Senate leaders attempted to hash out a last-minute deal to resolve the fiscal cliff conundrum Dec. 29, but as night fell with no sign of a breakthrough, optimism began to diminish. Minority Leader Mitch McConnell (R-Ky.), who on Friday told reporters he was “hopeful and optimistic” a … [Read more...]
Obama’s Ultimatum – Fiscal Cliff Compromise or Vote
President Barack Obama addressed the nation Dec. 28 following an hour-long negotiation with Congressional leaders on how to avoid the ever-approaching fiscal cliff. According to Obama, he has assigned Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell … [Read more...]
Fiscal Cliff Just Days Away and John Boehner Extends His Vacation
As the time to avoid the approaching fiscal cliff can now be counted in hours, President Obama and the Senate returned to Washington to resume work Dec. 27. The House of Representatives, however, will not return until Dec. 30—only 30 hours before the deadline. At this point, it’s hard … [Read more...]
Home Prices Indicate Economic Recovery Despite Looming Fiscal Cliff
Economic doomsday theorists may persist in their declarations that an unresolved fiscal cliff spells disaster for the U.S. economy, but recent data from Standard and Poor/Case-Shiller says otherwise. The organization’s national home price index, released Dec. 26, increased 4.3 percent … [Read more...]
“Super Saturday” and Holiday Spending was a Bust This Year
Consumers spent less than expected this holiday season as the shopping spirit was diminished by poor weather, economic concerns and national tragedy. According to MasterCard Advisors SpendingPulse, a report that tracks spending on holiday merchandise, spending in the two months prior … [Read more...]
Federal Reserve Economic Forecast Off-target
Low interest rates may be a bane to savers’ retirement plans, but they have been a blessing to home builders. As the Federal Reserve has continued its quantitative easing programs to keep interest rates near zero, single family home starts are expected to increase 25 percent in 2012 … [Read more...]
“Super Saturday” Christmas Sales May Surpass Black Friday
Many believe Black Friday to be the biggest shopping day of the year, but it may actually be the Saturday before Christmas, as procrastinating shoppers hit the stores looking for last minute deals to complete their loved ones’ wish lists. The industry has termed the day “Super … [Read more...]
Low Interest Rates Put Retires Financial Future at Risk
While many—mainly borrowers—have been pleased with the Fed’s downward pressure on interest rates, the program is placing many retired Americans’ long-term security at risk. Interest rates are at their lowest point in 100 years as the Federal Reserve tries to stimulate the economy and … [Read more...]
Research In Motion (RIMM) Loses 1 Million Subscribers
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Just one month before troubled Research In Motion (NASDAQ: RIMM) is set to debut its long-delayed Blackberry 10 operating system, the Canadian company reported a loss of one million subscribers during the fiscal third quarter. The drop to 79 million customers marks the first such loss … [Read more...]
Intercontinental Exchange (ICE) to Buy New York Stock Exchange (NYX)
Dec. 20 marked the end of a more than 200-year-old era, when Atlanta-based Intercontinental Exchange, Inc. (NYSE: ICE) announced it would purchase the New York Stock Exchange for $8.2 billion. Although 12-year-old startup ICE stated little would change for the iconic Big Board based … [Read more...]
US Treasury is Expected to Lose Billions on General Motors Stock Buyback
The US Treasury is expected to lose billions of dollars when it sells its remaining stake in General motors over the next 12 to 15 months. General Motors plans to pay $27.50 per share—an 8 percent premium over the Dec. 18 closing price—but well below the $33 price set in November … [Read more...]
Apple Attempts to Put the Squeeze on Samsung and Gets Denied
Just in time for the holidays, Apple Inc. (NASDAQ: AAPL) and Samsung Electronics Co. may be reaching a truce of some sort in their global litigation over smartphone patents. A San Jose Calif. court ruled Dec. 17 that Apple had not proven its case requesting an injunction barring the … [Read more...]
Sprint Nextel Secures Clearwire Deal and Stock Prices Don’t React
Sprint Nextel Corp. (NYSE: S) announced Dec. 17 Clearwire Corp. (NASDAQ: CLWR) accepted its bid to buy the remaining 50-percent stake in the company it does not already own for $2.97 per share—an increase over its original Dec. 13 offer of $2.90 a share. The $2.2 billion price is 128 … [Read more...]
Should Obama Help Unions Oppose Right-to-Work Laws
President Obama broke his silence on right-to-work laws last week when he spoke out against the labor battle transpiring in Michigan. “We should do everything we can to keep creating middle-class jobs that help folks rebuild security for their families,” Obama said in a Dec. 10 … [Read more...]
Health Care Reform Causing Businesses to Cut Employees to Part Time
After receiving heavy criticism, Darden Restaurants—parent company of Olive Garden, Red Lobster and Longhorn Steakhouse—has retracted its threat to cut employee hours part time in order to avoid offering health insurance. In October Darden announced its plans to “experiment” with … [Read more...]
Freddie Mac: Mortgage Rates Near Record Lows, Home Prices Up in November
The housing market may have a long to reach full recovery, but it’s certainly bouncing back from the Great Recession. According to a new report from Freddie Mac, rates for 30-year mortgages have dropped to just 3.32 percent, barely more than the record low dating back to 1971. … [Read more...]
OPEC Leaves Oil Production Quota at 30 Million Barrels Per Day
As expected, OPEC ministers agreed at a Nov. 12 meeting to keep their daily crude production target at 30 million barrels a day. The 12-nation organization hopes to keep crude prices up, in spite of increased US oil production and a weakened global economy, which OPEC calls the … [Read more...]
Yahoo Executive Blake Irving Jumps Ship to Take the Helm at Godaddy
Former Yahoo! Inc. (NASDAQ:YHOO) chief product officer Blake Irving will take the helm at Go Daddy effective Jan. 7. The private web-hosting company has often been better known for its controversies—former CEO Bob Parsons videotaped himself killing an elephant and the company … [Read more...]
U.S. Officials Slap Standard Chartered with $327 Million Penalty
Standard Chartered (STAN:LN) will pay $327 million to settle federal and New York charges it laundered money on behalf of four sanctioned nations between 2001 and 2007. The US Treasury’s Office of Foreign Assets Control announced Dec. 10 will conclude a years-long investigation into … [Read more...]
McDonald’s Makes a Comeback with Impressive November Sales
McDonald’s Corporation (NYSE: MDO) announced Dec. 10 its global sales in restaurants opened at least 13 months rose 2.4 percent in November. The same figure in the U.S., however, increased by 2.5 percent, compared to just 1.4 percent in Europe. … [Read more...]
