Home » Archives by category » News (Page 2974)

Some playful architects have brought to life the endearing home from the Disney- Pixar film Up. The 2800-square-foot home in Herriman, Utah is expected to fetch around $400,000. With Disney’s permission, KSL-TV reports, the architects have copied every detail inside and out, from the weather vane and the hand-painted mailbox to the “Paradise Falls” mural
Continue reading …
Well, now we know what a portion of those new, higher Netflix fees could be used for: to pay call center reps to deal with angry customers . Customer service reps have been telling callers that the company not only told them to be ready for a backlash, it hired extra…
Continue reading …
Rupert Murdoch and son James are refusing the summons to appear before Parliament on Tuesday. According to one member and committee chair, the Murdochs will be in contempt of Parliament if they fail to appear at 2:30pm and testify about their media empire’s phone hacking scandal, and their absence…
Continue reading …

Share prices fall amid fears fatal weaknesses will be found in at least half a dozen institutions Financial markets are bracing themselves for a nervous weekend amid fears that today’s annual health check of Europe’s banks will find fatal weaknesses in at least half a dozen institutions, piling more pressure on the embattled single currency. Share prices fell and borrowing costs in vulnerable countries such as Italy and Spain rose as dealers awaited the results of the stress tests on 90 European banks, which will be announced once the markets have closed for business on Friday. Amid growing concern that Europe’s policy makers have allowed the debt crisis to spread to the major economies of monetary union, the announcement will provide details of the exposure of individual banks to debt writedowns or defaults. While the UK’s banks are expected to pass the stress tests, there are fears that the results could add to the market jitters rather than provide reassurance. The FTSE100 was down nearly 60 points in London on Thursday amid anxiety that the tests will show banks do not have enough capital to cope with bad debts. Although the tests have been toughened up since last year, they do not include the possibility of a Greek default, seen as increasingly likely by the markets. Italy had to pay record interest rates of 5.9% to persuade investors to buy its bonds, while borrowing costs for Spain also rose. Estimates of how many banks will need extra capital range from nearly a third of the 90 European banks, according to the ratings agency Moody’s, to nine banks needing €29bn, according to the average opinion in a poll of investors by Goldman Sachs last month. Six Spanish banks are expected to fail, although analysts polled by Reuters expect between five and 15 banks to fail. Marie Diron, senior economic adviser to the Ernst & Young eurozone forecast, said: “The stress tests are unlikely to bring much relief to the current tensions that plague the eurozone. They will probably show a small minority of banks failing, mainly in the eurozone periphery, with possibly a few banks in core eurozone countries failing too. But the credibility of the stress tests has been undermined by what is perceived to be too lenient assumptions.” The tests – discredited last year when Ireland’s banks collapsed four months after being given a clean bill of health by the regulators – are already causing controversy as the number of banks being tested was originally 91. However, the German bank Helaba pulled out on Wednesday in a dispute with the European Banking Authority, which is overseeing tests by domestic regulators. The UK’s banks, two of which have already been bailed out, are believed to have passed. The tests are conducted by national regulators across Europe but compiled by the European authority, which requires banks’ crucial core tier one capital to remain above 5% after worst-case scenarios, which include a drop in GDP over two years of 4%, compared with 3% for last year’s tests. Tamara Burnell of M&G Investments said: “In our view it is a bit like taking a driving test: you can pass the test and yet still be a terrible driver. The real test of whether anyone trusts you is whether people are prepared to get in the car with you. So whether or not banks pass the 5% core tier one stress test hurdle, the real test is whether investors and depositors trust them with their money over the long term, and there’s a long way to go before the European banks rebuild their reputation after a series of offences.” While an outright default by a European nation has not been included in the test – despite the fact that officials are now prepared for a Greek default – Christopher Wheeler, banks analyst at Mediobanca, notes that only about 20% of the government bonds held by banks are being stress tested because they sit in their trading books, rather than the banking books where bonds are held to maturity. Making assumptions about the “haircuts” – losses on government bonds across Europe – Mediobanca estimates that €81bn could be knocked off banks’ capital, 9% of the sector, in 2012. It is not just banks’ holdings of government bonds that are important, but also the way that governments have stepped in to support banks during the crisis, making the health of banks and their governments inextricably linked. Burnell said: “What we need to test is the ability of sovereigns to separate themselves from their banks.” Euro Stock markets Banking Currencies Europe Jill Treanor guardian.co.uk
Continue reading …

Share prices fall amid fears fatal weaknesses will be found in at least half a dozen institutions Financial markets are bracing themselves for a nervous weekend amid fears that today’s annual health check of Europe’s banks will find fatal weaknesses in at least half a dozen institutions, piling more pressure on the embattled single currency. Share prices fell and borrowing costs in vulnerable countries such as Italy and Spain rose as dealers awaited the results of the stress tests on 90 European banks, which will be announced once the markets have closed for business on Friday. Amid growing concern that Europe’s policy makers have allowed the debt crisis to spread to the major economies of monetary union, the announcement will provide details of the exposure of individual banks to debt writedowns or defaults. While the UK’s banks are expected to pass the stress tests, there are fears that the results could add to the market jitters rather than provide reassurance. The FTSE100 was down nearly 60 points in London on Thursday amid anxiety that the tests will show banks do not have enough capital to cope with bad debts. Although the tests have been toughened up since last year, they do not include the possibility of a Greek default, seen as increasingly likely by the markets. Italy had to pay record interest rates of 5.9% to persuade investors to buy its bonds, while borrowing costs for Spain also rose. Estimates of how many banks will need extra capital range from nearly a third of the 90 European banks, according to the ratings agency Moody’s, to nine banks needing €29bn, according to the average opinion in a poll of investors by Goldman Sachs last month. Six Spanish banks are expected to fail, although analysts polled by Reuters expect between five and 15 banks to fail. Marie Diron, senior economic adviser to the Ernst & Young eurozone forecast, said: “The stress tests are unlikely to bring much relief to the current tensions that plague the eurozone. They will probably show a small minority of banks failing, mainly in the eurozone periphery, with possibly a few banks in core eurozone countries failing too. But the credibility of the stress tests has been undermined by what is perceived to be too lenient assumptions.” The tests – discredited last year when Ireland’s banks collapsed four months after being given a clean bill of health by the regulators – are already causing controversy as the number of banks being tested was originally 91. However, the German bank Helaba pulled out on Wednesday in a dispute with the European Banking Authority, which is overseeing tests by domestic regulators. The UK’s banks, two of which have already been bailed out, are believed to have passed. The tests are conducted by national regulators across Europe but compiled by the European authority, which requires banks’ crucial core tier one capital to remain above 5% after worst-case scenarios, which include a drop in GDP over two years of 4%, compared with 3% for last year’s tests. Tamara Burnell of M&G Investments said: “In our view it is a bit like taking a driving test: you can pass the test and yet still be a terrible driver. The real test of whether anyone trusts you is whether people are prepared to get in the car with you. So whether or not banks pass the 5% core tier one stress test hurdle, the real test is whether investors and depositors trust them with their money over the long term, and there’s a long way to go before the European banks rebuild their reputation after a series of offences.” While an outright default by a European nation has not been included in the test – despite the fact that officials are now prepared for a Greek default – Christopher Wheeler, banks analyst at Mediobanca, notes that only about 20% of the government bonds held by banks are being stress tested because they sit in their trading books, rather than the banking books where bonds are held to maturity. Making assumptions about the “haircuts” – losses on government bonds across Europe – Mediobanca estimates that €81bn could be knocked off banks’ capital, 9% of the sector, in 2012. It is not just banks’ holdings of government bonds that are important, but also the way that governments have stepped in to support banks during the crisis, making the health of banks and their governments inextricably linked. Burnell said: “What we need to test is the ability of sovereigns to separate themselves from their banks.” Euro Stock markets Banking Currencies Europe Jill Treanor guardian.co.uk
Continue reading …

House Republicans are blaming President Barack Obama and other Democrat leaders for the congressional impasse over raising the national debt limit, while urging them to pass a balanced budget amendment to the Constitution. (July 14)
Continue reading …

The case against baseball great Roger Clemens was declared a mistrial on just the second day of testimony. AP Legal Correspondent Nedra Pickler was inside the court Thursday. (July 14)
Continue reading …

Treasury Secretary Tim Geithner and Democrat leaders are urging Republicans to compromise on a debt deal before the country defaults on August 2. Senate Majority Leader Harry Reid says GOP ideologues are hindering negotiations. (July 14)
Continue reading …

WASHINGTON — Lawmakers and the White House had what nearly every party is describing as a “tough” and “testy” meeting on the debt ceiling Wednesday afternoon, culminating in a stormy exchange between President Barack Obama and House Majority Leader Eric Cantor (R-Va.). It was the fifth straight day of talks, but the first in which attendees, speaking on background, were willing to admit that steps were taken backwards. According to multiple sources, disagreements surfaced early, in the middle and at the end of the nearly two-hour talks. At issue was Cantor’s repeated push to do a short-term resolution and Obama’s insistence that he would not accept one. “Eric, don’t call my bluff. I’m going to the American people on this,” the president said, according to both Cantor and another attendee. “This process is confirming what the American people think is the worst about Washington: that everyone is more interested in posturing, political positioning, and protecting their base, than in resolving real problems.” Cantor, speaking to reporters after the meeting, said that the president “abruptly” walked off after offering his scolding. “I know why he lost his temper. He’s frustrated. We’re all frustrated,” the Virginia Republican said. Democratic officials had a different interpretation. “The meeting ended with Cantor being dressed down while sitting in silence,” one official said in an email. “[The president] said Cantor could not have it both ways of insisting on dollar-for-dollar and still not being open to revenues.” Lost in the rush to frame the dramatic conclusion of Wednesday meetings was word of the actual substance of the talks. According to several attendees, negotiations stalled from the onset over the same issues that have proved irresolvable. Working off of talks that had been spearheaded by Vice President Joseph Biden, the president said he would be comfortable signing off on northward of $1.5 trillion in discretionary spending and mandatory spending cuts. With additional negotiations, he added, he could move that figure up to $1.7 trillion, and with a willingness to consider revenue increases and tax loophole closures, lawmakers could get to over $2 trillion. His preference, he said, was to continue to push for the biggest package possible, so long as it was balanced. Cantor, who has taken over the mantle of chief Republican negotiator from Speaker John Boehner (R-Ohio), responded by insisting that revenues were off the table and that without steeper cuts, the votes likely didn’t exist to pass anything but a smaller, more temporary package. House Republicans needed the administration to go to a higher number, he added. The president reportedly responded: “It is easy to get to a higher number when you are not asking anything difficult from yourself.” From there, the friction continued. When the White House pushed for an extension of unemployment insurance as part of the final package, Republicans objected. The White House was forced to explain that it would be offsetting that extension with cuts elsewhere. When the president pushed to lock in savings from cuts to the Department of Defense, Republicans objected again; this time, they were joined by Sen. Dick Durbin (D-Ill.), who urged (conversely) for the president to go further in pulling savings out of the Pentagon. According to a Democratic official, the most contentious debate came when talks turned to discretionary spending, and, specifically, whether to count longterm savings based on current spending baselines or by tying them to inflation. Republicans wanted the former. It was, the official said, a debate over the “measurements of savings as opposed to the savings themselves.” From there, the conversation moved to how to enforce those savings in the long run. Those discussions, which took place between Sen. Jon Kyl (R-Ariz.) and top economic adviser Gene Sperling, were described as cordial compared to the earlier ones. But lawmakers quickly found themselves back on the same sticking point. Unhappy that negotiators remained at approximately $1.7 trillion in cuts, Cantor pressed again for a shorter deal or for negotiators to find their way to $2.5 trillion. The president, growing more agitated, argued that attendees were simply looking for ways to say no. “Talk about arbitrary,” he said of Cantor’s figure, according to a Democratic attendee. “I am totally willing to do the hard stuff to get well above what you need and you won’t do it because you can’t put one penny of revenue on the table.” “At least Mitch McConnell, to his credit, was willing to work for a solution,” the president added, acknowledging the proposal by the Senate Minority Leader to, essentially, give him the authority to lift the debt ceiling without passing commensurate cuts. “I have reached the point where I say enough,” Obama concluded, according to Reuters. “Would Ronald Reagan be sitting here? I’ve reached my limit. This may bring my presidency down, but I will not yield on this.” Before Obama left the meeting, he gave lawmakers a directive. By Friday, the president said, the people in the room needed to have figured out what path they were going to pursue so that they could start hammering out the details.
Continue reading …

It’s everybody’s favorite time of year. Yup, the Q2 earnings results are coming in, and Google’s leading the pack, reporting $9.02 billion in gross revenue for the second quarter of 2011: a 32 percent increase over the same period in 2010. CEO Larry Page notes, that’s a “record breaking over $9 billion of revenue,” with net income reaching $2.51 billion, up from $1.84 billion in Q2 2010. Google’s various sites apparently made up 69 percent of the $9.02 billion in revenue, generating $6.23 billion — 2010 numbers were $4.50 billion. Operating expenses saw a notable increase over 2010, cutting into profits by $2.97 billion, up from $1.99 billion. We’re about to hop on the earnings call (which you can listen into here ), and we’ll keep you posted if we learn anything new. Developing… Continue reading Google announces Q2 earnings: $9.02 billion in revenue, $2.51 billion in net income Google announces Q2 earnings: $9.02 billion in revenue, $2.51 billion in net income originally appeared on Engadget on Thu, 14 Jul 2011 16:07:00 EDT. Please see our terms for use of feeds . Permalink
Continue reading …