september

German exports climb 3.8% in September

November 10, 2009

German exports climb 3.8% in September

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Buffett’s Firm Berkshire Hathaway Sees Profits Triple

November 8, 2009

Berkshire Hathaway said its net profit was $3.2bn (£1.9bn) in the three months to September, compared to $1.1bn in the same period last year.

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U.S. Jobless Rate Jumps to 26-Year High of 10.2%, Posing Risk to Recovery

November 7, 2009

By Timothy R. Homan Nov. 7 (Bloomberg) — The unemployment rate in the U.S. jumped to 10.2 percent in October, the highest level since 1983, threatening the emerging economic recovery and giving President Barack Obama and Democrats a bigger hurdle to overcome before next year’s Congressional elections. Payrolls fell by 190,000 last month, more than forecast by economists, a Labor Department report showed yesterday in Washington. The jobless rate rose from 9.8 percent in September. Factory payrolls dropped by the most in four months, and the average workweek held at a record low. Treasury two-year notes rallied on bets the Federal Reserve is more likely to maintain its pledge to keep interest rates near zero. The figures prompted Obama, who signed a bill yesterday extending jobless benefits, to promise new measures to find jobs for some of the 15.7 million unemployed Americans. “This will have a chilling effect on consumer confidence and business confidence,” said Joseph Brusuelas , a director at Moody’s Economy.com in West Chester, Pennsylvania. “It does look like unemployment will creep much higher.” Two-year note yields dropped to 0.85 percent late yesterday, and touched the lowest level since May. The Standard & Poor’s 500 Stock Index rose 0.3 percent to close at 1,069.3, after falling as much as 0.7 percent. Payrolls were forecast to drop 175,000 after an initially reported 263,000 decline for September, according to the median estimate of 84 economists surveyed by Bloomberg News. The jobless rate was projected to rise to 9.9 percent. Homebuyer Tax Credit Obama signed into law a measure extending a tax credit of up to $8,000 for homebuyers and benefits for unemployed workers. He promised to pursue further measures to create jobs. “My economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and business to make buildings more energy efficient,” additional tax cuts, and more steps to ease the flow of credit to small business and promote exports, he said yesterday at the White House. For congressional Democrats facing challengers in midterm elections next year, the continuing erosion in the job market puts them at risk. Voters on Nov. 3 overwhelmingly cited unease with the economy and worries about jobs as they ousted the Democratic governor of New Jersey and installed a Republican governor in Virginia after eight years of Democratic rule there. Obama carried both states in 2008. The U.S. economy has lost 7.3 million jobs since the recession began in December 2007, when the unemployment rate stood at 4.9 percent. Since Obama took office in January, the economy has lost 3.49 million jobs. Obama Stimulus The administration said last week that the $787 billion stimulus package plan signed into law in February was directly responsible for saving or creating about 640,000 jobs. The so-called underemployment rate — which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking — reached a record 17.5 percent in October from 17 percent, yesterday’s report showed. “We’ve got lots of people just giving up and leaving the labor force,” said Julia Coronado , a former Fed economist now at BNP Paribas in New York. “Consumer incomes are under pressure, and that raises questions about the sustainability of the improvement we’ve seen in consumer spending.” Johnson & Johnson, the world’s largest health-products company, is among those cutting payrolls amid concern spending will cool as government-assistance programs wane. The New Brunswick, New Jersey-based company said Nov. 3 it will shrink its workforce by as much as 7,000 workers. Record-Low Week The average work week held at a record low of 33 hours in October. Average weekly earnings rose to $617.76 from $616.11 a month earlier. Workers’ average hourly earnings were 2.4 percent higher than October 2008, the smallest gain since 2004. Factory payrolls dropped 61,000 after decreasing 45,000 in September, yesterday’s report showed. The median forecast by economists called for a drop of 42,000. The decline included a gain of 4,600 jobs in auto manufacturing and parts industries. Sales of cars and light trucks rebounded last month after plunging in the wake of the government’s so-called cash-for- clunkers incentive plan. Vehicles sold at a 10.5 million annual pace in October, up from a 9.2 million rate in September. Yesterday’s report contained some bright spots. Revisions added 91,000 to payroll figures previously reported for September and August, and the number of temporary workers rose by 34,000, the third consecutive gain. Temporary Help Payrolls at temporary-help agencies often turn up before total employment because companies are not certain increases in demand will be sustainable enough to warrant the expense of taking on permanent staff. Builders cut payrolls by 62,000 after a loss of 68,000 in September. Financial firms cut payrolls by 8,000, after 9,000 reductions the prior month. Service industries, which include banks, insurance companies, restaurants and retailers, subtracted 61,000 workers after cuts of 105,000 the prior month. Retail payrolls decreased by 39,800 after a decline of 44,200. The U.S. economy expanded last quarter for the first time in a year, growing at a 3.5 percent pace as government incentives spurred more consumers to buy homes and automobiles. To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

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One Liberty Properties, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2009

November 6, 2009

GREAT NECK, NY–(Marketwire – November 6, 2009) – One Liberty Properties, Inc. ( NYSE : OLP ) today announced that for the three months ended September 30, 2009, it had total revenues of $9,591,000 and net income of $3,440,000, or $.31 per share. For the three months ended September 30, 2008, One Liberty had total revenues of $8,746,000 and net income of $2,468,000, or $.22 per share. The weighted average number of common shares outstanding is 11,174,000 and 11,329,000 for the three months ended September 30, 2009 and September 30, 2008, respectively.

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US ECON: September Consumer Credit Fell By $14.8 Bln

November 6, 2009

Washington, November 6 – Americans cut their debt by a larger than expected $14.8 bln in September to bring total consumer credit down to $2.46 trln, the lowest level since June 2007, the Federal Reserve reported

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NTS Realty Holdings Limited Partnership Announces It Intends to File Its Quarterly Report on Form 10-Q for the Three and Nine Months Ended September…

November 6, 2009

LOUISVILLE, KY–(Marketwire – November 6, 2009) – ( NYSE Amex : NLP ) – NTS Realty Holdings Limited Partnership (the “Company”) announced that it intends to file its Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2009 with the Securities and Exchange Commission (the “Commission”) today. The Quarterly Report will contain earnings information for the Company for the three and nine months ended September 30, 2009. A copy of the Quarterly Report will be available on the Company’s website at http://www.ntsdevelopment.com under the heading “Investor Relations” and from the Commission’s website at http://sec.gov .

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U.S. Unemployment Rate Jumps to 10.2% as Payrolls Fall More Than Forecast

November 6, 2009

By Timothy R. Homan Nov. 6 (Bloomberg) — The unemployment rate in the U.S. soared to a 26-year high of 10.2 percent in October and employers cut more jobs than forecast, underscoring why Federal Reserve policy makers say interest rates will remain low until the labor market recovers. Payrolls fell by 190,000 workers last month, compared with a 175,000 drop anticipated by the median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The jobless rate gained from 9.8 percent in September and exceeded 10 percent for the first time since 1983. Companies such as Johnson & Johnson are cutting staff on concern the emerging recovery will be cut short as American consumers retrench. Fed policy makers this week said the economy will probably “remain weak for a time” and reiterated a pledge to keep borrowing costs low for an “extended period.” “Labor markets overall still reflect recessionary conditions, and further downward pressure on employment and compensation is likely,” Brian Bethune , chief financial economist at IHS Global Insight in Lexington, Massachusetts, said before the report. “It is no surprise that consumer confidence is backpedaling, and the outlook for consumer spending is poor.” Futures on the Standard & Poor’s 500 Stock Index fell 0.5 percent to 1,058.30 at 8:35 a.m. in New York. Treasuries rose, pushing the yield on the 10-year note down to 3.49 percent from 3.53 percent. Revisions added 91,000 from payroll figures previously reported for September and August. Payrolls Forecast Payrolls were forecast to drop 175,000 after an initially reported 263,000 decline for September, according to the median estimate of 84 economists surveyed by Bloomberg News. Estimates ranged from decreases of 250,000 to 105,000. The jobless rate was projected to rise to 9.9 percent. Forecasts ranged from 9.8 percent to 10.1 percent. Monthly losses accelerated after the collapse of Lehman Brothers Holdings Inc. in September 2008 and peaked at 741,000 in January. Today’s report showed factory payrolls dropped 61,000 after decreasing 45,000 in the prior month. The median forecast by economists called for a drop of 42,000. The decline included a gain of 4,600 jobs in auto manufacturing and parts industries. Sales of cars and light trucks rebounded last month after plunging in the wake of the government’s so-called cash-for- clunkers incentive plan. Vehicles sold at a 10.5 million annual pace in October, up from a 9.2 million rate in September. Payrolls at builders declined 62,000 after a loss of 68,000 in September. Financial firms cut payrolls by 8,000, after 9,000 reductions the prior month. Services Service industries, which include banks, insurance companies, restaurants and retailers, subtracted 61,000 workers after cuts of 105,000 the prior month. Retail payrolls decreased by 39,800 after a decline of 44,200. Government payrolls were unchanged from the prior month, the report showed. The so-called underemployment rate — which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking — reached a record 17.5 percent from 17 percent in September. Temporary workers rose by 34,000, the first gain since December 2007, when the recession began. Neal Soss , chief economist at Credit Suisse in New York, is among those saying the gain is a harbinger of increases in overall employment. Payrolls at temporary-help agencies often turn up before total employment because companies are not certain increases in demand will be sustainable enough to warrant the expense of taking on permanent staff. 10% Threshold Economists surveyed by Bloomberg last month projected the jobless rate will exceed 10 percent early next year and average 9.9 percent for all of 2010 even as the economy expands 2.4 percent next year. Voters in Virginia and New Jersey this week took out their frustration over joblessness on the political party in charge. The economy and jobs were the most important issues as Republicans won governorships in both states held by Democrats, according to election polls. President Barack Obama in February signed into law a $787 billion stimulus package aimed at reviving growth and stemming job losses. The administration said last week that the plan was directly responsible for saving or creating about 640,000 jobs. Exit polling this week showed six in ten New Jersey voters and 55 percent of Virginians said Obama didn’t influence their vote. The U.S. economy expanded last quarter for the first time in a year, growing at a 3.5 percent pace as government incentives spurred consumers to spend more on homes and automobiles. Spending Some companies are cutting payrolls amid concern spending will cool as government-assistance programs wane. The New Brunswick, New Jersey-based Johnson & Johnson, the world’s largest health-products company said Nov. 3 it will shrink its workforce by as much as 7 percent, or 7,000 workers. Other companies are gaining confidence. Deere & Co., the world’s largest maker of agricultural equipment, said last week it’s recalling 452 workers, the majority of manufacturing employees dismissed earlier this year at a factory in Iowa. Cisco Systems Inc.’s John Chambers , one of the first technology leaders to herald the recession two years ago, said yesterday he now sees a global economic recovery, fueling a rebound in his company’s sales this quarter. “The numbers are indicating us being in the early, initial phase of a recovery — with the U.S. leading the way,” Chambers said in an interview. Average Hours The average work week held at a record low of 33 hours in October, while average weekly earnings rose to $617.76 from $616.11 a month earlier. Workers’ average hourly earnings were 2.4 percent higher than October 2008, the smallest gain since 2004. Fed officials met in Washington this week and signaled that a return to economic growth alone won’t result in higher interest rates. Economist Joseph LaVorgna of Deutsche Bank Securities Inc. in New York said in a note to clients that the jobless rate is “the dominant variable driving changes in the fed funds” rate, and the central bank “has never raised rates with unemployment rising.” To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

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Nouriel Roubini: ‘Too Big To Fail’ Revisited

November 5, 2009

Although the G-20 finance ministers pledged stronger prudential regulation and financial oversight of systemically important firms at their September meeting, there is no consensus yet among regulators, lawmakers and academics on how best to proceed.

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American Reprographics Company Reports Results for Third Quarter 2009

November 5, 2009

WALNUT CREEK, CA–(Marketwire – November 5, 2009) – American Reprographics Company ( NYSE : ARP ) — Adjusted EPS of $0.06 per share — Cash from Operating Activities of $19.6 million American Reprographics Company ( NYSE : ARP ) (the “Company” or “ARC”), the nation’s leading provider of reprographic services and technology, today reported its financial results for the third quarter ended September 30, 2009.

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Ford’s October U.S. Vehicle Sales Rise 3.1% for Third Gain in Four Months

November 3, 2009

By Jeff Green and Alex Ortolani Nov. 3 (Bloomberg) — Ford Motor Co. said its October U.S. auto sales rose 3.1 percent, the third gain in four months, after the industry rebounded from the drop in demand that followed the government’s so-called cash for clunkers program. The total including the Volvo brand increased to 136,920 cars and trucks from 132,838 a year earlier, the Dearborn, Michigan-based automaker said in a statement today. That beat analysts’ estimates. “The economy is beginning to recover,” Dana Johnson , chief economist at Dallas-based Comerica Bank, said in an interview. “We probably lost some car sales in September because inventory was so low they couldn’t make deliveries. Auto sales are now probably trending up and they should be up noticeably in the first quarter.” Industry sales slid 23 percent in September after the end of the federal rebates of as much as $4,500 for buyers who traded in older, less fuel-efficient vehicles. The program ran from July 27 through Aug. 24, contributing to an August industry sales increase that was the first monthly gain since 2007. Industrywide October sales of cars and trucks ran at a seasonally adjusted annual rate of 10.3 million, based on the average of 9 analyst estimates compiled by Bloomberg. The rate was 10.6 million a year earlier. Sales at a pace of 10 million or more would make October the first month this year to top that mark without the benefit of the clunkers incentives. Before a 5.1 percent drop in September, Ford posted U.S. sales gains in July and August, powered by consumer demand for the clunkers cash. That was the first time that Ford, General Motors Co. or Chrysler Group LLC increased deliveries for two or more months since GM’s August-October streak in 2007. GM, Chrysler GM, which had a 45 percent decline in October 2008 on reduced access to financing, may say sales last month rose 4.6 percent, the average of seven analyst estimates. Chrysler Group LLC may report a 29 percent drop, according to the analysts. The estimates are based on daily selling rates. October had 28 selling days, one more than 2008. Ford, GM, Chrysler and some automakers don’t adjust for the difference in sales days. Toyota Motor Corp. and Honda Motor Co. are among automakers that use adjusted figures. Ford was predicted to fall 4.4 percent, adjusted for sales days. On that basis, its sales fell 0.6 percent. Nissan Motor Co. sales probably rose 3.2 percent in the month, the average of three analysts’ projections, while Toyota fell 6.9 percent and Honda dropped 5.6 percent. Toyota sales fell by a “single-digit” percentage last month from a year earlier, Bob Carter , group vice president for the company’s U.S. sales unit, said yesterday at a Detroit briefing. Toyota through September reported a 28 percent decline, as the industry total dropped 27 percent. Toyota estimated that October’s industrywide seasonally adjusted annual selling rate was in the range of 10.3 million to 10.5 million, Carter said. Hyundai Motor Co. , which has gained market share this year, may report an increase of 33 percent for the month, according to market-research firm Edmunds.com. Hyundai’s October 2008 U.S. sales fell 31 percent. To contact the reporters on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net ; Alex Ortolani in Southfield, Michigan, at aortolani1@bloomberg.net

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FirstService Reports Third Quarter Results

November 3, 2009

TORONTO, Nov. 3, 2009 (GLOBE NEWSWIRE) — FirstService Corporation (TSX:FSV) (TSX:FSV.PR.U) (Nasdaq:FSRV) today reported results for its third quarter ended September 30, 2009. All amounts are in US dollars.

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Economic Stress Map: The AP’s Look At The Hardest Hit Counties In America

November 2, 2009

The economic recovery is proceeding unevenly in its early stages, with areas hurt most by the housing slump still lagging behind other regions, according to The Associated Press’ monthly analysis of economic stress in more than 3,100 U.S. counties. Counties in the Southeast, the industrial Midwest and the Southwest are still struggling and have made the least improvement, the analysis of September data found. The northern half of the nation is stabilizing or improving faster than the southern half. Northern counties generally didn’t suffer as much from the housing bust. The government said last week that the U.S. economy grew at a 3.5 percent annual rate in the third quarter, ending four straight quarters of decline. But that growth is expected to slow as government stimulus programs wind down. The AP’s Economic Stress Index calculates a score from 1 to 100 based on a county’s unemployment, foreclosure and bankruptcy rates. Under a rough rule of thumb, a county is considered stressed when its score exceeds 11. Nationwide, the average county’s Stress score dipped to 10.1 in September from 10.3 in August, helped by a steadying of foreclosure and bankruptcy rates. In September 2008, the average county Stress score was much lower: 6.73. The highest Stress scores were still found mainly in states that endured housing booms and busts. Nevada had the highest score, 21.95, followed by Michigan, with its battered auto industry, at 17.75. California was next, at 16.2, followed by Florida, 15.4, and Arizona, 14.26. States with the lowest Stress scores in September were North Dakota (4.07), South Dakota (5.01), Nebraska (5.71), Montana (6.6) and Wyoming (6.9). “Housing still is at the epicenter of this crisis around the country, and places where the cycle was most egregious are also now places that are seeing some of the highest rates of unemployment,” said Sean Snaith, an economist at the University of Central Florida. Midwestern and Plains states such as Oklahoma, Nebraska, North Dakota and Iowa avoided the worst of the housing and financial crises. And Oklahoma and North Dakota have recently benefited from rising oil prices. The region also has been helped by a weaker dollar, which has made agricultural commodities cheaper for foreigners to buy. Areas of the Northeast, such as Pennsylvania and upstate New York, are benefiting from economically stable industries like higher education and health care. Those are the two industries that have added jobs during the recession. Pittsburgh, for example, is no longer an old-line industrial city. The city’s largest employers are the University of Pittsburgh’s Health Center and the West Penn Allegheny Health System, a network of hospitals, noted Steve Cochrane, an economist at Moody’s Economy.com. That’s in contrast to much of neighboring Ohio, which still has auto-related manufacturing that has been hit hard by the downturn, Cochrane said. In September, Ohio suffered from a Stress score of 12.48, while Pennsylvania’s was only 9.49. About 36 percent of counties in September had a score of 11 or higher, down from 39 percent of counties in August. Twenty-nine states saw some improvement in their Stress scores from August to September. Since the start of 2009, 12 states have improved their Stress scores: Alaska, Arkansas, Colorado, Indiana, Maine, Minnesota, Mississippi, Montana, Nebraska, North Dakota, South Dakota and Vermont. The contrast between stabilizing regions and worsening ones can be seen in the economies of Arkansas and Florida. Arkansas didn’t bear the brunt of the recession until the financial markets collapsed last fall. Its unemployment rate rose from 5.2 percent in September 2008 to 7.1 percent last month. And its Stress score rose from 6.48 to 8.84 in the past year. But its economy has begun showing signs of life. Arkansas’ economy has been stable since March, with some job gains in September. Job creation is expected in the first quarter of next year. “I think Arkansas will emerge stronger than our neighbors and a little bit ahead of the curve,” said Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock. Arkansas also is home to several industries that fared well during the recession. Wal-Mart and its suppliers anchor the northwest part of the state. Food processing plants in the northeast part of the state are humming, and health service jobs in Little Rock have increased. Florida, by contrast, was severely hurt by the housing bust. Its unemployment rate started climbing months before the official start of the recession in December 2007, from 4 percent in June 2007 to 11 percent in September. Its jobless rate is expected to remain above 10 percent into 2012. “I’m expecting Florida to lag the nation as a whole in the recovery,” Snaith said. “A lot of that is just trying to get out from under the burden of the housing market.” Three of the five-most-stressed counties with populations over 25,000 were in Nevada, also battered by the housing crisis. The five are: Imperial County, Calif. (33.51); Yuma County, Ariz. (25.82); Lyon County, Nev. (24.72); Clark County, Nev. (23.83); and Nye County, Nev. (23.72). “There is going to be a longer process for those economies to get back into the swing of things,” Pakko said. RANKINGS: A list of the 20 most economically stressed counties with populations over 25,000 and their September 2009 Stress scores, according to The Associated Press Economic Stress Index: 1. Imperial County, Calif, 33.51 2. Yuma County, Ariz., 25.82 3. Lyon County, Nev., 24.72 4. Clark County, Nev., 23.83 5. Nye County, Nev., 23.72 6. Merced County, Calif., 23.39 7. Yuba County, Calif., 23.29 8. San Joaquin County, Calif., 22.69 9. Lauderdale County, Tenn., 22.68 10. Wayne County, Mich., 22.5 11. Lapeer County, Mich., 22.44 12. St. Clair County, Mich., 22.42 13. Riverside County, Calif., 22.37 14. Dallas County, Ala., 22.17 15. Stanislaus County, Calif., 22.16 16. Macomb County, Mich., 22.02 17. Chester County, S.C., 21.48 18. Marion County, S.C., 21.4 19. Union County, S.C., 21.19 20. Lee County, Fla., 21.18 Get HuffPost Business On Facebook and Twitter !

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Construction Spending in U.S. Increases 0.8% for Biggest Gain in a Year

November 2, 2009

By Courtney Schlisserman Nov. 2 (Bloomberg) — Spending on U.S. construction unexpectedly rose in September as residential builders rushed to finish projects in anticipation of a possible end to the first- time home-buyers tax credit. The 0.8 percent increase , the biggest since September 2008, followed a revised 0.1 percent drop in August that was previously reported as a 0.8 percent gain, Commerce Department figures today showed. Spending on residential and government projects climbed, while outlays on private commercial construction slumped for a fifth consecutive month. Low borrowing costs , price declines and the government’s $8,000 tax credit for first-time buyers stabilized sales and spurred the biggest increase in residential construction in 26 years in the third quarter. Lawmakers are working on extending the credit, which may help support construction even as commercial real estate falters. “Residential construction continued its modest recovery from extremely depressed levels,” Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. “However, non-residential construction remained in a downward spiral as vacancy rates were still climbing and rents were still falling.” Economists forecast construction spending would fall 0.2 percent, after a previously-reported 0.8 percent gain in August, according to the median of 44 projections in a Bloomberg News survey. Estimates ranged from a drop of 1 percent to a gain of 0 percent. Homebuilding Rebound Private residential construction spending increased 3.9 percent in September, the biggest gain since July 2003, after a 3.8 percent increase the month before. Compared with a year earlier, it was down 27 percent. Non-residential construction, including public projects, decreased 0.4 percent. Public construction rose 1.3 percent, led by government spending on power plants, streets and highways and transportation projects. Private commercial real-estate, which includes factories, hotels and office buildings, dropped 1.8 percent for a second month. The numbers are just the beginning of what will probably be a “huge crash in commercial real estate,” billionaire investor Wilbur L. Ross Jr. said Oct. 30. ‘Wrong Direction’ “All of the components of real estate value are going in the wrong direction simultaneously,” said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets. “Occupancy rates are going down. Rent rates are going down and the capitalization rate — the return that investors are demanding to buy a property — are going up.” Commercial-property sales in the U.S. will fall to the lowest in almost two decades, according to data compiled by Real Capital Analytics Inc. in September. The government is trying to prevent residential real estate from falling even more. The Obama administration on Oct. 29 endorsed plans to extend the $8,000 tax credit for first-time homebuyers, saying it is helping stabilize the U.S. economy. The plan currently requires purchasers to close on their homes by Nov. 30. The Senate’s new proposal would include a $6,500 credit for homebuyers who have lived in their prior residence for at least five years, Sen. Finance Committee Chairman Max Baucus said Oct. 29. Less Inventory Ryland Group Inc., a U.S. homebuilder catering to first- time buyers, said last week that its inventory of unsold homes dropped 30 percent in the third quarter compared with a year earlier and that its net loss narrowed. The company is “in an excellent position” to profit when sales increase, Chief Executive Officer Larry Nicholson said on a conference call Oct. 29, a day after the company’s earnings release. Meritage Homes Corp.’s home orders rose for the first time in three years during the quarter ended in September, the company reported Oct 26. Buyers ordered 1,098 homes in the period, up from 1,013 a year earlier. The builder reported a loss of $17.8 million for the quarter, compared with a loss of $144 million a year earlier. Construction spending figures are based on expenditures over the life of a project, with about 75 percent of value accounted for in the first four months. To contact the reporter on this story: Courtney Schlisserman Washington at cschlisserma@bloomberg.net

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Peel quarterly report for period ending 30 September 2009

November 2, 2009

Peel quarterly report for period ending 30 September 2009

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Metallica quarterly report for period ending 30 September 2009

November 2, 2009

Metallica quarterly report for period ending 30 September 2009

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Kairiki Energy quarterly report for period ending 30 September 2009

November 2, 2009

Kairiki Energy quarterly report for period ending 30 September 2009

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Republic Gold quarterly report for period ending 30 September 2009

November 2, 2009

Republic Gold quarterly report for period ending 30 September 2009

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Bauxite Resources report for period ending 30 September 2009

November 2, 2009

Bauxite Resources report for period ending 30 September 2009

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Otto Energy report for period ending 30 September 2009

November 2, 2009

Otto Energy report for period ending 30 September 2009

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Victory West Moly report for period ending 30 September 2009

November 2, 2009

Victory West Moly report for period ending 30 September 2009

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Video: Rupkey Says U.S. `Very Close’ to Unemployment Rate Peak: Video

October 30, 2009

Oct. 30 (Bloomberg) — Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd., talks with Bloomberg’s Mark Crumpton and Lori Rothman about the U.S. economy, consumer spending and the stimulus package. Spending by U.S. consumers fell in September for the first time in five months after the government’s auto-rebate program expired. (This report is an excerpt. Source: Bloomberg)

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Jameson Resources Limited (ASX:JAL) Quarterly Report For The Period Ending 30 September 2009

October 30, 2009

Jameson Resources Limited (ASX:JAL) Quarterly Report For The Period Ending 30 September 2009

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Consumer Spending in U.S. Probably Decreased After `Clunkers’ Plan Expired

October 30, 2009

By Timothy R. Homan Oct. 30 (Bloomberg) — Spending by U.S. consumers probably fell in September for the first time in five months as auto dealer showrooms emptied in the wake of the government’s auto- rebate program, economists said before a report today. Purchases decreased 0.5 percent after a 1.3 percent jump in August that was the biggest in almost eight years, according to the median forecast of 75 economists surveyed by Bloomberg News. Other reports may show consumer sentiment dropped this month and business activity shrank at a slower pace. Today’s spending report may also show Americans’ incomes were little changed last month as payrolls dropped and unemployment climbed. Stagnant wages and waning confidence raise the risk that consumers will retrench in coming months as government assistance programs such as the so-called cash-for- clunkers plan expire. “Income growth will remain sluggish in the fourth quarter because of job losses,” said Nigel Gault , chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “The fuel for consumer spending isn’t there.” The Commerce Department report is due at 8:30 a.m. in Washington. Spending estimates in the Bloomberg survey ranged from a decline of 0.9 percent to a gain of 0.5 percent. An unchanged reading on incomes would follow gains of 0.2 percent in August and July. At 10 a.m., Reuters/University of Michigan figures may show the index of consumer sentiment fell to 70 from 73.5 in September, according to the survey median. Estimates ranged from 68 to 74. A preliminary reading earlier this month came in at 69.4. Monthly Breakdown Today’s spending report will provide the monthly breakdown of the quarterly figures issued by the Commerce Department yesterday, which may influence the outlook for the next three months. Household purchases, which account for about 70 percent of the economy, rose at a 3.4 percent annual pace in the third quarter , the strongest performance in more than two years, the figures showed. The world’s largest economy expanded at a 3.5 percent rate from July through September, exceeding the median estimate of economists surveyed. The report on gross domestic product contributed to the biggest advance in benchmark stock indexes since July. The Standard & Poor’s 500 Index climbed 2.3 percent to close at 1,066.11. Contract Less The Institute for Supply Management-Chicago Inc.’s business barometer probably rose to 49 this month from 46.1 in September, according to the survey median. Readings below 50 signal contraction. The report is due at 9:45 a.m. Washington time. Kellogg Co. , the largest U.S. breakfast-cereal maker, yesterday reported third-quarter profit that exceeded analysts’ estimates as costs fell more than sales. “Consumers remain nervous and are more value conscious than they were a couple of years ago,” Chief Executive Officer David Mackay said in a telephone interview. “We have to be pragmatic about consumers and the issues and pressures they face, and try to help them in any way we can.” A report from the Labor Department scheduled for release at 8:30 a.m. may show employment expenses in the U.S. rose 0.4 percent in the third quarter, the same as in the previous three months, according to the median estimate of economists surveyed. To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

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FAR: Condo Sales Up 77% Over Year

October 29, 2009

Search for Miami Commercial Real Estate Thursday, October 29, 2009 – At least 5,000 residential condominium units were sold statewide in September, 77% more than the same month last year and up 9% from

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FAR: Condo Sales Up 77% Over Year

October 29, 2009

Search for Miami Commercial Real Estate Thursday, October 29, 2009 – At least 5,000 residential condominium units were sold statewide in September, 77% more than the same month last year and up 9% from

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Japan Jobless Rate Unexpectedly Falls a Second Month to 5.3% Amid Recovery

October 29, 2009

By Toru Fujioka Oct. 30 (Bloomberg) — Japan’s jobless rate unexpectedly dropped for a second month in September, adding to signs that a recovery in the world’s second-largest economy is spreading to consumers. The unemployment rate declined to 5.3 percent from 5.5 percent in August, the statistics bureau said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg was for the rate to increase to 5.6 percent. A global recovery fueled by more than $2 trillion in stimulus measures is bolstering business at companies from Honda Motor Co. to Hitachi Construction Machinery Co. Consumers are also more confident that the worst is over — household sentiment rose to a 23-month high in September and retail sales fell at the slowest pace in 10 months. “There are some signs of an improvement in the labor market,” said Takeshi Minami , chief economist at Norinchukin Research Institute in Tokyo. A separate report showed the job-to-applicant ratio , a leading indicator of employment trends, improved for the first time in more than two years. The ratio rose to 0.43 last month from a record low of 0.42 in August, meaning there are 43 jobs for 100 job seekers. Household spending rose 1 percent from a year earlier, the statistics bureau said today. Manufacturers increased production for a seventh month in September, extending the longest stretch of gains in 12 years, a report showed yesterday. Honda, Japan’s second-largest carmaker, almost tripled its full-year profit forecast as government stimulus measures boosted demand, the company said this week. Record Unemployment Still, economists expect the unemployment rate to reach a record high of 6 percent next year. Nomura Holdings Inc., Mitsubishi UFJ Financial Group Inc. and their biggest rivals plan to cut hiring of university graduates in Japan by almost half, according to the companies. Even though the nation is recovering, “I don’t think the unemployment rate will go down quickly, given the very low level of the economy,” Norinchukin’s Minami said. To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net

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Kasbah Resources Limited (ASX:KAS) Quarterly Report For The Period Ending 30 September 2009

October 29, 2009

Kasbah Resources Limited (ASX:KAS) Quarterly Report For The Period Ending 30 September 2009

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Kasbah Resources Limited (ASX:KAS) Quarterly Report For The Period Ending 30 September 2009

October 29, 2009

Kasbah Resources Limited (ASX:KAS) Quarterly Report For The Period Ending 30 September 2009

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D’Aguilar Gold Limited (ASX:DGR) Quarterly Report For The Period Ending 30 September 2009

October 28, 2009

D’Aguilar Gold Limited (ASX:DGR) Quarterly Report For The Period Ending 30 September 2009

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European, Asian Stocks Retreat; MSCI World Index Declines for Seventh Day

October 28, 2009

By Sarah Jones Oct. 28 (Bloomberg) — European stock-index futures fell and Asian shares declined as SAP AG cut its software sales forecast and Canon Inc. posted a seventh straight quarterly profit drop. U.S. futures were little changed. SAP may decline after the world’s biggest maker of business-management software also reported third-quarter profit that trailed analysts’ estimates. Canon, the largest camera maker, retreated 3.4 percent in Tokyo. Heineken NV may be active after the brewer raised its earnings forecast. Futures on the Dow Jones Euro Stoxx 50 Index slipped 0.5 percent at 7:25 a.m. in London. The U.K.’s FTSE 100 Index is set to open 20 points lower, according to BGC Partners. Europe’s Stoxx 600 snapped a three-day losing streak yesterday as profits from BP Plc and Vestas Wind Systems A/S that beat estimates overshadowed an unexpected drop in U.S. consumer confidence. The gauge has declined 2.8 percent from this year’s high on Oct. 19 amid speculation that a seven-month rally has outpaced prospects for earnings and economic growth. Still, 65 percent of the 83 companies in the Stoxx 600 that have reported earnings since Oct. 7 have beaten analyst estimates, according to data compiled by Bloomberg. In the U.S., third-quarter results have topped projections for more than 84 percent of Standard & Poor’s 500 Index companies. S&P 500 futures expiring in December added less than 0.1 percent after the benchmark index for U.S. equities slid for three straight days. Reports today may show orders for durable goods and sales of new houses rose in September, capping the strongest quarter of U.S. economic growth in two years, economists said. Canon, SAP The MSCI Asia Pacific Index dropped 1.1 percent today as Canon’s lower profit and losses at National Australia Bank Ltd. raised concern about the strength of the global recovery. SAP may decline. The German software maker posted an 11 percent increase in third-quarter profit to 435 million euros ($645 million) and said software sales will drop more than forecast as customers spend less. Sales fell 9.2 percent to 2.51 billion euros. Net income was seen at 454 million euros on sales of 2.63 billion euros, according to the average estimates of analysts surveyed by Bloomberg. Canon fell 3.4 percent to 3,460 yen. The company reported a 56 percent drop in third-quarter net income to 36.7 billion yen ($399 million). Canon maintained its forecast for a 64 percent decline in annual net income and a 22 percent drop in sales. Heineken, ArcelorMittal Heineken may be active. The world’s third-largest brewer said that it expects so-called net profit excluding one-time gains and losses, interest, amortization, currency moves and acquisitions to grow in “low double digits” this year, up from the previous outlook for a gain of “at least high single digits.” ArcelorMittal may move after the steelmaker reported third- quarter net income of $903 million, its first quarterly profit in a year, after restarting furnaces and raising shipments as demand rebounded. A report today may show U.S. bookings for goods meant to last several years gained 1 percent in September, the fourth increase in the past six months, according to a Bloomberg survey of economists. New-Home purchases climbed last month to the highest level in more than year, a separate report may show. To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net .

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Blue Dog Fundraising Declines From Beginning Of 2009

October 27, 2009

A Center for Public Integrity analysis shows that fundraising for the Blog Dog Democrat Coalition has significantly dwindled over the course of the year. The 52-member fiscally conservative group, which wielded much influence during this year’s effort to reform health care, pulled in a lackluster $12,500 during the month of September. Compare that with the $176,000 it averaged during the first half of the year. The group raised $1.1 million from January to June but raised just $87,000 between July and September, its average monthly fundraising dropping by more than $50,000. The money that the coalition did pull in came from just three donations, according to CPI . Accounting firm Ernst & Young’s PAC donated $5,000, the Food Marketing Institute PAC gave $2,500 and the National Rifle Association of America Political Victory Fund contributed $5,000.

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In The Pipeline: CoStar Development and Construction News for Oct. 25-31

October 26, 2009

In this week’s issue, a joint venture will break ground in Washington, D.C.on a 362,000-square-building office building for the nation’s top nuclear regulatory agency; demand for architectural design services continued to decline in September, according…

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Beach Petroleum ends September quarter in strong financial position

October 26, 2009

Beach Petroleum ends September quarter in strong financial position

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Singapore’s factory output falls 7.7% in September

October 26, 2009

Singapore’s factory output falls 7.7% in September

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Mexico’s oil output falls in September

October 25, 2009

Mexico’s oil output falls in September

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U.S. Existing Home Sales Jump as Buyers Seek Tax Credit Before Expiration

October 23, 2009

By Bob Willis Oct. 23 (Bloomberg) — Sales of existing U.S. homes climbed in September to the highest level in more than two years as homebuyers rushed to take advantage of a tax credit before it runs out. Purchases jumped 9.4 percent to a 5.57 million annual rate, more than forecast and following a 5.09 rate in August, the National Association of Realtors said today in Washington. The median price fell at the slowest pace in a year. The $8,000 credit for first-time buyers, due to expire Nov. 30, has probably pulled sales and construction forward, signaling housing may cool in coming months. While Congress is considering extending the incentive, lower prices and mortgage rates have contributed to steadying a market that endured the worst slump since the Great Depression. “The rapid gain in home sales over the past few months likely owes in large part to the homebuyer tax credit,” Michelle Meyer , an economist at Barclays Capital Inc. in New York, said before the report. “The bottoming process in the housing market is underway.” Existing home sales were forecast to rise to a 5.35 million annual rate, according to the median forecast of 76 economists in a Bloomberg News survey. Estimates ranged from 5 million to 5.6 million, after an initially reported 5.1 million rate in August. Resales reached a 4.49 million pace in January, their lowest level since comparable records began in 1999. Purchases of existing homes were up 9.2 percent compared with a year earlier. The median price fell to $174,900, down 8.5 percent from a year ago. It was the smallest decrease in 13 months. Less Inventory The number of previously-owned homes on the market dropped 7.5 percent to 3.63 million in September. At the current sales pace, it would take 7.8 months to sell those houses, the lowest level since March 2007. A seven months’ supply is usually consistent with stabilization in prices, NAR chief economist Lawrence Yun said in recent months. The share of homes sold as foreclosures or otherwise distressed properties was 29 percent in September from 31 percent in August, Yun said. Today’s report showed sales of existing single-family homes climbed 9.4 percent to an annual rate of 4.89 million. Sales of condominiums and co-operatives increased 9.7 percent to a 680,000 rate. Purchases increased in all four regions, led by a 13 percent surge in the West. Purchases climbed 9.6 percent in the Midwest, 9 percent in the South and 4.4 percent in the Northeast. Beating Deadline Purchases of previously owned homes, which make up more than 90 percent of the market, are tabulated when sales close and therefore reflect contracts signed a month or two earlier. Sales of newly built residences, which make up the rest, are counted when a contract is signed, and may therefore cool months before the tax credit expires. Buyers must close before the Nov. 30 deadline to be eligible for the tax credit. Last month’s sales were “heavily dependent” on the tax credit, the NAR’s Yun said in a press conference. The Commerce Department’s report on new-home purchases is due Oct. 28. The Realtors’ group and the National Association of Home Builders are lobbying to extend the first-time homebuyers credit on concern demand will wane after it lapses. Lawmakers this week took up the call. Extend Credit “The work of stabilizing the housing market won’t be done” when the credit expires next month, Senate Banking Committee Chairman Christopher Dodd said during a panel hearing. “We still need to use every tool at our disposal to fix this problem.” Dodd, a Democrat from Connecticut, and Republican Senator Johnny Isakson of Georgia, a former real estate agent, urged their colleagues to extend the credit through next June. The Federal Reserve this week said its 12 district banks saw “stabilization or modest improvements” in many areas of the economy, led by housing and manufacturing. “Most districts reported that housing market conditions improved in recent weeks, primarily from a pickup in sales of low-to middle-priced houses,” the Fed said in its Beige Book of economic conditions in September and early October. Housing-related companies are still trying to recover. USG Corp. , North America’s largest maker of gypsum wallboard, posted its eighth straight net loss last quarter as sales dropped 32 percent from the same time last year. “The residential housing market appears to have stabilized, but it has done so at a very low level,” Chief Executive Officer William Foote said Oct. 21 on a conference call with analysts. To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net .

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Obama Says Wall Street Pay Curbs `Step Forward’ at Taxpayer-Funded Firms

October 22, 2009

By Julianna Goldman and Kate Andersen Brower Oct. 22 (Bloomberg) — President Barack Obama said limiting pay for top executives at firms that got the most government aid strikes a balance between the interests of taxpayers and restoring stability to the financial system. The president said the independent rulings by Kenneth Feinberg , Obama’s special master on executive compensation, are “an important step forward in curbing the influence of executive compensation on Wall Street while still allowing these companies to succeed and prosper.” “We don’t disparage wealth, we don’t begrudge anybody for doing well, we believe in success,” Obama said today at the White House. “But it does offend our values when executives of big financial firms, firms that are struggling, pay themselves huge bonuses even as they continue to rely on taxpayer assistance to stay afloat.” Feinberg is ordering pay cuts of an average of 50 percent and caps on benefits for top executives at seven companies that still owe the government billions of dollars from taxpayer- funded bailouts. The firms under Feinberg’s purview include New York-based Citigroup Inc. and Charlotte, North Carolina-based Bank of America Corp. The cash portion of salaries for the 25 highest-paid employees will be slashed an average of 90 percent while some cash will be replaced by shares that employees will be restricted from selling immediately. ‘Difficult Task’ Feinberg “was faced with the difficult task of striking the proper balance between standing up for taxpayers and returning a measure of stability to our financial system,” Obama said. Feinberg, 63, who was special master of the September 11th Victim Compensation Fund , was named to the Obama administration pay position in June following public outrage over reports in March that New York-based American International Group paid $165 million in bonuses to employees of the derivatives unit. The Federal Reserve also is proposing new guidelines on pay practices at banks and said it will launch a review of the 28 largest firms to ensure compensation packages don’t create incentives for the kinds of risky investments blamed for the financial crisis. While praising Feinberg’s plan, Obama said “more work needs to be done.” He reiterated his push for a regulatory overhaul as well as legislation that would give shareholders a greater say on executive compensation. In addition to compensation at Citigroup, Bank of America and AIG, Feinberg is overseeing pay at Auburn Hills, Michigan- based Chrysler Group LLC, Chrysler Financial Corp., Detroit- based General Motors Co . and GMAC Inc. To contact the reporters on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net ; Kate Andersen Brower in Washington at kandersen7@bloomberg.net

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Washington Real Estate Investment Trust Announces Third Quarter Financial and Operating Results (Business Wire via Yahoo! Finance)

October 22, 2009

ROCKVILLE, Md.—-Washington Real Estate Investment Trust reported financial and operating results today for the quarter ended September 30, 2009: Net income was $0.16 per diluted share compared to $0.09 per diluted share in the same period one year ago.

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Unemployment Rate Climbs in 23 States, Reaches Records in Nevada, Florida

October 21, 2009

By Timothy R. Homan Oct. 21 (Bloomberg) — Unemployment rose in 23 U.S. states in September and hit records in Nevada, Rhode Island and Florida. Nevada’s jobless rate, at 13.3 percent, was the second- highest among U.S. states behind Michigan, the Labor Department said today in Washington. Unemployment in Rhode Island reached 13 percent, and Florida’s rate climbed to 11 percent, the highest since data began in 1976. Mounting unemployment is hurting state budgets by cutting tax revenue and boosting benefits to fired workers. Joblessness nationally will reach 10 percent this quarter, a Bloomberg News survey of economists showed this month, indicating consumers will probably not lead a recovery from the recession. “There is still scant evidence of hiring,” said Marisa Di Natale , a director at Moody’s Economy.com in West Chester, Pennsylvania. “We expect the unemployment rate in most areas to continue rising despite fewer job cuts,” she said. The number of states with at least 10 percent unemployment held at 14 last month. The jobless rate nationally reached a 26-year high of 9.8 percent in September, the Labor Department reported earlier this month. Unemployment in the District of Columbia also exceeded 10 percent for a fifth consecutive month, rising to 11.4 percent from 11.1 percent. Michigan Unemployment Michigan continued to lead the nation in joblessness, with a rate of 15.3 percent in September, up from 15.2 percent. The depressed labor market in the state reflects Michigan’s dependence on the auto industry, said Timothy Bartik , a senior economist with the W.E. Upjohn Institute in Kalamazoo, Michigan, a non-profit labor-research group. “Any state that specializes in a particular industry, when that industry tanks, it’s very hard to offset in any five- or 10-year period.” New York City’s unemployment rate reached a 25-year high of 10.3 percent in September, the state’s Labor Department reported last week. The rate was 10.2 percent in August and 6 percent in September 2008. The state’s jobless level held at 8.9 percent. New Jersey, Connecticut New Jersey’s rate rose to 9.8 percent, the highest level since 1977, from 9.6 percent, the state’s Labor Department said Oct. 14. Joblessness in Connecticut climbed to 8.4 percent, also the highest in 32 years, from 8.1 percent, according to the U.S. Labor Department. “The economy right now is very bad,” said Ireita Kante, 52, of Atlanta, who lost her restaurant management job this month. “I do have confidence we will turn around. We have to. We are a strong country.” Georgia’s unemployment rate held at 10.1 percent. Payrolls fell last month in 43 states and the District of Columbia, today’s report showed. New York showed the biggest drop with an 81,700 decrease. The decline reflected a 63,400 drop in government payrolls, which the state said was caused by the expiration of the summer youth employment program. Texas followed with a 44,700 drop in payrolls and California was next with a 39,300 decrease. Round Rock, Texas-based Dell Inc. , the world’s second- largest maker of personal computers, is among companies still paring staff to cut expenses. Dell said this month it will shutter a North Carolina factory with 905 employees by January. The job cuts are part of the company’s objective of saving $4 billion a year in costs as demand for computers declines. Cutting Costs “We set out a pretty big cost goal for ourselves,” Michael Dell , chief executive officer of the Round Rock, Texas- based company, said Oct. 14, a week after announcing the closure of the PC factory. “It’s looking like the $4 billion is quite achievable.” Over the last year, California showed the biggest loss of jobs, with payrolls falling by 732,700 workers, more than twice Florida’s 360,400 decrease that was the second-biggest. Payrolls in the world’s largest economy fell by 263,000 last month, more than forecast, the Labor Department reported earlier this month. The U.S. economy has lost 7.2 million jobs since the recession started in December 2007, the most of any downturn since the Great Depression. To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

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Education Realty Trust Announces Third Quarter 2009 Results

October 21, 2009

MEMPHIS, Tenn., Oct. 21, 2009 (GLOBE NEWSWIRE) — Education Realty Trust, Inc. (NYSE:EDR), a leader in the ownership, development and management of student housing, today announced operating results for its third quarter ending September 30, 2009.

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Pike River Coal Limited (NZE:PRC) Quarterly Report For Period Ending 30 September 2009

October 21, 2009

Pike River Coal Limited (NZE:PRC) Quarterly Report For Period Ending 30 September 2009

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Carpentaria Exploration Limited (ASX:CAP) Quarterly Report For The Period Ending 30 September 2009

October 21, 2009

Carpentaria Exploration Limited (ASX:CAP) Quarterly Report For The Period Ending 30 September 2009

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Housing Starts, Wholesale Prices Signal Low Rates to Ensure U.S. Recovery

October 20, 2009

By Courtney Schlisserman and Bob Willis Oct. 20 (Bloomberg) — Builders in the U.S. broke ground on fewer homes than forecast and wholesale prices unexpectedly fell in September, giving the Federal Reserve more reason to keep interest rates low to ensure an economic recovery. Housing starts rose 0.5 percent to an annual rate of 590,000 from a 587,000 pace in August that was lower than previously estimated, a Commerce Department report showed today in Washington. Prices paid to factories, farmers and other producers fell 0.6 percent, the second drop in three months, the Labor Department said. Builders may be paring back in anticipation of the end of the government’s $8,000 tax credit for first-time homebuyers on Nov. 30. The decline in producer prices confirms the Fed’s view that inflation is “subdued,” helping Fed Chairman Ben S. Bernanke and fellow policy makers fulfill a pledge to keep the benchmark rate at a record low for an “extended period.” “Builders are a little bit cautious about the outlook,” said Zach Pandl , an economist at Nomura Securities International Inc. in New York. “There is still a huge amount of slack in the economy, and downside risks for inflation.” Builder shares fell after the housing report, with the Standard & Poor’s Supercomposite Homebuilder Index down 2.2 percent at 12:16 p.m. in New York. The Standard & Poor’s 500 Index decreased 0.9 percent to 1,088.53. Treasuries rose, pushing the yield on the 10-year note down to 3.33 percent from 3.39 percent late yesterday. Economists forecast starts would increase to a 610,000 rate, from a previously reported 598,000 in August, according to the median of 76 projections in a Bloomberg News survey. Estimates ranged from 582,000 to 630,000. Confidence Declines The National Association of Home Builders/Wells Fargo’s confidence index , released yesterday, unexpectedly declined in October on concern the expiration of the first-time homebuyer tax incentive would reduce demand. Realtors and home builders are urging Congress to extend the incentive, and Treasury Secretary Timothy Geithner said last month that the Obama administration plans to take a “careful look” at the proposal. Some lawmakers are calling for extending the tax credit to boost home sales. “The work of stabilizing the housing market won’t be done” when the credit expires next month, Senate Banking Committee Chairman Christopher Dodd told a hearing of his panel today. “We still need to use every tool at our disposal to fix this problem.” Former Realtor Dodd, a Democrat from Connecticut, and Republican Senator Johnny Isakson of Georgia, a former Realtor, urged their colleagues to extend the credit through next June and to expand it to all couples earning $300,000 or less. D.R. Horton Inc ., the largest U.S. homebuilder by revenue, is among companies projecting the recent improvement in some parts of the country will be sustained. The Fort Worth, Texas- based company said last month it is buying finished lots, rather than building on undeveloped land it already owns, to boost its construction pipeline in anticipation of a housing revival. “There have been some small encouraging signs in our sales and our average sales prices,” Bill W. Wheat, D.R. Horton’s chief financial officer, said on a Sept. 30 call with investors. Areas such as Las Vegas and Phoenix were still struggling, he said. Rising unemployment and record foreclosures are among the hurdles for the industry. The jobless rate reached a 26-year high of 9.8 percent last month, according to the Labor Department. Foreclosures depress the values of existing homes, prompting builders to cut prices in order to compete. Weighing Risks Fed policy makers at their September meeting considered a relapse into recession a bigger risk than a near-term rise in prices, according to minutes of the gathering released last week. They decided to slow purchases of mortgage securities to avoid disrupting the housing market while extending the duration of the program by three months. Building permits fell 1.2 percent to a 573,000 annual rate last month. They were forecast to climb to a 595,000 pace from 579,000 in August. Construction of single-family homes, which account for about 85 percent of the industry, increased 3.9 percent to a 501,000 rate. Work on multi-family units, which make up the rest of the market and is often volatile, slumped 15 percent to an 89,000 rate. The entire gain in starts was attributed to a 7.1 percent increase in the South. The other three regions fell, led by an 8.8 percent decrease in the West. Economists forecast producer prices would remain unchanged, according to the median of 75 forecasts in a Bloomberg News survey. Energy Costs Energy costs dropped 2.4 percent, led by a 9.8 percent fall in heating oil and a 5.4 percent decline in gasoline. Excluding food and fuel, so-called core prices declined 0.1 percent, today’s Commerce Department report showed. Core prices had been projected to increase 0.1 percent, according to the Bloomberg survey. The decrease in core costs reflected a 1.4 percent decline in light trucks and cheaper pet food. The cost of passenger cars gained 1 percent after the government’s “cash-for-clunkers” trade-in program expired in August. Last week, the government reported consumer prices rose 0.2 percent in September after increasing 0.4 percent a month earlier. Fed Vice Chairman Donald Kohn last week said inflation and growth will probably stay below the central bank’s objectives for some time, warranting low interest rates for an “extended period.” To contact the reporters on this story: Courtney Schlisserman in Washington cschlisserma@bloomberg.net ; Bob Willis at bwillis@bloomberg.net

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Producer Prices in U.S. Unexpectedly Decline 0.6% on Lower Costs for Fuel

October 20, 2009

By Bob Willis Oct. 20 (Bloomberg) — Wholesale prices in the U.S. unexpectedly fell in September on lower fuel costs, a sign inflation remains muted and the Federal Reserve has leeway to keep borrowing costs low as the economy recovers. The 0.6 percent decrease in prices paid to factories, farmers and other producers was the second drop in three months and followed a 1.7 percent rise in August, the Labor Department said today in Washington. Excluding food and fuel, so-called core prices declined 0.1 percent. Companies won’t be able to pass on higher costs to consumers until demand is more sustained as the economy emerges from the worst recession in seven decades. Citing “subdued” inflation, Federal Reserve policy makers pledged last month to keep the benchmark interest rate at a record low for an “extended period.” “Inflation is not an immediate concern,” Ryan Sweet , an economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “We’re probably going to see core inflation continue to soften over the next couple of months” and “this will likely keep the Fed on the sidelines for the foreseeable future.” Builders broke ground in September on fewer houses than anticipated and building permits dropped, signaling the market will slow once government incentives have elapsed, a separate report from the Commerce Department showed today. Housing Permits Housing starts rose 0.5 percent to an annual rate of 590,000 from a 587,000 pace in August that was lower than previously estimated. Permits, a sign of future construction, fell for the second time in the past three months. Stock futures trimmed gains after the reports. Futures on the Standard & Poor’s 500 Index added 0.3 percent to 1,094.00 at 8:55 a.m. in New York after climbing as much as 0.7 percent earlier. Economists forecast producer prices would remain unchanged, according to the median of 75 forecasts in a Bloomberg News survey. Estimates ranged from a decline of 0.8 percent to a gain of 0.5 percent. Excluding food and energy, costs were projected to increase 0.1 percent, according to the Bloomberg survey. Compared with a year earlier, companies paid 4.8 percent less for goods, today’s producer-price report showed. Core costs were 1.8 percent higher than a year earlier. Energy costs dropped 2.4 percent, led by a 9.8 percent fall in heating oil and a 5.4 percent decline in gasoline. Gasoline prices in September averaged $2.55 a gallon, compared with $2.62 in August, according to AAA. Energy Costs Energy costs plunged 22.1 percent from a year earlier, today’s report showed. The cost of food fell 0.1 percent from August, led by a 9.8 percent decline in eggs. The decrease in core costs reflected a 1.4 percent decline in light trucks and cheaper pet food. The cost of passenger cars gained 1 percent. The end of the government’s “cash-for-clunkers” trade-in program on Aug. 24 meant factories had to resort to boosting incentives to dealers to sell cars and that will lead to lower sales prices, said Jonathan Basile , an economist at Credit Suisse Holdings Inc. in New York. Dealer Incentives “Factory-to-dealer incentives are coming back,” Basile said. “That should hold back any core PPI pressure.” General Motors Co.’s “average incentive spend” was $3,700 in September, up $500 from August, Mark LaNeve , the former U.S. sales chief for GM, said in a conference call Oct. 1. Producer prices are one of three monthly inflation gauges reported by the Labor Department. Prices paid by consumers rose 0.2 percent in September and prices excluding food and energy rose by the same amount, the Labor Department reported Oct. 15. The cost of goods imported into the U.S. rose 0.2 percent last month, the Labor Department said the prior day. Fed Vice Chairman Donald Kohn last week said inflation and growth will probably stay below the central bank’s objectives for some time, warranting low interest rates for an “extended period.” The minutes of the policy-making Federal Open Market Committee’s Sept. 22-23 meeting last week showed officials weighed the risks that an anemic recovery would lead to “subdued and potentially declining wage and price inflation.” To contact the reporter on this story: Bob Willis at bwillis@bloomberg.net

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German producer prices down 7.6% in September

October 20, 2009

German producer prices down 7.6% in September

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Finland’s jobless rate hits 7.3% in September

October 20, 2009

Finland’s jobless rate hits 7.3% in September

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US video game sales up 1% in September

October 20, 2009

US video game sales up 1% in September

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Homebuilder Confidence in U.S. Unexpectedly Drops as Credits Set to Expire

October 19, 2009

By Shobhana Chandra Oct. 19 (Bloomberg) — Confidence among U.S. homebuilders unexpectedly fell in October on mounting concern sales will retrench once government credits expire. The National Association of Home Builders/Wells Fargo confidence index declined to 18 from a reading of 19 in September that was the highest in more than a year, the Washington-based association said today. Figures less than 50 mean most respondents view conditions as poor. Builders are fretting as time runs out for purchasers to take advantage of the Obama administration’s $8,000 tax credit for first-time buyers, which expires at the end of November. All three components of the index, including measures of current and future sales and buyer traffic, dropped, signaling the market may take a step back after advancing for five consecutive months. “Clearly, builders are experiencing the effects of the expiring tax credit on their sales activity, since it would be virtually impossible at this point to complete a new home sale in time to take advantage of that buyer incentive,” David Crowe , the NAHB’s chief economist, said in a statement. Crowe said 85 percent of the members polled thought an extension of the credit would boost sales. The builder confidence index was forecast to rise to 20 this month, according to the median of 44 estimates of economists surveyed by Bloomberg News. Projections ranged from 18 to 21. The gauge, which was first published in January 1985, averaged 16 last year. Survey Components Builder shares fell for a third consecutive day. The Standard & Poor’s builder supercomposite index was down 0.8 percent to 267.09 at 1:38 p.m. in New York. The broader market rallied, sending the S&P 500 Index up 1.1 percent to 1,099.77 on better-than-anticipated earnings. “I would regard today’s numbers as a temporary blip,” said Michelle Meyer , an economist at Barclays Capital Inc. in New York. “Once we smooth through that volatility, home sales will continue to improve. The tax credit isn’t the only thing that’s helping sales.” The drop in prices, which has made buying more affordable, and a general improvement in the economy are among the factors that will contribute to a rebound, she said. The builder survey asks builders to characterize current sales as “good,” “fair” or “poor” and to gauge prospective buyers’ traffic. The survey also asks participants to gauge the outlook for the next six months. Broad Decline All three measures dropped for the first time since November. The builders group’s index of current single-family home sales fell to 17 this month from 18 in September. The gauge of buyer traffic dropped to 14 from 17, and a measure of sales expectations for the next six months decreased to 27 from 29. Confidence decreased in three of four regions, led by a four-point slump in the West. The Northeast was the only region to register a gain. The Mortgage Bankers Association, National Association of Home Builders and the National Association of Realtors today sent a letter to Treasury Secretary Tim Geithner , White House economic adviser Lawrence Summers and Housing and Urban Development Secretary Shaun Donovan requesting an extension of the credit for at least a year after it expires on Nov. 30. The three groups urged Congress to expand the initiative to include all, not just first-time, buyers of primary residences, increase the amount of the credit and make the funds available for closing. The Realtors’ association estimated the program generated about 355,000 more home sales than would have been the case. Sales Gains Sales of new homes dropped to a four-decade-low 329,000 annual pace in January. Purchases climbed in six of the next seven months, reaching a 429,000 pace in August. Commerce Department figures on September sales are due next week. If Congress extends the credit and credit begins to flow again “we can turn this thing around by the middle of next year,” NAHB President Jerry Howard , said in an interview on Bloomberg Television. If lawmakers don’t act quickly, “then the housing industry is in jeopardy. The group projects an extension for another year will create 350,000 jobs, generate $28.2 billion in wages and business income and $11.6 billion in additional tax revenue. Preparing for Rebound D.R. Horton Inc., the largest U.S. homebuilder by revenue, is among companies projecting the recent improvement will be sustained. The Fort Worth, Texas-based company said last month it is buying finished lots, rather than building on undeveloped land it already owns, to boost its construction pipeline in anticipation of a housing revival. “There have been some small encouraging signs in our sales and our average sales prices,” Bill W. Wheat, D.R. Horton’s chief financial officer, said on a Sept. 30 call with investors. Stabilization in residential construction is among the reasons economists project the U.S. began to grow again last quarter. The world’s largest economy probably expanded at a 3.2 percent annual pace from July through September, according to the median estimate of economists surveyed earlier this month. To contact the reporter on this story: Shobhana Chandra in Washington schandra1@bloomberg.net .

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China’s fiscal revenue jumps 33% in September

October 18, 2009

China’s fiscal revenue jumps 33% in September

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