August 2011

Nuts, soy, avocado beat low-fat diet

August 24, 2011

(MENAFN – Arab Times) People who ate a diet rich in foods that lower cholesterol, such as nuts, soy, avocado, olive oil and oats, saw a bigger drop in cholesterol than people on a low-fat diet, said …

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Oil up near $86 as battle rages on in Libya

August 24, 2011

(MENAFN – Youm7) Confusion over the extent of the rebels’ hold on the Libyan capital and a rally in stock markets drove oil prices higher Tuesday, a day after they fell in anticipation of the end …

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Oil higher in Asia as traders eye Libya crisis

August 24, 2011

(MENAFN – Youm7) Crude rose in Asia Tuesday as traders monitored the crisis in Libya, with rebels claiming victory but one of Moamer Kadhafi’s sons insisting his father was still in control, …

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Merkel minister calls for gold reserves as collateral for bailouts

August 24, 2011

(MENAFN – Saudi Press Agency) A leading member of Chancellor Angela Merkel’s government called Tuesday for cash-strapped eurozone members to use their gold reserves as collateral for any future …

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Stocks hike 3.9% in Seoul

August 24, 2011

(MENAFN – Saudi Press Agency) Shares bounced back Tuesday on the Seoul stock exchange on bargain hunting following recent heavy losses. The benchmark Kospi index rose 65.98 points, or 3.9 per cent, …

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Japan stocks rise 1.2% in overseas gains

August 24, 2011

(MENAFN – Saudi Press Agency) Japanese shares jumped 1.2 per cent Tuesday as overnight gains on Wall Street and European markets improved investor sentiment. The benchmark Nikkei 225 Stock …

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German Minister Demands Gold Collateral For Future EU Bailouts

August 24, 2011

(MENAFN – Qatar News Agency) In yet a fresh sign of increasing argument in the euro zone over bailouts to peripheral economies, the German Labor Minister and Christian Democratic Union CDU deputy …

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Standard & Poor’s President to Step Down

August 24, 2011

(MENAFN – Qatar News Agency) Standard & Poor’s credit ratings has announced it will replace President Deven Sharma with Citibank NA Chief Operating Officer Douglas Peterson. Sharma, 55, will leave …

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DSK May File Civil Charges Against Maid

August 24, 2011

NEW YORK — Former International Monetary Fund leader Dominique Strauss-Kahn might take legal action in civil court against the hotel maid who accused him of sexually assaulting her in a now-dismissed criminal case and in her ongoing civil suit, one of his lawyers said Tuesday. Strauss-Kahn, a former French presidential candidate, could file his own claims to counter housekeeper Nafissatou Diallo’s lawsuit, “and that’s certainly a consideration,” lawyer Benjamin Brafman said in an interview with The Associated Press. “Because she did lie, and he has suffered enormous damages as a result of those lies.” A court Tuesday dismissed the attempted-rape and other charges against Strauss-Kahn, who resigned his IMF post, spent five days in jail and then spent about six weeks on high-priced house arrest before being freed from it July 1. The dismissal came after prosecutors said they couldn’t pursue the case because of doubts about Diallo’s credibility and a lack of other evidence to prove a forced sexual encounter. Diallo wasn’t truthful with prosecutors about several aspects of her life and changed her account of what she did right after when she claims she was attacked, prosecutors said. Strauss-Kahn’s lawyers have long said the encounter at a luxurious Manhattan hotel, though brief, was consensual. But while Diallo’s account of it has been recounted in interviews, in her lawsuit and in the now-defunct prosecution, the married Strauss-Kahn doesn’t want to detail his version of what happened, Brafman said. “What happened in that room, so long as we have now confirmed that it wasn’t criminal, is really not something that needs to be discussed publicly,” Brafman said in the AP interview. “You can engage in behavior that you’re not proud of, and maybe some people might consider it inappropriate – it doesn’t mean that you committed a crime. And it’s not something that you may want to discuss, at the end of the day.” Diallo’s lawyer, Kenneth Thompson, didn’t immediately respond to an email inquiry about the possibility of Strauss-Kahn filing his own claims in civil court. Thompson has said it’s “utter nonsense” to say the encounter was consensual. Earlier Tuesday, he blasted the dismissal of the case, saying prosecutors “would not allow a woman to have her day in court.” Diallo says Strauss-Kahn chased her down in his hotel suite on May 14, grabbed her crotch, propelled her to the ground and forced her to perform oral sex. His semen was found on her uniform, and a gynecological exam found a mark that her lawyer holds up as evidence of an attack but prosecutors say could have resulted from a number of other things. From the start, Strauss-Kahn’s lawyers considered her account implausible, partly because neither she nor Strauss-Kahn had bruises reflecting a forceful attack, Brafman said. The Associated Press does not usually name people who say they are victims of sexual assault unless they come forward publicly, as Diallo, an immigrant from Guinea, has done. ___

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Naveen Jain: Tips for Entrepreneurial Philanthropy

August 24, 2011

Helping people get what they need most in life is at the heart of successful philanthropy. It is no coincidence that fulfilling peoples’ needs is also the foundation of a successful business. I see no contradiction between them. Any venture, whether it is commercial or philanthropic, should aim at improving the lives of as many people as possible. Both should use technological tools to overcome infrastructure barriers and build scale. And both must be self-sustaining to be considered truly successful. I want to share with you what I have learned about philanthropy as person who was born in modest circumstances, as a boy who learned to take advantage of opportunities, as a businessman seeking new ways to create something of value for others, as a philanthropist trying to overcome global challenges, and as a father who wants the best for his children. At each stage of my life I have found that the values that matter most are those of an entrepreneur . . . someone who takes a risk and makes things happen; someone who is not afraid to fail because there are lessons to be learned from failure; someone who is focused on a mission rather than a static. I am convinced that only by applying the values of an entrepreneur to philanthropy will you ever be able to meet the needs of the greatest number of people. I understand human needs. I grew up where far too many people lived day to day without elemental needs like food and shelter. Compared to them I was fortunate. My father was a civil servant in the northern Indian where I was born. As a boy I saw the dire effects of poverty and illiteracy, especially on women and children. It often seemed that the only thing separating me from them was luck. But my parents didn’t believe in luck. They believed in hard work and in preparing me to take advantage of opportunity. Like many parents, they taught me to be generous but never to depend on the generosity of others. Because I was poor I had one special advantage. When you are poor, and basic survival is your concern, you have no alternative but to be an entrepreneur. You must take action to survive just as you must take action to seize an opportunity. That’s not to say no one helped me. Many generous people helped me and my family when we needed them. And that motivated me too. I promised myself to work hard so I would never be hungry and work harder still so that I could replay my neighbors’ generosity many times over – not just with money but with a clear path out of poverty. In some places the path out of poverty is through sports or other fields of excellence. In India, the path is through education. My parents drilled into me the importance of an education. It was a gift they themselves never had. I remember how my mother quizzed me in mathematics first thing in the morning and would often demand, “Don’t make me solve it for you.” Little did I know that she couldn’t solve it because she had never been taught math in school. They made sure I had the advantages they never had. I studied hard and earned an engineering degree and then an MBA. Because of my education I was ready when business opportunities began to open for Indian engineers. I seized one and used that opportunity to create many more as the founder of Moon Express, Intelius and InfoSpace. Along the way I never forgot who helped me and what I owed to them and others like me. I promised myself that one day I would be in a position to help my fellow countrymen and women, as well as anyone who is held back by lack of education, or by sexism, and grinding poverty. Today, I am privileged to be able to do that but not simply by giving money away. That is a temporary fix. Rather, I am approaching philanthropy in a strategic and systematic way just as an entrepreneur approaches a new venture. That’s the only way to make a self-sustaining difference in the world. My experiences as a child in poverty, as a business creator, and as philanthropist have taught me that there are at least four key elements for philanthropic success Overcome the Infrastructure . Many of the problems of poverty and need are really problems of physical infrastructure — not enough hospitals, too few schools, insufficient roads, bridges, and a lack of tools. This is what makes traditional philanthropy so daunting. You could build a thousand new hospitals in some parts of the world and barely make a difference. But what if you could capture the expertise of the world’s best physicians and create software that can diagnose patients remotely? Then infrastructure no longer matters. By turning an infrastructure problem into a technology challenge, you can eliminate the physical constraints of time and space. Build Scale . Technology allows you to replicate knowledge cheaply and reach many more people with it than you could in the physical world. To continue the example above, with diagnostic software you can now diagnose patients in every town, village, or farm in India. And you can do so objectively without the biases that even the best human physicians harbor. Make it Self-Sustaining . The problem now becomes, how do get this valuable diagnostic software and the device it runs on into the towns, villages, and farms where it can do the most good? You could enlist a wealthy donor to buy the devices and distribute them widely. But then you are beholden to physical constraints again — and even worse, you are dependent on a lifeline of someone else’s money. Instead of giving away $200 devices, why not allow people in the villages to rent them for $20 per month so they can go door to door making diagnoses for $5 each? That way everyone has an incentive to achieve the mission of getting the proper diagnoses to the greatest number of people. Instead of managing the whole program on your own, the program takes on a life of its own. Live an Entrepreneurial Life . By understanding and harnessing the forces that drive human behavior, you can create a self-sustaining philanthropic effort that reaches millions of people. It begins with an entrepreneurial attitude: take an idea and execute on that idea. If it doesn’t work, learn why and build on what you’ve learned. And be mission-oriented rather than goal-oriented. That way, if you do the best you can, you will always succeed. This is not simply an approach to philanthropy; it is an approach to life. Philanthropists can learn important lessons from business entrepreneurs. They both spend their time solving problems. And to be successful they both must overcome physical challenges and create self-sustaining operations. And ultimately, they must allow people to take action for their own benefit. Growing up in India I knew all I needed to change the world was one good opportunity and I prepared myself for it. When that opportunity came I was ready. I couldn’t count on luck so I created my own. Today, I’m sharing my passion for giving back with my children. I know they’ll approach the problems they want to solve in ways I never imagined and over time, research shows, if they are committed to philanthropy when they are young, they will make philanthropy a central part of their lives for years to come. That’s sustainable philanthropy. And we’re not alone. Because of the work of entrepreneurial philanthropists there are more new opportunities than ever opening up all over the world for the people who are prepared to grab them. Together, we are creating our own luck on a global scale. Find Naveen Jain on LinkedIn Twitter Google Plus Huffington Post Forbes Blogs

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Analysis: Eurozone bank doubts worse for lack of deposits

August 23, 2011

By David Henry NEW YORK (Reuters) – European banks like Societe Generale and Dexia SA are reeling from bad loans, but they are also suffering from a less obvious problem: their reliance on bond markets to fund operations. Unlike U.S. banks such as JPMorgan Chase & Co and Wells Fargo & Co , which fund a greater percentage of their loans using deposits, investor-owned banks in Europe generally depend more on borrowing in the short-term capital markets. That leaves the European banks exposed to the vagaries of bond investors, who might suddenly demand much higher rates for their money or take it all back and put a bank at the mercy of a government for a bailout Spikes in short-term rates for some European banks in recent weeks have raised fears of just that kind of meltdown. European bank shares tumbled as scared stock investors remembered 2008 when Bear Stearns and Lehman Brothers fell because of lack of ready funds to meet their obligations. The turmoil points to the need for vulnerable European banks to shrink their loan books to sizes more in line with what their deposits can support, or increase their deposit base. Analysts are also calling for more disclosure from the banks around their funding profiles. “European banking has to be rethought and recapitalized,” said one New York-based institutional investor in the money markets who declined to be named because of the risk of alienating clients. These banks find themselves in a corner. Since the 2008 financial crisis, many have been trying hard to raise more deposits, but it is proving to be tough. Deposits for investor-owned banks are more difficult to collect in Europe, where banks owned by local governments or by depositors have tax and cost advantages and a stranglehold on the market, said Michigan State University professor Rocco Huang. Competition for deposits has driven up costs, especially in Spain. Some banks are looking abroad. Dexia has branched into Turkey to get deposits, but one analyst said that might not be sustainable. The history of booming countries shows that such new money is unlikely to be as dependable as deposits in long-established accounts, said Morningstar bank analyst Erin Davis. Dexia declined to comment. RISKY FUNDING At Paris-based Societe Generale, loans are 1.2 times as much as deposits, according to data compiled by Keefe, Bruyette & Woods. Dexia, the Franco-Belgian bank headquartered in Brussels, has 2.5 times as much money out on loan as it has in deposits. At New York-based JPMorgan in comparison, loans use only two-thirds of the money the bank holds in customer deposits. To make up the shortfalls, European banks rely on capital markets, including short-term money markets, which can be risky at times of uncertainty like now. (For graphic, please click on http://r.reuters.com/mez33s ) “In the funding markets, people tend to shoot first and ask questions later,” said Mark Pawlak, a strategist and senior vice president at Keefe, Bruyette & Woods in New York. “There’s a certain amount of that going on now.” Credit default swaps, a kind of insurance against default, on Societe General more than doubled to 303 basis points on August 19 from the 138 points on May 31, according to Markit. The bank’s stock lost 49 percent of its value in the same time. Meanwhile, JPMorgan credit default swaps rose to just 125 basis points from 75 and its stock fell 21 percent. The downdrafts came as big U.S.-based money market funds quit rolling over billions of dollars of short-term loans to European banks. In June and July, the 10 biggest funds took back 18.4 percent, or $70 billion, of the money they had lent to European banks, according to Fitch Ratings. In a sign of how connected global finance is now, many of the funds said they backed out because they needed money in case investors wanted to cash out in the face of a U.S. government default rather than over worries about European banks. The U.S. funds still had 47 percent of their holdings in European bank instruments at the end of July. Still, the retreat of the money market funds forced the banks to replace their dollars, which stressed prices in the dollar-funding markets in a way that suggested that some institutions have had trouble getting funds, said Pawlak. The problem is exacerbated because these banks do not clearly and consistently disclose their liquidity positions, leaving investors to use inadequate proxies such as ratios of loans to deposits and adding to the uncertainty about their health, analysts said. Societe Generale tried to quell fears by giving more details from its balance sheet in an investor presentation on August 3. This past weekend, Chief Executive Frederic Oudea said in an interview in the newspaper Le Journal du Dimanche: “The bank does not have any liquidity problems. Its operations are healthy and its investment resources are intact.” A Societe Generale spokesman declined to comment further for this story. (Reporting by David Henry in New York and Steve Slater in London. Additional reporting by Ross Kerber in Boston, Lionel Laurent in Paris, and Philip Blenkinsop in Brussels; Editing by Paritosh Bansal)

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Adidas Ready To Go Barefoot

August 23, 2011

PORTLAND, Oregon — Adidas is going barefoot. The world’s second-largest athletic company unveiled its first “barefoot” training shoe Tuesday, which is designed to mimic the experience of exercising barefoot while providing the protection, traction and durability of a shoe. The Adipure Trainer, which is a cross between a glove for the feet and a traditional shoe, hits U.S. stores in November priced at $90. The barefoot shoe is part of a strategy by Adidas, which is based in Germany, to expand into the U.S. where rival Nike dominates. Adidas joins a list of athletic makers trying to tap into the small but burgeoning U.S. market of fanatical runners and gym-goers who swear by shoes designed with as little material between the wearer and the ground as possible. “People who believe barefoot is the way to go…are very emphatic about it,” said Matt Powell, an analyst with industry research organization SportsOneSource Group. “They want to spread the message. It sounds religious but some of them are evangelical about it.” The athletic shoe and clothing business has been fairly resilient during the U.S. economic downturn, but it is an industry that thrives almost entirely on new products. When it comes to shoes, the latest and greatest captures the U.S. customer. While barefoot shoes make up a tiny fraction of the $22 billion U.S. athletic shoe industry, it is one of the fast-growing categories. Sales have more than doubled in the past year to roughly $750 million, according to SportsOneSource. Nike, the world’s biggest athletic company, holds roughly 65 percent of the market and appeals to barefoot loyalists and mainstream exercise enthusiasts alike with the traditional running-shoe look of its “Free” line. Vibram has about 10 percent of the market with its Five-Finger shoe, which encases each toe separately and has come to define the style. Other big companies such as Merrell, Fila, Saucony, Asics and New Balance also have their own barefoot or so-called minimalist offerings. The design of the Adidas barefoot shoe strikes a balance between the two styles. The brightly-colored trainer, which features the trademark Adidas three stripes, covers the foot as a shoe would but with a sock-like fit and toe compartments to allow more natural movement. “The Adipure Trainer is a unique piece of equipment for elite level athletes that we’re bringing to our core consumer,” said Patrik Nilsson, president of Adidas North America. The growing U.S. barefoot market is an important one for Adidas. The company runs a close race with Nike globally, but the gap is much wider in North America. In their most recent fiscal years, Nike generated $7.58 billion in revenue in North America. Adidas, meanwhile, had roughly $4.05 billion in revenue when translated to U.S. dollars. Nike holds roughly 46 percent market share in U.S., while Adidas comes in at a distant second with about an 11 percent share. Adidas, which recently has seen its sales improve in North America, has implemented a growth strategy that relies heavily on gaining market share in the U.S. The company said it is trying to connect better to U.S. consumers through new products and marketing. The company, which has long relied on its strength as a soccer and lifestyle brand, has put a bigger push behind other sports that are big in the U.S. as well. In basketball, for example, it’s expanded its products in recent years and signed Chicago Bulls player Derek Rose, who was the NBA’s most valuable player this year. “To be successful is damn hard work day in and day out,” said Herbert Hainer, CEO of Adidas speaking from the company’s U.S. headquarters in Portland. “It’s not just basketball or having Derek Rose or Tiger Woods, or whatever. It’s a lot of different things all the time and connecting right with the consumer.” Now, Adidas is trying to connect with the barefoot movement. The theory behind the use of barefoot shoes is that the body is already optimally designed to move. Science backing up this theory suggests that traditional shoes inhibit that, which can sometimes cause the kinds of injuries that plague many runners. Fans of barefoot shoes say they allow them to better use the body’s natural motions and strengths. The barefoot culture has long had proponents, but it caught on widely in 2009 after publication of Christopher McDougall’s book “Born to Run,” which explored the history and benefits of barefoot running. The movement got further attention last year when Harvard biologist and runner Daniel Lieberman published a paper in the journal Nature that concluded that running barefoot seems to be better for the feet, producing far less impact stress compared to those in traditional running shoes. The practice of running in barefoot shoes has been a somewhat controversial topic, though. The odd appearance of the shoes sometimes causes heads to turn in parks. Some races across the country will not allow people to run in them. And some barefoot shoe wearers themselves have reported injuries after using them. Shoemakers and health professionals say many of the injuries are a result of people using the shoes too quickly. They suggest people trying to make the switch from traditional shoes to barefoot ones do so gradually — increasing distance over time — to let the body adjust to how the body was naturally meant to move. “A lot of engineering went into making your foot a high performance machine,” said Mark Verstegen, founder of Athletes’ Performance, a training and performance organization for elite athletes that works with Adidas. “Using your foot’s natural power and movement will help you strengthen muscles you never knew you had in your feet, lower legs and throughout your core.”

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Exclusive: Groupon taps Citydeal team to boost sales

August 23, 2011

By Nivedita Bhattacharjee BANGALORE (Reuters) – No. 1 daily deals website Groupon Inc is turning to executives from Citydeal — the European business it bought last year — to help boost slowing growth in its domestic business, ahead of a planned public listing. The company appointed Christopher Muhr as its sales chief, taking over from Darren Schwartz, a source familiar with the matter who did not want to be named, said. Muhr is moving from London where he was managing director of Groupon UK. The move seems aimed at tapping into the strength of the company’s international team as growth in its domestic market starts to mature. In June, Groupon filed to raise up to $750 million in an IPO, expected to be one of the most high-profile new listings of 2011. Groupon’s valuation has dropped 20 percent to $16 billion in the latest private auction of shares, according to brokerage Wedbush Securities. Wedbush partly blamed that on the market slump, but also highlighted slowing sales growth as a concern. “Groupon’s recently amended S-1, indicating rapidly decelerating Q2 growth, did little to help drive investor interest in the shares,” Wedbush wrote in a note to investors on Tuesday. Second-quarter revenue at the company, which offers group-buying deals on everything from spa treatments to flying lessons, was up 36 percent, down from the 63 percent increase it posted in the first quarter. Groupon ended the second quarter with just over 115 million subscribers — an increase of 32.6 million subscribers — which Wedbush called “disappointing.” Most of the slowdown in growth was in the U.S., Groupon’s most mature market. Revenue per subscriber fell 12 percent to $8.57 in North America, according to Yipit, which tracks the daily deal industry. Joining Muhr at the company’s Chicago headquarters are members of the international management team, including fellow Citydeal co-founders Rajen Ruparell, Emanuel Stehle and Jens Hutzschenreuter, the source said. The changes were communicated to Groupon employees last week, the source said. When contacted, a Groupon spokeswoman did not immediately confirm the appointments. Germany’s Citydeal, which Groupon bought last year, was used by the company to kick-start its international operations. (Reporting by Nivedita Bhattacharjee in Bangalore; Additional reporting by Alistair Barr in San Francisco; Editing by Anthony Kurian, Sriraj Kalluvila)

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BofA shares drop, debt insurance costs jump

August 23, 2011

By Joe Rauch CHARLOTTE, North Carolina (Reuters) – Bank of America Corp shares posted their steepest drop in 2-1/2 years on Tuesday as investors worried that the biggest U.S. bank might face big writeoffs. The cost of insuring the bank’s debt against default spiked to record levels. Bank of America shares closed 1.9 percent lower at $6.30 after falling as much as 6.4 percent during the day. The shares pared losses, and credit swaps largely retraced, as a broader stock market rally helped assuage investor fears about the economy. In a blog post on Tuesday, former securities analyst Henry Blodget said the bank could have $100 billion to $200 billion of writeoffs and troubled assets to sort through. These potential write-offs could eat into a substantial portion of the bank’s $222 billion of book value. “That’s why Bank of America’s stock is tanking. The owners of that stock will be the first folks to get hit if Bank of America has to raise more capital,” Blodget wrote on Business Insider, his collection of blogs. Bank of America fired back at Blodget in a statement, calling his claims “exaggerated and unwarranted,” echoing language the U.S. Securities and Exchange Commission used in a 2003 complaint against Blodget. Blodget, a former Internet analyst at Merrill Lynch, was barred from the securities industry as part of a settlement with the SEC over alleged conflicts in his research. Bank of America said the exposures that Blodget identified as the source of possible losses were inaccurate, with his sovereign exposure being off by a factor of 10. The volley between Bank of America and Blodget was the latest example of analysts and investors disagreeing with the bank. Since June, a number of analysts have said Bank of America needs to boost its capital levels by about $50 billion to comply with new global standards. At least some of that extra capital could come from issuing stock, several analysts have said. The bank itself says it can reach target capital levels by selling assets and earning more money. The bank has some time to comply with the Basel III capital rules, which are to be phased in from 2013 through 2019. Some analysts agree. Rochdale Securities analyst Dick Bove told television news outlets on Tuesday that the bank does not need to raise capital, whatever happens to its share price, and that Bank of America has ample liquidity. Chief Executive Brian Moynihan told investors on a recent conference call that the bank did not view issuing more shares as an option, after having already diluted its shareholders so much during the financial crisis. Some analysts have suggested the bank will need to raise capital if the proposed $8.5 billion settlement over Countrywide Financial Corp-created mortgage-backed securities falls apart. Outside investors have been pushing for the bank to repurchase toxic mortgages from the securities, amid allegations the loans do not meet initial guarantees made when the securities were bought, and now total $100 billion in unpaid principal. Others said pressure on the bank is increasing the chances of a capital raise. In a note to clients, JPMorgan Chase & Co analysts upgraded Bank of America’s stock to neutral from underweight, on the belief the declining stock price and rising debt insurance costs will force a capital raise. “We think it is getting more difficult for management to ignore this sentiment,” JPMorgan Chase analysts Kabir Caprihan and Matthew Hughart said in a research note. Regulators seem generally unconcerned. At a news conference on Tuesday, the Federal Deposit Insurance Corp’s acting chairman said he is comfortable with the overall amount of capital at U.S. banks. “As a general matter I would say the answer to that is yes,” Acting Chairman Martin Gruenberg said in response to a question about the amount of capital banks are holding. DOWNWARD SPIRAL The drop in the bank’s shares on Tuesday was their fourth consecutive daily decline. “It’s on a self-fulfilling downward spiral. I don’t know what’s going to make BofA go up,” said Mark Coffelt, head portfolio manager at Austin-based money manager Empiric Advisors. The shares fell even as the KBW Bank Index and the S&P 500 Index rose 3.3 percent and 3.1 percent, respectively. Credit default swap insurance on the bank’s unsecured debt jumped as much as 65 basis points to 435 basis points, before retracing to 385 basis points, meaning it would cost $385,000 per year for five years to insure $10 million in bonds, according to Markit. The level is just under the record level of 386 in March 2009, Markit data show. Traders said weakness in credit derivatives helped fuel downward pressure on the shares, as markets feed off each other. Bank of America shares closed Tuesday at levels not seen since March 2009. The key arteries of the financial system — the ability of banks and other institutions to borrow from one another on a short-term basis — continued to show rising stress on Tuesday, but not at levels associated with the panic of 2008. The cost for a bank to borrow from another bank for three months in U.S. dollars, known as the London Interbank Offered Rate, continued to rise, hitting 0.31178 percent Tuesday morning from 0.30300 on Monday. The pressures were most acute at European banks, which continued to pay more than other banks for short-term funding. Most European institutions paid more than the LIBOR fixing. (Reporting by Joe Rauch; additional reporting by Lauren LaCapra, Jonathan Spicer, Karen Brettell and David Gaffen in New York and Dave Clarke in Washington; editing by John Wallace, Matthew Lewis and Bernard Orr)

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Carl Gibson: America Is Crumbling: Hire Us to Fix It

August 23, 2011

The drought in Texas on Friday was so severe that this month, the city of Kemp shut off the city’s water, leaving hundreds of people in the small North Texas town without a basic necessity for two days. Kemp’s pipes haven’t been updated in decades . Consecutive weeks of 100-degree days have increased demand on the city’s water system, making water more scarce as pipes break down. But as our public infrastructure crumbles, so does the spirit of the unemployed and underemployed as they face the harshest economy in memory. Though this Great Recession lies on the verge of becoming a depression, the private sector has been growing jobs in line with normal expectations during an economic recovery. The real drag on job growth is in declining public sector employment. Our unemployment crisis is a direct result of budget cuts handed down by state and federal lawmakers. Whether private or public sector, when more people are out of work in a consumer economy, demand for goods and services inevitably goes down. And with less demand, businesses have no choice but to lay off workers. We need jobs to fully recover, but jobs won’t come about until demand picks up. Demand won’t pick up until people have money to spend. So why are our leaders hell-bent on cutting public sector jobs when we need them most? Texas Gov. Rick Perry is being lauded as a job creator in the midst of recession. But as Paul Krugman pointed out last week, those jobs were a result of population growth, not Perry’s anti-government economic philosophy. The same governor who told Glenn Beck that the government doesn’t create jobs was in charge while 47 percent of all government jobs were added in his state. And the bulk of these jobs were in public education and health care — two sectors that will be forced to lay off tens of thousands due to Perry’s draconian budget . Rather than cut recklessly, Perry and other GOP leaders should recognize the necessity for public sector job growth, and put people back to work by rebuilding our cities. 75 years ago, FDR put 8.5 million Americans to work rebuilding our cities with an $11 billion investment. The jobs created through the Works Progress Administration put nearly a quarter of America’s unemployed back to work in the middle of a crippling depression. During the WPA’s 8-year stint, America’s unemployment rate decreased from 20 percent to 4 percent. Adjusted for inflation, a similar investment today would be roughly $1.7 trillion . That sounds costly, but there are two easy solutions. A financial speculation tax on Wall Street bankers who deal in risky, abstract financial instruments like credit default swaps and derivatives could raise $1.5 trillion in ten years. Closing tax loopholes that enable multinationals like Bank of America and GE to dodge billions in taxes every year could generate another $1 trillion in a decade. What better way to dig ourselves out of this recession than taxing the same corrupt bankers and corporate tax dodgers who caused this crisis in the first place? By simply creating a new WPA-style jobs program, we could lower the unemployment rate by several points, rebuild 20th-century infrastructure and accommodate the needs of a 21st-century society. But until we come together to elect leaders that will take that step, all we can do is pray. Maybe Rick Perry can help out with that.

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Dan Solin: Real Financial Experts Won’t Go on TV

August 23, 2011

If you were going to make a list of the smartest people alive in finance, you would want to consider these candidates: 1. Gene Fama : The Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. Prolific author of many peer reviewed financial articles and textbooks. The father of the efficient market hypothesis. 2. Ken French : The Roth Family Distinguished Professor of Finance at the Tuck School of Business at Dartmouth College. He is an expert on the behavior of security prices and investment strategies. He and Gene Fama are co-authors of numerous articles, including “The Cross-Section of Expected Stock Returns” and “Common Risk Factors in the Returns on Stocks and Bonds.” Fama and French are often mentioned as candidates for the Nobel Prize. Fortune Magazine included Fama and French in a list of the “smartest people alive in finance.” 3. David Swensen : The chief Investment Officer at Yale University, responsible for managing endowment assets of more than $16 billion. Author of the excellent financial book, Unconventional Success, A Fundamental Approach to Personal Investment. 4. William Bernstein : A neurologist with a PhD in chemistry, who taught himself finance. He is the author of many classic financial books, including The Intelligent Asset Allocator . Bernstein is generally considered to be one of the leading financial theorists in this country. 5. Robert Ibbotson : Professor of Finance at Yale School of Management and co-author of Stocks, Bonds, Bills and Inflation , which is the standard reference for information about investment market returns. I am sure there are other worthy candidates but few would quarrel with this list. They all have one surprising thing in common: You won’t see them on TV explaining market volatility, predicting the direction of the market or telling investors when to enter or exit the market. Why do these real experts refuse to go on TV? David Swensen gave us an insight into what he would say in a recent article in The New York Times . He has little confidence in the mutual fund industry, noting that it “…has employed market volatility to produce profits for itself far more reliably than it has produced returns for its investors.” He has less regard for brokers and advisers, noting that: “Most understand too little about financial markets to make informed decisions, intervene too frequently in counterproductive ways and gather too little information about portfolio holdings to evaluate results.” He advises individual investors “…to embrace low-cost index funds and shun the broker-driven churning of high-cost, actively managed funds.” I wanted to stand up and applaud. This is information the financial industry doesn’t want you to know. The guests on these shows primarily are from the mutual fund industry or are advisers who recommend actively managed funds — precisely those who Swensen rails against. The other “smartest people” would not differ from Swensen. The financial media understands their views would be good for investors, but bad for ratings and for their securities industry advertisers. Keep this in mind the next time you watch a self-anointed “expert” explain what investors are thinking today, or why the market did what it did. You are getting the views of those in the minor leagues, who share an agenda to keep you confused, trading, relying on them and buying their products. The smartest people alive in finance refuse to participate in this charade. Dan Solin is a Senior Vice President of Index Funds Advisors (ifa.com). He is the author of the New York Times best sellers The Smartest Investment Book You’ll Ever Read , The Smartest 401(k) Book You’ll Ever Read , and The Smartest Retirement Book You’ll Ever Read . His new book, The Smartest Portfolio You’ll Ever Own , will be released in September, 2011. The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein. Furthermore, the information on this blog should not be construed as an offer of advisory services. Please note that the author does not recommend specific securities nor is he responsible for comments made by persons posting on this blog.

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Dave Saldana: Losing on the Facts, AT&T Turns to Smears

August 23, 2011

A cornered animal is a dangerous thing. It will scratch. It will bite. It will lash out desperately in any direction to escape its predicament. And so it is that AT&T swings wildly as its $39 billion bid for T-Mobile unravels. AT&T’s deception about the need to take over T-Mobile is now in the public realm for good, exposed by its own accidental publication of an unredacted internal document on the Federal Communications Commission website. That document showed that AT&T could bring the fastest wireless service to the whole country on its own — and for a tenth of the price it would pay to take over T-Mobile . This isn’t the first gaping hole to appear in AT&T’s case. The company is already on its third “new model” explaining the benefits of the deal, because the FCC found the first two so lacking . And despite AT&T’s transparent attempts to spin the Beltway press, key members of Congress and more and more consumers are pushing the FCC and the Department of Justice to reject the merger bid because of its obvious harms to competition, jobs and our wallets . AT&T’s response is not to come up with better arguments and better data that prove the merit of its claims. AT&T is instead smearing Free Press because we had the audacity to point out that AT&T’s own data actually contradict its claims. We are labeled “extremists” in their eyes because we didn’t take their word for it. But let’s be absolutely clear about something: There is nothing “extreme” about fact checking. Let’s take a look at the facts and see what AT&T wants to cover up with its smears. AT&T has ginned up support — among governors, members of Congress, cowboys and hot air balloon enthusiasts — for its takeover of T-Mobile. The premise of this support? That 55 million Americans will never see next-generation mobile broadband service unless the government approves this deal. We’ve been saying all along this is patently false , because every one of those rural Americans will be served with Verizon’s 4G service by 2013; that AT&T already plans to serve them with its slightly slower 4G service by 2012; and that without the merger, AT&T would have to make a relatively minimal investment to upgrade those areas to the latest 4G technology, lest it cede too much competitive ground to Verizon. Well, now all those supporters have something that should make them reconsider their justification for this anti-competitive and job-killing deal . Press reports have exposed how AT&T’s own filings with the FCC show that covering these 55 million Americans would cost at most $3.8 billion, or a 90-percent discount off the price tag of this merger. In response to this damning news, AT&T rolled out a few of its own Baghdad Bobs to tell reporters, “Move along, nothing to see here.” That didn’t work, so now AT&T has turned to lying about what its original letter said and responding to Free Press and other critics with a schoolyard-style “nuh-uh” response. However, this plan won’t work if the fourth estate continues to examine the cracks in the wall that AT&T itself created. Some reporters will be content to play AT&T’s smear campaign as a he said/she said between the company and Free Press, despite the fact that it’s not our word against theirs — it’s their word against theirs . Others, hopefully, will look behind AT&T’s bluster and see that AT&T isn’t arguing the merits because the facts hurt its case. So for muckrakers, stringers, reporters and bloggers (or federal regulators or Congress members) who want to put AT&T’s ministers of truth on the record about the facts rather than name-calling, here are five lines of questioning you might pursue: 1. AT&T, why is a $39 billion takeover necessary, when a $3.8 billion investment in your network would allow you to expand broadband service on your own? If the unredacted document is “consistent with [your] public statements,” why was it kept confidential and taken out of the record after it was made public? 2. AT&T, you’ve promised to build your 4G LTE service to 97 percent of Americans by 2018 if the merger is approved. But if the merger is nixed, what will your LTE network look like in 2018? Can you afford to have Verizon zoom ahead of you with its promise of full nationwide advanced LTE coverage by 2013, attacking you with more embarrassing “there’s a map for that” advertisements? 3. AT&T, the $3.8 billion you are now saying was too costly amounts to about half a billion dollars a year in extra investment needed between now and 2018, the year you are promising to finish building LTE to 97 percent of the country. Last year, you spent about $10 billion on wireless capital investments, and you brought in nearly $60 billion in revenues and $16 billion in wireless profits. Is increasing your investment by 5 percent really too much to justify, even given the “marketing and competitive benefits of doing so”? 4. AT&T, you proposed this merger to T-Mobile’s parent company on January 15. Press reports say this bid occurred right around the time when management rejected your own team’s plan to build out LTE to 97 percent of the country. Did you “reject” this proposal because it was too expensive, or did the knowledge that you were about to attempt a previously unthinkable merger, one where you would need a good carrot to hold out for political support, factor into your decision not to build out on your own? 5. What are your actual plans for jobs should this merger go through? You’ve said there are no current plans to cut the workforce, but your pitch to investors says you’ll save $10 billion in “synergies.” Why won’t you reveal your specific plans for T-Mobile workers? Most giants think they can get away with just about anything, because they usually do. When they fail, it’s often because a reporter or two keeps pushing and makes hay out of unforced errors like AT&T’s inadvertent disclosure. This kind of accountability journalism is why we at Free Press fight for a more diverse and better media, and we hope those out there on the beat will use their access and sources to do their profession, and the public, a favor by digging further.

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Lawsuit Filed Over Mark Zuckerberg’s $100 Million Donation

August 23, 2011

TRENTON, N.J. — The American Civil Liberties Union of New Jersey on Tuesday filed a lawsuit against the state’s biggest city for refusing to release records related to a $100 million gift pledged to its schools by Facebook founder Mark Zuckerberg. The ACLU filed the lawsuit against Newark on behalf of a parents group denied access to records requested under New Jersey’s Open Public Records Act. The initial April 1 request sought to review correspondence among Zuckerberg, Newark employees including Democratic Mayor Cory Booker, state officials and others involved in the deal. “As parents, as taxpayers and as citizens, we have a need and right to know how the money pledged to Newark’s public schools will ultimately serve Newark’s public school students,” said Laura Baker, who filed the initial request and has a granddaughter in the school system. The $100 million pledge was announced a year ago by Republican Gov. Chris Christie, Booker and Zuckerberg as they appeared together on Oprah Winfrey’s talk show. Zuckerberg described the gift as a “challenge grant” to Booker, who’s trying to raise $100 million more to match what Zuckerberg has promised to contribute over five years. The gift was presented as a way to try to improve the district, which has been plagued for years by low test scores, poor graduation rates and crumbling buildings. The district was taken over by the state in 1995 after instances of waste and mismanagement, including the spending of taxpayer money by school board members on cars and restaurant meals. Parents said they want to know more information about how the highly publicized gift would be used. After requesting several extensions to have time to locate documents, the city denied the request on July 19 in a letter, saying the communications between Booker and Zuckerberg “were not made in the court of the mayor’s official duties.” The letter went on to say that if Booker were exercising his official duties, the documents were privileged. What’s known as “executive privilege” protects the governor from disclosing records that contain advice to him on matters related to his executive functions, but it doesn’t apply to other elected officials in the state, ACLU-NJ president Frank Corrado said. “By invoking executive privilege, the City of Newark has waded into unchartered territory in an attempt to make sure these records never see the light of day,” Corrado said. A telephone call to Booker’s office was not immediately returned Tuesday. Facebook has offices in Palo Alto and Menlo Park, Calif.

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America Is GE’s Tax Haven

August 23, 2011

Washington politicians say high corporate tax rates are driving U.S. companies to invest offshore where tax rates are lower. But that is not General Electric’s experience.

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Roppel Returns as AHFC Board Chair

August 23, 2011

ANCHORAGE, AK–(Marketwire – Aug 23, 2011) – Alaska Housing Finance Corporation (AHFC) board of directors, at its annual meeting, this year held in Cordova, re-elected Frank Roppel of Wrangell to serve as the board chair. Governor Murkowski appointed Roppel to the board of directors in July 2003, and he has served as chair since that time. Roppel previously served on the Alaska State Housing Authority (ASHA) and AHFC boards for 12 years in the ’70s and ’80s. He retired from Alaska Pulp Corporation in 2001. Roppel is also chairman of the Alaska Gasline Development Corporation, a subsidiary of AHFC, which recently presented a feasibility study of an in-state gas line aimed at providing gas at the lowest possible cost to a majority of Alaskans.

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Stillwater Mining Company Assigns New Management Responsibilities

August 23, 2011

BILLINGS, MT–(Marketwire – Aug 23, 2011) – STILLWATER MINING COMPANY ( NYSE : SWC ) ( TSX : SWC.U ) announced today a reorganization of responsibilities within its management team.

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Georges Ugeux: Could Europe Provoke a World Crisis?

August 23, 2011

For the past few weeks, I have been observing reactions (from all sides) about Europe’s debt crisis, and its responsibility for the U.S. market decrease. It has made me wonder: could a worsening of the European crisis drag the United States and the world into a catastrophe worse than the 2008 collapse of Lehman Brothers? The European sovereign debt crisis has far-reaching implications: if it were only Greece, or even Portugal and Ireland, it would probably have a limited impact. Unfortunately, the contagion of other countries seems to be spreading to Spain and Italy. The market reaction to rumors of a possible downgrading of France’s sovereign debt rating in August showed how sensitive world markets would be to such an event. The brave attempts of the European summit of July 21 and the Sarkozy-Merkel meeting of Aug. 8 were lacking in both substance and action, and investors were deeply disappointed. The credibility deficit of the European leadership seems insurmountable at this point, as their statements and subsequent actions are simply contradictory The European banking situation is much more troubling. It is actually scary. The largest Eurozone banks lost between 30 and 50 percent of their market capitalization since July 1. Since the July 21 summit that was supposed to have resolved the European crisis, Eurozone banks lost the following: A risk of European economic recession is not excluded. France and Germany announced a zero growth rate for the second quarter, and Greece is currently suffering from a 5-percent recession. The combination of these three factors explains the apprehension of investors and capital markets toward Europe. Although it is a European problem, could it create issues outside Europe? The most immediate risk is through the banking system. Should the current banking situation lead to a liquidity crisis, we would revert back to August 2007, when banks no longer trusted one another. The interbank financing reached unbearable levels of interest rates at that time, and Central Banks were the only substantial liquidity provider. What ammunition would be available to counter such a crisis? The Federal Reserve and the European Central Bank are not in the same position as in 2007. Both have grown their balance sheets at record levels. The assets they hold are not all of prime quality. Their situation is far from being as solid as it was four years ago. Last but not least, at the current levels of indebtedness, government financing is no longer available for bailouts. In Europe, the guarantees of the European Fund of Financial Stability are increasing the indebtedness of the guarantors: 37 percent of those guarantees are granted by Italy, Spain, Portugal and Ireland, who themselves are in difficulty. The importance of France (20 percent) and Germany (27 percent) as guarantors is therefore crucial. Unfortunately, the French indebtedness (82 percent of GDP) and budget deficit (7 percent in 2010) make its own creditworthiness vulnerable. This short review of the European situation cannot hide the risk of further deterioration. European countries ought to make serious improvements to their fiscal situations in their 2012 budgets. Their failure to do so would not only aggravate the European decline but start a new global crisis. Will they have the courage and the consensus to do so? Based on the last 18 months of Greek crisis, one is allowed to have doubts.

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How Many Lawmakers Actually Have Economic Degrees?

August 23, 2011

WASHINGTON — Lawmakers try to convince their constituents that they have the best answers for jumpstarting the economy and lowering the deficit, but the majority them aren’t actually economics experts — at least not academically. Eight out of 10 members of Congress lack an academic background in economics or business, according to a new project called ” Defeat the Debt ” out of Employment Policies Institute, a fiscally conservative think tank. Only 8.4 percent of federal lawmakers have a degree in economics, and 13.7 percent have a degree in business or accounting. Over half of the members of Congress (55.7 percent) hold a degree in a government-related or humanities field. EPI’s breakdown of their study: “Members of Congress are expected to provide answers for our country’s spending and economic crises,” Michael Saltsman, a research fellow at EPI, said in a press release. “But it appears many of them might have difficulty answering Econ 101 questions.” In an interview with The Huffington Post, Saltsman acknowledged that not majoring in economics or business does not mean lawmakers are incapable of solving economic difficulties. “There have been a lot of great representatives over the years who haven’t had this background, and I think it’s possible to do your job without it and do it well without it,” he said. “However, I think that right now, the nature of the policy problems we’re confronting now suggest having a familiarity with economics is really a net plus.” Saltsman added that an understanding of basic economics allows Congress to understand what is at stake in policy debates. “Your first couple weeks of economics class you learn a lot of scarcity and trade offs. You have people with unlimited wants and desires and a limited number of resources to satisfy that,” he said. “These are the sorts of trade offs that Congress is going to have to make when talking about the debt and talking about the economy.” The study excluded 24 members of Congress without a specific degree, as well the non-voting delegates from Guam, Virgin Islands, District of Columbia, Puerto Rico, the Northern Mariana Islands and American Samoa. The focus was on undergraduate degrees, but lawmakers with an advanced degree relevant to economics or business, such as a Master in Business Administration, were classified according to the advanced degree.

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Rep. John D. Dingell: Nothing Should Be More Important Than Creating Jobs in America

August 23, 2011

Passing the recent deal to raise the debt ceiling stabilizes our economy by renewing confidence in the U.S. government’s ability to meet its obligations. Part of the deal provided for the establishment of a bipartisan “super committee” to provide recommendations on how to tackle the budget deficit. The committee of twelve members, chosen by Democratic and Republican Party leaders from both Congressional houses, will take on the difficult task of reducing our budget deficit by $1.5 trillion over the next 10 years, with a bipartisan solution due before Thanksgiving. While this committee works against its November 23 deadline, we must keep our nation’s priorities in mind. We must continue to protect this country. We must not permit the middle class to shoulder the entire burden of balancing our nation’s budget. Most Americans agree that any budget deficit reduction plan must include revenue increases; however, any revenue increases must elicit contributions from all Americans regardless of income. We need to make tough choices, but this cannot be accomplished without shared sacrifice. This will require lengthy and thorough dialogue between all parties, where will we need to come together and put the good of the American people above all other interests. I will not vote for any measure this committee makes without a clear demonstration that it involves shared sacrifice by all. I cannot vote for a budget that decimates the programs that middle class Americans rely on, when Wall Street is still getting billions in unjustified tax breaks. I understand that certain aspects of our social entitlement programs must be adjusted to ensure solvency for future generations, and the passage of the health care reform act was the first step in that process. But we still need to recognize that with a still sputtering economy, these programs are more important than ever, and serve as a tremendous help to families nationwide. Now with this historic debt deal in place, it is time to turn the page and focus on the real problems facing Americans, namely jobs. Nothing should be more important than creating jobs in America. With a national unemployment rate of 9.2% and an unemployment rate of 10.5% in Michigan, creating jobs has to be policy makers’ number one priority. Congress must not stop focusing on job creation to instead only concentrate on the budget deficit detour while countless Americans are looking for work. This is not going to be an easy task, but I am fully committed to doing everything I can to help Americans find employment and ensuring the financial security of their families over the years to come. We as politicians cannot be distracted from job creation for the sake of political gamesmanship at the cost of the American taxpayer. I will not fall victim to this, and I call on my colleagues in Congress to do the same.

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Obama Talks With Warren Buffett, Ford CEO In Preparation For Jobs Speech

August 23, 2011

In preparation for a major jobs address to be delivered after Labor Day, President Obama spoke on the phone with Warren Buffett, the CEO of Berkshire Hathaway, and Alan Mulally, the CEO of Ford Motor Co., on Monday, a White House spokesman has told reporters, according to The Hill . The president, currently vacationing in Martha’s Vineyard, reportedly called to discuss his new job-creation plan , the details of which he is expected to announce in a speech sometime after Labor Day , according to White House principal deputy press secretary Josh Earnest. Earnest told reporters that Obama and Buffett discussed how to “spur investment and increase economic growth,” according to The Hill . They also discuss the country’s widening federal deficit. With Mulally, Obama discussed the auto and manufacturing industries, with a particular focus on how the auto sector has dealt with supply disruptions caused by the Japanese earthquake earlier this year. Buffett, who penned a widely read op-ed for the New York Times this month that called for wealthy Americans to pay more taxes, has consulted with the president before. Last summer , Obama met with Buffett to discuss the economic slowdown and energy reform. In December, Obama met with Buffett , as well as Bill and Melinda Gates, to discuss the economy, philanthropy and national competitiveness. Obama met with Buffett and the Gateses again in July to speak more about their philanthropic efforts. In an interview with Bloomberg TV last month, Buffett expressed skepticism that the government could do much to influence the ebb and flow of the economy. “Government gets blamed too much and it may get too much credit when things do improve,” Buffett said. “Government’s a factor, but I would say by far the biggest factor in corrections of the business cycle over time is what I would call the natural regenerative powers of capitalism.” Mulally, for his part, was part of a group of business leaders who met with Obama in the summer of 2008 , during the presidential campaign. Mulally has since met with Obama in other group settings and has consulted with White House officials to discuss fuel economy standards and the outlook for the auto industry. Few details are known about the jobs plan Obama is developing. The president has already called for the establishment of an infrastructure bank, and for unemployment benefits and the payroll tax holiday to be extended. The plan is also believed to target the nation’s long-term unemployed in particular, possibly by opening new training programs for the out-of-work and creating tax incentives for employers to hire more.

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Paula Wilson Appointed President and CEO of JCR and JCI

August 23, 2011

OAKBROOK TERRACE, IL–(Marketwire – Aug 23, 2011) – The Joint Commission today announced the appointment of Paula Wilson as president and chief executive officer of Joint Commission Resources (JCR) and Joint Commission International (JCI). In this role Wilson will direct all operations of JCR and JCI.

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Tintri Announces Global Expansion, Commences Operations in EMEA and APAC Markets

August 23, 2011

Citing Strong Domestic Growth and Increasing International Interest, Company Announces International Channel Partner Program and Appoints Industry Veteran Marcus Chambers as VP of EMEA Operations

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Chinese Manufacturing Sector Shrinks at a Slower Pace this Month

August 23, 2011

The Chinese industrial sector signals some improvements during the month, where China’s economy continued to introduce some positive signs after the series of rising interest rates this year, adding …

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Kagara Limited (ASX:KZL) Announce Financial Results for Year Ending 30 June 2011

August 23, 2011

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Kagara Limited (ASX:KZL) (“Kagara” or “the Company”) today announced an underlying net profit after tax (excluding non-recurring items) of …

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Asia Business News (ABN Newswire) Launches Multi-Lingual IR and PR Web Hosting Service for Public Companies

August 23, 2011

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Asia Business News (ABN Newswire) has launched a service for public companies for the display of their Investor Relations and Public …

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Asian Activities Report for August 23, 2011: Whitehaven Coal (ASX:WHC) Increased Total Coal Resources by 21.5 Million Tonnes

August 23, 2011

http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Whitehaven Coal Limited (ASX:WHC) said today that its Total Coal Resources have increased in the past half year from 1,750 Mt to 1,771.5 Mt, …

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stocks inch higher, shaking off 4 weeks of losses

August 23, 2011

(MENAFN – Saudi Press Agency) U.S. stock indexes are closing with modest gains after a four-week losing streak, according to AP. The Dow Jones industrial average gave up an early gain of 200 …

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Gold prices rises on fear of another US recession

August 23, 2011

(MENAFN – Saudi Press Agency) Gold prices are climbing on fears about what’s next for the slowing global economy, according to AP. Gold ended Monday at $1,892 an ounce. Investors are buying gold …

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Gold up

August 23, 2011

(MENAFN – Saudi Press Agency) Gold for current delivery closed at $1,888.80 per troy ounce Monday on the New York Mercantile Exchange, up from $1,848.90 late Friday. …

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Wall street ends flat, weakness remains

August 23, 2011

(MENAFN – Saudi Press Agency) U.S. stocks ended little changed on Monday after four weeks of losses as investors were hesitant to take big risks without a catalyst for buying, according to …

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Toyota and Ford to collaborate on hybrid trucks

August 23, 2011

(MENAFN – Saudi Press Agency) Toyota Motor Corp and Ford Motor Co will work together to develop hybrid trucks and SUVs that will be ready for market by the end of the decade, the two companies said …

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Japan stocks decline

August 23, 2011

(MENAFN – Saudi Press Agency) Japanese shares opened lower in Monday morning trading after losses on Wall Street and European markets. The benchmark Nikkei 225 Stock Average had lost 7.88 points, …

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China’s Great Wall Motor H1 profit rises 109%

August 23, 2011

(MENAFN) China’s Great Wall Motor said that as a result of growing demand over sport-utility vehicles and cars, in 2011′s first six months, the country’s largest pick-up trucks maker’s profit surged …

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EU- Manufacturing, services sectors at slowest in 2 yrs

August 23, 2011

(MENAFN) European manufacturing and services grew in August at a steady pace which is considered to be the slowest in two years, indicating that the EU is losing its place as an important backer in …

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Hong Kong inflation continues to rise at 7.9%

August 23, 2011

(MENAFN) The Chinese government said that Hong Kong’s consumer price index continues to rise and reached 7.9 percent from a year earlier after a 5.6 percent increase in June, reported …

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Ford, Toyota intend to cooperate to build hybrid system

August 23, 2011

(MENAFN) Ford’s product development chief, Derrick Kuzak, said that since the US started to tighten its fuel-economy rules, Ford Motor Co. along with Toyota Motor Corp. would join forces to build a …

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India to spend USD7.6b to build new ports

August 23, 2011

(MENAFN) The Indian joint secretary at the Ministry of Shipping, Rakesh Srivastava, said that as the country planned to boost its merchandise exports, by the year 2017, the ministry would spend …

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Kelly Jo Anderson Appointed to the Plumbing-Heating-Cooling-Contractors Association (PHCC) Vice President

August 23, 2011

EL CAJON, CA–(Marketwire – Aug 23, 2011) – Kelly Jo Anderson, Sales and Service Manager at Anderson Plumbing Heating & Air, has been appointed Vice President of the Plumbing-Heating-Cooling-Contractors Association – San Diego. Kelly Jo’s induction took place at the PHCC installation dinner at the Hyatt Regency Mission Bay.

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Nominum Names Gary Messiana Chief Executive Officer

August 23, 2011

Industry Veteran With Customer-Centric Approach to Continue Company’s Growth Trajectory

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Mitch Joel: New Media by Design

August 23, 2011

Why is it that the majority of online news sources all look the same? There is no doubt that news as we know it has forever changed because anyone and everyone can report on an incident live and in the moment. It’s hard for the most respected traditional media outlets to break major news events in this day and age. There’s even been some recent discussion online about whether or not any one outlet can break news anymore with an exclusive report because of our always on/always connected world. In fact, it’s not uncommon for major news outlets to be following the social media channels to source stories as they happen. Look no further than the announcement that Osama bin Laden had been killed and you’ll find a short-step to a tweet by IT consultant and Abbottabad, Pakistan resident, Sohaib Athar , who unknowingly busted the Navy SEAL’s cover when he tweeted , “Helicopter hovering above Abbottabad at 1AM (is a rare event)” as the dramatic military operation was happening live and in real-time. Things got even more Twitter-centric when Keith Urbahn (former Defense Secretary Donald Rumsfeld ‘s chief of staff) tweeted , “So I’m told by a reputable person they have killed Osama Bin Laden. Hot damn,” nearly one hour prior to the official announcement from President Obama to the media and public. While CNN would like to take credit, it could be argued that Twitter is one of the many digital places where the real news is unfolding before our eyes… long before the journalists get their scoops. What could the news look like now? With apps like Flipboard and people saving interesting online snippets in places like Instapaper , the look and feel of our news is beginning to morph, but the look and feel has not been re-invented and this is a very curious thing. For the most part, we have a title, subtitle, byline, date of publishing, body of text and — if they’re more web-centric — reader comments. Some of the more forward-thinking online publishers may include more updated information as the story unfolds, but the common/only way of knowing this is by a “last updated” insert that resides next to the date of the published piece (more often than not, it’s hard to tell which parts of the content have been updated). We fail to realize that text is now three-dimensional. The Web is not a printed sheet of paper and those publishing content online should experiment with what that means. Because of links, people creating their own content on a similar theme and the constant evolution of a news story, we have to look at better ways to both present and keep the content fresh, up-to-date and more interesting. Recently, the CEO of an up-and-coming pharmaceutical company was injured in an accident. The individual was someone I knew, personally, but was — for the most part — an acquaintance. I was interested in staying apprised of their situation, but the online channel wasn’t much help. The only news published online was a copy/paste of the articles that ran in the respective newspapers. It would be interesting if these types of news items became more three-dimensional by allowing people with information to update the news item (perhaps the publishers could then vet this information and put a star next to items they have validated to be accurate). Pushing that idea further, the news item could then be updated but readers could go “back in time” to see how the versioning has evolved from when it was first reported. Why not allow readers to “subscribe” to the specific news item and they can be notified (by RSS or email) when the news item gets updated (and this includes entirely new articles about the same issue)? This is what will make the digital news more interesting. It won’t only make the news online more interesting, it may actually make it worth paying for. In fact, if done well (pushing beyond just how the news is reported and looking at the overall layout and design) it could make digital news worth more than what we’re currently paying for news and information. The trick (of course) is in making it better. Currently, even the most engaging blogs and mobile apps are nothing more than an evolution of what was available in print. The hard work of making the new media worth paying for isn’t only about the quality of the content, it’s also about making the actual platform more engaging by design and function. The good is news is that anything is possible. The bad news is that most media brands see it as an impossible task. Mitch Joel is president of Twist Image — an award-winning digital marketing agency. HIs first book, Six Pixels of Separation , named after his highly-successful blog and podcast of the same name is a business and marketing bestseller.

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White House Moves Plan To Ax Hundreds Of Regulations

August 23, 2011

VINEYARD HAVEN, Mass. — The White House is revealing plans to save businesses $10 billion by scrapping hundreds of government regulations found to be outdated, unfair or unnecessary. Administration officials say the savings will be realized over a five-year period. The plan was described Tuesday by Cass Sunstein, administrator of the White House Office of Information and Regulatory Affairs, in a column in the Wall Street Journal in advance of a formal announcement as President Barack Obama vacations at Martha’s Vineyard, Mass. After last year’s election setback, Obama launched a concerted outreach to the business community, vowing to scrutinize federal regulations that companies consider to be an excessive burden. He at the time his goal was to scrap “dumb” rules without weakening ones that are needed to protect consumers and the environment.

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How Democrats Hurt Jobs

August 23, 2011

The airplane’s aft section arrived early Monday morning. That’s what they’d been waiting for at the final assembly plant in North Charleston, S.C. They already had the wings, the nose, the tail — all the other major sections of Boeing’s new 787 Dreamliner. With the arrival of the aft, the 5,000 nonunion workers in the plant can finally begin to assemble their first aircraft — a plane three years behind schedule and critical to Boeing’s future.

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Jared Bernstein: Self-Inflicting Our Economic Wounds

August 23, 2011

Just because we’ve got the debt ceiling debate behind us doesn’t mean we’re finished with economic masochism. The president was last seen trying to pivot to the jobs agenda, but the “fiscal consolidation” crowd is never far behind. So it seemed like a good time to reflect on the costs of acting too soon — that is, aggressively attacking the budget deficit before the economy is strong enough to move forward without fiscal support. Some new research by Goldman Sachs (“The Speed Limit of Fiscal Consolidation,” subscription required) provides a strong warning. The figure shows the impact on real GDP growth of a 1% of GDP consolidation (which for the US would mean a $150 billion reduction of the deficit) either through cutting spending or raising taxes. What’s particularly useful about the Goldman Sachs estimate is that they simulate the Federal Reserve doing nothing to offset the contractionary effect of the fiscal contraction. Source: GS, The Speed Limit of Fiscal Consolidation, Figure 9 In many cases, when there’s risk that deficit reduction would slow growth, the Fed will offset that threat with looser monetary policy (lower interest rates). But what if the Fed has used up that ammo already — they’re at the “zero bound”, meaning they’ve already lowered the interest rate they control to zero (and they’re unwilling to use less conventional ordnance, like quantitative easing)? In that case, as the figure shows, real GDP is projected to fall between 1% and 1.5% after two years, and more after three years. According to the researchers: For 2012 we expect fiscal restraint of about 1¼% of GDP. Given the zero bound, this adjustment could be expected to lower real GDP by almost 2% by 2014 — that is, shave off one percentage point off growth for two years. That’s probably about an extra point of unemployment over two years, or another 1.5 million unemployed added to the jobless rolls. Of course, if growth is much stronger by then, we could perhaps afford to sacrifice some of it to get on a better fiscal path, but it’s very hard to imagine it will be, at least for the next few years. All of which is to say two things: #1, we need a kick-ass jobs plan, and not just on paper but at work in the economy; and #2, we need to hold off on the fiscal consolidation for a few years. That won’t make any difference to the long term deficit, but it will make a lot of difference to working families. And needless to say, we need a very different politics — one that would accommodate numbers one and two. This post originally appeared at Jared Bernstein’s On The Economy blog.

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