getting by buying those bonds is a promise that your money will lose its purchasing power less quickly than if you were just holding cash.

However, today's investors can find better options for income in a somewhat less conventional place: stocks.

Oh, sure, no stock dividend is guaranteed, as no company has the Federal Reserve's power to print dollars at will. That makes individual dividend-paying companies riskier than Treasury bonds. Still, with a solid strategy, these days you can build an arguably better overall income portfolio with stocks than with those bonds.

Indeed, you can even build a stock-based portfolio with both a higher current yield than those 30-year Treasuries and the ability to potentially raise its dividends faster than Social Security has been rising. To do that in a market that has no guarantees, though, you need to pick your investments carefully.

4 Simple Rules for Investing in Dividend Stocks

When shopping for dividend-paying stocks, follow these guidelines:

? Diversify appropriately: You don't need to buy every stock in the market, but you'll want to own companies across multiple industries. That way, if one company -- or even industry -- fails, your dividend income won't be completely destroyed. Remember, it was just a few years ago that the global financial system imploded, taking many seemingly "indestructible" banks along with it.

? Look for companies with stable financial foundations: Judicious use of debt can help companies grow faster than they would have by trying to rely only on their internally generated cash flow. Too much debt, though, can be deadly when an investment doesn't work out. Looking for companies with debt-to-equity ratios below 2 will keep you among the companies that have kept their debt levels manageable.

? Check up on the dividend-paying history: Companies with proven track records of raising their dividends are likely to continue doing so if at all possible. In part, this happens because those companies know the market treats their dividends as signaling devices that proclaim the true health of their operations. No executives want to disappoint the market, especially with their own bonuses on the line.

? Be sure there's still room to grow: As valuable as those dividends are to investors, they come from companies' after-tax earnings -- money that would otherwise be available to continue to build the businesses. Payout ratios below two-thirds of earnings leave the companies with enough funding to continue to build the business and keep that streak of dividend growth alive.

Building a portfolio based on stocks with those characteristics and dividend yields hugging the same 3% level that 30-year Treasuries pay these days tends to get you corporate stalwarts like these:

Company

Industry

Dividend Yield

Payout Ratio

10-Year Dividend CAGR

Debt-to-Equity Ratio

Energy

3%

22.1%

8.7%

0.1

Health care

3.5%

49.8%

10.9%

0.5

Information technology

3.5%

30.8%

28.4%

0.2

Consumer staples

3.1%

48.6%

13.3%

1.1

Industrials

2.9%

25%

12.8%

0.3

Consumer discretionary

3%

28.5%

7.3%

0.4

Financials

3.1%

29.3%

20.5%

0.3

Source: S&P Capital IQ, as of Dec. 20.

There are still no ironclad guarantees, and you'll need to regularly keep an eye on the companies you buy to assure they're still worth owning. That said, in order to fill the spending gap that Social Security won't cover and give your income a chance of increasing at least as fast as your real expenses do, those types of companies are worth considering.

After all, unless your true costs of living have only increased 3.6% since the end of 2008, all you're really getting from Social Security is a promise that inflation's bite won't hurt as badly as it otherwise would. That's cold comfort when it results in a choice between food and heat.

At the time of publication, Motley Fool contributor Chuck Saletta owned shares of Johnson & Johnson and Intel. Click here to see his holdings and a short bio. The Motley Fool owns shares of Intel, Aflac, and Johnson & Johnson, and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Intel, AFLAC, Chevron, Johnson & Johnson, and PepsiCo, as well as creating diagonal call positions in PepsiCo and Johnson & Johnson and a bull call spread position in Intel.

Source: http://www.dailyfinance.com/2011/12/28/how-to-make-up-for-social-securitys-meager-raise/

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Census: Recession takes big toll on young adults (AP)

WASHINGTON ? Young adults are the recession's lost generation.

In record numbers, they're struggling to find work, shunning long-distance moves to live with mom and dad, delaying marriage and raising kids out of wedlock, if they're becoming parents at all. The unemployment rate for them is the highest since World War II, and they risk living in poverty more than others ? nearly 1 in 5.

New 2010 census data released Thursday show the wrenching impact of a recession that officially ended in mid-2009. There are missed opportunities and dim prospects for a generation of mostly 20-somethings and 30-somethings coming of age in a prolonged period of joblessness.

"We have a monster jobs problem, and young people are the biggest losers," said Andrew Sum, an economist and director of the Center for Labor Market Studies at Northeastern University. He noted that for recent college graduates getting by on waitressing, bartending and odd jobs, they will have to compete with new graduates for entry-level career positions when the job market does improve.

"Their really high levels of underemployment and unemployment will haunt young people for at least another decade," Sum said.

Richard Freeman, an economist at Harvard University, said young people "will be scarred and they will be called the `lost generation' ? in that their careers would not be the same way if we had avoided this economic disaster."

The latest figures also show a rebound in the foreign-born population to 40 million, or 12.9 percent, the highest share since 1920. The 1.4 million increase from 2009 was the biggest since the mid-decade housing boom and could fuel debate in this election season about immigration strategy.

Most immigrants continue to be low-skilled workers from Latin America, with growing numbers from Asia also arriving. An estimated 11.2 million people are in the U.S. illegally.

People age 65 and older tended to return to or stay in their jobs, accounting for the few employment gains in recent months. About 1 in 6 older people is now in the labor force. That's the highest level since the 1960s, before more generous Social Security and Medicare benefits made it more attractive to retire.

Employment among young adults 16-29 was 55.3 percent, compared with 67.3 percent in 2000; it's the lowest since the end of World War II.

Young males who lacked a college degree were most likely to lose jobs due to reduced demand for blue-collar jobs in construction, manufacturing and transportation during the downturn. Among teenagers, employment was less than 30 percent.

The employment-to-population ratio for all age groups from 2007-2010 dropped faster than for any similar period since the government began tracking the data in 1948. In the past year, 43 of the 50 largest metropolitan areas continued to post declines in employment: Charlotte, N.C., Jacksonville, Fla., Las Vegas, Phoenix, Los Angeles and Detroit. Each experienced a severe housing bust, budget deficit or meltdown in industries such as banking or manufacturing.

Without work, young adults aren't starting careers and lives in new cities.

Among adults 18-34, the share of long-distance moves across state lines fell last year to roughly 3.2 million people, or 4.4 percent, the lowest level since World War II. For college graduates, who historically are more likely to relocate out of state, long-distance moves dipped to 2.4 percent.

Opting to stay put, roughly 5.9 million Americans 25-34 last year lived with their parents, an increase of 25 percent from before the recession. Driven by a record 1 in 5 young men who doubled up in households, men are now nearly twice as likely as women to live with their parents.

Marriages fell to a record low last year of just 51.4 percent among adults 18 and over, compared with 57 percent in 2000. Among young adults 25-34, marriage was at 44.2 percent, also a new low.

Broken down by race and ethnicity, 31 percent of young black men lived in their parents' homes, compared with 21 percent of young Latino men and 15 percent of young white men. At the state level, New York had the highest share of young men living with their parents at 21 percent, followed by New Jersey and Hawaii, all states with higher costs of living. Most of the cities with low percentages of young adults living at home were in the Midwest.

Younger women across all race and ethnic groups had fewer children compared with 2008. Births declined 6 percent among 20-34 year-olds last year even though the number of women in this group increased by more than 1 million, according to an analysis of census data by Kenneth Johnson, sociology professor and senior demographer at the University of New Hampshire. Never before has such a drop in births occurred when the population of young adults increased in at least 15 years.

"Are people just delaying births, or does this represent a real loss of babies that won't be replaced? During the Great Depression, there was a permanent loss of births ? they were never made up," Johnson said.

Homeownership declined for a fourth consecutive year, to 65.4 percent, following a peak of 67.3 percent in 2006.

"Many young adults are essentially postponing adulthood and all of the family responsibilities and extra costs that go along with it," said Mark Mather, an associate vice president at the private Population Reference Bureau. He described a shift toward a new U.S. norm, one that's commonly seen in Europe, in which more people wait until their 30s to leave the parental nest.

"Some of these changes started before the recession but now they are accelerating, with effects on families that could be long term," Mather said.

The District of Columbia plus 14 states had the largest ratios of college graduates to high-school dropouts, more than 3 to 1. Several of these places, including the District of Columbia and states with larger immigrant populations, had the widest income gaps between rich and poor.

The number of Hispanic children in poverty rose by half a million to 6.1 million last year, making up a majority of the increase in total child poverty. Hispanics now comprise 37 percent of children in poverty, compared with 30 percent for whites and 27 percent for blacks.

"We are really at a crossroads," said William H. Frey, a demographer at the Brookings Institution. "These new young immigrants and their children need a pathway to the middle class ? good educations, affordable housing and jobs ? at the same time federal and state budgets are strapped for funds. While we face tough choices, the quality of our future labor force depends on meeting their needs."

Other census findings:

_About 1 in 4 families with children is headed by single mothers, a record. Among young families with a head of household younger than 30, the poverty rate jumped from 30 percent in 2007 to 37 percent. In contrast, poverty remained at a low 5.7 percent for families with a head of household 65 or older.

_The number of households receiving food stamps swelled by 2 million to 13.6 million, meaning that nearly 1 in 8 receives the government aid. Among households receiving food stamps, more than half have children.

The 2010 numbers are from the American Community Survey, which queries 3 million households. In some cases, figures are supplemented with data from the Current Population Survey to establish historical trends.

___

Online:

http://www.census.gov

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

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Wednesday, December 28, 2011

Investing - Investment Portfolio - Personal Finance

Investing - Investment Portfolio - Personal Financehttp://www.telegraph.co.uk/finance/personalfinance/investing/Monitoring the performance of an ideal investment portfolio. Detailed investment advice tailored to your personal circumstances by a highly qualified team.en-uk? & � 2011 of Telegraph Media Group Limited. Please refer to the Terms and Conditions of Use at http://www.telegraph.co.uk/rssSat, 10 Dec 2011 07:00:37 GMTSat, 10 Dec 2011 07:14:22 GMT60Investing - Investment Portfolio - Personal Financehttp://www.telegraph.co.uk/telegraph/template/ver1-0/i/rss/tcuk_main.pnghttp://www.telegraph.co.uk/finance/personalfinance/investing/Five investment hazardshttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ad1659c/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C8946740A0CFive0Einvestment0Ehazards0Bhtml/story01.htmAfter HSBC is fined for mis-selling investment bonds, we look at the products that tempt buyers to take inappropriate risks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ad1659c/mf.gif' border='0'/>Sat, 10 Dec 2011 07:00:37 GMTEmma Simonhttp://www.telegraph.co.uk/finance/personalfinance/investing/8946740/Five-investment-hazards.htmlQuestor: Gold v Platinum 2012http://telegraph.feedsportal.com/c/32726/f/568575/s/1acca621/l/0L0Stelegraph0O0Cfinance0Cmarkets0Cquestor0C89457660CQuestor0EGold0Ev0EPlatinum0E20A120Bhtml/story01.htmAudio: Which precious metal will fare better next year?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1acca621/mf.gif' border='0'/>Telegraph tipsRussiaEuropean GoldfieldsQatar sovereign wealth fundinvestmentTelegraphincomeGreeceETFsprecious metalsFTSEAnglo Amercanstock marketsQuestor PlusQatarQuestordividendsyieldsFTSE 100podcastshare tipsGold gold price 2012capital growthSouth AfricaGarry Whiteshare pricessharesBHP BillitonAquarius PlatinumFri, 09 Dec 2011 11:29:15 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/markets/questor/8945766/Questor-Gold-v-Platinum-2012.htmlInteractive Business Bullet: Euro crisis, Bellway, Property funds and the week aheadhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1acb9cfd/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C89455960CInteractive0EBusiness0EBullet0EEuro0Ecrisis0EBellway0EProperty0Efunds0Eand0Ethe0Eweek0Eahead0Bhtml/story01.htmTop stories: Euro crisis, Bellway, Property funds and the week ahead<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1acb9cfd/mf.gif' border='0'/>EU banksBusiness BulletNicolas SarkozyAsia PacificsectorsInvestmentearningsGermanyTelegraphWhitbreadRobert MillerVideobank loansCityIMFJapaninvestingPamure GordonEuropean Central BankG20China inflationbank debtChinaprofitdividendsFTSE 100housingBellwayEU summit December 9thPremier InnEurozoneAngela Merkelmarketscredit ratingsCosta Coffeecommercial propertyFrancebrokerCarpetrightshareshomesCPIFri, 09 Dec 2011 10:54:52 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8945596/Interactive-Business-Bullet-Euro-crisis-Bellway-Property-funds-and-the-week-ahead.htmlInteractive Business Bullet: Bank rate, Tesco, StanChart and the Euro crisishttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ac526d1/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C89430A240CInteractive0EBusiness0EBullet0EBank0Erate0ETesco0EStanChart0Eand0Ethe0EEuro0Ecrisis0Bhtml/story01.htmTop stories: Bank rate, Tesco, StanChart and the Euro crisis<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ac526d1/mf.gif' border='0'/>S&PEU banksBusiness BulletNicolas SarkozyAsia PacificsectorsInvestmentearningsGermanyTelegraphRobert MillerVideoJ SainsburyStandard & PoorsCityIMFinvestingEuropean Central BankG20UK banksBank of EnglandTescoStandard CharteredprofitdividendsInternational Monetary Fundsovereign bondsFTSE 100EU summit December 9thEurozoneAngela Merkelsupermarketsmarketscredit ratingscredit ratingFrancesharesUS Federal ReserveWm MorrisonThu, 08 Dec 2011 13:30:47 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8943024/Interactive-Business-Bullet-Bank-rate-Tesco-StanChart-and-the-Euro-crisis.htmlBank rate, Tesco, StanChart and the Euro crisishttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ac457d5/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C894290A60CBank0Erate0ETesco0EStanChart0Eand0Ethe0EEuro0Ecrisis0Bhtml/story01.htmTop stories: Bank rate, Tesco, StanChart and the Euro crisis<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ac457d5/mf.gif' border='0'/>S&PEU banksBusiness BulletNicolas SarkozyAsia PacificsectorsInvestmentearningsGermanyTelegraphRobert MillerVideoJ SainsburyStandard & PoorsCityIMFinvestingEuropean Central BankG20UK banksBank of EnglandTescoStandard CharteredprofitdividendsInternational Monetary Fundsovereign bondsFTSE 100EU summit December 9thEurozoneAngela Merkelsupermarketsmarketscredit ratingscredit ratingFrancesharesUS Federal ReserveWm MorrisonThu, 08 Dec 2011 12:05:30 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8942906/Bank-rate-Tesco-StanChart-and-the-Euro-crisis.htmlJorma Korhonen: Anthony Bolton's replacement departs after failing to make thousands investors a single pennyhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ac603e4/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89428190CJorma0EKorhonen0EAnthony0EBolton0Ereplacement0Edeparts0Eafter0Efailing0Eto0Emake0Ethousands0Einvestors0Ea0Esingle0Epenny0Bhtml/story01.htmJorma Korhonen, the manager charged with taking over half of Anthony Bolton's hugely popular Fidelity Special Situations fund, has left the company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ac603e4/mf.gif' border='0'/>Thu, 08 Dec 2011 11:45:54 GMTPaul Farrowhttp://www.telegraph.co.uk/finance/personalfinance/investing/8942819/Jorma-Korhonen-Anthony-Bolton-replacement-departs-after-failing-to-make-thousands-investors-a-single-penny.htmlJorma Korhonen: Anthony Bolton replacement leaves Fidelity after abysmal performancehttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ac457d8/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89428190CJorma0EKorhonen0EAnthony0EBolton0Ereplacement0Eleaves0EFidelity0Eafter0Eabysmal0Eperformance0Bhtml/story01.htmJorma Korhonen, the manager charged with taking over half of Anthony Bolton's hugely popular Fidelity Special Situations fund, has left the company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ac457d8/mf.gif' border='0'/>Thu, 08 Dec 2011 11:45:54 GMTPaul Farrowhttp://www.telegraph.co.uk/finance/personalfinance/investing/8942819/Jorma-Korhonen-Anthony-Bolton-replacement-leaves-Fidelity-after-abysmal-performance.htmlJorma Korhonen: Anthony Bolton replacement departs after abysmal performancehttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ac3872b/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89428190CJorma0EKorhonen0EAnthony0EBolton0Ereplacement0Edeparts0Eafter0Eabysmal0Eperformance0Bhtml/story01.htmJorma Korhonen, the manager charged with taking over half of Anthony Bolton's hugely popular Fidelity Special Situations has left the company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ac3872b/mf.gif' border='0'/>Thu, 08 Dec 2011 11:45:54 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/personalfinance/investing/8942819/Jorma-Korhonen-Anthony-Bolton-replacement-departs-after-abysmal-performance.htmlAfganistan to mine gold and copperhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1abd90ec/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C8940A8950CAfganistan0Eto0Emine0Egold0Eand0Ecopper0Bhtml/story01.htmThe war-torn nation is raising investment to mine commodities.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1abd90ec/mf.gif' border='0'/>Wed, 07 Dec 2011 15:49:23 GMTGarry Whitehttp://www.telegraph.co.uk/finance/personalfinance/investing/8940895/Afganistan-to-mine-gold-and-copper.htmlGeithner pressure, Stagecoach, Kesa Electricals and Bank decisionhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1abbad68/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C8940A1140CGeithner0Epressure0EStagecoach0EKesa0EElectricals0Eand0EBank0Edecision0Bhtml/story01.htmTop stories: Geithner, Stagecoach, Kesa and Bank decision.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1abbad68/mf.gif' border='0'/>S&PBusiness BulletNicolas SarkozyAsia PacificsectorsInvestmentearningsGermanyTelegraphRobert Millermegabus.comVirgin RailVideoStandard & PoorsCometQECityIMFinvestingDartyEuropean Central bankWest CoastKesa ElectricalsBank of Englandprofitdividendssovereign bondsFTSE 100EU summit December 9thEurozoneAngela Merkelmarketscredit ratingscredit ratingFranceasset purchasessharesEast Midlands TrainsUS Federal ReserveStagecoachWed, 07 Dec 2011 11:03:20 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8940114/Geithner-pressure-Stagecoach-Kesa-Electricals-and-Bank-decision.html'A great opportunity to buy equities will emerge'http://telegraph.feedsportal.com/c/32726/f/568575/s/1ab4e04c/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89383880CA0Egreat0Eopportunity0Eto0Ebuy0Eequities0Ewill0Eemerge0Bhtml/story01.htmShares will stage "a very strong and sustained rally" if the debt crisis is solved, investment strategist says.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ab4e04c/mf.gif' border='0'/>Tue, 06 Dec 2011 15:55:14 GMTRichard Evanshttp://www.telegraph.co.uk/finance/personalfinance/investing/8938388/A-great-opportunity-to-buy-equities-will-emerge.htmlInteractive Business Bullet: S&P ratings, Retailers, Wolseley progress and crude oilhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1ab25c69/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C89376470CInteractive0EBusiness0EBullet0ESandP0Eratings0ERetailers0EWolseley0Eprogress0Eand0Ecrude0Eoil0Bhtml/story01.htmTop stories: S&P ratings, Retailers, Wolseley progress and energy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1ab25c69/mf.gif' border='0'/>S&PBusiness BulletNicolas SarkozyAsia PacificsectorsWolseleyInvestmentearningsbuilding materailsGermanyTelegraphRobert MillerhaircutsVideoStandard & PoorsCityIMFinvestingFinlandEuropean Central bankCyprusbuilding suppliesBank of EnglandWest Texas IntermediateprofitdividendsWTIsovereign bondsFTSE 100EU summit December 9thEurozoneAngela Merkelthe Netherlandscrudeoilmarketscredit ratingscredit ratingFrancesharesUS Federal ReserveBrentTue, 06 Dec 2011 10:48:04 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8937647/Interactive-Business-Bullet-SandP-ratings-Retailers-Wolseley-progress-and-crude-oil.htmlWith-profits: top tipshttp://telegraph.feedsportal.com/c/32726/f/568575/s/1aafdc8c/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89358140CWith0Eprofits0Etop0Etips0Bhtml/story01.htmThe decision to ditch your poorly performing with-profits fund is not straightforward.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1aafdc8c/mf.gif' border='0'/>Tue, 06 Dec 2011 05:25:04 GMTTeresa Hunterhttp://www.telegraph.co.uk/finance/personalfinance/investing/8935814/With-profits-top-tips.htmlBattle to reinstate generous solar panel tariffs goes to the High Courthttp://telegraph.feedsportal.com/c/32726/f/568575/s/1aad2e9d/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89360A60A0CBattle0Eto0Ereinstate0Egenerous0Esolar0Epanel0Etariffs0Egoes0Eto0Ethe0EHigh0ECourt0Bhtml/story01.htmInstallers and Friends of the Earth challenge the Government over its plan to slash tariffs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1aad2e9d/mf.gif' border='0'/>Mon, 05 Dec 2011 15:31:22 GMTRosie Murray-Westhttp://www.telegraph.co.uk/finance/personalfinance/investing/8936060/Battle-to-reinstate-generous-solar-panel-tariffs-goes-to-the-High-Court.htmlScottish Widows launches Britain's cheapest trackerhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1aab9854/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89356860CScottish0EWidows0Elaunches0EBritains0Echeapest0Etracker0Bhtml/story01.htmNew Scottish Widows tracker fund to charge 0.11pc a year - but investors must also pay platform to access fund.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1aab9854/mf.gif' border='0'/>Mon, 05 Dec 2011 12:32:57 GMTEmma Wallhttp://www.telegraph.co.uk/finance/personalfinance/investing/8935686/Scottish-Widows-launches-Britains-cheapest-tracker.htmlThe 10 biggest Financial Services Authority fineshttp://telegraph.feedsportal.com/c/32726/f/568575/s/1aaac8f4/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C893550A80CThe0E10A0Ebiggest0EFinancial0EServices0EAuthority0Efines0Bhtml/story01.htmHSBC has been handed a �10,5m fine, but it is not the biggest financial slap on the wrist handed down by the FSA.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1aaac8f4/mf.gif' border='0'/>Mon, 05 Dec 2011 11:47:18 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/personalfinance/investing/8935508/The-10-biggest-Financial-Services-Authority-fines.htmlInteractive Business Bullet: Markets, Eurozone, Tui and recruitment firm Michael Pagehttp://telegraph.feedsportal.com/c/32726/f/568575/s/1aaabd5b/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C89352910CInteractive0EBusiness0EBullet0EMarkets0EEurozone0ETui0Eand0Erecruitment0Efirm0EMichael0EPage0Bhtml/story01.htmTop stories: Markets, Eurozone, Tui and recruitment firm Michael Page.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1aaabd5b/mf.gif' border='0'/>China services sectorBusiness BulletAussie dollarThomas CookNicolas SarkozyAsia PacificsectorsInvestmentearningsGermanyTelegraphRobert MillerTui TravelVideoCityIMFMichael Page InternationalinvestingEuropean Central Bankrecruitment agencyChinaprofitdividendsFTSE 100EU summit December 9thEurozoneminersAngela MerkelHSBCprofit warningmarketscredit ratingsFrancesharesReserve Bank of AustraliaMon, 05 Dec 2011 10:50:46 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8935291/Interactive-Business-Bullet-Markets-Eurozone-Tui-and-recruitment-firm-Michael-Page.htmlEurozone crisis: surviving the second credit crunchhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1aa32bba/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89329390CEurozone0Ecrisis0Esurviving0Ethe0Esecond0Ecredit0Ecrunch0Bhtml/story01.htmThe eurozone crisis has taken a turn for the worst unnerving savers once more.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1aa32bba/mf.gif' border='0'/>Sun, 04 Dec 2011 09:43:31 GMTPaul Farrowhttp://www.telegraph.co.uk/finance/personalfinance/investing/8932939/Eurozone-crisis-surviving-the-second-credit-crunch.htmlQuestor: Why infrastructure investment is still a good bethttp://telegraph.feedsportal.com/c/32726/f/568575/s/1a99851c/l/0L0Stelegraph0O0Cfinance0Cmarkets0Cquestor0C89287540CQuestor0EWhy0Einfrastructure0Einvestment0Eis0Estill0Ea0Egood0Ebet0Bhtml/story01.htmQuestor: Garry White's round-up of road and rail tips .<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a99851c/mf.gif' border='0'/>waste disposalTelegraph tipsrecyclinginvestmentTelegraphwaste managementSouth West WaterincomeUnited UtilitiesFTSEutilitiesPennonstock marketsQuestor PlusViridor WasteQuestordividendsyieldsFTSE 100podcastwater companiesshare tipscapital growthGarry Whitewasteshare pricesenvironmentsharesFri, 02 Dec 2011 12:00:34 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/markets/questor/8928754/Questor-Why-infrastructure-investment-is-still-a-good-bet.htmlInteractive Business Bullet: Eurozone, Berkeley, Ladbrokes and the week aheadhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1a988ed1/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C8930A50A80CInteractive0EBusiness0EBullet0EEurozone0EBerkeley0ELadbrokes0Eand0Ethe0Eweek0Eahead0Bhtml/story01.htmTop stories: Eurozone, Berkeley, Ladbrokes and the week ahead.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a988ed1/mf.gif' border='0'/>Tony Pidgley888Business BulletSportingbetThomas CookNicolas SarkozyAsia PacificsectorsInvestmentearningsGermanyTelegraphRobert MillerTui TravelVideoCityIMFinvestingEuropean Central bankland banksBank of EnglandBerkeleyLadbrokesprofitdividendsFTSE 100housingMonetary Policy CommitteeEU summit December 9thMulberryEurozoneAngela MerkelLondon Evening Standardmarketscredit ratingsFranceVeronica WadleysharesUS Federal ReserveFri, 02 Dec 2011 10:43:00 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8930508/Interactive-Business-Bullet-Eurozone-Berkeley-Ladbrokes-and-the-week-ahead.htmlWhy not buy before share prices rise?http://telegraph.feedsportal.com/c/32726/f/568575/s/1a930e32/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Ccomment0Ciancowie0C89285580CWhy0Enot0Ebuy0Ebefore0Eshare0Eprices0Erise0Bhtml/story01.htmAfter the FTSE 100 index of Britain's biggest shares suffered its longest losing streak in nearly nine years, it might be profitable to remember that the best time to invest is when you least feel like doing so.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a930e32/mf.gif' border='0'/>Thu, 01 Dec 2011 15:35:31 GMTIan Cowiehttp://www.telegraph.co.uk/finance/personalfinance/comment/iancowie/8928558/Why-not-buy-before-share-prices-rise.htmlChristmas shares: five to buy, five to avoidhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1a8961ab/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89255480CChristmas0Eshares0Efive0Eto0Ebuy0Efive0Eto0Eavoid0Bhtml/story01.htmWhich retailers will trade well and which will struggle?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a8961ab/mf.gif' border='0'/>Wed, 30 Nov 2011 14:14:58 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/personalfinance/investing/8925548/Christmas-shares-five-to-buy-five-to-avoid.htmlDiary of a Private Investor: 'Why I am buying gold'http://telegraph.feedsportal.com/c/32726/f/568575/s/1a8961ad/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89254230CDiary0Eof0Ea0EPrivate0EInvestor0EWhy0EI0Eam0Ebuying0Egold0Bhtml/story01.htmDiary of a Private Investor on his change of tack.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a8961ad/mf.gif' border='0'/>Wed, 30 Nov 2011 11:39:27 GMTJames Bartholomewhttp://www.telegraph.co.uk/finance/personalfinance/investing/8925423/Diary-of-a-Private-Investor-Why-I-am-buying-gold.htmlDiary of a Private Investor: 'I'm preparing for the worst'http://telegraph.feedsportal.com/c/32726/f/568575/s/1a88958e/l/0L0Stelegraph0O0Cfinance0Cpersonalfinance0Cinvesting0C89254230CDiary0Eof0Ea0EPrivate0EInvestor0EIm0Epreparing0Efor0Ethe0Eworst0Bhtml/story01.htmDiary of a Private Investor: why I am buying gold.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a88958e/mf.gif' border='0'/>Wed, 30 Nov 2011 11:39:27 GMTJames Bartholomewhttp://www.telegraph.co.uk/finance/personalfinance/investing/8925423/Diary-of-a-Private-Investor-Im-preparing-for-the-worst.htmlBusiness Bullet: Markets, bank downgrades, American Airlines and Marston's foodhttp://telegraph.feedsportal.com/c/32726/f/568575/s/1a878b5c/l/0L0Stelegraph0O0Cfinance0Cfinancevideo0Cbusinessbullet0C89253520CBusiness0EBullet0EMarkets0Ebank0Edowngrades0EAmerican0EAirlines0Eand0EMarstons0Efood0Bhtml/story01.htmTop stories: Markets, Marston's food, bank downgrades and airline mergers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568575/s/1a878b5c/mf.gif' border='0'/>BAChina banksBusiness BulletVirgin AtlanticCathay PacificAsia PacificsectorsInvestmentMarston'searningsTelegraphRobert MillerGoldman sachsVideoStandard & PoorsCityinvestingIAGairline mergersPiano & PitcherairlinesprofitdividendsWarren BuffetFTSE 100UBSEurozoneAmerican AirlinesHSBCmarketscredit ratingsRyanairPaddy PowerpubsUS debtsharesRoyal Bank of ScotlandWed, 30 Nov 2011 11:19:05 GMTTelegraph Staffhttp://www.telegraph.co.uk/finance/financevideo/businessbullet/8925352/Business-Bullet-Markets-bank-downgrades-American-Airlines-and-Marstons-food.html

Source: http://www.telegraph.co.uk/finance/personalfinance/investing/rss

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India 282 all out v Australia 333 - lunch

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


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

India 282 all out v Australia 333 - lunch

CRICKET-INDIA-LUNCH:India 282 all out v Australia 333 - lunch

MELBOURNE (Reuters) - India were bowled out for 282 to bring up lunch on the third day of the first test against Australia at the Melbourne Cricket Ground on Wednesday.

Scores: Australia 333 (R. Ponting 62, E. Cowan 68, U. Yadav 3-106, Z Khan 4-77) v India 282 (V. Sehwag 67, R. Dravid 68, S. Tendulkar 73, B. Hilfenhaus 5-75, P. Siddle 3-63)

(Compiled by Ian Ransom; Editing by Greg Stutchbury; 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/india-282-all-out-v-australia-333-lunch_640535.html

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The 9 Top Value-Creating Pharmaceutical Companies

"I think I've been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I've underestimated it," Warren Buffett's business partner, Charlie Munger, once said. "And never a year passes but I get some surprise that pushes my limit a little farther."

For corporate boards, using bad incentives for management pay can be disastrous. (Think Lehman Brothers.) Incentives based on singular metrics such as revenue growth, EBITDA, return on equity, or earnings per share are easily manipulated and gamed. Fortunately, EVA momentum provides a better alternative.

Creator Bennett Stewart of EVA Dimensions, who also co-created EVA (Economic Value Added), calls EVA momentum "the only percent metric where more is always better than less. It always increases when managers do things that make economic sense."

So what does this mean for investors? A positive reading on EVA momentum means a company has created value by increasing its EVA, and a negative EVA momentum means EVA has decreased and less value is being created. EVA momentum is one of the few performance measurements, if not the only one, with such a clear dividing line between good and bad performance.

The best companies, then, create value in excess of their cost of capital, as reflected by positive EVA momentum. The higher the EVA momentum, the faster management is creating value.

Let's look at the pharmaceutical industry and see the most effective producers of value as measured by EVA momentum over the past quarter and year, as well as the three-year trend. The companies are ranked by percentile versus the Russell 3000. The limitations I've set are that the company must have more than a $500 million market cap and be traded on a major U.S. exchange.

Company

Russell 3000 Percentile

3-Year Trend

Past Year

Past Quarter

1 Akorn (Nasdaq: AKRX��) 100 12.2% 39.5% 64.6%
2 Jazz Pharmaceuticals (Nasdaq: JAZZ��) 99 12.6% 12.6% 17.9%
3 Questcor Pharmaceuticals (Nasdaq: QCOR��) 97 11.9% 131.5% 162.4%
4 Salix Pharmaceuticals (Nasdaq: SLXP��) 96 2.9% 13.4% 12.6%
5 ViroPharma (Nasdaq: VPHM��) 95 6.1% 6.3% 2.6%
6 Novo Nordisk (NYSE: NVO��) 93 2.4% 8.7% 11.5%
7 Optimer Pharmaceuticals (Nasdaq: OPTR��) 90 6.5% 30.0% (33.2%)
8 Dr. Reddy's Laboratories (NYSE: RDY��) 88 2.4% 3.3% 2.8%
9 Bristol-Myers Squibb (NYSE: BMY��) 88 3.3% 2.9% 5.1%

Source: EVA Dimensions LLC.

Akorn leads the industry with a 39.5% EVA momentum in the past year, as well as with its three-year trend of 12.2%, placing the company in the top 1% of the Russell 3000.

Businesses with high EVA momentum are effectively creating value. It will be interesting to see how useful this extremely new metric proves to be for companies and investors. If it lives up to its promise, it will be an essential tool in investors' arsenals.

Another tool for better investing
Most investors don't keep tabs on their companies' fundamental value. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

If you're interested in continuing your research on a stock mentioned here, add it to My Watchlist to stay abreast of all of our Foolish analysis.

Source: http://feeds.fool.com/~r/usmf/foolwatch/~3/mfNVkUlkOuA/the-9-top-value-creating-pharmaceutical-companies.aspx

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National Oilwell Varco Passes This Key Test

There's no foolproof way to know the future for National Oilwell Varco (NYSE: NOV��) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable (AR) and days sales outstanding (DSO) to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can also suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like National Oilwell Varco do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is National Oilwell Varco sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

anImage

Source: Capital IQ, a division of Standard & Poor's. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

Source: Capital IQ, a division of Standard & Poor's. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter (EOQ) receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars (DSO) indicates a trend worth worrying about. As another reality check, it's reasonable to consider what a normal DSO figure might look like in this space.

Company

LFQ Revenue

DSO

�National Oilwell Varco $3,513 73
Cameron International (NYSE: CAM��) $1,741 57
Halliburton Company (NYSE: HAL��) $5,935 66
Baker Hughes (NYSE: BHI��) $4,741 85

Source: Capital IQ, a division of Standard & Poor's. DSO calculated from average AR. Data is current as of last fully reported fiscal quarter. LFQ = last fiscal quarter. Dollar figures in millions.

Differences in business models can generate variations in DSO, so don't consider this the final word -- just a way to add some context to the numbers. But let's get back to our original question: Will National Oilwell Varco miss its numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, National Oilwell Varco?s year-over-year revenue grew 19.4%, and its AR grew 19.4%. That looks OK. End-of-quarter DSO decreased 0.1% from the prior-year quarter. It was down 6.4% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

What now?
I use this kind of analysis to figure out which investments I need to watch more closely as I hunt the market's best returns. However, some investors actively seek out companies on the wrong side of AR trends in order to sell them short, profiting when they eventually fall. Which way would you play this one? Let us know in the comments below, or keep up with the stocks mentioned in this article by tracking them in our free watchlist service, My Watchlist.

Source: http://feeds.fool.com/~r/usmf/foolwatch/~3/OrqcTxJ7MWo/national-oilwell-varco-passes-this-key-test.aspx

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UK taxpayers shoulder 'subsidised stagnation' in housing sector

As with the banks, the state has backed developers without getting enough in return for its help, the Institute for Public Policy Research (IPPR) argued in a new report.

?The Government?s new Housing Strategy does not make sufficient demands of the housebuilders,? said Nick Pearce, its director. ?Instead, it offers them public land, money and guarantees without a serious quid pro quo.?

Companies have been able to prioritise trading land over building homes and, without change, housebuilding risks another ?lost decade?, even as the UK faces a housing crisis, the think tank claimed.

England is set for a shortfall of 750,000 homes in 15 years, with 250,000 homes needed to be built every year to close the gap, the think tank calculates.

However, annual construction of new homes has fallen below 100,000.

In a bid to tackle the shortage and help people on to the housing ladder, the Government has unveiled measures such as a �420m fund offering developers loans or equity investment to unlock stalled sites. The IPPR argues that housebuilders need to do more in return. It called for land trading and housebuilding to be split and for strict conditions to apply to public land released to developers, meaning that they have to build quickly at a lower profit.

State intervention in the sector has so far blocked the ?creative destruction? which would have released land, benefiting new entrants, the think tank said.

Housing minister Grant Shapps said the IPPR had ?missed the fundamental point of the Housing Strategy which is designed to get much better value for money?.

The industry denied that it prioritises land trading and said separating the process from building would not create more homes. A spokesman for the Home Builders Federation said: ?Home building for the private market is sales led, not building led.?

Source: http://telegraph.feedsportal.com/c/32726/f/568312/s/1b5232b0/l/0L0Stelegraph0O0Cfinance0Cnewsbysector0Cconstructionandproperty0C89753950CUK0Etaxpayers0Eshoulder0Esubsidised0Estagnation0Ein0Ehousing0Esector0Bhtml/story01.htm

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Japanese industrial output falls

The unemployment rate adjusted for seasonal differences was unchanged in November from the previous month, at 4.5pc, the government also announced.

Industrial output dropped a seasonally adjusted 2.6pc in November, according to the Ministry of Economics, Trade and Industry. It was the first decline in two months.

It said industries contributing most to the decrease were transport equipment, information and communication electronics equipment and iron and steel. Large and small passenger cars and mobile phones were among the commodities adding to the decline.

In other economic data, the government said the core Consumer Price Index fell 0.2pc in November from year-earlier figures, its second consecutive monthly fall. The index, which does not include fresh foods, was 99.6 against the 2010 base of 100.

Core CPI for Tokyo in December - considered an indicator of future trends for the entire country - fell 0.3pc.

In recent years, Japan has wrestled with deflation, or falling prices, which can drag on economic growth.

The ratio of job offers to job seekers was 0.69 in November, an improvement from 0.67 the previous month.

Figures released by the Ministry of Internal Affairs said there were 2.8m people unemployed in Japan in November

Source: http://telegraph.feedsportal.com/c/32726/f/568312/s/1b5232ae/l/0L0Stelegraph0O0Cfinance0Ceconomics0C89798840CJapanese0Eindustrial0Eoutput0Efalls0Bhtml/story01.htm

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Catastrophes Slash U.S. Insurers&rsquo; Profits

December 28, 2011, 12:03 AM EST

By Noah Buhayar

Dec. 27 (Bloomberg) -- U.S. property and casualty insurers? profitability fell to the lowest level since 2008 as losses from natural disasters exceeded gains in sales and investment income.

Insurers posted a 1.9 percent annualized rate of return on policyholders? surplus, or cushion against unexpected claims, in the nine months through Sept. 30, according to a statement today from the Property Casualty Insurers Association of America. That?s the lowest since the 1.2 percent return in 2008, when the industry faced losses from Hurricane Ike and on investments.

Travelers Cos. and Allstate Corp. are among insurers raising prices for coverage to boost shareholder returns after claims from storms and low interest rates pressured results. Policy sales rose to $115.7 billion in the third quarter from $111.1 billion a year earlier, according to PCI.

The increase in sales ?was blunted somewhat by deteriorating underwriting results,? Robert Gordon, PCI?s senior vice president for policy development and research, said in the statement. ?Current low interest rates and the Federal Reserve?s pledge to keep interest rates low for some time to come continue to put pressure on insurers? investment income.?

Catastrophes, including Hurricane Irene, which made landfall in North Carolina in August then lashed the U.S. East Coast with rain and winds, cost the industry $9.5 billion in the third quarter. That compares with $2.9 billion a year earlier.

Net investment income rose 1.4 percent industrywide to $11.7 billion in the third quarter, according to the statement, which was jointly produced with ISO, a unit of Verisk Analytics Inc., and the Insurance Information Institute, a trade group.

Travelers, Allstate

Travelers Chief Executive Officer Jay Fishman said at an investor conference this month that his company is driving ?for improved rate and terms? across its business. Tornadoes in April and May wiped out the New York-based insurer?s second- quarter profit. Irene contributed to a drop in net income in the third quarter.

Allstate, the largest publicly traded U.S. home insurer, said in October it received approval from regulators to boost rates for its main line of homeowners? coverage in 15 states in the third quarter. The premium increases averaged about 14 percent, the Northbrook, Illinois-based insurer said.

Insurers? net income plunged in the period 69 percent from a year earlier to $3.2 billion, according to the statement.

--Editors: Dan Reichl, William Ahearn

To contact the reporter on this story: Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

Source: http://www.businessweek.com/news/2011-12-28/insurers-profitability-plunges-most-since-2008-on-catastrophes.html

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Protesters vow to camp near Wall St. indefinitely (AP)

NEW YORK ? In a small granite plaza a block from the New York Stock Exchange, a group of 20-somethings in flannel pajama pants and tie-dyed T-shirts are plotting the demise of Wall Street as we know it.

They have been there since Saturday, sleeping on cardboard boxes, eating pizza and take-out dinners that were paid for by donations to their cause. There are only about 200 of them left now, though they started out 1,500 strong.

Welcome to the headquarters of "Occupy Wall Street," a place where topless women stood Wednesday morning on the corner shouting "I can't afford a shirt!" while construction workers eagerly snapped photos on their phones. A small group of the protesters wound their way through the streets of lower Manhattan escorted by police officers, blaring bullhorns and chanting "Resist! Stand Up! There comes a time when the people rise up!"

What, exactly, they are protesting is somewhat unclear. When asked what they are fighting, they gave a variety of responses ranging from Wall Street to global warming. On its website, the group proclaims: "We, the people of the United States of America, considering the crisis at hand, now reassert our sovereign control of our land."

Sam Wood, an unemployed 21-year-old, said he was there because he doesn't think it's fair "the way that the rich get more breaks than the poor."

"What I really want to achieve is to educate people about what's going on with the economy right now," he said as he bumped into another protester waving an American flag. "A couple of the ways that we might be able to fix it, you know?"

A barricade was set up to protect the NYSE building as they marched past it. Some people in suits stopped in the street to gaze curiously at the scene in the plaza ? a strange jumble of people carrying signs, playing snare drums and openly smoking marijuana on benches.

Police watched the proceedings carefully after a scuffle Tuesday that led to seven arrests and one injured protester. Most of those arrested were given disorderly conduct summonses and released.

Four more protesters were arrested Wednesday for disorderly conduct and released.

Ryan Reed, 21, a senior at Rutgers University, was missing class to attend the protest, but his professors are letting him make up the work by writing papers about the experience.

"The enemy is the big business leaders of Wall Street, the big oil company leaders, the coal company leaders, the big military industrial leaders," he said. "I came out here because what I see ? and what I feel most people in this country see ? is an economy and a system that's collapsing."

Kaitlyn Leigh, a 21-year-old from Rochester, N.Y., said she is going to move out of her apartment and stay here indefinitely because she's been so inspired by what she's seen.

"It's about creating a community in this liberated space," she said. "It's about having the ability to have people's needs met, whether it be food, clothing, shelter."

Every afternoon, the group convenes at the center of the plaza for what they call a "General Assembly," a meeting during which they map out their tactics for the next day. Forbidden from using a microphone ? they don't have the proper permits ? the group got creative.

"What we do is a people's microphone," Reed said. "So the person who's speaking says a couple of words and then the whole crowd repeats it so everyone can hear. It's actually beautiful."

For Reed, at least, an ideal outcome for the situation would be a near-shutdown of Wall Street, with protesters descending upon Wall Street and preventing bankers from getting to their desks. But he realizes that may not happen anytime soon ? particularly not before he returns to class next week.

"So far we haven't had the numbers to clog the kind of traffic we need to clog," he admitted.

Though the crowd has thinned as the days pass, the group is vowing to stick it out as long as possible. Bill Csapo, an unofficial spokesman for the protesters, said they've gained access to a commercial kitchen and plan to start cooking meals for the group in the next day or two. On Saturday night, people donated $10,000 worth of pizzas.

Csapo, of Cleveland, Tenn., hasn't actually traveled to Manhattan for the event. He got involved by meeting some of the organizers on Internet forums, which is how the whole thing got started. But he said the occupiers ? a term he prefers instead of "protesters" ? aren't leaving anytime soon.

"I'm currently unemployed and loving what I'm doing," Leigh said. "I'm going to stay here until the end."

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

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