headline
stringlengths 4
359
| text
stringlengths 112
4.99k
| relevance
stringclasses 2
values | label
int32 0
1
|
|---|---|---|---|
Board of Contributors: At Sea With Surpluses | For at least 30 years the U.S. has had, or at least professed, one fiscal policy: Reduce the deficit, ideally to zero, preferably within five years.</br></br>I was never crazy about this policy. I never attached significance to the number "zero." The only thing one could say about zero was that it was $100 billion less than $100 billion and $100 billion more than negative $100 billion. This becomes obvious if you think of all the different plausible ways there are to define and measure budget surpluses and deficits.</br></br>In the early Reagan years, when the deficit was large, I was not among those most eager to reduce it. Although I believed that the deficit was retarding growth by absorbing private saving that would have been productively invested, I thought that we were a very rich country and had more important things to do than speed up growth. I was a strong supporter of the defense buildup and feared that the deficit argument would be used to restrain it.</br></br>Grand Goal in Sight</br></br>I changed my mind recently as the deficit declined; this year, the grand goal of zero seems finally achieved. In fact, I came to believe that balancing the budget was not enough and that we needed to get to a surplus. What changed my mind was the ever-clearer prospect that we would run huge deficits in the 21st century as baby boomers claimed their retirement and Medicare benefits. Although I was not one who wanted to maximize future growth, I would not like to see the growth of per capita income turn negative, and I was afraid that would happen if the federal deficit was so large as to absorb all private saving. | no | 0 |
Apartment Builder Optimistic: Despite Interest Rates | .No.immediate effects on rcfe-| Gross said, however, the idential building are expectekuiiding industry welcomes</br></br>Jenard Gross, president ofpsts. But he added that build-the National Apartment Assoj^g activity will not be</br></br>The high cost of money, onomic uncertainties and a ortage of qualified person-1 has atrophied our industry d a great deal of our 'strength has withered away,Û the Houston apartment.owner said.</br></br>Gross also pointed out that some suppliers have gone out i of business, especially lumber mills on the West Coast and marginal operators in the home building field.</br></br>ÛÏWhen you lop off 200,000 to 300,000 housing units from previous outputs, someone gets hurts and the pain extends from the contractor alt | no | 0 |
Small stock focus: SEC's NASD case gives fresh spark to calls for stronger market overhaul | The heat applied last week by the Securities and Exchange Commission to the Nasdaq Stock Market is reigniting some criticism that the market needs a much stronger overhaul than what the SEC wants.</br></br>The SEC last week brought a disciplinary case against the National Association of Securities Dealers, the parent and self-regulator of the Nasdaq Stock Market, for failing to clamp down on dealers who engaged in anticompetitive, anti-investor behavior.</br></br>The SEC said NASD failed to stop some dealers from keeping artificially wide the spread between the prices at which they offer to buy and sell stocks; failed to keep dealers from reporting trades late -- a practice that obscures the true market for certain stocks; failed to discipline dealers who refused to honor their quoted prices to investors; and failed to halt market makers who coordinated with other dealers to set prices for their own advantage instead of for that of customers.</br></br>"Nasdaq market makers have engaged in a variety of abusive practices to suppress competition and mislead customers," the SEC wrote in its extensive report, which capped two years of investigation into practices on the market.</br></br>The NASD settled the case without admitting or denying wrongdoing and agreed to some 14 reforms, including ponying up $100 million over five years to increase its surveillance of dealers and strengthen its rules. | no | 0 |
Rocky Mountain High Taxes | Halloween arrived early in Colorado this year as supporters of a pro-tax ballot initiative rolled out scare tactics to dramatize the allegedly dire consequences of a "no" vote at the polls this Tuesday. We hope Colorado voters look to see what's hiding behind the fright costumes.</br></br>Advocates of what amounts to a $4 billion tax hike have deluged the airwaves with threats that senior citizens will go without their lunches, schools and state parks will close, college tuitions will soar, and programs to prevent poisoning, air pollution, ski lift accidents and teenage suicide will shut down. One TV ad shows the popular mayor of Denver jumping out of a plane as a metaphor for the carnage that awaits Colorado should the tax hike fail. (Miraculously, he survived.)</br></br>At stake here is the fight over the future of the famous Colorado Taxpayer Bill of Rights law, or Tabor, as it is now commonly called. Tabor was approved by voters in 1992 to end the tax and spending cycle of the 1970s and 1980s. It restricts increases in the state budget to the rate of population growth plus inflation. Any tax revenue collections above that cap are returned to taxpayers.</br></br>Some $3.3 billion, well over $1,000 per taxpayer, was returned to Coloradans in just the first five years. But when the high-tech bubble popped in 2000 and 2001, Colorado was hit hard and general fund revenues fell by 15% in two years. Now Republican Governor Bill Owens has joined hands with unions and the business community to call for a five-year "time out" on Tabor so state agencies can replenish their budgets. Taxpayer groups worry that once the state is freed from Tabor's fiscal discipline, it will never be restored.</br></br>This battle of Tabor has gained national attention because the law has become a template for at least two dozen other states seeking to restrain their own stampeding taxes. Colorado is a worthy role model: The tax cap is one of the main reasons that economists cite for the state moving to 10 percentage points above the national average in personal-income growth in the period after Tabor, from five points below it in the years before Tabor. | no | 0 |
Bill to Seek Taxes From Fannie Mae; Exemption Unfair, D.C. Official Says | D.C. Council member John Ray (D-At Large) said yesterday that he will introduce legislation requiring mortgage giant Fannie Mae to pay $300 million annually in District income taxes, a move that could wipe out the city's budget deficit.</br></br>Ray said he decided to push the measure after a series of articles about Fannie Mae in The Washington Post prompted a flood of reaction from D.C. residents, who were outraged that the most profitable company in the city pays no local income taxes. Ray said that the articles and the public reaction caused council members to reconsider the matter and that D.C. Council Chairman David A. Clarke (D) asked him to introduce the bill.</br></br>Until now, the council's focus amid the city's worst budget crisis ever has been on cutting costs, including slashing social services, reducing government employment and transferring control of the Lorton Correctional Complex to the federal government. The prospect of taxing Fannie Mae raises the possibility that part of the solution to the city's problems may lie in additional tax dollars.</br></br>Fannie Mae, which employs 2,252 people in the District, has threatened to leave the city if any new tax is imposed because the company would be at a competitive disadvantage with its chief rival, the McLean-based Federal Home Loan Mortgage Corp. (Freddie Mac). Ray said his bill would diminish Fannie Mae's incentive to move by recommending that Congress give Virginia the right to tax Freddie Mac.</br></br>Fannie Mae has formidable political clout in Congress and lobbied hard to prevent the D.C. Council from publicly debating and voting on the tax issue last year. "Fannie Mae believes our congressional charter serves American home buyers by preventing individual jurisdictions from raising the cost of home ownership through the imposition of local taxes," company spokesman David Jeffers said yesterday. | no | 0 |
With Rise in Violence Come Fear and Anger; In Southeast, People Hope for Action, Finally | For more than two decades, Fort Dupont Dwellings has housed more rats, snakes and crack addicts than tenants, and Stoddert Terrace has been a haven for drug dealing, crime and violence. No one seemed to care, residents said.</br></br>But the Sept. 25 shooting of a 4-year-old girl at Weatherless School in Greenway has focused attention on the community one block off East Capitol Street in Southeast Washington.</br></br>The residents in this area say city officials have not heeded their cries for help, and community leaders say they have been unable to push for change because of their own internal disputes.</br></br>Local leaders say they are ready to put aside their differences. Homeowners say they plan to reach out more to renters, and city officials say they are standing by with resources to make it all come together.</br></br>"Citizen participation is essential," said D.C. Council member Kevin P. Chavous (D-Ward 7). "The only way the government will respond is if they know the people have reached a point in which they are fed up." | no | 0 |
Tokyo equities bruised by Japanese rate fears; steady U.S. rates spur some bourses to records | TOKYO -- Japan's stock market slid 2.4% Wednesday, ignoring what should have been good news -- a weaker yen -- and focusing instead on fears that the Bank of Japan may soon increase interest rates.</br></br>The Nikkei 225-stock index lost 490.85 points to 19841.98. That followed a 156.92-month. In trading Thursday, the Nikkei fell 138.61 points to close the morning session at 19703.37. Wednesday's first-section volume was estimated at 430 million shares, down from 437.3 million shares Tuesday. Losers overwhelmed gainers, 886-245. The Tokyo Stock Price Index, or Topix, of all first-section issues tumbled 27.57 points, or 1.8%, to 1475.99.</br></br>Stocks dropped even as the dollar rose to 114.35 yen in late Tokyo trading from 112.55 a day earlier. Normally, a drop in the yen is good news for Japanese stocks, because if that weakness persists, it can make Japanese goods less expensive in dollar terms overseas. Investors are keen to see a slightly weaker yen these days, after its surge against the dollar; only three weeks ago, the dollar traded at 127.37 yen.</br></br>But Tokyo investors Wednesday were paying more attention to rumors that Japanese interest rates might soon risesomething that could hurt Japanese stocks by attracting money into fixed-income instruments and by raising borrowing costs for Japanese companies. The banking sector lost 2.1% to foreign selling. Securities firms shed 1.9%.</br></br>A Japanese news report Tuesday said Toshihiko Fukui, vice governor of Japan's central bank, was "not uncomfortable" with a suggestion by Japan's trade unions that interest rates should rise. Stocks fell on the report, despite the announcement by the Bank of Japan later in the day that Mr. Fukui had merely shown "understanding" for the request, while emphasizing the need for a cautious approach. | no | 0 |
Allianz Vows to Raise Dividend | FRANKFURT--Allianz SE said it will increase its dividend-payout ratio for this year so that shareholders aren't penalized for an expected decline in net profit that the insurer said doesn't adequately reflect its performance.</br></br>Chief Financial Officer Oliver BÌ_te told reporters and analysts the ratio will be higher than the usual 40% of net profit, as the company's operating earnings are stable, even though the company now expects 2011 net profit to be "well below" last year's figure of [euro]5.05 billion ($6.87 billion).</br></br>Mr. BÌ_te said net profit is vulnerable to negative non-operating losses from volatile markets. He declined to be more specific. Allianz paid a dividend of [euro]4.50 a share for 2010.</br></br>The company, Europe's largest primary insurer by market capitalization, said it nonetheless remains on track to reach its targeted full-year operating profit of between [euro]7.5 billion and [euro]8.5 billion. The company considers operating profit to a more effective measure of its performance than net profit, and third-quarter operating profit fell less than analysts had expected.</br></br>Allianz shares climbed 5.6%, or [euro]4.05, to [euro]76.25, as investors focused on that part of its earnings. | no | 0 |
County Is Becoming More Urban, Survey Says | Loudoun County is changing from a bedroom community to one where people can work where they live, according to new figures released by the county's economic development department.</br></br>"We are able to provide a lot of jobs for our residents, and they don't have to travel that far in the county or even out of the county to get to work," said Larry Rosenstrauch, the department's director. "Now we're becoming more of an urbanized place with a broad range of services and jobs for people. It gives people more family time, more free time and more opportunity to spend their dollars in Loudoun County."</br></br>Rosenstrauch's comments were based on his department's 2003 Growth Summary, a synopsis of demographic and economic trends in the county. The annual analysis is used by residents, businesses and policymakers to evaluate the county's development and to plan for the future.</br></br>The report shows that 5,501 jobs were created in Loudoun last year. The figures echo those recently released by the Bureau of Labor Statistics, which said Loudoun's job-growth rate of 5.4 percent for the third quarter of 2003 was the second-highest rate of the nation's largest counties and compares with a national decline of 0.4 percent.</br></br>"Some of the people are coming for jobs, and some of the jobs are coming for people," Rosenstrauch said. | no | 0 |
Stocks, Bonds Advance as Fed Keeps Its Word | NOW INVESTORS can stop worrying about the Federal Reserve -- and start worrying about corporate earnings.</br></br>Fed policy makers yesterday did exactly what the market expected them to do: They raised their target short-term interest rate by a quarter point, the first increase in four years, and repeated their intention to be "measured" with future increases.</br></br>Stocks reacted with mild gains, and the bond market, which is driven more heavily than stocks by Fed interest-rate policy, celebrated with a sharp uptick.</br></br>"The Federal Reserve has a new policy of transparency and has kept its word," wrote Wells Fargo economist Sung Won Sohn in a report to clients.</br></br>The Dow Jones Industrial Average rose 22.05 points, or 0.21%, to 10435.48 -- leaving it virtually unchanged both for the quarter and for the full year. Investors now are wondering whether second-quarter profit reports, which will be streaming out this month, will feature the overall gains of more than 20% that analysts are forecasting. | no | 0 |
Pluses and Minuses Regarding Visas for Foreign Ph.D.s | Gordon Crovitz's call for more high-tech immigrants repeats an argument we frequently see on the pages of the Journal ( Information Age, Oct. 1). Yet engineering work is shifting from developed countries to developing countries for a reason. Engineering, when done properly, follows international standards in proceduralizing the work. When engineering work is proceduralized, it can be outsourced, just as assembly work is procedural work that is more cost effectively done in low-wage developing countries. Importing millions of engineers from developing countries isn't going to change the macroeconomic laws that compel this outsourcing. It will worsen our economic plight because it works against our comparative advantage of integrating microeconomic behaviors into efficient macroeconomic function.</br></br>Most promising developing countries cannot grow past low GDP per capita levels because their microeconomic behavior tends toward collectivism, cronyism, mistrust of others, safety nets, corruption, dishonesty and envious slamming of those who are richer or more powerful. To improve our GDP, we need people who believe in individualism, merit, trust in financial transactions/investing, honesty, hard work and grit. Those microeconomic behaviors are the only means of boosting our economic function beyond the high GDP per capita barrier that is unreachable for almost all countries.</br></br>Tom Fix</br></br>Bellevue, Wash.</br></br>I am not opposed to letting skilled immigrants get a green card for working in the U.S. However, as the president of a high-tech company (six Ph.D.s among 17 employees), there is the risk of hiring too many of any one group, which will create a company within the company. It happened to my company. At one point I had eight Chinese employees working for us. It wasn't manageable--there were the Chinese and the others and no communication between the groups. Fortunately, most of them left on their own. | no | 0 |
Hearing Set Nov. 4 On IB's Challenge | The Federal Reserve Board said yesterday that it has set Nov. 4 as the -date 'for a hearing into International Bank's challenge to the FedÛªs determination that the Washington-based firm must register as a bank holding company.</br></br>In August, the Federal Reserve Board ruled that International Bank exercises effective control over Financial General Bankshares, Inc., a bank holding company, and therefore is itself a bank holding company.</br></br>In its August ruling, the Fed gave International Bank 180 days to register as a bank holding company and divest itself either of Financial GeneralÛÓwhich has interests in more than 25 banksÛÓor its nonbanking interests.</br></br>The Fed, in a statement yesterday, said the "dispute over control of Financial General by International Bank dates back to 1866, when International Bank admitted exercising control over Financial General and undertook to divest itself of control according to a board order. The board maintains that International Bank has not terminated control.Û</br></br>The Fed contends that International Bank owns 22.7 per cent of FGÛªs stock outright and controls the voting of much more. The Feci noted, in its Aug. 1 ruling, that not only do IB and FG | no | 0 |
Lending Club Shares Surge in Market Debut; Shares of Online Lending Platform Close 56% Above IPO Price | Shares of Lending Club Corp surged 56% from their initial public offering price Thursday--a strong debut for the first publicly traded peer-to-peer lending company.</br></br>That first-day pop left Lending Club at a valuation more in line with high-tech firms than the banks and other financial companies it is seeking to displace.</br></br>58 million shares for $15 apiece, above the $12 to $14 a share range that was outlined in a filing with regulators.</br></br>Thursday morning, more than 100 employees, directors, investors and other guests cheered on the floor of the New York Stock Exchange as shares opened at $24.75. The stock quickly rose to a high of $25.44 and later closed at $23.43.</br></br>In the crowd, all wearing matching red jackets, were founder and Chief Executive Renaud Laplanche and Morgan Stanley's former chief executive, John Mack, who is on Lending Club's board. | no | 0 |
Martin Favors Tax Bid: No Outright 'Deal' Suggested Lessening of Demand Pressures | Federal Reserve Board Chairman William McChesney Martin yesterday put his stamp of -approval on President JohnsonÛªs request for-a 6 per cent surtax. ÛÏIt has my full support,Û Martin told the Overseas Bankers Club in London.</br></br>In doing so, Martin for the first time officially took note that the Fed has been following an easier money policy sipce late last year.</br></br>And while, as is custom, he did not predict the future course of Fed policy, there ÐÊwas every implication inÛª his remarks that the current easier money posture would continue in effect for a while.</br></br>Administration officials have made clear that in deciding to ask for the tax increase that Martin yesterday labeled ÛÏprudent,Û there has been full consultation with the Fed.</br></br>fro one suggests an outright ÛÏdeal,Û in which the Fed agreed to an easier money policy, in exchange for long-delayed tax Action on the part of the President. | no | 0 |
Mark Emerges as Strongest Currency; Analysts See No Change in Its Position | NEW YORK -- The mark has emerged as the world's strongest currency in recent weeks, and analysts see no reason for a change in its position anytime soon.</br></br>Its outlook remains favorable because of West Germany's pre-eminent economic position in central Europe, the Bundesbank's tight monetary policy and the prospect of credit-easing moves in the U.S.</br></br>Mark-buying did grow cautious late last week as the currency bumped into an important resistance point. But analysts say it's hard to identify a potential top.</br></br>"The mark is king of the currencies and probably will be for some time," says Steve Chronowitz, director of futures research at Smith Barney, Harris Upham & Co. He says he is still bullish on the mark even though "the market will take a breather occasionally."</br></br>Since early November, when the Berlin Wall began crumbling, the mark has risen about 8% against the dollar. | no | 0 |
Dow Reaches 4-Year Low; Cyprus Cited | NEW YORK, Aug. 19 (UPI)ÛÓRenewed violence on Cyprus unsettled the stock market today, driving the Dow Jones industrial average to a four-year low on the New York Stock Exchange. Trading was light.</br></br>The dow fell 9.70 to 721.84, its lowest level since Aug. 13, 1970, when the blue chip indicator closed at 716.66.</br></br>Several hours before the market opened, a mob of Geek Cypriots attacked the U.S. Embassy in Nicosia, killing the U.S. ambasasdor to Cyprus, Roger Davies. Although Secretary of State Henry Kissinger later told a news conference he had received assurances from Turkey she will abide by a cease-fire on the island, investors continued to worry about the anti-American sentiment that led to the ambassadorÛªs death and has prompted the new Greek government to withdraw its troops from NATO.</br></br>Standard & PoorÛªs 500-stock index also hit a 1974 low or 74.57, off 1.10. The price of an average common share on the NYSE lost 39 cents as the NYSE index lost 0.60 to 39.16.</br></br>Glamors and blue chips posted the biggest losses. With the exception of the aircrafts, all other major stock groups weakened. | yes | 1 |
Options Signal Wake-Up Call On Stock Risk | Rocky Road isn't just an ice-cream flavor any more. It's also a good description of what options traders think lies in store for the stock market.</br></br>As stocks return to record levels, the smooth sailing that characterized stock trading at the end of 2006 and early 2007 isn't likely to return, these traders are signaling by demanding considerably more for options on the Standard & Poor's 500-stock index than they did earlier this year.</br></br>That worry has in turn appeared in readings of the Chicago Board Options Exchange volatility index, or VIX.</br></br>The VIX is derived from options on the S&P 500 and reflects traders' willingness to pay for the protection that these offer. The VIX tends to fall as stocks rise, indicating that worry about stock-market turbulence is abating.</br></br>But on Friday, with stocks racing back toward record levels, the VIX also rose. It gained 0.3, or 2.2%, to 13.94. That's sharply above the low levels at which the index sat for much of late 2006 and early 2007, says Chris Johnson, chief investment strategist at Johnson Research Group. | no | 0 |
DIGEST | President Clinton will renew most-favored-nation trade privileges for China despite frictions over human rights and other problems, said Anthony Lake, his national security adviser. The president has until June 3 to announce whether he will renew China's trade privileges. Lake said he did not expect a major fight from the Republican-led Congress on renewal of the privileges, which allow China to export its goods to the United States under the lowest possible tariffs.</br></br>UUNet Technologies' stock shot up $12 in its first day of trading on the Nasdaq stock market to close at $26. The Fairfax company's 4.725 million shares were initially priced at $14 each. UUNet is one of the country's biggest providers of access to the Internet. Stocks of two other newly public technology companies -- computer software company Maxis, and chipmaker Nexgen, also soared on their first day on the market.</br></br>Irwin "Sonny" Bloch, a longtime financial radio talk show host, was accused by federal regulators of selling unregistered securities and misleading his listeners about their value, thus defrauding investors of nearly $21 million. Bloch, 58, whose programs are heard on 170 stations, was named in a 35-count criminal case in Newark and a civil case filed by the SEC in Manhattan federal court. His lawyer, Paul Goldberger, said Bloch moved to the Dominican Republic before charges were brought, and was "not guilty."</br></br>Interest rates on 52-week Treasury bills fell at auction to the lowest level in more than eight months. The average discount rate was 5.54 percent, down from 5.90 percent at the last auction on April 27. The bills will carry an equivalent coupon interest rate of 5.88 percent, with each $10,000 in face value selling for $9,439.80.</br></br>Office Depot of Delray Beach, Fla., the largest office supply retailer in North America, said Mark Begelman resigned as president and chief operating officer, although he will continue as a director. Chairman and CEO David Fuente will assume the additional position of president for the immediate future. | no | 0 |
Business and Finance | OPEC LAUNCHED a major effort to regain control of world oil markets and force prices upward. Twelve of the 13 members agreed to cut production and to sell their oil at fixed prices averaging $18 a barrel. Analysts were split on OPEC's ability to succeed with the new strategy.</br></br>Consumer prices edged up 0.3% in November, suggesting inflation remains well under control. More than a third of the increase reflected higher costs for cars and auto financing. The overall inflation rate, now about 1%, is expected to be 3%-4% next year.</br></br>---</br></br>Christmas sales are running below the modest expectations of many retailers. The softness raises the prospect of widespread price cutting during these final shopping days.</br></br>--- | yes | 1 |
Blue Chips, Glamors Retreat Under Additional Bad News | The General Services Administration yesterday rejected all bids for silver for the second consecutive week at its sixth auction of silver from the National Strategic Defense stockpile*</br></br>The GSA offered 1.25 million troy ounces yesterday and will offer the same amount at its next weekly tender next Wednesday.</br></br>The GSA received nine bids totaling 2.563 million ounces, with the highest bid at $8,125 an ounce and the lowest at $7,921.</br></br>Since the weekly auctions began, The GSA has offered 7.5 million ounces from the stockpile and sold only 2 million</br></br>Over $500 Million In Assets Weekend Hours / Cash Card Servioes 18 Convenient Branches Suburban MarylandÛªs Largest Savings and Loan | no | 0 |
Senate Debates Tax Cut, House to Get Rights Bill: Opponents Clash ... | The Senate opened debate on the AdministrationÛªs $11.6-billion tax-reduction bill yesterday with, a warning from opponents of possible inflation and a plea from supporters that the bill be passed quickly to avert a recession.</br></br>Chairman Harry F. Byrd (D-Va.) of the Finance Committee, an announced foe of the'bill, told the Senate nothing would please him more than to vote for a tax cut but that he could not support one that risked ÛÏmassive debt and inflation.Û</br></br>Sen. Russell B. Long (D-La.), named floor manager of the measure by Byrd, argued urgently, like Presidents Johnson and Kennedy before him, that the big tax cut is essential to maintain an expanding economy. Without such a stimulus, he said, the Nation risks an economic downturn at the end of the year.</br></br>"It wonÛªt solve the problem of unemployment and depressed areas,Û said Long. ÛÏIt wonÛªt solve the problem of poverty in America. What it will do is bring our economy to a point that we can do something about those problems.Û</br></br>The drive for swift passage opened with about a dozen Senators on the floor. No votes are contemplate^ today, but a stretch-out schedule was planned for next week aimed at a final vote by Feb. 7 or 8. Senate Majority Leader Mike Mansfield (D-Mont.) has announced that the Senate will meet at 9 a.m. starting Monday and sit late in the Jevening. ' - | no | 0 |
Fed Survey Notes Easing In Retailing ---- Warm Weather Blamed; Discount Stores Show Strong Growth in Sales | WASHINGTON -- Christmas may not be as merry as some retailers hoped.</br></br>As the economy slowed in several parts of the country, retail sales in the past six weeks were weaker than retailers expected, according to the Federal Reserve's latest survey of regional economic conditions.</br></br>There were some bright spots: Discount department stores showed strong growth in sales. And on the day after Thanksgiving, regarded as the biggest shopping day of the year, sales rose modestly from a year earlier. But in the Boston area, for example, most retailers reported that sales were "clearly slowing," the report said. And "Christmas has started slowly" in and around San Francisco, where sales were mixed. In the Atlanta district, sales were flat.</br></br>Some retailers were concerned that consumers may pull back during the holiday season, the report said. But others are counting on more traditional weather conditions to arrive and drive shoppers from the parks back into the malls.</br></br>Retailers also said the tight labor market is making it difficult to recruit and maintain qualified workers for the holiday rush. Some retailers in the Cleveland district said they are paying seasonal employees as much as 25% more than last year. | no | 0 |
Likely OPEC Cutback Helps Push Oil Prices Up | Oil prices are beginning to recover from low levels that produced inflation relief and record-low pump prices, and so are oil industry stock prices, which contributed to the run-up in the Dow Jones industrial average yesterday.</br></br>The rally, which has pushed crude oil prices up 33 percent from a 12-year low of $10.72 in December, resulted from different developments, according to oil industry experts. The prospect of further cuts in production when the Organization of Petroleum Exporting Companies meets on March 23, a reduction in inventories and heavy demand for heating oil in Germany in advance of an increase in tariffs have all fed the trend.</br></br>Yesterday the rally stalled and prices fell slightly, with April crude oil futures on the New York Mercantile Exchange dropping 38 cents to $14.31 a barrel. But many analysts continue to believe that the signs point to a production cutback by OPEC nations, which were meeting in preliminary sessions yesterday and today in Amsterdam.</br></br>In the past, many oil-producing nations doubted Saudi Arabia's commitment to reducing production, several analysts said. But meetings over the past 10 days between Saudi Arabia and Iran have begun to remove those doubts, said Roger Diwan, director of global oil markets for the D.C.-based Petroleum Finance Corp.</br></br>But industry analyst Constantine Fliakos of Merrill Lynch & Co. said that Venezuela, which also is a member of OPEC, is under pressure from its unions to maintain production at current levels, which might threaten an agreement. | no | 0 |
Turning Cardboard Into Cash;These Are Boom Days For Baseball Cards | Through a potent combination of capitalism, commercialism and fanaticism, what was once considered a big hobby for little kids-collecting baseball cards of the day's best and most popular players-has been transformed into an industry complete with price wars, intricate marketing strategy and underhanded tactics.</br></br>It's come a long way since turn-of-the century cards were printed by tobacco companies, featuring only select players. The market has become so saturated, cards of most anyone connected with baseball are available: These days you even can buy cards of major league umpires.</br></br>T & M Sports Inc. produces complete sets of the major leagues' men in blue, including a card of Bob Engel, who retired after being sentenced to three years' probation and 40 hours of community service for taking 4,180 baseball cards from a store in Bakersfield, Calif.</br></br>There also are minor league baseball card sets. In fact, for $25 you can buy the 1983 Lynchburg Mets set, which features a young Dwight Gooden; in 1983 the set sold for about $3. For about $80 you can walk off with a Gooden rookie card from 1984. A 1986 Donruss card of Jose Canseco runs about $110.</br></br>And for the special low price of $2 million, you could be the proud owner of a creased, uncut strip of five "T-206" baseball cards from 1910-including a Honus Wagner card, of which only about 40 exist. (Legend has it that Wagner objected to his image being packaged with cigarettes-this was before the days of the bubble gum pack-and demanded the card be withdrawn.) "Sure, we've ruined their hobby," Alan Rosen, one of the biggest baseball card dealers in the nation, told the Wall Street Journal. "But isn't this what America is all about?" | no | 0 |
Anti-Inflation Package Presentation Delayed: Carter Warns He'll Veto Bills Overrunning Budget | The White House warned Congress yesterday that President Carter will begin vetoing legislation that overshoots his budget as part of his new anti-inflation strategy.</br></br>Press secretary Jody Powell told reporters at a briefing that the presidentÛªs rejection of a bonus-pay bill for military medical personnel on Tuesday was intended as a signal that Carter would not tolerate budget-busting.</br></br>ÛÏHe will continue to use his veto whenever necessary.Û Powell said. The press secretary also lambasted a House subcommittee for voting yesterdy to reject CarterÛªs request for a $100 million saving in health outlays.</br></br>The administrationÛªs tough new stance came as the White House continued to delay final decisions on CarterÛªs new anti-inflation package, calling off an expected announcement before a joint session of Congress tonight.</br></br>Officials said late yesterday Carter still had not approved the major elements of the proposal, which his top economic advisers have been wrestling with for more than two weeks. | yes | 1 |
Stocks Score Moodest Rise In Quiet Deals | rIJEW YORK, Feb. 18 Wide-swinging individual issues gathered in a lot of attention today in a rising stock market.</br></br>; The market moved over_ a one-point range for the most part and closed moderately higher on balance, but some -- The Associated Press average of 60 stocks gained 50 cents at $3.14.00. It was up 20 cents yesterday. Most of the gain was centered in the industrial component which advanced 90 cents. The rails and utilities each were up 20 cents.</br></br>3,500,000 shares, one of the slower days of the past month. YesterdayÛªs total came to 1,740,-000 shares.</br></br>American Woolen issues were hard hit. The company reported a net loss of around nine and a half million dollars for last year. The preference stock fell 6% at 79 and touched a low of 75%. The preferred lost 3Y* at 81%. The common was down % at 16%.</br></br>Southern Pacific was at the top of the most active list off % at 41% after directors declared the regular dividend of 75 cents. | no | 0 |
GNP Declines; Inflation Rate Plunges to 6%.: GNP Falls 1.9% in Quarter | The nation's output of goods and services, squeezed by persistently high interest rates, fell at a 1.9 percent seasonally adjusted annual rate in the second quarter, the Commerce Department reported yesterday. -.; 1</br></br>The inflation rate also dropped sharply from a 9.8 percent annual rate in the first quarter to only 6 percent-in the second, the department said. Food and energy prices rose much less rapidly than in the first quarter. With economic activity essentially flat since January and the high level of interest rates helping to push down many sensitive commodity prices, the rate of inflation as mea.-sured by the GNP deflator was at its lowest level in three years.</br></br>- Most forecasters, including those in the Reagan administration, expect no pickup in the economy until late this year or early in 1982, and some believe the second quarter was the opening phase of what would be the nationÛªs second recession in two years.</br></br>In updating its forecast last week in connection with the midyear budget review, the administration declared, ÛÏLittle or no real output growth is expected during the remainder of the year.Û</br></br>Also as part of that forecast, the Reagan economists predicted that the unemployment rate, which was -7.3 percent in June, would average 7.7 percent in the fourth quarter. | no | 0 |
Goodlings Amok; A Common Thread in Bush's Failings | You might think that the two of these have nothing in common save the happenstance that both are the subject of devastating new reports: Goodling about the stomach-turning politicization of the Justice Department; the deficit about the stomach-turning state of the federal treasury.</br></br>But the linkage goes beyond the adjective. The ousted Goodling and the lingering deficit are twin manifestations of the Bush administration's overarching contempt for government and blind adherence to ideology.</br></br>This administration will leave office having trashed the place -- and I'm not talking about a few "W's" pried loose from White House computer keyboards by the exiting Clinton crew. I'm referring to the myriad ways in which this administration, dismissive of the role of government, abused the enterprise it was entrusted with overseeing.</br></br>My favorite sentence in the Goodling report sums up the hiring practices in the department's supposedly nonpartisan career ranks: "Tell Brad he can hire one more good American."</br></br>This was the response by Goodling, who served as Justice's liaison with the White House, to a request from Bradley Schlozman, the interim U.S. attorney in Kansas City, Mo., to bring aboard a new prosecutor. "Good American" is Goodling's code for "Republican." | no | 0 |
Feather Your Nest Egg | With Congress sniffing at civil service and Social Security benefits, federal workers who don't adopt a do-it-yourself savings plan may spend their golden years in a rented room dining on markdowns from the dented-can section of the supermarket.</br></br>A General Accounting Office report in the works will warn that many feds no longer can count on civil service retirement benefits to provide them with an income that will even begin to maintain their current standard of living.</br></br>The study, requested by Rep. Constance A. Morella (R-Md.) and Del. Eleanor Holmes Norton (D-D.C.), looks at the "replacement rate" of income that federal retirees can expect. Many financial planners say retirees will need replacement income ranging from 60 percent to 80 percent of their final salary to live comfortably. The idea is that retired people still eat, wear clothes, take vacations and buy cars.</br></br>Most workers hired since the mid-1980s are under the new Federal Employees Retirement System, or FERS. Those hired before are under the old Civil Service Retirement System, or CSRS. CSRS provides a benefit that was indexed to inflation and based on the employee's salary and length of service. Workers retiring at 55 with 30 years of service will get a starting retirement benefit equal to just over 53 percent of their final salary. Civil service benefits are less generous under FERS because employees also qualify for Social Security.</br></br>Both plans have an optional Thrift Savings Plan. It permits workers to invest pretax income in stock, bond or Treasury funds. The Treasury fund (G-fund) is unique. It is guaranteed by the government and has returned 7 percent to 9 percent annually since inception. Both the stock and bond funds have outperformed the G-fund over time, but both are subject to market pressures, and they are not guaranteed like the G-fund. | no | 0 |
Investing in Funds & ETFS: A Monthly Analysis --- Mixing It Up: Good Market for Actively Managed Funds? --- This adviser believes stock-picking managers are poised for improved performance vs. indexers | The current stock-market environment favors so-called active fund managers, who pick individual stocks in an attempt to beat broad market indexes, says Owen Murray, an investment adviser in Houston.</br></br>Mr. Murray says actively managed funds generally struggled in 2011 and to some extent in 2012, as stocks tended to move in lock step with macroeconomic news.</br></br>But the "market as a whole is becoming desensitized to these macro risks," says Mr. Murray, director of investments at Horizon Advisors LLC. A case in point: Markets reacted sharply in 2011 to fears that the U.S. debt ceiling wouldn't be raised, but when a similar possibility seemed evident recently, stocks barely moved.</br></br>Also, "stock valuations are getting pricier," he says, "so as an investor you'd want to focus on companies that have more financial strength" rather than owning the broad market.</br></br>In this column, we feature model portfolios of mutual funds and exchange-traded funds. Horizon Advisors was founded in 1999 by the co-founders of Houston accounting firm Maddox Thomson & Associates. Horizon currently manages around $220 million, mainly for individuals. | no | 0 |
More Job Cuts Urged for France And Germany --- McKinsey Suggests Moves Are Needed If Industries Are to Boost Efficiency | PARIS -- The recent uproar over a Renault SA plant closing in Belgium may be only the beginning.</br></br>Thousands more jobs may have to be cut if such industries as autos, telecommunications and banking are to become as efficient in France and Germany as they are in the U.S. and Japan, according to an analysis of Europe's two largest economies.</br></br>The McKinsey & Co. review suggests that government regulations in France and Germany have slowed economic growth, increased unemployment and have often backfired -- failing to create even the social benefits regulators intended.</br></br>To an extent, the report states the obvious: High minimum wages, state regulations and stunted capital markets have retarded growth rates on both sides of the Rhine. The report also suggests that in some cases, worse things are yet to come.</br></br>The auto sector, it says, is suffering because French and German barriers on the number of Japanese cars imported into their domestic markets have delayed necessary restructuring. | no | 0 |
Several Banks Show Rebound From Deficits --- Lower Loan-Loss Expenses, Other Factors Revived Profits in Third Quarter --- A Wall Street Journal News Roundup | Earnings at several major banks rebounded from the heavy losses in the second quarter that resulted from industrywide increases in loan-loss reserves.</br></br>Sharply lower loan-loss provisions, tax benefits and some one-time gains helped to buoy third-quarter earnings rises at the banks, particularly Chicago-based Continental Illinois Corp., where earnings rose 46% from a year earlier. Jacksonville, Fla.-based Barnett Banks Inc. and New York-based Bank of New York Co. both reported record earnings. Boston-based Bank of New England's profit rose 8.4%.</br></br>The major exception to the improved outlook was New York-based Chemical New York Corp., the nation's fourth-largest bank holding company, which reported a quarterly loss for costs associated with the elimination of 2,100 jobs in its Chemical Bank unit.</br></br>Securities analysts, however, remain concerned about basic loan demand. Brent Erensel of Dean Witter Reynolds Inc. noted: "Lending volume generally isn't robust. Margins are down because of the new tax law and the suspension of interest payments by Brazil." On the other hand, he said, loan portfolio quality is improving, and banks are getting a better grip on controlling expenses.</br></br>James McDermott of Keefe, Bruyette & Woods Inc. said: "Based on what we are seeing at Chemical and elsewhere, clearly some banks are still in the throes of restructuring. When you strip things away, you find expenses remain high and margins are thinner." | yes | 1 |
Remember When The Landlord Was Your Bitter Enemy? --- When Houses Fail to Sell, Owners Take On Tenants; It Turns Nice Folk Nasty | Last year, Barbara Aultman gave up trying to sell her Indianapolis home and rented it instead.</br></br>"I wanted to be the best landlady on the face of the earth," recalls Ms. Aultman, a community-development specialist. "All I wanted was my rent on time. I was willing to bend over backward to make them comfortable."</br></br>For the first month, she did: When her tenants -- two women recently out of the military -- demanded to be let out of the lease because of a water stain on the floor, she says she removed the stain and offered to tear up the lease. When they complained the carpet smelled of cats, she had the carpet deodorized and offered to split the cost of new carpeting.</br></br>But when they began refusing entry to brokers trying to sell the house and let the lawn reach threshing height, her patience ran out. She ordered them out.</br></br>They changed the locks. | no | 0 |
Strong Growth In Productivity Posted by U.S. --- Annual Rate in 4th Quarter Revised Upward to 2.9% For Non-Farm Business | WASHINGTON -- Non-farm productivity grew at a seasonally adjusted 2.9% annual rate in the fourth quarter of 1984, exceeding the 1.7% rate estimated initially, the Labor Department said.</br></br>But despite the strong fourth-quarter growth, the productivity gain for all of 1984 was 2.7%, lower than the 3.1% growth rate the department first reported. The department said it erred in its preliminary report by underestimating the number of hours worked in one industrial sector.</br></br>While the revised 2.7% growth rate was lower than the robust 3.5% record rate in 1983, it far exceeded the average annual growth rate of 0.8% in the non-farm sector that prevailed from 1973 to 1983.</br></br>During 1984, output in the non-farm sector grew a revised 8.6%, the biggest jump since 1950. Hours worked rose a revised 5.7%, the largest gain since the department started recording productivity in 1947. Unit labor costs grew a modest 1.4% in the year, the same as in 1983, largely due to modest compensation gains.</br></br>In January, the department had said its estimate of 3.1% non-farm productivity growth rate reflected an 8.5% increase in output and a 5.2% growth rate in hours worked. | no | 0 |
Apple Sees Outlays Of $200 Million For This Fiscal Year | Apple Computer Inc., in a bid to increase its retail presence and boost market share, said it plans about $200 million in capital expenditures in the current fiscal year.</br></br>According to the Cupertino, Calif., computer maker's annual report filed with the Securities and Exchange Commission, Apple's capital expenditure for fiscal 2002 will go toward replacing existing capital assets, improving its corporate infrastructure and developing more Apple-branded retail stores.</br></br>Apple, which launched 27 of its own retail stores across the country this year, devoted about $92 million to the initiative during its fiscal 2001 ended Sept. 30, out of total captial spending of $232 million, according to the filing. More Apple stores are being planned for fiscal 2002, the filing states, but didn't specify how many.</br></br>Apple's total capital-expenditure plans, while down from a year earlier, underline its effort to continue reaching out to customers through company-owned stores. The computer maker, which has world-wide market share of about 5%, has long maintained that customers need to feel and touch its Macintosh systems in order to fully appreciate the products.</br></br>Since Apple opened its first stores in May 2001, the company has followed a model of locating stores in high-traffic locations such as urban shopping districts and malls. In addition to selling its own computers, Apple's stores also carry a variety of third-party software and devices such as video cameras and hand-held computers. The company originally anticipated that its stores would break even by early next year, but modified those expectations after the Sept. 11 attacks. Apple now expects the stores to generate a small loss for fiscal 2002, the filing states. | no | 0 |
Letters to The Editor: Wages and Prices Auditing the Auditor Hill's ... | JOHN KENNETH GALBRAITH.R.E. EICHBERGERRUDOLPH H. MILLER III.GEORGE T. BLEAKLEY.MRS. J( )AI The U 'ashington Tost, Times Herald (1959- /973); Feb I 1, 1969;</br></br>From 1955 to 1960 the consumer price index rose approximately ten points. From 1961 to 1965 it rose by 5.5 points. During the first period there was a sharp increase in wholesale prices. During the second period these were stable. During the earlier period unemployment was between 4.1 and 6.8 per cent. The difference between the two periods, some effects undeniably associated with the small differences in the level of employment, was that between 1961 and 1965 the Kennedy-Johnson Administrations had considerable success in holding wage increases in the organized sector of the economy within the amounts that could be afforded by productivity gains and in enforcing the appropriate price stability. This was the policy of the guideposts. No such policy was in effect before 1961. After 1965 it succumbed to the fiscal pressures of the Vietnam war, and, quite possibly, to a lessened sense of" the importance of the policy. Recent Economic Reports have spoken rather ambiguously of the wickedness of any interference with free markets by price control and the absolute necessity of some interference to insure price stability.</br></br>I have ncr-wish to give Mr. Nixon advice on economics. Like all Presidents he will have more of this than he can use. But I see no reason to spare you. You should know, as your recent editorial on the subject sadly fails to show, that in dispensing with the guideposts, or something similar, he is sacrificing his only chance for reconciling price stability with high employment. The American economy, whatever wishful analysis there may be to the contrary, is not stable at or near full employment. Wages will always shove up prices and prices will always pull up wages and this spiral will revolve for Republicans and Democrats alike. Moveover it has been the experience of virtually every other major industrial country that some machinery for wage and price restraint Is the only alternative to inflation of heavy unemployment.</br></br>In this connection it should be observed that whoever gave the new President that line about relying on ÛÏfine-tuningÛ the economy with monetary and fiscal measures was guilty of a shameless snow job. ÛÏFine-tuningÛ the American economy is like fine-tuning a football crowd or a speech by Dirksen. If this kind of finesse could combine high employment and price stability some country would have learned the secret by now.</br></br>Before winter returns again, faced with a further increase in prices and a bad commodity balance, Mr. Nixon, one can predict with absolute certainty, will be pleading for wage and prioe restraint. That is to say he will have reinstituted the guideposts without the guidance. | no | 0 |
Economist Saw the Good in America's Consumer Culture | Correction: Aug. 2 obituary for economist Stanley Lebergott incorrectly reported his age at the time of death. He was 91. (Published 8/4/2009)</br></br>Stanley Lebergott, 93, a retired economist and professor whose influential books and articles maintained that consumerism had brought positive changes to the American standard of living, died July 24 of cardiac arrest at his home in Middletown, Conn.</br></br>Mr. Lebergott, a former government economist and Wesleyan University professor, took issue with those who disdained "consumerism" as wasteful, pointless, even immoral. Consumption, he maintained, has always been an expression of human longing rather than mere acquisitiveness.</br></br>Reviewing his book, "Pursuing Happiness: American Consumers in the Twentieth Century" (1993), Washington Post book critic Jonathan Yardley praised Mr. Lebergott's "lucidity, wit and forthrightness."</br></br>In Yardley's words: "Lebergott argues that the great American shopping spree is not mere self-indulgence but an essential part of what has been a remarkably successful pursuit of happiness. He believes that rather than focus on the self-indulgent aspects of consumerism, we do better service to the truth if we credit it with permitting Americans to liberate themselves from the onus of repetitive, unrewarding labor." | no | 0 |
Miller's Formula Against Inflation: New Chairman of Fed Has Anti-Inflation Formula | i The following article, bij President Carter's nominee as chairman of the Federal Reserve Hoard, is reprinted from the Oct. 5. 197-1, issue of business Week magazine, by special permission.! liy G. 'William Miller</br></br>The present long-term inflation spiral is the result of trying to fulfill legitimate worldwide needs and wants by means of credit and deficits rather than by savings, investment, and productivity.</br></br>As a consequence, demand lias outrun the capacity to supply. Shortages have bred cartel nationalism with dramatic redistribution of capital. Financial mechanisms, domestic and intcrnatonal, have been strained nearly to the limit.</br></br>The problem of arresting inflation is today mor* political and social than economic. The task is to find an economic solution that is politically acceptable because it accommodates societyÛªs value goals.</br></br>Working our way out of inflation requires an allocation of the available hut limited resources to areas of priority, thus reestablishing a proper balance between supply and demand. Allocation solrlv by controlling the aggregatesÛÓthe supply of money and not federal spendingÛÓwill bring about levels of unemployment ami general economic hardship that arc likely to be unacceptable. Allocation by direct controls involves even more difficulties. | no | 0 |
A Special Weekly Report From The Wall Street Journal's Capital Bureau | ECONOMISTS PREDICT BUSH will get more good jobs news.</br></br>Payrolls are expected to rise an average of 177,000 every month for the next year, according to forecasts from 54 economists surveyed by WSJ.com. That is much less than March's 308,000 gain, but more than double the 75,000 average of the preceding six months.</br></br>Kerry will react by focusing more on the middle-class burdens arising from stagnant wages and rising health and education costs. In a forthcoming "Jobs of the Future" speech, he will tout using broadband technology and hydrogen-powered vehicles to create high-wage employment.</br></br>In a meeting this week to "rebuild alliances," Kerry faced trade questions from Business Roundtable leaders.</br></br>FRIST TRIES to break Senate gridlock by trading with Democrats. | no | 0 |
A Birthday for Fed Policy: Psychology Not Licked | The Federal ReserveÛªs light-money policy is now a full year old, but not even Ihose responsible for Its birth feel like celebrating the anniversary.</br></br>It was on Dec. 17, 1008, that the 12-memher, pollcy-aettlng Open Market Committee of the ÛÏFed" voted to yank hard on the credit reins to kick off a determined push to curb inflation. The committee revised its directive to the policy-executing New York district bank to call for conducting future operations ÛÏwith a view to attaining firmer conditions ... In the credit markets.Û</br></br>Thus began one of the most drastic hold-downs on money-supply growth in (he nation's history. The mid-December action-was later supplemented by increases in the discount rate at which banks borrow from the Fed, by higher reserve requirements on bank deposits (leaving less cash free for lending), and by further buying and selling of securities in the open market to drain off funds and produce even tighter conditions.</br></br>The year that has followed has defied many theories and forecasts. Working in tandem with a tight budget policy, the FedÛªs policy in the past 12 months has brought a set of developmentsÛÓsome quite painfulÛÓthat few dreamed of as 1969 was approaching. For example: drained the banks of their ready, lend-able cashÛÓtheir so-called liquidityÛÓand forced them tp scour European money markets for funds to meet loan commitments previously contracted for. Ranks are passing their high money costs on to customers at a prime rateÛÓ which they charged their highest rated customersÛÓor per cent. Most bor-</br></br>Û¢ The squeezeÛÓalong with the Inflation it is supposed to counter-actÛÓhas helped push interest rates to record levels. Top-grade corporate bonds com- mand yields near 0 per coni, while those of lesser quality offer up to Hi per cent. Issues of Federal agencies return around 8Û÷A per cent. | no | 0 |
WE'VE HEARD THAT... WE'VE HEARD THAT.. , | ÐÊ The biggest news out of Little Rock yesterday was that NBCÛªs Andrea Mitchell was caught by surprise when her longtime boyfriend, Federal Reserve Chairman Alan Greenspan, showed up to meet with Bill Clinton. Mitchell, who's been covering the president-elect, got tipped off when Greenspan was spotted in town. "I thought it was hilarious,'' said Mitchell, who says the couple assiduously avoids conflicts in their jobs, ÛÏThis is what weÛªre down to for news hereÛÓsightings. We're surviving on fumes.Û And no, she never reports on her beauÛªs whereabouts.</br></br>ÐÊ Bill and Hillary Clinton would like to walk the inaugural parade route from the Capitol to the White House, a la Jimmy Carter.</br></br>ÐÊ Former Supreme Court Justice Thurgood Marshall is the odds-on favorite to swear in A! Gore as vice president. No word on who will swear in the Top Dog, a job that traditionally falls to the courtÛªs chief justiceÛÓ-in this case William Rehnquist.</br></br>ÐÊ Warren Beatty and Annette Bening were spotted with Rob Reiner at the epic theater event of the season in Los Angeles, ÛÏAngels in America.Û The play, we remind, is seven hours long, interrupted by a dinner break.</br></br>ÐÊ Controversial rockers Guns N'Roses have been ordered to stay in Chile after police found traces of cocaine in the clothing of one of the band members. Reuter reports that the group had been scheduled to leave Chile for Argentina at noon local time yesterday, but will be detained until the investigation is completed. | no | 0 |
Stock Prices Rebound After Two-Day Sell-off: Many More Gainers Oil Shames Buoyant Airlines Strc | NEW YORK, Sept. 13ÛÓ The stock market put the brakes to its profit-taking slide and moved higher today in active trading.</br></br>The Dow Jones industrial average finished the day with a gain of 1.56 points at 917.21. At its best levels, the Dow was ahead only a little more than two points.</br></br>Standard and PoorÛªs 500-stock composite added 0.34 point to 100.86 and the New York Stock Exchange index rose 0.21 point to 56.40.</br></br>Trading volume was lower than on Thursday, but the difference traced to the lack of an opening surge of orders held over from WednesdayÛªs closing. The final totals Showed 13.08 million shares had crossed the tape, compared with 14.63 million in the previous session.</br></br>Advancing stocks outnumbered declines by 741 to 569. On Thursday, there were 610 winners and 741 losers. There were 94 new 1968 highs, up from 63, and 17 new lows, down from 18. | no | 0 |
Small-Stock Focus: Tech Weakness Hits Nasdaq, Small-Cap Stocks As Authorities Halt Trading of Golden Books | NEW YORK -- Small-capitalization and Nasdaq stocks fell sharply, posting steeper losses than the rest of the stock market.</br></br>The Nasdaq Composite Index posted the sharpest decline of the major stock market averages. Since last setting an all-time high on Feb. 1, it has fallen 10.4%. The Nasdaq composite, at 2248.91, plunged 64.96, or 2.81%, yesterday.</br></br>The Russell 2000 index of small-capitalization stocks has dropped 8.8% since the end of January, and stands 20.7% below its April 21 record close. The index fell 6.86, or 1.73%, to 389.54 yesterday.</br></br>As has been the case since the current small-cap and Nasdaq pullback began, the groups' losses were fueled by the weakness of the technology sector. Stocks in a wide range of tech-sector industry niches fell substantially.</br></br>Meanwhile, the mania for hot new technology stocks continues. | no | 0 |
Fairfax Losing Its Budget Balance - Again;After Struggle to Close This Year's Gap, County Sees Possible $97 Million Shortfall Next Year | Fairfax County, still reeling from the recession and the collapsed real estate market, is facing a potential $97 million budget shortfall next year, according to county officials, virtually ensuring further cuts in services, restrained school funding and possible tax increases.</br></br>In response, the Board of Supervisors is scheduled to consider budget guidelines Monday that would limit the growth of most county government spending next year to 5.65 percent and limit the increase in county spending on schools to 6 percent. Those limits, however, would not erase the shortfall.</br></br>The main reason for the shortfall, county officials said, is an expected continued decline in real estate taxes, which financed 60 percent of the county's $1.38 billion budget this year.</br></br>James P. McDonald, deputy county executive for finances, said residential real estate values may face a 2 percent to 2.5 percent drop and commercial real estate values are expected to decrease by 5 percent. He cautioned, however, that the figures were preliminary and could change significantly if sales pick up in the next few months.</br></br>"I'm convinced in my own mind there needs to be some modest tax rate increase, because the county can't provide the level of services that citizens demand," said Ed Hoole, chairman of the Citizen Budget Overview Committee. He cited, as an example, the board's recent decision to resume free emergency ambulance service because of residents' complaints about being charged $100 a ride. | yes | 1 |
FCC Orders Comsat to Refund $38.8 Million | The Federal Communications Commission yesterday ordered Communications Satellite Corp. to refund about $38.8 million to customers for what it alleges was four years of overcharges.</br></br>The commission in effect forgave some of the alleged overcharges, which it had estimated at about $62 million in April, saying that the rates may have been justified by economic conditions at the time.</br></br>An agreement must be worked out with the long-distance companies doing business with Comsat to pass the money through to their customers. Refunds to individuals are unlikely, one FCC official said; more likely, future rates will be cut.</br></br>Comsat declined to comment on the ruling, but in the past has argued that the FCC has no legal authority to order refunds. By law, it can appeal the decision to the commission itself or in the federal court system.</br></br>The FCC asked that a lump sum be paid after the pass-through issue is settled. The payment would be a major financial setback for Comsat, representing more than half of its $59 million in after-tax earnings in 1986. Sales that year were $467 million. | no | 0 |
THE WASHINGTON POST, SUNDAY, MARCH 2 5, 1 9 79 | ÛÏItÛªs JimmyÛªs show,Û Anwar Sadat said of the signing of the Egyptian-Is-raeli peace treaty in Washington this week. Rightly so.</br></br>For what the treaty chiefly signifies is a changing American mood. Though only tentatively so far, the United States is moving to add to the great commitments toward Europe and Japan a new commitmentÛÓa commitment to the security of the Mideast.</br></br>The text of the treaty, to be sure, stipulates mainly for performance of one kind or another by Israel and Egypt. The Israelis contract to withdraw from the whole of the Sinai peninsula-including air bases, a naval base, oil fields, a couple of major towns and one important chain of settlements. The first stage of the withdrawal will be completed by the end of this year, the full withdrawal by April 26,1982.</br></br>Egypt commits itself to accord Israel full recognition as a sovereign state, including diplomatic relations at the ambassadorial level by the end of January 1980. Both countries undertake to achieve what the treaty calls ÛÏautonomy for PalestiniansÛ living on the</br></br>Inextricably mixed up with the Israeli and Egyptian pledges, however, are American undertakings. Washington has bound itself to pay much of the cost for the removal of the Israeli armed forces from bases in the Sinai to new positions in the Negev Desert. | no | 0 |
Volcker Calls Economy's Pause Temporary: Volcker Upbeat on Growth | Federal Reserve Chairman Paul A. Volcker yesterday said that he believes the current pause in the economic expansion likely is temporary and that the Fed will supply enough money and credit to keep the economy growing "in an orderly way.Û</br></br>Volcker, in his first speech since well before the election, told a New York audience, "A sharp slowing in growth for a time during an expansion period is in fact historically common, typically related to temporary imbalances in inventories following a period of rapid accumulation and temporary fluctuations in consumption. Something of that sort seems to be at work this fall.</br></br>"Continuing growth in income and employment and relatively strong investment plans are reassuring signs for the future,Û the Fed chairman said. "The decided decline in interest rates as the growth rate has slowed should help support both housing and investment, and the related easing of pressures on bank reserve positions by the Federal</br></br>Most short-term market interest rates have dropped more than 2 full percentage points since the first of September. After the Fed last week cut its discount rateÛÓthe rate it charges on loans it makes to financial institutionsÛÓfrom 9 percent to 8Vz percent, market rates fell again.</br></br>Because lower rates affect economic activity only with a lag, there are as yet few signs of any pickup. Many forecasters now expect that the gross national product will rise no faster this quarter than the 1.9 | no | 0 |
Dow Gains 3 but Is Down 32 for Week | NEW YORK, Sept 6ÛÓThe release of August employment figures failed to rouse Wall Street today, with the stock market ending only slightly higher despite a strong rally in the bond market</br></br>NEW YORK, Sept 6ÛÓThe release of August employment figures failed to rouse Wall Street today, with the stock market ending only slightly higher despite a strong rally in the bond market 3011.63. It was the first gam in five sessions but left the 30-share average with a loss of 31.97 points for the week. Losing stocks slightly outnumbered advancing issues. Volume on the New York Stock Exchange was 166.4 million shares.</br></br>The Labor Department reported this morning that the jobless rate held steady at 6.8 percent of the work force in August. But the closely watched figure of non-farm jobs increased by 34,000. That was higher</br></br>Economists were split over whether the figures would prmnpt the Federal Reserve to push down interest rates to get the economy moving faster. Many said that the Fed was Btely to act, but Dot right away.</br></br>Among individual issues, PepsiCo continued to ahp amid worries about its snack food and beverage businesses. PepsiCo fell % to 29ft. | no | 0 |
Prada Profit Rises 74% | Italian fashion house Prada SpA on Monday posted a 74% rise in first-half net profit, driven by strong demand in Asia--in particular China--and said it is confident of good full-year results.</br></br>Sales in Asia rose more than 35% to [euro]368 million. The company said that leather goods performed particularly well, with sales up 35.3%. Leather goods now represent more than 55% of total sales.</br></br>Deputy Chairman Carlo Mazzi said he is "quite confident Prada will deliver good results in the future," and dismissed any concerns that the company may be affected by the economic crisis in Europe and the U.S.</br></br>Mr. Mazzi said the company had seen no signs of decreasing orders or negative signs from consumers, according to data at the end of June, and noted that Chief Executive Patrizio Bertelli was positive about the future growth of the group. However, he declined to comment on whether the Milan-based luxury-apparel maker will continue to pay a dividend in 2011.</br></br>Mr. Mazzi said Prada will continue to manufacture its products around the world so it can benefit from lower costs and high quality. He cited India as an example of "a country where handmade totes can be produced maintaining the same quality level as the ones produced in Italy," but at a cheaper cost. | no | 0 |
Euro's Rebound Finds Analysts Changing Tune --- In Course of a Few Weeks Several Factors Alter The Market Psychology | LONDON -- If Dr. Frankenstein were a money manager or foreign-exchange trader, would the euro be his currency of choice?</br></br>A month ago, Steve Barrow, a currency strategist at Bear, Stearns & Co. in London, vigorously argued yes.</br></br>"Europe seems to have created the currency equivalent of Frankenstein's monster, and it is running amok," he wrote to clients, noting forecasts that the euro would become a "big" currency in terms of trade, bond issuance, investment and as a reserve asset held by central banks. Europe's common currency, he predicted, would fall toward 75 U.S. cents next year.</br></br>Now Mr. Barrow, whose euro predictions have been better than most, is singing a different tune -- and that's without a visit from Mary Shelley, the monster's creator. The 38-year-old native of East London now says he sees the euro at 95 cents in six months and $1.05 in 12.</br></br>Mr. Barrow has lots of company. Confronted with the euro's 5.7% surge in the past three weeks, untold numbers of traders, analysts, portfolio managers, corporate treasurers and just plain old investors are trying to figure out whether they are experiencing "future shock," which American author Alvin Toffler, 35 years ago, defined as "the dizzying disorientation brought on by the premature arrival of the future." | no | 0 |
Mortgage Sector May See Mergers | Dow Jones Newswires</br></br>NEW YORK -- Consolidation may pick up in the U.S. mortgage industry, as companies seek to deal with a drop in refinancing activity after last year's boom.</br></br>Some smaller combinations so far this year -- including the $6 billion merger of Alabama-based Regions Financial Corp. and Tennessee- based Union Planters Corp. -- could herald a wider trend, analysts say.</br></br>"We're in a new phase in the mortgage industry right now, but it's a natural progression, given where interest rates are headed," said Sharon Haas, managing director in Fitch Ratings' banks group. "I am anticipating many more consolidations going forward."</br></br>Consolidation was under way well before the latest mortgage boom- and-bust cycle. But as the economy continues to recover this year, rates are expected to climb. That will erode new lending and refinancing activity, while pressuring firms to find new efficiencies, analysts say. | no | 0 |
Fed Won't Tighten Monetary Policy: Volcker Letter Reveals That Panel... | Federal Reserve policy makers have agreed not to tighten monetary policy to bring the growth of the money supply back down within its target range for the second half of this year, Federal Reserve Chairman Paul A. Volcker disclosed yesterday.</br></br>VolckerÛªs comments came in a letter to Del. Walter E. Fauntroy (D-D.C.), chairman of the House domestic monetary policy subcommittee, which was released after financial markets were closed.</br></br>Market analysts generally have not been expecting the Fed to tighten up, though an explicit statement to that effect could give bond and</br></br>The statement also gained in significance because it came just after a meeting this week of the FedÛªs policy making group, the Federal Open Market Committee, to reassess monetary policy.</br></br>Volcker said that the FOMC ÛÏhas agreed that growth of Ml over the second half of the year as a whole above the target range established in July would be acceptable.Û | no | 0 |
The Verdict Is Still Out On AT&T | Leaving a recent meeting with AT&T's new chief, C. Michael Armstrong, at the company's Basking Ridge, N.J., base of operations, cable magnate John Malone turned to an aide and said, "I've met every AT&T chairman since 1964, and this is the first one that gets it."</br></br>It appears Wall Street is feeling the same vibes.</br></br>Since tapping Mr. Armstrong, the former chief executive of Hughes Electronics, to be its new chairman in October, AT&T has seen its stock price rocket 44%, giving Ma Bell a stock-market value of $105 billion and a more valuable currency for doing deals.</br></br>But what has Mr. Armstrong, a onetime senior executive of International Business Machines who pushed Hughes into the satellite-TV business, done to warrant all the investor enthusiasm? Not much, at least not publicly. AT&T still faces the fight of its life in the coming year in everything from local-phone services to the Internet, which means its current stock runup may be short-lived.</br></br>Some of the most prominent analysts who follow the stock are witholding their endorsements. Jack Grubman of Salomon Smith Barney and Daniel Reingold of Merrill Lynch & Co. have set neutral and hold ratings, respectively. Under Mr. Armstrong, AT&T still faces the same challenges that sat like an elephant on its stock price under his predecessor, Robert E. Allen Jr. | no | 0 |
An Appraisal: Program Restraints Ignite Disputes Between Traders | The program-trading limits set last week by the New York Stock Exchange are designed to ease market volatility, but traders and analysts are taking a wait-and-see attitude.</br></br>While they wait, volatility and program trading are continuing to create rifts between the larger Wall Street firms, which regularly execute the programs, and the smaller houses, which find themselves scrambling to keep pace with market changes.</br></br>Feuding has erupted even inside some Wall Street houses, with equity traders and futures traders debating the causes of and solutions to the market's violent swings.</br></br>The stock market's volatility in the past three months has caused a number of changes in the way traders and investors operate. On block-trading desks, which frequently commit the firm's capital to complete trades, traders have become unusually cautious, and in some cases less accommodating in prices they will pay, says Dudley D. Eppel, who runs the block desk at Donaldson, Lufkin & Jenrette in New York.</br></br>Jack P. Baker, head of equity trading at Shearson Lehman Brothers Inc., New York, says large institutional customers also are changing their ways. "Everyone is so conscious of the volatility that they no longer say, 'I want to buy 500,000 shares at the opening.' Now they buy 25,000 shares at the opening and say they'll decide at 11 o'clock when to buy the rest." | no | 0 |
Stock Gyrations Won't Damage Economy --- Experts Say Sharper Drops Are Needed to Cause Tailspin | The lurching stock market may make consumers queasy, but it's going to take more than that to make them sick enough to trigger an economic downturn.</br></br>Think back to 1987. Then, the stock market's plunge was much more severe in percentage terms than any of the dips in the past few days. Still, outside of the financial sector, the economy didn't feel any ripple effects until around mid-1989, notes Donald Fine, chief market analyst for Chase Asset Management.</br></br>The 1987 market plunge was steeper than any of the market slides that have coincided with recessions in the past few decades. And many economists believe that, to hurt the economy, today's market would have to suffer consistent and considerably worse drops than it has shown recently. Even then, Mr. Fine says, "only at some future point" would it damage consumer spending and other economic sectors.</br></br>In the high-technology sector, where the recent drop has been severe, tumbling stock prices are a reflection of worsening industry performance, said Kenneth R. French, professor of finance at the Yale School of Management. Still, a continued stock price plunge in that sector, he said, might reduce its access to venture capital and inhibit initial public offerings.</br></br>In general, however, the wider economy is largely insulated from the stock market's volatility. True, more "little guys" have their money in the stock market today. According Federal Reserve numbers cited by James Poterba, professor of economics at the Massachusetts Institute of Technology, 38.4% of all U.S.households held some kind of stock in 1992, the latest year for which data are available, up from 33.2% in 1983. But one-third of the $8.4 trillion in corporate public and private equity is tied up in IRAs, 401(k)s and other retirement accounts, according to 1995 data from the Fed and Investment Company Institute. | yes | 1 |
Fed's Heller Backs Commodity Link In Monetary Policy | WASHINGTON -- Federal Reserve Board Governor Robert Heller said he favors tying international monetary policy to a broadly based "basket" of commodity prices, a move that is endorsed by many supply-side economists.</br></br>Mr. Heller's remarks provide fresh evidence that he can be counted among the Fed's supply-siders, who have been gaining strength as more board members have been appointed by President Reagan.</br></br>The comments also underscore the increasing importance the Fed is placing on commodity prices now that the central bank has deemed money-supply figures a poor guide to policy. Another Fed governor, Wayne Angell, also has said he would use commodity prices as a primary benchmark.</br></br>Fed Chairman Paul Volcker pays considerable attention to commodity prices as an indicator of general inflation trends. But the Fed chief has questioned whether policy "rules," such as a commodity standard, are workable.</br></br>Many supply-siders -- who generally emphasize stimulating output rather than managing demand -- argue that the Fed should tighten credit when prices of gold and other commodities are rising and loosen credit when such prices are falling. | no | 0 |
We Can Defeat Our Economic FOEs | Not with a bang but with a whimper. That's how the Clinton-Gore economy stumbles to an end. It's not a pretty sight. But will we end up mired in recession? Don't bet on it. We should skirt a recession and resume our prosperous march, as long as Congress supports, rather than undermines, President-elect George W. Bush.</br></br>As we enter the Christmas retail season, it's easy to come up with a list of sad data as long as Santa's happy list of holiday gifts. Durable goods orders dropped 5.5% in October and, of course, the Nasdaq Stock Market has lost 32% in 2000. The economic bears are on a rampage, forcing the bulls to hibernate for the winter.</br></br>How did we get here? Wasn't it just yesterday that gross domestic product growth was galloping at a 5% pace and financial authors sparked a bidding war over Dow 36,000, Dow 40,000 or Dow 100,000? Who broke up the party and launched this battle against our prosperity? Let's use the acronym FOE, pointing our indignant finger at the Federal Reserve Board, OPEC and the euro. Each of these institutions has knocked us a few degrees off course. Of the three, at least the Federal Reserve had good intentions.</br></br>Back on May 16, the day the Fed pushed up short-term rates by 50 basis points, I suggested on this page that the economy was preparing to slow on its own, and that bond bears worried too much about inflation. (If only my bet on the New York Mets came out so lucky.) "Be careful what you wish for. . ." goes the old saw. So now the Fed has achieved the slowdown it tried to engineer. Fewer cars are rolling off the assembly lines in Detroit, and carpenters will hammer fewer nails into new homes this winter. The junk-bond market has slammed its doors, and the Fed reports that bank loan officers have choked lending standards tighter today than during the 1998 credit crunch.</br></br>On Tuesday, Alan Greenspan prudently and presciently softened his inflation warnings, pointing out that a flabby stock market could "signal or precipitate a softening" in spending. For now, at least, we don't have to fret about irrational exuberance in share prices. | no | 0 |
The Outlook: Unearthing the Underground Economy | WASHINGTON -- One of President Reagan's longstanding beliefs is that the government can reduce its deficit by mining uncollected revenues from the underground economy. The Treasury's proposal to simplify tax laws and lower income tax rates will get at some of the "$100 billion of tax that is avoided in the United States" each year, he contends.</br></br>Over the last four years Congress and the administration have taken a number of steps to police tax evasion and slow the growth of the underground or "off-book" economy, where transactions often take place in cash and aren't reported to the Internal Revenue Service. The Treasury believes these actions already are starting to reduce tax cheating, although the IRS doesn't have much evidence to back this up yet. Reducing the complexity and perceived inequity of the tax system would increase compliance further, the Treasury argues. Virtue would be its own reward: A fairer tax system would boost economic efficiency and make tax evasion less attractive.</br></br>The underground economy has intrigued economists and politicians since the mid-seventies, when some analysts began to notice a sharp increase in evidence of subterranean activity -- which ranges from dope dealing to a carpenter's failure to report income from moonlighting. Analysts theorized that the increase in unreported income was a response to rising inflation, which forced many taxpayers into higher tax brackets, and growing disenchantment with the complexity of the tax system.</br></br>Since there's no uniform definition of the underground economy, economists disagree sharply about how to measure it and how to gauge its impact on the nation's output, employment and savings. Estimates of the subterranean economy's size range from 3% of gross national product, the value of the nation's output of goods and services, to 30%. The government's estimates tend to be at the low end of the range.</br></br>While economists squabble over the size of the underground economy, politicians and tax collectors are unified in their desire to collect their share of these unreported revenue streams. IRS studies show that tax cheating is a huge, endemic problem. | no | 0 |
The Outlook: A Little-Noted Rise In Barriers to Growth | NEW YORK -- What goes on here?</br></br>Talk persists that a recession is brewing, very possibly arriving within the year. Yet, at the same time, signs mount that the economy is reasonably robust, with brisk gains in employment, capital spending and exports leading the way to new highs in overall business activity.</br></br>The juxtaposition may seem peculiar, to say the least, but there's really nothing very odd about it. Recessions normally do arrive on the heels of relatively robust economic activity, not when business is stagnating. This is because, in a sustained upswing, a burgeoning economy eventually comes up against barriers -- financial as well as physical -- to further growth. A recession perforce ensues.</br></br>How close to such a barrier point is the economy now?</br></br>Closer, perhaps, than is widely recognized. | yes | 1 |
No Tax Break for Payers Of Mortgage Insurance | It was almost, but not quite enough, this week on Capitol Hill. Millions of moderate-income and first-time home buyers almost received a major new deduction from the giant federal tax-cut package under consideration by Congress.</br></br>But in the end, a Senate-approved new tax rule allowing more than 10 million home-mortgage borrowers to take deductions on their monthly mortgage insurance premiums did not make it into the final compromise package.</br></br>Supporters, including civil rights, union, housing and mortgage industry groups, say they'll try to get the plan included in any follow-up federal tax legislation that Congress takes up later in the year.</br></br>Here's what happened: The Senate's original tax-reduction bill included a major reversal of decades-long IRS policies on mortgage- related write-offs.</br></br>It would have allowed home buyers and owners who pay Federal Housing Administration mortgage premiums, private mortgage insurance premiums, or other forms of mortgage insurance to begin taking write- offs on those payments immediately. | no | 0 |
A Jobless Recovery Is a Phony Recovery | In recent months, Americans have heard reports out of Washington and in the media that the economy is looking up -- that recovery from the Great Recession is gathering steam. If only it were true. The longest and worst recession since the end of World War II has been marked by the weakest recovery from any U.S. recession in that same period.</br></br>The jobless nature of the recovery is particularly unsettling. In June, the government's Household Survey reported that since the start of the year, the number of people with jobs increased by 753,000 -- but there are jobs and then there are "jobs." No fewer than 557,000 of these positions were only part-time. The survey also reported that in June full-time jobs declined by 240,000, while part-time jobs soared by 360,000 and have now reached an all-time high of 28,059,000 -- three million more part-time positions than when the recession began at the end of 2007.</br></br>That's just for starters. The survey includes part-time workers who want full-time work but can't get it, as well as those who want to work but have stopped looking. That puts the real unemployment rate for June at 14.3%, up from 13.8% in May.</br></br>The 7.6% unemployment figure so common in headlines these days is utterly misleading. An estimated 22 million Americans are unemployed or underemployed; they are virtually invisible and mostly excluded from unemployment calculations that garner headlines.</br></br>At this stage of an expansion you would expect the number of part-time jobs to be declining, as companies would be doing more full-time hiring. Not this time. In the long misery of this post-recession period, we have an extraordinary situation: Americans by the millions are in part-time work because there are no other employment opportunities as businesses increase their reliance on independent contractors and part-time, temporary and seasonal employees. | yes | 1 |
Apple's iWork Package Is Elegant but Wimpy Compared With Office | When you hear that Apple has released a new product, you think of a sleek Macintosh laptop, or perhaps a beautiful program for editing videos. But a spreadsheet? Not a spreadsheet. After all, expertise with spreadsheets is the sort of computing skill about which the "Mac guy" in Apple's TV ads mocks the "PC guy."</br></br>And yet, last week, Apple brought out a new spreadsheet program called Numbers, thus completing one of its least-known products: a productivity suite called iWork. The iWork '08 suite, which competes with the Macintosh version of Microsoft Office, also includes a word- processing program called Pages and a presentation program called Keynote. The two were upgraded last week. IWork costs $79, about half the price of the lowest-cost version of Microsoft Office, which sells for $149.</br></br>In the past 10 years, Apple has out-designed Microsoft and its hardware partners in a number of key areas. But can Apple really take on Microsoft in the category of productivity software, where Office rules on both Windows and the Mac? To find out, I've been testing the new iWork, which runs only on the Mac, against the Mac version of Office.</br></br>My verdict: iWork '08 is a nice product, capable of turning out sophisticated and attractive word-processing, presentation and spreadsheet documents. It can even read Microsoft Office documents, whether created on the Mac or on Windows computers, and can save documents in Microsoft Office formats so they can be opened in Office on the Mac or on Windows.</br></br>But iWork simply isn't as powerful or versatile as Microsoft Office, especially when it comes to word processing and spreadsheets. And it suffers from a design that places far more emphasis on making documents look beautiful than on the nuts and bolts of the actual process of writing and number-crunching. | no | 0 |
U.S. Jobless Claims Fall; Four-Week Moving Average at Lowest Level in 7 Years | WASHINGTON--New applications for unemployment benefits fell again last week, a fresh sign of an improving labor market.</br></br>Initial claims for jobless aid decreased by 3,000 to a seasonally adjusted 302,000 in the week ended July 12, the Labor Department said Thursday. That was the second lowest reading so far this year and was below the 310,000 new claims forecast by economists surveyed by The Wall Street Journal.</br></br>The four-week moving average of claims, which smooths out weekly volatility, fell by 3,000 to 309,000, its lowest level in seven years. A year ago, this measure stood at 345,000.</br></br>"The improvement has been substantial," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.</br></br>Jobless claims traditionally jump this time of year because of temporary layoffs at auto-manufacturing plants, so the Labor Department adjusts the data in order to give a better picture of the underlying trend of layoffs. Auto makers traditionally halt production at some factories in the first half of July to prepare for model year changeovers. | yes | 1 |
Regulatory Capture 101; Impressionable journalists finally meet George Stigler. | The financial scandal du jour involves leaked audio recordings that purport to show that regulators at the Federal Reserve Bank of New York were soft on Goldman Sachs. Say it ain't so.</br></br>The news is being treated as shocking by journalists who claim to be hard-headed students of financial markets. One especially impressionable columnist calls it "a jaw-dropping story about Wall Street regulation." The real scandal here is the excessive faith that liberal journalists and politicians continue to put in financial regulation. The media pack is discovering regulatory capture--a mere 43 years after George Stigler published his landmark paper on the concept.</br></br>The secret recordings were made by Carmen Segarra, who went to work as an examiner at the New York Fed in 2011 but was fired less than seven months later in 2012. She has filed a wrongful termination lawsuit against the regulator and says Fed officials sought to bury her claim that Goldman had no firm-wide policy on conflicts-of-interest. Goldman says it has had such policies for years, though on the same day Ms. Segarra's revelations were broadcast, the firm added new restrictions on employees trading for their own accounts.</br></br>The New York Fed won against Ms. Segarra in district court, though the case is on appeal. The regulator also notes that Ms. Segarra "demanded $7 million to settle her complaint." And last week New York Fed President William Dudley said, "We are going to keep striving to improve, but I don't think anyone should question our motives or what we are trying to accomplish."</br></br>On the recordings, regulators can be heard doing what regulators do--revealing the limits of their knowledge and demonstrating their reluctance to challenge the firms they regulate. At one point Fed officials suspect a Goldman deal with Banco Santander may have been "legal but shady" in the words of one regulator, and should have required Fed approval. But the regulators basically accept Goldman's explanations without a fight. | no | 0 |
Federal Reserve's policy-making panel kept steady stance on interest rastes | WASHINGTON -- Federal Reserve policy makers unanimously decided at their Nov. 16 meeting to hold interest rates steady and to lean neither toward higher nor lower rates in the ensuing weeks, the Fed disclosed.</br></br>The Fed's policy-making open market committee met Tuesday behind closed doors, and hasn't signaled any immediate change in interest rates since then.</br></br>The summary of the November meeting, released last week after the customary lag, said Fed officials agreed "that despite various indications of a pickup in economic growth, the underlying economic situation and the outlook for inflation hadn't changed sufficiently to warrant an adjustment in monetary policy."</br></br>The Fed has been holding short-term interest rates at historically low levels since September 1992. The recent strength of the economy has sparked speculation about when the Fed will begin to move rates up.</br></br>At their November meeting, according to the 22-page summary, Fed officials reiterated their intention of "taking early action to arrest incipient inflationary pressures before they gathered strength." They said that "in appropriate circumstances, a prompt policy move" -- that is, an increase in short-term interest rates -- might allay financial market concerns about inflation and keep the bond market from pushing up long-term rates. | no | 0 |
Swollen Pension Funds, Surprise Profits; Many Big Firms Reap Benefits as Bull Market Inflates Value of Retirement Plans | Corporate profits have been getting a boost recently from a surprising source -- the surging stock market's effect on the value of corporate pension funds. These pension plans, once a drag on earnings, are boosting the financial performance of many of the country's best-known companies.</br></br>The pension-fund bubble stems from the arcane accounting rules that govern the more than $1 trillion in private pensions. Under those rules, companies make assumptions about how much they will earn on their pension assets, how much they will have to pay out to future retirees and the future level of interest rates.</br></br>But what has been happening during the long bull market is that those assumptions have proved too conservative -- and the funds have swollen far beyond expectations as stock market returns have outpaced historical trends.</br></br>The excess, filtered through many layers of accounting, is dribbling down to the bottom line. And that's giving an extra boost to corporate profits at a time when earnings are being squeezed from lack of pricing power and rising wage pressures. Some companies are siphoning off some of the pension surplus to pay for other corporate needs, such as early-retirement plans, retiree health benefits and even merger financing.</br></br>For many businesses, the gain is twofold: Their plans are so flush they are being spared from having to make new annual contributions, and they are earning income from the excess that has built up throughout the stock market's rise. | no | 0 |
Kicking the Fed | SOMETIMES IT SEEMS as if nobody loves the Fed. At the moment, the hostility emanates mainly from Republicans, who charge that Chairman Ben S. Bernanke's plan to boost the economy through $600 billion in asset purchases will bring on inflation and currency debasement. Senior Republicans are talking seriously of amending the 1977 law that gave the Fed responsibility for maximizing employment as well as stabilizing prices.</br></br>But only 10 months ago progressive Democrats, seeking scapegoats for Republican Scott Brown's win in Massachusetts, were threatening Mr. Bernanke's appointment to another four-year term. Moveon.org charged that "after taking extreme measures to save the banks, Bernanke has shown no interest in helping regular folks who can't find jobs, even though ensuring 'full employment' is explicitly part of his mandate."</br></br>A lot of this is just politics, of course. Perhaps New York Times columnist Paul Krugman is right that the GOP's "real fear is not that Fed actions will be harmful, it is that they might succeed," thus boosting President Obama's reelection chances. But by that logic, Republicans would be entitled to accuse Mr. Bernanke of printing money to reward Mr. Obama for reappointing him or to appease his erstwhile critics on the left.</br></br>We prefer to deal with everyone's arguments on the merits. The fact is that the current debate over the Federal Reserve's policies is inevitable and - at least potentially - healthy.</br></br>Ever since the struggles over Alexander Hamilton's Bank of the United States, populists have feared federal control over the money supply as an instrument of corrupt collaboration between political and financial elites. Given that history, there was bound to be controversy when the Fed began its latest round of "quantitative easing" - after more than a trillion dollars' worth of previous asset purchases and lending to specific Wall Street firms. | no | 0 |
Justice Among Generations: Stocks won't spare us from cuts in Social Security and Medicare | The best thing we could do with last weekÛªs report from the Advisory Council on Social Security is to forget it. The report brims with bad ideas from ail along the political spectrum. Nohe'of the three proposals to invest vast amounts of Social Security funds (ultimately trillions of dollars) in the stock market is worth adopting. All would ÛÏnationalize" the stock market more than "privatizing" Social SqfjffttyÛÓwith unpredictable and, possibly, damaging consequences. And all obscure the central issue posed by an aging America. ItÛªs generational justice: How much burden should the old place on the middle-aged and the young, whose taxes mainly pay for government retirement benefits?</br></br>Sooner or later, cuts in Social Security and Medicare are unavoidable, because the alternativesÛÓhuge tax increases or peacetime budget deficitsÛÓare worse and probably politicalsÛª'.unacceptable. In general, we know what tg;((g;,raise retirement ages, tax Social Securi-ty/benefits fully, shift Medicare toward ÛÏmanaged care" and correct Social Security benefits for an overstatement of inflation in. the consumer price index. Changes need to be made, gradually so that today's retirees are only modestly affected and larger shifts (such as higher retirement ages) occur with ample warning.</br></br>Siphoning huge amounts of Social Security funds into the stock market wonÛªt erase the budgetary pressures. In practice, the government canÛªt pre-fund much of its future costs of the baby-boom generationÛªs retirement, even though thatÛªs the vague promise of all three council proposals. The costs are simply too large. To see why, consider spending projections for Social Security, Medicare and that part of Medicaid that pays for nursing-home care. All provide benefits for the elderly, and all are affected by the same aging trends. Common sense suggests they should be considered as a wholeÛÓand not as unrelated parts.</br></br>Together, these programs now account for nearly 40 percent of non-interest federal spending; they're already squeezing other important federal activities, from basic research to national parks. But the situation dramatically worsens in the next century, as baby boomers retire. In 1995 these programs cost about 7 percent of national income (gross domestic product). By 2025 they will costÛÓ unless changes are madeÛÓabout 13 percent, projects the Congressional Budget Office. Paying for them would require staggering tax increases (20 percent to 50 percent, depending on assumptions) or budget deficits. The projected increase for Social Security alone (1.3 percent of GDP by 2025) might easily be absorbed. The combined increases of all three programs, led by Medicare (up 3.5 percent), aren't.</br></br>The Advisory CouncilÛªs failure to consider the combined costaÛÓthough defensible in terms of its legal charterÛÓmake its report a poor guide for the future. Even for Social Security, its proposals donÛªt make sense, The idea is that if we save more now, we won't have to pay more later. Though true, this is misleading. To save more now, we have to consume less. Compulsory saving in stocks requires either tax increases or cuts in government spending. Two of the three plansÛÓ each mandating stock accounts for individualsÛÓadmit this. They would raise the existing | no | 0 |
Profit Motive Praised For Chinese Firms; Party Congress Likely to Urge Privatization | At first glance, the insulation material factory in this mid-sized city doesn't look noteworthy: drab buildings, yellow plastic sheets rolling off assembly lines, mounds of coal lying beside generators.</br></br>But the Star Insulation Materials Joint Stock Co. is supposed to be a model for China's future. Four and a half years ago, it changed from a state-owned enterprise to one owned by its employees, and to hear company chairman Dou Baorong describe it, it was as though a magic wand were waved over the place. Output increased seven-fold, productivity tripled, tax payments rose 12-fold and profits soared 16-fold.</br></br>"The old system made workers lazy," said Dou, who now owns 8.4 percent of the company and gets a chunk of the profits in addition to his salary. Ni Shaobo, assistant to the general manager, added: "Before, it was the company that answered for it if performance was bad. Now it's all of us who answer for it."</br></br>Star Insulation is just one of hundreds of Chinese companies that have experimented with different forms of ownership, moving off the government dole and seeking more commercially viable footing. At the Chinese Communist Party congress that starts today, China's rulers are expected to endorse these companies as models for thousands of state-owned enterprises around the country, giving a push to a massive privatization process that so far has been regarded as experimental.</br></br>"Quite possibly, the world's largest privatization is going on right now in China," said Barry Naughton, a University of California at San Diego economist who specializes in China. It makes former British prime minister Margaret Thatcher's privatization efforts look small; more people work for Chinese state companies than live in all of Britain. | no | 0 |
DIGEST | Tropicana Products announced it would raise the wholesale price of its orange juices an average of 10 percent because of a sharply reduced Florida orange crop blamed on heavy winter rains and a dry summer and spring. That translates to about 30 cents to 40 cents more for consumers buying 64-ounce and 96-ounce containers. The higher prices will probably start showing up in stores in late November. Minute Maid, Tropicana's chief national competitor in the orange juice market, said it expected to announce a price increase "in the near future."</br></br>A new U.S. savings bond plan will allow Americans to have the costs of the bonds automatically deducted from their bank accounts by the government. The new program, called the EasySaver Plan, is intended to complement the existing payroll deduction plan. Savers will be able to choose the dates they want the Treasury Department to charge their accounts -- a minimum of twice a year. The traditional Series EE bonds, which sell for half their face value, will be available in denominations ranging from $50 to $1,000. Series I bonds, which carry a lower interest rate but are adjusted to reflect inflation, also will be sold, at their full face value, in denominations from $50 to $1,000.</br></br>Long-Term Capital Management, the hedge fund taken over by 14 lenders last month, is seeking to refinance soon-to-expire credit lines from banks not involved in the rescue, a person familiar with the fund said. It also fired 18 percent of its staff to cut costs. Credit lines from banks not involved in the takeover financed about 10 percent of Long-Term Capital's $100 billion balance sheet, the source said.</br></br>Durable goods orders rose 0.9 percent in September, pulled higher by demand for automobiles, communications equipment and military goods. The unexpected fourth consecutive increase brought orders to a seasonally adjusted $192.1 billion, the Commerce Department said. Economists had expected about a 1 percent drop, with world financial turmoil diminishing demand for U.S. products.</br></br>The Treasury sold $16.002 billion of two-year notes at a yield of 4.025 percent, the lowest in five years. Demand was considered subdued, judging by the bid/cover ratio, which gauges demand by comparing the number of bids to the amount of securities sold. The bid/cover ratio was 1.97, showing that there was less demand than at the Treasury's last monthly sale of two-year notes on Sept. 23 when the ratio was 2.39. The yield on the two-year notes sold yesterday was the lowest since 3.94 percent at the Oct. 26, 1993, auction. At the Sept. 23 auction, the notes yielded 4.615 percent. | no | 0 |
&J)ctoasl)mgton$}09t | In the wee hours one morning a few days ago, when Congress was struggling to reduce the federal deficit, a bunch of millionaire tax dodgers proved that taxes are not as inevitable as death.</br></br>With most of Congress and the media asleep, House Ways and Means Committee Chairman Dan Rostenkowski slipped into the tax bill a provision that gives a small group of accused tax cheatersÛÓmost from Ros-tenkowskiÛªs home stateÛÓprivileges enjoyed by no other taxpayers.</br></br>The law of this land is that every taxpayer must bear the responsibility of proving the deductions claimed on the annual Form 1040 are legitimate. If the Internal Revenue Service questions the deduction you took for medical expenses, you have to prove you were sick.</br></br>But that rule of law will not apply to some 200 wealthy commodity traders who have been accused by the Internal Revenue Service of perpetrating one of the most costly tax dodges ever discovered.</br></br>For these privileged individuals, there will be a presumption that certain deductions they have claimed are legitimate. Only if the IRS can prove otherwise will the deductions be denied. | no | 0 |
Reagan Won't Seek Fixed Money Boost By NATO Members | . scrap President CarterÛªs biggest NATO initiative:; getting alliance members to commit themselves to increase defense spending by . at least 3 percent a year after allowing for inflation.</br></br>In an apparent policy shift expected to delight 'NATO partners, particularly West Germany and Britain who contend an inflexible 3 percent increase is too demanding, Defense Secretary-designate Caspar W- Weinberger said he does not believe in holding allies to such a rigid standard.</br></br>While stressing NATO and other friendly countries must join the United States in doing more to shore up their own defenses and keep world sea-lanes open, Weinberger kicked President CarterÛªs 3 percent standard toward the ash can with these: words at his Senate confirmation hearing on Tuesday: "I donÛªt know that it is particularly useful to de-i , mand or talk about specified or fixed percentagesÛ of increases in friendly countriesÛª defense budgets.. Instead, he indicated the Reagan administration will settle for a generalized commitment.</br></br>"It is in everyoneÛªs interest in NATO and Japan' and elsewhere to join in this effortÛ by the United States to right the adverse military balance between the West and the Soviet bloc, Weinberger said.</br></br>1 "ItÛªs a mutual enterprise in which everybody has . exactly the same interest,Û he added. "I donÛªt think itÛªs an effective measure simply to look at how, imuch or what percentage. I would like to see the; end result. I donÛªt believe in these fixed percentages.; I think sometimes they may be too low and some-; Û÷times they may be high enough to involve some waste. What I would like to look at is the end prod-i ;uct; are we getting the strength we need? ThereÛªs no1 ÐÊdoubt that requires increased percentages, but by; the same token I think we will get a far more effec-i tive result if we look at what we are getting for it.Û ' | no | 0 |
Dow Makes Modest Gains As Crude-Oil Prices Jump | Crude-oil prices jumped, some investors had second thoughts about the risk of inflation, and others took profits from Wednesday's rally, leaving stocks little changed at the end of the day.</br></br>The Dow Jones Industrial Average inched up 13.62 points, or 0.1%, to close at 12461.14. It is now off just two points from where it started the year. Exxon Mobil, a Dow component, led the way, rallying 1.5% due to the rise in crude prices.</br></br>The blue-chip average has now risen four straight days, including a 159.42-point jump on Wednesday prompted by Federal Reserve comments on interest rates.</br></br>Oil futures for May delivery rose 3.5%, or $2.08, to $61.69 a barrel, now up 1% on the year at the New York Mercantile Exchange. It was the third straight rally in the oil market, which has been beset by jitters over falling U.S. fuel inventories and the prospect for rising demand as the weather warms and drivers hit the road.</br></br>Except for oil producers, however, most companies are hurt by higher fuel prices, which raise production costs and sap consumers' purchasing power. That helped to push some stocks lower yesterday. | yes | 1 |
Independent Survey Sought Of Institutional Stock Deals | NEW YORK, March 1ÛÓ| While the Securities and I Exchange Commission waits! for congressional action on its proposed study of institutional trading in the stock market, groups in and out of the securities industry are continuing work on plans for an independent</br></br>Groundwork for an outside study has been under way for several monthsÛÓeven before the idea of an SEC project was suggested by Rep. John E. Moss (D.-Calif.) during hearings on the mutual fund reform bill last October. So far, none of the plans has been given a clear go-ahead and the ,earliest likely starting date is said to be early fall.</br></br>Securities industry people here have made no secret of their desire to sec the study done by an outside organization. Last Novermber New York Stock Exchange president Robert W. Haack told the Harvard Business School Club that the project should not be done by the industry, since it might be considered self-serving. He also said it should not</br></br>Other indusrty executives, while admitting the usefulness of an institutional study, have also expressed discomfort over having the survey conducted by the SEC, conjuring up visions of the mammoth 1963 special study of securities markets.</br></br>The concept of an outside study, with information being ;supplied by both the SEC and the industry, has run into several snags. | no | 0 |
Trade Deficit Cut Sharply During April: Trade Deficit Is Narrowed in April | The Unted States trade deficit narrowed sharply in April, as exports climbed 4.0 per cent and imports fell 0.1 per cent, the Department of Commerce reported yesterday.</br></br>While the nation imported $202.1 million, more than it exported, that is a much smaller deficit than the $650.9 million imbalance it recorded in March.</br></br>Mainly because the recession in the United States stifled import demand here more than . the recession abroad cut U.S. exports, the Unted States ran a big, $11 billion surplus in its foeign trade account last year.</br></br>Even though the economy suffered its worst recession in more than 30 years, the strong trade performance helped moderate the steep downturn in the economy.</br></br>For the frst several months of this year, however, the trade ledger has shown a deficit, in large part because the improving economic climate in the Unted States boosted demand for foreign products. | no | 0 |
Worries Depress Market: Dow Loses 11.89 More In Decline | NEW YORK, Feb. 23 (AP) ÛÓStock market prices were hit hard today by an apparently growing load of economic and monetary worries.</br></br>11.89 to 959.89, its lowest close since last Oct. 31. The drop was slightly more than the combined loss of 11.81 points accumulated in WednesdayÛªs and Thursday's trading.</br></br>Losers predominated over gainers by 1,049 to 388, close to 3 to 1, on the New York Stock Exchange as volume reached a modest total of 15.45 million shares.</br></br>Prices on the American Stock Exchange slumped further after hitting Thursday their lowest level since Dec. 16. 1971.</br></br>The AmexÛªs price change-index was down .09 at 25.07. Among the 1,168 issues that changed hands, losing issues more than doubled the gainers, 584 to 261. Turnover amounted to 3.94 million, compared with 3.16 the day before. | no | 0 |
Ahead of the Tape | [Today's Market Forecast]</br></br>Idle Chatter</br></br>At some point, they will be right.</br></br>Economists keep forecasting that payrolls will have a decent month. This time, they expect the Bureau of Labor Statistics to report this morning that payrolls rose by 125,000 in February. But the poor dears won't forecast what they really believe, which is that it is finally time for the figure to be substantially higher. Hey, they might be right this month. Or not. They have been so wrong on the labor market for so long that they are gun-shy.</br></br>If the figure comes in well above expectations, it could be the turn that the bond market has been expecting. Bond investors will likely think it means the Fed will move interest rates up sooner, and they will sell, at least for a few hours. This interpretation could easily turn out to be mistaken; the Fed continues to signal its anomalous caution. It is hard to see the Fed feeling pressure to raise rates until the labor market has unambiguously improved over the course of several months and official measures of inflation rise. That argues for tightening next year. | no | 0 |
Crossbreeding Comes to the CD: Banks Offer Hybrid Certificates of... | Because returns on certificates of deposit are so low, some companies have tried to make them more attractive by h</br></br>Because returns on certificates of deposit are so low, some companies have tried to make them more attractive by h ) linking them to more profitable, but riskier, indicators. Here are three examples of some unconventional CDs:</br></br>NationsBank offers a CD linked to the performance of the stock market, as measured by the Standard & PoorÛªs 500 stock index. This example assumes a $10,000 investment at the beginning of1988, fora period office years:</br></br>Blackfeet National Bank offers a tax-deferred CD that matures after the owner reaches age 65. Part is then paid out as a lump sum; the rest is paid in monthly installments for the rest of the owner's life. This example assumes installments of $93.47, or 216 payments, which last until the owner is 83. However, the bank continues to make payments if the owner lives longer</br></br>College Savings Bank offers a CD with an interest rate based on the inflation rate of college tuition. This example shows three possible scenarios for growth in this CD, assuming an initial investment of$2,129: | no | 0 |
One Word for Playing This Market -- 'Defense!' | Even with massive efforts to prop up the economy and banking system, the stock market is facing significant head winds that may persist through much of 2009. That means remaining cautious with your investments for many months to come until it becomes clearer whether these steps will bear fruit.</br></br>It's now been nearly two years since the collapse of the real-estate bubble began. But it was only late last year that the real impact began to be felt by consumers.</br></br>In previous downturns, consumers mostly kept spending, thanks in large part to easily available credit from banks and credit-card companies.</br></br>Meanwhile, in recent decades the already dominant role of the consumer in the U.S. economy became even larger. By the end of last year, consumer spending accounted for 70.4% of U.S. gross domestic product, up from around 63% in the late 1970s. In recent years, the savings rate in the U.S. turned negative, meaning consumers were spending more than they made.</br></br>But that lending has been choked off, and jobs have vaporized, sending the unemployment rate to its highest in 16 years. Consumers have responded by pulling back on their spending. | no | 0 |
Currency Traders Face Bumpy Ride As Questions on Rates, EU Hit Market | NEW YORK -- Currency traders may be in for a bumpy ride this week as serious questions about interest rates, European Union and global trade bombard the market.</br></br>Market participants face a host of U.S. economic indicators that hold clues on the outlook for U.S. interest rates. What's more, Italy's chances of participating in Europe's single currency plan from the start hang in the balance as the country tries to put together a temporary government that can pass its 1998 budget. Meantime, U.S.-Japanese trade tensions have resurfaced in force, beating the dollar back below 120.00 yen.</br></br>Late Friday in New York the dollar was quoted at 1.7485 marks, up from 1.7435 marks late Thursday in New York. The U.S. currency also was quoted at 119.85 yen, down from 121.14 yen. Sterling fell to $1.6215 from $1.6244. About noon Monday in Tokyo, the dollar was trading at 120.23 yen and at 1.7508 marks.</br></br>"There isn't a [market] trend at this point. It's more just a matter of being reactive," said Scott Pardee, a senior adviser at Yamaichi International America in New York.</br></br>The renewed expectation of higher rates in the U.S. should lend some support to the dollar, especially if data on prices, sales and production slated for release this week provide Federal Reserve Board Chairman Alan Greenspan with ammunition to follow up on his intimations of higher rates. | yes | 1 |
Trade deficit fell sharply in November | AuthorAffiliation Staff Reporter of The Wall Street Journal</br></br>The deficit in goods narrowed $1.3 billion to $12.48 billion, while the services surplus shrank, too, to $5.42 billion from $5.58 billion.</br></br>The November deficit represents the fourth consecutive month in which the trade deficit narrowed, according to yesterday's Commerce Department report. Clinton administration officials quickly seized on the November improvement as evidence that America's worrisome trade deficit has finally turned around for good. "Obviously, we're going in the correct direction," U.S. Trade Representative Mickey Kantor said. He and Commerce Secretary Ron Brown noted that the trade picture improved despite weak economic growth in Canada, Mexico and Japan, the major U.S. trading partners.</br></br>But economists, while surprised by the narrowed deficit, cautioned that the U.S. trade picture isn't exactly radiant and the deficit isn't likely to keep shrinking in coming months. "Our trading partners are probably under the same kinds of competitive pressures which we are," said Alan Levensen, an economist with UBS Securities in New York. Foreign producers, he said, are encountering sluggish U.S. demand in much the same way U.S. exporters have been plagued by weak demand abroad. "We've improved so much in November that you'll see a widening after this," he predicted.</br></br>The trade gap with China, which expanded most of last year, contracted in November to $2.75 billion from October's $3.63 billion. But that's not likely to ease deepening trade tensions between Washington and Beijing. Yesterday, Mr. Kantor, who has been monitoring reports that China sold nuclear weapons-related equipment to Pakistan last year, warned that the "overall atmosphere" between the U.S. and China "does have some effect" on trade issues. That includes whether the U.S. will slap more than $1 billion in trade sanctions on China if Beijing doesn't crack down on copyright violations. | no | 0 |
JetBlue Gets in Spirit; Ceragon, Netlist Gain | Author: Kristina Peterson</br></br>Small-capitalization stocks advanced modestly, as hopes for global growth spurred riskier investments.</br></br>Small-caps clung to a slim lead as euro-zone data and comments from a Federal Reserve policy maker brightened the outlook for a global economic recovery.</br></br>The Russell 2000 index rose 3.27 points, or 0.5%, to 652.27, its fourth consecutive positive day. That marks the measure's longest advancing streak since the four days ended April 23.</br></br>The Standard & Poor's SmallCap 600 index advanced 1.62 points, or 0.5%, to 348.49. | no | 0 |
NATIONAL BRIEFING | Running big budget deficits threatens the health of the U.S. economy and could cut the nation's standard of living, Federal Reserve Chairman Ben S. Bernanke said.</br></br>The budget deficit totaled $319 billion last year, less than in 2004 but still the third-largest deficit ever recorded. This year, the White House forecasts a budget deficit of $423 billion -- a record in dollar terms.</br></br>As baby boomers start retiring and collecting Social Security and Medicare benefits, the budget will come under "severe pressure," Bernanke said in a written response to questions from Sen. Robert Menendez (D-N.J.) after the Fed chief's remarks at a congressional hearing on the economy in February.</br></br>U.S. retail sales fell last month after the biggest gain in more than four years, as auto purchases declined and the return of cold weather discouraged shoppers.</br></br>The 1.3 percent decline was the first decrease in six months and followed a revised 2.9 percent rise in January that was larger than initially estimated, the Commerce Department said. Excluding automobiles, sales fell 0.4 percent last month after rising 2.6 percent in January. | no | 0 |
Building Freeze Lift Criticized | will be seen today on the of the 42d annual Georgetown House Tour sponsored by St. John's Church, One ot the houses today will be this, small row house owned by Mr. and Mrs. Egbert G.</br></br>NEW YORK, April 12 (UPI) President Nixon's mid-rch lifting of the freeze on erally-funded construction rk contradicts government licy on inflation and hous-problems, a leading con-uction economist said to-ht.</br></br>George A. Christie, vice [esident and chief economist jr McGraw-Hill's F. W. Dodge ision, said the pattern of nstruction contracts awarded the first two months of 1970 ntinued to be an exception y high volume of nonresi-ntial construction.</br></br>DodgeÛªs monthly report owed a 13 per cent rise in nresidential building and a per cent rise in nonbuilding nstruction in the first two nths of this year compared th the same 1969 period, sidential building, however, s down 17 per cent.</br></br>Û÷Under these circum nces,Û Christie said, ÛÏit ems a strange time to lift t SeptemberÛªs restrictions federally funded construe-n work, as was done two eks ago. | no | 0 |
Stocks Ease 7.18 Points; Bonds Slip --- Tokyo Early Trading Wary to Iraq Offer; Dollar Edges Lower | Fears that a land war may break out at any moment in the Middle East held stock and bond prices hostage.</br></br>The Dow Jones Industrial Average lost 7.18 points to 2891.83 in active trading. Bond prices slipped modestly and the dollar was down slightly against the mark and yen in late New York trading.</br></br>Analysts said uncertainty about the Middle East situation put many investors on hold. Although most investors seem to believe that allied forces would be victorious if a land battle were to start, the almost certain sharp increases in U.S. casualties could introduce a depressing note to an otherwise ebullient stock market.</br></br>Still, many analysts remain convinced that the Dow Jones industrials are headed for the 3000 mark in the next few weeks. Kenneth Hackel, a money manager at Systematic Financial Management in Fort Lee, N.J., said the industrials' rise to 3000 and above will be fueled by investors who so far have remained out of the market.</br></br>"The investors who have been on the sidelines on the premise that it's better to be safe than sorry have been both safe and sorry," he said. | no | 0 |
Economy Gives Social Security a Reprieve --- Latest Forecast Extends Trust Fund's Solvency By Three Years, to 2032 | WASHINGTON -- The robust economy has postponed the day of reckoning for Social Security's solvency by three years, until 2032, according to new estimates from the program's trustees.</br></br>And, at least in the near term, last year's balanced-budget law has greatly improved the outlook for Medicare, the federal health program for 38 million elderly and disabled people. It should stay solvent until 2008, seven years longer than the trustees projected last April, largely because the balanced-budget law lowers Medicare spending by $115 billion in the next five years.</br></br>The Social Security trust fund, which pays retirement and other benefits to 44 million Americans each month, had been expected to go broke in 2029 as Americans live longer and the baby boom retires. But the "strength in the U.S. economy" has almost single-handedly bought the system another three years, said Treasury Secretary Robert Rubin, a trustee. The six trustees -- two private citizens and four government officials -- oversee the financial operations of the Social Security and Medicare trust funds and report on them to Congress each year. The trustees expect lower inflation and unemployment rates, higher productivity and inflation-adjusted wage gains and a smaller decline in average hours worked in the next 10 years than they had projected in last year's report. The rosier outlook reflects both the economy's recent superlative performance and expectations about the near future. With more Americans working, payroll taxes paid to support Social Security are expected to rise more than previously thought. And with lower price inflation, yearly cost-of-living raises to retirees will likely be smaller.</br></br>As a result, the size of Social Security's projected 75-year deficit declined slightly to 2.19% of taxable payroll from the 2.23% projected last year. And the balanced-budget agreement halved Medicare's projected 75-year deficit to about 2% of taxable payroll.</br></br>The trustees' updated projections still are more conservative than the most optimistic observers: They expect the U.S. economy to grow about 2% a year on average in the next decade, about fourtenths of a percentage point slower than in the past decade. | yes | 1 |
Liberal Tax Revolt; Some Democrats decide they prefer lower rates. Obama isn't one of them. | There's nothing like the prospect of an electoral rout to concentrate the incumbent mind, and so all of a sudden rank-and-file Democrats in Congress are saying maybe they shouldn't let the 2003 tax rates expire after all. Now if they can only persuade their Speaker of the House, the Treasury Secretary and President Obama.</br></br>The revelation that tax increases could hurt the economy has recently been heard from Senators Evan Bayh of Indiana, Ben Nelson of Nebraska, and, most surprising, even from Kent Conrad of North Dakota. On a scale of unlikely events, this is like the Pope coming out against celibacy. As Senate Budget Chairman, Mr. Conrad has rarely seen a tax increase he didn't like, but this week he averred that "As a general rule, you don't want to be cutting spending or raising taxes in the midst of a downturn."</br></br>Over in the House, Bobby Bright of Alabama even dared to defend the rich Americans who Democrats have been pounding for years. "I don't care if it's the wealthiest of the wealthy. You don't raise their taxes," he told The Hill newspaper. "In a recession you don't tax, burden and restrict." Better don the body armor on your next visit to the Speaker's office, Bobby.</br></br>Even Jerrold Nadler, a liberal from central casting, is worrying publicly that the tax hike will hit his New York constituents too hard. And he's certainly right given that the combined top state and federal income tax rate will be close to 54% in 2011 in New York City. Mr. Nadler is proposing--seriously--to adjust the income tax brackets based on regional cost of living so fewer New Yorkers pay the rates Mr. Nadler has spent a decade saying "the rich" should pay. How about if we compromise and keep rates lower for both Nebraska and New York?</br></br>These are hardly supply-side conversions, but they're a start. The economic recovery is far from robust, and socking it with one of the largest tax increases in history in January is not going to make anyone more eager to invest or create new jobs. Even Lord Keynes opposed raising taxes in a recession, and good Keynesian Democrats like the late economist Walter Heller persuaded JFK to cut tax rates in the 1960s. Those cuts kicked off that decade's economic boom. Only in the age of Obama have Democrats convinced themselves that the best "stimulus" is higher spending and higher taxes. | no | 0 |
Mutual Funds Quarterly Review: Money Funds' Slide Expected to Continue | Investors waiting for an upturn in yields on money market mutual funds are going to have to wait awhile longer.</br></br>The slide that began three years ago slowed in the second quarter, but there's no sign of a reversal soon. Indeed, following yesterday's Federal Reserve moves to bring down short-term interest rates, some fund managers expect yields to decline as much as a quarter of a percentage point over the next few months.</br></br>"It won't be until next year that we'll see any changes," and even then, increases will be gradual, predicts Walter Frank, chief economist for the Donoghue Organization, an Ashland, Mass., firm that tracks money funds.</br></br>Yields have been falling steadily for three years, late last year reaching the lowest levels since Donoghue began keeping data 15 years ago and then dropping even further. The average seven-day compound yield, which assumes reinvestment of dividends, ended this year's second quarter at 3.50% for all taxable funds, compared with 3.80% three months earlier and 4.61% at the end of last year.</br></br>The average yield for funds open to individual investors was 3.48% in the second quarter, down from 3.84% in the first quarter. | yes | 1 |
Truman Says Recession Paralyzed Republicans | ÛÏThe present Administra-] has fought, stalled or vetoed almost every constructive1 measure designed to relieve the economy,ÛªÛª the former President said in a prepared address. I</br></br>Mr. Truman and House Speaker Sam Rayburn of Texas headlined the speaking program at a 510-a-plate dinner in the State Fairgrounds Youth Center to raise funds for Ohio Democratic congressional candidates.</br></br>The Eisenhower Administration. Mr. Truman said, ÛÏvetoed two farm-price support bills. It held up vital public works programs for many months, it limited the extension of unemployment compensation by threatening a veto if an adequate bill was Ipassed. And it approved the emergency housing program only with grave misgivings and an appeal for higher interest rates on home loans.</br></br>"This is the record. It shows that the Republicans are paralyzed' in the face of the recession, because they canÛªt do anything that would offend the people they representÛÓthe special interests and</br></br>V. DiSalle of Toledo, his former Price Controller who is in his second contest for Governor * of Ohio. | no | 0 |
Bond Rally Helps Lift Dow 19.17 | The Dow Jones industrial average climbed 19.17 points to close at 3857.65, and made most of its gain in the final 30 minutes. Advancing issues outnumbered declining ones by about 3 to 2 on the New York Stock Exchange, where trading volume rose to</br></br>The bond market rally that lifted stocks was triggered by revived strength in the dollar and plunging precious metals prices. The price of the TreasuryÛªs main 30-year bond advanced 23/32 point, or $7.19 per $1,000 in face value. The yield fell to 7.85 percent from 7.91 percent.</br></br>Traders and investors bought bonds amid a rally in the dollar to a 21-week high against the Japanese yen. Traders believed the stronger dollar could draw some foreign investors to dollar-denominated investments, which include U.S. Treasury securities.</br></br>In addition, the rising U.S. currency reassured investors worried about inflation, which tends to diminish the value of fixed-income securities.</br></br>100.68 late Tuesday. The dollar also changed hands in New York at 1.5593 German marks, up from 1.5562. (By midday Thursday in Tokyo, the dollar was slightly lower, trading at 101.10 yen.| 4.7 percent against the dollar, reflecting continued weakness in MexicoÛªs financial markets and disenchantment among many investors with its plan to bolster its troubled economy. Late in Mexico City, the dollar fetched 5.5750 pesos vs. 5.3250 Tuesday. | no | 0 |
Stocks Surge in Europe; Oil Retreat, Nokia Hearten Investors; Financials Jump | LONDON -- European shares surged Thursday, as investors were heartened by a continued retreat in oil prices and strong earnings from mobile-phone giant Nokia.</br></br>Beaten-down financial stocks jumped on better-than-expected results from U.S. banks.</br></br>The pan-European Dow Jones Stoxx 600 index jumped 2.9% to 276.27, its biggest one-day gain since April 1.</br></br>Lower oil prices also helped boost stocks in Asia, as did buying in financial stocks.</br></br>"The rebound is not fundamentally driven. The markets will perhaps stabilize in the short term, but when you consider that nothing has changed, markets could head lower after a short gap," said Linus Yip, strategist at First Shanghai Securities in Hong Kong. | no | 0 |
Iraq Crisis Shows U.S.'s Nonpareil Power, Yet Exposes Weakness in Economic Role | WASHINGTON -- There hasn't been much doubt in recent days about what nation is the most powerful. The Iraq crisis shows that the U.S. is the only true superpower.</br></br>All the talk about Japan or Germany being the new No. 1 has faded quickly -- at least for now. So has the idea that military power became irrelevant with the collapse of communism. These thoughts seem naive at a time when a military force has risen in the Persian Gulf that threatens the wealth on which Japanese and German clout has been built.</br></br>Only the U.S. has the means to move mass military force around the globe in days and to rally numerous other nations to the cause. And, for all its economic woes, the U.S. can back up that military might with an economy far larger than any rival's.</br></br>"This crisis in the Gulf is the answer to the argument that we've reached the end of history, that peace has broken out, that military power doesn't matter and the only coin of influence in the world is economic power," Harold Brown, a former defense secretary, said. These popular claims are being shown up as exaggerations.</br></br>But no matter how good the crisis has made Americans feel so far, with President Bush rallying support by making frank allusions to stopping a new Hitler, it obscures the shift in the world power game. Military might still counts, but there is a new emphasis on economic strength, and the U.S. isn't well prepared to retain that aspect of global leadership. | yes | 1 |
New Peak Set on Heavy Turnover: Sales Hit 4-Month High | NEW YORK, March 13 (AP)ÛÓThe stock market churned to another record high today on the heaviest volume in more than four months.</br></br>Selected issues both among the blue chips and more speculative stocks ran up gains of from 3 to 9 points or so.</br></br>For most key stocks, however, the advances were kept within a 1-point range and there was a wide assortment of losers. This kept the over all advance to moderate proportions.</br></br>A huge accumulation of overnight orders led to the pile-up of a string of unusually large blocks and first-hour volume of 1,140,-000 shares, the biggest in quite a while.</br></br>Volume soared to 4,880,000 shares compared with'4,690,000 yesterday and was the largest since last Nov. 6 when 4,890,000 shares changed hands. | no | 0 |
The Democrats' Meal Ticket | Dianne Feinstein, fresh in from the California gubernatorial race for last night's big summer Democratic fund-raising dinner, was chatting with reporters about how the budget deficit has caused Americans "to start to realize that the Republicans aren't the panacea," when up rushed Rep. Beryl Anthony Jr. (Ark.), chairman of the Democratic Congressional Campaign Committee.</br></br>He was delighted that Feinstein was there in the great hall of the National Building Museum downtown-a bright spot in an otherwise somewhat low-key, business-suited crowd of roughly 700 overheated politicians, lobbyists and party loyalists-and immediately took her in tow to introduce her around. "She'll be the next governor of California," said House Speaker Thomas S. Foley (Wash.), after the two had talked animatedly at a reception before the dinner.</br></br>In his dinner speech, former Democratic National Committee chairman Charles T. Manatt noted that the former San Francisco mayor likes it pronounced Fein-STINE, not STEEN, and had once, when visiting New York Mayor Ed Koch persisted in mispronouncing it, warned him in public that she might begin mispronouncing his name in a way that would raise high the roof beams.</br></br>That was the evening's only joke, unless you counted Foley's observation concerning the menu (herb-roasted flank steak, cold lobster and "medley of blanched and chilled vegetables") that "I'm not the veggie type."</br></br>What is it with the Democrats? At last year's summer party-the first ever-they had the hull of a sinking ship in the middle of the room, for reasons that never were completely made clear. | no | 0 |
Builders Dangle Cheap Financing; In the Face of Rising Interest Rates, Developers Are Offering New Incentives to Keep Houses Moving | WHEN AUTO makers wanted to keep cars moving off dealers' lots, they offered zero-percent financing. Now some home builders, worried that rising interest rates may clip the pace of new sales, have gotten into the act by making cheaper financing available to home buyers.</br></br>While the builders aren't offering no-interest loans, in some areas they are undercutting the rates offered by more traditional lenders. To entice buyers, big national builders such as KB Homes and smaller developers such as Estridge Companies in Carmel, Ind., are providing incentives ranging from below-market loans to offers to lock in low rates for up to six months.</br></br>In formerly hot markets like Denver and Austin, Texas, builders are sweetening financing deals, paying as much as $4,000 on a $200,000 mortgage to cover a buyer's closing costs.</br></br>Rising rates are expected to play an increasingly important role in the housing market during coming months. Earlier this week, the Federal Reserve raised short-term rates for the second time in two months and further increases are expected this year. While mortgage rates don't move directly in tandem with moves by the Fed, they are expected to rise as the Fed continues to rachet up rates.</br></br>The financial enticements from home builders are a relatively new but growing practice that the Fed highlighted last month in its "beige book" economic report. In response to rising rates, builders are "altering their financing products accordingly in an attempt to make them more attractive," the Fed noted. | yes | 1 |
Debate Over Jobless Benefits Resonates Near and Far | As Virginia gears up for a governor's campaign with national implications, a growing debate over federally funded unemployment insurance has become an early popularity test of President Obama's stimulus package and his vision of government's role in an economic downturn.</br></br>Democrats have been pounding the Republican-led House of Delegates and Robert F. McDonnell, the GOP's candidate for governor, since the House voted last month to reject $125 million in federal stimulus funds to bulk up unemployment benefits. Democratic candidates are increasingly convinced that voters will see the rejection of the federal dollars as a betrayal of struggling workers.</br></br>But Republicans have not backed down. Accepting the money would have meant agreeing to adjust Virginia's insurance program and accepting strings imposed by Congress that GOP leaders have said are symptomatic of an expansion of the federal government under Democratic control.</br></br>The fight represents a deep philosophical divide between the parties that voters are expected to weigh when they go to the polls in November.</br></br>"This is one that really matters. It's a very direct issue about what is the role of government and how should we respond to people in a very tough time," said Gov. Timothy M. Kaine (D), who accused lawmakers of turning their backs on the unemployed April 8 when the House voted 53 to 46, largely along party lines, to reject the funds. | no | 0 |
General List Dull, Lower | NEW YORK, June 3 (J*ÛÓA gyration by Du Pont was tile feature of a generally dull and declining stock market today.</br></br>Aircrafts took about the worst losses among the major divisions. Oils backed away from their recent gains.</br></br>Du Pont spurted 6 points ahead but closed with a net gain of a single point. The flurry came on news that the United States Supreme Court had ruled the company in violation of the anti-trust laws because it acquired 23 per cent of General Motors stock.</br></br>The quick rise came. Wall Street sources said, onÛª hopes by investors that Du Pont would spin-off its GM stock to its shareholders in the form of a dividend. There was also talk that even if Du Pont merely sold its GM stock it would not have to pay a capital gains tax if it were doing so under government order.</br></br>After the first enthusiasm wore off. brokers said, there were some second thoughts. Among them was the big question as to exactly how much GM stock Du Pont would divest itself of and how the decision would affect its big materials sales to GM. General Motors closed at 42Vi, off '-i. | no | 0 |
Now, the Local Races Are Awash in Cash | Jeffrey Osborn says he was surprised at how cheap it was to sway Loudoun County's elections. "The builders have been buying the county for just dirt," he says. So Osborn, a venture capitalist, set out to beat them at their own game by pumping more than $50,000 into the campaigns to support eight slow-growth candidates for the county board of supervisors in 1999. They all won.</br></br>Stunned by the defeat, pro-development interests in the Washington suburb have vowed to unseat the new board, which has sliced more than 80,000 houses from county plans. "If you are a major player in a billion-dollar industry, are you going to let your industry evaporate?" asked Bryan Brooks, a local developer. The developers' response? Up the ante.</br></br>That's no small threat in Virginia, known nationally as the Wild West of campaign finance. There are no contribution limits for state or local offices here, making anything possible. "If you want to give $6 billion to some guy who's running for sheriff or local delegate, you can do it," says Steve Calos, executive director of the Richmond-based Center for Open, Ethical and Accountable Government.</br></br>Big money goes small town? You betcha. Americans are used to thinking of national politics as the place where the big decisions get made -- and where the big money gets spent. That premise drove the campaign finance reform legislation President Bush signed last month. But that ballyhooed legislation did nothing to stem the flow of money to local and state campaigns. Local politics are just as fortified -- some say corrupted -- by cash as federal ones, and often more so. From the Blue Ridge mountain foothills of Loudoun to Laguna Hills, Calif., the excesses of K Street are flourishing on the Main Streets that lead to the nation's state houses, city halls and county buildings.</br></br>The most intimate arena of our democracy can also be the easiest to manipulate. A little money can go a long way in local contests. The rules are looser, and fewer people are watching to see if those rules are followed. Voter turnout is often lower, giving one-issue champions and special interest groups greater influence. As on Capitol Hill, contributions often make great investments. "People don't give money to honor America or show their love of democracy. They are buying something," says Calos. "Money buys results." | no | 0 |
Producer Prices Rise 0.5%; But It's Too Soon to Say Whether Pickup Augurs an Inflation Increase | WASHINGTON--A gauge of U.S. inflation surged in March, driven by volatile categories that may not push broader price measures out of their long stretch of sluggishness.</br></br>The producer-price index for final demand, which measures changes in the prices businesses receive for their goods and services, rose a seasonally adjusted 0.5% from February, the Labor Department said Friday. It rose 0.6% excluding the volatile categories of food and energy.</br></br>Economists surveyed by The Wall Street Journal had expected the index to rise a more modest 0.1%, and predicted a 0.2% increase excluding food and energy. It had fallen 0.1% in February.</br></br>The index was up 1.4% in March from a year earlier, the biggest year-over-year increase since last August.</br></br>"It could be that the difficult weather over the past few months has distorted prices, and wholesale inflation will settle down in April," PNC chief economist Stuart Hoffman wrote in a note to clients. "But there is also the possibility that inflation may be picking up, as firms raise prices given the recent limited acceleration in wage growth and stronger demand." | no | 0 |
Repeal Tax Cuts? There They Go Again | Senate Majority Leader Tom Daschle has now staked out his and his party's economic policies, and -- in tune with the styles of today -- they're retro. The Bush tax cuts, he says, could actually be making the recession worse.</br></br>To a veteran of the Reagan administration, all of this sounds pretty familiar. In 1981, shortly after the enactment of the Reagan tax cut, the economy slid into a serious recession. The tax cut, combined with the recession, resulted in a substantial deficit in 1982, and deficits "as far as the eye could see" thereafter.</br></br>Ronald Reagan's economic plan -- based on supply-side theory -- was a relatively new idea at the time, and the severe recession spread alarm through the political community. The deficits, it was thought, would bring back inflation, cause interest rates to rise, worsen the recession and slow or defer any recovery. The president was implored to back a tax increase, not just by the Democrats -- who wanted desperately to repeal or defer the tax cut -- but also by Republicans, who feared that the recession would decimate their ranks in the 1982 election.</br></br>Even members of the president's staff lost their nerve, with leaks from the White House complaining that Mr. Reagan would not listen to reason, and budget director David Stockman being quoted in a magazine article to the effect that Mr. Reagan didn't know what he was doing. Alone among the president's advisers, Treasury Secretary Donald Regan made the obvious point: It's absurd to raise taxes in the midst of a recession. Mr. Reagan, bless his stubborn heart, agreed with his treasury secretary and, as he put it, "stayed the course."</br></br>Sure enough, the economy didn't just recover -- it boomed. Despite the deficits, which did indeed continue at historic peacetime levels through Mr. Reagan's two terms in office, inflation and interest rates declined. The nation shook off the strange combination of slow growth and inflation that characterized the Carter years and grew at a healthy rate through the rest of the 1980s. The stock market, recognizing that a new and different economic policy had taken hold in Washington, surged to unprecedented levels. | yes | 1 |
Subsets and Splits
No saved queries yet
Save your SQL queries to embed, download, and access them later. Queries will appear here once saved.