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$LTNC #LOCKDIN on the drive , 2 berry cherry today, if I could afford to do 2
@LiveLockdIn
Performance #Nootropics a day I would ! 💪🏼🔒 these bevs work great for me, and I don’t have to get sick of the “natural flavour” like most sugar filled sodium packed energy drinks have! 💪🏼 #LOCKDINation
Thanks, I will check it out.
Have a good weekend.
watching BLDV that's about
After all this time, JCDS is the one I still suggest to people.
You got anything new going?
thanks!
anything good your playing/ watching?
Congrats on EFLN.
Knew that was a frustrating play. Glad it finally paid out for ya.
Good Morning Green Money! IDVC get in low here, Big updates anyday
hey im still around nothing really popping yet for JCDS so just holding and watching..
Playing efln that pos took off like a rocket was holding like 15m shares for like 5 years lol..
Dude...you out there?
You've got gains.
Havent seen you post in few days.
GLTU, IMO and FWIW.
India factory activity at eight-month high in March on strong demand - PMI
Reuters
11 hours ago
????
An employee works inside an undergarment factory in Kolkata
.
View photo
An employee works inside an undergarment factory in Kolkata, India, February 29, 2016. REUTERS/Rupak De Chowdhuri/Files
BENGALURU (Reuters) - Indian manufacturing activity expanded for the third straight month in March and at the fastest pace since July, driven by stronger demand which allowed companies to raise prices, a business survey showed.
Related Stories
Japan March manufacturing activity contracts most in over three years - PMI Reuters
China factories scent hint of spring, Europe still chilly, U.S. improves Reuters
Sensex edges higher on global cues, RBI policy awaited Reuters
Japan March manufacturing activity contracts as export orders tumble - flash PMI Reuters
China official manufacturing activity unexpectedly expands in March Reuters
That could sway the Reserve Bank of India from cutting interest rates as expected on April 5.
The Nikkei/Markit Manufacturing Purchasing Managers' Index rose to an eight-month high of 52.4 in March from February's 51.1, its third straight month above the 50 mark that separates growth from contraction.
The findings "provide welcome reassurance that the sector has moved farther away from the flood-related contraction seen in December," said Pollyanna De Lima, an economist at Markit.
Severe rainfall and flooding caused widespread destruction in late November and early December, which constrained output to its lowest since early 2009.
The latest survey showed the new orders sub-index, a proxy for domestic demand, also rose to an eight-month high of 53.9 in March from 52.3, encouraging firms to increase output. Foreign demand also rose though at a slightly more moderate pace.
Stronger demand allowed firms to raise prices of their goods at the fastest pace in 16 months to make up for rising input costs, a trend likely to get some notice at the central bank.
Retail inflation is still running above the RBI's 5 percent target set for March 2017 which could impact its easing cycle.
"Inflationary pressures in manufacturing are on the upside, with cost burdens rising," said De Lima.
"This build-up in inflationary pressures may lead the Reserve Bank of India to hold off from cutting rates, especially as solid growth was seen."
(Reporting by Anu Bararia; Editing by Kim Coghill)
4:59 am XOMA halts gevokizumab related development; prelim data did not show intended results; initiates asset sales process (XOMA) :
Co provided an update for its Gevokizumab
Given XOMA's focus on endocrinology, the Company has decided to stop all gevokizumab related development activities and is initiating a formal sales process for the asset. As a result, the Company is closing the Phase 3 program in patients suffering from pyoderma gangrenosum.
A preliminary review of the data from the ~25 patients enrolled in the trial to date did not show a clear signal of activity in this indication.
XOMA has been approached by several companies interested in gevokizumab and data from all gevokizumab studies will be available to potential buyers.
Nabbbss Member Level Tuesday, 01/26/16 02:00:26 PM
Re: None
Post # of 62986
Revised--Updated JCDS DD…VERIFIED…as-of 01/26/2016…below...
In 2009, CEO Cary Allen filed the requisite SEC Form to enable the then-
"Current" JCDS to enter into a "Cone of Silence" (my term). That was
an SEC Form 15: Notice of Suspension of Duty to File Reports Under
Sections 13 and 15(d) of the Securities Exchange Act of 1934.
To qualify for such a "Cone of Silence," a Corporation MUST BE (at time
of Filing) "CURRENT." And JCDS was. Here’s the Link to that Filing:
http://ih.advfn.com/p.php?pid=nmona&article=35754000
JCDS is NOW emerging in 2016 with astonishing, highly exciting NEWS
and initiatives!$ …Marketing, Sales, and Promotional activities and events
are re-doubled and greatly ramped-up to include full-sized booths at Industry
Conventions and Trade Shows…vital, regular Corporate Blog entries…and
beefed-up Online presence through Client- and Industry-targeted Advertising.
Here’s just one example:
the April 01, 2015 Blog entry on http://www.oilgaspaymanager.com/blog/
_________________________
CEO Cary Allen has been releasing more frequent PRs/News Announcements
of a highly-positive and tantalizing nature -- and Shareholders are now Updated
and JOLTED into Investing while eagerly awaiting further News!
Please read the PRs/News Releases dated:
--- January 26, 2015… http://ih.advfn.com/p.php?pid=nmona&article=65235579 …and
--- June 30, 2014.… http://ih.advfn.com/p.php?pid=nmona&article=62749540
Several Shareholders/Posters have spoken with Mr. Allen repeatedly,
on a total of 20+ occasions (some with Administrative Manager and
IR Judy Smith as well). They both have been highly accessible, candid (within
the expected boundaries and limitations), congenial, bright, and knowledgeable.
In their conversations, Shareholders/Posters have gleaned POSITIVE DD and
consistently-favorable facts, strengths, and Fundamentals about JCDS.
_________________________
First, be sure to check-out and review the JCDS Website here: http://www.jcdata.com
Be sure to Click the drop-down “Products” menu / Oil & Gas which, in turn will take
you to: http://www.oilgaspaymanager.com
AND be sure to visit and read ALL the current JCDS Blog Entries at:
http://www.oilgaspaymanager.com/blog/
** On July 09, 2014, JCDS/Cary Allen’s newly-created Company, JC Data Escrow Co., Inc.,
Filed with the Texas Franchise (Tax) Board, where that new Company’s Filing Status is listed
as ACTIVE.
Its File Number is 0802023544.
The Registered Agent on File for this new Company is Cary Allen. The Address is 1800
Norwood Drive, Ste. 100, Hurst, Texas 76054-3000 – as is the Company’s Corporate Office.
The January 26, 2015 News Release discusses and describes this and other JCDS activities:
http://finance.yahoo.com/news/jc-data-solutions-witnesses-increase-190810130.html
In the Jan. 26, 2015 Release above, Cary Allen stated (regarding JC Data Escrow),
"In our ongoing effort of delivering the best security for these transactions, JCDS has
formed a new Company in June 2014, JC Data Escrow Co., to act as Fiduciary between
JC Data Solutions and their Payment Manager™ Clients."
ALSO, JCDS is Partnered 50%--50% with :
1) Claims Expeditors, LLC, Incorporated on 11/29/2012, whose Appeal Manager™ Product
(unique to the Healthcare Market) is designed to collect on denied or partially-paid Claims. Claims
Expeditors, LLC. is listed with the Texas Secretary of State (etc.); its Eligibility and Active Status,
and associated information, has recently been Refreshed as-of April 14, 2015 (URL below).
http://www.corporationwiki.com/Texas/Grapevine/claims-expeditors-llc/108756596.aspx
Also, a sample Letter-of-Intent for Appeal Manager™ is seen at:
http://www.medicalclaimsappeal.com/letter/
2) Aeris Solutions, LLC, Incorporated on 12/07/2012, whose Payment Manager™
Product is completed, thoroughly tested, and being Marketed/Sold/Installed. Aeris
Solutions, LLC. Is listed with the Texas Secretary of State (etc.); its Eligibility and Active Status,
and associated information, has recently been Refreshed as-of April 14, 2015 (URL below).
http://www.corporationwiki.com/Texas/Grapevine/aeris-solutions-llc/108748860.aspx
Another Aeris Solutions URL: http://www.bizapedia.com/tx/AERIS-SOLUTIONS-LLC.html
This product, a variation of the existing Payment Manager™ system, is designed to
support State and Federal Land-Lease Bids for the Oil and Gas Industry. It works hand-in-glove
with http://www.oilgaspaymanager.com
Promotion, Marketing, Sales, and Installation of the above Software Platforms/Services
already is underway, and Revenues are being generated.
JCDS also has recently added Electronic Healthcare Medical Records (Light) and
EMR (Light) solutions-and-services designed for any healthcare facility - Hospitals,
Clinics, and Ambulatory Service Centers. Low-cost HIPAA compliant solutions that
can be custom-installed and can perform/provide any one (or all) of the following:
WebDocs™, Form Generator, Requisition Tracker (Workflow), EOB Tracker, Medical
Schedule Generator, Accounts Payable Processor, and Electronic Data Interchange (EDI)
Processor for exchange of EDI transactions with payers or providers. This includes
retail drug…dental claims…professional and instructional claims…payment and
remittance advice…health claim status…plan enrollment…plan premium payments…
and referral certification. WOW! Here’s the Link – see for yourself! –
http://jcdata.com/products/healthcare/
AND THERE’S MORE!
ERISA Appeals Expeditors’ “Appeal Manager™ Program works with hospital Billing
staff and outsourced Billing companies to retrieve the money Legally owed to
hospitals and their patients…and it’s all done with 100% HIPPA Compliance.
FURTHER, There is a 25% Claim Recovery Charge per claim. Hospitals can
expect to receive 75% payment on submitted claims. So, for every $100,000.00,
a Hospital/Physician/Clinic can expect to receive $75,000.00. JCDS and its
50%-Owned Partner/Sub EACH receive $12,500.00 (…x 2 = $25,000.00).
AND, as JCDS Shareholder/Poster kzivann writes: "Looking ahead...
This 50%-Owned new Sub -- just started signing Clients (so probably little
if any income right now)... If successful and JCDS only signs up 1,000 Clinics
(there are several hundred-thousand at least around the Country), each
Clinic could Appeal in a year $100k. JCDS would get 12.5% or $12,500.00
per Clinic -- TIMES-1,000 Clinics! That is $25,000.00, divided 50-50 with
the 50%-Owned Partner/Sub, = $12,500.00 to JCDS (minus the usual
business costs), leaving JCDS with a HIGH Net Profit Margin. If this is
successful, we can see far more than 1,000 Clinics signing-up for this service."
So, what DO we know about JCDS?
Here below are the facts and strengths concerning JCDS:
--- The existing Share Structure:
--------- Authorized Shares: 500,000,000 as of March 10, 2015.
--------- Shares Outstanding: 457, 789,307 as of March 10, 2015.
--------- Float: 208,301,000 as of March 10, 2015.
--------- ZERO DILUTION in YEARS -- since 2008!
--- Transfer Agent:
Corporate Stock Transfer,
3200 Cherry Creek Drive South,
Suite 430,
Denver, CO 80209
Telephone: 303-282-4800
Fax: 303-282-5800
http://www.corporatestock.com/
--- Essential Company information:
JC Data Solutions, Inc.
1800 Norwood Drive,
Suite 100
Hurst, Texas 76054-3000
Telephone: 682-429-0523
Fax: 866-281-8533
CEO: CARY ALLEN
callen@jcdata.com
info@jcdata.com
Mr. Allen graduated from the University of Wisconsin-Oshkosh in 1979 with a
Bachelor of Science in Business and Military Science. He spent the next seven years
working for a financial institution (CPA). During that time he observed what software
solutions were beginning to provide for customers and recognized the potential of more.
He consequently moved into software development. He started a business in Brookfield,
WI, providing contract services for accounting and software development but was
called-up by the Army Reserves to serve in Desert Shield and Desert Storm in late 1990.
In 1991, Mr. Allen had the opportunity to move to Dallas Texas and work for a software
company contracted by GTE. After five years of serving as VP of Sales, he accepted a
position with a large Midwest forms company as their Director of Electronic Forms Systems.
Recognizing the great potential for software use in the Data management arena, he joined
JC Data Solutions. With JCDS, Mr. Allen sold direct turnkey data systems for Financial,
Medical, Government, Manufacturing, and Transportation markets. As CEO, he has
developed an infrastructure that provides a wide range of data management services to
JCDS Corporate Clients in the Oil&Gas Industry, Healthcare Claims, and Insurance.
One CAN ask for CEO Cary Allen himself; he HAS been contacted many times!
Please be easy-going, polite, and business-like (not frantic or accusatory).
--- Investor Relations Contact at JC Data Solutions:
Judy Smith
jsmith@jcdata.com
Ms. Smith joined JC Data Solutions in December 2006 as Director of Marketing.
Her previous 25 years of experience in the Helicopter Industry included such positions
as Director of Sales and Marketing, Director of Marketing Services and Contracts,
and Delivery Manager. In this highly technical and varied customer industry, she
not only dealt with the marketing, promotions, and sales of products and services,
but also the configuration management and pricing, program management, and
customer liaison for contracting and delivery of specific-mission helicopters to
include US Government Agencies, State, County, and City Law Enforcement Agencies,
Air Ambulance, Corporate, and Utility operators throughout the U.S. and Canada.
-------------------------------------------------------------
Corporate Websites:
Corporate Headquarters: http://www.jcdata.com
Website for JCDS's Payment Manager™: http://oilgaspaymanager.com
Website for JCDS’s Payment Manager™ Blog: http://oilgaspaymanager.com/blog/
Website for JCDS's Claims Expeditor™: http://www.claimsexpeditors.com/
Sales outreach for JCDS's Appeals Manager sub (scroll-down)
http://www.chsg-llc.com/clients/
Website for JCDS's FaceBook Account:
https://www.facebook.com/pages/Oil-gas-pay-manager/1396313507265775
That's JCDS CEO Cary Allen standing on the left in the photo Posted
November 6, 2013 (ya have to scroll-down), with the CEO of Avatar Systems
(with whom JCDS formerly Partnered). This photo was taken at the 2012
Avatar Round-Up.
https://www.twitter.com/Oilgaspay
https://www.linkedin.com/company/oil-and-gas-pay-management
http://www.bizapedia.com/addresses/1800-NORWOOD-DR-STE-100-HURST-TX-76054.html
http://investorshub.advfn.com/boards/manage_msg.asp?message_id=107015105&PrevStart=60211
--------------------------------------------------------------------------
JCDS Clients, Partners, and Associates:
--- http://www.legacylp.com/home/ ...Legacy Holdings, LP (LGCY)
--- http:// http://www.usenergydevcorp.com/ …U.S. Energy Development Corp.
--- http://grandenergy.com/
--- http://www.jcds-patriotadmin.com/
--- http://panteraenergy.com/index.php?page=client-vendor
--- http://www.crownexploration.com/
--- http://www.breitlingoilandgas.com/ --
……..The Link to JCDS’s Breitling Login Page: http://www.jcds-breitlingoilandgasadmin.com/login.aspx
Friends! This needs further investigation; please take note: Effective immediately,
Crude Energy LLC. will take over administration and daily management of the
Investments of all of Breitling's former Clients. Breitling's former Clients wishing
to contact Crude may do so at the following address:
Crude Energy, LLC
1910 Pacific Avenue, 7th Floor
Dallas, Texas 75201
Phone (214) 716-2200
www.crude.com
www.cruderoyalties.com
SOURCE Breitling Oil and Gas Corporation, December 09, 2013
--- http://preservationofwealth.net/ ...Preservation of Wealth (POW)
--- http://denaliassociates.com/
PROOF that JCDS provides Services to its Clients, Partners, and Associates:
Just Click on the Links that follow, and enjoy what you see…GO JCDS!$
http://www.jcds-crudeadmin.com ... -- http://www.miesendocs.com …
http://www.legacydirectdeposit.com
https://www.legacylpdocs.com/Account/LogOn?ReturnUrl=%2f
http://www.breitlingoilandgasdocs.com … -- http://www.grandenergydocs.com
http://www.jcds-grandenergyadmin.com … -- http://www.jcds-breitlingoilandgasadmin.com
http://www.claimsexpeditors.com ... -- http://www.usedclogin.com
http://www.panteradocs.com … -- http://www.jcds-panteraadmin.com
http://www.panteradirectdeposit.com
http://www.usedc-upload.com … -- http://www.jcds-patriotadmin.com/
The Company's Contracting-with, and Servicing-of, the above businesses
(and additional client-businesses shown in the Links below) HAS BEEN VERIFIED
by considerable DD and Website scrutiny as well as through personal
telephone communication with directly-involved Parties.
--- Gross Annual Revenues are strongly believed to be several Million Dollars.
--- There are at least 20+ Clients of JCDS.
--- We already know there are at least 5 employees and Contractors.
--- NEEDED: Financials -- Unaudited at first, then followed by Audited and
prepared to GAAP standards, with Attorney Letter.
--- Along with the above, an UPLISTING would help.
--- THIS Post by iHubber cjstocksup (from the JCDS Board) gives Links and
access to additional extensive and thoroughly detailed Due Diligence:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=101500360
--- The reasonable conclusion and belief is that JCDS SHOULD be --
and COULD be -- priced at $0.05 - $0.25 per Share, following release of
News/PRs and resumption of Financial/SEC Reporting accompanied by
Attorney Letter and Letter of Disclosure, to facilitate attainment of
"Current" status. (Share-Price could be HIGHER if Buyout/Merger!)
This should come, with TIME. Yes, that annoying, frustrating concept -- PATIENCE!
The reward in this instance is SO VAST as to make the wait HIGHLY worthwhile!
_______________________________________________________________________
ALSO:
For MORE excellent DD and Historical perspective from JCDS
Poster/Shareholder reaper247, please CLICK the three Links below.
They go to three additional Posts that have further exciting JCDS information:
By reaper247:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=86698107
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=85986146
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=82717582
________________________________________________________________________
Just being real here, Friends. ------ JCDS is FOR REAL!$
All the Best to Everyone and JCDS!$ smile
irondog Member Level Sunday, 10/26/14 09:29:42 AM
Re: None
Post # of 62887
JCDS websites so far...
Corporate Website: http://www.jcdata.com
Website for JCDS's Payment Manager™: http://oilgaspaymanager.com
Website for JCDS's 50% owned sub:
http://www.claimsexpeditors.com
http://appeal-manager.com
http://erisa-benefits.com
https://www.facebook.com/pages/Oil-gas-pay-manager/1396313507265775
Clients, Partners and Associates:(updated version)
http://www.legacylp.com/home
http://grandenergy.com
http://www.crownexploration.com
http://www.crude.com
http://panteraenergy.com
http://www.usenergydevcorp.com
http://www.breitlingenergy.com
http://www.miesencorp.com
http://preservationofwealth.net
http://www.avatarsystems.net
http://erisaappealsexpeditors.com/home
http://www.chsg-llc.com/about-us
http://denaliassociates.com
Tax-Free Profit on Small-Business Stock
image: http://www.kiplinger.com/slideshow/taxes/T054-S001-valuable-tax-breaks-brought-back-to-life/images/lab.jpg
slideshow image
Thinkstock
To encourage investors to take the risk of investing in start-up businesses, the law offers a special break on the profit from the stock of qualifying small businesses. If an investor holds the stock from the time it’s issued for at least five years, a certain percentage of the profit—up to a maximum of $10 million—can be tax-free. In 2014, 100% of qualifying profit was tax-free; for 2015, that was cut in half to 50%. Now the new law restores the 100% level for stock purchased in 2015 and future
Read more at http://www.kiplinger.com/slideshow/taxes/T054-S001-valuable-tax-breaks-brought-back-to-life/index.html#77DOPa00yDhzuuib.99
thanks i dont really post any more. and trade more big boards than anything now.. pennies are mostly scams and have seen rarely any that work out long term.... reason for the jargon was because some people just like to blame people rather than take responsibility for there own investments....
good luck and happy trading
subscribed to your picks anyways
man you got so much jargen writ on there i got tired of trying to get through as to what you were talking about. well i don't own anything here and it has a ton of stock so ......you can have it, i'll check in here in the new year, see what has happined
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Why marijuana stocks might go up in smoke
Consumer Reports
6 hours ago
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?
?
?
If you’re like many investors, you always have an eye out for the next big growth market. If you can get in early, you might be able to profit handsomely—maybe even make a killing. For many, the market for marijuana stocks, much like the market for tech stocks in the early 1990s, seems to offer such an opportunity.
The main reason is that the marijuana market is growing rapidly. Over the past year, retail sales in Colorado alone generated about $700 million, almost half of which came from sales of medical marijuana. Cannabis is now legal in four states, with perhaps five more planning to join them in 2016. Twenty states allow the use of medical marijuana. It seems clear that the trend will continue and that marijuana will become a multibillion-dollar industry.
Dozens of cannabis companies have sprung up as a result of a wave of legalization and decriminalization. Investors can now bet on them through so-called marijuana stocks—and do they ever. When laws legalizing marijuana in Colorado and Washington state went into effect, shares in many of those companies soared.
But it wasn’t long before they came crashing down. The harsh reality is that if you buy shares in pot stocks today, your investment stands a good chance of fizzling out.
Part of the reason has to do with how marijuana stocks, also known as penny stocks, trade. Medical Marijuana (MJNA), Cannabis Science (CBIS), and GrowLife (PHOT), to name a few of the largest, trade on the over-the-counter market. The companies that register them are subject to almost no listing requirements and are barely regulated by the Securities and Exchange Commission or the Financial Industry Regulatory Authority (FINRA). (A number of legitimate foreign firms are on the OTC market for reasons of convenience, but that’s another story.) Those companies don’t have to file reports with the SEC, so reliable information about their income statements and balance sheets can be difficult for investors to come by.
Think you've spotted the next big trend? Read "An alternative approach to investing in stocks."
That makes the OTC market a kind of Wild West of capitalism and a great place for con artists to run “pump and dump” schemes, luring investors into stocks with promises that the market for marijuana will soon be worth billions of dollars. As investors pile in to buy the shares, the stock prices rise. Then the con artists sell their shares for a profit while small investors watch their holdings disappear as the stock plummets.
Such behavior led the SEC to put temporary trading halts on five of the better-known marijuana stocks last year: Fusion Pharm (FSPM), Cannabusiness Group (CBGI), Advanced Cannabis Solutions (CANN), Petrotech Oil and Gas (PTOG), and GrowLife. The reasons included doubts about the accuracy of financial information, potentially illegal sales of securities, and market manipulation.
Another problem: Some of the people who run the companies have less than stellar backgrounds. Medical Marijuana in San Diego, for example, was founded by Bruce Perlowin, who spent nine years—from 1983 to 1991—in prison for smuggling marijuana into San Francisco from Colombia. And a board member at the company was arrested for possession in Alabama in 2013. Perlowin is now CEO of Hemp, based in Las Vegas, which would like to become a leader in the industrial hemp industry.
Another pot executive, Michael Llamas, the former president of Medical Marijuana, was indicted by a federal grand jury in 2013 for his involvement in mortgage fraud that caused $10 million in losses. He has pleaded not guilty.
Given that many marijuana companies have dubious financial records and questionable management, and that they’re influenced by con artists, it’s surprising that any investor would be interested. Yet there continues to be considerable interest in the subject on Internet forums and a bevy of activity. Some stocks, such as Cannabis Science, trade more than a million shares per day. Even GrowLife, which went from 50 cents per share to 3 cents before the SEC temporarily halted trading, has an average daily trading volume of 1.6 million shares.
But investors shouldn’t be fooled into thinking that they can handle the risk just because the penny stocks trade for, well, pennies. They also shouldn’t be swayed by the incredible gains the companies have had because their losses were equally incredible. Wait to see whether marijuana is legalized at the federal level. If that happens, there will be legitimate publicly traded companies in which to invest.
More from Consumer Reports:
Best cars for making it to 200,000 miles
6 costly estate planning minefields and how to avoid them
Best places to buy large and small appliances
Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.
http://finance.yahoo.com/news/why-marijuana-stocks-might-smoke-100000969.html
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SEC's stock market reform club locks out retail brokers
Reuters
2 hours ago
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To match Special Report SEC/INVESTIGATIONS
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The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst
By John McCrank
NEW YORK (Reuters) - The U.S. Securities and Exchange Commission is convening a group of financial industry veterans for the first time next month to consider stock market reforms, but one group will be conspicuously absent: retail brokerages.
The SEC's 17-member Market Structure Advisory Committee includes representatives of fund companies, an exchange, off-exchange trading venues, dealers, and academia, among others. The group, which meets four times a year, will review old rules, and advise the SEC on a range of new regulations designed to make sure the market is as stable and fair as possible.
Still, given that the SEC has said its main priority is to protect retail investors, the omission of retail brokers raises questions, because without their point of view the panel may recommend changes that favor institutional investors, analysts said. Retail investors place around 16 percent of all U.S. stock orders.
"There's a missing gap of protecting retail order flow," said Larry Tabb, chief executive of capital markets advisory firm TABB Group.
That gap was also noticed by committee member Joseph Ratterman, president and chairman of No. 2 U.S. exchange operator BATS Global Markets. He said he mentioned his concern to SEC Chair Mary Jo White shortly after the committee was announced and that she asked him, along with committee member Jamil Nazarali, from market making firm Citadel Securities, to formally represent retail interests.
Citadel and BATS do not directly interact with retail investors, and their interests sometimes diverge from retail brokers'.
The SEC declined to comment, and hasn't said how it chose the committee members.
The major retail brokerages, including Charles Schwab Corp (SCHW.N), TD Ameritrade (AMTD.N), E*Trade (ETFC.O), Fidelity and Scottrade, also declined to comment on the record.
Once the regulator made the names of the panel public, some retail brokerages began lobbying for a seat at the table, but were told that the process would not be restarted, according to people familiar with the matter who did not have permission to speak publicly.
"We were kind of shocked," said a senior executive at one retail brokerage. "I mean, if you're going to talk about market structure and how it impacts investors, you might want to have someone who deals with retail investors."
The SEC told the retail brokers that they will have opportunities to post public comment letters on the issues discussed by the committee and that the firms would also be included in separate roundtable discussions on market structure issues, the executive said.
In the meantime, the firms will use the retail advisory committee formed by BATS and Citadel will serve as their proxy.
"If you're not going to be part of the club, you've got to have somebody that at least is going to express your point of view at the club meetings," the executive said.
FILLING IN THE GAP
Ratterman and Nazarali said they plan to meet with senior executives from Schwab, TD Ameritrade, E*Trade, Fidelity and Scottrade before and after each of the committee's meetings to solicit their views, which they will pass on to the broader group.
"It's one of many voices, but it's always going to be a significant voice," Ratterman said of the retail point of view.
In addition, Citadel is having discussions with its other clients to ensure the firm can properly represent the industry on market structure issues, Nazarali said.
"We believe it is important to create a level playing field for all investors," he said. "This retail advisory committee enables us to continue advocating on behalf of firms of all sizes."
One recent example of a proposed SEC rule that retail brokers say will harm investors is the so-called "tick-size pilot" which would apply to shares of a large set of smaller companies. Once in effect, brokers will have to sell each share of these companies at prices at least a nickel higher than where they buy them, instead of the penny difference currently required.
That wider gap gives brokers higher profits, which in theory will make it more worth their while to take the other sides of trades for investors, making it easier to complete transactions in these thinly traded stocks.
But those benefits might mean more to big investors, who might look to sell large numbers of shares at once, than to small investors. Individual investors typically make smaller trades, and being forced to buy at prices that are a nickel-a-share higher than where they can sell could amount to their paying a sort of tax to the broker.
Schwab said in a letter to the SEC that the program would ultimately result in a "wealth transfer" from retail investors to stock exchanges and middlemen. Fidelity also said in a letter to the regulator that it does not support the plan.
The potential cost of the program to all investors could be up to $455 million dollars annually, TD Ameritrade said in a letter to the SEC in December. The No. 1 retail broker by client trading volume estimated the potential cost to its customers between $11 million and $18.4 million.
(Reporting by John McCrank. Editing by Dan Wilchins and John Pickering.)
Stock split could cost Google over $500 million
Google stock split aimed at keeping founders in control could cost co. more than $500 million
Associated Press By Michael Liedtke, AP Technology Writer
3 hours ago
Stock split could cost Google over $500 million
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FILE - In this June 5, 2014 file photo, a man walks past a Google sign at the company's headquarters in Mountain View, Calif. Google may have to pay more than half a billion dollars for an unorthodox stock split aimed at ensuring co-founders Larry Page and Sergey Brin retain control over the Internet’s most profitable company. (AP Photo/Marcio Jose Sanchez, File)
SAN FRANCISCO (AP) -- An unorthodox stock split designed to ensure Google CEO Larry Page and fellow co-founder Sergey Brin retain control of the Internet's most profitable company could cost Google more than half a billion dollars.
Page, 42, and Brin, 41, have maintained control over Google since they started the company in a rented Silicon Valley garage in 1998. Their ideas and leadership have spawned one of the world's best known and most powerful companies with a market value of $375 billion and a payroll of about 54,000 employees.
Yet many investors have become frustrated with Page's unwavering belief that Google should be spending billions on far-flung projects ranging from driverless cars to diabetes-controlling contact lenses that may take years to pay off and have little to do with the company's main business of search and digital advertising. The big spending is one reason Google's stock price is about 2 percent below where it stood at the end of 2013, while the Standard & Poor's 500 index has climbed 11 percent.
To maintain the power to drive Google's direction, Page and Brin initially accumulated virtually all of the company's class "B'' shares, which have 10 votes for each "A'' share. The duo, though, worried that control would erode as Google issued more "A'' shares to pay for acquisitions and reward other workers. A year ago Thursday, Google split its stock to create a new category of "C'' stock with no voting power that would allow more Google shares to be issued without undercutting Page and Brin.
Class "A'' shareholders were outraged, skewering the maneuver as a textbook example of shoddy corporate governance. Google argued there wouldn't be much difference between the price of "C'' and "A'' shares because Page and Brin held majority control anyway with the "B'' shares. To settle a class-action lawsuit challenging the split, Google agreed to compensate "C'' shareholders if the average price of "C'' stock fell more than 1 percent below "A'' shares through the first year of trading.
Google's theory proved wrong, said BGC Financial Partners Colin Gillis. The difference turned out to be between 1 percent and 2 percent, though the final gap won't be announced for up to 30 days as Google works with outside experts to determine the figures under a complex formula.
"This shows the market does place a value on owning a voting stock," he said.
Google disclosed in a recent regulatory filing that it would have owed about $593 million to class C stockholders had the calculations been done on Dec. 31. Based on that estimate, the class C stockholders would receive roughly $1.74 per share in cash or additional stock. Calculating the exact amount that Google Inc. owes will start after the stock market closes Thursday.
The Mountain View, California, company has until early July to pay the money. It's something that Google can easily afford, given the company holds $64 billion in cash. And the damage could have been a lot worse: Google would have had to pay $7.5 billion, or about $22 per share, had the first-year spread between "A'' and "C'' shares was 5 percent or more.
Class C shareholders should ask themselves if the money they are getting is enough to compensate for relinquishing their voting rights and ceding control to Page and Brin, said Charles Elson, director of the University of Delaware's Weinberg center for corporate governance.
Shareholders "are getting this cash for giving up their say in effective management," Elson said. "This could be a case of 'penny wise, pound foolish.'"
Google declined to comment.
http://finance.yahoo.com/news/stock-split-could-cost-google-103743917.html
JC Data Solutions Witnesses an Increase in Transactions for Their Payment Manager Services
DALLAS, TX - (NewMediaWire) - January 26, 2015 - JC Data Solutions' (OTC PINK: JCDS), a provider of innovative and cost-effective solutions for digital data processing and management focusing on the Oil & Gas, Legal and Healthcare industries, recognizes results from sales concentration on their Payment Manager services.
With Payment Manager JCDS has already seen an increase of 59% in the last six months in payment transactions over the previous six months.
Payment Manager (PM), designed by JCDS especially for the Oil & Gas Industry, is the complete service that provides for the seamless distribution, delivery and archival of payments and statements to interest/royalty owners and vendors through ACH/EFT, printed and mailed checks and posted documents to the web.
The distribution and online document access has increased by 67% over the previous six months confirming the JCDS Payment Manager clients have realized the great service this online access provides to their interest/royalty owners and vendors.
In their ongoing effort of delivering the best security for these transactions, JCDS formed a new company in June 2014, JC Data Escrow Co, to act as fiduciary between JC Data Solutions and their Payment Manager clients.
And the move into a new suite of offices back in July has given JCDS the room for personnel and equipment to manage the increased PM activity.
"The Payment Manager sales force, added back in June 2014, is producing positive results," says Cary Allen, CEO of JCDS, "and plans are in place, such as increased attendance at industry conferences, to continue the push to generate sales on the Payment Manager services. We are also actively working on removing the Caveat Emptor from OTC Pink, so we can move forward for our shareholders."
Forward-Looking Statements
This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as: the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels.
All information in this release is as of the date of this release.
CONTACT INFORMATION
For Information go to our web site at www.jcdata.com / www.oilgaspaymanager.com or call:
Cary Allen
CEO
JC Data Solutions, Inc.
682-429-0523
Email Contact: info@jcdata.com
Source: JC Data Solutions, Inc.
Australian scientists announce solar energy breakthrough
AFP
18 hours ago
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In Australia, researchers were able to convert more than 40 percent of sunlight hitting solar panels into electricity, a world first
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In Australia, researchers were able to convert more than 40 percent of sunlight hitting solar panels …
Australian scientists said Monday they had made a breakthrough in increasing the efficiency of solar panels, which they hope could eventually lead to cheaper sources of renewable energy.
In what the University of New South Wales described as a world first, the researchers were able to convert more than 40 percent of sunlight hitting the panels into electricity.
"This is the highest efficiency ever reported for sunlight conversion into electricity," UNSW Professor Martin Green said in a statement.
"We used commercial solar cells, but in a new way, so these efficiency improvements are readily accessible to the solar industry."
While traditional methods use one solar cell, which limits the conversion of sunlight to electricity to about 33 percent, the newer technology splits the sunlight into four different cells, which boosts the conversion levels, Green told AFP.
The record efficiency level was achieved in tests in Sydney and replicated at the United States government's National Renewable Energy Laboratory, the university said.
The prototype technology is set to be harnessed by Australian company RayGen Resources for solar power towers, which use sun-tracking mirrors to focus sunlight on a tall building.
Green is hopeful the technology can also eventually be used for solar panels mounted on people's roofs, which he said currently had a 15 to 18 percent efficiency rate.
"The panels that you have on the roof of your home, at the moment they just have a single cell but eventually they'll have several different cells... and they'll be able to improve their efficiency to this kind of level," he told AFP.
Green said strides in technology made in the solar industry such as the higher conversion levels were helping to drive down the cost of renewable energy.
He was confident that in a decade solar-generated electricity would be cheaper than that produced by coal.
Colorado pot credit union could open next year
Colorado charters first credit union for marijuana industry, but fed approvals remain
Associated Press
November 21, 2014 1:21 PM
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DENVER (AP) -- Colorado has granted a charter for the first financial institution to serve the state's cash-only marijuana industry. But action by the National Credit Union Administration and the Federal Reserve is needed, and pot's still illegal under federal law.
The charter is a step to resolving a problem for the industry, which generally is unable to obtain traditional banking services. Dispensaries frequently transport cash — a crime risk — and use cash to pay employees, expenses and taxes.
The Division of Financial Services issued the charter Wednesday to The Fourth Corner Credit Union. The Denver Post reports (http://dpo.st/11CYeJF) it could open in January.
Fourth Corner must get insurance from the National Credit Union Administration, but can operate until the administration decides. It also must get a master account from the Federal Reserve.
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Information from: The Denver Post, http://www.denverpost.com
How 6 types of retirement income are taxed
Kiplinger
By Sandra Block 3 hours ago
Money
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Thinkstock
One of the biggest mistakes retirees make when calculating their living expenses is forgetting how big a bite state and federal taxes can take out of savings. And how you tap your accounts can make a big difference in what you ultimately pay to Uncle Sam.
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Conventional wisdom has long held that you should tap taxable accounts first, followed by tax-deferred retirement accounts and then your Roth. This strategy makes sense for many retirees, but be careful if you have a lot of money in a traditional IRA or 401(k). When you turn 70 1/2, you'll have to take required minimum distributions (RMDs) from the accounts. If the accounts grow too large, mandatory withdrawals could push you into a higher tax bracket. To avoid this problem, you may want to take withdrawals from tax-deferred accounts earlier.
Here's how retirement assets are taxed.
Tax-deferred accounts. Prepare to feel pain. Withdrawals from traditional IRAs and your 401(k) will be taxed as ordinary income, which means at your top tax bracket.
See Also: The 10 Least Tax-Friendly States for Retirees
Taxable accounts. Profits from the sale of investments, such as stocks, bonds, mutual funds and real estate, are taxed at capital-gains rates, which vary depending on how long you've owned the investments. Long-term capital-gains rates, which apply to assets you have held longer than a year, can be quite favorable: If you're in the 10% or 15% tax bracket, you'll pay 0% on those gains. Most other taxpayers pay 15% on long-term gains. Short-term capital gains are taxed at your ordinary income tax rate.
Interest on savings accounts and CDs and dividends paid by your money market mutual funds is taxed at your ordinary income rate. Interest from municipal bonds is tax-free at the federal level.
More from Kiplinger: 10 Great Dividend Stocks to Own in Retirement
Roth IRAs. Give yourself a high five if your retirement portfolio includes one of these accounts. As long as the Roth has been open for at least five years and you're 59 1/2 or older, all withdrawals are tax-free. In addition, you don't have to take RMDs from your Roth when you turn 70 1/2.
Social Security. Many retirees are surprised--and dismayed--to discover that a portion of their Social Security benefits could be taxable. Whether or not you're taxed depends on what's known as your provisional income: your adjusted gross income plus any tax-free interest plus 50% of your benefits. If provisional income is between $25,000 and $34,000 if you're single, or between $32,000 and $44,000 if you're married, up to 50% of your benefits is taxable. If it exceeds $34,000 if you're single or $44,000 if you're married, up to 85% of your benefits is taxable.
See Also: 10 Things You Must Know About Social Security
Pensions. Payments from private and government pensions are usually taxable at your ordinary income rate, assuming you made no after-tax contributions to the plan.
Annuities. If you purchased an annuity that provides income in retirement, the portion of the payment that represents your principal is tax-free; the rest is taxable. The insurance company that sold you the annuity is required to tell you what is taxable. Different rules apply if you bought the annuity with pretax funds (such as from a traditional IRA). In that case, 100% of your payment will be taxed as ordinary income.
Yahoo Finance is answering your money questions on Tumblr! Got a question about your credit score, your student loans, your retirement portfolio, your health insurance, or anything else finance-related? Drop us a line: YFmoneymailbag@yahoo.com.
NASA's newest human spacecraft on the move
Associated Press
By MARCIA DUNN 2 hours ago
NASA's Orion spacecraft, preparing for it's first flight, departs the Neil Armstrong Operations and Checkout Building on its way to the Payload Hazardous Servicing Facility at the Kennedy Space Center, Thursday, Sept. 11, 2014, in Cape Canaveral, Fla. Orion is scheduled for a test flight in early December. (AP Photo/John Raoux)
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CAPE CANAVERAL, Fla. (AP) — NASA is one step closer to launching its newest spacecraft designed for humans.
Workers at Kennedy Space Center gathered to watch as the Orion capsule emerged from its assembly hangar Thursday morning, less than three months from its first test flight.
The capsule — sealed for protection — slowly made its way to its fueling depot atop a 36-wheel platform. The capsule and its attached service module and adapter ring stretched 40 feet high.
"Isn't this awesome?" said Kennedy's director, Robert Cabana, a former space shuttle commander. "This is our step to the future, the exploration of establishing a presence in the solar system."
Space center employees lined up along the rope barricade to snap pictures of Orion, NASA's lofty follow-on to the now-retired space shuttle program.
During its Dec. 4 test flight, the unmanned capsule will shoot more than 3,600 miles into space and take two big laps around Earth before re-entering the atmosphere at 20,000 mph and parachuting into the Pacific off the San Diego coast. The entire mission will last 4½ hours.
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The second Orion flight won't occur until around 2018 when another unmanned capsule soars atop NASA's new megarocket, still under development, called SLS for Space Launch System.
NASA intends to put astronauts aboard Orion in 2021 for deep space exploration; each capsule can accommodate up to four.
The plan is to use Orion for getting humans to asteroids and Mars — no space station ferry trips for Orion. A handful of private U.S. companies are competing for these short taxi flights; NASA expects in the next week or so to pick one or two candidates for funding.
While Orion may resemble an oversize Apollo capsule on the outside, everything inside and out is modern and top-of-the-line, officials noted Thursday. "I'm as excited as can be," said NASA's Orion production operations manager, Scott Wilson.
For Orion's dry run, the Lockheed Martin Corp.-built capsule will have hunks of aluminum in place of seats for ballast, and simulators instead of actual cockpit displays. A Delta IV rocket will do the heavy lifting.
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NASA's Orion spacecraft, preparing for it's …
NASA's Orion spacecraft, preparing for it's first flight, departs the Neil Armstrong Operati …
When asked by a reporter, Cabana said he wishes Orion's flight pace was quicker.
"But it is what it is," he said. "Given the budget that we have, I think we've got the best program that you could imagine."
Orion has its roots in the post-Columbia shuttle era; it originated a decade ago as a crew exploration vehicle to get astronauts beyond low Earth orbit and managed to survive the cancellation of the Constellation moon project.
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Online:
NASA: http://www.nasa.gov/exploration/systems/mpcv/
Lockheed Martin: http://www.lockheedmartin.com/us/products/orion.html
NY pension fund enters $2 billion investment venture with Goldman Sachs
Reuters
1 hour ago
Traders work on the floor of the New York Stock Exchange near the Goldman Sachs stall
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Traders work on the floor of the New York Stock Exchange near the Goldman Sachs stall July 16, 2010. REUTERS/Brendan McDermid
By Lauren Tara LaCapra
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NEW YORK (Reuters) - A New York state pension fund has given Goldman Sachs Group Inc (GS.N) $2 billion to invest with outside managers, Goldman and the fund said in a statement on Wednesday, a first for a fund that has traditionally picked managers itself.
Officials in charge of overseeing the $180.7 billion New York State Common Retirement Fund wanted to invest more in markets outside the U.S. and decided it was best to outsource the task to a company that had the skills and resources to put money to work quickly, staff in the New York comptroller's office said.
In talks with fund officials over the past year, Goldman executives presented an analysis of the fund's allocations based on publicly available data and suggested areas it could improve, such as where to spend the risk budget and whether to be more active or passive in certain portfolios, said the comptroller staffers, who spoke on the condition they not be named.
Those analytics, combined with the size of Goldman's fund selection and due diligence team and a competitive pricing structure led the comptroller's office to partner with the bank.
The partnership is the latest step in Goldman's effort to grow its investment management business, as new regulations and lower trading volume have pressured profits in other businesses the bank has traditionally relied on for growth.
The office of New York State Comptroller Thomas P. DiNapoli is in talks with other potential partners to ink similar deals, staff said.
Under the agreement with Goldman, the bank's Alternative Investments and Manager Selection (AIMS) Group will select managers for $2 billion worth of the pension fund's stock portfolio that focuses on making investments abroad with active managers. The fund is also in talks with Goldman about so-called "sustainable investments," which focus on environmentally friendly or socially responsible companies.
The deal with New York is not the first business Goldman has won with a state pension fund but it is the largest. In 2008, South Carolina Retirement Systems entered a $1.5 billion partnership with the bank's investment management unit and in 2010, the Alaska Permanent Fund awarded it over $500 million.
AIMS, which had $156 billion in assets under supervision at June 30, is an "open architecture" platform, which means none of the investments Goldman selects can be invested in funds that the bank's own portfolio managers oversee.
Goldman and the pension fund declined to comment on fees.
(Reporting by Lauren Tara LaCapra; Editing by Bernard Orr)
Internet slowdown day seeks to bring 'battle for the Net' to the FCC's door
Aaron Task
By Aaron Task 1 hour ago Yahoo Finance
Netflix, Reddit, Upworthy and hundreds of other websites are placing those annoying spinning-wheel icons on their home pages today -- you know, the ones you get when the Web is loading. But don't call your broadband provider or cable company. These sites are joining a online effort called Internet Slowdown Day designed to protest the FCC's plan to allow content provides to pay for faster lanes on the Internet.
Supporters of so-called net neutrality believe all data is created equal and should be uniformly accessible to users who have already paid for Internet access. "At Yahoo, we firmly believe that a free and open Internet is critical to ensure our users have unfettered access to content and tools that enhance their lives," reads a statement from Yahoo! Inc., our corporate parent and my employer.
Organizers of Internet Slowdown Day say the FCC's proposal will give unfair advantage to entrenched players and stifle innovative startups who presumably can't afford to pay for faster lanes. They also claim it will give cable companies too much control over the Web.
"Under the proposed rules, cable giants like AT&T, Comcast, and Verizon would be able to create a two-tiered Internet, with slow lanes (for most of us) and fast lanes (for wealthy corporations that are willing pay fees in exchange for fast service)," reads a statement at Battleforthenet.com, the landing page for Internet Slowdown Day. "Cable companies would have the power to discriminate against online content and applications — they could pick winners and losers, shake sites down for fees, block content for political reasons, and make it easier for Internet users to view cable content. (For instance, Comcast owns NBC, and so has incentives to make it easier to view NBC content than that of other providers.)"
The organizers of Internet Slowdown Day, groups like Free Press, Demand Progress and Fight for the Future, are calling themselves Team Internet and urging individuals and companies to voice their support for net neutrality by "taking a stand for 'Title II reclassification', the only option that lets the FCC stop Team Cable from breaking the key principles of the Internet we love."
Team Internet vs Team Cable
Title II refers to the Communications Act; supporters believe getting Internet access reclassified as a "common carrier" under the Act will preserve net neutrality.
'Team Cable' refers to industry giants AT&T, Comcast, Verizon and Time Warner Cable.
So what do the cable companies say about this? Here's a statement from the official blog of the National Cable & Telecommunications Association, the industry’s primary lobbying group:
It’s unfortunate, but not surprising, that the debate over how to enact reasonable net neutrality protections for consumers has come to this – a PR stunt called Internet Slowdown Day to suggest how ISPs are going to ruin the consumer Internet experience. Of course, this isn’t true. Internet Slowdown Day is sure to make a splash. It’ll drive a lot of attention to Net Neutrality, Title II regulation, and the role of ISPs in America’s broadband future. Before buying into the hype, ask yourself: Does this make sense? Would an industry that has invested over $200 billion into creating one of the largest, fastest, most comprehensive broadband networks on earth, really be trying to “destroy the Internet?”
In the accompanying video, I discuss net neutrality and Internet Slowdown Day with Henry Blodget, who admits to being "mixed" on the issue. Using the various delivery options at the Post Office as an example, he notes "paying for speed is absolutely part of the system on the sending side" so the FCC proposal "makes some sense" because "bits costs money to transport" even if "everyone wants everything for free."
Still, Blodget agrees the proposal is "dangerous" because "it means if you've got a boatload of money you can afford much better service than the startup."
Obviously there's a lot at stake here and this is an issue which generates strong emotions. Somewhat lost in the debate and the focus on Internet Slowdown Day is the next phase of the battle has already begun: On Tuesday, FCC Chairman Tom Wheeler said mobile carriers -- which were exempted in 2010 because mobile was deemed an 'emerging technology' -- should be subject to the same rules and regulations as land-based providers, which only further ups the ante for the forces aligned against the FCC's proposal.
Aaron Task is Editor-in-Chief of Yahoo Finance. You can follow him on Twitter at @aarontask or email him at altask@yahoo.com.
5 Tips to Help Your Income Last for Decades in Retirement
US News
By Tom Halloran 54 minutes ago
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As your retirement date approaches, it is natural to find yourself looking back at all that's happened over the course of your career, from personal and professional accomplishments to lessons learned and challenges overcome.
As you look to the next phase of your life, you may realize that, despite all of those experiences, you have more questions than answers. What will your finances look like post-employment? Will your resources and personal savings last into and through retirement? Often, one spouse lives well into old age. What key decisions do you need to make now to ensure you are prepared to have decades of financial security in retirement?
Here are a few tips to help you make informed decisions today so you can work to avoid retirement pitfalls tomorrow.
1. Identify your needs, wants and wishes. Make a plan to determine when, ideally, you would like to retire and, once you have retired, the type of lifestyle you would like to enjoy. This process will help you to develop a list of financial "needs," "wants" and "wishes" in retirement. Start with your "needs," which will include all day-to-day living expenses, such as housing, utilities, food, transportation and out-of-pocket medical expenses. Your "wants" will be "fun expenses" like travel, vacation and social activities or discretionary items such as cars, recreational vehicles, second homes and other consumer goods. Categorize your "wishes" as gifts you would like to make to friends, family or even charity. By allotting your finances in these three categories, you'll have a better idea of how to budget for retirement.
2. Estimate how long your personal savings may need to last. Thinking about how long your money will last in retirement may not be the most fun part of financial planning, but it is a vital component. It helps you make informed decisions about when to start Social Security, pension payments, survivorship benefits and tapping personal savings. By creating a timeline, you can decide when to start different income streams and how you'll distribute your income across your retirement years. You also need to take into consideration how expenses may change. For instance, your "wants" bucket may shrink later in retirement as you spend more time relaxing at home rather than traveling the globe.
3. Understand your Social Security and Medicare options. Even though there isn't any wrong answer on when and how much to receive in Social Security income, there are different options you should consider so you can leverage these benefits to best suit your situation. A July 2013 Voya Financial Retirement Experience study, which surveyed 2,442 adults over the age of 50 who were within five years of retirement or in retirement, found 78 percent of retirees started taking Social Security benefits before age 65, while 65 percent of them started benefits at age 62. Yet, if you plan to continue to work, anticipate a long retirement, or feel confident in your current savings, you probably want to wait to claim Social Security benefits until your full retirement age, which is between 66 and 67 years old, depending on your birth year. Delaying Social Security up until age 70 increases your benefit amount in retirement.
Adding another wrinkle to your plan, if you are married, divorced or widowed, you have many options to consider based on how you file for benefits. Generally, a smart plan of action is to meet with your financial advisor, who can explain how different filing options impact your personal retirement goals. He or she can take into account life expectancy and anticipated income from savings.
Through their professional experience and the use of planning software, financial advisors can indicate your probability of success when claiming retirement benefits. If you do not meet with an advisor, it is important to remember that although the Social Security Administration provides valuable educational resources, they are trained not to provide advice on timing and when it would be most opportune for you to begin collecting benefits.
4. Develop a strategy on how and when to withdraw money from your portfolio. Generating income during retirement is often one of preretirees' greatest concerns. Luckily, there are a few different approaches you can take to keep your mind at ease once you've stopped working. Your portfolio composition will vary based on the type of vehicle you are using and how you plan to spend your money. If you are looking for regular, predictable income, an annuity contract may be a good fit.
An income-only strategy makes sense in a situation where you wish to only spend income generated by investment assets through dividends or interest income. A third strategy would aim to generate income and growth within your investments. This strategy helps you take "as needed" withdrawals to complement other primary and more predictable sources of income. The higher-risk portion of the portfolio is invested for the long term (greater than 10 years) for growth, while the lower risk portion is invested for the short term (less than 10 years) for income. This strategy generally poses more risk with your investments, but does have greater upside potential than the previous two strategies.
To achieve your retirement income goals, the best strategy often ends up being a combination of these or other investment strategies - delivering income strategically for your specific "needs," "wants" and "wishes."
5. Get help from a professional. Setting goals and making plans are all steps that you can take on your own, but a financial advisor will help ensure you've taken care of every detail. These tips will help get you started on your road to retirement readiness, but with the help of an advisor who can offer you ongoing advice and guidance, you will likely feel more confident about "needs," "wants" and "wishes" for a long and happy retirement.
Tom Halloran is president of Voya Financial's closely-aligned broker-dealer, with over 2,400 registered representatives who provide education, financial planning and a broad range of personalized asset accumulation, protection and distribution solutions to advance the retirement readiness of Americans.
Treasury Auctions for the Week of Sept. 8
Treasury Auctions for the Week of Sept. 8
SEPT. 7, 2014
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The Treasury’s schedule of financing this week includes Monday’s regular weekly auction of new three- and six-month bills and an auction of four-week bills on Tuesday.
At the close of the New York cash market on Friday, the rate on the outstanding three-month bill was 0.03 percent. The rate on the six-month issue was 0.05 percent, and the rate on the four-week issue was 0.02 percent.
The following tax-exempt fixed-income issues are scheduled for pricing this week:
MONDAY
Florida Department of Environmental Protection, $230 million of debt securities. Competitive.
ONE DAY DURING THE WEEK
Metropolitan Atlanta Rapid Transit Authority, $95.7 million of variable rate sales tax revenue bonds. RBC Capital Markets.
Chicago, $372.7 million of water revenue bonds. PNC Capital Markets.
Colorado Springs, $110 million of utilities system improvement revenue bonds. Barclays Capital.
Douglas County, Neb., $80.9 million of hospital revenue bonds. Wells Fargo Securities.
Fresno, Calif., Unified School District, $60 million of general obligation bonds. Stifel, Nicolaus & Company.
Greenville, S.C., Health System, $83.5 million of hospital revenue bonds. Barclays Capital.
Municipal Improvement Corporation of Los Angeles, $51.1 million of lease revenue bonds. Loop Capital Markets.
Maryland Community Development Administration, $121.5 million of residential revenue bonds. Bank of America.
Mason County, W.Va., $100 million of pollution control revenue bonds. J. P. Morgan Securities.
Massachusetts Development Finance Agency, $73.4 million of Boston University revenue bonds. J. P. Morgan Securities.
Michigan, $56 million of debt securities. Citigroup Global Markets.
Minneapolis, $274 million of debt securities. Citigroup Global Markets.
Novato, Calif., Unified School District, $54 million of general obligation refinancing bonds. Stifel, Nicolaus & Company.
Palm Beach County, Fla., Health Facilities Authority, $90 million of debt securities. Citigroup Global Markets.
Pennsylvania, $286.4 million of taxable turnpike special obligation bonds. Wells Fargo Securities.
Suffolk County, N.Y., Economic Development Corp., $82.5 million of revenue bonds. Goldman Sachs.
A version of this article appears in print on September 8, 2014, on page B2 of the New York edition with the headline: Treasury Auctions Set for This Week. Order Reprints|Today's Paper|Subscribe
Developer dead in mystery crash revamped a NY city
Associated Press
By DAVID MCFADDEN and JENNIFER PELTZ 2 hours ago
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KINGSTON, Jamaica (AP) — A developer presumed dead with his wife in a private plane crash near Jamaica had an "uncanny instinct" for revitalizing properties and an "incalculable" impact on his western New York hometown's resurgence from crumbling industrial center to trendy destination for young professionals, friends and colleagues said.
Laurence Glazer, 68, bought up dozens of properties in Rochester, on the shores of Lake Ontario, including landmark buildings belonging to the manufacturing giants Xerox Corp. and Bausch + Lomb. He converted abandoned factories into loft apartments and turned a shuttered hospital into offices.
Glazer had a way of "taking properties that were dead and breathing life back into them at a time when people were really skeptical about the ability to do that," Heidi Zimmer-Meyer, president of Rochester's Downtown Development Corp., said Saturday.
The U.S. Coast Guard said Glazer and his wife Jane were on a single-engine turboprop Socata TBM700 that flew on its own for 1,700 miles before running out of fuel and slamming into the sea off Jamaica's northeast coastline. The couple apparently was incapacitated.
Rescue crews said Saturday they could no longer see debris spotted Friday evening by a military aircraft drifting roughly 24 miles off the coastal town of Port Antonio in a stretch where the water is up to 6,500 feet. A 154-foot U.S. Coast Guard cutter and a helicopter crew aided in the search Saturday.
"We would have to assume it may have sunk," Jamaica Coast Guard Commander Antonette Wemyss-Gorman said.
Mystery Shrouds US Couple's Crash Off Jamaica Play Video
Mystery Shrouds US Couple's Crash Off Jamaica
Laurence and Jane Glazer, the founder of household-products catalog company QCI Direct, were both experienced pilots. They were flying to Naples, Florida, near where Glazer's development company, Buckingham Properties, also has interests.
"It's beyond tragic here. We're reeling," Zimmer-Meyer said, calling the couple "people who just cannot be replaced."
Gov. Andrew Cuomo, Lt. Gov. Robert Duffy and Sen. Charles Schumer were among the officials who publicly expressed sorrow for the couple's loss.
Duffy, the former mayor of Rochester, said the Glazers "possessed two of the brightest minds in business."
Air traffic controllers were last able to contact the pilot of the Glazers' plane at 10 a.m., about 75 minutes after it took off from the Greater Rochester International Airport.
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Jamaican Marine Police return to the Port Antonio Marina …
Jamaican Marine Police return to the Port Antonio Marina after a fruitless search for a plane that c …
Fighter pilots sent to shadow the plane saw its windows frosting over and the pilot slumped over but breathing. One of the fighter pilots speculated that the Socata pilot was suffering from hypoxia, or oxygen deprivation.
Cases of unresponsive pilots are unusual and often attributed to insufficient cabin pressurization that causes the pilot to pass out, aviation safety expert John Goglia said. A 1999 Learjet crash that killed professional golfer Payne Stewart and five others was attributed to cabin depressurized that caused all aboard to lose consciousness.
Harold Samoff, the lawyer who recruited Glazer to real estate from working for his wife's family's printing company in 1970, said his friend was a "man of many, many, many skills" who had an interest in "practically everything."
"Once he got involved, he knew it," Samoff said.
Glazer and Samoff started with a small apartment building, around the start of the city's long economic decline, and went on to acquire and revitalize more and bigger properties on the periphery of the city's core, reasoning that "just like blight can spread, improvement can spread, also," Samoff said.
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In this June 24, 2010 photo, developer Larry Glazer …
In this June 24, 2010 photo, developer Larry Glazer gestures toward a building to be demolished on A …
"His contribution is actually incalculable because a lot of other people didn't step up" to refurbish buildings as early as he did, Samoff said.
Glazer was also generous with advice to others just starting out, Zimmer-Meyer said. She said she received a call last week from a young real estate entrepreneur who mentioned that Glazer had helped her.
"The one good thing is that he's left an unbelievable legacy," Zimmer-Meyer said. "The difficult thing is that he's gone."
____
Associated Press writer Jennifer Peltz reported from New York.
Creditor wants 75 cents on dollar for Detroit debt
Bond insurer's attorney tells judge 75 cents on dollar is fair settlement of Detroit debt
Associated Press
By Corey Williams, Associated Press 17 hours ago
Creditors lay out view in Detroit bankruptcy trial
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FILE- This April 9, 2008 file photo shows the city of Detroit. An attorney for Detroit is set to resume his opening statement, Wednesday, Sept. 3, 2014, at the city’s historic bankruptcy trial, after telling the judge on the first day that the city’s plan to restructure billions of dollars in debt is needed to free up funds to provide services to residents and allow it to survive. (AP Photo/Carlos Osorio, file)
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DETROIT (AP) -- An attorney for one of Detroit's creditors told a judge overseeing the city's historic bankruptcy Wednesday that Detroit could afford to pay 75 cents on the dollar to settle its debt if it sold some masterpieces from the art museum.
But an attorney for Detroit told federal Judge Steven Rhodes in his opening statement that the debt-restructuring plan focused first on resolving a dire financial situation and does not discriminate against creditors.
Syncora Guarantee attorney Marc Kieselstein said the debt-restructuring plan would pay some creditors less than 10 cents on the dollar. Rhodes asked Kieselstein the percentage he believed Detroit could offer the New York-based bond insurer and where the money would come from.
"There's the art," Kieselstein said, referring to city-owned artwork at the Detroit Institute of Arts. "You could sell one or two pieces. You can finance some of the pieces to get that number."
Detroit wants to cut $12 billion in unsecured debt to about $5 billion through its plan of adjustment, which must be approved by Rhodes. Most creditors, including more than 30,000 retirees and city employees, have endorsed the plan of adjustment.
Syncora, who has said its claims are about $400 million, is not one of those creditors, and has said Detroit's blueprint for emerging from the largest municipal bankruptcy in U.S. history is unfair for financial creditors.
The trial's second day began with attorney Bruce Bennett explaining that the plan, put together by state-appointed emergency manager Kevyn Orr and his restructuring team, has to be followed in order for Detroit to be stronger and viable.
"The city did all of this with the proper purpose of restructuring its financial affairs," Bennett said, adding, "The facts will show Detroit has earned this court's help."
During his opening statements, Kieselstein characterized the city's plan "so flawed in its structure, so dismissive of basic fiduciary duties and so lacking in evidentiary support that it cannot be confirmed without doing serious mayhem to the rule of law."
The threat of selling the artwork prompted the creation of the so-called Grand Bargain — commitments from the state, major corporations, foundations and others to donate more than $800 million over 20 years to soften cuts to city pensions while placing pieces in the museum into a trust and out of the reach of debtor demands.
Pensioners this summer voted in favor of Orr's plan, which calls for general retirees to take a 4.5 percent pension cut and lose annual inflation adjustments. Retired police officers and firefighters would lose a portion of their annual cost-of-living raise.
Opening statements will continue Thursday.
The trial is likely to take a number of days. Dozens of witnesses are expected to be called — including Orr and possibly Detroit Mayor Mike Duggan. About 12 creditors are opposing the plan in court.
___
Associated Press writer Jeff Karoub contributed to this report.
Fed: US consumers have decided to 'hoard money'
CNBC
September 2, 2014 3:19 PM
Fed: US consumers have decided to 'hoard money'
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One of the great mysteries of the post-financial crisis world is why the U.S. has lacked inflation despite all the money being pumped into the economy.
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The St. Louis Federal Reserve thinks it has the answer: A paper the central bank branch published this week blames the low level of money movement in large part on consumers and their "willingness to hoard money." The paper also cites the Fed's own policies as a reason for consumers' unwillingness to spend.
Though American consumers might dispute the notion that inflation has been low, the indicators the Fed follows show it to be running well below the target rate of 2 percent that would have to come before interest rates would get pushed higher.
That has happened despite nearly six years of a zero interest rate policy and as the Fed has pushed its balance sheet to nearly $4.5 trillion.
Much of that liquidity, however, has sat fallow. Banks have put away close to $2.8 trillion in reserves, and households are sitting on $2.15 trillion in savings-about a 50 percent increase over the past five years.
"So why did the monetary base increase not cause a proportionate increase in either the general price level or (gross domestic product)?" economist Yi Wen and associate Maria A. Arias asked in the St. Louis Fed paper. "The answer lies in the private sector's dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money."
Read More Fed minutes: Some want 'relatively prompt' rate hike
Monetary velocity-or the force to which money is put to work in the economy-is widely considered a key metric in measuring inflation.
Under normal circumstances, according to the Fed analysis, when the money supply increases at a faster rate than economic output, which has been the case since the Fed has instituted its aggressive easing practices, prices should keep pace. Factoring in the growth in the money supply against output, inflation should have grown at a whopping 33 percent annually, when in fact it has been rising less than 2 percent.
The reason that inflation hasn't kept up with gains in the money supply simply has been that people are sitting on cash rather than spending it, which has kept money velocity at historically low levels. Yi and Arias explained:
During the first and second quarters of 2014, the velocity of the monetary base was at 4.4, its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession. This implies that the unprecedented monetary base increase driven by the Fed's large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one proportional increase in nominal GDP. Thus, it is precisely the sharp decline in velocity that has offset the sharp increase in money supply, leading to the almost no change in nominal GDP.
The hoarding of money, then, is attributed to two factors:
A (gloomy) economy after the financial crisis.
The dramatic decrease in interest rates that has forced investors to readjust their portfolios toward liquid money and away from interest-bearing assets such as government bonds
The Fed pair go on to make a fairly stunning indictment of sorts about Fed policy:
In this regard, the unconventional monetary policy has reinforced the recession by stimulating the private sector's money demand through pursuing an excessively low interest rate policy (i.e., the zero-interest rate policy).
Read More The poor get poorer: Low-wage jobs still dominate
They make one final point in regard to interest rates.
Fed policy, in which it has expanded its balance sheet to nearly $4.5 trillion by buying various debt instruments, including Treasurys, has driven interest rates lower. Under normal circumstances, the decline in 10-year Treasury rates would have pushed monetary velocity lower by 0.085 percentage points. Instead, it has declined 5.85 percentage points, fully 69 times more than models would suggest, the paper states.
This happened because the nominal interest rate on short-term bonds has declined essentially to zero, and, in this case, the best form of risk-free liquid asset is no longer the short-term government bonds, but money.
The findings, of course, beg the question of what happens once the Fed takes its foot off the throat of bond yields, people start spending again, and the velocity of money, at least theoretically speaking, runs wild.
Economist Michael Pento, a frequent and harsh Fed critic, believes the St. Louis group has some of its assumptions wrong, particularly its understanding of why people aren't spending money. He sees it more as a function of high levels of debt that are constraining spending.
Read More Investors spending the summer on the sidelines
While Pento believes rates should rise, he thinks the initial reaction is going to be painful for the economy and unlikely to unleash a torrent of new spending.
"They're hard-money guys and I like them," Pento said of the St. Louis Fed. "I think they're trying to make an argument for interest rates to go up. But if they think rising rates are going to be good for the economy in the short term, they're mistaken."
Christopher Whalen, senior managing director at Kroll Bond Rating Agency, believes the Fed will come to regret how much it expanded its balance sheet and how long it kept rates low.
"The risks of continued low interest rates when measured against market benchmarks such as corporate bond spreads and volatility suggest to us that the longer the (Fed Open Market Committee) continues current policy, the more likely we are to see an adverse event in the financial markets when interest rate policy does change," Whalen said in a note. "We believe that the Fed's refusal to normalize interest rates now, during a time of high investor demand for assets, and relative economic stability and growth, could lead to adverse market conditions in the future."
-By CNBC's Jeff Cox.
Path of Stolen Credit Cards Leads Back to Home Depot Stores
By NICOLE PERLROTHSEPT. 3, 2014
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If the evidence proves to be valid, the Home Depot hack could top the record-setting breach of Target’s network last December. Credit Joe Raedle/Getty Images
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SAN FRANCISCO — There are two tracks to finding the identity of a company that has been hit by cybercriminals. Both of them involve going backward.
Over the last few days, thousands of fresh credit and debit card numbers have surfaced on so-called carding sites, which are websites where stolen credit card data is sold. On those sites, Eastern European hackers are selling the stolen account information of people in cities as distant as Mission Viejo, Calif., and Hanover, N.H. They are charging as much as $50 per card.
Bank employees, fraud detectives at computer security companies and law enforcement officials are tracing the path taken by the stolen cards, tracking the source of what appears to be the latest in a series of major data breaches that the Secret Service and the Department of Homeland Security believe has affected more than 1,000 American retailers.
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Home Depot Investigates a Possible Credit Card BreachSEPT. 2, 2014
So far, all roads point back to Home Depot. And if the evidence uncovered so far proves to be valid, the hack could top the record-setting breach of Target’s network last December.
Investigators are searching for what they call “a common point of purchase” among the cards.
Bank employees are able to identify stolen cards simply by examining the first six digits of the card, which are known as the Bank Identification Number, or BIN number. They are buying back card numbers and cross-referencing the transactions of those cards in search of one common retailer.
Fraud detectives, meanwhile, who do not have access to transaction data, are able to exploit a recent innovation in the underground. In the last few years, carding sites have been selling the city, state and ZIP code of the store from which each card was stolen in addition to the account number and expiration date, said Ron Sadowski, the director of technology solutions at RSA, the security division of EMC.
Hackers can charge a higher price for that location data because it allows criminals and counterfeiters to fool fraud-detection controls, which often flag purchases from far-flung places, Mr. Sadowski said. Investigators will try to match those ZIP codes to a list of store locations for a particular retailer.
On Wednesday, Brian Krebs, the security blogger who first reported the potential breach of Home Depot, said that there was a 99.4 percent overlap between ZIP codes listed in a collection of stolen account numbers on an Eastern European carding site, called Rescator, and Home Depot’s store locations.
Mr. Krebs said that out of 1,822 ZIP codes listed in the stolen card data on the Rescator carding site, only 10 did not correspond to a Home Depot store location.
That means the breach could affect most of the retailer’s 2,200 stores, which is about 400 more than the Target breach.
Mr. Krebs, citing bank sources, said fraudulent activity indicated that the breach on Home Depot began as early as late April. If that is confirmed, criminals would have had unfettered access to Home Depot’s payment systems for some four months. By comparison, Target’s breach was detected after three weeks.
Home Depot, based in Atlanta, has not confirmed that it was the victim of a cyberattack, only that it was investigating “unusual activity.”
Paula Drake, a spokeswoman for Home Depot, said the company’s forensics and security teams “have been working around the clock since we first became aware of a potential breach Tuesday morning.” Ms. Drake said Home Depot had engaged Symantec and FishNet Security, two cybersecurity firms, to look into a possible breach.
If a breach is confirmed, Ms. Drake reminded customers that they would not be responsible for fraudulent charges and said Home Depot would offer free identity protection services, such as free credit monitoring.
Retailers are not the only businesses being targeted by hackers. Last week, JPMorgan Chase was the victim of a sophisticated breach that security experts say has affected as many as five financial institutions. The identity of the other institutions is still unclear.
“Underground criminals are going after all manner of businesses, large and small, that they think are vulnerable,” Mr. Sadowski said. “But the good news is there is more information than ever on how criminals are trying to perpetrate these attacks.”
A version of this article appears in print on September 4, 2014, on page B3 of the New York edition with the headline: Path of Stolen Credit Cards Leads Back to Home Depot Stores. Order Reprints|Today's Paper|Subscribe
U.S. trade deficit smallest in six months on rising exports
Reuters
36 minutes ago
Bird flies past a container ship belonging to China Shipping Container Lines at the Port of Los Angeles in San Pedro
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A bird flies past a container ship belonging to China Shipping Container Lines at the Port of Los Angeles in San Pedro, California August 20, 2014. REUTERS/Lucy Nicholson
WASHINGTON, Sept 4 (Reuters) - The U.S. trade deficit narrowed in July to its lowest point in six months as exports rose to a record high, supporting views of sturdy economic growth in the third quarter.
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The Commerce Department said on Thursday the trade gap fell 0.6 percent to $40.5 billion, the lowest since January. June's trade deficit was revised to $40.8 billion.
Economists polled by Reuters had expected the deficit to widen to $42.2 billion in July from a previously reported $41.5 billion shortfall in June.
When adjusted for inflation, the deficit narrowed to $48.2 billion, the lowest since December 2013, from $48.9 billion in June, which could see economists raise their estimates for third quarter gross domestic product.
Trade weighed on growth in the April-June period.
Exports increased 0.9 percent to a record high of $198.0 billion in July, supported by a surge in goods, automobiles, parts and engines, as well as non-petroleum products.
Imports rebounded 0.7 percent in July to $238.6 billion after declining in June. The rebound in imports is a sign of underlying strength in domestic demand.
The increase in imports was driven by food and autos, which both hit record highs.
Petroleum imports declined, which saw the petroleum deficit hitting its lowest level since May 2009. A domestic energy boom has seen the United States reduce its dependence on foreign oil.
The politically sensitive trade gap with China was the highest on record in July.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
Brent oil sinks to 16-month low on demand fears, strong dollar
Reuters Middle East
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* Weak factory data in China, Europe stoke oil demand fears
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NEW YORK, Sept 2 (Reuters) - Brent crude oil futures fell to the lowest level in 16 months on Tuesday, pressured by the prospect of slowing oil demand growth in China and Europe, while a strong dollar and ample supplies pushed U.S. prices to a seven-month low.
Oil prices on both sides of the Atlantic have been in steady decline since the end of June as concerns faded over supply disruptions from Iraq, Libya and Russia. Continued supply from key producing regions and tepid demand has left global markets well stocked.
Brent crude for October delivery fell $2.45 to settle at $100.34 a barrel, its lowest closing price since May 1, 2013. U.S. crude dropped $3.08 from Friday's close to settle at $92.88 a barrel, the lowest since Jan. 14. There was no trading in the United States on Monday because of the Labor Day holiday.
"There was some buying going into the long weekend and you are seeing that premium come out," said Oliver Sloup, director of managed futures at iitrader.com in Chicago. "The dollar is strong today and the U.S. has so much oil and has the capability to produce more."
Euro zone manufacturing growth slowed more than initially thought in August, data showed, while growth in China's factory sector slipped to a three-month low last month, adding to concerns about oil demand.
The euro sagged to fresh one-year lows against the dollar on bets the European Central Bank will do more to help a wobbly euro zone economy, while the pound fell to a near five-month low versus the greenback on worries about a Scottish secession.
Further pressure came from the prospect of resuming oil supplies from the Buzzard field in the North Sea. The Buzzard field, the biggest contributor to the Forties oil stream, one of the four crudes that underpin the price of Brent crude oil futures, may be shut for up to a week, after going offline at the weekend.
"We have to watch the Buzzard oilfield, but as long as we have plentiful supplies in the European market, the upside for Brent will be rather limited," said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt.
Analysts were beginning to watch for a turnaround in U.S. prices after a steep fall from above $107 a barrel in June. Some saw strong support at $90 a barrel and before that, between $92 and $92.50.
Demand for physical crude has withered in recent months, creating a glut in Asia and the Atlantic basin and causing the futures market to flip into contango, in which oil for delivery in the future is priced higher than that for immediate delivery.
This has encouraged traders to store crude, with Energy Aspects saying that 75 percent of the 40 million barrels of storage capacity in South Africa's Saldanha Bay has been filled. (Reporting by Edward McAllister in New York, additional reporting by Robert Gibbons and Catherine Ngai, Claire Milhench in London, Jacob Gronholt-Pedersen in Singapore; Editing by Marguerita Choy)
Dollar Near One-Year High Against Euro on U.S. Economy, Ukraine
Bloomberg
By Mariko Ishikawa and Kristine Aquino 7 hours ago
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The dollar reached the highest level in almost a year against the euro as signs of U.S. economic growth and tensions in Ukraine boosted demand for the currency.
The euro held losses against its 16 major peers from last month after completing a seven-week slide, the longest stretch in more than a decade. A manufacturing index today may add to the case for the European Central Bank to expand stimulus. Australia's dollar remained lower as a report showed manufacturing slowed in China, its biggest trading partner. New Zealand's dollar reversed a loss after a trade index climbed.
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"Data out of the U.S. has been pretty good," said Thomas Averill, a managing director in Sydney at Rochford Capital, a currency and rates risk-management company. "One of the big reasons why euro-dollar is going down is we've got talk of tightening coming out of the Federal Reserve and the opposite kind of talk coming out of Europe."
The dollar added 0.1 percent to $1.3120 per euro at 12:55 p.m. in Tokyo from Aug. 29, after earlier touching $1.3119, the strongest since Sept. 6. The euro declined 0.8 percent last week in the longest stretch of losses since December 1999.
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The euro traded at 136.67 yen, after falling 0.7 percent to 136.69 yen in August. The greenback rose 0.1 percent to 104.17 yen from 104.09 on Aug. 29, when it capped a 1.3 percent monthly gain. U.S. markets are closed for the Labor Day holiday.
Bearish Bets
Hedge funds and other large speculators increased bets on declines in the euro against the dollar to the most since July 2012. The difference in the number of wagers on a decline compared with those on a gain -- so-called net shorts -- was 150,657 on Aug. 26, according to data from the Washington-based Commodity Futures Trading Commission.
More from Bloomberg.com: Hong Kong Group Vows Fight Over China ‘Puppet' Poll Plan
Demand for the euro was limited after pro-Russian rebels attacked two Ukrainian coast-guard vessels for the first time, just hours after European Union governments agreed to impose new sanctions on Russia if the conflict worsens. Fighting in southeast Ukraine continued yesterday and the situation there remains "tense," according to military officials in Kiev.
"The geopolitical theme in general is supportive of the U.S. dollar bull tone," Rochford's Averill said.
The euro may fall toward $1.30 this week and find support around that level, Averill said. Support is an area where there may be orders to buy.
The Markit Economics final August index of euro-area manufacturing probably fell to 50.8, the lowest level since July 2013, according to the median estimate of economists surveyed by Bloomberg News before the data today. Readings exceeding 50 indicate expansion.
ECB Meeting
The ECB will hold a policy meeting on Sept. 4. It may embark on quantitative easing this year or next, according to 44 percent of respondents in a Bloomberg survey last month.
"We expect ECB President Draghi's statement to be scrutinised for hints regarding the thresholds for Quantitative Easing," Mitul Kotecha, the Singapore-based head of Asia-Pacific foreign-exchange strategy at Barclays Plc, wrote in an e-mailed note to clients today. "Although Draghi will sound dovish, policy inaction may give the EUR some limited, albeit short-lived, relief."
In the U.S., economists in a separate survey estimate Markit's final August manufacturing Purchasing Managers' Index probably rose to 58, the highest since April 2010. The index is due tomorrow.
Economic Surprise
The Citigroup Economic Surprise Index for the U.S. climbed to 34.60 last week, the most since Jan. 31. A positive number means data releases have been stronger than expected. The Fed is on pace to end its monthly asset purchases in October.
The dollar rose 1 percent in the past month, according to Bloomberg Correlation-Weighted Indexes that track 10 developed-nation currencies. The euro slid 1.6 percent, the biggest drop within the group, while the yen fell 0.7 percent.
Australia's dollar held losses after China's PMI (CPMINDX) fell to 51.1 in August from 51.7 in July, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. A final reading of a separate gauge by HSBC Holdings Plc and Markit Economics showed a decline. China is the biggest trading partner for Australia and New Zealand.
Home prices across Australia's state and territory capitals recorded the biggest winter gain since 2007, according to the RP Data-Rismark Home Value Index.
The Reserve Bank of Australia meets tomorrow. All 31 economists polled by Bloomberg expect the policy makers to keep cash rate unchanged at record low 2.5 percent.
Statistics New Zealand said in Wellington today the terms of trade index, which measures the price of exports relative to imports, rose 0.3 percent in the second quarter from the previous three-month period. Economists surveyed by Bloomberg expected a 3.5 percent decline.
The Aussie dollar was unchanged at 93.39 U.S. cents after falling 0.2 percent at the end of last week. New Zealand's kiwi gained 0.1 percent to 83.73 U.S. cents from 83.62 on Aug. 29, after declining as much as 0.2 percent.
To contact the reporters on this story: Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net; Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editors responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net Naoto Hosoda, Jonathan Annells
Pot shops shunned by banks haul in the cash
John B. Stephens, NerdWallet 7:30 a.m. EDT August 31, 2014
507876689
(Photo: Getty Images/iStockphoto)
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The newly budding marijuana industry still carries some vestiges of a back-alley trade as conflicting laws and hazy regulatory guidance have left legal pot-shop proprietors dazed, confused and flush with cash, particularly in Washington State and Colorado, where recreational marijuana sales by retailers began this year.
Those businesses deal in what remains a controlled substance under federal law, even though medical use of the drug is legal in 23 states and the District of Columbia, a trend that started in California in 1996. The fog of conflicting statutes has kept banking services out of reach for dispensary operators and retailers, even amid a buzz about booming demand for weed: Taxable pot transactions may near $1 billion over the next 12 months in Colorado alone.
A cautious cheer went up from some merchants in February, when the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) issued "guidance that clarifies customer due diligence expectations and reporting requirements" for banks that deal with marijuana businesses. Media reports hailed it as giving financial institutions a green light to provide normal services to pot shops that opened in Colorado in January and this month in Washington. Yet the result has been anything but normal.
"The media was saying it was a green light,'' said Jenifer Waller, a Colorado Bankers Association senior vice president. "We said, 'No, it continues to be a very solid red light; not even yellow, to be honest.'"
FinCEN's memo "just set up this compliance scheme that's impossible to follow and reiterated that you could still be prosecuted even if you're doing everything under the memo," Waller said. Banks have to file suspicious activity reports on all marijuana-related transactions – the same forms used to flag potential criminal money laundering. Because marijuana remains an illegal drug under U.S. law, federally regulated banks must treat money from those operations as ill-gotten gains, according to the American Bankers Association. Financial institutions working with marijuana merchants and dispensaries also risk facing U.S. criminal charges of aiding and abetting illegal enterprises.
The result has been a rocky road for some pot shops in Colorado.
"Banks didn't know that this wasn't something they were going to be allowed to do, so they went ahead and did it," said Elliott Klug, co-founder of the PinkHouse Blooms marijuana dispensary chain in Denver and Colorado Springs. "We were fully functional and then they got a phone call [from the Drug Enforcement Administration] and the bank had to shut down our accounts."
One upshot: Cash remains king for Klug's business, a situation that heightens the risk level. He said one bank has approached him about providing services, but insisted that only armored cars could transport his cash and his products – and that wouldn't be covered by the proposed $1,500 monthly service fee.
"Not everyone can afford to have armored cars, not everyone can afford armed guards," Klug said. "It's just something that we need to get changed."
Stuck without a bank to stash gobs of greenbacks, Klug said security remains a concern. One result: He employs "a number of people with concealed-carry permits."
Klug's probably not alone. The Denver Post reported that Colorado figures marijuana sales may near $1 billion this fiscal year, based on revenue estimates.
The primary difficulty of being unbanked is the mountains of paperwork created as he attempts to keep good records of all-cash transactions, Klug said. Adding financial pain, he said the U.S. Internal Revenue Service hit him with a 10% surcharge for paying some taxes with cash.
The Treasury's enforcement priorities are to keep marijuana products away from children and pot proceeds out of criminal hands. FinCEN's guidance also lists keeping the drug from being transported to other states and preventing its possession, use or cultivation on federal lands. Asking banks to assist in meeting these goals isn't reasonable, according to Waller, of the state banking group.
"As an financial institution you have no way of knowing where an end product from one of your customers is being used," she said. "It set up a know-your-customer's-customer type of compliance that is all but impossible to do."
For unbanked marijuana businesses, the news only got worse in April when U.S. Senators Chuck Grassley, an Iowa Republican, and Dianne Feinstein, a California Democrat, sent a letter to FinCEN Director Jennifer Shasky Calvery, complaining that its guidance suggested enforcement discretion would facilitate illegal activity and help move ill-gotten gains into the nation's financial system, which "turns FinCEN's mission on its head." The senators, who lead the Senate's narcotics control caucus, said banks that followed the guidance could be exposed to civil or criminal liability.
FinCEN responded in May by, in Waller's words, "watering down" its February guidance. Grassley said the agency's follow up was to "deny the stated purpose of that guidance."
All of which has left pot merchants about where they started: Shut out.
"Essentially all marijuana businesses are really unable to do business with any of the major national-level banks and credit-card processors," said Erik Altieri, communications director for the National Organization for the Reform of Marijuana Laws (NORML). FinCEN's guidance was "not really enough to convince the large financial institutions to take a bite of the apple."
Financial institutions aren't going to wade into the marijuana business until they're confident they won't face legal action if they do, Altieri and Waller say. They point to legislation that could help, such as the Marijuana Businesses Access to Banking Act introduced last year by U.S. Representatives Denny Heck of Washington and Ed Perlmutter of Colorado, both Democrats. The measure, which would prohibit regulators and law enforcement from penalizing banks for providing services to pot shops, hasn't advanced.
The drug's treatment under federal law may have to change before marijuana businesses can satisfy their craving for checkbooks and access to credit card networks. Anything else may lack the potency to pass fiduciary muster.
MORE: How to Get Insurance if You Smoke Marijuana
MORE: Pot Brings More Cash—and DUIs—to Colorado
MORE: Is Now a Good Time to Invest in Marijuana Stocks?
NerdWallet is a USA TODAY content partner providing general news, commentary and coverage from around the Web. Its content is produced independently of USA TODAY.
The Future of the Corporate Tax
AUG. 30, 2014
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The Future of the Corporate Tax
TO THE EDITOR:
In “How to Fix the Corporate Tax? Repeal It” (Economic View, Aug. 24), N. Gregory Mankiw addressed the issue of tax inversions — when an American company merges with a foreign one and reincorporates abroad — by suggesting the corporate tax be replaced with a consumption tax.
Professor Mankiw wrote that “a corporate chief who arranges a merger that increases the company’s after-tax profit is doing his or her job,” and that “to forgo that opportunity would be failing to act as a responsible fiduciary for shareholders.”
He would certainly be correct if such arrangements were as straightforward as, say, claiming a home mortgage interest deduction when filing your personal tax return. But the argument ignores the fact that the tax planning of multinational corporations is not nearly so cut and dried. It involves teams of legal experts who devise sophisticated ways to push the boundaries of what may be permissible under law — ways that are beyond the reach of average and low-income taxpayers. It is this discrepancy that makes such arrangements so concerning.
AYALON ELIACH
NEWTON CENTRE, MASS., AUG. 24
The writer, a tax lawyer, is director of the tax initiative at the National Association of Consumer Advocates.
TO THE EDITOR:
Kudos to Professor Mankiw for addressing the crux of the problem of tax inversion. Officials verge on the Orwellian when they call responsible corporate managers “unpatriotic” or “corporate deserters” just for trying to keep their taxes as low as possible.
Recently, there have been moves in Washington to build what can only be considered a regulatory wall to prevent future inversions. It is discomforting that officials who should be well versed in the attributes of our free enterprise system would prefer to build a wall rather than work toward reform.
EDWARD T. GIGNOUX JR.
DUNWOODY, GA., AUG. 24
Letters for Sunday Business may be sent to sunbiz@nytimes.com.
A version of this letter appears in print on August 31, 2014, on page BU6 of the New York edition with the headline: The Future of the Corporate Tax. Order Reprints|Today's Paper|Subscribe
3 types of debt you don't want
Alexander MacLennan, The Motley Fool 9 a.m. EDT August 30, 2014
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(Photo: Ross D. Franklin AP)
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Debt is a problem for many Americans, but some types of debt are much more harmful than others. Knowing which types of debt are most harmful to your finances is important when it comes to controlling interest expenses and keeping debt under control.
Payday loans
When it comes to interest rates, payday loans are about as bad as they get. Annualized rates can easily move into the triple-digit range, sometimes moving as high as 500%. On top of that, payday loans come with extra fees that increase costs for borrowers even more.
If these loans are used for the short term, they still cost more than other lending options, but the cost is not as much as if they were used for an extended period of time. However, for many individuals, this is not the case. According to the Center for Responsible Lending, "The average payday borrower has nine transactions per year." Moreover, "Loans to non-repeat borrowers account for just 2% of the payday loan volume."
Although payday loans can seem like the easy solution to covering expenses, there are many better alternatives. Many community banks and credit unions offer short-term loans to cover expenses and do so at rates far better than payday lenders. Some borrowers may also want to consider borrowing from friends and family if it's only for a short period of time. Even though it may be a hassle, few friends of family members will charge triple-digit interest rates.
Credit card debt
There are situations where credit cards are a financially beneficial tool, but credit card debt is among the worst things to carry over time. With many credit cards nearing a 30% interest rate on carried balances and most others carrying at least double-digit interest rates, these debts grow quickly if not paid off.
Consider also that getting rid of credit card debt is a good financial investment. By paying down this debt, you would effectively be earning up to 30% per year on the debt paid down. Even famed investor Warren Buffett is proud of earning an average of 20% per year from his investments.
Credit card debt can arise from a number of scenarios, but too often it comes from irresponsible spending and a pay-it-off-later attitude. While not as expensive on an annualized interest-rate basis as payday loans, credit card debts pile up fast and can lead to much greater expenses down the road.
Unpaid taxes
Few people like to pay the taxman, but not doing so can land you in another heap of financial trouble. As it turns out, the IRS wants what it's owed and is ready to act accordingly.
Through a sea of penalties and interest, those who don't pay their taxes on time and in full can see their debt to the IRS skyrocket. In fact, the IRS even admits that in certain cases, "The interest rate on a credit card may be lower than the combination of interest and penalties imposed by the Internal Revenue Code."
It's also important that you file your tax returns even if you can't pay in full. Not only can refusing to file a tax return potentially increase penalties but, in some cases, it can also make obtaining loans more difficult. The IRS also notes that it may create a substitute return itself for those who haven't filed. But before you think this means less work for you in preparing your taxes, when the IRS writes up the return, making sure you get all your exemptions and deductions is not exactly top priority.
Refusing to cooperate can also lead to the beginning of the collection process, including levies on wages and notice of a tax lien.
To avoid this issue, you may want to consider setting aside money, especially if your employer isn't withholding enough. And if you already know you can't pay your taxes, still make sure to file your return and get in contact with the IRS.
Bad debts
As many Americans struggle with debt, it's important to know which debts are the most harmful. With all their fees, penalties, and high interest rates, payday loans, credit card debts, and overdue taxes are three types of debt to avoid whenever possible.
But for the times when there is a cash shortfall, be sure to consider alternatives. Contact a local bank or credit union or even friends and family. And most importantly, don't just push the debt off until tomorrow unless you want to pay even more.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
Can you afford retirement? 5 ways to make sure
Published: Aug 29, 2014 2:27 p.m. ET
By
JonathanClements
Getty Images
Spend your retirement doing fun things like surfing.
Retirement is hard work these days. How do you generate enough income in a world where the S&P 500 yields roughly 2% and 10-year Treasury notes offer 2½%?
It’s not easy, but here is my five-step plan:
1. Delay Social Security.
Suppose you retire at age 65, at which point you’re eligible for $20,000 a year in Social Security retirement benefits. If you put off benefits until age 70, you would miss out on five years of benefits worth $100,000. In the meantime, you’d likely have to cover your living expenses entirely out of savings.
Still, delaying could make sense. You would boost your benefit at age 70 to at least $28,300, or 41% more, ignoring increases for inflation. A simplistic calculation suggests the extra $8,300 a year would compensate for the missed $100,000 if you live until 82. If you assume the missed $100,000 earned a positive return, even after subtracting inflation and taxes, that raises the break-even age somewhat.
But remember, the life expectancy for a 65-year-old man is age 84 and for a woman it’s 87, and half will live longer than these averages. Delaying can be a particularly smart move if you’re married and you were the main breadwinner. Not only will you get a fatter monthly check for life, but also your spouse could receive your benefit as a survivor benefit. Because of that survivor benefit, it may make sense to delay benefits, even if you’re in poor health.
2. Cover your fixed costs.
Add up how much you spend each month on costs that are pretty much unavoidable, such as mortgage or rent, income and property taxes, car expenses, groceries, utilities and insurance premiums. If you can cover these fixed costs with Social Security, any pension income, interest and dividends, you’re in great shape, because you know you can pay for the basics, no matter how crazy the financial markets get.
What if you can’t cover your fixed costs with regular income? If you’re a conservative investor, you might boost your monthly income by using part of your savings to buy an immediate-fixed annuity. This involves handing over a chunk of money to an insurance company. But in return, you can get a generous income stream that’s paid no matter how long you live.
Jaffe: Many 2014 predictions were wrong
(3:20)
Marketwatch's Chuck Jaffe points out as the calendar is just hitting the home stretch for the year, it’s time to recognize that virtually everyone who made calculated forecasts for 2014 was wrong.
3. Build a cash cushion.
In addition to fixed costs, you’ll have various discretionary expenses. This is the fun stuff, things like eating out, going to the theater and travelling to Europe.
Figure out your total monthly spending — both fixed and discretionary — and compare this to your regular income from Social Security and elsewhere. Let’s say the gap is $10,000 a year. This money will need to come from selling investments.
Problem is, when it comes time to sell, your stocks and bonds could be in a deep funk. As a precaution, you might stash five years of portfolio withdrawals — which, in our example, would be $50,000 — in certificates of deposit and short-term bonds. Thanks to this cash cushion, you know that, no matter what happens in the markets over the next five years, you’ll have the spending money you need.
One warning: Financial experts often recommend retirees pull 4% from their portfolios in the first year of retirement and thereafter step up their withdrawals with inflation. This 4% includes all money you take from your portfolio during the year, including dividends, interest and investment sales. Withdrawing more than that sum? You could run out of money if you live to a ripe old age.
4. Go for growth.
Because you have your fixed and discretionary costs covered for at least the next five years, that frees you up to invest the rest of your portfolio more aggressively. You might buy a mix of stocks and riskier bonds. In good years for the financial markets, sell some winners and use the proceeds to replenish your cash cushion. In bad markets, sit tight.
5. Manage your spending.
If inflation remains muted and the markets are kind, you should be fine with a 4% withdrawal rate.
What if the markets aren’t so kind or inflation takes off? What if you spent more than you should last year, because you sprang for an expensive cruise? You might use a key financial lever: your ability to vary your spending. To get your finances back on track, reduce discretionary spending for the next 12 months. You can’t control how the markets perform — but you can control your spending.
Morgan Stanley Said To Be Planning Natgas Facility
By ELAINE LOW, INVESTOR'S BUSINESS DAILY
Posted 08/29/2014 01:32 PM ET
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Morgan Stanley (NYSE:MS) is reportedly on the road to developing a 50-acre natural-gas export plant in Freeport, Texas, with an annual shipment capacity of 60 billion cubic feet of compressed natural gas.
The investment bank has filed an application with the Department of Energy to build and operate one of the first compressed natural gas export facilities in the U.S., said Reuters.
Shares of the company were up 0.8% in the stock market today.
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Morgan Stanley is one of two Wall Street banks — the other being Goldman Sachs (NYSE:GS) — that are permitted to participate in physical commodities activities. It had previously sold off most of its oil operations in an effort to pull back its physical commodities involvement.
The bank is said to be planning compressed natural gas shipments to Caribbean nations including the Dominican Republic, Guatemala, Costa Rica and others, where natural gas would be a more affordable option than oil.
Once it gets the green light, development of the facility will take about a year at a cost of $30 million-$50 million, said Reuters.
Read More At Investor's Business Daily: http://news.investors.com/business/082914-715324-morgan-stanley-planning-natural-gas-facility.htm#ixzz3BstCATOg
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Nigeria launches national identity card scheme
AFP
August 28, 2014 3:59 PM
Nigerian President Goodluck Jonathan (L) holds a replica of his electronic ID card with chairman of the board of National Identity Management Commission Uche Secoundus during the cards' launch in Abuja, August 28, 2014
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Abuja (AFP) - Nigeria's President Goodluck Jonathan on Thursday launched a national electronic identity card scheme, which backers said would boost access to financial and government services in Africa's most populous nation.
The head of state was issued with his own card, which features a credit card-style chip with personal as well as biometric data and doubles up as a prepaid charge and debit card.
A number of Nigerian government agencies, from the police to the Independent National Electoral Commission, have embarked on their own separate ID card schemes.
But Jonathan said the plan was to eventually include details such as driving licence, health insurance, tax and pension information on the single card.
"The regime of duplication of biometric databases must now have to give way to harmonisation and unification with the e-ID scheme, which shall be the primary database," he told reporters.
Only 32 percent of Nigeria's adult population are thought to have bank accounts, according to a 2012 study.
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Nigerian President Goodluck Jonathan tries to make …
Nigerian President Goodluck Jonathan tries to make cash withdrawal with his electronic identity card …
Nigeria's central bank has been pushing for a move away from cash to electronic payments and has trialled a scheme in the financial capital, Lagos, with the help of private partners.
But the pilot project has not been plain sailing, with retailers and customers often facing frequent power supply and connectivity problems that slowed down transactions.
The cards will be available initially to Nigerians aged 16 and older and all residents in the country for more than two years.
Cardholders will be given a unique national identification number and have to provide fingerprint data, a photo and digital signature to cut the risk of fraud and embezzlement.
The scheme has so far cost about seven billion naira ($42.5 million, 32 million euros), according to the National Identity Management Commission.
Financial services firm MasterCard, the scheme's payment technology provider, said 13 million cards would be available in the first phase, with more than 100 million to be issued in total.
"Nigeria is ready for this," the firm's head of Sub-Saharan African operations, Daniel Mohin, told AFP.
"Nigeria has been left out of electronic financial payment for decades but now Nigeria is saying we want to take our rightful place in payment. There has not been a project of this magnitude... that's been rolled out at this scale."
Africa's most populous nation has an unenviable reputation for fraud, particularly involving financial transactions.
But Monehin said the card was "secured with the best form of security that is available".
Chief in $800M fraud gets 20 years prison
Associated Press
By CURT ANDERSON 19 hours ago
MIAMI (AP) — The man who masterminded an $800 million insurance scam that fleeced tens of thousands of investors in one of Florida's all-time largest fraud schemes was sentenced Friday to 20 years in prison.
U.S. District Judge Robert Scola gave Joel Steinger, 64, credit for pleading guilty to avoid a lengthy and costly trial and said Steinger's multiple medical problems — he appeared in court in a wheelchair, with an oxygen tank — argued against the maximum 50-year sentence sought by prosecutors.
But Scola said Steinger still deserved a lengthy prison term because, as chief executive of now-defunct Mutual Benefits Corp., he orchestrated a fraud scheme that victimized more than 30,000 investors in all 50 states and numerous foreign countries between 1994 and 2004.
"My understanding is that most of the time, on the major decisions, it was you making the decisions," Scola said. "It's clear that you were the mastermind of the criminal enterprise."
The company, first investigated in 2003 by the state Office of Insurance Regulation, bought life insurance policies from people with AIDS, cancer and other chronic illnesses and sold them to investors. The policyholder would get paid an upfront, discounted amount and the investor was promised a larger insurance payout when the person died.
The company promised safety and sky-high returns. But Steinger and others involved in the scam admitted that life expectancy numbers were cooked, the company's financial strength was falsified and eventually older investors were being paid with money from newer ones in classic Ponzi scheme fashion. Mutual Benefits was shut down by the Securities and Exchange Commission in 2004.
Assistant U.S. Attorney Karen Rochlin argued for the longest possible sentence, comparing Steinger to convicted Ponzi schemers Bernard Madoff and Scott Rothstein, the former South Florida attorney who is serving a 50-year sentence for running a $1.2 billion scam involving investments in fake legal settlements.
"There should be no others like him ever again," Rochlin said of Steinger.
From his wheelchair, Steinger delivered a rambling 40-minute monologue repeating his many health issues and apologizing for hurting investors and his own employees.
"It eats my guts out that this turned into a criminal enterprise, that people got hurt," he said. "Nobody intended this to end up the way it did, least of all me."
Steinger is the last of 13 defendants convicted in the case, including his brother Steven Steiner who is serving 15 years behind bars. The brothers spell their last names differently.
Part of Friday's hearing concerned Steinger's 2007 assistance to the FBI in an offshoot case involving Dr. Alan Mendelsohn, a Fort Lauderdale eye doctor who was seeking campaign contributions to wield influence among state leaders in Tallahassee. Steinger wore a recording device in conversations in which Mendelsohn falsely claimed he had enough clout to make criminal investigations into Steinger's business disappear.
Mendelsohn eventually pleaded guilty in a federal corruption case and was sentenced to four years in prison.
Steinger got little credit in his own sentencing for his cooperation because, as Rochlin put it, he only turned to the FBI about Mendelsohn when investigators were closing in on his own fraud scheme and he didn't help them uncover the truth behind Mutual Benefits.
"It was too little, too late," she said.
_____
Follow Curt Anderson on Twitter: http://twitter.com/Miamicurt
Gold rises slightly after Yellen comment, but outlook dim
Reuters
August 22, 2014 9:43 PM
By Frank Tang and Clara Denina
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NEW YORK/LONDON (Reuters) - Gold prices edged up on Friday as U.S. equities slipped, but gains were limited after Federal Reserve Chair Janet Yellen said U.S. labor markets remain hampered by the effects of the Great Recession.
For the week, gold lost about 2 percent, its biggest weekly loss in five, as speculation over an early interest rate hike following the latest Fed minutes earlier this week weighed heavily on the yellow metal.
In a speech at a central banking conference in Jackson Hole, Wyoming, Yellen said the U.S. central bank should move cautiously in determining when interest rates should rise, as economic disruption of the last five years has left millions of workers sidelined, discouraged, or stuck in part-time jobs.
Gold prices continued to hover just above a two-month low reached on Thursday. Bullion has dropped about 3 percent in the past five sessions, underperforming U.S. Treasury bonds, which are considered the preferred safe-haven investment, traders said.
"I see no reasons to own gold, which is likely to trend lower with rallies being sold. The Treasury yields at under 3 percent and crude oil prices showing signs of a recession are significant headwinds for precious metals," said Jonathan Jossen, COMEX gold options floor trader in New York.
Spot gold was up 0.3 percent at $1,280.29 an ounce by 3:22 p.m. EDT (1922 GMT), not far from a two-month low of $1,273.06 hit on Thursday. The metal is down 1.9 percent for the week, the biggest drop since the week ended July 18.
U.S. COMEX gold futures for December delivery settled up $4.80 at $1,280.20 an ounce.
U.S. crude oil futures fell on Friday for a fifth straight week of declines on worries about plentiful supplies. Oil prices have also dropped more than 4 percent in the last 10 sessions, while the S&P equities index fell after investors got few clues about the course of interest rates from Yellen.
Physical demand for gold in major consumers China and India remained weak. Analysts, however, expected buying from India to increase heading into the festival and wedding season, when it is traditionally considered auspicious to buy the metal.
Among other precious metals, silver was down 0.1 percent at $19.40 an ounce. Platinum rose 0.3 percent to $1,416.25 an ounce, snapping a nine-day losing streak, its longest since July 2008. Spot palladium climbed 1.3 percent to $885.25 an ounce.
(Additional reporting by A. Ananthalakshmi in Singapore; Editing by David Evans, Nick Zieminski and Tom Brown)
Roche to Buy Drug Maker InterMune for $8.3 Billion
By ANDREW POLLACK and MICHAEL J. DE LA MERCED
August 24, 2014 12:47 pmAugust 24, 2014 1:12 pm
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Updated, 1:05 p.m. |
The Swiss drug maker Roche agreed on Sunday to buy InterMune, sells a drug to treat a deadly lung disease, for $8.3 billion, as pharmaceutical companies continue to seek new products to bolster their offerings.
The price, $74 per share, represents a 38 percent premium to InterMune’s closing price on Friday and 63 percent to the price on Aug.12, before news reports started circulating that InterMune might be acquired.
InterMune, based in Brisbane, Calif., has one product on the market: a drug called pirfenidone to treat idiopathic pulmonary fibrosis, a fatal scarring of the lungs.
InterMune sells pirfenidone under the name Esbriet in Europe and Canada, where it won regulatory approved in 2011 and 2012, respectively. The drug could win approval in the United States by the end of this year. Sales of Esbriet were $35.7 million in the second quarter.
Roche said the acquisition would strengthen the company’s portfolio is respiratory diseases, which has until now not been a major strength for the company that is mainly known for its cancer treatments. Roche sells Xolair, a drug for asthma and Pulmozyme for cystic fibrosis but said it was developing other drugs for respiratory diseases.
“Our offer provides significant value to InterMune’s shareholders and this acquisition will complement Roche’s strength’s in pulmonary therapy, Severin Schwan, the chief executive of Roche, said in a statement.
The acquisition comes amid a flurry of deal-making and attempted deal-making in the pharmaceutical sector.
There were $87 billion in acquisitions in the sector in the first half of this year, eclipsing the total for all of 2013, according to Evaluate, a research firm. And the total for the first half does not include the $54 billion acquisition of Shire by AbbVie announced in July.
The mergers are partly driven by the need for some big companies to replace the revenue from products that have lost patent protection. In addition, some mergers are also being driven by the desire to achieve tax savings has prompted some American companies to buy or try to buy rivals based in Ireland or other jurisdictions with low tax rates.
Roche, however, has historically not relied much on acquisitions for its pharmaceutical business, though it has in its diagnostics business. The big exception was its acquisition of the part of biotechnology pioneer Genentech that it did not already own for $46.8 billion in 2009.
Idiopathic pulmonary fibrosis, which has no known cause, affects between 70,000 and 200,000 Americans, according to various estimates. As scarring builds up in the lungs, people gradually lose the ability to breathe, with death often occurring 2 to 5 years after diagnosis.
In the United States there are no approved treatments, though steroids and some other drugs are used off label and a relatively small number of patients can get lung transplants.
But Esbriet, if it wins approval, probably will not have the market to itself for long because Boehringer Ingelheim has also applied for approval of a drug called nintedanib.
Both drugs slowed the decline in lung function, according to papers published in The New England Journal of Medicine in May. There is evidence from clinical trials that pirfenidone can also help patients live longer, though it is not clear if the evidence is strong enough for that to be listed on the drug’s label should it win approval.
The deal is expected to close by year end.
Citigroup and the law firm Davis Polk & Wardwell advised Roche. Centerview Partners, Goldman Sachs and the law firm Cravath, Swaine & Moore advised InterMune.
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