Actual finance blog

March 23, 2012

17 detainees escape in Iraq prison break

Filed under: Loans, news — Tags: , , , — Professor Besto @ 3:52 am

An Iraqi police official says 17 detainees have broken out of prison in a northern city.

Police spokesman in Kirkuk city Brig. Gen. Sarhat Qadir said Friday that 10 of those who escaped from an interior ministry detention center were al-Qaida-affiliated detainees.

Qadir said the detainees escaped at dawn from a small window using rope made of blankets. Police started a manhunt to find them, he said.

Kirkuk, which is 180 miles (290 kilometers) north of Baghdad, is the main oil hub in northern Iraq. It’s been the scene of sporadic insurgent violence and ongoing tensions between the region’s three main groups _ Kurds, Arabs and Turkomen.

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March 3, 2012

NJ CVS gives cancer meds to kids, not fluoride

Filed under: Uncategorized, news — Tags: , , , — Professor Besto @ 3:04 pm

CVS officials say only a few children ingested pills for breast cancer treatment that they mistakenly received from a New Jersey pharmacy instead of the fluoride pills that were prescribed.

No injuries related to the mixup had been reported as of Saturday afternoon. The two pills are similar looking but have distinctively different tastes.

Investigators are still working to determine how and why the errors occurred at the CVS pharmacy in Chatham. The pharmacy has acknowledged improperly dispensing the breast cancer-fighting drug Tamoxifen instead of chewable fluoride tablets to children in as many as 50 families between Dec. 1 and Feb. 20.

Fluoride helps prevent tooth decay and is usually prescribed by dentists for children. Tamoxifen is used to treat breast cancer and blocks the female hormone estrogen.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

The state attorney general’s office has begun a preliminary investigation into a CVS pharmacy’s mistaken distribution of pills for the treatment of breast cancer to children instead of the fluoride pills that were prescribed.

The attorney general’s consumer affairs division on Friday ordered a CVS pharmacy in Chatham to explain the mistake and provide the names of all its employees along with all emails, telephone calls, complaints, and other information related to the mix-up.

The pharmacy must provide the information by Wednesday and company representatives must appear before division officials for questioning under oath, an order signed by division Director Thomas R. Calcagni said.

Meanwhile, CVS Caremark said in a statement that it was “deeply sorry for the mistake that occurred” at its pharmacy in northeastern New Jersey, although the company did not explain how the mistake happened. There has been no report of injury.

Calcagni’s administrative order said the pharmacy acknowledged it improperly dispensed the breast cancer fighting drug Tamoxifen instead of chewable fluoride tablets to children in as many as 50 families between Dec. 1, 2011, and Feb. 20. Calcagni said in the order that the division wants to look into whether any laws were violated.

Fluoride helps prevent tooth decay and is usually prescribed by dentists for children. Tamoxifen is used to treat breast cancer in men and women and blocks the female hormone estrogen.

Mike DeAngelis, CVS’s director of public relations, said in a statement that the company had contacted or left messages for every family whose child was dispensed a 0.5 mg fluoride prescription in the previous 60 days. He said that “most of the families we have spoken to did not indicate that their children received any incorrect pills.”

“The health and safety of our customers is our highest priority and we are deeply sorry for the mistake that occurred … ,” DeAngelis said.

He said the company would continue to follow up with families who believe their children may have ingested incorrect medication.

“We are actively investigating this matter to determine how the mistake occurred in order to take corrective actions to prevent this from happening again,” DeAngelis said.

CVS Caremark, based in Woonsocket, R.I., runs the second-largest chain of drugstores in the U.S., after Walgreen.

If a child has taken one Tamoxifen pill, it’s not going to have a negative impact on their health. It’s highly unlikely a child would even be able to consume multiple pills, due to the strong taste.

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January 24, 2012

Charges drag down J&J 4Q profit, but sales rebound

Filed under: Prices, news — Tags: , , , — Professor Besto @ 4:32 pm

Johnson & Johnson said Tuesday that fourth-quarter profit was barely a tenth what it made a year ago as a slew of charges for recalls, litigation and an acquisition dragged down income. But the health care giant’s revenue jumped last year, ending an unprecedented two-year decline.

After two tough years overshadowed by an embarrassing series of product recalls and other problems, the maker of Tylenol, prescription drugs and medical devices managed to beat Wall Street’s forecast for adjusted profit and came in just below its revenue forecast.

The company said net income was $218 million, or 8 cents per share, down from $1.94 billion, or 70 cents a share, a year earlier.

Excluding charges, net income was $3.13 billion, or $1.13 per share.

Revenue totaled $16.26 billion, up from $15.64 billion in 2010’s fourth quarter.

Analysts polled by FactSet, on average, expected earnings per share of $1.09 and revenue of $16.28 billion.

“We delivered solid results for 2011, built on the strong growth of our recently launched pharmaceutical products, and continued the steady momentum of new product approvals across all our businesses,” CEO Bill Weldon said in a statement.

Revenue fell 3.4 percent in the U.S., to $6.99 billion, but jumped 10.2 percent in foreign countries, to $9.27 billion. The U.S. decline was mostly due to an 8 percent drop in sales of prescription drugs.

J&J said it expects 2012 earnings of $5.05 to $5.15 per share, excluding special items. Analysts had expected $5.20 per share.

In morning trading, shares of the company rose 23 cents to $65.23.

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January 18, 2012

Asia stocks rise, focus on China monetary policy

Filed under: Mortgage, news — Tags: , , , — Professor Besto @ 4:44 am

Asian stock markets rose Wednesday as expectations that China will loosen its monetary policy to boost growth overcame nervousness sparked by mixed earnings reports from big U.S. banks.

Benchmark oil rose above $101 per barrel while the dollar fell against the euro and the yen.

Japan’s Nikkei 225 index rose 1.4 percent to 8,579.80. Hong Kong’s Hang Seng added 0.3 percent to 19,685.87. South Korea’s Kospi was down 0.2 percent at 1,888.88 while Australia’s S&P/ASX 200 was up 0.2 percent at 4,223.60.

Benchmarks in Singapore, Indonesia and Malaysia rose while mainland China and Taiwan fell.

Investors cheered news out of China on Tuesday when the government said its economy slowed less dramatically in the fourth quarter than feared _ but still enough of a slowdown to persuade investors that Beijing will pursue a pro-growth monetary policy, analysts said.

“People have been buying stocks in anticipation of a relaxation in monetary policy by the Chinese government,” said Derek Cheung, chief investment officer at Neutron INV Partners Ltd. in Hong Kong. “The market expects this around Chinese New Year. If China doesn’t loosen around the new year, the market may come under pressure.” The holiday begins Jan. 23.

China is one of the biggest importers and slower growth could have global repercussions if it cuts demand for iron ore, industrial components and other goods from Australia, Brazil, Southeast Asia and elsewhere.

It would also mean less demand for U.S. and European capital goods for Chinese factories and construction sites, and smaller profits for U.S. and European companies that do business here. The luxury goods industry would also feel a significant pinch, since China is just about the only growth market for those.

Commodities shares jumped on the growth data out of China. Australian miners Fortescue Metals Group jumped 5 percent and Rio Tinto Ltd Low fee payday loans. added 1.5 percent after both companies reported target-beating production figures Tuesday.

But some financial shares came under pressure on weak quarterly earnings from some U.S. banks, including Citigroup Inc., which said its fourth-quarter income fell 11 percent due in part to lower investment banking income and an accounting charge.

Australia & New Zealand Banking Group fell 1.1 percent and Hong Kong-listed Agricultural Bank of China also lost 1.1 percent.

South Korean high-tech shares also slumped. Samsung Electronics Co., the top global manufacturer of flat screen televisions, memory chips and liquid crystal displays, fell 0.9 percent. LG Electronics shed 1.8 percent, and Hynix Semiconductor was 1.2 percent lower.

European shares ended mostly higher Tuesday on the heels of short-term debt auctions by Spain, Greece and Europe’s bailout fund that drew strong investor demand, despite recent credit rating downgrades by Standard & Poor’s.

Many had feared the downgrades would prevent them from obtaining funds and worsen a sovereign debt crisis in Europe.

On Tuesday, the Dow Jones industrial average rose 0.5 percent to close at 12,482.07. The Standard & Poor’s 500 index gained 0.4 percent to 1,293.67. The Nasdaq composite index added 0.6 percent to 2,728.08.

Benchmark crude for February delivery was up 66 cents to $101.37 per barrel in electronic trading on the New York Mercantile Exchange. The contract finished at $100.71 per barrel in New York on Tuesday.

In currency trading, the euro rose to $1.2779 from $1.2722 late Tuesday in New York. The dollar fell to 76.65 yen from 76.82 yen.

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January 5, 2012

New year starts with hopeful outlook on hiring

Filed under: Uncategorized, news — Tags: , , , — Professor Besto @ 2:44 pm

The job market is looking a little brighter at the start of the new year.

Weekly unemployment benefit applications have fallen to levels last seen more than three years ago. Holiday sales were solid. Service companies grew a little faster in December. And many small businesses say they plan to add jobs over the next three months.

The mix of private and government data released Thursday sketched a picture of an economy that is slowly strengthening, stoking optimism one day ahead of the government’s important read on December job growth.

“Businesses have increased hiring to meet the underlying pick-up in (consumer) demand,” said Neil Dutta, an economist at Bank of America Merrill Lynch.

The mostly positive reports had little impact on financial markets. Traders seemed more focused on the debt crisis in Europe, which could slow U.S. growth later this year. The Dow Jones industrial average dropped 37 points in midday trading. Broader indexes were mixed.

Weekly applications for unemployment benefits dropped to a seasonally adjusted 372,000 last week, the Labor Department said Thursday. That’s 11 percent lower than the same time last year.

The four-week average, which smooths fluctuations, fell to 373,250 _ the lowest level since June 2008.

When applications drop below 375,000 _ consistently _ they generally signal that hiring is strong enough to reduce the unemployment rate.

Steven Wood, an economist at Insight Economics, said applications last year averaged 411,000 per week, down from 459,000 per week in 2010.

That’s “a clear indication that the pace of layoffs has slowed,” Wood said.

U.S. service firms, which employ roughly 90 percent of the work force, grew a little faster in December, according to the Institute for Supply Management.

The trade group of purchasing managers said its index of non-manufacturing activity rose to 52.6. That’s slightly above November’s reading of 52 _ the lowest in nearly two years _ but well below last year’s high of 59.7 recorded in February.

Any reading above 50 indicates expansion.

An increase in new orders and stronger imports drove last month’s modest expansion. But a gauge of hiring showed many service firms were hesitant to add workers no fax payday advance.

Retailers, meanwhile, reported solid but not spectacular sales gains last month. And much of the increase stemmed from heavy discounting that will likely cut into profits.

Sales rose 3.5 percent in December for a group of 25 retail chains tracked by the International Council of Shopping Centers. Holiday sales, which cover the last two months of the year, rose 3.3 percent, a decent rise but less than last year’s gain.

Small businesses remain encouraged about their plans to hire over the next three months. The National Federation of Independent Business says the proportion of those firms that expect to add workers is slightly off from the three-year high hit last month.

Economists are predicting that overall hiring increased in December and will strengthen this year.

John Ryding, an economist at RDQ Economics, forecasts that employers added 180,000 jobs last month, a big jump from November’s 120,000 net jobs.

Economists surveyed by the Associated Press project that the economy will generate an average of 175,000 jobs per month this year. That would be a step up from average monthly gains of 130,000 last year and 78,000 in 2010.

In November, the unemployment rate fell to 8.6 percent from 9 percent. Still, about half that decline occurred because many of the unemployed gave up looking for work. When people stop looking for a job, they’re no longer counted as unemployed.

The pickup in hiring reflects some modest improvement in the economy. Growth will likely top 3 percent at an annual rate in the final three months of this year, economists expect. That would be a sharp improvement over the 1.8 percent growth in the July-September quarter.

Even so, many economists forecast that growth could slow to roughly 2 percent this year. Europe is almost certain to fall into recession because of its financial troubles. And without more jobs and higher incomes, consumers may have to cut back on spending. That could drag on growth in 2012.

___

AP Economics Writer Martin Crutsinger contributed to this report.

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December 12, 2011

Lowe’s stands by decision to pull ads

Filed under: news, technology — Tags: , , , — Professor Besto @ 7:08 pm

Lowe’s is planning to stick by its decision to yank its ads from a reality TV show about American Muslims despite the growing opposition the home improvement chain is facing over the move.

California Sen. Ted Lieu put a statement out on Sunday that he is considering calling for a boycott of Lowe’s Cos., sparking criticism of the chain from both inside and outside of the Muslim community.

On social media web site Twitter, actor Kal Penn is began directing people to a petition on signon.org in support of the TLC cable network show, “All-American Muslim.” By Monday afternoon, there were about 9,200 signatures.

On Monday, U.S. Representative Keith Ellison of Minnesota, who is Muslim, released a statement condemning Lowe’s for choosing “to uphold the beliefs of a fringe hate group and not the creed of The First Amendment.”

And Democratic state Rep. Rashida Tlaib of Detroit, the first Muslim elected to the Michigan Legislature, voiced her concerns directly with the company. She wrote a letter to Lowe’s CEO Robert Niblock.

“I told them I was extremely disappointed that you give credibility to these hate groups,” Tlaib said. “People of Muslim faith are being attacked. It’s disappointing, disheartening.”

Meanwhile, Lowe’s, based in Mooresville, N.C., said it stands by its Sunday statement that it pulled the ads after the show became a “lightning rod for people to voice complaints from a variety of perspectives - political, social and otherwise.” The company also said that “dozens” of other advertisers pulled their advertising from the show.

“All-American Muslim” premiered last month and chronicles the lives of five families who live in and near Dearborn, Mich., a Detroit suburb with a large Muslim and Arab-American population. TLC spokeswoman Laurie Goldberg said “All-American Muslim,” which airs on Mondays on TLC and ends its first season on Jan. 8, has garnered a little over a million viewers per week.

“We stand behind the show All American Muslim and we’re happy the show has strong advertising support,” she said.

Lowe’s stopped running commercials during “All-American Muslim” after a conservative group known as the Florida Family Association e-mailed companies to ask them to stop advertising on the show. The group said the program is “propaganda that riskily hides the Islamic agenda’s clear and present danger to American liberties and traditional values.”

Florida Family Association, based in Tampa, Fla., said that more than 60 advertisers that it e-mailed, from Amazon to McDonalds, have also stopped advertising on the show. But so far, Lowe’s is the only major company to confirm that it pulled ads from the show.

Amazon and McDonald’s and other advertisers did not immediately return calls seeking comment.

Meanwhile, Atlanta-based Home Depot, which was cited by Florida Family Association as a company that stopped advertising, said Monday it never intended to run any ads during the show. But spokesman Stephen Holmes said one commercial ran “inadvertently and without our knowledge.”

The controversy highlights the fine line companies must walk when they select shows to advertise on.

Branding expert Laura Ries said Lowe’s made two mistakes. The first was advertising during a show that could be construed as controversial. The second was pulling advertising too quickly.

“For a big national brand like Lowe’s, they’ve always got to be incredibly careful when advertising during any show that could be deemed controversial,” she said. “Will it seriously damage the brand in the long term? Probably not. But it is a serious punch in the stomach.”

Overall, analysts said the furor is unlikely to damage Lowe’s brand in the long term.

“For a company that generates $50 billion in annual revenue, I don’t view this as something that will have a meaningful impact,” said Morningstar analyst Peter Wahlstrom. “I’m hopeful this blows over and I’m certain management is as well.”

Still, some worry Lowe’s ad flap could do damage to Muslims living in the Metro Detroit area.

Florida pastor Terry Jones held an anti-Islam rally earlier this year outside Dearborn City Hall after being barred from protesting outside a Muslim mosque in the city. A burning of the Quran in March at Jones’ church in Florida led to a series of violent protests in Afghanistan that killed more than a dozen people.

“Metro Detroit and Dearborn have been the focal point of a number of anti-Muslim movements,” said Dawud Walid, executive director of Council on American-Islamic Relations’ Michigan chapter. “There are organized forces in our society that want to marginalize American Muslims to the point where they don’t want to see any portrayals of Muslims that regular Americans can connect to.”

Corey Williams in Detroit, Rachel Zoll in New York and Mitch Stacy in Tampa, Fla., contributed to this report.

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December 4, 2011

Italian governnment discussing new measures

Filed under: Business, news — Tags: , , , — Professor Besto @ 1:04 pm

Premier Mario Monti convened a Cabinet meeting in Rome on Sunday to discuss emergency austerity and growth measures aimed at saving the euro currency from collapse.

Monti is under extreme pressure to come up with speedy and credible measures that will persuade markets to stop betting against the common currency.

The Cabinet was originally scheduled to meet Monday, but was moved up following Monti’s weekend of meetings with political parties, unions, business groups and consumer lobbies.

The premier hasn’t disclosed details of his rescue plan, but has said it includes both austerity cuts and measures to boost growth in Italy’s anemic economy. He has promised it would be socially equitable, and that it would go after those who hadn’t paid their share of taxes before.

With the meeting still under way, Monti’s office issued a statement saying the package was still under discussion.

The various parties briefed have said the package likely includes reinstating an unpopular home property tax abolished by Berlusconi, raising the sales tax and the income tax at the highest brackets by a few percentage points, and requiring Italians to work more than the 40 years now needed to receive a pension.

The head of Italy’s industrial lobby said Sunday that the survival of the common euro currency depends on Italy’s coming up with very strong austerity and growth measures _ followed by a concerted effort at the European level so that Italian sacrifices are not in vain.

Confindustria President Emma Marcegaglia told reporters after meeting with Monti that the measures are “very heavy.”

The coming days “will decided if the euro will survive or not no fax payday loans. The first move to save the euro is in Italian hands, with a very strong measures,” Marcegaglia said. The measures will be “fundamental to saving Italy and to saving the euro.”

Italian borrowing costs have spiked, which could spell disaster if Italy is unable to keep up on payments to service its enormous debt of euro1.9 trillion ($2.57 trillion), or 120 percent of its GDP.

Unlike Greece, Portugal and Ireland, which got bailouts after their borrowing rates skyrocketed, the eurozone’s third-largest economy is considered to be too big to bail out. An Italian default would be disastrous for the 17-member eurozone and reverberate throughout the global economy.

Union head Raffaele Bonnani, however, urged Monti to reconsider raising the pension age across the board, saying that workers in hard labor should be allowed to retire without added requirements, and that women who join the work force after raising children might have to work well into old age if the 40-year seniority requirement were raised.

But he said he was against calling a general strike at this sensitive moment, and would instead pursue a policy of negotiation with the government.

Marcegaglia said the measures were concentrated on raising taxes _ and to balance that she called for an immediate look at ways to cut political and bureaucratic spending. “This kind of fiscal pressure is not sustainable,” she said.

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November 29, 2011

‘Cyber Monday’ sales rise

Filed under: legal, news — Tags: , , , — Professor Besto @ 1:08 pm

A new report says a record number of shoppers made purchases online on the Monday after the Thanksgiving holiday weekend, pushing sales up 33 percent.

The report from IBM Benchmark says the average order rose 2.6 percent to $193.24 on the day known as “Cyber Monday,” when retailers amp up online promotions. The data says about 80 percent of retailers offered online deals.

It says traffic peaked at 2:05 p.m. Eastern.

About 6.6 percent used a mobile device to shop, up from 2.3 percent in 2010. The Cyber Monday numbers point to Americans’ growing comfort with using their personal computers, tablets and smartphones to shop.

A clearer picture of how holiday sales are shaping up will come on Thursday, when major retailers report November sales.

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October 12, 2011

Kirin wins court case to control Brazil beer maker

Filed under: Business, news — Tags: , , , — Professor Besto @ 4:08 am

Kirin Holdings Co. says that a Brazilian court has revoked an injunction blocking the company’s $2.5 billion takeover of Brazilian beer producer Schincariol.

The ruling in Sao Paulo paves the way for the Japanese beer maker to assume control of Schincariol and gain a valuable foothold in the rapidly growing Brazilian market.

In August, Kirin announced a $2.5 billion deal to buy the 50.45 percent stake owned by brothers Alexandre and Adriano Schincariol. Minority shareholders _ their cousins _ opposed the transaction and successfully requested an injunction.

Kirin, Japan’s No. 2 brewer, appealed the decision.

Schincariol is Brazil’s second-largest beer producer, known for brands such as Nova Schin, Devassa and Bem Loura.

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September 20, 2011

Nordstrom Rack to open second location in west St. Louis County next year

Filed under: marketing, news — Tags: , , , — Professor Besto @ 6:48 pm

The St. Louis region is not only getting its second Nordstrom department store this week — it will also soon have a second Nordstrom Rack.

A 35,000 square foot Nordstrom Rack, the retailer’s smaller off-price store, is scheduled to open in fall 2012 in Manchester. The store will be located on Manchester Road next to a Weekends Only Furniture Outlet. It is just east of the Manchester Highlands where there is a Costco, Walmart, Best Buy and more.

It will be about three miles from West County Center, where Nordstrom opened its first full-line department store in the region back in 2002.

On Friday, Nordstrom will open its second full-line department store at the St. Louis Galleria, just down the street from the Nordstrom Rack it opened last year.

“We find that our Racks do well when they’re located near full-line department stores,” said Brooke White, a Nordstrom spokeswoman. “That’s something that’s worked well for us.”

So I guess this must mean that the first Rack here has done well?

“Yes, we’re happy with our business at our store in Brentwood,” White said. “That’s really what helps us decide that we should move ahead.”

Nordstrom announced the new location in St. Louis today after the Post-Dispatch inquired about it on Monday.

Construction of the store is to begin immediately, according to Pace Properties, which will develop and own the building.

Nordstrom has been on a expansion boom with its Rack stores in recent years, especially as customers have gravitated toward more discount offerings in this economy. It opened about 17 Rack stores last year and plans to open 18 this year. The Manchester store is one of six stores planned for next year, White said.

Nordstrom Rack carries merchandise that is 50 to 60 percent off Nordstrom department store prices. About 20 percent of it comes from full-line Nordstrom stores. The rest is specially-purchased from the same brands, but will often be the previous year’s designs and will often have fewer bells and whistles.

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