04/03/2012 (5:32 pm)

Mixed view on China manufacturing

Filed under: marketing, mortgage |

China watchers got a mixed view over the weekend of the country’s all-important manufacturing sector.

China’s government reported that manufacturing expanded in March, while a closely-watched private report said factories struggled with poor demand for their products.

The National Bureau of Statistics said Sunday that its official index of purchasing managers’ sentiment rose to 53.1 in March from 51 in February. Any reading above 50 indicates expansion in the sector.

The March report marked the fourth consecutive monthly increase and the index’s highest reading in a year.

At the same time, banking company HSBC issued a report that showed factory output fell in March for the fourth time in five months.

"Factory output was reduced largely in response to lackluster demand from domestic and external markets," the HSBC report said on line pay day loans.

The contrasting reports follow a pattern of recent months, as the two indexes have diverged.

Investors and analysts have been concerned that China’s extraordinary growth may be slowing too quickly.

Chinese Premier Wen Jiabao rattled investors recently when he said that China’s new gross domestic product growth forecast for 2012 is 7.5%, down from an earlier prediction of 8%.

A "hard landing" by China could ripple throughout the world. Troubles in Europe, the largest market for China’s goods, have intensified fears about a China slowdown.

Of course, China’s growth far exceeds what many developed countries are experiencing. China’s GDP rose 9.2% last year, while the U.S. economy grew 1.7%.  

Source

04/02/2012 (4:28 am)

Employment Probably Kept Growing in March: U.S. Economy Preview - Bloomberg

Filed under: marketing, mortgage |

Payrolls in the U.S. probably increased by more than 200,000 workers in March for a fourth consecutive month as companies became more optimistic about the outlook for growth, economists said before a report this week.

Employment rose by 205,000 after climbing by 227,000 in February, according to the median projection of 54 economists surveyed by Bloomberg News. The last time hiring advanced at a similar pace and period was in late 1999-early 2000. The jobless rate probably held at a three-year low of 8.3 percent.

The pickup in hiring has boosted consumer confidence to a four-year high, raising the odds that gains in household spending, which accounts for 70 percent of the economy, can be sustained. The improvement in the job market may also help Americans weather the rising cost of gasoline, which Federal Reserve Chairman Ben S. Bernanke said posed a risk to growth.

03/29/2012 (7:32 pm)

Nike sues Reebok over Tebow apparel

Filed under: legal, uk |

Nike is suing rival Reebok for selling New York Jets uniforms and other Jets apparel with the name of its new quarterback Tim Tebow on them.

Nike (, Fortune 500) says it is the only company authorized and licensed to use Tim Tebow’s name on clothing. Reebok, a unit of German sporting equipment and apparel-maker adidas (), did not respond to requests for comment.

Tebow was traded from the Denver Broncos to the Jets on March 21, creating a media frenzy and a huge spike in demand for Tebow-related Jets apparel in the New York market.

But the trade came during a rare month when no company has the rights to sell licensed NFL apparel with both the team’s name or logo and a player’s name on it.

That’s because the rights deals are in the process of switching from Reebok to Nike. Two different agreements cover licensing: one for players’ names, which switched over on March 1; and one for the NFL teams, which goes into effect on April 1.

Lin merchandise booms

"There’s generally nothing going on this time a year," said Matt Powell, analyst with SportsScanINFO, which tracks sales of licensed apparel. "A dead zone like this normally wouldn’t matter in March, unless there’s Tebow-mania."

Lin files to trademark ‘Linsanity’

To sell a piece of licensed apparel with both a team’s name and a players’ name, a company needs a rights agreement with both the National Football League and either the licensing arm of the NFL Players Association or the player himself cash advance america.

Nike’s suit says that it already has such a deal with Tebow, as well as with the union. But the NFL’s own 10-year licensing deal doesn’t change from Reebok to Nike until Sunday, April 1.

So right now Reebok can sell uniforms and other apparel with team name and logo, but not with a player’s name, unless it has a deal with that player, according to Nike’s suit. But Nike can’t sell any apparel featuring any team names or logos until this Sunday.

Tebow’s uniform was the second most popular of any NFL player last season, according to Nike’s suit. And according to SportsScanINFO, demand for Jets apparel soared last week after the trade was announced.

Tebow’s Super Bowl appearance

"Reebok has sought to take advantage of this unique, short-lived opportunity by supplying, without authorization or license, Tebow-identified New York Jets apparel to retailers in New York and elsewhere around the country," said the suit.

NFL spokesman Brian McCarthy said the league does not have a comment on the suit.

Nike’s suit, which was filed in federal court in New York, seeks to block Reebok from further sales, de story any existing Tebow-Jets apparel not yet sold, and compensate Nike with triple damages based on Reebok’s sales of the Tebow-Jets items. 

Source

03/25/2012 (12:08 am)

Central Bankers Debate Best Criteria for Setting Interest Rates - Bloomberg

Filed under: bank, mortgage |

Central bankers at a Federal Reserve conference in Washington rekindled a debate over the best criteria for altering interest rates, pitting simple rules against complex models that estimate growth and inflation.

Lars Svensson, a deputy governor for Sweden

03/18/2012 (11:00 am)

Think twice before questioning Dow

Filed under: legal, mortgage |

Last Tuesday the Dow Industrials popped firmly above 13,000, surpassing the peaks of mid-2011. Most remarkable is the stunning recovery of the Dow Industrials up 23.67 per cent from its 52-week low of 10,655 posted on Monday, Oct. 3, 2011.

Dow 13000 also means a 90 per cent retracement of the losses sustained during the great 2007-2008 financial crisis.

Quite a remarkable reward for the brave who elected to be invested, and quite a frustrating letdown for the bears who are still waiting for the double dip recession and the related test of the 2009 lows. The bears still argue that current stock prices are not sustainable because of the unresolved issues of the eurozone, the U.S. housing and employment problems and a slowing of the Chinese economy.

Now according to the financial media it appears even bullish investors are beginning to question the ability of the Dow and most of the world bourses to hold at these lofty levels. Should they listen to the bears and cash in, or should they remain fully invested?

The latest worry served up by the bears is the failure of the Dow Transportation average to

03/15/2012 (5:08 am)

Senate passes highway, transit programs overhaul

Filed under: Stock market, uk |

The Senate voted Wednesday to overhaul transportation programs and keep aid flowing to thousands of construction projects while strengthening highway and auto safety.

The 74-22 vote stepped up pressure for quick action by House because the government’s power to collect about $110 million a day in federal gasoline and diesel taxes, the main source of revenue for highway and transit programs, is set to expire March 31. If a final bill isn’t on the president’s desk by then, Congress would have to approve a temporary extension to avoid a shutdown of the programs, including the furlough of Federal Highway Administration employees and the layoff of construction workers.

The White House praised senators for trying to address these critical national needs and expressed hope the House “will move swiftly” and follow suit.

The Senate’s measure would spend $109 billion over about two years and preserve or create an estimated 2.8 million jobs. It would increase the amount of money available for states by raising current spending levels to take into account inflation over the past several years. That’s still far short of the dollars that two congressional commissions have said are needed to maintain aging highways, bridges and rail systems while expanding the nation’s transportation network to accommodate population growth between now and 2050.

The measure would reduce the number of federal transportation programs by roughly two-thirds in an effort to eliminate duplication. Senators preserved bicycle, pedestrian, safe routes to schools and rails-to-trails programs, targeted for elimination by Republicans, under a compromise that means they would have to compete with other programs for money.

For transit commuters, the bill would extend, back to Jan. 1, a tax break that allows the deduction of up to $240 a month tax-free from their paychecks for expenses incurred traveling to work. That had expired at the end of 2011.

On the safety front, the bill would require stricter federal oversight of the long-distance and tour bus industries through deadlines for buses to have seat belts, stronger roofs, anti-ejection windows and rollover crash avoidance systems. The bus industry carries about 750 million passengers a year, roughly the same as the domestic airline industry.

Other safety provisions include requiring that automakers provide rear seat-belt reminder systems to get children and other backseat passengers to buckle up, and testing child safety seats in frontal and side impact crashes.

The bill would let Washington reward states with extra safety money if they require graduated licenses for teenage drivers, permit police to pull over and ticket drivers for seat-belt and booster-seat violations, and mandate that convicted drunken drivers use ignition-lock devices.

Safety advocates criticized the broad exemptions from federal commercial driver’s licensing, vehicle inspection and other safety requirements for agricultural trucks operating with 150 miles of their farms. Farm lobbies said the rules hinder farmers’ ability to get their products to market.

States would have greater discretion over how to spend federal aid. But the bill would mean new requirements aimed at preventing waste and ensuring that national goals are met.

A credit assistance program championed by Los Angeles Mayor Antonio Villaraigosa that helps leverage private investment for transportation projects of national and regional significance would grow by tenfold to $1 billion. In the past, the program has generated as much as $30 in private capital for every $1 in aid.

Sen. James Inhofe, R-Okla., co-author of the measure, said the bill “”probably will go down as one of the most significant pieces of legislation this year.”

One thing the bill would not do is resolve how to keep the federal Highway Trust Fund solvent beyond next year.

The largest sources of money for the fund, which pays for highway and transit programs, are federal fuel taxes: 18.4 cents a gallon for gasoline and 24.4 cents a gallon for diesel. Revenue from those taxes has declined since the economic downturn in 2008 and because the fuel efficiency of cars and trucks is increasing.

The bill would pay for highway programs through a combination of fuel taxes, cuts to other federal programs and tax changes, but also would drain the trust fund. Some senators have criticized provisions that are supposed to pay for transportation programs since they would raise about $10 billion over 10 years, but spend it in the first two years.

Efforts by House Republican leaders to pass their own, five-year bill without concessions to Democrats have fallen apart in recent weeks. The House returns next week from a weeklong recess.

Pointing to the large bipartisan vote in favor of the bill, Sen. Barbara Boxer, D-Calif., urged House Republicans to consider passing the Senate measure as it is “to avert any crisis.”

“Why would they want to reinvent the wheel?” Boxer asked.

Michael Steel, a spokesman for House Speaker John Boehner, R-Ohio, said the House plan is to “take up something that looks like” the Senate bill “unless the House coalesces around a better alternative, which we are actively pursuing.”

Source

03/13/2012 (3:08 pm)

Euro Fate Depends Whether Wyplosz or Kirkegaard Is Right - Bloomberg

Filed under: Uncategorized, real estate |

Charles Wyplosz is betting Greece isn

03/08/2012 (5:52 pm)

New iPad: A Jobsian upgrade, not Apple

Filed under: money, technology |

Now that we know everything there is to know about The New iPad and are busily making plans to camp out overnight when it first hits stores, it

03/07/2012 (2:56 am)

Congress Election Rout in India Risks Economy as Rahul Gandhi Flops Again - Bloomberg

Filed under: management, marketing |

India

02/19/2012 (9:28 pm)

Japan, China to Help Europe Solve Crisis - Bloomberg

Filed under: money, online |

Japanese Finance Minister Jun Azumi said his nation and China will work together to help Europe solve its debt crisis through the International Monetary Fund.

Europe needs a bigger so-called firewall of added funding to contain the crisis, even as Greece shows some improvement in solving its financial woes, Azumi told reporters in Beijing yesterday after meeting Chinese Vice Premier Wang Qishan. Azumi, who met Chinese Finance Minister Xiu Xuren during his visit, also said he asked China to make its currency more flexible.

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