Nasdaq slides 1 percent; Dow, S&P 500 fall further


NEW YORK (Reuters) -Stocks added to losses, with the Nasdaq falling more than 1 percent, on Monday as the market retreated from recent gains and as data on factory orders fell short of expectations.


The Dow Jones industrial average <.dji> was down 121.37 points, or 0.87 percent, at 13,888.42. The Standard & Poor's 500 Index <.spx> was down 13.55 points, or 0.90 percent, at 1,499.62. The Nasdaq Composite Index <.ixic> was down 35.02 points, or 1.10 percent, at 3,144.07.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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Visa sued by Australia regulator







Australia’s competition watchdog has sued credit card company Visa for alleged “misuse of market power”.






It has accused Visa of preventing customers from using a currency of their choice in transactions.


The regulator also alleged that Visa “engaged in exclusive dealing” and barred retailers from using rival currency conversion services.


The Australian Competition and Consumer Commission alleged that such practices were meant to boost Visa’s revenue.


Rod Sims, chairman of the Australian Competition and Consumer Commission (ACCC) said that such moves meant that travellers to Australia were not able to decide “who does their currency conversion when withdrawing cash from an ATM”.


“In particular, they are denied the ability to know the cost of transactions in their own currency at the time the transaction is made.”


He added that Visa’s practices of not allowing use of rival currency conversion systems at merchant outlets also meant that retailers were denied opportunity to share the revenue arising from such transactions.


“Finally, it is alleged that Australian suppliers of dynamic currency conversion (DCC) services were, and continue to be, denied the opportunity to compete with Visa in relation to DCC services at ATMs.”


BBC News – Business





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8 Tax Moves to Make Now






Transmitters have been storing up tax return data for weeks, just chomping at the bit, waiting for the starting pistol to go off. Finally, this week, the IRS opened the e-filing gates. See: Do your federal taxes for free


Still, things are running behind schedule this year. Common refund-generating forms, like the Education Credit, for instance, (see “Instructions for Form 8863”) are not being processed until the end of February. (See the IRS’s list of late forms.) This is holding up refunds for taxpayers, as well as fees for tax professionals — who often don’t get paid until the tax return is filed. One tax pro even asked me whether it would be unethical to complete and file tax returns without the Form 8863 — and amend them later.






Here’s what we can and should be doing in February.


1. Track down stray forms.


W-2s and 1099s are rolling in. They should all have been postmarked by Jan. 31. If you don’t receive them by mid-February, track them down — especially if you’ve moved since filling out W-4s and W-9s. Contact your former employers — and clients. But remember, if you’re self-employed, don’t do your bookkeeping by collecting 1099s. It’s up to you to keep your own records.


2. Get an IP PIN.


Identity theft is on the rise. At a recent San Fernando Valley Breakfast Meeting for tax professionals, practically every single tax pro said they had clients who’d been ID-theft victims. If your identity has been compromised, make sure you get your special IP PIN. Fill out Form 14039, the Identity Theft Affidavit (find Form 14039 here). If you did that last year and still haven’t received a PIN, contact the IRS immediately (see the IRS Identity Protection page). If you find yourself getting nowhere after 30 days, contact the Taxpayer Advocate Service at 1-877-777-4778 (or find them online).


This special IP PIN is issued to people who have informed the IRS that someone may have filed a fraudulent tax return using their Social Security number. Getting an IP PIN will ensure that only you are able to file a tax return using your own Social Security number. Even if you were a victim of credit card-related identity theft rather than tax-related theft, alert the IRS.


3. File a new W-4.


Provide your employer with a new W-4 Form for 2013 if you told them you were exempt from withholding last year. If you end up with a refund for 2012, or owe less than $ 1,000 (see Tax Withholding rules here), you may file exempt again this year.


4. Businesses: Submit paper 1099s.


Businesses that file 1099s on paper must submit them by Feb. 28. Those who file electronically can wait until March 31. Remember, W-2s and 1099s should have been sent to recipients by Jan. 31. One of the reasons to hold off filing the forms for a month or so is to wait for corrected information. Some workers may have moved. Others may find discrepancies between their numbers and yours. Making corrections before filing the 1099s and W-2s means that you don’t have to file amendments with Uncle Sam.


5. Check for duplicated income.


Steven Aldrich, CEO of Outright.com, a Go Daddy company, recommends reviewing1099-MISC and 1099-K forms carefully. It’s quite possible that you could get a 1099-MISC from your vendors, and a 1099-K from your merchant account processor for the same work. There may be overlapping amounts, making it appear that you earned more than you really did. Keeping good books — using a system like Outright.com, FreshBooks or QuickBooks — will ensure you know how much you really earned. (Note: TaxMama is holding a workshop in late February on how to adjust your tax returns to avoid paying tax on duplicated income. To get an invitation, sign up for a free TaxMama.com membership here.


6. Schedule your tax appointment.


Aldrich also recommends that you say hello to your accountant. Remind your tax pro that you want an appointment with him or her. If you don’t already have one, choose a tax preparer or accountant now so that they have time to talk with you about tax-planning as well as tax-preparation matters. You can work with an Enrolled Agent (link), a CPA (link) or an RTRP (link). (Note: The IRS has suspended the Registered Tax Return Preparer (RTRP) program, due to a court order. However, over 53,000 tax preparers have already earned the RTRP license.)


7. Set up a filing system for 2012 documents.


In January, we talked about setting up your 2013 filing system. With all the 2012 documents coming in now, this is also a good time to set up your 2012 filing system. Aldrich thinks it’s wise to keep everything in one place. Organize the information into folders if it’s on paper, or enter the data into spreadsheets. Remember to separate personal spending from business spending to make tax preparation easy, regardless of how you prepare your returns (paper and pencil, tax software, accountant). These expense categories were used by many e-commerce businesses last year: cost of goods sold, marketplace fees, shipping costs, office supplies, and utilities. Service businesses generally reported expenses in these categories: taxes/licenses, office supplies, meals, and travel.


When it comes to organizing and storing your documents in the cloud, you have a free resource at TaxACT’s DocVault (link). Or you can dump your boxes and bags of records on ShoeBoxed.com (link) and let them organize it for you. Incidentally, every resource mentioned in this article has mobile apps to let you upload or transmit data on the go.


8. Set up your EFTPS account.


Taxpayers who expect to be making estimated tax payments should set up an Electronic Federal Tax Payment System (EFTPS) account this month. This will enable you to pay all federal taxes, without a fee, directly from your bank account. This is perfect if you’re a procrastinator and often make payments at the last minute.


Check to see if your state has a similar system. (Find your state’s tax site here.)


Incidentally, one of the fun things to do this month is to watch the tax commercial wars. TurboTax got so aggressive in its commercials this year that H&R Block filed a motion in the U.S. District Court to get an injunction against several of the ads. They didn’t get the injunction. Instead, H&R Block is running some ads of its own, highlighting the skills of its tax professionals. Keep watching, all the tax ads are getting better.


Eva Rosenberg is the publisher of TaxMama.com (www.taxmama.com), where your tax questions are answered for free. She is the author of several books and ebooks, including the newest edition of “Small Business Taxes Made Easy.” And she teaches tax courses at IRSExams.com and CPE Link.


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Ravens edge 49ers 34-31 in electric Super Bowl


NEW ORLEANS (AP) — For a Super Bowl with so many story lines, this game came up with quite a twist.


Try a blackout that turned a blowout into a shootout — capped by a brilliant defensive stand.


The Baltimore Ravens survived a frenzied comeback by the San Francisco 49ers following a 34-minute delay in the third quarter for a power outage Sunday night, winning their second championship 34-31. Super Bowl MVP Joe Flacco threw three first-half touchdown passes, Jacoby Jones ran back the second-half kickoff a record 108 yards for a score, and star linebacker Ray Lewis' last play fittingly was part of a defensive effort that saved the victory.


"To me, that was one of the most amazing goal-line stands I've ever been a part of in my career," said Lewis, who announced a month ago he would retire when the Ravens were done playing.


They are done now, with another Vince Lombardi Trophy headed for the display case.


"What better way to do it," Lewis said, "than on the Super Bowl stage?"


That stage already was loaded with plots:


—The coaching Harbaughs sibling rivalry, won by older brother John, who said the postgame greeting with Jim was "painful."


—Flacco's emergence as a top-level quarterback, and his impending free agency.


—Colin Kaepernick's rapid rise in the last two months as 49ers QB.


—The big game's return to the Big Easy for the first time in 11 years, and the first time since Hurricane Katrina ravaged the city in 2005.


—Lewis' self-proclaimed "last ride."


But when the Superdome lost power, well, that wasn't in anyone's scenario.


Flacco and the Ravens (14-6) were turning the game into a rout, leading 28-6 when, without even a flicker of warning, several banks of lights and the scoreboards went dark. Players from both sides stretched and chatted with each other in as bizarre a scene as any Super Bowl has witnessed.


"The bad part was we started talking about it," said safety Ed Reed, who had the game's only interception. "That was mentioned. It was like they were trying to kill our momentum."


After power was restored, the 49ers began playing lights out.


San Francisco (13-5-1), in search of its sixth Lombardi Trophy in as many tries, got back in the game almost immediately.


Michael Crabtree's 31-yard touchdown reception, on which he broke two tackles, made it 28-13. A few minutes later, Frank Gore's 6-yard run followed a 32-yard punt return by Ted Ginn Jr., and the 49ers were within eight.


Ray Rice's fumble at his 24 led to David Akers' 34-yard field goal, but Baltimore woke up for a long drive leading to rookie Justin Tucker's 19-yard field goal.


San Francisco wasn't done challenging, though, and Kaepernick's 15-yard TD run, the longest for a quarterback in a Super Bowl, made it 31-29. A 2-point conversion pass failed when the Ravens blitzed.


Tucker added a 38-yarder with 4:19 remaining, setting up the frantic finish.


Kaepernick couldn't get the 49ers into the end zone on the final three plays. The last was a pass into the right corner of the end zone to Crabtree that involved some incidental bumping. Jim Harbaugh insisted a flag should have been thrown.


"There's no question in my mind that there was a pass interference and then a hold," Jim Harbaugh said.


Ravens punter Sam Koch took a safety for the final score with 4 seconds left. Koch's free kick was returned by Ginn to midfield as time ran out.


"How could it be any other way? It's never pretty. It's never perfect. But it's us," John Harbaugh said of his Ravens. "It was us today."


Barely.


"Yeah, I think that last drive when we got the ball and had time to go down and score a touchdown," Kaepernick said, "we thought it was our game."


But the championship is Baltimore's.


As for the foul-up at America's biggest sporting event, officials revealed that an "abnormality" in the power system triggered an automatic shutdown, forcing backup systems to kick in. But no one was sure what caused the initial problem.


Everything changed after that until Lewis and Co. shut it down. But there were plenty of white-knuckle moments and the Ravens had to make four stops inside their 7 at the end.


"I think it speaks to our resolve, speaks to our determination, speaks to our mental toughness," John Harbaugh said. "That is what wins and loses games."


At 4 hours, 14 minutes, it was the longest Super Bowl ever.


Flacco's arrival as a championship quarterback — he had 11 postseason TD passes, tying a league mark, and no interceptions — coincides with Lewis' retirement. The win capped a sensational four games since Lewis announced he was leaving the game after 17 Hall of Fame-caliber years.


The Ravens will become Flacco's team now, provided he reaches agreement on a new contract.


Flacco's three TD passes in the opening half tied a Super Bowl record. They covered 13 yards to Anquan Boldin, 1 to Dennis Pitta and 56 to Jones.


That start boosted him to the MVP award.


"They have to give it to one guy and I'm not going to complain that I got it," Flacco said.


John Harbaugh had no complaints about getting that other trophy named after that Green Bay coach. But he struggled to balance it with the disappointment his brother was feeling.


"The meeting with Jim in the middle (of the field for the postgame handshake) was probably the most difficult thing I have ever been associated with in my life," the Ravens coach said.


The wild scoring made this the second championship in the NFL's 80-year title game history in which both teams scored at least 30 points. Pittsburgh's 35-31 win over Dallas in 1979 was the other.


The Ravens stumbled into the playoffs with four defeats in its last five regular-season games as Lewis recovered from a torn right triceps and Flacco struggled. Harbaugh even fired his offensive coordinator in December, a stunning move with the postseason so close.


But that — and every other move Harbaugh, Flacco and the Ravens made since — were right on target.


New Orleans native Jones, one of the stars in a double-overtime playoff win at Denver, seemed to put the game away with his record 108-yard sprint with the second-half kickoff.


Soon after, the lights went out — and when they came back on, the Ravens were almost powerless to slow the 49ers.


Until the final moments.


"The final series of Ray Lewis' career was a goal-line stand," Harbaugh said.


Lewis was sprawled on all fours, face-down on the turf, after the end zone incompletion.


"It's no greater way, as a champ, to go out on your last ride with the men that I went out with, with my teammates," Lewis said. "And you looked around this stadium and Baltimore! Baltimore! We coming home, baby! We did it!"


Jim Harbaugh, the coach who turned around the Niners in the last two years and brought them to their first Super Bowl in 18 years, had seen his team make a similarly stunning comeback in the NFC championship at Atlanta, but couldn't finish it off against Baltimore.


"Our guys battled back to get back in," the 49ers coach said. "I thought we battled right to the brink of winning."


The 49ers couldn't have been sloppier in the first half, damaging their chances with penalties — including one on their first play that negated a 20-yard gain — poor tackling and turnovers. Rookie LaMichael James fumbled at the Baltimore 25 to ruin an impressive drive, and the Ravens converted that with Flacco's 1-yard pass to Pitta for a 14-3 lead.


On San Francisco's next offensive play, Kaepernick threw behind Randy Moss and always dependable Reed picked it off. A huge scuffle followed that brought both Harbaughs onto the field and saw both sides penalized 15 yards for unnecessary roughness.


Reed, also a New Orleans native, tied the NFL record for postseason picks with his ninth.


Baltimore didn't pounce on that mistake for points. Instead, Tucker's fake field goal run on fourth-and-9 came up a yard short when Chris Culliver slammed him out of bounds.


The Ravens simply shrugged, forced a three-and-out, and then unleashed Jones deep. Just as he did to Denver, he flashed past the secondary and caught Flacco's fling. He had to wait for the ball, fell to the ground to grab it, but was untouched by a Niner. Up he sprang, cutting left and using his speed to outrun two defenders to the end zone.


Desperate for some points, the 49ers completed four passes and got a 15-yard roughing penalty against Haloti Ngata, who later left with a knee injury. But again they couldn't cross the goal line, Paul Kruger got his second sack of the half on third down, forcing a second field goal by Akers, from 27 yards.


When Jones began the second half by sprinting up the middle virtually untouched — he is the second player with two TDs of 50 yards or more in a Super Bowl, tying Washington's Ricky Sanders in 1988 — the rout was on.


Then it wasn't.


"Everybody had their hand on this game," 49ers All-Pro linebacker Patrick Willis said. "We point the fingers at nobody. We win together and we lose together, and today we lost it."


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Hillary: Secretary of empowerment




Girls hug U.S. Secretary of State Hillary Clinton during a 2010 tour of a shelter run for sex trafficking victims in Cambodia.




STORY HIGHLIGHTS


  • Donna Brazile: Clinton stepping down as Secretary of State. Maybe she'll run for president

  • She says as secretary she expanded foreign policy to include effect on regular people

  • She says she was first secretary of state to focus on empowering women and girls

  • Brazile: Clinton has fought for education and inclusion in politics for women and girls




Editor's note: Donna Brazile, a CNN contributor and a Democratic strategist, is vice chairwoman for voter registration and participation at the Democratic National Committee. She is a nationally syndicated columnist, an adjunct professor at Georgetown University and author of "Cooking with Grease." She was manager for the Gore-Lieberman presidential campaign in 2000.


(CNN) -- As Secretary of State Hillary Rodham Clinton steps down from her job Friday, many are assuming she will run for president. And she may. In fact, five of the first eight presidents first served their predecessors as secretary of state.


It hasn't happened in more than a century, though that may change should Clinton decide to run. After all, she has been a game changer her entire life.


But before we look ahead, I think we should appreciate what she's done as secretary of state; it's a high profile, high pressure job. You have to deal with the routine as if it is critical and with crisis as if it's routine. You have to manage egos, protocols, customs and Congress. You have to be rhetorical and blunt, diplomatic and direct.



CNN Contributor Donna Brazile

CNN Contributor Donna Brazile



As secretary of state you are dealing with heads of state and with we the people. And the president of the United States has to trust you -- implicitly.


On the road with Hillary Clinton


Of all Clinton's accomplishments -- and I will mention just a few -- this may be the most underappreciated. During the election, pundits were puzzled and amazed not only at how much energy former President Bill Clinton poured into Obama's campaign, but even more at how genuine and close the friendship was.


Obama was given a lot of well-deserved credit for reaching out to the Clintons by appointing then-Sen. Hillary Clinton as his secretary of state in the first place. But trust is a two-way street and has to be earned. We should not underestimate or forget how much Clinton did and how hard she worked. She deserved that trust, as she deserved to be in the war room when Osama bin Laden was killed.


By the way, is there any other leader in the last 50 years whom we routinely refer to by a first name, and do so more out of respect than familiarity? The last person I can think of was Ike -- the elder family member who we revere with affection. Hillary is Hillary.


It's not surprising that we feel we know her. She has been part of our public life for more than 20 years. She's been a model of dignity, diplomacy, empathy and toughness. She also has done something no other secretary of state has done -- including the two women who preceded her in the Cabinet post.


Rothkopf: President Hillary Clinton? If she wants it



Hillary has transformed our understanding -- no, our definition -- of foreign affairs. Diplomacy is no longer just the skill of managing relations with other countries. The big issues -- war and peace, terror, economic stability, etc. -- remain, and she has handled them with firmness and authority, with poise and confidence, and with good will, when appropriate.


But it is not the praise of diplomats or dictators that will be her legacy. She dealt with plenipotentiaries, but her focus was on people. Foreign affairs isn't just about treaties, she taught us, it's about the suffering and aspirations of those affected by the treaties, made or unmade.








Most of all, diplomacy should refocus attention on the powerless.


Of course, Hillary wasn't the first secretary of state to advocate for human rights or use the post to raise awareness of abuses or negotiate humanitarian relief or pressure oppressors. But she was the first to focus on empowerment, particularly of women and girls.


She created the first Office of Global Women's Issues. That office fought to highlight the plight of women around the world. Rape of women has been a weapon of war for centuries. Though civilized countries condemn it, the fight against it has in a sense only really begun.


Ghitis: Hillary Clinton's global legacy on gay rights


The office has worked to hold governments accountable for the systematic oppression of girls and women and fought for their education in emerging countries. As Hillary said when the office was established: "When the Security Council passed Resolution 1325, we tried to make a very clear statement, that women are still largely shut out of the negotiations that seek to end conflicts, even though women and children are the primary victims of 21st century conflict."


Hillary also included the United States in the Trafficking in Person report. Human Trafficking, a form of modern, mainly sexual, slavery, victimizes mostly women and girls. The annual report reviews the state of global efforts to eliminate the practice. "We believe it is important to keep the spotlight on ourselves," she said. "Human trafficking is not someone else's problem. Involuntary servitude is not something we can ignore or hope doesn't exist in our own communities."


She also created the office of Global Partnerships. And there is much more.


She has held her own in palaces and held the hands of hungry children in mud-hut villages, pursuing an agenda that empowers women, children, the poor and helpless.


We shouldn't have been surprised. Her book "It Takes a Village" focused on the impact that those outside the family have, for better or worse, on a child's well-being.


As secretary of state, she did all she could to make sure our impact as a nation would be for the better.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Donna Brazile.






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NBC News President Capus to leave network






(Reuters) – NBC News President Steve Capus will be leaving the network in the coming weeks after struggles at the unit, including lower ratings for its flagship morning TV show, “Today.”


No replacement has been named for Capus, president of NBC News since 2005, according to a company memo obtained by Reuters. In a statement, Capus said it was “now time to head in a new direction.”






Three sources close to NBC said his departure had been rumored around the halls after parent Comcast Corp reorganized the news division in July, bringing in Patricia Fili-Krushel to head the news unit’s business operations. After that change, these sources said, Capus’ departure became a matter of when, not if.


Prior to Comcast’s takeover, the three heads of NBC‘s news operations — Mark Hoffman at CNBC, Phil Griffin at MSNBC and Capus — all reported directly to Jeff Zucker, who was not only NBC’s chief executive but also well-versed in hard news.


“There was a natural flow to the news division under Zucker. They all spoke the same language,” said one of these sources. “No disrespect to Pat, but she’s not viewed as a news person.”


Indeed, both Capus and Zucker basically grew up with each other at NBC, spending about 20 years together at the network. Capus did not say what his next move would be. Zucker, the executive who promoted him seven years ago at NBC, is now the worldwide president of CNN, owned by Time Warner Inc.


The sources said it would not be a surprise if Capus eventually resurfaced in a new position under Zucker at CNN. Earlier this week, Mark Whitaker, the managing editor at CNN, announced his resignation to make room for Zucker to install his own team. Prior to his joining CNN, Whitaker worked at NBC News under both Capus and Zucker.


Fili-Krushel said in a memo to staff on Friday that until a replacement for Capus is found, NBC News will operate under an interim structure with various executives reporting to her. She will start the search for a successor in coming weeks, with Capus helping with the transition.


Two other sources said that the recent view internally has been that Antoine Sanfuentes, an executive who oversees NBC News‘ Washington bureau and the Sunday political talk program “Meet the Press,” was being groomed to replace Capus. Fili-Krushel said in her memo that Sanfuentes will report to her and serve as interim managing editor responsible for editorial decision-making.


The first three sources said they had expected Capus to announce his departure at the end of last year to coincide with the announcement that Jim Bell was leaving as executive producer of the “Today” show to assume the newly created role of full-time executive producer of the Olympics.


Ultimately, Capus decided to trigger his departure by exercising an “out” clause built into his most recent contract, according to one of the first three sources.


Capus commanded the loyalty of NBC News staff, particularly the on-air talent and producers, all of the five sources agreed. Some of the major news events he worked on included the September 11 attacks, the discovery of anthrax in the NBC newsroom, the death of Britain’s Princess Diana and the wars in Iraq and Afghanistan. His resignation came as an unexpected blow to NBC News staff, despite the apparent grooming of Sanfuentes.


Savannah Guthrie, installed by Capus as “Today” show host after the departure of Ann Curry, tweeted on Friday that Capus was “a great leader and tireless advocate for NBC News” who will be missed.


NBC News made deep job cuts in 2006 after wider layoffs at the parent company. Rivals ABC News and CBS News have also made hundreds of layoffs in the past few years.


Capus said in his memo that he “tried to shield journalists from the tough economic pressures hoping that would give each of you the running room to focus solely on a commitment to outstanding journalism.”


RECENT STRUGGLES


NBC News has been the one part of the network’s news operations to show slippage in the last year. CNBC is far and away the leading business news network, as measured in ratings. MSNBC has not only surpassed CNN to become a strong No. 2 among general cable news networks, but has also closed the gap with long-time leader Fox News, owned by News Corp.


“Pat Fili-Krushel has a strong vision of the integration that is required to make the full array of NBC programming fire on all cylinders in unison. She also understands the need to complement both the owned station and Comcast cable group goals to leverage all to best advantage,” said Magid & Associates consultant Steve Ridge.


NBC News has ranked as the leader among network news broadcasts in both the morning and evening for much of Capus’ eight-year run as president. Two of the first three sources said he deserves credit for maintaining the “Today” show as the dominant morning news program, “NBC Nightly News” as the leading evening news broadcast, and “Meet the Press” as the marquee Sunday news program. But over the last year, Capus’ fiefdom has taken a few hits, most notably at the “Today” show.


NBC News, for example, was criticized for ousting Ann Curry as “Today” co-host after only one year.


The “Today” show has been in a back-and-forth ratings war with ABC’s “Good Morning America” ever since ABC snapped NBC’s 16-year unbeaten streak last year. “NBC Nightly News” is averaging 8.76 million total viewers, ahead of “ABC World News” and “CBS Evening News.” It has seen less ratings success with the news magazine “Rock Center with Brian Williams,” which debuted in 2011 and after being bounced around the schedule, will move to Friday nights on Feb 8.


NBC News also came under fire last spring when it decided to edit a call to police from George Zimmerman, the Florida man who shot unarmed teenager Trayvon Martin. The editing made it appear that Zimmerman told police, without being prompted, that Martin was black when, in fact, the full tape revealed that the neighborhood watch captain did so only when responding to a question posed by a dispatcher.


NBC has since been sued for defamation by Zimmerman.


(Additional reporting by Mark Hosenball in Washington; Editing by Lisa Von Ahn, Andrew Hay and Matthew Lewis)


TV News Headlines – Yahoo! News





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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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Ofgem wants ‘rogue’ broker powers







Energy regulator Ofgem is urging the government to give it the power to protect firms from what it calls rogue brokers, mis-selling energy deals.






Its research found that between 14% and 17% of businesses which had used brokers were not satisfied with them.


They were concerned about cold calling, high-pressure sales tactics and unprofessional behaviour from brokers.


Citizens Advice said 42% of complaints it received from small businesses about mis-selling had mentioned brokers.


Ofgem spokesman Mark Wiltsher told the BBC: “We’ve had quite outrageous behaviour; sometimes energy brokers have phoned up impersonating another company, to try and get an energy company switch, and also we’ve had brokers telling a company ‘You’ll get a cheaper deal’, and once they sign up, they find out they are paying more for their energy.”


“We don’t actually have powers over these energy brokers, because they’re independent, so what we’re asking today is for powers so we can take energy brokers that mislead business to court, and if they carry on doing that they will be in contempt of court.”


Welcoming the calls from Ofgem, Adam Scorer from Consumer Focus said: “There is a real protection gap on energy issues for small businesses.”


“Many don’t have the resource or knowledge to tackle the confusing process and high pressure tactics often encountered from energy salespeople.”


BBC News – Business





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International Development Week: Minister Statement






OTTAWA, ONTARIO–(Marketwire – Feb 3, 2013) – The Honourable Julian Fantino, Minister of International Cooperation today kicked off the beginning of the annual International Development Week held from February 3rd to the 9th. International Development Week features local events all across Canada that pay tribute to the thousands of Canadians who devote themselves to improving lives in the developing world. For the past 23 years, the Canadian International Development Agency (CIDA) has held International Development Week as a way to celebrate the contribution Canadians make around the world. This year, the theme is “I am making a difference”.


“Canada, as a compassionate neighbour, strives to assist the most needy around the world and seeks to bring to fruition real, tangible results,” said Minister Fantino. 






Canada, through the Canadian International Development Agency (CIDA), seeks to bolster sustainable economic growth and assist developing countries achieve lasting benefit.


International Development Week features a wide variety of events across the country.


As part of this week”s events, Minister Fantino will deliver a keynote speech at the Global Food Security Forum hosted by the Saskatchewan Trade and Export Partnership on Tuesday, February 5th. The event will bring together the United Nations World Food Programme, the Saskatchewan agricultural sector, exporters, and other businesses for discussion on food security. Minister Fantino will speak about the importance of increased partnership between Canadian businesses and foreign development as a way to grow sustainability abroad while also boosting Canada”s economy.


“Our government is committed to building a more prosperous and secure world, not only for our neighbours in developing countries but as a means to strengthen Canada as well,” added Minister Fantino. “One which espouses fundamental freedoms we enjoy every day in Canada: freedom, democracy, human rights, and the rule of law. The Government of Canada is committed to this work and will strive to maximize Canada”s investments to achieve the greatest outcomes for those most in need and for Canada”s future.”


For more information on an International Development Week event in your local community, visit: http://www.cida.gc.ca/idw2013.


Julian Fantino


Minister of International Cooperation


Marketwire News Archive – Yahoo! Finance





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Goodell: 'Absolutely' would let son play football


NEW ORLEANS (AP) — NFL Commissioner Roger Goodell would "absolutely" want his own child to play football.


After President Barack Obama recently said he'd "have to think long and hard" about allowing a son to take part in the sport, Goodell was asked the same question hours before Sunday's Super Bowl during an interview on CBS's "Face the Nation."


Like the president, Goodell has two daughters. The commissioner deflected the question about allowing a son to play football by noting the high incidence of concussions in girls soccer.


In an interview with The New Republic, Obama had said he loved football but worried about the long-term effects on players of the game's hard hits. Thousands of former players have sued the NFL, alleging that not enough was done to inform them about the dangers of concussions and not enough is being done today to take care of them.


Asked by Bob Schieffer on Sunday whether the league hid the risks of head injuries, Goodell said, "No."


Goodell declined to confirm that there is a proven connection between the sport and medical problems in retired players. He emphasized that the NFL is funding research to learn more about the risks and changing rules to make the game safer.


Goodell said he had no concerns that football could go the way of boxing, a sport now far less popular than in its heyday.


"I couldn't be more optimistic about it because the game of football has always evolved," the commissioner said. "Through the years, through the decades, we've made changes to our game, to make it safer, to make it more exciting, to make it a better game for the players, for the fans, and we have done that in a very calculated fashion."


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