Finance & Business World

Portugal

Looking for health insurance? Find a variety of affordable medical insurance plans.

An unusual small claims lawsuit by a Honda hybrid owner took another complicated turn Wednesday with additional arguments that prompted a commissioner to delay a ruling for more consideration.

Superior Court Commissioner Douglas Carnahan said he was aware of “a media blitz on this case,” and wanted to be clear on all of the issues raised by Honda owner Heather Peters.

Peters told the court she was anxious to get the matter resolved and did not want to waste the court’s time.

“You’re not wasting the court’s time,” said Carnahan. “These are serious issues affecting more people than just you.”

Honda representative Neil Schmidt showed up for the hearing with a stack of envelopes that the commissioner estimated as 8 inches high, purportedly containing letters from satisfied Honda owners.

Carnahan declined to open the envelopes, saying it would just prolong the hearing that has already gone on longer than most small claims court actions.

Peters said she did not want to see the letters and had submitted her own testimonials from those who are dissatisfied with the cars.

“I’ll stipulate there are people who love their cars,” she said as she pointed to the audience where six other disappointed Honda owners were seated, including a woman who drove from Sacramento to attend the hearing.

The woman, Kathy Wood, of Elk Grove said outside court, “I drove from Sacramento because if she can do all this that’s the least I can do.”

Peters, a former lawyer, has been using the Internet to try to rally other Honda hybrid owners to follow her example and go to small claims court rather than accept a proposed class-action settlement by Honda.

Peters bought her car in April 2006.

Peters claimed the car never came close to the 50 miles per gallon (21.26 kilometers per liter) promised and that it got no more than 30 miles per gallon (12.75 kilometers per liter) when the battery began deteriorating. She still owns the car and wants to be compensated for money lost on gas, as well as punitive damages.

She bolted from a class-action lawsuit in order to sue for $10,000 rather than agree to a proposed settlement by Honda with thousands of car owners that would give each owner $100 to $200 and a $1,000 credit on the purchase of a new Honda.

She has said that if all owners of the problem cars won in small-claims court, it could cost Honda $2 billion

Wood said she is planning to opt out of a class-action suit.

“I’m never buying a Honda again,” Wood said.

Schmidt presented charts that he said showed that even with the decreased mileage, Peters benefited from having the car. She called his calculations “laughable.”

“If Honda snuck into my garage and siphoned gas out of my car, that’s a crime,” Peters told the commissioner. “That’s what they’re doing.”

Honda also sent Darren Johnson, its manager in charge of certifications, to explain how Honda tests its vehicles in relation to tests by the environmental protection agency.

Schmidt claimed there was no fraud and said “we’re being sued for telling the truth and she actually benefited from having the hybrid.”

Carnahan said he was taking the matter under submission and would have a ruling probably next week or at least before the Feb. 11 deadline for people to opt out of the class action case.

Outside court Peters said, “I feel great. I did my best. However he decides it I’m happy I did it. It’s brought to light a lot of background stuff that people should know.

“I’m the trailblazer here,” she said, “and everyone else can follow what I did.”

Source

Free online car insurance quotes. Get insurance rate comparisons, and buy your auto insurance policy instantly.

China is allowing the nation

Thousands of Romanians, including teenage students who cut class, marched through their capital on Thursday to demand the resignation of their government for imposing harsh austerity measures in order to receive international loans for the nation’s battered economy.

It was one of the largest protests in recent times in Bucharest and came after a week of sometimes violent anti-government demonstrations.

As the march reached University Square, protesters blocked traffic and shouted what has become a trademark slogan aimed at President Traian Basescu: “Get out, you miserable dog.”

The square _ a focal point of recent protests _ is historically significant for Romanians because it was a centerpiece of the 1989 anti-communist revolution that led to Romania’s birth of democracy.

On Thursday, some protesters pretended to hang Basescu and his close political ally, Tourism and Regional Development Minister Elena Udrea, by stringing their dummies to gallows set up in the square.

“Resign!” and “Down with Basescu!” other protesters screamed.

Some 14-year-old students at a school located along the route of the march abandoned class to join the demonstration. “To prison with you!” the students yelled at their president.

Police said 7,000 attended the rally, while organizers claimed the crowd was far larger.

In 2009, Romania took a two-year euro20 billion ($27.5 billion) loan from the International Monetary Fund, the European Union and the World Bank as its economy shrank by 7.1 percent. It imposed harsh austerity measures under the agreement, reducing public wages by 25 percent and increasing taxes. Anger has mounted over the wage cuts, slashed benefits, higher taxes and widespread corruption.

On Thursday, Basescu made his first public appearance since the protests began a week ago in an address to ambassadors in Bucharest. He spoke about Iran, the Middle East, domestic reforms and the “Arab Spring,” but did not touch on the demonstrations or the anger over the state of Romania’s economy.

During the Bucharest rally, one protester who only identified himself as Tudor, a 43-year-old locksmith said: “We want decent salaries and pensions. We want change _ from the top to the bottom.”

Another protester, a 55-year-old nurse named Lorelei said, “We wouldn’t have needed to have austerity measures if our governments hadn’t stolen so much and bled us dry.” She said she has attended all this week’s anti-government rallies.

Three opposition parties organized Thursday’s march, with protesters arriving in the capital from all over the country. Opposition leaders and Romanian personalities addressed the crowd before the march.

Source

The Greek government and its creditors return to the negotiating table this week to revive stalled talks on a debt swap as German Chancellor Angela Merkel places pressure on both sides to forge a deal.

Greek Finance Minister Evangelos Venizelos said two days ago that talks with the Institute of International Finance will resume on Jan. 18. The Washington-based IIF, which represents banks holding the bonds, said on Jan. 14 there is a

Banks are hoarding the European Central Bank

Maybe the best person to take on issue number one — the economy — should be an economist?

At least, that’s the thought of Laurence Kotlikoff, an economics professor at Boston University. He’s planning on throwing his hat in the ring next week, announcing he’s running for president as a third-party candidate.

"I think I may be the first economist to run for president," Kotlikoff said. "We see economists now running Greece and Italy. It’s not everyday that an economist decides to work this way for his country — but I’m one of those cases."

Kotlikoff has never before run for public office. His goal is to secure a place on the 2012 ballot as an independent through a new online nomination site, AmericansElect.org.

The nonpartisan group, which has raised $22 million so far, aims to put an alternative candidate on the ballot, chosen by online voters through a three-stage primary.

CNN: New group paves way for alternative 2012 choice

In addition to his role as an economics professor, Kotlikoff is the author of 15 books and a regular columnist for Bloomberg.com. He has also served as a consultant to Fortune 500 companies, foreign governments, central banks and international agencies like the International Monetary Fund and the World Bank.

Kotlikoff’s platform centers on what he calls the "Purple Plan." Purple, because he hopes it will appeal to both blue Democrats and red Republicans, and all Americans in between.

Political observers question whether a nonpartisan candidate could have a serious shot at winning, and it’s not as if Kotlikoff is the only alternative candidate out there. Currently 165 people, not in the Republican or Democratic parties, are on file with the Federal Election Commission as presidential candidates.

Still, he hopes his campaign will have an impact saving account pay day loan.

"I’m hopeful that my candidacy will be taken very seriously," he said. "And that young people in particular will realize this is someone who is really focused on their interests."

If he does win, Kotlikoff pledges to eliminate income taxes on both individuals and businesses, as well as estate and gift taxes. Instead, he would institute a progressive sales tax and inheritance tax, and make the payroll tax highly progressive.

Kotlikoff would also replace the current health care system with one under which all Americans receive a voucher each year to purchase a standard health plan from the private-plan provider of their choice. In true economist speak, he says he would reallocate the roughly 10% of GDP that the federal and state government currently spend on Medicare, Medicaid and health exchanges, to pay for this program.

GOP 2012: What they (wouldn’t) cut

"I’m not suggesting that only an economist is qualified to be President, but I am suggesting that, other things equal, economic problems are likely to be better understood and fixed by an economist than a career politician or someone who has, for example, spent his life running a pizza chain," Kotlikoff wrote on his campaign website Kotlikoff2012.org.

Kotlikoff says he does not have a party affiliation and he plans to file an official statement of candidacy with the Federal Election Commission next week.

He previously worked as a senior economist on President Reagan’s Council of Economic Advisors, but voted for President Carter. He has also served as an economic adviser to former Senator Mike Gravel, who switched from the Democratic Party to the Libertarian Party amid his 2008 bid for president. 

Source

Europe won modest respite from its debt crisis Wednesday as Germany and Portugal borrowed with relative ease ahead of a hazard-filled few weeks for the 17 nations that use the euro.

But Greece’s new prime minister warned that his debt-crippled country has only three months to come up with new reforms so his country can stay in the eurozone and avoid a potential default _ a reminder of how the crisis can flare up at any time. And the news that a major Italian bank had to offer an unexpectedly large discount to raise new capital showed just how wary investors are of Europe’s shaky banks.

So far this year, markets have pushed concerns about Europe to one side, especially as countries have managed to raise the money they need.

Germany, the biggest contributor in Europe’s bailouts, managed to sell euro4.06 billion ($5.3 billion) in its benchmark ten-year bonds Wednesday at an average yield of 1.93 percent, down on the previous 1.98 percent it had to pay. And Portugal, which was bailed out last April, paid a markedly lower interest rate to borrow euro1 billion ($1.3 billion) in three-month treasury bills.

But Italian bank UniCredit saw its share price tumble over 10 percent on the news it was selling new shares at a large 69 percent discount to Tuesday’s closing price. UniCredit is trying to raise euro7.5 billion ($9.8 billion) to meet new European requirements for banks to thicken their financial cushions against possible losses.

Banks are an integral part of the debt crisis because they hold government bonds. A default or steep fall in the value of government bonds could inflict heavy losses on banks and choke off credit to the European economy. That’s why the regulatory authorities want Europe’s banks to raise their buffers by euro115 billion ($150 billion) over the next few months.

The German and Portuguese auctions come ahead of severe tests for eurozone leaders as they try to navigate their way out of a crisis over too much debt in some countries.

Eurozone governments are struggling to convince financial markets that indebted governments will not default and should be able to borrow at affordable rates to repay debts as they come due. Greece, Ireland and Portugal have needed bailouts, while much larger Italy and Spain have seen their borrowing costs rise ominously.

Italy, the recent focus of the crisis, must borrow to cover euro53 billion ($69 billion) in expiring debt in the first quarter alone in debt auctions beginning Jan. 13. That will test whether the government of new Prime Minister Mario Monti is making progress in regaining market confidence through budget cuts and efforts to improve weak economic growth.

Further trouble could come from a slowing eurozone economy that may already have shrunk in the fourth quarter.

Additionally, Greece must also win approval of a second, euro130 billion ($169 billion) bailout, without which it can’t pay its debts, and strike a deal with creditors for a 50 percent reduction in their holdings of Greek debt to try to put the country back on its feet.

Greek Prime Minister Lucas Papademos warned union leaders and business groups Wednesday that decisions made in the next few weeks, ahead of a new visit by international debt inspectors, will determine whether Greece remains in the 17-nation eurozone or reverts to its pre-2002 currency, the drachma.

Portugal looks like it’s in better shape at the moment. The rate it had to pay at its auction fell to an eight-month low of 4.346 percent. Although Portugal cannot tap long-term bond markets at a reasonable price, it has sought to maintain a market presence by issuing shorter-term debt.

Analysts said the improvement may represent a sign that Portugal is regaining the markets’ confidence as it carries out spending cuts and revenue increases in return for its euro78 billion ($102 billion) bailout.

“There’s been an improvement in the risk perception of Portuguese debt, which has driven rates down” said Filipe Silva, debt manager at Portuguese financial group Banco Carregosa. “Now we just need to see whether it holds.”

Germany’s auction was better than one in November which raised fears that Europe’s debt crisis was spiraling out of control when the government sold only 65 percent of debt on offer.

Still, there was some concern over the amount of German bunds investors actually wanted Wednesday. Bids for euro5.14 billion ($6.7 billion) worth of bonds exceeded the full amount on offer of euro5 billion ($6.5 billion), but only barely, counting euro943 million ($1.23 billion) the government kept back for secondary market operations.

“Yes, it was covered, so that’s a relief,” said Marc Ostwald, a markets strategist at Monument Securities. “On the other hand, the coverage was poor.”

Germany can borrow cheaply because its economy is the strongest in the eurozone but concerns about the costs of bailing out fellow eurozone nations have raised questions about Germany’s finances as well.

Wednesday’s auction results follow a recent trend. On Tuesday, the Netherlands saw its borrowing rates fell to near zero percent in a pair of short-term auctions, in a sign that investors are searching out what they consider to be Europe’s safer assets.

Italy also sold large chunks of debt last week and analysts say the run of smooth auctions may be largely due to a massive euro489 billion ($636 billion) infusion of cheap, 3-year credit to eurozone banks by the European Central Bank.

Some of that cheap money may be being used by some banks to buy higher-yielding short-term debt. Italy’s longer-term borrowing rate in the markets remain at dangerously elevated levels near 7 percent, a point that prompted Greece, Ireland and Portugal to seek bailouts.

Source

India

Eleventh-hour contract talks have started between two Saint Louis area hospitals and a leading insurer who had been locked in an impasse, according to officials on both sides.

Representatives of St. Louis University Hospital and Des Peres Hospital as well as Anthem Blue Cross and Blue Shield of Missouri and HealthLink Inc., confirmed Tuesday that limited talks occurred last week.

So far, negotiators have failed to reach an agreement that may avert an end-of-the-year contract deadline. And the impasse may result in thousands of patients fleeing to other medical providers.

Both sides offered widely different accounts Tuesday of their recent talks, which were apparently held via phone calls, conference calls and emails, but not in person. They accused each other of undermining or walking away from the negotiations. And they could not agree on which offer or counter-offer is currently on or off the table - or even if talks will likely move forward. 

A spokeswoman for Tenet Healthcare Corp. of Dallas, which owns the two hospitals, said that WellPoint Inc. of Indianapolis, which owns the two health insurance plans, had delivered an ultimatum in the form of a new, only slightly better contract proposal that the hospitals rejected last Friday.

“They’ve said, ‘Take it or leave it,’” said Laura Keller, a spokeswoman for SLU Hospital. “They offered an increase that is so low it doesn’t keep up with the increase in cost of taking care of patients.”

But a spokesman for Anthem insisted that the negotiations were still ongoing - and that the insurer is in fact examining an earlier offer from the hospitals.

“We are incredulous,” said Deb Wiethop, an Anthem spokeswoman. “We’re not aware that the negotiations are over. … We received a proposal from Tenet on Dec. 19. We’re going to look at it and get back to Tenet in January.”

Wiethop acknowledged that the hospitals had rejected an offer last Friday from the insurer. “It’s not a ‘take it or leave it’ proposal,” she said.

The two hospitals announced in early December that - because of a breakdown in talks - they would cancel their managed care contracts with Anthem as well as HealthLink as of Jan. 1. This termination does not apply to SLUCare physicians.

Without the contracts, Anthem and HealthLink customers would pay significantly higher rates next year for out-of-network care at both of the hospitals. And if that occurs, it would no doubt drive away many patients who would ordinarily visit Des Peres Hospital or SLU Hospital to other competing St. Louis-area hospitals that accept WellPoint’s health plans.

Under the existing contracts, the two hospitals’ agreements with HealthLink patients will end on Dec. 31. However, patients covered by the Anthem contract will continue to receive care at ‘in-network’ rates until Feb. 22.

Source