Financial thoughts

A look at some major retailers’ layaway programs:

 

TOYS R US

Italy’s presidential palace has confirmed that Premier Silvio Berlusconi has resigned, setting in motion a transition aimed at bringing Italy back from the brink of economic crisis.

Cheers broke out in front of the palace by the hundreds of people who gathered to witness Berlusconi’s final act in office, ending a 17-year political era.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ROME (AP) _ An Italian news report says Premier Silvio Berlusconi’s political party will conditionally support a technical government headed by economist Mario Monti.

Italy’s president is expected to ask Monti to try to form a new government once Berlusconi’s resignation is confirmed Saturday night. Monti will be tasked with trying to bring Italy back from the brink of a Greek-style economic crisis.

The LaPresse news agency quotes a statement issued after Berlusconi chaired a meeting of his People of Liberties Party, saying the party would tell President Giorgio Napolitano that it would back Monti. But it said the party would meet again to ensure that Monti’s Cabinet, legislative agenda and the timeframe of his government meet its requirements.

Source

Thailand’s energy minister said the flood crisis in Bangkok is likely to drag on for another month, as authorities issued another evacuation advisory in a northern neighborhood and floodwaters inched further into the city’s heart.

Energy Minister Pichai Naripthaphan said, however, that floods may finally begin to subside in the capital by mid-November, according to a government statement late Monday. On Tuesday, Prime Minister Yingluck Shinawatra announced that she would not be attending the APEC summit this coming weekend in the U.S. due to the floods.

“Now it’s time for all Thai people to help each other, so I’ve informed (the host) that I would not go,” Yingluck said.

Top officials and experts have given varying estimates of how much Bangkok would flood and how long the threat would loom over the city, with some claiming several weeks ago the biggest window of danger to the sprawling metropolis of 9 million people had already passed.

Instead, the flood threat has only intensified, straining sandbag-stacking residents as more and more neighborhoods are swamped each day. The seemingly unstoppable floodwaters have overwhelmed canals, seeped up through drains and poured down condominium-lined highways. The water has now begun surrounding the city’s northernmost subway stops, threatening to shut them down.

Evacuations have been ordered in 12 of Bangkok’s 50 districts, with residents of the northern district of Klong Sam Wa told to leave Monday. The evacuations, which also effect parts of several other districts, are not mandatory, and many people are staying to protect homes and businesses.

On Tuesday, Football Federation Australia said a World Cup qualifier against Thailand scheduled for next week was moved to a smaller stadium in Bangkok because the original venue is being used as a flood evacuation center.

The FFA said in a statement that the Asian Group D match scheduled for Nov. 15 will be moved from the Rajamangala National Stadium in Bangkok’s suburbs to the Suphachalasai Stadium downtown.

The flooding began in late July and has killed 527 people so far, mostly due to drownings. Some provinces to the north of Bangkok have been inundated for more than a month, and waters have started to recede in recent days as massive pools of runoff flow south.

In Nakorn Sawan province, Anan Dirath was forced to live on the second floor of his home for two months. But now that the water has receded to knee level, he has begun to clean up.

This week, Anan armed his two teenage children with mops, scrub brushes and garbage bags. Wading in the water, his family began scrubbing dirt off the walls and collecting the garbage around the house. He said the dirt was difficult to wash off and he has had to scrub the paint off to get rid of it.

“Oh my pretty home. It used to be a pretty two-story home,” he said Monday.

In nearby Nakorn Sawan town center, where the water has dried completely, the government sponsored a cleanup day last week when roads were scrubbed down to get rid of the oily mud left from the floods. Back hoes were used to carry garbage away.

The cleanup also has begun in some parts of Thailand’s ancient capital of Ayutthaya. The prime minister planned to visit the province later Tuesday to witness recovery efforts.

Source

Charter Communications Inc. recorded a narrower third-quarter loss on higher Internet and commercial revenues and lower income tax expenses.

The net loss for the Town and Country-based cable-television provider was $85 million, or 79 cents a share, compared with a loss of $95 million, or 84 cents, in the same quarter last year no fax cash advance.

Total revenue rose 2.3 percent to $1.81 billion.

Source

Today’s record-low mortgage rates are out of reach for millions of U.S. homeowners who would benefit from them most.

One in four homeowners with a mortgage _ 11 million people _ owe more than their home is worth. These “underwater” borrowers have virtually no shot at refinancing.

Their plight is a drag on the housing market and the broader economy.

The Obama administration is hoping at least 1 million of these borrowers will take advantage of its refinancing program under more lenient rules unveiled Monday. Homeowners who are current on their payments will be eligible to refinance no matter how much their home’s value has dropped.

Still, it’s unclear how many borrowers will benefit. Lenders will remain under no obligation to refinance a mortgage they hold.

A growing number of these people are missing mortgage payments and falling into foreclosure. And the higher rates they’re locked into limit how much they can contribute to a weak economy. If they were able to refinance at today’s rates, it could boost consumer spending by tens of billions of dollars, economists say.

Underwater homeowners are paying an average 30-year fixed mortgage rate of 5.7 percent, according to an analysis of mortgage data by CoreLogic and The Associated Press. That compares with today’s average rate of 4.11 percent on a 30-year fixed mortgage. For a homeowner with a $250,000 mortgage, the lower rate would save more than $200 a month.

For many Americans, a few hundred dollars each month would mean the difference between paying their mortgage on time and in full and losing, or walking away from, their home guaranteed online payday loans.

Underwater borrowers are the “most desperate population in the country today,” says Barry Bosworth, an economist at the Brookings Institution.

Dan and Maggie Micoff bought a two-bedroom home in the Detroit suburb of Marine City in 2003. They paid $119,000. Eight years later, they’re underwater with a 6 percent loan.

If they could refinance, the Micoffs, both 58, could shave at least $120 from their monthly bill.

“The banks won’t work with us,” Maggie Micoff said. “We helped bail them out, and now we can’t even get a personal loan to get by. We could rent something for a few hundred dollars cheaper.”

Even among homeowners who do have equity in their homes, few are refinancing. Many have already refinanced within the past year. Others can’t meet tighter lending standards. That’s why underwater borrowers represent the best chance for refinancing to unleash spending that’s otherwise going toward mortgage bills.

With millions locked into artificially high rates, foreclosures are rising. Mortgage default notices surged nationally last month.

Whether the administration’s revamped mortgage refinancing program will reach more Americans this time is unclear, said Mark Vitner, senior U.S. economist at Wells Fargo.

“No one knows if it will spur a lot more people to refinance, but it’s a start,” Vitner said.

Source

Norwegian oil company Statoil ASA said Monday it has agreed to buy Texas-based Brigham Exploration Co. for $4.4 billion in cash, giving it control of fields in North Dakota.

The offer represents $36.5 per share and is a 36 percent premium over the average trading price of Brigham stock for the last 30 days, Statoil said.

The Brigham board of directors has recommended shareholders to accept the offer and the executives of the company have agreed to sell their shares, representing 2.5 percent of the total, Statoil said.

It said the deal will give it more than 375,000 net acres in the Williston Basin, which holds potential for oil production from the Bakken and Three Forks formations in North Dakota. Brigham also holds interests in 40,000 net acres in other areas.

The current production is approximately 21,000 barrels of oil equivalents per day, and could potentially ramp up to 60,000-100,000 over five years, Statoil said.

“The U.S. unconventional plays hold a substantial resource base and represent an increasingly important part of future energy supplies,” Statoil CEO Helge Lund said in a statement.

“Entering the Bakken and Three Forks tight oil plays and taking on operatorship represents a new significant step for Statoil. We are positioning ourselves as a leading player in the fast growing U.S. onshore oil and gas industry, in line with the strategic direction we have set out,” he said.

Brigham is based in Austin, Texas and has over 100 employees in Austin and North Dakota. Statoil said it will maintain the Austin location and retain the current employees.

“We are impressed by the performance and technological prowess demonstrated by the employees of Brigham and look forward to further responsible development of these world class assets. We will build on Brigham’s good neighbor program and continue to engage with local authorities and communities in the Williston Basin area,” said Bill Maloney, executive vice president for Statoil in North America.

The Norwegian company said it expects to close the transaction at the end of the first quarter 2012.

Source

When realtor Desmond Brown walks into a house that’s just too stunning to be someone’s home, he heads to the fridge.

An empty fridge is his second clue that the home has been super staged to appeal to a new generation of buyers who are looking for more of a showcase than a sound house to call their home.

“Gone are the days that you walk into a house and think, ‘Wow, they really lived in this place,” says Brown.

Brown has seen first-time buyers walk out of well-priced condos because the appliances aren’t stainless steel. Even classic old homes graced with original wood trim and hardwood floors are taking longer to sell, he finds, than those that have “the look.”

Call it the HGTV effect.

“This generation’s expectations of what’s reasonable and livable in a house is significantly different than previous generations,” says John Pasalis, a Leslieville realtor whose office deals with a lot of first-time buyers.

“People have this vision based on what they see on TV. Generally, if a house doesn’t have stainless steel appliances, granite countertops, new bathrooms and pot lights, there’s a sense that you’re slumming it.”

Snazz sells, says realtor Irene Kaushansky who has seen young buyers so blinded by the glint of a Wolf gas stove and Sub-Zero fridge, they’ll drive themselves into heavy debt in bidding wars that skew the market by driving prices wildly out of whack.

“I watch some of those shows and I know that’s not reality,” says Kaushansky. “I warn buyers that after they’ve bought the house and all that stuff is gone, it’s not going to look like the same place.”

Staging used to be largely about refreshing a tired-looking home by removing clutter, painting walls and replacing worn carpeting, says Diane Black, who stages more than 200 homes a year in Peel and Halton regions, as well as Toronto’s west-end.

Now it’s all about evoking a lifestyle and making the home appear move-in ready with the “right” modern furniture, art and accessories.

She’s finding a new generation of buyers — on average 15 years younger than sellers — don’t want to do the work, or don’t have the imagination or the money after scrapping together down payments on pricey homes.

“They want that status,” says Black. “They want labels and instant gratification and they want it all yesterday.”

The stakes have been raised since MLS house listings went online and buyers have been able to do more looking on their own, says Black.

“If I can only do one thing for a seller, I want to give that wow HGTV factor online,” which is why art, accessories, materials have become more critical to setting homes apart.

It’s routine now for agents — even in newer suburban neighbourhoods — to recommend that owners spend at least a few thousand dollars on new counters, flooring and fixtures before staking a for sale sign on the front lawn.

But not everything can be “refreshed.”

“The 1980s (suburban) homes are dying because nobody wants eight-ceilings anymore,” says veteran Oakville agent Dan Cooper. “If a house doesn’t have at least nine-foot ceilings, it’s very tough to sell.”

Super staging is so critical in real estate now, Cooper has hired stager Kathy Wood of Divine Design and is now looking to rent space, buy furniture and hire movers to help sellers turn around their homes quickly for what he calls “the want-now generation.”

“The low interest rates don’t help,” because younger buyers tend to take the view they’ll buy the best now and pay for it later, says Cooper. “That’s a recipe for disaster if rates go up.”

Of course, there is obviously payback for putting in a little work before pricing a home for sale, as Janice Hornick discovered when her parents went into long-term care and needed to get rid of the Burlington home where they’d lived for 25 years.

“I thought let’s just get rid of it as is,” says Hornick. “I didn’t want the bother.”

One agent suggested a list price of $360,000. A second agent suggested Hornick call in Diane Black.

Within a month, Black had pink and blue walls repainted in neutral taupes, old carpeting upstairs was replaced with lush berber and the kitchen got a dramatic stainless and granite makeover. Black even removed window mullions to open up the view into the backyard ravine.

Hornick’s jaw dropped when she saw the $35,000 transformation.

The place sold quickly — for $479,000.

What stagers say is in or out, at least as of today

In

“Depersonalized” décor (get rid of all those family photos)

Neutral taupe colours

Natural stone—granite, travertine, slate

Wide-plank flooring

Stainless steel appliances (a must)

Crown moulding

High ceilings

Spa-like bathrooms

Apothocary jars and Pottery Barn-type accessories

Bedrooms retreats with a chaise lounge or comfy seating area

Berber carpeting

Brushed nickel fixtures

OUT

Black or white appliances

Laminate countertops—even in the bathroom

Ceramic tile

Wallpaper

Pinky-beige, yellow and bold wall colours

Panelling/wainscotting

Plastic venetian blinds

Carpeting (except berber)

Brass fixtures

Original thin-strip hardwood/parquet

Source

An Australian court has temporarily banned Samsung from selling its new Galaxy tablet computer in the country, another setback for the South Korean electronics giant in a global patent battle with Apple Inc. that accuses it of slavishly copying the iPad and iPhone.

Federal Court Justice Annabelle Bennett on Thursday granted a temporary injunction against sales of Samsung’s Galaxy Tab 10.1 in Australia. The decision prevents Samsung Electronics Co. from selling the device in Australia in its current form until a further court order, or until a pending patent lawsuit between the warring technology giants is resolved.

The ruling is a blow for Samsung, which had hoped to launch the new product in time for Christmas sales. It comes after courts in other countries including Germany and the Netherlands made judgments that upheld Apple’s claims that its intellectual property had been appropriated by Samsung.

The patent battle spanning 10 countries has underlined the perception of Samsung as an efficient imitator among technology companies rather than a pace setter. Over the years, the company has grown to become the global No. 1 in TVs and No. 2 in smartphones by sales. But unlike archrival Apple Inc., it has not mesmerized consumers with its originality and innovation.

In April, Cupertino, California-based Apple Inc. sued Samsung in the United States, alleging the product design, user interface and packaging of Samsung’s Galaxy devices “slavishly copy” the iPhone and iPad.

Suwon, South Korea-based Samsung Electronics Co No teletrack payday loans. fought back with lawsuits of its own, accusing Apple of patent infringement of its wireless telecommunications technology.

Apple filed the Australian lawsuit in July, accusing Samsung of copying its touch screen technology. In her ruling Thursday, Bennett said she was granting the temporary injunction in part because she felt Apple had a sufficient likelihood of winning the trial against Samsung.

The judge’s full orders will not be published until Friday. It was not immediately clear whether Samsung could _ or would _ attempt to sell a variation of the device that removed the features Apple objected to in the Australian lawsuit.

“We are disappointed with this ruling and Samsung will be seeking legal advice on its options,” Samsung said in a statement. “Samsung will continue its legal proceeding against Apple’s claim in order to ensure our innovative products remain available to consumers.”

Samsung, which filed its Australian countersuit in September, said it remained confident it could prove Apple violated its wireless technology patents.

“We will continue to legally assert our intellectual property rights against those who violate Samsung’s patents and free ride on our technology,” the company said in a statement.

An attorney for Apple declined to comment after the hearing.

Source

A new wrinkle of disagreement has emerged in Missouri’s special legislative session on business incentives: State lawmakers and Gov. Jay Nixon now apparently are at odds over the production of military fighter jets.

The dispute comes after the Missouri House took a roughly half hour break from its debate last week over a wide-ranging business-incentive bill to instead discuss and pass a resolution urging Congress to provide full funding for the F-35 Joint Strike Fighter program. Although the plane is made by Lockheed Martin Corp. in Texas, the House resolution notes that its supplying companies employ more than 500 people in Missouri.

Nixon responded with a written statement last week asserting that the House resolution “simply is not the position of the state of Missouri.” Instead, the governor emphasized Missouri’s support for Boeing Co., makes the F/A-18 jet in St. Louis. Boeing said it employs about 15,000 people in Missouri, including about 5,000 connected with the F/A-18.

Was the House resolution a slap to one of Missouri’s biggest employers? Or was Nixon overreacting to a symbolic gesture that has no real effect?

The resolution’s sponsor, state Rep. Caleb Jones, R-California, said Monday that he had not intended to stir up controversy.

“I’m a big fan of Boeing _ they’re one of our largest employers in the state and I strongly support them,” said Jones, the vice chairman of the House Economic Development Committee. “I also support different companies from throughout Missouri.”

Jones said he sponsored the resolution at the request of a representative of a supplier, though he said Monday that he could not recall the person or the company’s name.

“If this resolution was going to cost Missouri jobs, I wouldn’t have done it,” he said.

The resolution passed the House 127-7, with most of the discussion focused on whether lawmakers were wasting their time on a measure that carried little more importance than a greeting card to Congress, instead of debating their own economic development legislation. Among those voting for the resolution was Rep. Clem Smith, D-St. Louis, a machinist for Boeing.

Representatives ultimately also passed a business incentive bill that would cut corporate income taxes and create new tax credits for computer data centers and international exporters, among others.

Underlying Nixon’s opposition to the House fighter-jet resolution is a concern that Boeing and Lockheed Martin could be in competition to make fighter jets in the future and a desire to avoid more immediate budget cuts to either the F/A-18 or F-35 programs as President Barack Obama and Congress search for ways to reduce the national debt.

Nixon spokesman Sam Murphey on Monday reiterated the governor’s concern about the House’s action.

“This resolution passed by the House last week simply was not the position of the state of Missouri, and it was important for us to clarify the state’s position,” Murphey said.

A Boeing spokesman declined to say whether the company viewed the House resolution as detrimental to its business. Instead the company issued a written statement saying: “We commend Gov. Nixon for his strong commitment to business in the state of Missouri and appreciate his efforts on behalf of the men and women of Boeing.”

Source

Trying to describe the topsy-turvy economy leads folks to reach for all sorts of analogies.

This week, the president of the National Retail Federation said the post-Great Recession consumer is kind of like the tortoise.

“We all remember the fable of the tortoise and the hare,” Matthew Shay said during a conference call with reporters. “Looking at this as a marathon versus a sprint, we think this year there’s nothing wrong with being the tortoise.”

He was talking about group’s forecast that holiday retail spending this year will grow 2.8 percent. In other words, while some people might be disappointed by the painfully slow recovery, at least the economy