Welcome to Finance World

May 2, 2013

Minister backs Big Move after earlier questioning it

Filed under: Business, Homes — Tags: , , , — DoctorBusiness @ 8:21 pm

Ontario Transportation Minister Glen Murray insists he’s sticking to the Big Move.

“The plan is sound. There’s not a single project we’re revisiting,” said Murray in response to a newspaper report that suggested the minister may be reconsidering some of the projects in Metrolinx’s regional transportation plan.

The government has no plans to change any of the lines already in progress, including light rail lines on Eglinton, Sheppard, Finch and the Scarborough RT, Murray told the Star.

Those are firm and there are no plans to re-open the agreement between Metrolinx, the TTC and Toronto to re-tool any of them.

The second wave of projects, however, is still being developed, he said.

While there’s no question of changing the projects in Metrolinx’s “second wave” of transit plans either — including a downtown relief line for Toronto, an LRT on Hurontario in Mississauga and the extension of the Yonge subway to Richmond Hill — the lines must be constantly reassessed to make sure they are serving the broader goals of the regional plan, said Murray.

“We’re looking at how these projects work individually and how they work together to reduce congestion and that’s part of the ongoing planning process we undertake,” he said. “We try to make sure that by the time the shovels are in the ground, they’re well-defined and we’ve met the objectives of the plan.”

“Before we’re in the ground with the relief line we’ll make sure we’ve done the proper planning,” said Murray.

His remarks come as the Liberal government and Metrolinx are trying to persuade Toronto region residents that they will need to pay taxes or tolls toward a $2 billion annual regional transit expansion in order to combat the growing gridlock on area roads.

The report suggested that Murray believes the planning process needs more rigour before the Big Move is considered final. It cites the minister’s interest in connecting transit along Eglinton in Toronto to lines in Mississauga and Brampton and, extending them to job centres around the airport.

Murray denied any suggestion that the government is reconsidering a bus rapid transit line in the west end.

TTC chair Karen Stintz attributed Murray’s musings to a new minister applying fresh eyes to the file.

“He’s looking at the Big Move in a new way as the minister and might find some areas that could be reconsidered or re-adjusted,” said Stintz.

But she suggested those would be tweaks, not significant changes to major lines.

Discussions about revenue tools to pay for regional transit should continue, said the city councillor.

“With regard to the next wave of projects, we believe the plan is just about right,” said Metrolinx in a statement on Thursday, which noted that $16 billion of provincially funded transit is already underway in the Toronto region.

Source

April 6, 2013

Boeing making 787 test flight

Filed under: Homes, Uncategorized — Tags: , , , — DoctorBusiness @ 2:01 pm

Boeing said its flight of a 787 on Friday will wrap up the testing for its fix of the battery problems that have kept the plane grounded.

The flight took off at 10:39 a.m. Pacific time from Paine Field in Everett, Wash., according to FlightAware.

The flight is the certification test for a new battery system. The test was “to demonstrate that the new system performs as intended during normal and non-normal flight conditions,” Boeing spokesman Marc Birtel said in a written statement.

The 787 Dreamliner has been grounded since mid-January because of smoldering batteries, including a fire on the ground in Boston. Boeing has designed what it says is a fix, including more heat insulation and a battery box designed so that any meltdown of the lithium-ion battery will vent the hot gases outside of the plane.

On March 12, the Federal Aviation Administration approved Boeing’s plan to test the redesigned battery system, and Friday’s flight test was the final part of that plan. The flight was to demonstrate the battery fix for the FAA.

The same plane, built for LOT Polish Airlines, flew on Monday in a pre-delivery check flight, where pilots did things like raise and lower the landing gear and ran backup systems no fax payday loans.

The FAA will still need to approve the results and certify the battery system before airlines can fly 787s again. Fifty 787s owned by eight airlines have been grounded worldwide. Boeing has said it will install the battery fix on those planes first, and then on the 787s it has continued to build while the planes have been grounded.

The root cause of the battery problems still isn’t known. Boeing executives have said that other airplane problems have been fixed without understanding exactly what caused them. The big question for Boeing in the weeks ahead will be whether the FAA agrees. The FAA has not laid out a timetable for a final decision about the fix.

The National Transportation Safety Board, which investigates aviation incidents but doesn’t have enforcement power, plans a two-day hearing on the 787 incidents beginning April 23.

Boeing Co. shares had declined earlier in the day, but after the test was announced they were up by $1.11 at $86.06 in afternoon trading.

Source

March 31, 2013

Maine Zumba teacher accused of using studio as prostitution front pleads guilty to 20 counts

Filed under: Homes, marketing — Tags: , , , — DoctorBusiness @ 5:57 am

PORTLAND, MAINE—A dance instructor accused of using her Zumba fitness studio as a front for prostitution pleaded guilty Friday to 20 counts in a scandal that captivated a quiet seaside town.

The agreement that followed a second day of plea negotiations on Friday spares Alexis Wright from the prospect of a high-profile trial featuring sex videos, exhibitionism and pornography. Prosecutors will recommend a jail sentence of 10 months when she’s sentenced on May 31.

Wright quietly answered “guilty” 20 times when the judge read the counts, which include engaging in prostitution, promotion of prostitution, conspiracy, tax evasion and theft by deception.

“We’re very satisfied with it. It’s an appropriate outcome, given the gravity of her actions,” Assistant Attorney General Darcy Mitchell said after the brief court hearing.

The 30-year-old Wright was accused of conspiring with insurance agent Mark Strong Sr. to run a prostitution business in which she kept detailed records indicating she made $150,000 over an 18-month period. She was also accused of using a hidden camera to record sex acts without her clients’ knowledge.

She was originally charged with 106 counts. All the counts in the agreement were misdemeanours, including three counts relating to welfare and tax fraud that were reduced from felonies.

Strong, 57, of Thomaston, Maine, was convicted this month of 13 counts related to promotion of prostitution and sentenced to 20 days in jail. He was originally charged with 59 counts.

The scandal became a sensation following reports that Wright had at least 150 clients, leading to a guessing game of who might be named publicly in the coastal town of Kennebunk, a community better known for its beaches and sea captains’ homes than for crime cash till payday. Lawyers who have seen the client list say it included some prominent names. Those who have been charged so far include a former mayor, a high school hockey coach, a minister, a lawyer and a firefighter.

Working together, Strong and Wright represented an unusual pairing.

Wright had attended college classes and ran dance classes for the local parks and recreation program before opening her studio in Kennebunk. But she was also engaging in paid-sex acts in the studio, in her apartment and in her office, law enforcement officials said.

Overseeing the operation and watching the sex acts live on his office computer 160 kilometres up the coast was Strong, a married father of two who ran a successful insurance agency in Thomaston.

It came as no surprise that Wright would seek a plea agreement because evidence presented in Strong’s trial was so overwhelming. A video played for jurors showed Wright engaging in sex acts with a man who then inquired about her rate before leaving $250 cash on her massage table.

After the man left, the video showed Wright pocketing the money.

There was plenty of electronic evidence because the two kept in touch via text and email and because Wright videotaped the clients and Strong watched live via Skype. Videos showed them speaking openly of ledgers, payments and scheduling.

Source

March 24, 2013

Ashley Smith inquest: Did difficult inmate belong in a jail or a psychiatric facility?

Filed under: Homes, economics — Tags: , , , — DoctorBusiness @ 8:17 pm

Did Ashley Smith belong in a jail or a mental health facility?

It’s a pressing question that arose particularly during Smith’s time in the adult correctional system, and one that echoes throughout the ongoing coroner’s inquest into the 19-year-old’s death in a jail cell on Oct. 19, 2007.

In his 33-page, June 2008 report into the Smith case, “A Preventable Death,” Correctional Investigator Howard Sapers asserts that “most’’ of the senior managers and front-line Correctional Service of Canada staff responsible for Smith “lacked the specialized mental health training required to adequately assess or address’’ her needs.

Kim Pate, national director of the Canadian Association of Elizabeth Fry Societies, an advocacy group for women and girls in the justice system, and which has standing at the Smith inquest, recently told reporters in an interview that Smith shouldn’t have been in the prison system, but rather a mental health facility.

Some of the guards in prisons where Smith stayed voiced the same views, according to evidence at her inquest.

Sapers, who acts as an ombudsman for federal offenders, noted that management plans for Smith at the Grand Valley prison for women in Kitchener, where she choked herself to death in a segregation cell by tying a ligature around her neck, “were largely security-focused’’ and “lacked mental health components.’’

Smith presented significant security challenges as an inmate. She was kept in segregation during most of her three years in the youth system in New Brunswick, beginning in 2003, and went straight into segregation when she entered the adult prison system in late 2006.

The rationale for segregation was that Smith was at high risk of harming herself and others. She assaulted staff and hurt herself by scratching, banging her head on the floor, or tying ligatures around her neck. The latter was especially problematic because although she told some jail staff she enjoyed the sensation of asphyxiating, and while some staff felt she tied the ligatures to draw attention from guards, she was often despondent, talking and writing frequently about wanting to kill herself.

One prison staffer testifying at her inquest likened her drawn-out time in segregation to a Catch-22 situation — her confinement in solitary contributed to her severely acting out, but that same acting out kept her in segregation.

In the mental health context, views about the best treatment for Smith sometimes differed.

The best example of this occurred during her stay at the Nova Institution prison for women in Nova Scotia, where she was sent to serve her federal sentence in late 2006. At Nova, two mental health providers came up with vastly different evaluations and treatment recommendations for her within a one-day span.

That happened in mid-December 2006. At the time, Smith was causing a commotion at Nova, frustrating guards by smearing her feces in her cell, and other “maladaptive behaviours.’’ She wanted to be transferred to another institution.

Dr. Jeffrey Penn, a psychiatrist who saw Smith on Dec. 15, 2006, at Nova, described her his way: “She openly admits that she has some, but little capacity for remorse, often enjoying hurting others (sadistic) and also gets gratification in hurting herself (masochistic).’’

Penn later wrote: “She shared that even with consistent positive reinforcement, she just gets bored with her good behaviour and has to act out. She also cannot tolerate any prolonged lack of attention — has to periodically act out to get any kind of attention, generally negative.’’

He noted that Smith was at high risk for suicide.

Penn, who is set to testify when Smith’s inquest resumes Monday in Toronto, referred to her as a “fearful tyrannical child’’ who could not accept authority or limits, noting Ashley wasn’t making progress at the time — she was “deteriorating’’ in fact — and that morale among prison staff was low as a result.

Having diagnosed her as exhibiting a personality disorder, with borderline paranoid features, Penn recommended that Smith be transferred to a secure facility with a 24-hour behaviour modification program, something Nova didn’t have.

Days later she was sent to the Regional Psychiatric Centre in Saskatoon — a secure forensic centre that is part prison, part mental health facility — a move Smith volunteered for.

(Nova did seek psychiatric beds elsewhere in the province for Smith, the inquest has previously heard, but none was found at that time.)

Meanwhile, on Dec. 14, 2006, the day before Penn’s report, Dr. Allister Webster, then a psychologist at Nova, wrote a “management plan’’ for Smith based on his belief she could be treated at the jail.

He wrote, in part: “While Ms. Smith appears to be of average intelligence, her presentation is frequently consistent with that of a young adolescent.’’

In outlining his plan, Webster later wrote: “It remains my clinical opinion that Ms. Smith can be effectively managed and assisted towards the adoption of pro-social behaviour.’’

Further on he stated: “Her engagement in appropriate behaviour will result in opportunity to meet with (prison) staff, as her risk for aggression towards others will become reduced.’’ Webster recommended that prison staff “engage with her in a respectful and professional manner,’’ adding “we must model the behaviours that we want from her.’’

During the inquest Webster testified that he left for vacation after writing his management plan for Smith, and was surprised to learn upon his return that she’d been transferred to the Saskatoon centre.

Webster told the inquest he felt “undermined’’ by the decision to ship Smith out, though he has a high regard for Dr. Penn’s professionalism and judgment.

Webster also told the inquest he had concerns that the transfer negatively impacted the “therapeutic relationship’’ Smith was developing with him and others, including nurses, who were trying to help her at Nova.

Smith’s move to the Saskatoon centre was one of 17 institutional transfers she endured in the space of less than a year.

In his “Preventable Death” report, Sapers says this series of transfers “eroded Smith’s trust, escalated her acting-out behaviours’’ and made it increasingly more difficult for the correctional service to manage her. Attempts to get a full psychological assessment of her were thwarted by the constant moves, Sapers notes.

Smith stayed at the Saskatoon facility from Dec. 20, 2006, until April 12, 2007, when she was on the move again. Stops included the Grand Valley Prison in Kitchener, back to Nova in the summer of 2007, and finally Grand Valley again, where she died that fall in her segregation cell, right in front of her guards.

The inquest hasn’t yet been told the full story about her time at the Saskatoon facility, but the inquiry has heard it didn’t end well. She was moved out for her own safety.

Smith’s mother, Coralee Smith, went to the Saskatoon centre in February 2007 to visit her daughter and found her “reserved, stiff and withdrawn.’’

“She talked about how it was kind of scary in there,’’ Coralee Smith told the inquest. Ashley Smith later complained to her mother about being assaulted there.

A security supervisor at the Saskatoon facility was charged after Ashley Smith died. The allegations arose over an incident where Smith was restrained because of concerns she might harm herself. A nurse on duty testified she saw the man strike Smith, but a judge later acquitted him, ruling the nurse’s evidence was not credible.

Source

October 22, 2012

Google’s stock falls after grim earnings come out early

Filed under: Homes, money — Tags: , , , — DoctorBusiness @ 3:56 am

Google accidentally announced its third-quarter earnings about four hours early, and it wasn’t good news.

The company missed analysts’ estimates on both sales and profit. , Fortune 500) shares slumped on the news before being halted for about 3 hours. The stock resumed about 40 minutes before the end of the trading day and closed down 8%.

The accidentally early regulatory filing included placeholder language like “PENDING LARRY QUOTE.” (Within minutes, a satiric Twitter feed popped up for @PendingLarry, who quipped: “To be fair, we released our earnings yesterday afternoon on Google Plus.”)

Google cast the blame at financial printer , Fortune 500), which it said filed the draft documents to the SEC “without authorization.”

Google released an official report about three hours after the trigger-finger one, filling in the blank quote with a bland statement from CEO Larry Page. Its financial information was unchanged.

In their forecasts, Wall Street analysts exclude the advertising revenue that Google shares with partners, a figure known as traffic acquisition costs. Without those sales, the company reported revenue of $11.3 billion, which missed the $11.8 billion median forecast from analysts polled by Thomson Reuters.

Earnings per share came in at $9.03, sharply missing the $10.65 that analysts expected.

Among the banner bad news: The amount that Google’s advertising partners pay per click continued to drop dramatically, falling 15% over the year.

Page still termed the quarter “strong” in Google’s press release, noting that sales rose 45% over the year.

“I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices,” he added online payday loans.

The quarter was a rough one for employees at Motorola, the mobile company Google acquired in May. Google said in August that it would cut Motorola’s staff by 4,000. Those cuts are already taking effect: The total number of Google employees fell by about 1,000 over the quarter, to around 53,500 full-time staffers.

Motorola generated sales of nearly $2.6 billion during the quarter, but posted an operating loss of $527 million. That loss includes severance and restructuring expenses. Google also blamed unfavorable foreign exchange rates for denting its results.

The company paid an effective tax rate of 22% in the third quarter.

Page spoke Thursday afternoon on a post-earnings conference call with analysts — which wasn’t a given. Before this week, Page had not participated in a public event since problems with his vocal cords surfaced several months ago. Google announced in June that Page had “lost his voice” and would skip the company’s developer conference, its quarterly earnings call and other events.

Page kicked off the call with an introductory statement and fielded several analysts’ questions, but he sounded terribly hoarse. He spoke somewhat more slowly than usual, as if it were difficult or painful for him. He noted that he was “still hoarse,” and apologized for the “scramble” after the premature earnings announcement.

Page also spoke at Google’s Zeitgeist conference with its business partners on Tuesday. Fortune noted he did not answer a reporter’s question about his health, replying simply that he was “here and talking.”

Source

October 12, 2012

M&A drought not letting up

Filed under: Homes, online — Tags: , , , — DoctorBusiness @ 4:28 am

What should have been the year of the mega-mergers is turning out to be a bust, with M&A activity on pace for its slowest year since 2009.

Why? Chief executives and corporate boards are worried about the U.S. fiscal cliff, Europe’s debt crisis, a global growth slowdown and a host of other issues.

“This business has always been about CEO and board confidence,” said Mark Shafir, co head of global mergers and acquisitions at , Fortune 500). “If you are uncertain about how well your business will do in the next six, nine or twelve months, it tends to dampen enthusiasm for going out and making deals.”

Typically, a hot stock market (the S&P 500 is up 14% year to date), availability of cheap corporate debt, and record levels of cash sitting on corporate balance sheets would be the perfect recipe for aggressive dealmaking.

“Over the long-term, we’ve almost always seen that the stock market and the M&A market are highly correlated,” said Jeff Raich, managing director and co-founder of investment bank Moelis & Co.

But this year, global M&A activity is down 15% from a year earlier, according to Dealogic data through Sept. 30.

“People keep hoping that improvement in the equity market will be a precursor to more deals, but we’re not seeing them coming in large quantities,” Raich said.

Raich and several other investment bankers say they expect few so-called mega-deals, typically ones that top $10 billion, to be announced in the next few months.

In fact, what would have been the largest deal of 2012, a $45 billion tie-up between European aerospace and defense companies ) and ) didn’t win support from shareholders and was called off this week.

It’s not all doom and gloom.

The oil and gas industry has been a standout this year, with $222.6 billion of deals completed during the first three quarters, according to Dealogic. That’s up 12% from last year.

Low natural gas prices have been the biggest driver behind that surge, said Phil Weiss, a senior energy analyst at Argus Research. Earlier this year, the drop in natural gas prices forced , Fortune 500) to unload assets to pay off its burgeoning debt.

Another hot area is Asia: Chinese and Japanese firms have bought a record number of overseas companies, also mostly in the oil and gas sector.

One of the largest Chinese deals this year is ) $15 billion proposed acquisition of Canadian oil and gas exploration firm ), but that still needs to be approved by Canadian regulators.

And banks could emerge relatively unscathed. Typically, M&A moves hand in hand with lending but this year, low interest rates have prompted companies to refinance debt and take out new loans at a record pace.

So, while , Fortune 500) July prediction for an uptick in M&A activity hasn’t happened, the bank has managed to retain the number one spot as top M&A advisor with a 22.3% share of all global deals.

, Fortune 500), which kicks off bank earnings Friday, and , Fortune 500) took the second and third spots respectively through the first three quarters of 2012, according to Dealogic.

Investment bankers are hopeful that once some of the economic uncertainty clears up, companies will start making deals again. And in typical fashion, no one wants to be left behind so all it will take is one or two big deals to heat things up.

“The one positive now is that, in the past, when things turn in M&A, they turn very quickly,” said Citi’s Shafir.

Source

September 27, 2012

Nearly one-in-five households have student loans

Filed under: Gold, Homes — Tags: , , , — DoctorBusiness @ 2:56 pm

A record number of American households have student loan debt.

Some 19% of households had student loans in 2010, up from 15% just three years earlier, according to a new report from the Pew Research Center released Wednesday.

Student debt has exploded in recent years as more people attend college, more turn to debt to finance it, and more take out bigger loans while in school, said Richard Fry, a senior economist at Pew who authored the report. This is bucking the trend of Americans shedding debt during the Great Recession and its aftermath.

“In the age of deleveraging, student loans are one form of rising debt,” he said.

On average, borrowers owed $26,682 in 2010, up 14.3% from three years earlier and more than double what they owed in 1995. But while stories abound of people mired in six-figure debt, they are the exception, Fry said. Only 4% owe more than $100,000.

In total, student loan debt is approaching $1 trillion, according to a separate Federal Reserve Bank of New York report.

Student debt levels are rising across the board, but they are growing the fastest for the nation’s poorest and most affluent, Fry said free 3-in-1 credit report. The poorest fifth owed 13% of the outstanding debt in 2010, up from 11% three years earlier, even though this group is less likely than richer Americans to attend college. And the wealthiest households were on the hook for 31% of the student debt owed, up from 28%.

The richest share of households, not surprisingly, is better able to handle the burden. College debt accounted for only 3.3% of their household income. But student loan debt ate up nearly a quarter of the earnings of the poorest fifth, the study found.

Some 44% of student loans are owed by those under age 35, with another 26% owed by those between 35 and 44. Senior citizens don’t fully escape either, although they accounted for just 2% of the outstanding student loan debt.

Recent grads with college debt may fall into the lower income categories, especially since it’s harder for them to find jobs. So they may struggle for a while to pay back their loans.

“They are well-educated, but not yet making killer salaries,” Fry said about those just out of school. “For a while, they will be burdened.”

Source

August 7, 2012

Michigan to lay off 400 unemployment workers

Filed under: Gold, Homes — Tags: , , , — DoctorBusiness @ 3:28 am

Many jobless claims workers in the state of Michigan will soon be filing for unemployment themselves.

About 400 state workers who process unemployment claims are losing their jobs thanks to Michigan’s improving economy.

The state had beefed up its staff with more than 175 temporary workers in early 2009, when weekly jobless claims topped 500,000 and the unemployment rate was on its way to a 14.2% peak.

But the revival of the auto industry has turned around Michigan’s fortunes — the state’s job growth outpaced the nation’s in 2011. The unemployment rate has steadily declined to its current 8.6%. And jobless claims have plummeted to 187,000.

Manufacturing is my future

When the unemployment rate drops, so does the federal support for administering benefits. Without those funds, Michigan will have to let go of the temporary workers, as well as 225 permanent staffers, totaling about one-fifth of the Department of Licensing and Regulatory Affairs’ staff.

"Unfortunately for them, the economy has gotten better," said Mario Morrow, spokesman for the department. "It’s a good news/bad news situation."

Michigan is not the only state laying off or reassigning workers who staffed unemployment benefits call centers and processed claims personal loans for bad credit. With the economy recovering, about half the nation’s states are dealing with reduced federal funding, forcing them to make staffing changes.

Also, President Obama’s 2009 stimulus act doled out even more money to help cover states’ increased unemployment benefits caseloads. But those funds have pretty much dried up.

So even states where the jobless rates are still high are forced to make changes.

In California, which has the nation’s third-highest unemployment rate at 10.7%, the state has shifted unemployment workers to disability insurance and tax processing after losing federal support.

Rhode Island, meanwhile, laid off 65 workers, most of them on temporary assignment, after running out of stimulus funds. This comes even as the state still battles a 10.9% unemployment rate, the second-highest in the nation.

The state would need $4.6 million to keep them on for another year, said Laura Hart, spokeswoman for the Department of Labor and Training.

"We couldn’t stretch it any longer," she said of the additional federal administrative funds. 

Source

July 21, 2012

China Third-Quarter Growth May Slow to 7.4 Percent, Adviser Says - Bloomberg

Filed under: Homes, Uncategorized — Tags: , , , — DoctorBusiness @ 9:28 am

China

July 7, 2012

Vietnam Regulator Tells Lenders to Cut Rates on Loans Further - Bloomberg

Filed under: Homes, money — Tags: , , , — DoctorBusiness @ 3:08 am

Vietnam

Newer Posts »

Powered by WordPress