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Oil rises above $80 as regional stocks gain.
Oil rises above $80 in Asia as traders eye regional stock market gains
Alex Kennedy, Associated Press Writer, On Sunday February 28, 2010, 11:45 pm
SINGAPORE (AP) -- Oil prices rose above $80 a barrel Monday in Asia as crude traders followed regional stock markets higher.
Benchmark crude for April delivery was up 56 cents to $80.22 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $1.49 to settle at $79.66.
Oil traders, who often look to equities as a measure of overall investor sentiment, were cheered by a jump in all the major Asian stock indexes Monday amid recent signs that Asian manufacturing is recovering from last year's slump.
This week, investors will be eyeing U.S. jobs data to get a better sense of the recovery in the world's largest economy. The Labor Department is scheduled to announce February's unemployment rate on Friday. Joblessness was 9.7 percent in January.
Oil prices have touched the low $80 level several times in the last six months, but fallen back into the $70s when U.S. crude inventory data failed to justify investor optimism.
In other Nymex trading in March contracts, heating oil rose 1.57 cents to $2.051 a gallon, and gasoline gained 1.48 cents at $2.203 a gallon. Natural gas prices fell 4.7 cents to $4.766 per 1,000 cubic feet.
In London, Brent crude was up 54 cents at $78.13 on the ICE futures exchange.
Berkshire Hathaway?
The History Of Taxes In The U.S.
Amy Fontinelle, On Friday February 26, 2010, 4:22 pm EST
The plethora of taxes we pay today - federal income tax, alternative minimum tax, corporate tax, estate tax, FICA, and so on - didn't always exist. America's first citizens enjoyed few to no taxes, and taxes were added, increased and occasionally (and often temporarily) repealed to give us the tax regime we have today. Let's explore the origins of some of the more common taxes we face today.
When Were Taxes Implemented?
Most of the taxes we pay today have been around for less than half of our country's history. One of the oldest is the estate tax,which was enacted in 1797, but was then repealed and reinstituted over the years, often in response to the need to finance wars. The modern estate tax was implemented in 1916 and the gift tax came about in 1924. The federal income tax was enacted in 1913, and corporate income taxes were enacted slightly earlier, in 1909.
The 1920s and '30s saw the creation of multiple taxes. Sales taxes were enacted first in West Virginia in 1921, then in 11 more states in 1933 and 18 more states by 1940. As of 2010, Alaska, Delaware, Montana, New Hampshire and Oregon are the only states without a sales tax. President Franklin Roosevelt signed the Social Security Act in 1935 and Social Security taxes were first collected in January 1937, although no benefits were paid until January 1940.
The alternative minimum tax (AMT), a type of federal income tax, wasn't enacted until 1978. This parallel system uses a separate set of rules to calculate taxable income after allowed deductions. It was designed to prevent taxpayers from avoiding their "fair share" of taxes, but because it is not indexed to inflation, more and more taxpayers have become subjected to it over the years, resulting in escalating calls to reform or eliminate the AMT.
These are just a few of the many taxes Americans are subjected to. Others include cigarette and alcohol taxes, energy taxes, aviation taxes, property taxes, telecommunications taxes and state income taxes. The Tax Foundation calculated that in 2009, Americans on average had to work through April 11 just to earn the amount of money they would pay in taxes over the course of the year, better known as tax freedom day. (The exact date when an individual American has paid his or her tax burden for the year varies by state because of the differences in state taxes.)
Tax Rates Then and Now
Tax rates tend to change (often for the worse) from their rates at the time of their enactment - a fact Americans should consider whenever they are faced with the threat of a new tax. For example, in 1913 when the federal income tax was implemented to help finance World War I, the marginal tax rate was 1% on income of $0 to $20,000, 2% on income of $20,000 to $50,000, 3% on income of $50,000 to $75,000, 4% on income of $75,000 to $100,000, 5% on income of $100,000 to $250,000, 6% on income of $250,000 to $500,000, and 7% on income of $500,000 and up.
Tax rates were the same for everyone - there was no filing status, and there was no distinction between single taxpayers, married taxpayers filing jointly, married taxpayers filing separately and heads of household. By 2009, tax rates had increased considerably, with a top marginal tax rate of 35%. Modern tax rates also depend on filing status. (For up-to-date information about tax brackets and filing status, see the Tax Foundation's Federal Income Tax Rate History.)
"Sin" Taxes
Because cigarette and alcohol taxes are built into the prices of these products, many Americans don't even know they're paying them. Federal tobacco taxes were first enacted in 1794, but came and went over the years until 1864. That year, a box of 20 cigarettes was taxed at 0.8 cents. In 2009, the rate was $1.01 per pack.
States also tax cigarettes. In 2009, South Carolina taxed them at a low of 7 cents per pack, while Rhode Island taxed them at a high of $3.46 per pack.
Spirits, wine and beer are each taxed at different rates by both the federal and state governments. In 2008, the federal excise tax rates were $13.50 per proof gallon of spirits, $1.07 to $3.15 per gallon of wine depending on the wine's alcohol content, and $18 per 31-gallon barrel of beer. Each state sets its own tax rates for each type of alcohol. The lowest tax rate for spirits in 2009 was $1.50 per gallon in Maryland; the highest rate was $26.45 per gallon in Washington. For wine, the lowest tax rate in 2009 was 11 cents per gallon in Louisiana; the highest was $2.50 per gallon in Alaska. Beer was taxed at a low of 1.9 cents per gallon in Wyoming and a high of $1.07 per gallon in Alaska.
The government started taxing cigarettes and alcohol to pay back the debts it incurred during the Revolutionary War. However, social purposes have also long influenced the taxation of these items. The higher the tax, the more likely Americans are to be discouraged from consuming tobacco and alcohol. However, because tobacco and alcohol taxes are flat taxes, they fall disproportionately on the poor. In other words, it is mostly the poor who are discouraged from using tobacco and alcohol, because other income groups can afford to pay the higher taxes.
Gasoline
If the government taxes behavior it wants to discourage, why does it tax gasoline? After all, gasoline taxes were implemented long before the environmental movement kicked in. Federal excise taxes on gasoline were implemented in June 1932 under President Herbert Hoover as part of the Revenue Act of 1932. As its name implies, this act was designed to increase the amount of money the government had at its disposal. So you might say that the government taxes gasoline because it can.
In 1932, gas was taxed at a rate of 1 cent per gallon. By 2009, the tax had risen to 18.4 cents per gallon. State gasoline taxes tack on an additional cost, ranging from a low of 8 cents per gallon in Alaska to a high of 42.5 cents per gallon in New York.
Investments
Taxing investment income might seem particularly counterproductive since investment is necessary for economic growth, but that hasn't stopped the government from including it under its wide umbrella of taxable income. Capital gains taxes were enacted in 1913 along with the income tax. Dividend taxes were enacted in 1936 but only lasted through 1939. They reappeared in 1954 and have persisted ever since.
Conclusion
Back in 1773, taxes sparked Americans to destroy three shiploads of British tea. And in 1791, Alexander Hamilton's proposed excise tax on alcohol was enough to prompt the Whiskey Rebellion in Pennsylvania. History is full of tax rebellions, but today, it seems like most Americans are complacent when it comes to taxes. It's no wonder we have so many of them.
The History Of Taxes In The U.S.
Amy Fontinelle, On Friday February 26, 2010, 4:22 pm EST
The plethora of taxes we pay today - federal income tax, alternative minimum tax, corporate tax, estate tax, FICA, and so on - didn't always exist. America's first citizens enjoyed few to no taxes, and taxes were added, increased and occasionally (and often temporarily) repealed to give us the tax regime we have today. Let's explore the origins of some of the more common taxes we face today.
When Were Taxes Implemented?
Most of the taxes we pay today have been around for less than half of our country's history. One of the oldest is the estate tax,which was enacted in 1797, but was then repealed and reinstituted over the years, often in response to the need to finance wars. The modern estate tax was implemented in 1916 and the gift tax came about in 1924. The federal income tax was enacted in 1913, and corporate income taxes were enacted slightly earlier, in 1909.
The 1920s and '30s saw the creation of multiple taxes. Sales taxes were enacted first in West Virginia in 1921, then in 11 more states in 1933 and 18 more states by 1940. As of 2010, Alaska, Delaware, Montana, New Hampshire and Oregon are the only states without a sales tax. President Franklin Roosevelt signed the Social Security Act in 1935 and Social Security taxes were first collected in January 1937, although no benefits were paid until January 1940.
The alternative minimum tax (AMT), a type of federal income tax, wasn't enacted until 1978. This parallel system uses a separate set of rules to calculate taxable income after allowed deductions. It was designed to prevent taxpayers from avoiding their "fair share" of taxes, but because it is not indexed to inflation, more and more taxpayers have become subjected to it over the years, resulting in escalating calls to reform or eliminate the AMT.
These are just a few of the many taxes Americans are subjected to. Others include cigarette and alcohol taxes, energy taxes, aviation taxes, property taxes, telecommunications taxes and state income taxes. The Tax Foundation calculated that in 2009, Americans on average had to work through April 11 just to earn the amount of money they would pay in taxes over the course of the year, better known as tax freedom day. (The exact date when an individual American has paid his or her tax burden for the year varies by state because of the differences in state taxes.)
Tax Rates Then and Now
Tax rates tend to change (often for the worse) from their rates at the time of their enactment - a fact Americans should consider whenever they are faced with the threat of a new tax. For example, in 1913 when the federal income tax was implemented to help finance World War I, the marginal tax rate was 1% on income of $0 to $20,000, 2% on income of $20,000 to $50,000, 3% on income of $50,000 to $75,000, 4% on income of $75,000 to $100,000, 5% on income of $100,000 to $250,000, 6% on income of $250,000 to $500,000, and 7% on income of $500,000 and up.
Tax rates were the same for everyone - there was no filing status, and there was no distinction between single taxpayers, married taxpayers filing jointly, married taxpayers filing separately and heads of household. By 2009, tax rates had increased considerably, with a top marginal tax rate of 35%. Modern tax rates also depend on filing status. (For up-to-date information about tax brackets and filing status, see the Tax Foundation's Federal Income Tax Rate History.)
"Sin" Taxes
Because cigarette and alcohol taxes are built into the prices of these products, many Americans don't even know they're paying them. Federal tobacco taxes were first enacted in 1794, but came and went over the years until 1864. That year, a box of 20 cigarettes was taxed at 0.8 cents. In 2009, the rate was $1.01 per pack.
States also tax cigarettes. In 2009, South Carolina taxed them at a low of 7 cents per pack, while Rhode Island taxed them at a high of $3.46 per pack.
Spirits, wine and beer are each taxed at different rates by both the federal and state governments. In 2008, the federal excise tax rates were $13.50 per proof gallon of spirits, $1.07 to $3.15 per gallon of wine depending on the wine's alcohol content, and $18 per 31-gallon barrel of beer. Each state sets its own tax rates for each type of alcohol. The lowest tax rate for spirits in 2009 was $1.50 per gallon in Maryland; the highest rate was $26.45 per gallon in Washington. For wine, the lowest tax rate in 2009 was 11 cents per gallon in Louisiana; the highest was $2.50 per gallon in Alaska. Beer was taxed at a low of 1.9 cents per gallon in Wyoming and a high of $1.07 per gallon in Alaska.
The government started taxing cigarettes and alcohol to pay back the debts it incurred during the Revolutionary War. However, social purposes have also long influenced the taxation of these items. The higher the tax, the more likely Americans are to be discouraged from consuming tobacco and alcohol. However, because tobacco and alcohol taxes are flat taxes, they fall disproportionately on the poor. In other words, it is mostly the poor who are discouraged from using tobacco and alcohol, because other income groups can afford to pay the higher taxes.
Gasoline
If the government taxes behavior it wants to discourage, why does it tax gasoline? After all, gasoline taxes were implemented long before the environmental movement kicked in. Federal excise taxes on gasoline were implemented in June 1932 under President Herbert Hoover as part of the Revenue Act of 1932. As its name implies, this act was designed to increase the amount of money the government had at its disposal. So you might say that the government taxes gasoline because it can.
In 1932, gas was taxed at a rate of 1 cent per gallon. By 2009, the tax had risen to 18.4 cents per gallon. State gasoline taxes tack on an additional cost, ranging from a low of 8 cents per gallon in Alaska to a high of 42.5 cents per gallon in New York.
Investments
Taxing investment income might seem particularly counterproductive since investment is necessary for economic growth, but that hasn't stopped the government from including it under its wide umbrella of taxable income. Capital gains taxes were enacted in 1913 along with the income tax. Dividend taxes were enacted in 1936 but only lasted through 1939. They reappeared in 1954 and have persisted ever since.
Conclusion
Back in 1773, taxes sparked Americans to destroy three shiploads of British tea. And in 1791, Alexander Hamilton's proposed excise tax on alcohol was enough to prompt the Whiskey Rebellion in Pennsylvania. History is full of tax rebellions, but today, it seems like most Americans are complacent when it comes to taxes. It's no wonder we have so many of them.
The History Of Taxes In The U.S.
Amy Fontinelle, On Friday February 26, 2010, 4:22 pm EST
The plethora of taxes we pay today - federal income tax, alternative minimum tax, corporate tax, estate tax, FICA, and so on - didn't always exist. America's first citizens enjoyed few to no taxes, and taxes were added, increased and occasionally (and often temporarily) repealed to give us the tax regime we have today. Let's explore the origins of some of the more common taxes we face today.
When Were Taxes Implemented?
Most of the taxes we pay today have been around for less than half of our country's history. One of the oldest is the estate tax,which was enacted in 1797, but was then repealed and reinstituted over the years, often in response to the need to finance wars. The modern estate tax was implemented in 1916 and the gift tax came about in 1924. The federal income tax was enacted in 1913, and corporate income taxes were enacted slightly earlier, in 1909.
The 1920s and '30s saw the creation of multiple taxes. Sales taxes were enacted first in West Virginia in 1921, then in 11 more states in 1933 and 18 more states by 1940. As of 2010, Alaska, Delaware, Montana, New Hampshire and Oregon are the only states without a sales tax. President Franklin Roosevelt signed the Social Security Act in 1935 and Social Security taxes were first collected in January 1937, although no benefits were paid until January 1940.
The alternative minimum tax (AMT), a type of federal income tax, wasn't enacted until 1978. This parallel system uses a separate set of rules to calculate taxable income after allowed deductions. It was designed to prevent taxpayers from avoiding their "fair share" of taxes, but because it is not indexed to inflation, more and more taxpayers have become subjected to it over the years, resulting in escalating calls to reform or eliminate the AMT.
These are just a few of the many taxes Americans are subjected to. Others include cigarette and alcohol taxes, energy taxes, aviation taxes, property taxes, telecommunications taxes and state income taxes. The Tax Foundation calculated that in 2009, Americans on average had to work through April 11 just to earn the amount of money they would pay in taxes over the course of the year, better known as tax freedom day. (The exact date when an individual American has paid his or her tax burden for the year varies by state because of the differences in state taxes.)
Tax Rates Then and Now
Tax rates tend to change (often for the worse) from their rates at the time of their enactment - a fact Americans should consider whenever they are faced with the threat of a new tax. For example, in 1913 when the federal income tax was implemented to help finance World War I, the marginal tax rate was 1% on income of $0 to $20,000, 2% on income of $20,000 to $50,000, 3% on income of $50,000 to $75,000, 4% on income of $75,000 to $100,000, 5% on income of $100,000 to $250,000, 6% on income of $250,000 to $500,000, and 7% on income of $500,000 and up.
Tax rates were the same for everyone - there was no filing status, and there was no distinction between single taxpayers, married taxpayers filing jointly, married taxpayers filing separately and heads of household. By 2009, tax rates had increased considerably, with a top marginal tax rate of 35%. Modern tax rates also depend on filing status. (For up-to-date information about tax brackets and filing status, see the Tax Foundation's Federal Income Tax Rate History.)
"Sin" Taxes
Because cigarette and alcohol taxes are built into the prices of these products, many Americans don't even know they're paying them. Federal tobacco taxes were first enacted in 1794, but came and went over the years until 1864. That year, a box of 20 cigarettes was taxed at 0.8 cents. In 2009, the rate was $1.01 per pack.
States also tax cigarettes. In 2009, South Carolina taxed them at a low of 7 cents per pack, while Rhode Island taxed them at a high of $3.46 per pack.
Spirits, wine and beer are each taxed at different rates by both the federal and state governments. In 2008, the federal excise tax rates were $13.50 per proof gallon of spirits, $1.07 to $3.15 per gallon of wine depending on the wine's alcohol content, and $18 per 31-gallon barrel of beer. Each state sets its own tax rates for each type of alcohol. The lowest tax rate for spirits in 2009 was $1.50 per gallon in Maryland; the highest rate was $26.45 per gallon in Washington. For wine, the lowest tax rate in 2009 was 11 cents per gallon in Louisiana; the highest was $2.50 per gallon in Alaska. Beer was taxed at a low of 1.9 cents per gallon in Wyoming and a high of $1.07 per gallon in Alaska.
The government started taxing cigarettes and alcohol to pay back the debts it incurred during the Revolutionary War. However, social purposes have also long influenced the taxation of these items. The higher the tax, the more likely Americans are to be discouraged from consuming tobacco and alcohol. However, because tobacco and alcohol taxes are flat taxes, they fall disproportionately on the poor. In other words, it is mostly the poor who are discouraged from using tobacco and alcohol, because other income groups can afford to pay the higher taxes.
Gasoline
If the government taxes behavior it wants to discourage, why does it tax gasoline? After all, gasoline taxes were implemented long before the environmental movement kicked in. Federal excise taxes on gasoline were implemented in June 1932 under President Herbert Hoover as part of the Revenue Act of 1932. As its name implies, this act was designed to increase the amount of money the government had at its disposal. So you might say that the government taxes gasoline because it can.
In 1932, gas was taxed at a rate of 1 cent per gallon. By 2009, the tax had risen to 18.4 cents per gallon. State gasoline taxes tack on an additional cost, ranging from a low of 8 cents per gallon in Alaska to a high of 42.5 cents per gallon in New York.
Investments
Taxing investment income might seem particularly counterproductive since investment is necessary for economic growth, but that hasn't stopped the government from including it under its wide umbrella of taxable income. Capital gains taxes were enacted in 1913 along with the income tax. Dividend taxes were enacted in 1936 but only lasted through 1939. They reappeared in 1954 and have persisted ever since.
Conclusion
Back in 1773, taxes sparked Americans to destroy three shiploads of British tea. And in 1791, Alexander Hamilton's proposed excise tax on alcohol was enough to prompt the Whiskey Rebellion in Pennsylvania. History is full of tax rebellions, but today, it seems like most Americans are complacent when it comes to taxes. It's no wonder we have so many of them.
Insurance, Utilities Lead the Way for Berkshire.
Bill Bergman, On Saturday February 27, 2010, 11:00 am EST
Berkshire Hathaway (brk.a.A) (brk.b.A) reported fourth-quarter and full-year 2009 earnings Saturday morning, which included a solid further advance in book value per share. The results were largely in line with our expectations. Solid positive results in insurance and utility operations coupled with more gains on derivative positions to lead the way, while results in the diverse, but generally economically sensitive, set of operating subsidiaries remained relatively weak.
Book value per Class A equivalent share rose at an annualized pace of 17% in the fourth quarter, a very good result after large-scale 40+% annualized increases in the second and third quarters. The chairman's letter to shareholders in the annual report included an interesting in-depth discussion of the meaning of the book value metric, noting the limitations and ambiguity underlying the reported amount but also how changes in that amount were a good yardstick to measure progress. For 2009 as a whole, book value per share rose about 20%, in line with the company's long-term average, and a significant improvement over recent years.
We like to watch operating cash flow at Berkshire, too. Berkshire's overall operating cash flow has been on a significant upward trajectory since mid-2008, despite continuing weakness in the aggregate results of the firm's collection of noninsurance subsidiaries. Berkshire has generated significant incoming premium in its insurance operations, serving as a port in the storm in recent years, and cash found its way in the door in similar ways in Berkshire's derivatives transactions. Operating cash flow continued to rise significantly in the fourth quarter, with a 35% year-over-year increase and a solid seasonally adjusted advance from the third quarter.
How about those noninsurance operating subsidiaries? They are an economically sensitive bunch and were certainly not spared from the Great Recession despite all their economic moatiness. Their operating profitability fell significantly, in aggregate, in 2008. The developing economic recovery has helped, but housing and related activity haven't picked up as significantly as they have in previous recoveries, and Berkshire's subsidiaries have a relatively outsized sensitivity to trends in that area. In fact, our Great Recession was Great in large part due to the massive downturn in housing starts, which have stabilized but remained very small in recent months.
The total revenue in Berkshire's operating subsidiaries looked pretty flat from the third quarter to the fourth quarter, on a seasonally adjusted basis, and the modest recovery earlier in 2009 appears to have lost some momentum in the fourth quarter. In turn, their operating profitability continued to trend downward. Berkshire's overall book value growth looks all the more impressive in light of the muted contribution from these fundamentally good companies, and the combination of a better recovery in their results with continued positive results in the insurance and utility operations could lead to outsized returns in 2010.
Insurance, Utilities Lead the Way for Berkshire.
Bill Bergman, On Saturday February 27, 2010, 11:00 am EST
Berkshire Hathaway (brk.a.A) (brk.b.A) reported fourth-quarter and full-year 2009 earnings Saturday morning, which included a solid further advance in book value per share. The results were largely in line with our expectations. Solid positive results in insurance and utility operations coupled with more gains on derivative positions to lead the way, while results in the diverse, but generally economically sensitive, set of operating subsidiaries remained relatively weak.
Book value per Class A equivalent share rose at an annualized pace of 17% in the fourth quarter, a very good result after large-scale 40+% annualized increases in the second and third quarters. The chairman's letter to shareholders in the annual report included an interesting in-depth discussion of the meaning of the book value metric, noting the limitations and ambiguity underlying the reported amount but also how changes in that amount were a good yardstick to measure progress. For 2009 as a whole, book value per share rose about 20%, in line with the company's long-term average, and a significant improvement over recent years.
We like to watch operating cash flow at Berkshire, too. Berkshire's overall operating cash flow has been on a significant upward trajectory since mid-2008, despite continuing weakness in the aggregate results of the firm's collection of noninsurance subsidiaries. Berkshire has generated significant incoming premium in its insurance operations, serving as a port in the storm in recent years, and cash found its way in the door in similar ways in Berkshire's derivatives transactions. Operating cash flow continued to rise significantly in the fourth quarter, with a 35% year-over-year increase and a solid seasonally adjusted advance from the third quarter.
How about those noninsurance operating subsidiaries? They are an economically sensitive bunch and were certainly not spared from the Great Recession despite all their economic moatiness. Their operating profitability fell significantly, in aggregate, in 2008. The developing economic recovery has helped, but housing and related activity haven't picked up as significantly as they have in previous recoveries, and Berkshire's subsidiaries have a relatively outsized sensitivity to trends in that area. In fact, our Great Recession was Great in large part due to the massive downturn in housing starts, which have stabilized but remained very small in recent months.
The total revenue in Berkshire's operating subsidiaries looked pretty flat from the third quarter to the fourth quarter, on a seasonally adjusted basis, and the modest recovery earlier in 2009 appears to have lost some momentum in the fourth quarter. In turn, their operating profitability continued to trend downward. Berkshire's overall book value growth looks all the more impressive in light of the muted contribution from these fundamentally good companies, and the combination of a better recovery in their results with continued positive results in the insurance and utility operations could lead to outsized returns in 2010.
Jobs report critical after mixed economic data.
Employment figures loom large as traders seek direction after string of mixed economic reports
Stephen Bernard, AP Business Writer, On Sunday February 28, 2010, 12:48 pm EST
NEW YORK (AP) -- Investors are seeking direction. Friday's report on employment could give them exactly what they want.
The Labor Department's monthly snapshot on employment has always been crucial for investors trying to figure out where the economy is headed. This month's report comes at a time when the market cannot figure out which direction it wants to go. Economic indicators domestically and around the globe are as murky as they've been in months.
Markets have alternated rallies and retreats in recent weeks -- sometimes even within a single trading session -- following fallout from European debt problems and recent reports on housing, manufacturing and consumer confidence that sent mixed signals.
On top of that, the last two weekly jobless claims reports have shown surprise jumps in people filing for unemployment for the first time. Both weeks economists had forecast declines.
The uncertainty means investors will delve deeply into the monthly employment report. Underneath headline numbers that aren't apt to improve much, traders and analysts will dissect other data from the report looking for signs that the economy is on the right path.
The report could suggest the U.S. is following Europe, where growth is almost nonexistent, or it could show that the fourth-quarter gross domestic product jump of 5.9 percent can be sustained.
"Job creation is fundamentally important," said Brett D'Arcy, chief investment officer of CBIZ Wealth Management Group. "In the end, if we create jobs, we'll have consumers with dollars in their pockets." Consumer spending accounts for about 70 percent of U.S. economic growth, making it critical to a strong recovery.
The headline numbers in Friday's report -- the unemployment rate and jobs added or lost -- will still be important. Economists polled by Thomson Reuters project the unemployment rate rose to 9.8 percent in February from 9.7 percent a month earlier.
At the peak of the recession, employers were shedding more than 700,000 jobs a month. In February, they are expected to have cut 20,000 jobs for the second straight month.
"Job losses have slowed significantly," said Arpitha Bykere, a senior analyst at Roubini Global Economics. "A recovery now hinges on hiring."
-- Underemployment: In addition to those considered "unemployed," this rate factors in workers who have given up looking for work and part-time workers who would prefer to work full-time. The current rate is 16.5 percent, meaning nearly one in six people aren't working as much as they'd like.
"A tremendous number of American families, households are affected," Len Blum, a managing partner at investment bank Westwood Capital, said. He noted that the underemployment rate paints a truer picture of just how bad the job situation is in the country.
-- Hours worked: The average number of hours worked is one of the better leading indicators in the report, analysts say. That's because current employees can only work so many hours before new staff needs to be hired. A continued rise in average hours worked would point to job creation in the coming months.
Economists forecast hours worked rose to 33.4 hours in February from 33.3 a month earlier.
-- Temporary employment: This is also considered a good indicator of which direction the unemployment rate will go in a few months. With employers still unsure about the recovery's strength, they'll add temporary or part-time workers at first if they see a surge in demand.
Temp services added 52,000 jobs in January, the fourth straight monthly gain.
Analysts say employers won't add permanent jobs, because of the high costs of salaries, benefits and training, until they are sure business has returned for good.
-- Unemployment duration: Roubini Global Economics' Bykere said more than 30 percent of unemployed people have been out of work for at least six months and half at least three months. Those signs are troubling, she said.
The longer someone is unemployed, the harder it is for them to find a new job, especially for people who have to retrain to find work in a new profession.
Germany's Merck buying Millipore for $6B plus debt.
German drug maker Merck KGaA to buy US biotech equipment maker Millipore for $6B plus debt
The Associated Press, On Sunday February 28, 2010, 8:02 pm EST
BILLERICA, Mass. (AP) -- Germany's Merck KGaA said Sunday that it will pay $6 billion in cash to buy U.S. biotech equipment maker Millipore Corp. in a move to expand its presence beyond drugs and chemicals and into the life science sector.
The deal ends more than a week of speculation over Millipore's future.
Shares of the Billerica, Mass., company soared last week after reports said lab instrument maker Thermo Fisher Scientific Inc. had made a $6 billion offer. Millipore, which supplies tests and equipment to the biotechnology industry, then confirmed that it was evaluating strategic alternatives -- including a possible sale. The company hired advisers Goldman Sachs and Cravath, Swaine & Moore LLP to help it consider its options.
Based on Millipore's 56.3 million shares outstanding at Dec. 31, Merck's $107-per-share offer is worth $6.03 billion. Including assumed debt, Merck values the deal at $7.2 billion.
"This transaction is very attractive to shareholders, customers and employees of both companies," Karl-Ludwig Kley, chairman of Merck's executive board, said in a statement. The company said the acquisition will be a strong strategic fit that allows it to expand the breadth of its business, and will create a $2.9 billion partnership in the life science sector.
Merck said that currently, its chemicals business generates around 25 percent of the company's total revenue. Following the transaction, the chemicals business will contribute 35 percent of sales.
Merck's offer marks a 50 percent premium to Millipore's $71.34 closing stock price on Feb. 19, the last trading day before takeover reports surfaced. The deal is expected to be completed in the second half of 2010.
Millipore, which has about 6,000 employees across more than 30 countries, generated sales of $1.65 billion in fiscal 2009. Merck said it will keep the company's headquarters in Billerica, combine it with Merck's U.S. chemicals headquarters and retain Millipore's senior management. Merck anticipates the combined business will create savings of $100 million (euro75 million) in the three years following the close of the deal.
Millipore shareholders still must approve the deal.
Merck, based in Darmstadt, last week reported 2009 earnings of euro366 million ($498.7 million), nearly unchanged from 2008. The company, which makes the cancer drug Erbitux, multiple sclerosis treatment Rebif and also produces liquid crystal displays for televisions and computer monitors, said revenue rose 2 percent to euro7.8 billion ($10.63 billion).
Merck said it will fund the deal with available cash and a term loan provided by Bank of America Merrill Lynch, BNP Paribas and Commerzbank. Merck plans to replace part of the facility by issuing bonds.
VSTNQ: Technical Analysis Video [02.26.10]
Visteon Corp.’s market brought together the best of both worlds on Friday’s session rewarding optimistic longs, while presenting traders with opportunity for day-trading. This video breaks down the intraday chart while introducing simple but effective trading techniques. Analysis of the weekly chart with key technical concepts follows.
Video Link: http://timelesswealth.net/ta/visteon.html
TimelessWealth.net: Market Watchlist for the week of March 1st, 2010 has been published.
To view, follow this link: http://timelesswealth.net/dailywatch.html
TimelessWealth.net: Market Watchlist for the week of March 1st, 2010 has been published.
To view, follow this link: http://timelesswealth.net/dailywatch.html
VSTNQ: Technical Analysis Video [02.26.10]
Visteon Corp.’s market brought together the best of both worlds on Friday’s session rewarding optimistic longs, while presenting traders with opportunity for day-trading. This video breaks down the intraday chart while introducing simple but effective trading techniques. Analysis of the weekly chart with key technical concepts follows.
Video Link: http://timelesswealth.net/ta/visteon.html
VSTNQ: Technical Analysis Video [02.26.10]
Visteon Corp.’s market brought together the best of both worlds on Friday’s session rewarding optimistic longs, while presenting traders with opportunity for day-trading. This video breaks down the intraday chart while introducing simple but effective trading techniques. Analysis of the weekly chart with key technical concepts follows.
Video Link: http://timelesswealth.net/ta/visteon.html
VSTNQ: Technical Analysis Video [02.26.10]
Visteon Corp.’s market brought together the best of both worlds on Friday’s session rewarding optimistic longs, while presenting traders with opportunity for day-trading. This video breaks down the intraday chart while introducing simple but effective trading techniques. Analysis of the weekly chart with key technical concepts follows.
Video Link: http://timelesswealth.net/ta/visteon.html
Article: "The Pre-Merger Run-up: Where you can cut yourself a piece of the profits".
Read here: http://timelesswealth.net/
New Publication: "The Pre-Merger Run-up: Where you can cut yourself a piece of the profits".
Read here: http://timelesswealth.net/
slbrown, I can only hope that my work benefits one or more investor(s) or potential investor(s). My market watchlist on TimelessWealth.net will be revised to include Nutra Pharma.
Thank you.
On watch sir.
NPHC: Technical Analysis Video [02.15.10]
One of the more encouraging signs in any market, on the ‘long’ side of things, is ‘the break’ or ‘breakout’ on strength. Following a ‘primary’ ascending triangle breakout, Nutra Pharma’s market may be poised for a ‘secondary’ ascending triangle breakout, and the test of a several-month high. This video will briefly discuss market psychology, outline and validate key technical concepts, as well as provide insight on Nutra Pharma’s market going forward.
Link to video: http://timelesswealth.net/ta/nphc.html
NPHC: Technical Analysis Video [02.15.10]
One of the more encouraging signs in any market, on the ‘long’ side of things, is ‘the break’ or ‘breakout’ on strength. Following a ‘primary’ ascending triangle breakout, Nutra Pharma’s market may be poised for a ‘secondary’ ascending triangle breakout, and the test of a several-month high. This video will briefly discuss market psychology, outline and validate key technical concepts, as well as provide insight on Nutra Pharma’s market going forward.
Link to video: http://timelesswealth.net/ta/nphc.html
Attempting to break out of the six-week downtrend beautifully. How are you folks holding up here?
SKGO: Technical Analysis Video [02.09.10]
Skybridge Technology Group, Inc. (OTC:SKGO) Chart Analysis.
Link to video: http://timelesswealth.net/ta/skgo-02092010.html
LuckyMe77, for whatever reason the video that I had uploaded to youtube appears in poorer quality than on my site, where it is hosted in flash format.
SKGO: Technical Analysis Video [02.09.10]
Skybridge Technology Group, Inc. (OTC:SKGO) Chart Analysis.
Link to video: http://timelesswealth.net/ta/skgo-02092010.html
SKGO: Technical Analysis Video [02.09.10]
Skybridge Technology Group, Inc. (OTC:SKGO) Chart Analysis.
Link to video: http://timelesswealth.net/ta/skgo-02092010.html
Technical Analysis Video: BBI, CVM, ATHX [01.31.10]
Three securities demonstrating appealing technical patterns: Blockbuster, Inc. (NYSE: BBI), Cel-Science Corp. (NYSE AMEX: CVM), Athersys, Inc. (NASDAQ: ATHX).
Link to video: http://timelesswealth.net/ta/athx-bbi-cvm.html
Technical Analysis Video: Three Securities to make headway in the equity market. [01.31.10]
Three securities demonstrating appealing technical patterns: Blockbuster, Inc. (NYSE: BBI), Cel-Science Corp. (NYSE AMEX: CVM), Athersys, Inc. (NASDAQ: ATHX).
Link to video: http://timelesswealth.net/ta/athx-bbi-cvm.html
My error premarketmoney. I had read it over on that thread as well and had overlooked the author. I apologize.
premarketmoney, I've read your post a handful of times now and am still struggling to piece together any logical order of thought to it. When I see this posted:
"Hope this Helpz. Sry U Got Skamm-ed. Nekkid Shorty Winz tha Hole ChipStakk there nn He Thanks U for Tha Donashun."
...I wonder if a child constructed your post?
Awesome. I will look forward to it.
Likewise, uranium-pinto-beans.
Rightly so, Walker.
ALN: American Lorain Corporation Obtains Product Placements in Two Marquee Supermarket Chains in Shanghai.
JUNAN COUNTY, China, Jan 18, 2010 - American Lorain Corporation (NYSE AMEX: ALN) ("American Lorain" or the "Company"), an international processed snack foods company based in Shandong Province, People's Republic of China ("PRC"), today announced that it has begun selling products through A.S. Watson Group ("Watson") and Shanghai Jiadeli Supermarket Group ("Jiadeli").
Under the supply agreement with Watson, American Lorain will distribute Sweetheart Chestnut(R) and chestnut kernels to Watson(R)'s 300 plus stores in Shanghai. Watson(R) convenience stores are found throughout Asia and China in stand-alone convenience store locations and airport duty free shops. American Lorain has shipped an initial allocation of Sweetheart(R) Chestnuts and Lorain-branded chestnut kernels to Watson's distribution center in Shanghai for delivery and stocking in Watson's 300 stores in Shanghai.
American Lorain will also start selling its convenience food products in over 100 Jiadeli stores in Shanghai. Jiadeli is a supermarket chain with more than 100 stores in Shanghai. Like many supermarket chains worldwide, Jiadeli maintains a snack food isle where American Lorain's chestnut product and snack food product will be placed on retail for Jiadeli consumers. American Lorain initiated the supplier agreement with Jiadeli with its first shipment of goods, valued at $100,000.
The Company estimates that initial cooperation with Watson and Jiadeli will bring to the Company approximately $1 million in revenue for fiscal year 2010. Negotiations are underway with Watson and Jiadeli to determine on the distribution of more products of American Lorain which could bring additional sales to the Company in fiscal 2010 and beyond.
"We are very pleased to announce the initial cooperation with two retail supermarket chains in Shanghai," commented Mr. CHEN Si, CEO of American Lorain Corporation. "In addition to the earnings contribution, entering Shanghai retail market is a significant milestone of our strategy to strengthen domestic sales channels and expand our distribution network. We will continue to access into new marketplace and bring in new customers, which will provide significant growth driver for us as we leverage our production capacity, respected brand name and expanding distribution network to capitalize on the growth opportunity in China's consumer sector."
About Watson
A.S. Watson Group is an international retail and manufacturing business with operations in 34 markets worldwide. The Group operates over 8,400 retail stores running the gamut from health & beauty, luxury perfumeries & cosmetics to food, electronics, fine wine and airport retail arms. Watson is a member of the world renowned Hong Kong-based conglomerate Hutchison Whampoa Limited. For more information please visit: http://www.aswatson.com .
About Jiadeli
The group was founded in 1998 in Shanghai and currently operates about 150 supermarkets in China, of which around 100 are in Shanghai. For more information please visit: http://www.jiadeli.com.cn .
American Lorain Corporation Obtains Product Placements in Two Marquee Supermarket Chains in Shanghai.
JUNAN COUNTY, China, Jan 18, 2010 -- American Lorain Corporation (NYSE AMEX: ALN) ("American Lorain" or the "Company"), an international processed snack foods company based in Shandong Province, People's Republic of China ("PRC"), today announced that it has begun selling products through A.S. Watson Group ("Watson") and Shanghai Jiadeli Supermarket Group ("Jiadeli").
Under the supply agreement with Watson, American Lorain will distribute Sweetheart Chestnut(R) and chestnut kernels to Watson(R)'s 300 plus stores in Shanghai. Watson(R) convenience stores are found throughout Asia and China in stand-alone convenience store locations and airport duty free shops. American Lorain has shipped an initial allocation of Sweetheart(R) Chestnuts and Lorain-branded chestnut kernels to Watson's distribution center in Shanghai for delivery and stocking in Watson's 300 stores in Shanghai.
American Lorain will also start selling its convenience food products in over 100 Jiadeli stores in Shanghai. Jiadeli is a supermarket chain with more than 100 stores in Shanghai. Like many supermarket chains worldwide, Jiadeli maintains a snack food isle where American Lorain's chestnut product and snack food product will be placed on retail for Jiadeli consumers. American Lorain initiated the supplier agreement with Jiadeli with its first shipment of goods, valued at $100,000.
The Company estimates that initial cooperation with Watson and Jiadeli will bring to the Company approximately $1 million in revenue for fiscal year 2010. Negotiations are underway with Watson and Jiadeli to determine on the distribution of more products of American Lorain which could bring additional sales to the Company in fiscal 2010 and beyond.
"We are very pleased to announce the initial cooperation with two retail supermarket chains in Shanghai," commented Mr. CHEN Si, CEO of American Lorain Corporation. "In addition to the earnings contribution, entering Shanghai retail market is a significant milestone of our strategy to strengthen domestic sales channels and expand our distribution network. We will continue to access into new marketplace and bring in new customers, which will provide significant growth driver for us as we leverage our production capacity, respected brand name and expanding distribution network to capitalize on the growth opportunity in China's consumer sector."
About Watson
A.S. Watson Group is an international retail and manufacturing business with operations in 34 markets worldwide. The Group operates over 8,400 retail stores running the gamut from health & beauty, luxury perfumeries & cosmetics to food, electronics, fine wine and airport retail arms. Watson is a member of the world renowned Hong Kong-based conglomerate Hutchison Whampoa Limited. For more information please visit: http://www.aswatson.com .
About Jiadeli
The group was founded in 1998 in Shanghai and currently operates about 150 supermarkets in China, of which around 100 are in Shanghai. For more information please visit: http://www.jiadeli.com.cn .
Excellent list sir. Anything in particular that interests you on the 'big boards' front?
RTWW: Strong due diligence piece on Riptide Worldwide, Inc.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45589877
Two year, weekly chart.
RTWW: Strong due diligence piece on Riptide Worldwide, Inc.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45589877
Two year, weekly chart.
I would think it is premature to make a call of that nature at this point in time. Time will tell.
That would be an inaccurate assumption, imho.