Financial thoughts

St. Louis should expect little improvement in the local job market or housing prices this year, according to a dismal new forecast from economists at PNC Bank.

Some excerpts:

St. Louis has not been able to accelerate its economic growth beyond stall speed thus far since the end of the recession. Employment growth is barely positive, and the market area’s labor force is declining in the absence of new job opportunities. What had appeared to be another manufacturing-centric turnaround story alongside so many other Midwest regional economies in early 2011 has sputtered entering 2012. The labor force has either been flat or seen outright declines in three of the past five quarters, indicating that would-be workers are falling out of the labor force count for lack of significant job opportunities. St. Louis looks set for sub par job creation through the next several quarters. Price declines (for homes) show little sign of bottoming out in the very near term, leading to expectations that even minimal price growth will be delayed until 2013. With employment gains temporarily stalled, housing demand will offer little price support in the coming year. St. Louis has traditionally posted a median household income level slightly greater than the Midwest and U.S. averages. This standing is under threat over the next few years, however, as the market area struggles to steady its labor market, and therefore its earnings potential.

The report expands on remarks made by an economist for the large Pittsburgh bank on a visit to St. Louis last week.

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The crash of a new, Russian-made jetliner into a jagged, Indonesian volcano during a flight to impress potential buyers threw doubt on dozens of plane sales Thursday just as Moscow seeks a comeback in foreign markets. All 45 people aboard were feared dead.

Search and rescue teams trudged and climbed through the mist-shrouded, jungly terrain for nearly 20 hours to reach the site where the plane roared in at nearly 480 mph (800 kph) on Wednesday, blowing apart and raining debris down a nearly vertical slope.

When the weather clears, all recovered bodies will have to be hoisted by nets and ropes onto hovering choppers, said Gagah Prakoso, a spokesman for the national search and rescue agency.

“We’re still searching for survivors,” he said. “But it doesn’t look good.”

The Sukhoi Superjet-100 _ Russia’s first new model of passenger jet since the fall of the Soviet Union two decades ago _ was supposed to kick-start the nation’s efforts to modernize its fleet and resurrect its neglected aerospace industry.

Indonesia, the fourth stop of a six-nation “Welcome Asia!” tour, was one of Sukhoi’s brightest hopes, accounting for a big chunk of the 170 orders taken globally so far.

Kartika Airlines, Sky Aviation and Queen Air _ among dozens of airlines to have popped up in the nation of 240 million to meet the growing demand for cheap air travel in the last decade _ together were aiming to buy 48.

“Our plan is to order 30 planes, gradually until 2014, to strengthen our fleet,” said Arifin Seman, one of the top executives at Kartika. “But we will wait for the result of the investigation before making any further decisions.”

Others, too, were being cautious.

“It’s too early to say,” said Krisman Tarigan, president director of Sky, which has placed orders for 12. “But we wouldn’t rule out cancellation … if it turned out the crash occurred because the plane was not airworthy.”

The ill-fated Superjet was carrying dozens of representatives from local airlines and journalists on what was supposed to be a quick, 50-minute demonstration flight Wednesday. Some excited passengers snapped pictures of themselves smiling and waving in front of the twin-engine jet before lifting off, then quickly posting them as profile pictures on Facebook and Twitter.

Just 21 minutes after takeoff from a Jakarta airfield, however, the Russian pilot and co-pilot asked for permission to drop from 10,000 feet to 6,000 feet (3,000 meters to 1,800 meters), said Daryatmo, chief of the national search and rescue agency free business cards.

They gave no explanation, disappearing from the radar immediately afterward.

It was not clear why the crew asked to shift course, especially since they were so close to the 7,000-foot (2,200-meter) volcano, or whether they got an OK, Daryatmo said.

Communication tapes will be reviewed as part of the investigation. It’s unlikely they will be released to the public any time soon.

The plane, with a relatively low price tag of around $35 million, seats from 70 to 98 people and has an operating range of around 2,800 miles (4,500 kilometers).

It is seen as a potential challenger to similar-sized aircraft from Canada’s Bombardier Inc. and Brazil’s Embraer SA.

Future buyers will scrutinize the crash investigation for signs of flaws in the aircraft, said Tom Ballantyne, a Sydney-based aviation expert.

“If it’s a technical fault … then obviously that will be very serious for them,” he said. “But if it’s pilot error or the fault of air traffic control, it won’t be quite so bad because they’ll be able to say, ‘Well, it’s not the airplane.’”

The Superjet made its inaugural commercial flight in April last year.

Fitch Ratings agency said in a statement Thursday that it expects the crash to “negatively affect” Sukhoi orders for the short term.

“The accident represents a further setback to the ambitious Russian civilian aerospace industry,” it said, adding that the success of the Superjet “is especially important as it is the first of many new commercial aircraft to be launched.”

“Instead, it has suffered from a three-year development delay, poor initial market reception and minor operational difficulties” since its entry into commercial service, the agency said.

All but 10 of the 45 people on board the plane Wednesday were potential buyers and journalists, said Sunaryo from PT Trimarga Rekatama, the company that helped organize the event.

The others were Russians, all from Sukhoi companies, an American consultant with a local airline and a Frenchman with aircraft engine-maker Snecma.

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Germany and the European Commission on Tuesday called on EU nations to stick to their agreed budget cuts despite mounting voter discontent, but promised some new efforts to boost growth to alleviate economic hardship.

In elections on Sunday, voters in France and Greece gave strong support to parties who want to roll back or slow down the spending cuts and tax increases that have defined Europe’s response to its debt crisis.

That added to cries from labor unions and some governments for more measures to boost economic growth to offset the devastating impact on jobs that austerity measures are having.

Officials in Berlin and Brussels said there was some room for more reforms to help growth, but insisted that any new growth policies must not detract from Europe’s drive to lower its deficits.

European Commission President Jose Manuel Barroso said there could be no fundamental change in direction.

“What member states have to do is be consistent, implementing the policies that they have agreed,” Barroso told reporters on the eve of Europe Day, which celebrates the ever closer cooperation between the nations of the Continent. “Now, the key is implementation.”

On Sunday night, however, the calls from some European capitals were different, with French socialist president-elect Francois Hollande vowing that “austerity can no longer be inevitable.”

In Greece, parties that rejected belt-tightening made big gains and there were fears that the new leadership would renege on commitments made to secure the country’s massive rescue loans. An outright rejection of the bailout could eventually see Greece leave the euro currency bloc, a possibility that was unnerving financial markets.

As the debate over austerity intensified, EU President Herman Van Rompuy called for an informal summit of the 27 EU government leaders on May 23 to discuss economic growth and to prepare for a summit in June focused on job creation short term personal loans.

Barroso discounted the notion that Europe was going to revise its fiscal policy commitments.

“It would be completely demagogical and not serious to propose to some of our member states to relax now the efforts of fiscal consolidation,” he said.

He insisted that sustained debt reduction was essential to convince markets, build confidence and cut borrowing costs. “Every euro spent on interest payments is a euro less for jobs and investment,” he said.

Germany largely backed the Commission’s stance of staying rigid on fiscal restraint while seeking concerted measures for growth.

“The end of the debt policy has been agreed in Europe. It has to stay that way,” said German Foreign Minister Guido Westerwelle in Berlin.

Like Barroso, he suggested that economic growth could be enhanced, but through structural reforms _ not through increased government spending.

“It’s right that we are simultaneously creating new growth impulses. That’s why we have to add to the fiscal pact for less debt a growth pact for more competitiveness.

“I’m very confident that we will be able to overcome the crisis this way with less debt and more growth. Both belong together,” he said.

The debate on the policies should come up at the May 23 summit, the first for newly elected President Hollande.

Outgoing president Nicolas Sarkozy and German Chancellor Angela Merkel worked closely together to set the EU course out of the financial crisis. Now, Hollande comes in with his own agenda.

He said his first act as president will be to write a letter to other European leaders calling for a renegotiation of a budget-trimming treaty aimed at bringing the continent’s economies closer together _ a stance that puts him at odds with Merkel.

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India deferred a plan to clamp down on tax avoidance by a year after the proposals stoked concern that foreign investment will decline and hurt growth in Asia

On the road to this week’s launch of their new running apparel line, Michael Burnstein and Dave Spandorfer have learned a lot of valuable lessons, including this one: use a brand name that a) people can easily pronounce and b) doesn’t create confusion with a wildly popular British singer and songwriter.

Last year, they changed the name of their company from Edele — or “opportunity” in Amharic — to Janji — or “promise” in Malay.

“We’re pretty sold on Janji now,” said Spandorfer, smiling, as he met for coffee earlier this week. “Janji has a nice springy feel to it. And people remember it — unlike Edele, Adele, whatever you want to call it.”

They held a launch party for Janji this week at Big River Running in west St. Louis County. In the coming weeks and months, they will be hitting the road for Boston, Chicago, and Anchorage to attend similar events at stores that will soon begin carrying their products.

In total, about 70 specialty running stores have already placed orders for their shirts and running shorts — a number that at times astounds even them.

“They could easily wait and see how the launch goes and then decide to carry us,” Burnstein said. “These are small business owners and it’s a pretty big risk for them to take on a new product.”

The two first hatched the idea for the clothing line on a bus trip on the way to a track tournament in 2010. They were both then members of the Washington University cross country team. (Spandorfer graduated last year and Burnstein is just finals away from finishing his senior year.)

They knew that runners like to participate in races for just about every cause under the sun. So, they thought, why not imbue that same sense of social conscious into a clothing line?

For every pair of shorts ($38) or shirt ($30) a customer buys, the company donates $4 to a nonprofit organization. For example, some of the proceeds from the shirt modeled after the Haitian flag goes to Meds and Food for Kids, which works with undernourished children in Haiti. And a line of Kenyan-themed products helps fund KickStart, which sells subsidized water pumps to people in Kenya.

In addition to changing the brand name, another challenge along the way has been finding a factory to make the clothes. They initially worked with a factory in Vietnam, but were not satisfied by the samples they received back.

Even though it delayed their launch, they decided to find a different factory. After receiving some 400 samples, they settled on a factory in China that they found through a sourcing agent in St payday loans. Louis.

“One of our biggest concerns is having ethical labor standards,” Spandorfer said. “We know if we don’t do that right, no matter how great our mission is, it won’t matter.”

So they had a third party agent check out the factory. Then more recently, one of their team members flew out there to oversee production and to check out the working conditions firsthand.

They’ve received a lot of help along the way, too. They won $15,000 through Washington University’s Skandalaris Center for Entrepreneurial Studies. And they raked in another $20,000 from a contest through the University of Colorado at Colorado Springs. On top of that, their families and friends have chipped in some start-up funds.

They eventually have plans to expand the product line and to partner with more nonprofits.

But for the time being, they are focused on the initial launch. And for Burnstein, he’s got finals, track tournaments and graduation to juggle, too.

CITY FOR CHEAPSKATES

At first blush, it may not seem like an honor to be called the best city for cheapskates.

But upon further reflection, St. Louis’ clinching of the top spot in Kiplinger.com’s list of top 10 cities for cheapskates may just be something to brag about.

St. Louisans earn roughly the same income as other Americans, our cost of living is 9 percent below the norm).

It listed free — or nearly free — stuff to do as judged by number of libraries and museums in region (St. Louis Zoo, Science Center, Citygarden, etc.), and the number of Dollar General stores in the region (59 in a 30-mile radius for the Lou!).

“St. Louis isn’t a huge city, but if we’re counting per capita, it boasts more museums and libraries than any city on our list (and it beats New York and Washington, D.C., by a factor of 25),” the website writes.

That’s definitely nothing to be ashamed about.

So the next time your mother (or friend or whoever) asks you why you live in the one of the “most dangerous” cities in the U.S. — one of the city’s other rankings over the years — just tell them it’s because you’re a cheapskate.

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Oracle Corp. has accused Google Inc. of patent and copyright infringement. Much of the dispute is over Google’s Android, the mobile operating system that now powers more than 300 million smartphones and tablet computers.

Here are key developments in that case:

Jan. 27, 2010: Oracle closes deal to buy Sun Microsystems and gets the Java computer programming language and related technology that is central to the lawsuit.

Aug. 12: Oracle sues Google in U.S. District Court in San Francisco. Oracle says Google’s Android system for mobile phones infringes on its patented Java technology.

Sept. 12, 2011: The CEOs of both companies are ordered to attend a court-supervised attempt to settle a lawsuit. They attend sessions on Sept. 19 and 21 with no settlement reached.

March 27, 2012: In a joint statement, the two companies indicate they are far apart of key matters. Oracle is seeking hundreds of millions in damages, while Google believes it won’t have to pay more than a few million dollars.

April 16: Trial begins, with the copyright issues central to the first phase Faxless payday loans. In opening statements, Oracle says Google’s top executives have long known that they stole a key piece of technology to build Android.

April 17: Google’s opening statements frame the case as Oracle’s response to its own failure to build mobile software. Oracle CEO Larry Ellison admits under questioning by Google that Oracle wanted to compete with Android before deciding instead to sue Google. Google CEO Larry Page also takes the stand, sporting a suit and tie that is a departure from his usual casual attire.

April 18: Page returns to the witness stand. The taciturn Page often looked uncomfortable, as he deflected questions about his role. He frequently said he couldn’t remember seeing some of the internal Google documents that Oracle is using to build its case.

Monday: Lawyers make closing arguments on the copyright issues. Judge sends case to jury for deliberations.

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WASHINGTON

Asian stock markets struggled for direction Thursday as investors remained wary following more unsettling news from economically fragile Spain and a record trade deficit in Japan.

Tokyo’s Nikkei 225 stock average slipped after the country _ which for decades has blanketed the world with its exports _ posted its biggest annual trade deficit ever.

The benchmark index fell 0.6 percent to 9,609.89 after the Finance Ministry said exports for the fiscal year that ended March 31 dropped 3.7 percent from the previous year, while imports climbed 11.6 percent.

The trade deficit for the year was 4.41 trillion yen ($54 billion). With all but one of Japan’s 54 nuclear power reactors offline in the aftermath of last year’s nuclear disaster, the country has been forced to rely on imported oil and gas to generate electricity.

South Korea’s Kospi index opened higher then slipped into negative territory, falling 0.2 percent to 2,002.75.

But Hong Kong’s Hang Seng index held onto its gains, rising 0.4 percent to 20,865.11 while Australia’s S&P/ASX 200 added 0.4 percent to 4,365.90.

Benchmarks in mainland China, Indonesia, New Zealand and the Philippines fell, while Singapore and Taiwan rose.

The Bank of Spain said the amount of bad loans held by Spanish banks rose to an 18-year high in February. If those banks falter, it would put pressure on Spain’s already troubled government to prop them up.

The next key indicator for Spain will occur Thursday when the country holds a 10-year bond auction.

Spain’s problems have added to ongoing worries about global economic growth because China’s economy also is slowing.

Wall Street fell Wednesday on concerns about Europe’s debt crisis. The Dow Jones industrial average fell 0.6 percent to 13,032.75. The Standard & Poor’s 500 fell 0.4 percent to 1,385.14. The Nasdaq composite index fell 0.4 percent to 3,031.45.

Benchmark oil for May delivery was up 10 cents to $102.77 per barrel in electronic trading on the New York Mercantile Exchange. The contract declined $1.53 to finish at $102.67 per barrel on Wednesday.

In currency trading, the euro fell to $1.3120 from $1.3133 late Wednesday in New York. The dollar rose to 81.46 yen from 81.24 yen.

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Retail sales in the U.S. probably rose in March and housing demand stabilized, bolstering the world