06/19/2010 (1:39 pm)

Oil spill victims get a break on mortgage payments

Filed under: management |

Mortgage borrowers hurt by the Gulf oil spill may qualify for temporary relief from paying their mortgages, without fear of losing their homes.

Citigroup’s (C, Fortune 500) CitiMortgage unit announced Wednesday that it would suspend all foreclosure sales and filings for 90 days, through Sept. 17, on its Gulf properties. The policy applies only to first mortgages that Citi owns on homes that are within 25 miles of the coast.

Fannie Mae, the government-supported mortgage company, also touted its own relief policy Wednesday, saying that servicers of Fannie-backed loans may immediately suspend or lower payments on mortgages for borrowers whose income or property were affected by the spill.

"This was a reiteration of special relief policies that Fannie Mae has had for a while," said Janis Smith, a spokeswoman for Fannie.

"Borrowers who hope to obtain relief under this policy should call their servicers right away," Smith said. "They should not sit around waiting for a call."

Under the Fannie Mae program, servicers can offer to postpone or lower payments for up to 90 days, during which the servicer is expected to verify the borrower’s income loss or the damage the oil spill may have done to their property.

Freddie Mac, the other government-supported mortgage giant, will grant up to six months forbearance to victims of the oil spill.

Other lenders have similar policies in place; all of them are trying to get the word out so that borrowers hit by the disaster know that these options are available.

During these forbearance periods interest continues to accrue, so borrowers aren’t exactly getting a free lunch.

It is, however, an opportunity for these homeowners to avoid laying out cash when they can least afford to do so.

They’ll eventually have to pay the money back — if they keep their homes. 

Source

06/18/2010 (2:54 am)

May housing sales up in Maui County

Filed under: technology |

Sales of condominiums in Maui County doubled last month, while sales of single-family homes rose 35 percent.

There were 104 condo units sold in May, including two on Molokai, which was 100 percent more than the 52 units that sold in May 2009, according to the Realtors Association of Maui.

There were 81 single-family houses sold on Maui alone last month, a 35 percent increase compared to the 60 homes that sold on Maui, Lanai and Molokai during the same month last year.

Prices, however, didn’t follow suit. The median price for a single-family house was $442,000 in May, an 8 percent decline from $482,500 in May 2009.

The median price of a condo in Maui County last month was $412,500, which was a 3 percent increase compared to $399,000 in May 2009 Payday Loan for Bad Credit.

Year-to-date, single-family home sales are up 49 percent compared to last year, while the median price for the first five months of the year is $460,000, down 9 percent.

Condo sales for the first five months of the year are up 59 percent; however, the year-to-date median price for a condo in Maui County is $427,750, a 34 percent drop from the same period last year.

Source

06/14/2010 (7:27 am)

IKEA recalls more than 3 million blinds

Filed under: money |

IKEA is recalling more than 3 million additional window blinds after a child nearly strangled earlier this year, the government said Thursday.

This expands the furniture retailer’s previous recalls of the same types of blinds, bringing the total number of blinds recalled to more than 4.5 million.

All Roman blinds and roll-up blinds sold at IKEA nationwide from 1998 through June 2009 for between $5 and $55 are included in the recall, according to a statement from the U.S. Consumer Product Safety Commission.

Roller blinds without a tension device attached to the beaded chain are also part of the recall, because a child’s neck can become entangled in the looped chain if it isn’t attached to a wall or floor.

The three types of blinds were all recalled due to the risk of a child being strangled by a cord.

CPSC said the recall was announced a new report that a 1 year old boy had nearly strangled on a cord in February.

Previous recalls by IKEA of the same types of blinds came after reports that one child died and another was almost strangled cheap payday advance. About 790,000 Roman blinds were recalled in 2008 and 2009 and 533,000 roller blinds were recalled in 2009.

Roman blinds can cause strangulation if children pull the blind’s exposed cord out and wrap it around their necks, or put their necks between the blind’s inner cord and the back of the blind.

Roll-up blinds can strangle a child puts his or her neck in the loops used to lift the blinds after it falls off the blind.

Consumers should immediately stop using all Roman blinds and roll-up blinds and return them to IKEA for a full refund. Roller blinds without a tension device attached to the chain can also be returned.

For additional information, consumers can call IKEA toll-free at (888) 966-4532. 

Source

06/08/2010 (5:20 pm)

The Fox Co. wins $79K N.C. contract

Filed under: online |

The Fox Co. has been awarded a $78,925 contract to supply sewing equipment to the state of North Carolina.

The Charlotte-based company manufactures cloth spreaders, cutting and measuring machines.

It won the contract as part of the new N.C. Preference program, which gives N.C. companies whose bids are within 5 percent or $10,000 of the lowest out-of-state bidder the opportunity to match the out-of-state price and be awarded the contract.

“It’s critical that we do everything we can to support our home-grown businesses,” says N.C. Gov. Bev Perdue. “The preference for in-state businesses will save jobs and help North Carolina businesses grow and create new jobs.”

Source

06/07/2010 (7:33 pm)

AIG payback plan back to square one

Filed under: marketing, technology |

AIG and Prudential PLC formally terminated a deal for an Asian life insurance unit on Thursday that would have accelerated AIG’s bailout repayment to the U.S. government.

The announcement comes two days after AIG rejected Prudential’s reduced bid for AIA, AIG’s Hong Kong-based life insurance division. In early March, the companies had agreed upon a $35.5 billion price tag for AIA. But it became apparent over the past few weeks that Prudential’s shareholders were not going to accept the deal.

Prudential attempted to renegotiate the terms of the deal with AIG, offering $30.375 billion instead. Prudential PLC is not related to the American insurer Prudential Financial Inc.

AIG has said that it considers the sale of AIA to be a crucial component of its effort to repay the more than $130 billion it has borrowed from U.S. taxpayers. The troubled insurer had planned on using the proceeds of the sale to pay down $25 billion of its debt to the Federal Reserve.

When the deal was first announced on March 1, AIG’s Chief Executive Robert Benmosche said the deal would allow AIG "to realize value on a faster track to repay U.S. taxpayers" and will give the company "greater flexibility" with its restructuring plans.

Now that the deal has fallen through, AIG may consider an initial public offering for AIA, an option that the company had initially proposed last year. An IPO would take much longer to complete than a direct sale, and the recent market turmoil may dictate a lower price for the unit.

According a regulatory filing, AIG will receive a termination fee from Prudential worth £152.6 million ($223.9 million) on July 1.

Shares of AIG (AIG, Fortune 500) rose more than 1% in premarket trading Thursday. 

Source

06/03/2010 (11:06 am)

Lambert airport ready for Phase II of renovation

Filed under: marketing |

It has been called the front door to St. Louis.

So in an effort to improve the first impressions of visitors who walk through that door, officials at Lambert-St. Louis International Airport announced a major makeover in early 2007.

But more than three years later, the biggest renovation in the airport’s history — at a cost of $105 million — remains a major piece of unfinished business. Turbulence in the airline industry forced the airport to break the Airport Experience project into bite-sized chunks.

The first phase of work focused on the most pressing upgrades and is being wrapped up right now at a cost of $20 million. Clunky baggage carousels were replaced on the ground floor of the Main Terminal. The dingy domed ceiling above the main ticket counters has been restored with a bright, white surface. And many of the directional road signs have been replaced.

"You have to have an airport that you can compete with both cosmetically and aesthetically," said Airport Director Rhonda Hamm-Niebruegge. "The airlines don’t want their customers, if their flight is delayed for five hours, to sit there and have nothing to do. The more your airport has to offer helps the airlines when they have off-schedule days."

Later this summer, the airport will embark on the next phase of work — a $50 million interior renovation of the aging main terminal, and the A and C concourses.

The work will include:

— Replacing the hodgepodge of counters and terrazzo floors in the main ticketing lobby.

— Updating restrooms with new tile and fixtures.

— Improving the C concourse security-screening checkpoint.

— Brightening the cavernous lower level by removing the dark ceiling slats and adding recessed lighting.

— Incorporating art displays and a lower-level performance stage.

Lambert officials said the work would not only make the terminal more inviting, but would provide a boost to the beleaguered area job scene. The second wave of renovation work is expected to take about two years to complete and support about 150 skilled construction workers.

The improvements can’t come soon enough for passengers who use the airport.

"It’s dark and depressing down here" on the baggage-claim level, said Julie Kujawa of Mount Vernon, Ill., who was picking up family members returning from Orlando, Fla. "And there’s not much down here. The walls are dark. The ceilings are low."

Amy and Don Palumbo of suburban Washington said they had flown into Lambert before and had always been struck by the low ceilings and the cramped feeling they induce on the lower level.

"Compared to other airports," Amy Palumbo added, "it’s kind of old."

Gone from the original Airport Experience plan are the canvas awnings reaching from the Main Terminal to the hourly parking garage across the street payday advances. However, Hamm-Niebruegge said some projects could be reconsidered, if needed, when the second phase of work was completed in the fall of 2012.

The project will be financed using bonds sold in June 2009, Hamm-Niebruegge said. "The bonds are long sold. So you have to move forward with the project. They were sold for that specific purpose. That decision is not a returnable decision."

Even if it were, she said, the airport would still move forward with it.

One reason is that there were as many airline seats in June from Lambert as there were one year ago, although there are fewer cities served by nonstop flights from Lambert. That is largely because most of the aircraft added to the Lambert mix are larger planes, and they are replacing mostly regional-jet flights that were axed by American.

Bonds will be repaid with airport revenue, said Hamm-Niebruegge.

The piecemeal approach reflects the gradual erosion in flights at Lambert.

Last month, American Airlines cut its daily flight schedule by more than half to 36 daily flights to nine cities. By comparison, there were 82 daily flights to 20 destinations in November.

Other airlines — most notably Southwest Airlines — have jumped in to fill part of the void. Southwest, which is now the dominant carrier in the St. Louis market, announced nine additional daily departures to six new nonstop destinations. Four of those cities that Southwest flies to — San Diego, Nashville, New Orleans and Raleigh-Durham, N.C. — would have been unreachable by nonstop flights after American’s cuts. The two other cities — Los Angeles and Seattle — also will be served by competitors.

United Airlines and Delta Air Lines also have added flights.

Local business leaders have been clamoring for airport improvements since American Airlines made its first deep cuts to St. Louis flights in 2003. Airport staff and outside consultants began working on plans to improve the Main Terminal — which is significantly older and darker than the East Terminal.

Richard Fleming, president and chief executive officer for the St. Louis Regional Chamber and Growth Association, said air service came up consistently when companies considered expansion or relocation to a community — and that included the perception and appearance of the airport itself.

"Obviously, in the environment of really tough times in the industry, the Lambert folks have had to be prudent in how they have modified the scope and timing of the improvements," Fleming said.

Source

05/31/2010 (12:54 am)

Dow ends below 10,000

Filed under: technology, term |

Stocks erased gains by the close Wednesday, with the Dow ending below 10,000 for the first time in three months, as worries about global growth and a slide in the euro overshadowed upbeat economic news.

The Dow Jones industrial average (INDU) lost nearly 70 points, or 0.7%, ending at the lowest point since Feb. 8. The S&P 500 (SPX) index lost 6 points, or 0.6%, and the Nasdaq (COMP) lost 15 points, or 0.7%.

A global market rally and a strong housing market report gave stocks a boost in the morning, but trading was choppy through the rest of the session as the euro weakened. Stocks slipped in the last hour of trading.

Stocks have tumbled in May, with the three major indexes all losing more than 10% each, falling into "correction" mode as investors have worried that Europe’s growing debt crisis is going to cut into U.S. and global economic growth.

A $1 trillion aid package announced by European leaders helped temper, but not eliminate, worries about the threat of so-called contagion stemming from problems with debt-plagued nations.

Greece got the ball rolling, but concerns remain about the other so-called PIIGS — Portugal, Italy, Ireland and most recently, Spain. News that Spain’s central bank had to take over one of the nation’s oldest savings banks over the weekend ushered in the latest wave of European-crisis driven worries. Reports of heightened tensions between North and South Korea added to jitters Tuesday.

Whether the stock correction - a decline of more than 10% off the highs - becomes a bear market - a drop of 20% to 30% off the highs - remains to be seen.

"A lot of indicators I watch suggest there is a turnaround coming, but the problem is the pullback has been pretty dramatic," said Randy Frederick, director of trading and derivatives at Charles Schwab.

He said that a lot of investors who were skeptical of the huge rally off the March 2009 lows have been waiting for the ideal pullback to get back in, after several smaller pullbacks failed to cross the 10% threshold.

"That pullback is here," he said. "The question is whether they have enough nerve to come back in or will they look at it as evidence that the runup was a false rally."

Euro: The European currency has seesawed since falling to a four-year low of $1.2146 last week.

On Wednesday, the euro fell 1.4% versus the dollar but remained above that four-year low. The dollar lost 0.3% against the yen.

Volatility: The CBOE Volatility index, or the VIX (VIX), Wall Street’s fear factor, ended modestly higher after having fallen through most of the session. The VIX had dropped as much as 13% as the market initially rallied, but turned higher when stocks fell.

Economy: New home sales jumped 15% in April, thanks to still-low mortgage rates and a homebuyer tax credit that expired at the end of last month. Sales rose to a seasonally adjusted rate of 504,000 from a revised 439,000 in the previous month. Economists surveyed by Briefing.com expected sales of 425,000.

Another report released before the start of trading showed that durable goods orders rose 2.9% in April, versus forecasts for a gain of 1.5%. Goods orders were flat in March, a revision on an earlier reading that showed a drop in orders.

However, orders excluding transportation fell 1% after rising 4.8% in the previous month. Economists thought orders excluding transportation would rise 0.7%.

World markets: Stocks around the world rebounded. Markets in Europe gained in late trading. Britain’s FTSE 100 rose 2%, Germany’s DAX gained 1.6% and France’s CAC 40 climbed 2.3%.

Asian markets also bounced back following a steep sell-off Tuesday on increased tension between North and South Korea. Japan’s Nikkei gained 0.7% and Hong Kong’s Hang Seng rose 1.1%. China’s Shanghai Composite ended just above unchanged.

Commodities: U.S. light crude oil for July delivery rose $2.76 to settle at $71.51 a barrel on the New York Mercantile Exchange, a gain of over 4%.

COMEX gold for June delivery rose $15.40 to settle at $1,213.40 an ounce.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.24% from 3.16% late Tuesday. Treasury prices and yields move in opposite directions.

Trading volume: Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 1.94 billion shares. On the Nasdaq, advancers topped decliners seven to six on volume of 3.08 billion shares. 

Source

05/27/2010 (3:30 pm)

Korn/Ferry: Most execs willing to relocate, Houston popular option

Filed under: management |

Most executives running global companies are willing to relocate for the right career opportunity, according to a survey by executive search firm Korn/Ferry International.

Overall, 82 percent of global executives from 65 countries said they would be willing to relocate to a different region, state or country for job purposes.

Career acceleration is the primary reason to move according to 78 percent of those surveyed. However, compensation wasn¹t necessarily the No. 1 factor.

Nearly half of those surveyed, 42 percent, said that quality of life in the new location, or salary, was the top motivator. Eighteen percent cited the reputation of the company as the primary motivator payday loans.

In the survey, the Bayou City was singled out as a prime location for executives to relocate to.

"Houston provides candidates opportunities to direct their career to a higher level in market that¹s held relatively steady during the recession," said Eric Nielsen, managing director of Korn/Ferry - Houston. "We are now experiencing strong hiring activity due to the global strength of the energy/natural resources sector and the Texas regional economy."

Source

05/22/2010 (1:03 am)

Consumer prices up 2.2% for the year

Filed under: money |

A key index of prices paid by consumers ticked lower in April but is still higher from a year earlier, the government said Wednesday.

The Consumer Price Index, the Labor Department’s key measure of inflation, has increased 2.2% over the last year. But that is the smallest 12-month increase since January 1966.

"Inflation continues to be a non-issue," said Anika Khan, Wells Fargo economist, in a research note.

On a monthly basis, CPI fell by 0.1% in April. Economists surveyed by Briefing.com expected a 0.1% jump. The decline was largely due to a 1.4% drop in the energy index, the report said.

Despite its April decline, the energy index has soared 18.5% over the last year.

The small overall CPI increases "should continue to allow the Fed to keep short-term interest rates low," Khan said.

Core CPI: The even more closely watched core CPI, which excludes volatile food and energy prices, rose 0.9% on an annual basis and was unchanged over the month.

Index-by-index: The food index jumped 0.5% on an annual basis. It rose 0.2% in April, the same increase as the previous month.

The indexes for recreation, new and used motor vehicles, and medical care also posted increases in April. Other sectors declined, including apparel and household furnishings.

CPI is based on prices of goods and services that people buy for day-to-day living. Prices are collected each month in 87 urban areas across the country, from about 4,000 residences and 25,000 stores. 

Source

05/20/2010 (10:03 am)

Ga. Tech suspends four, malfeasance suspected

Filed under: management |

Georgia Tech suspended four without pay after an internal audit revealed evidence of possible malfeasance including the misappropriation of university resources for the benefit of Sayana Wireless LLC, a company two Georgia Tech staffers own.

The suspended employees who co-own Sayana are Joy Laskar and Stephane Pinel. The other suspended staffers are Chris Evans and Amanda Scacchitti.

The total amount of the suspected malfeasance is under review, Georgia Tech said.

“The actions taken are an appropriate exercise of fiduciary responsibility to protect the interests of the Institute and GEDC’s research sponsors,” said James Fetig, Georgia Tech spokesman, in a statement. “Georgia Tech is cooperating fully with the Georgia Bureau of Investigation which is conducting the investigation.”

GEDC’s research is focused on designing integrated circuits — the chips that make computers, cell phones and other electronic devices possible.

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