Actual finance blog

World Bank President Robert Zoellick says the U.S. economy will likely limp along with slow growth and high unemployment but avoid a recession.

Zoellick told reporters Tuesday in Singapore that Europe’s debt crisis threatens to undermine the confidence of consumers and investors.

Zoellick said the challenges facing Europe are more “imminent” than those in the U.S.

He said European countries may need to deepen fiscal integration _ implying governments should sacrifice some control over their budgets so spending policies can be coordinated among countries using the euro.

Singapore Finance Minister Tharman Shanmugaratnam told reporters that weak economic growth in the U.S. and Europe was making them “extremely vulnerable to each new shock.”

Source

When I last checked in with the fellows at Aisle411, they had just launched their first smartphone application that helps users to locate products

Greece’s finance minister says the crisis-afflicted economy will shrink more than expected this year, putting pressure on the country’s deficit-cutting effort.

Evangelos Venizelos said Monday that the ministry forecasts the economy to shrink between 4.5 percent and 5.3 percent in 2011 _ considerably worse than initially estimated.

Venizelos told a press conference he will discuss the matter with representatives of Greece’s international creditors during talks in Athens this week no fax payday loans.

He said that, provided all austerity measures are fully implemented, the government should meet its target of cutting budget overspending from 10.5 percent of GDP to 7.5 percent this year.

Greece is surviving on rescue loans worth euro220 billion ($317 billion) from its European partners and the International Monetary Fund.

Source

CHARLOTTE, N.C.,

When a deep-pockets acquirer meets a reluctant target, a few more dollars will often turn “no” into an enthusiastic “yes.”

That’s not the case with Ralcorp, a St. Louis company that has just slammed the door in its suitor’s face for the third time.

ConAgra Foods, the Omaha, Neb.-based maker of Orville Redenbacher popcorn and Peter Pan peanut butter, wants this deal badly. It approached Ralcorp in March with a cash-and-stock offer of $82 a share, which it sweetened to $86 in May and to $94, all in cash, last week. The latest bid values Ralcorp at $5.2 billion.

Ralcorp has refused to even meet with ConAgra, and Chairman William Stiritz sent a letter on Friday saying the two companies “have nothing further to discuss.”

Just saying “no” isn’t usually an effective takeover defense, but Stiritz, when he’s not writing rejection letters, has moved to reshape Ralcorp by spinning off the Post cereal business and acquiring a unit that makes private-label bread dough.

Analysts say the dough deal will add to profits from Day 1, but the spinoff’s success is less certain. Ralcorp is betting that its two parts

The Toronto stock market fell back Wednesday as fresh worries about the European debt crisis helped stop a short-lived rally in its tracks.

The S&P/TSX composite index dropped 77.3 points 12,032 and the junior TSX Venture Exchange gained 8.69 points to 1,719.92.

The Senate emphatically passed emergency legislation Tuesday to avoid a first-ever government default, rushing the legislation to President Barack Obama for his signature just hours before the deadline. The vote was 74-26.

Obama planned to sign the bill promptly and also was making remarks at the White House.

Tuesday’s vote capped an extraordinarily difficult Washington battle pitting tea party Republican forces in the House against Obama and Democrats controlling the Senate. The resulting compromise paired an essential increase in the government’s borrowing cap with promises of more than $2 trillion of budget cuts over the next decade.

Much of the measure, which the House passed Monday night, was negotiated on terms set by House Speaker John Boehner, including a demand that any increase in the nation’s borrowing cap be matched by spending cuts. But the legislation also meets demands made by Obama, including debt-limit increases large enough to keep the government funded into 2013 and curbs on growth of the Pentagon budget.

“We’ve had to settle for less than we wanted, but what we’ve achieved is in no way insignificant,” said Senate GOP leader Mitch McConnell of Kentucky. “But I think it was the view of those in my party that we’d try to get as much spending cuts as we could from a government we didn’t control. And that’s what we’ve done with this bipartisan agreement.”

Many supporters of the legislation lamented what they saw as flaws and the intense partisanship from which it was forged. In the end, it was a lowest-common-denominators approach that puts off tough decisions on tax increases and cuts to entitlement programs like Medicare.

“What troubles me about it is that the bipartisan compromise also represents a kind of bipartisan agreement by each party to yield to the other party’s most politically and ideologically sensitive priority,” said Joseph Lieberman, I-Conn. “In the case of Democrats, it’s to protect entitlement spending. … In the case of Republicans, it’s to not raise taxes.”

The measure would provide an immediate $400 billion increase in the $14.3 trillion U.S. borrowing cap, with $500 billion more assured this fall. That $900 billion would be matched by cuts to agency budgets over the next 10 years.

The Senate vote was never in doubt after Majority Leader Harry Reid, D-Nev., and McConnell signed on. But like Monday’s House vote, defections came from liberal Democrats unhappy that Obama gave too much ground in the talks, as well as from conservative Republicans who said the measure would barely dent deficits that require the government to borrow more than 40 cents of every dollar it spends.

“This is a time for us to make tough choices as compared to kick the can down the road one more time,” said freshman GOP Sen. Jerry Moran of Kansas.

The measure sets up a fall drama that promises to again test the ability of Obama and Republicans to work cooperatively. It establishes a special bipartisan committee to draft legislation to find up to $1.5 trillion more in deficit cuts for a vote later this year. They’re likely to come from such programs as federal retirement benefits, farm subsidies, Medicare and Medicaid. The savings would be matched by a further increase in the borrowing cap.

There’s no guarantee the committee, to be evenly split between the warring parties, will agree on such legislation. But there are powerful incentives to do so because more budget gridlock would trigger a crippling round of automatic cuts across much of the budget, including Pentagon coffers.

And questions linger about the effect the grueling political free-for-all will have on the U.S. credit rating.

Treasury Secretary Timothy Geithner told ABC News that he didn’t know whether the debt-limit fight would cause America’s AAA credit rating to be downgraded. “It’s not my judgment to make,” he said. Geithner also said he fears world confidence in the United States was damaged by “this spectacle.”

Enactment of the measure provides welcome closure for Obama, who has seen his poll numbers sag during the debt-limit battle.

GOP presidential candidates such as Mitt Romney and Michele Bachmann issued statements opposing the legislation.

“As with any compromise, the outcome is far from satisfying,” Obama conceded in a video his re-election campaign sent to millions of Democrats.

In a tweet, the president was more positive: “The debt agreement makes a significant down payment to reduce the deficit _ finding savings in both defense and domestic spending.”

Source

When TD Canada Trust started opening branches on Sunday, I thought it wasn’t a big deal. Many bank branches stay open on Saturday for weekend help.

TD obviously knew what it was doing. In a survey of customer satisfaction, it ranked highest among the Big Five banks and widened its lead, compared to previous years.

The decision to open 300 Canadian branches (a quarter of its network) on the seventh day helped TD’s score jump to 780 out of 1,000 points — ahead of RBC, at 751 points.

Customer expectations are changing, according to Lubo Li, a senior director at J.D. Power & Associates, who led the research.

People wonder why only banks and government offices aren’t open Sunday. They believe it’s time to abandon “bankers’ hours.”

Each Big Five bank has a distinctive strength in giving value to customers, Li says.

RBC excels in “share of wallet,” which means finding ways to induce you to buy more products. Advice in the branches leads you to move your business there — and your family’s business, too.

BMO is innovative in using social media, ranking third with 741 points and moving ahead of Scotiabank (with 729 points) in the annual survey.

“Over 60 per cent of retail bank customers — including boomers and retirees — use social media, such as Facebook. It’s a great tool for communicating with your customers,” Li says.

Scotiabank is known for supporting charitable events, such as Toronto’s Caribbean Carnival, and doubling its wealth-management operations with the purchase of DundeeWealth Inc.

CIBC, fifth in line with 721 points, is narrowing the gap as a leader in mobile banking.

It’s offering younger customers an iPhone app to manage their money on the go.

“During the past year, all major banks in Canada have invested heavily in upgrading their customer-facing systems and processes, which has resulted in higher satisfaction,” J.D. Power said in a news release.

It’s great to see Canada’s banks use their profits to make customers happier. Before the 2008 credit crunch, they used their profits to make shareholders happier with annual dividend increases savings account payday advance.

Customers of Big Five banks stay with them for more than 20 years, Li says. This is quite different from the fickle customers in the United States.

Among mid-sized banks, President’s Choice Financial actually tops TD with a 786-point score. It’s ranked highly by customers because of low fees, clear account information and strong products.

ING Direct didn’t make the survey because the sample size was too small. With the launch of its Thrive chequing account last January, it should score highly next year.

(J.D. Power uses online responses from almost 13,000 customers who use a primary financial institution for personal banking.)

Do banks fail their customers in some areas? What brings down their scores?

Satisfaction with fees declined significantly among big and mid-sized banks and credit unions, Li says. Many raised fees, but did a bad job of explaining why fees were going up.

“People don’t like surprises. Sending a letter to customers about higher fees isn’t enough,” he says. “Using generic terms, such as ‘maintenance fees,’ isn’t enough. Banks need to use better communication.”

Problem resolution also shows growing dissatisfaction. Customers report a higher rate of unresolved problems and a lower rate of problem resolution after the first contact.

Here’s advice arising from the survey:

  Be a smart shopper. Make sure you understand fees and discounts that may apply to you.

  Focus on the quality of advice from a bank. Don’t accept one-size-fits-all recommendations that don’t meet your needs.

  Ask regularly about new products or services your bank offers. You could miss out on ways to manage your money and get useful benefits unless you pose the questions.

Ellen Roseman writes about personal finance and consumer issues. You can reach her at eroseman@thestar.ca.

Source

The NFL Players Association executive board and 32 team reps voted unanimously Monday to approve the terms of a deal with owners to the end the 4 1/2-month lockout.

Owners overwhelmingly approved a proposal last week, but some unresolved issues still needed to be reviewed to satisfy players; the owners do not need to vote again.

The sides worked through the weekend and wrapped up the details Monday morning on a final pact that is for 10 years, without an opt-out clause, a person familiar with the deal told the AP on condition of anonymity.

Owners decided in 2008 to opt out of the league’s old labor contract, which expired March 11. That’s when the owners locked out the players, creating the NFL’s first work stoppage since 1987.

NFLPA head DeMaurice Smith stepped outside of the group’s headquarters in Washington at about 2 p.m. to announce that players approved the pact.

“I know it has been a very long process since the day we stood here that night in March,” Smith said. “But our guys stood together when nobody thought we would. And football is back because of it.”

As he spoke, Smith was flanked by NFLPA president Kevin Mawae, Saints quarterback Drew Brees, Colts center Jeff Saturday and Ravens defensive back Domonique Foxworth, key members of the players’ negotiating team instant payday loan lenders. Brees is one of 10 plaintiffs in the antitrust lawsuit that players filed against the league.

Moments later, NFL Commissioner Roger Goodell walked into the building, joined by owners Bob Kraft of the New England Patriots, John Mara of the New York Giants and Jerry Richardson of the Carolina Panthers.

“I believe it’s important that we talk about the future of football as a partnership,” Smith said.

A tentative timeline would allow NFL clubs to start signing 2011 draft picks and rookie free agents on Tuesday. Conversations with veteran free agents also could start Tuesday, and their signings could begin Friday.

Under the proposed schedule, training camps would open for 10 of the 32 teams on Wednesday, 10 more on Thursday, another 10 on Friday, and the last two teams on Sunday.

Both sides set up informational conference calls for Monday afternoon to go over the details of the agreement. The NFLPA told player agents they would be coached in particular on the guidelines and schedule for signing free agents and rookies; the NFL alerted general managers and coaches they would be briefed in separate calls.

Source

WATERLOO, ONT.