12/31/2011 (1:56 am)

Lion’s Choice franchisee files for bankruptcy

Filed under: Australia, marketing |

Valley Beef LLC, a franchisee of five St. Louis area Lion’s Choice restaurants, has filed for bankruptcy.

Clayton-based Valley Beef, led by Thomas Ginos, filed the Chapter 11 bankruptcy petition Thursday in St. Louis federal court and listed between $500,000 and $1 million in liabilities and assets of $50,000 or less. Its largest creditors holding unsecured claims are US Foods, which is owed $117,850, and Pulaski Bank, which has claims totaling $195,205.

Valley Beef’s Lion’s Choice locations in Chesterfield, St. Louis, Fenton, Wentzville and on Mid Rivers Mall Drive in St. Peters have 84 employees. Valley Beef shuttered a Lion’s Choice in downtown St. Louis in 2009.

Ginos became a franchisee of the restaurant chain that specializes in roast beef sandwiches in 2001. He plans to keep the five remaining restaurants open during the bankruptcy reorganization, according to his attorney, Robert Eggmann of Clayton-based law firm Desai Eggmann Mason. Eggmann said his client filed the bankruptcy to restructure debt and expects to emerge from bankruptcy within six months.

Lion’s Choice was founded in Ballwin in 1967 as Brittany Beef and has 15 company-owned restaurants in the St. Louis area that are not included in the bankruptcy. Jim Tobias, president of Lion’s Choice Restaurant Corp., said he did not expect the bankruptcy filing to interrupt operations at the five St. Louis area franchise restaurants. “We don’t expect any change in business,” Tobias said.

 

 

 

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12/25/2011 (11:40 am)

Draghi Says There

Filed under: business, technology |

+%3Cp%3EEuropean+Central+Bank+President+Mario+Draghi+said+there+is+no+%93external+savior%94+for+countries+that+don%92t+implement+structural+reforms+to+restore+confidence+to+debt+markets.+%3C%2Fp%3E+%3Cp%3E%93There+is+no+external+savior+for+a+country+that+doesn%92t+want+to+save+itself%2C%94+Draghi+said+in+a+speech+in+Berlin+today.+%93I+will+never+tire+of+saying+the+first+response+should+come+from+the+countries.%94+%3C%2Fp%3E+%3Cp%3EThe+ECB+is+buying+the+bonds+of+debt-strapped+nations+such+as+Italy+and+Spain+after+they+agreed+to+implement+austerity+measures+to+improve+their+finances.+Draghi+nevertheless+reiterated+today+that+the+ECB%92s+bond+program+is+%93neither+eternal+nor+infinite.%94+%3C%2Fp%3E+%3Cp%3EHe+said+an+%93unavoidable%94+short-term+economic+contraction+in+the+euro+area+may+be+mitigated+by+a+return+of+confidence+if+governments+implement+budget+consolidation+plans.+%3C%2Fp%3E+%3Cp%3E%93In+the+medium+term%2C+sustainable+growth+can+be+achieved+only+by+undertaking+deep+structural+reforms+that+have+been+procrastinated+for+too+long%2C%94+he+said.+%3C%2Fp%3E+Bank+Measures++%3Cp%3EWhile+the+ECB+has+pushed+back+against+calls+for+it+to+step+up+its+bond+purchases%2C+Draghi+said+measures+taken+last+week+to+give+banks+greater+access+to+liquidity+will+soon+be+felt.+%3C%2Fp%3E+%3Cp%3EOn+Dec.+8%2C+the+ECB+established+refinancing+operations+with+a+maturity+of+three+years%2C+allowed+banks+to+use+their+own+loans+as+collateral%2C+and+cut+the+required+reserves+ratio+to+1+percent+from+2+percent.+%3C%2Fp%3E+%3Cp%3E%93The+current+package+should+be+felt+tangibly+in+the+financial+sector+and+the+real+economy+over+the+coming+months%2C%94+Draghi+said.+%3C%2Fp%3E+%3Cp%3EHe+said+banks+face+%93headwinds%94+as+they+try+to+meet+new+Europe-wide+capital+ratios.+%3C%2Fp%3E+%3Cp%3E%93The+plan+to+strengthen+their+capital+bases+is+an+attempt+to+reinforce+their+standing+in+financial+markets%2C+but+this+is+not+an+easy+process%2C%94+he+said.+%93Raising+capital+levels+is+expensive+in+a+depressed+market+and+faces+resistance+from+shareholders.+Selling+assets+is+less+preferable+and+curtailing+credit+to+the+real+economy+is+even+worse.%94+%3C%2Fp%3E+%3Cp%3EBanks+should+consider+restraining+dividends+and+ad+hoc+compensation+to+strengthen+buffers%2C+Draghi+said.+%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fwww.bloomberg.com%2Fnews%2F2011-12-15%2Fdraghi-says-there-s-no-external-savior-for-euro-countries-that-fail-to-act.html%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

12/18/2011 (8:12 pm)

Nicklaus: St. Louis needs to reboot economic development efforts

Filed under: Australia, uk |

For the St. Louis economy, this year looked a lot like the previous 20 or 30, and it’s a rut we really need to get out of.

Job growth lagged the nation. Well-known local companies succumbed to takeovers, without enough new businesses to take their place. Officials argued about strategy while failing to address the region’s deep-seated problems.

Denny Coleman, the president of the St. Louis County Economic Council, has been sounding the alarm about these issues recently, ever since the council commissioned a report on the region’s economic strategy.

One headline from the report, written by consulting firm AECOM, is that within two decades, because of slow population growth, we’ll no longer be one of the 20 largest U.S. metropolitan areas. We’re currently No. 18.

That top-20 ranking automatically confers big-city status. National retail chains want to have a presence in the top 20 markets; advertisers target their messages there. Cities in the next tier are important, but they have to fight harder for attention.

Coleman believes AECOM’s warning should be a wake-up call.

“We have been living off the wealth creation from select legacy companies here for some time,” he said. “While we’ve created some new, significant wealth, the competition in other metro areas is outpacing us.”

Want to talk legacy companies? Savvis, Smurfit Stone Container, LaBarge and Rehabcare were all acquired this year. St. Louis ranks poorly on indicators of the entrepreneurial activity that can replace them with new firms.

Or should we talk jobs? Metro St. Louis officially added 7,800 jobs between October 2010 and October 2011, an increase of 0.6 percent. Howard Wall, an economist at Lindenwood University, thinks that number will be revised to show a loss of 3,900 jobs make quick cash.

Either way, St. Louis is a laggard. Nationally, employment grew by 1.2 percent in the same 12 months, twice as fast as the optimistic St. Louis estimate.

“Don’t we have this conversation every year?” Wall said when I asked about the sluggish local job market.

Yes, we do. And how do St. Louis’ leaders try to break out of this rut? For one thing, they spent years pursuing the “big idea” of a hub for Chinese cargo planes, only to have the Missouri Legislature shoot down the incentives that the plan required. It’s not a good precedent.

Recently, other rifts have been exposed. Mayor Francis Slay called for the Regional Chamber and Growth Association, a private-sector group, to cede its economic development duties to a joint city-county agency.

Coleman hasn’t gone quite so far, but he does accuse the RCGA of “mission creep.” As he sees it, the RCGA should concentrate on marketing the region and recruiting companies that want to expand or relocate.

The jobs of retaining local employers, encouraging startups and improving the work force, Coleman believes, should fall to agencies in each city or county. He says he was surprised when those showed up as objectives in the RCGA’s latest strategic plan. Coleman says he’s encouraged by the appointment of Joe Reagan as the new RCGA president. The region’s economic development structure “can work, but it’s a matter of making sure you have a clear separation of responsibilities,” Coleman says.

Slay, Reagan, Coleman and others clearly have plenty to discuss. Let’s hope they quickly get beyond turf wars.

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12/15/2011 (4:44 pm)

Panetta formally shuts down US war in Iraq

Filed under: economics, lenders |

After nearly nine years, 4,500 American dead, 32,000 wounded and more than $800 billion, U.S. officials formally shut down the war in Iraq _ a conflict that U.S. Defense Secretary Leon Panetta said was worth the price in blood and money, as it set Iraq on a path to democracy.

Panetta stepped off his military plane in Baghdad Thursday as the leader of America’s war in Iraq, but will leave as one of many top U.S. and global officials who hope to work with the struggling nation as it tries to find its new place in the Middle East and the broader world.

More than 100,000 Iraqis have been killed since the U.S. invasion in 2003, according to the Iraq Body Count website. Bombings and gun battles are still common. And experts are concerned about the Iraqi security force’s ability to defend the nation against foreign threats.

Still, Panetta said earlier this week, the war “has not been in vain.”

Panetta and several other U.S. diplomatic, military and defense leaders participated Thursday in a symbolic ceremony during which the flag of U.S. Forces-Iraq was officially retired, or “cased,” according to Army tradition. The U.S. Forces-Iraq flag was furled _ or wrapped _ around a flagpole and covered in camouflage. It will be brought back to the United States.

“You will leave with great pride _ lasting pride,” Panetta told the troops. “Secure in knowing that your sacrifice has helped the Iraqi people to begin a new chapter in history.”

During a stop in Afghanistan this week, Panetta described the mission as “making that country sovereign and independent and able to govern and secure itself.”

That, he said, is “a tribute to everybody _ everybody who fought in that war, everybody who spilled blood in that war, everybody who was dedicated to making sure we could achieve that mission.”

Iraqi citizens offered a more pessimistic assessment. “The Americans are leaving behind them a destroyed country,” said Mariam Khazim of Sadr City. “The Americans did not leave modern schools or big factories behind them. Instead, they left thousands of widows and orphans.”

A member of the political coalition loyal to anti-American cleric Muqtada al-Sadr saw another message in the U.S. withdrawal. “The American ceremony represents the failure of the U.S. occupation of Iraq due to the great resistance of the Iraqi people,” said Sadrist lawmaker Amir al-Kinani.

Panetta echoed President Barack Obama’s promise that the U.S. plans to keep a robust diplomatic presence in Iraq, foster a deep and lasting relationship with the nation and maintain a strong military force in the region.

As of Thursday, there were two U.S. bases and about 4,000 U.S. troops in Iraq _ a dramatic drop from the roughly 500 military installations and as many as 170,000 troops during the surge ordered by President George W. Bush in 2007, when violence and raging sectarianism gripped the country. All U.S. troops are slated to be out of Iraq by the end of the year, but officials are likely to meet that goal a bit before then.

The total U.S. departure is a bit earlier than initially planned, and military leaders worry that it is a bit premature for the still maturing Iraqi security forces, who face continuing struggles to develop the logistics, air operations, surveillance and intelligence sharing capabilities they will need in what has long been a difficult neighborhood payday loans in 1 hour.

U.S. officials were unable to reach an agreement with the Iraqis on legal issues and troop immunity that would have allowed a small training and counterterrorism force to remain. U.S. defense officials said they expect there will be no movement on that issue until sometime next year.

Still, despite Obama’s earlier contention that all American troops would be home for Christmas, at least 4,000 forces will remain in Kuwait for some months. The troops will be able to help finalize the move out of Iraq, but could also be used as a quick reaction force if needed.

Obama met in Washington with Iraqi Prime Minister Nouri al-Maliki earlier this week, vowing to remain committed to Iraq as the two countries struggle to define their new relationship. Ending the war was an early goal of the Obama administration, and Thursday’s ceremony will allow the president to fulfill a crucial campaign promise during a politically opportune time. The 2012 presidential race is roiling and Republicans are in a ferocious battle to determine who will face off against Obama in the election.

Panetta acknowledged the difficulties for Iraq in the coming years, as the country tries to find its footing.

“They’re going face challenges in the future,” Panetta said Wednesday during a visit with troops in Afghanistan. “They’ll face challenges from terrorism, they’ll face challenges from those that would want to divide their country. They’ll face challenges from just the test of democracy, a new democracy and trying to make it work. But the fact is, we have given them the opportunity to be able to succeed.”

The ceremony at Baghdad International Airport also featured remarks from Army Gen. Martin Dempsey, the chairman of the Joint Chiefs of Staff, and Gen. Lloyd Austin, the top U.S. commander in Iraq.

Austin is leading the massive logistical challenge of shuttering hundreds of bases and combat outposts, and methodically moving more than 50,000 U.S. troops and their equipment out of Iraq over the last year _ while still conducting training, security assistance and counterterrorism battles.

The war “tested our military’s strength and our ability to adapt and evolve,” he said, noting the development of the new counterinsurgency doctrine.

Over the coming days, the final few thousand U.S. troops will leave Iraq in orderly caravans and tightly scheduled flights _ a marked contrast to the shock and awe that rocked the country on March 20, 2003, as the U.S. invasion began.

Saddam Hussein has been ousted, the reports of weapons of mass destruction largely laid to rest. And the future of a nascent democracy awaits.

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12/14/2011 (1:04 am)

Euro crisis simmers with banks under stress

Filed under: houses, usa |

Further signs of stress emerged Tuesday to indicate that Europe’s most recent summit agreement to get the euro countries to tighten rules against excessive government spending has only made limited progress in pulling the continent out of its debt crisis.

While figures showed that Europe’s banks parked more money at the European Central Bank than they have at any other time this year, Italy’s borrowing rates traded at levels not far from those that forced Greece, Ireland and Portugal into seeking financial bailouts.

The news that overnight deposits by banks to the ECB hit a year high are a sign of distress and mistrust in the system, and come just days after the continent’s banking regulator warned that they need to raise much more capital to plug potential losses from shaky European government debt.

The ECB said banks left euro346.4 billion ($458 billion) with the ECB at a low 0.25 percent interest rate rather than lend it to other banks, indicating they were concerned they might not be paid back. That topped a previous high from Friday of euro334.9 billion.

The rise in their deposits comes in the wake of an agreement by European leaders to forge a new treaty among the 17 members of the eurozone and as many as nine other EU members to toughen rules against accumulating excessive government debts. The treaty won’t be completed until March and tries to address long-term issues, while markets are questioning governments’ ability to pay their debts in the shorter term of the next several months.

“Market sentiment remains cautious regarding the strains in European debt markets,” said Nick Bennenbroek, an analyst at Wells Fargo Bank.

Fears of default have led to elevated yields on bonds issued by Italy, the latest focus of the crisis. Yields on Italian 10-year bonds traded at an elevated 6.66 percent on Tuesday, close to the 7 percent levels that led to the bailed-countries giving up on bond market borrowing. Italy is considered too large to bail out.

Banks have also been under strain because they hold government bonds and could suffer losses in case of a default. They are also being pressed by the European Union to find money to increase their financial buffers against losses.

Shares in Germany’s Commerzbank AG fell over 5 percent Tuesday amid speculation the bank might need more government support after the European Banking Authority last week said it was euro5.3 billion short of new capital requirements. The bank has said it won’t take more government help.

Italy did manage to raise euro7 billion ($9 online cash advance.4 billion) in a bond auction Monday, though the relatively strong demand was boosted by a bank association promotion waiving fees to buy the bonds.

Investors remain worried about the future of both Italy and the wider 17-nation eurozone despite an EU deal last week to tighten controls on spending. While that deal will boost longer-term budget discipline, it does little to lower current debt and exposed deepening political division.

Last Friday’s deal also does not fix the deeper imbalances within the eurozone, such as wide gaps between countries with competitive economies and trade surpluses and those which have poor business environments that limit growth and ability to pay debt.

The impact of the agreement to work out a new debt treaty has been blunted by Britain’s decision not to join and questions about how it would be enforced. EU officials sought an accord among all 27 EU states, but Britain did not join the agreement after its request to shelter its financial services sector from what Britain considers burdensome regulation was rejected.

European Commission President Jose Manuel Barroso urged British Prime Minister David Cameron not to block EU institutions such as the European Court of Justice for supporting and helping enforce the treaty.

Barroso said “it is the European institutions that are the best guarantee that the interest of all European states, including the U.K., will be fully respected.”

There are other potential hitches. Through the new intergovernmental treaty, the participating countries can agree to go beyond the rules in the current EU Treaty _ but can’t sign up to new rules that contradict existing ones.

That is set to cause problems for one of the central summit decisions _ creating more automatic sanctions for budget sinners.

Under the current EU Treaty, the European Commission can declare a country to be in excessive deficit _ a move that forces the country to spell out in detail how it will bring down its deficit and debt or face sanctions _ only if a qualified majority of EU countries agree.

The summit decisions aim to simplify this procedure, by giving the commission the right to declare a state to have an excessive deficit unless a qualified majority of countries vote against it.

__

Steinhauser contributed from Brussels. Frances D’Emilio contributed from Rome.

Source

12/09/2011 (2:32 am)

MEMC cuts jobs, production to combat falling silicon prices

Filed under: marketing, online |

MEMC Electronic Materials Inc. will slash 1,300 jobs — almost 20 percent of its workforce — and cut production as it copes with plunging prices for polysilicon, the key raw material in solar wafers and semiconductors.

The O’Fallon, Mo.-based company will eliminate 250 U.S. jobs by next spring, including 70 of 830 positions at the company’s corporate headquarters in O’Fallon, spokesman Bill Michalek said. MEMC will idle a polysilicon plant in Merano, Italy, and may close it permanently. It will reduce capacity at a plant in Portland that it acquired last year; and limit the ramp up of its newest silicon wafer plant in Kuching, Malaysia.

Officials said the actions were necessary to align the scope of operations with fast-changing markets that have been increasingly defined by a flood of Chinese-made polysilicon and a slowdown in solar and semiconductor demand.

“It is clear we must adjust our business model,” Ahmad Chatila, MEMC’s chief executive, said on a conference call with analysts and investors. “We believe these actions will strengthen MEMC in the near term and position us for more profitable growth in our core businesses.”

MEMC expects the restructuring to reduce annual operating expenses by more than 15 percent and boost cash flow by $200 million a year.

Theodore O’Neill, a New York-based alternative energy analyst at Wunderlich Securities, said the actions were necessary. But he’s not convinced it will insulate the company from the polysilicon prices that continue to spiral downward.

“The company is doing what I think they have to do,” he said. “My concern is they’re chasing a rabbit down a hole.” On Thursday, O’Neill cut his rating on MEMC shares to “sell” from “buy” and lowered his price target on the stock to $3 from $11.

The polysilicon boom has gone bust in only a few years as manufacturers around the globe simultaneously raced to add production capacity. The result: Prices that topped $400 a kilogram in 2008 have fallen below $40. They have plunged 45 percent just this year.

Meanwhile, the solar energy market in Europe has suffered as subsidies have begun to dry up. And demand for semiconductors has waned, too. Unlike in past years when consumers snapped up LED televisions and iPads, “we don’t have any hot consumer electronic that’s pulling massive amounts of polysilicon through the sales channel,” O’Neill said.

MEMC isn’t alone among polysilicon producers. “Other vendors in the solar supply chain will be forced to take similar action” in 2012, an analyst at Gilford Securities predicted in a research note on Thursday.

Last month, the International Trade Commission agreed to investigate a complaint by seven solar manufacturers that Chinese competitors were dumping products to injure competitors by driving down prices. MEMC was not among them, and is part of a coalition that believes the case could spark a trade dispute and raise prices for the entire industry.

Low-priced Chinese solar products were also cited by California-based Solyndra Inc. in its September bankruptcy. The case has been scrutinized by Republicans in Congress because the company received a half-billion-dollar federal loan guarantee from the Obama administration.

But just as falling prices have hurt solar wafer producers, they have benefited consumers and generated business for U.S. solar installers such as Clayton-based Microgrid Energy, which has seen its volume of solar work triple from last year.

“Probably once a month we see prices come down,” said Marc Lopata, Microgrid’s president.

Lopata said costs for installed solar energy systems have fallen by about 25 percent from a year ago to $6 a watt or less, depending on the size. And with rebates and tax incentives, consumers are getting about 60 percent back.

MEMC said it will combine its struggling solar materials unit, where 45 percent of jobs are being eliminated, with its SunEdison solar development unit under a single management team at the end of the month to squeeze out efficiencies. In some instances, SunEdison will buy solar wafers from other manufacturers rather than use those made in-house.

The company said it will take charges totaling as much as $1.38 billion in the fourth quarter. More than half of the amount is related to the restructuring plan announced Thursday, with the rest a product of likely goodwill impairments and deteriorating business conditions.

Weak solar and semiconductor markets also prompted MEMC to lower its fourth-quarter earnings forecast by 5 cents to 10 cents a share, excluding the charges. The company said revenue could be $239 million less than expected as some of its SunEdsion sales in Europe could get pushed back to 2012.

Shares of MEMC, which had lost nearly two thirds of their value over the past year, fell sharply in early trading Thursday on the New York Stock Exchange but closed down just a penny at $4.20.

Source

12/04/2011 (6:40 am)

Egypt Brotherhood says won’t impose Islamic values

Filed under: money, usa |

Egypt’s Muslim Brotherhood, emerging as the biggest winner in the first round of parliamentary elections, sought Saturday to reassure Egyptians that it would not sacrifice personal freedoms in promoting Islamic law.

The deputy head of the Brotherhood’s new political party, Essam el-Erian, told The Associated Press in a telephone interview that the group is not interested in imposing Islamic values on Egypt, home to a sizable Christian minority and others who object to being subject to strict Islamic codes.

“We represent a moderate and fair party,” el-Erian said of his Freedom and Justice Party. “We want to apply the basics of Shariah law in a fair way that respects human rights and personal rights,” he said, referring to Islamic law.

The comments were the clearest indication that the Brotherhood was distancing itself from the ultraconservative Islamist Nour Party, which appears to have won the second-largest share of votes in the election’s first phase.

The Nour Party espouses a strict interpretation of Islam similar to that of Saudi Arabia, where the sexes are segregated and women must be veiled and are barred from driving.

Egypt’s election commission has released few official results from the voting on Monday and Tuesday. But preliminary counts have been leaked by judges and individual political groups showing both parties could together control a majority of seats in the lower house of parliament if they did form an alliance.

The Brotherhood recently denied in a statement that it seeks to form an alliance with the Nour Party in parliament, calling it “premature and mere media speculation.”

On Saturday, el-Erian made it clear that the Brotherhood does not share Nour’s more hard-line aspirations to strictly enforce Islamic codes in Egyptians’ daily lives.

“We respect all people in their choice of religion and life,” he said.

Another major check on such an agenda is the council of generals who have run the country since President Hosni Mubarak’s ouster in February. The military council, accused by Egypt’s protest movement of stalling a transition to civilian and democratic rule, is seeking to limit the powers of the next parliament and maintain close oversight over the drafting of a new constitution.

Egypt already uses Shariah law as the basis for legislation, however Egyptian laws remain largely secular as Shariah does not cover all aspects of modern life.

On its English-language Twitter account, the Brotherhood said that its priorities were to fix Egypt’s economy and improve the lives of ordinary Egyptians, “not to change (the) face of Egypt into (an) Islamic state.”

El-Erian urged the Brotherhood’s political rivals to accept the election results.

“We all believe that our success as Egyptians toward democracy is a real success and we want everyone to accept this democratic system. This is the guarantee for stability,” he said.

For decades, Mubarak’s regime suppressed the Brotherhood, which was politically banned but managed to establish a vast network of activists and charities offering free food and medical services throughout the country’s impoverished neighborhoods and villages.

It is the best organized of Egypt’s post-Mubarak political forces.

The vote for parliament’s lower house is taking place over three stages, with 18 provinces in Egypt yet to vote.

Meanwhile, the swearing-in of a new temporary Cabinet was delayed on Saturday due to disagreements over key posts, including over who will lead the ministry in charge of internal security.

An official in the Interior Ministry said several high-ranking security officials have been named as possible replacements but that some have turned down the offer.

Protesters have also strongly objected to the nominations put forward by newly appointed Prime Minister Kamal el-Ganzouri, who served in the same position under ousted President Hosni Mubarak from 1996 to 1999.

The country’s ruling military general, Field Marshal Hussein Tantawi, appointed el-Ganzouri as a new interim prime minister last month after the previous premier’s government resigned in the wake of a police crackdown on protesters that killed over 40 people.

The interim Cabinet will serve until after the parliamentary elections finish in March. A new government is to be formed after the legislature is seated.

Activist Hussein Hammouda, a retired police brigadier, is among those opposed to the names being considered for the Interior Minister post and says someone from outside the police force should be chosen instead.

Protesters in Tahrir Square, the epicenter of Egypt’s protests, released a statement saying they would continue their sit-in while allowing traffic to resume normally in the area.

There were tens of thousands of protesters in the square in the days leading up to the elections, but numbers have dwindled to several hundred since then. Protesters demanding el-Ganzouri be replaced as prime minister said they will keep up another sit-in outside the Cabinet headquarters.

Source

11/30/2011 (11:43 pm)

Customers lined up as Loblaw opens upscale Gardens store

Filed under: banks, uk |

They were lined up 300 deep before the store opened at 8 a.m.

Fans of Maple Leaf Gardens and Loblaws came to see how Canada

11/29/2011 (9:40 am)

Blacks hit hard by government job cuts

Filed under: mortgage, term |

Don Buckley lost his job driving a Chicago Transit Authority bus almost two years ago and has been looking for work ever since, even as other municipal bus drivers around the country are being laid off.

At 34, Buckley, his two daughters and his fiancée have moved into the basement of his mother’s house same day payday loans. He has had to delay his marriage, and his entire savings, $27,000, is gone.

“I was the kind of person who put away for a rainy day,” he said recently. “It’s flooding now.”

Buckley is one of tens of thousands of once solidly middle-class African-American government workers

11/18/2011 (1:08 am)

Spanish bond auction sees interest rate near 7 pct

Filed under: Australia, houses |

Spain paid an interest rate of nearly 7 percent to raise euro3.56 billion ($4.8 billion) in an auction of 10-year bonds Thursday, the highest rate since 1997 and a level seen as unsustainable over the long term.

The finance minister insisted, however, that a bailout was out of the question and said Spain’s overall debt load _ about 70 percent of gross domestic product _ is manageable.

“The sustainability of our debt is beyond any doubt,” Elena Salgado told Cadena Ser radio.

She said the 2011 budget had allotted euro27 billion for debt interest payments and “even with all this tension we are going to spend 3 billion less.”

Salgado also said at least 12 of the 17 countries that use the euro are seeing their borrowing costs rise, so Spain is not a special case.

“We are seeing systematic attacks on our sovereign debt” the minister said. “Today it is Spain, yesterday it was Italy, the day before that it could have been Belgium, and tomorrow it could be any other country, even the ones considered central to the euro, such as Austria or France.”

Thursday’s rate of 6.97 percent compared with 5.43 percent in the last such auction Oct. 20.

Demand was relatively weak. The amount of debt sold came in under the euro4 billion maximum target set by the Treasury and the bid to cover ratio was 1 cheap payday advance.54, compared with 1.76 last time.

After the auction, yields on Spanish 10-year bonds shot up. In early afternoon they stood at 6.79 percent on the secondary market. That was 4.93 percentage points above the yield of the equivalent benchmark German bund.

Spain’s chapter of the European debt crisis has engulfed the campaign for Sunday’s general elections.

Opposition conservatives are expected to score a landslide win over the ruling Socialists, saddled with an economy that has 21.5 percent unemployment, posted zero growth in the third quarter and is not expected to improve much next year.

Spain is struggling to recover significant economic growth after enduring nearly two years of recession prompted in part by the collapse of a real estate bubble. It is the periodic focus of fears it will be the next eurozone country to require a bailout, after Greece, Ireland and Portugal.

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