Category: Personal Loans News

U.S. stocks up Thursday helped by jobless claims, GM’s numbers

Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – U.S. stocks opened mixed to higher Thursday fueled by lower than expected jobless claims and impressive earnings from General Motors.

Just after the open on Wall Street, the Dow Jones Industrial Average was up 15 points. The Standard & Poor’s 500 Index and the NASDAQ were both nearly unchanged.

Investors were buoyed by the a report from the Labor Department that showed initial jobless claims fell to a near four-year low.

Also giving stocks momentum was an earnings report from General Motors. GM reported the largest annual profit in its history on Thursday, even as losses in Europe were a drag on fourth quarter earnings.

The auto maker said it earned a quarterly profit of $472 million, or 28 cents a share. It was the eight consecutive quarterly profit for the car maker, which strategically cleared up much of its debt in bankruptcy a few years ago. For all of 2011, GM earned $7.6 billion, most of it from North America.

In early morning trading, shares of GM climbed almost 5 percent, and were last changing hands at $26.15 per share.

Holding stocks back were continued worries over Greece’s ability to secure a second bailout. Investor sentiment was further dampened after rating agency Moody’s put 17 global banks and 114 European financial institutions on review for possible downgrades.

Gold fell as Greece’s woes hurt the euro. The precious metal tumbled $16.40 to $1,711.80 a troy ounce. Oil was flat at $101.67 a barrel.

Ringing the opening bell on the NYSE was Westminster’s Best in Show, Malachy, a petite, composed and well manicured Pekinese.

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United States softens on threats to relations with Bangladesh

Saleem Samad – AHN News Correspondent

Dhaka, Dhaka, Bangladesh (AHN) – The United States appears to be softening diplomatic pressure on Bangladesh that ensued after authorities forcibly removed Nobel laureate Mohammad Yunus from the micro-finance institution he founded 30 years ago.

The action irked U.S. Secretary of State Hillary Clinton last March and she threatened that bilateral relations with Bangladesh would been jeopardized if authorities continued to harass Yunus, a popular advocate of his social business concept.

On Thursday, visiting U.S. Assistant Secretary of State Robert O. Blake emphasized to reporters in Dhaka the importance of Bangladesh’s finding an eminently qualified successor to Yunus as managing director of Grameen Bank, whose micro-loans are credited with empowering 10 million disadvantaged rural women in Bangladesh.

He also said that Bangladesh and U.S. have developed strong cooperation on counter-terrorism and security issues.

Blake reiterated U.S. policy against extra-constitutional means to overthrow a democratic government. In a botched military coup hatched by mid-level radical Muslim army officers in January, the U.S. immediately condemned the conspiracy and firmly stood beside Sheikh Hasina’s government in establishing secularism and democracy.

The senior U.S. official said he hopes the ruling Awami League and mainstream opposition Bangladesh Nationalist Party would rise above partisanship and work together to agree on a mechanism to hold free, fair, credible and participatory elections, schedules in late 2013.

He urged Bangladesh authorities to ensure continued space for free media and vigorous non-governmental organizations (NGOs). Blake said that representatives of non-governmental organizations had expressed fear that a draft NGO law would curtail their mandate for empowerment of the rural poor.

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Insurers, guards earn more from piracy than gangs

The Media Line Staff

Mogadishu, Somalia David Rosenberg / The Med – Somali pirates did not have a good year in 2011, seizing fewer vessels and hostages than in 2010, but the world still paid a heavy price for their activity because it costs far more to protect ships than to pay ransoms.

That is the conclusion of the Oceans Beyond Piracy report released yesterday, which estimated that Somali pirates – by far the world’s leading practitioners of high seas hijackings – cost the global economy just under $7 billion last year. Only $160 million of that was ransom money; the rest was due to higher insurance premiums, security and other anti-piracy costs that remain unchanged whether ships are hijacked or not, the report said.

“The costs of preventing piracy are indeed disproportionately high,” Anna Bowden, lead author of the report and program manager for its publisher, the One Earth Foundation, told The Media Line in an e-mail. “It is also a concern that 99 percent of these costs are recurring costs — that is, costs that must be repeated each year to deter piracy … There needs to be a reassessment of the long-term sustainability of these costs.”

Pirates plying the waters between the Horn of Africa and the coast of India account for just over half the attacks on ships worldwide, according to the International Maritime Bureau (IMB). Their victims range from super-tankers to private yachts, exacting a financial toll as well as a human one when they take hostages and kill.

The battle between the pirates and the world’s shipping industry and navies protecting it has not yielded a decisive victory for either side. The number of Somali attacks increased to 237 last year from 219 in 2010. Last August they launched their first attack on a vessel in territorial waters when they raided a vessel near the Gulf state of Oman.

They also broke the record for biggest-ever ransom, $13.5 million for the release of the Irene SL, a tanker carrying 2 million barrels of oil valued at $200 million. The average ransom collected by pirates jumped 25 percent to just under $5 million last year, according to the report.

But the number of successful hijackings fell to 28 from 49 while the 802 crew members taken hostage fell from the four-year high of 1,181 in 2010. By the final quarter of last year, the number of attacks was down to 31 from 90 a year earlier and the number of successful hijackings plunged to four from 19.

Capt. Pottengal Mukundan, director of the IMB Piracy Reporting Center, attributed that to better onboard security as well as preemptive acts by the international navies patrolling the area.

But even if the pirates have been frustrated, the costs they impose on the world’s economy remain about the same.

Last year’s report put the cost at somewhere between $7 billion and $12 billion, but its author, Anna Bowden, said this year’s estimate was based on better information and therefore more exact. As a result, she said, the 2010 and 2001 figures are probably about the same.

Where does the money go?

The biggest chunk, some $2.7 billion, goes to higher fuel costs as ships increase their speed in pirate-infested seas. Another $1.3 billion goes to pay for the navies patrolling the area and another $1.1 billion for security equipment and armed guards on the vessels themselves. The rest goes to insurance ($635 million), re-routing vessels along India’s west coast (up to $680 million) and “danger pay” for sailors ($195 million).

“Pirates earn $160 million per year, while the cost for insurance is four or five times higher. You could argue that insurance companies make more money from piracy than the pirates themselves,” Jan Stockbruegger, an expert on piracy at the African Studies Centre Leiden, told The Media Line.

There is a human cost of piracy too. Eight people were killed by pirates last year, the same number as in 2010. But hostages are being held for increasingly long periods as ransom payments are taking longer to negotiate. Oceans Beyond Piracy said it took an average of 178 days for terms to be reached and the vessel released.

Indeed, the pirates have come to recognize the value of the crew as a profit center. In what the Oceans Beyond Piracy report called “a worrying development in the ransom business model,” pirates have begun to focus their attention on people rather than ships.

In one case, pirates released the vessel after getting their payment but kept some of the crew hostage for more money. In other cases, the captured ship was abandoned while the crew was taken ashore in Somalia, where pirates have demanded a ransom for their release. Recently, pirate-related gangs have taken to kidnapping humanitarian workers and tourists on land in Kenya and Somalia.

Stockbruegger, who also helps run the blog Piracy Studies, said that in many cases the pirates were taking hostages to trade for their imprisoned colleagues or compensation for pirates who were killed.

“Pirates definitely recognize that the value of their ‘business model’ lies in the livelihoods of the crew members, rather than the ship,” said Bowden.

Stockbruegger said a purely military response to piracy do not offer a sustainable solution to the problem “We don’t really know how to contain piracy. The military can’t do it in the current make up and the same holds true for the shipping industry. They can reduce success rate but they can’t stop it,” he said.

The answer is to help stabilize the situation on the ground in Somalia, whose lawlessness and economic distress gave birth to piracy to begin with, said Stockbruegger. One way of doing this would be to crack down on the illegal fishing off Somalia’s coast, which has deprived people of their traditional living and forced many into piracy. Another, he said, would be to develop local government and give Somalis the tools to enforce their fishing rights.

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U.S. stocks open lower Monday; busy earnings week on tap

Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – U.S. stocks opened lower Monday after closing out the prior week at highs.

Just before 10 a.m. on Wall Street, the Dow Jones Industrial Average was down 61 points, the Standard & Poors 500 Index lost 6 points and the NASDAQ was off 17 points.

The markets closed out last week on a high note. The Dow Jones Industrial rose more than 200 points, or 1.6 percent on the week, to close at 12,862.23. The Standard & Poor’s 500 Index rose 2.2 percent to 1,344.90 and the NASDAQ soared more than 3 percent to finish the week at 2905.66, its highest close since late 2000.

On Monday, investors were once again keeping a close eye on developments in Europe. U.S. stocks followed the lead of overseas markets that were broadly lower as new Greek austerity plans dragged on.

Some market participants were cheering the New York Giant’s Super Bowl win, focusing on the so-called Super Bowl indicator that favors the NFC team (the Giants) over the AFC team (the Patriots) to achieve positive market returns.

The theory isn’t always reliable. In 2008, when the Giants won, the market fell 37 percent, its worst return in Super Bowl history.

Theories aside, there will be plenty on tap for traders to digest in the week ahead. The week is busy with reports on corporate earnings, initial jobless claims, wholesale inventories and consumer sentiment.

In commodities. oil lost 74 cents to $97.41 a barrel, and gold fell some $17 to $1719.20 a troy ounce.

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Singapore signs pact with Myanmar to modernize its economy

AHN News Staff

Singapore, Singapore (AHN) – Singapore and Myanmar on Monday signed a bilateral, economic and trade agreement.

Under the Singapore-Myanmar Technical Cooperation Program pact, Singapore will open itself to foreign investment as well as offer training courses on trade, tourism development and central banking to the Southeast Asian nation.

The agreement was signed during Myanmarese President U Thein Sein’s first visit to Singapore after becoming president last year.

Myanmar had been a secretive military regime in the last decade, but post-2010 elections, situations changed in the country as government released several political prisoners and even legalized the pro-democracy leader Suu Kyi’s National League of Democracy party. This prompted Washington to revive full diplomatic ties with it. Even the EU decided to partly lift sanctions on Myanmar.

Both the U.S. and the EU have promised to further ease sanctions, if they see free and fair parliamentary by-elections in April this year.

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Singapore signs pact with Myanmar to modernize its economy

AHN News Staff

Singapore, Singapore (AHN) – Singapore and Myanmar on Monday signed a bilateral, economic and trade agreement.

Under the Singapore-Myanmar Technical Cooperation Program pact, Singapore will open itself to foreign investment as well as offer training courses on trade, tourism development and central banking to the Southeast Asian nation.

The agreement was signed during Myanmarese President U Thein Sein’s first visit to Singapore after becoming president last year.

Myanmar had been a secretive military regime in the last decade, but post-2010 elections, situations changed in the country as government released several political prisoners and even legalized the pro-democracy leader Suu Kyi’s National League of Democracy party. This prompted Washington to revive full diplomatic ties with it. Even the EU decided to partly lift sanctions on Myanmar.

Both the U.S. and the EU have promised to further ease sanctions, if they see free and fair parliamentary by-elections in April this year.

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Initial unemployment claims rise by 21,000

Linda Young – AHN News Writer

Washington, DC, United States (AHN) – Initial jobless claims for the week ending Jan. 21 rose by 21,000 to 377,000, compared with the previous week’s revised figure of 356,000, the U.S. Department of Labor said.

The less volatile four-week moving average was 377,500, a drop of 2,500 from the previous week’s revised average of 380,000.

DOL figures show that the total number of people claiming benefits in all programs for the week ending Jan. 7, the most recent week for which such data is available, was 7,638,233, down by 188,612 people from the previous week.

The largest increases in initial claims for the week ending Jan. 14 were:

  • Florida (+2,711)
  • California (+1,682)
  • Iowa (+596)
  • West Virginia (+571)
  • District of Columbia (+115)
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Russia emerges as Syria’s most valuable ally

The Media Line Staff

Damascus, Syria David Rosenberg (The Medi – As the Arab League agreed to go to the United Nations Security Council early this week with a resolution calling for Syrian President Bashar Al-Assad to step down, Russia was reportedly doing a major arms deal with the beleaguered regime.

The $550 million agreement to sell 36 Yak-130 combat aircraft will not do anything to tip the balance in favor of the Al-Assad regime, which has been engaged in a 10-month conflict with anti-government opposition. But Russia is almost certainly providing arms Damascus needs to hold back the rebels as well as mounting a diplomatic defense of its friend at the U.N.

In a rare glimpse into the Russia-Syria arms trade, a ship loaded with ammunition from Russia was briefly detained in Cyprus earlier this month before continuing its journey unmolested to the Syrian port of Tartus. Foreign Minister Sergey Lavrov has vowed that Russia will veto any sanctions as “unfair and counterproductive.”

“Syria is an important customer for the Russian military industry and the industry is quite keen to maintain the relationship,” Fyodor Lukyanov, editor-in-chief of the Moscow based foreign policy journal Russia in Global Affairs, told The Media Line. “Syria is one of the few remaining customers in the region and it hosts the only military base – a small one but still a base – that Russia still has outside its own borders.”

As the West – now joined by the Arab League – presses the Syrian president ever harder, Russia has emerged as his most important ally. Iran also backs the Damascus regime, but Tehran itself faces growing diplomatic isolation over its nuclear program and doesn’t wield a Security Council veto. China is opposed to Syrian sanctions, too, but analysts say it is likely to follow whatever line Moscow adopts.

Russia’s warm ties with Syria, and more exactly the Al-Assad family regime that has ruled the country four decades, starts with arms sales but it goes much deeper.

In the final two decades of the Cold War era, when the Soviet Union was a superpower competing for global influence with the U.S., Syria was its staunchest ally in the Middle East. Bashar Al-Assad’s father and predecessor Hafez armed his troops with Soviet weapons and advanced Moscow’s interests in the region.

With the collapse of communism and with Syria’s deteriorating economy, the relationship is not what it once was. But Russia maintains a naval base at Tartus and the two governments share a distrust of the West and its motives.

Indeed, the view from Moscow of what is happening in Syria is very different than the one in Washington or Brussels. Where the West sees events in Syria as a popular uprising against a repressive regime, Russia shares Damascus’ take, which sees the rebellion as conspiracy by the Gulf countries to bring down an ally of their foe Iran.

“Saudi Arabia, Qatar and others see this as an opportunity, as a chance to push back Iranian influence,” Lukyanov said. “From Russia’s point of view, it’s part of a geopolitical struggle between Iran and Saudi Arabia, where Syria is just a card.”

For policymakers in Moscow, the situation in Syria looks remarkably similar to the one in Libya last year, where another long-time friend, Muamar Al-Qaddafi, faced what was seen in the West as a popular rebellion against autocracy. Russia reluctantly agreed not to veto a U.N. decision to impose a no-fly zone over the country.

The resolution, as Russia’s leaders understood it, was to prevent Al-Qaddafi from killing civilians with aerial firepower. But the NATO forces that largely enforced the decision, Russians say, used it to level the playing field in the Libyan civil war to Al-Qaddafi’s disadvantage. Moscow lost a friend and customer for its arms and is now out of favor with the successor National Transitional Council.

Zvi Magen, a former Israeli ambassador to Russia, said Russia’s Syria policy is driven by memories of its Cold War rivalry with the U.S.

“There’s an element of business in the arms deals, but it’s mainly a political move to show the flag and to show support for Syria. It’s mainly a function of Russian relations with America than with the Syrian regime,” Magen told The Media Line.

For that reason – and because Moscow realizes that Al-Assad’s days are numbered – it may be prepared to make a deal with the U.S. over Syria, he added.

Nevertheless, analysts agree that the importance of the arms trade as a factor in Moscow’s calculations should not be overlooked. In an economy with few other industrial exports, Russia’s military industry is an important earner of foreign exchange and a powerful domestic political force.

The Voice of Russia radio’s website said in December without citing a source that Russian arms exports reached $11 billion last year, a three-fold increase from 2000. While the country’s biggest customers are India and China, the Middle East had been a growing market until the Arab Spring eliminated Al-Qaddafi and sanctions on Iran removed another customer. Syria alone, according to some estimates, accounted for 7 percent of all Russian arms sales in 2010.

A U.S. government study in 2009 estimated Russia’s share of the Middle East arms market grew to more than 15 percent in the 2005-2008 period, five percentage points more than in 2001-2004 as it offered more creative financing and payment options, counter-trade, offsets, debt-swapping, and, in some cases, licensing production locally.

Russia’s Interfax news agency reported in early December that Russia delivered $300 million of Yakhont anti-ship cruise missiles to Syria.

With numbers like that, it is no wonder that Sergey Chemezov, the head of the state arms export company Rosoboronexport, made clear he had no intention of halting business with Syria.

“There are no sanctions whatsoever regarding Syria,” he told Interfax on Wednesday. “If international sanctions are imposed by the U.N. Security Council, everything will change. And if there are no sanctions, why should we refuse to cooperate with this country? This is business after all.”

Nevertheless, Magen said, Russia is careful not to sell Damascus weapons like S-300 surface-to-air missiles that could alter the regional balance of power.

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First time unemployment claims drop to 352,000

Linda Young – AHN News Writer

Washington, DC, United States (AHN) – Initial unemployment claims dropped to 352,000 during the week ending Jan. 14, their lowest level in nearly four years.

First time claims for jobless benefits dropped by 50,000 from the previous week’s revised tally of 402,000, according to the U.S. Department of Labor.

The less volatile four-week moving average was 379,000, a decrease of 3,500 from the previous week’s revised average of 382,500.

However, the advance seasonally adjusted insured unemployment rate also dropped. Only 2.7 percent of jobless workers were covered by unemployment insurance for the week ending Jan. 7, a decrease of 0.2 percentage point from the prior week’s unrevised rate.

The total number of people claiming benefits in all programs for the week ending Dec. 31, the most recent week for which data is available, was 7,826,665, an increase of 493,566 from the previous week.

The highest insured unemployment rates in the week ending Dec. 31 were:

  • Alaska (6.9)
  • Connecticut (6.6)
  • Oregon (5.0)
  • Wisconsin (4.9)
  • Pennsylvania (4.7)
  • Idaho (4.5)
  • Rhode Island (4.5)
  • Montana (4.3)
  • New Jersey (4.2)
  • Arkansas (4.0)
  • Illinois (4.0)
  • Washington (4.0).

The largest increases in initial claims for the week ending Jan. 7 were:

  • New York (+29,389)
  • California (+22,168)
  • Texas (+13,946)
  • North Carolina (+7,865)
  • Georgia (+7,225)
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First time unemployment claims drop to 352,000

Linda Young – AHN News Writer

Washington, DC, United States (AHN) – Initial unemployment claims dropped to 352,000 during the week ending Jan. 14, their lowest level in nearly four years.

First time claims for jobless benefits dropped by 50,000 from the previous week’s revised tally of 402,000, according to the U.S. Department of Labor.

The less volatile four-week moving average was 379,000, a decrease of 3,500 from the previous week’s revised average of 382,500.

However, the advance seasonally adjusted insured unemployment rate also dropped. Only 2.7 percent of jobless workers were covered by unemployment insurance for the week ending Jan. 7, a decrease of 0.2 percentage point from the prior week’s unrevised rate.

The total number of people claiming benefits in all programs for the week ending Dec. 31, the most recent week for which data is available, was 7,826,665, an increase of 493,566 from the previous week.

The highest insured unemployment rates in the week ending Dec. 31 were:

  • Alaska (6.9)
  • Connecticut (6.6)
  • Oregon (5.0)
  • Wisconsin (4.9)
  • Pennsylvania (4.7)
  • Idaho (4.5)
  • Rhode Island (4.5)
  • Montana (4.3)
  • New Jersey (4.2)
  • Arkansas (4.0)
  • Illinois (4.0)
  • Washington (4.0).

The largest increases in initial claims for the week ending Jan. 7 were:

  • New York (+29,389)
  • California (+22,168)
  • Texas (+13,946)
  • North Carolina (+7,865)
  • Georgia (+7,225)
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