Friday, November 30

Lose their jobs can give a heart attack

Lose their job you can give a heart attack - quite literally.

Researchers at Duke University have found that unemployment significantly increases the risk of a heart attack. That the risk increases with each loss of employment and increasing time unemployed, according to a study in the archives of internal medicine published.

In fact, a job loss grew the risk of a heart attack by 35 percent, while four workstations increased the risk by 63 percent. Unemployed were within one year after a layoff or firing most at risk of a heart attack.

The author of Matthew E. Dupre, Associate Professor of Duke and senior fellow at the University's senior study says "look at a life of risk by the frequency of occurrence a person lost a job through a social stressor such as unemployment - or how much time they are without work - is an independent association with myocardial infarction," Center for the study of aging.

Dupre says that he and his colleagues were somewhat surprised by their results, as she was known and suspected risk factors, such as high blood pressure and loss of health insurance.

"The fact that the associations despite more than a dozen are suspected risk factors remained largely unchanged, something was unexpected", he says. "Changes in income, health insurance, health behavior, physical health status and the like had little influence on the risks associated with unemployment. Instead we found that the risks associated with multiple workstations of the extent of the other established risk factors, such as smoking, high blood pressure and diabetes were."

For the new study researchers under the microscope taken health and work histories of 13.451 adults aged 51 to 64. detailed stories covered whole 18 years, where total 1061 suffered heart attacks voluntary study.

At the beginning, 14 percent of the volunteers were unemployed. 69.7 Percent has lost one or more jobs in the course of the study.

Heart experts said that the study adds to the mounting evidence that certain types of stressors may increase the risk of a cardiovascular event ramp.

"This is add to know what we are in reference to the triggers of heart cardiovascular events," says Dr. John Schindler, Assistant Professor of medicine at the University of Pittsburgh Medical Center. "Many years ago we thought this as a random process. Now we see there are real, whether environmental or stress trigger perceived. "

Recent studies by numerous emotional trigger, frustration, depression and anxiety, including powered up the Center, says Saha. He adds, "and those who go along with unemployment,".

So, what is it about the job loss that could raise the risk of a heart attack?

"There are probably several mechanisms, the significant socio-economic pressure, link, to an increased risk of cardiovascular events, including unemployed" says Dr. Eliot Corday preventive cardiology UCLA professor of heart cycle medicine and science at the University of California, Los Angeles, Eliot Corday Professor of heart cycle medicine and science at the University of California, Los Angeles, and Co-Director of the program. "Include persistent activation of the part of the nervous system during stress and stress-related hormones decreased in heart healthy behaviors to avoid health care visits and actions, and not immediate seek medical, if there are early warning signs."

What the study shows, experts say that one is in times of stress, such as such as loss of employment, to pay extra attention to your heart.

"My conclusion is that we should be focused always in our hearts, because as a potentially deadly disease cardiovascular disease is potentially," Schindler said. "But because we are more vulnerable to losing a job, the first year at this time you should still diligently about heart and cardiovascular health."

Future research could examine whether risk may reduce emotional support.

"Whether cardiovascular risk with unemployment also through psychological support cover and several jobs could be reduced or further investigation requires advanced social resources," says Fonarow.

Thursday, November 29

Workers can not easily take type A in retirement.

Workers can not easily take type A in retirement.

Richard Eisenberg, next Avenue
So you are a type A personality: heavy load, status-driven and impatient. How do you think that will work for you in retirement?

Probably not so great after Donald Asher, a Gerlach, Nevada, career counsellors, the type of A pensioner has studied. "Type A not, prevent that type of A retired," Asher says.

Asher, who speaks on this issue across the country, told me that a type A personality in the retirement life is not very well suited.

"You can play only so much golf."
"A type A guy I on a golf course met told me: ' if I was about to retire, I was looking forward to much golf to play." But now that I'm retired, I found you can only so much Golf, play ' "Asher says.

Before going into retirement, are the type of A leader at work often, barking orders and getting things done, if they want, kind and wise, what you want. (Cardiologists Meyer Friedman, who coined the term "Type A personality", said the behavior is partly expressed through "free-floating hostility", but let us not go there.)

Reminiscent of the famous New Yorker cartoon about the dog over the Internet, were retired, no one knows that, a Manager, or a heart surgeon. Uniform, a type of A pensioner looks just like the pensioners and is seen by the people who will find he or she usually otherwise. You will receive no special treatment (Senior discounts aside). You are not surrounded by toady that bend knees, based on your title, because you do not have a title. And how you can get a shock.

In addition, life is if you are pensioner unstructured. Meet fed have not for you at certain times. It is up to you your day, your weekend, your month - should be drawn in your life. It is annoying for a type a.

Rob Pascale found all this out when he from his job running a market research company in Charlotte, NC on 51 adopted the main author of the retirement maze, I wrote a great book about next Avenue, Pascale told me that only a few months after his resignation bleak becoming. "I had low self esteem than if I work was", he says. "I had a lack of structure and purpose in my life."

Withdrawn for five months
The New York Times recently wrote about the similar experience of Alan Siegel, 74, who had been Chairman of the brand-and-corporate-identity consultants Siegel & Gale in New York City. A type A, if there ever was a seal in May and lasts around five months later decided that he hack it could not. He started just seal vision, a company that is competing with which he had founded and the left.

On the question why not retire to enter, said Siegel,: "I can not. I love the interaction with different types of people. I like shake things up, make a difference."

The adjustment is not difficult, only for type A life can be for their spouse become brutal wind up always ordered, if only because of the proximity.

"A woman told me that her husband began demanding she fold the towels differently", Asher says. "she said to him: ' you never care, for 50 years towels folded like me." This is not to go to work. ""

Retirement advice for type A
So what do a type A when retirement beckons?

Start with the construction of a new social network of other retirees, Asher suggests. "The biggest thing is social interaction often, that is missing the type A the four walls of a House are not enough in life" he says. "You can scratch the itch a social network."

Next, find a new form of prestige, replace provided the status of your work. "Maybe it is the Rolling Stones around the world to follow or ride a $365,000 RV," Asher says.

If you are considering an encore career to help others searching for the type of position that plays to your personality. In General, this means a paid or volunteer job as a supervisor with authority.

Finally, Asher says something, add pressure and stress to your life - and this may sound a little strange-. "This is not compatible with the traditional idea of retirement," he notes. "I had a friend who does Ironman Triathlon at 60. "He is creating his own pressure."

Appear for a type A pressure and stress simply make your life worth living.

Wednesday, November 28

Sign-language interpreter points way to growing career

Sign-language interpreter points way to growing career

Michelle Rafter , NBC News contributor

Without uttering a word, Lydia Callis had the nation eating out of her very expressive hands.

An American Sign Language interpreter for New York City Mayor Michael Bloomberg, Callis’ signings were some of the brighter spots in the bleak days before, during and after Hurricane Sandy.

“Thank you Michael Bloomberg,” says Keith Wann, a long-time ASL interpreter and like Callis, a CODA, or child of deaf adults. “There are deaf people in New Orleans who said during Katrina they didn’t know what was going on. Hopefully other employers saw that and said, ‘That’s what we have to do.’”

Callis’ emphatic gestures and sympathetic facial features during Bloomberg’s Sandy-related press conferences made her an Internet sensation and spawned a skit on "Saturday Night Live." But it also pointed a spotlight on a sometimes overlooked career that has grown steadily - and is expected to continue growing - since the Americans with Disabilities Act passed more than 20 years ago.

Jobs for sign language and other types of interpreters and translators in the United States are expected to increase 42 percent by 2020, to 58,400, according to the 2012-2013 U.S. Occupational Outlook Handbook.

Interpreters for the deaf continue to be in demand because there aren’t enough of them to go around, according to the government report.

Educators are working to fill the gap. Seventy-eight colleges offer some type of sign language interpreter associate degree, 40 schools offer bachelor’s degrees and three offer master’s degrees, says Nataly Kelly, author of the new book, "Found in Translation: How Language Shapes Our Lives and Transforms the World."

ASL interpreters must be certified to work at schools, government agencies or translate for hearing-impaired people during doctor’s appointments or other medical visits. One of the biggest certifying bodies is the nonprofit Registry for Interpreters for the Deaf (RID), which in 2011 had more than 15,600 members.

Like Callis, good sign language interpreters add a personal touch to their work, Kelly says. “It’s like how much an individual’s speech would vary,” she says. “Nobody uses language the same way, and it’s the same in sign language, except it’s visual, with facial expressions, and the speed of your signing.”

Despite the attention Callis’ signing brought to the field, some veteran interpreters are discouraged by increased competition and declining pay.

Wann, 43, worked as a staff or freelance ASL interpreter for 20 years in elementary schools, colleges and for the U.S. Defense Department. But he quit last year after seeing rates drop from $70 or $80 an hour to $40 or less. ASL interpreters without his high-level certifications or years of experience are commanding the same fees, he says. “It causes resentment.”

Today, Wann sells insurance during the week and on weekends travels to colleges across the country performing a standup ASL comedy act that’s earned him the reputation as the Jim Carrey of the ASL community.

But he hasn’t stopped advocating for the deaf community’s right to be heard. "It’s been the law since 1991, but deaf people still have to fight for an interpreter,” he says.

Tuesday, November 27

Women rising in the ranks at tech companies

A. Pawlowski , NBC News contributor

News that two women will succeed Steven Sinofsky, the former head of Microsoft's Windows unit who unexpectedly left the company this week, is creating as much buzz as the departure itself.

Julie Larson-Green, who will head the Windows hardware and software division, and Tami Reller, who will remain chief financial officer of the Windows unit, will report directly to CEO Steve Ballmer.

Advocates for women in technology were thrilled about the announcement, not only because female executives were tapped to replace Sinofsky, but also because they will lead the Windows division -- the flagship product for Microsoft.

“I don’t even know how to explain how amazing and exciting that is to every woman who works in tech right now and probably in business across the board,” said Michele Weisblatt, executive vice president for Women in Technology International.

“It’s not just about (the company) putting them over a division, it’s about them leading the flagship product – the money-making, revenue piece for Microsoft. It’s just phenomenal.”

Women hold just a quarter of computing and mathematical jobs in the U.S., according to a 2008 report on women in technology from Catalyst, a nonprofit research organization.

Microsoft's move is important because of its visibility as a technology and corporate giant, so girls in school who see women like Larson-Green and Reller move into such high-profile roles will carry that with them for a lifetime, said Jenny Slade, a spokeswoman for the National Center for Women & Information Technology.

That, in turn, could potentially fuel a pipeline of women to fill leadership roles at technology companies. Some of the most well-known firms already have female executives at their helms, including the high-profile hiring of Marissa Mayer as the president and CEO of Yahoo! this summer and the longtime presence of Sheryl Sandberg as Facebook's chief operating officer.

It’s a sign that companies are recognizing the positive impact of women at the senior executive levels and on corporate boards, said Phyllis Kolmus, president-elect of Women in Technology.

“They bring collaboration and kind of a broader view,” Kolmus said. “What if it had been Lehman Brothers and Sisters? There might have been a very different outcome… women just bring a somewhat different viewpoint, and companies are reaping the benefits.”

But sometimes when women are promoted to executive positions, there’s a concern about a phenomenon called the “glass cliff.” That's when companies that have a product or service that’s in trouble hire a woman to provide a different leadership style and switch course, Slade said. Such jobs are associated with a greater risk of failure and criticism, British researchers have found.

However, Slade said there are no signs of that in Microsoft's recent move.

“I wouldn’t consider this a case of the glass cliff,” Slade said.“This is a case where you have two incredibly accomplished women… who just happened to be positioned very close to the top of the ladder and were ready to step into these roles.”

“That says something about Microsoft, something quite complimentary, that these women are even in a position to take over a role like this,” she added.

Meanwhile, the career outlook for both men and women in technology is bright. Jobs in this field are some of the fastest growing, with 1.4 million computer-specialist openings expected in the U.S. work force by 2020, Slade said.

Technology companies also are increasingly offering flex time and job sharing, Kolmus said, which help women stay in the work force while having children.

Women, in turn, are more active in reaching out to make sure they get the mentoring and the kind of contacts that they need to rise through the ranks, she added.

It all adds up to a winning formula.

“It really is a testament to a lot of the Fortune 500 companies creating these programs and these internal tracks to help develop their women and help them grow,” Weisblatt said.

Monday, November 26

Stocks end lower amid investor concern

From news agencies, NBC News
Stocks Wednesday as investors declined strongly worried about U.S. budget negotiations and a flare-up of violence in the Middle East.

Stock indexes opened higher, but you had through trade in the late morning into the negative area slipped.

In addition to the selling pressure, Israel launched a major offensive against the Palestinian militants in Gaza, Commander of Hamas in an air strike killing and threatened an invasion of the enclave.

The S & P 500 had powered by uncertainty about the looming U.S. "fiscal cliff" and concerns the European economic difficulties with the most losses fallen 3.8 percent over the last five trading days.

The index for a fourth day in a row on Tuesday under the closed, a technical indicator, which suggests recent decline in Dynamics, 200-day moving average could win.

Trading was volatile, hard to keep up with positive dynamics.

"It seems as if everyone gets a little rally we get sold in a trend that has been consistent and what," said Christian Wagner, Chief Executive Officer of Longview Capital Management in Wilmington, Delaware. "This could be the new normal, until the fiscal Cliff is resolved, and that make for a difficult environment."

A muted reaction to a jump showed stocks in the sale in the retail trade for October. Analysts had expected sales drop due to the storm, in the northeast of the United States hit. Producer prices fell 0.2 percent in October an expectation for a rise of 0.2 percent against.

Dow component Cisco Systems Inc. reported earnings in the first quarter and revenue beat late Tuesday the expectations.

Seen as a harbinger for the expenditure for information technology reach due to its global and customers in all areas could help Cisco, the tech sector.

Technology stocks have in the past two months, almost 10 percent dropped from Google and other disappointments dragged the result down. Tech was the worst performance on Tuesday.

"For Cisco, expectations in an environment to beat as this is large and for disposal of solid speaks on the company," said Wagner. "Hopefully make this something for the technology sector, which has so been injured lately by Apple."

Apple, the most valuable U.S. company in the last few months has plunged 20 percent from its peak.

Reuters contributed to this report.

Sunday, November 25

Retail sales SAG as Superstorm slowed buy sandy

Retail sales SAG as Superstorm slowed buy sandy

Reuters
Retail sales suggesting a loss of momentum in spending in the fourth quarter fell in October for the first time in three months as Superstorm Sandy which hit brakes on car purchases.

Other data on Wednesday showed little inflation, with wholesale prices in October for the first time since may, that the Federal Reserve latitude continue its easy monetary policy stance to the economy nurse back to health.

Retail sales 0.3 percent after an increase of 1.3 percent in the September last month dipped, so the U.S. Department of Commerce. Economists had sales fall 0.2 percent expected.

Retailers offered early read sales report on the Storm effects on the economy. Its full impact will probably be felt in the November data.

Analysts estimate that the storm, densely populated that the East Coast lashed and damage up to $50 billion, percentage point from fourth quarter GDP could shave less than a half.

"While we some positive repayment later in the quarter expect a soft start to the fourth quarter real consumption, this", said Peter Newland, senior economist at Barclays in New York.

The U.S. Department of Commerce said that it had received signs from companies, that the storm had both positive and negative impact on the sales data by October.

Sales of automobiles dropped by 1.5 percent, that largest fall since August last year, after one of 1.7 per cent in September. Automakers have blamed for the decline of the storm and expect a recovery in November.

Excluding auto, retail sales were unchanged last month after promotion from 1.2 per cent in September that said the U.S. Department of Commerce.

The storm also likely dented sales at clothing stores, the 0.1 percent dipped after rising 0.4 percent of the previous month.

Material sales surprisingly building fell 1.9 percent, defying expectations of a surge of purchases above. Sales rose 2.1 percent in September building materials and garden equipment.

Surprising 1.4 percent last month increased receipts at gas stations. Gasoline sales was expected, due to a decline in gasoline prices show some weakness which in the course of the month. Gasoline posted their largest decline in sales since May 2010.

The Labour Ministry said separately the seasonally adjusted producer price index 0.2 percent last month, the first decline since may after increasing by 1.1 per cent in September slipped.

Economists expected prices at farms, factories and refineries had to increase by 0.2 percent last month.

Wholesale prices excluding volatile food and energy prices costs also fell 0.2 percent, the biggest fall since October after his apartment in September. Economists had expected core PPI rising 0.1 percent.

The benign tone of the report producer price inflation should be fed room to give low interest rate environment. Consumer price inflation currently hovers around 2 percent target of the Fed.

The American Central Bank in September launched a third round of asset purchases, you buy $40 billion, every month until there are to improve the labour market value of mortgage-backed securities.

It hopes that the purchases for the borrowing costs are lower.

In addition to Superstorm sandy, the retail sales report marks the sluggishness of domestic demand.

Sales of electronics and appliances fell 1.0 percent the previous month of boost from purchases of Apple's iPhone 5 some discharge. Furniture sales fell 0.6 percent after dropping 0.2 percent in September.

So-called core retail sales, which exclude, building materials, gasoline, and cars, fell 0.1 percent after a 0.9 percent increase in September. Core sales correspond most likely consumer spending, the part of the Government report gross domestic product.

Last month autumn suspected that consumer spending slowed early in this quarter after in the period from July to September on a solid foundation.

Saturday, November 24

U.S. to overtake Saudi Arabia as top oil producer

Reuters

The United States will overtake Saudi Arabia and Russia as the world's top oil producer by 2017, the West's energy agency said on Monday, predicting Washington will come very close to achieving a previously unthinkable energy self-sufficiency.

The forecasts by the International Energy Agency (IEA), which advises large industrialized nations on energy policy, were in sharp contrast to previous IEA reports, which saw Saudi Arabia remaining the top producer until 2035.

"Energy developments in the United States are profound and their effect will be felt well beyond North America - and the energy sector," the IEA said in its annual long-term report, giving one of the most optimistic forecasts for U.S. energy production growth to date.

"The recent rebound in U.S. oil and gas production, driven by upstream technologies that are unlocking light tight oil and shale gas resources, is spurring economic activity - with less expensive gas and electricity prices giving industry a competitive edge," it added.

The IEA said it saw a continued fall in U.S. oil imports with North America becoming a net oil exporter by around 2030 and the United States becoming almost self-sufficient in energy by 2035.

"The United States, which currently imports around 20 percent of its total energy needs, becomes all but self-sufficient in net terms - a dramatic reversal of the trend seen in most other energy importing countries," it said.

IEA Chief Economist Fatih Birol told a news conference in London he believed the United States would overtake Russia as the biggest gas producer by a significant margin by 2015. By 2017, it would become the world's largest oil producer, he said.

The United States will rely more on natural gas than either oil or coal by 2035 as cheap domestic supply boosts demand among industry and power generators, the IEA said.

Limited knowledge
Birol said he realized how optimistic the IEA forecasts were given that the shale oil boom was a relatively new phenomenon.

"Light, tight oil resources are poorly known ... If no new resources are discovered (after 2020) and plus, if the prices are not as high as today, then we may see Saudi Arabia coming back and being the first producer again," he said.

The IEA said it saw U.S. oil production rising to 10 million barrels per day (bpd) by 2015 and 11.1 million bpd in 2020 before slipping to 9.2 million bpd by 2035.

Saudi Arabian oil output would be 10.9 million bpd by 2015, the IEA said, 10.6 million bpd in 2020 but would rise to 12.3 million bpd by 2035.

That would see the world relying increasingly on OPEC after 2020 as, in addition to increases from Saudi Arabia, Iraq will account for 45 percent of the growth in global oil production to 2035 and become the second-largest exporter, overtaking Russia.

OPEC's share of world oil production will rise to 48 percent from 42 percent now.

Russian oil output, which over the past decade has been steadily above Saudi Arabia, is predicted to stay flat at over 10 million bpd until 2020, when it will start to decline to reach just above 9 million bpd by 2035.

"Russia, which remains the largest individual energy exporter throughout the period, sees its revenues from oil, natural gas and coal exports rise from $380 billion in 2011 to $410 billion in 2035," the IEA said.

The U.S. oil boom would accelerate a switch in the direction of international oil trade, the IEA said, predicting that by 2035 almost 90 percent of oil from the Middle East would be drawn to Asia.

Energy demand grows by a third
The report assumes a huge expansion in the Chinese economy, which it saw overtaking the United States in purchasing power parity soon after 2015 and by 2020 using market exchange rates. Chinese real gross domestic product is expected to increase by 5.7 percent annually between 2011 and 2035.

A rise of 1.8 billion in the world's population to 8.6 billion would lead to a spike in global oil demand by more than a 10th to over 99 million bpd by 2035, keeping pressure on oil prices, the IEA said.

The agency's central "New Policies" scenario, which assumes a range of measures are taken to curb oil consumption in Europe, the United States, China and elsewhere, sees the average import cost of oil rise to just over $215 per barrel by 2035 in nominal terms, or $125 in 2011 terms.

If fewer steps are taken to promote renewable energy and curb carbon dioxide emissions, oil was likely to exceed $250 per barrel in nominal terms by 2035 and reach $145 in real terms -- almost level with the record highs seen four years ago.

The share of coal in primary energy demand will fall only slightly by 2035.

Fossil fuels in general will remain dominant in the global energy mix, supported by subsidies that, in 2011, jumped by almost 30 percent to $523 billion, due mainly to increases in the Middle East and North Africa.

Friday, November 23

Christmas tree growers hit by Sandy

David Dishneau, AP
HAGERSTOWN, MD. - The World Bank, CIA and other customers of Washington area is not the huge Christmas trees always ordered a Maryland farm in more than 2 feet of snow buried them after Superstorm sandy and many of the 15-35-foot fir trees torn.

Gale-force winds drove up deep Christmas trees in Swanton, wet snow in the branches of FIR at Pinetum in the Appalachian mountains. The snow then froze and limbs from the orbital rim, pulled, said the owner, Marshall Stacy. More than 3,000 trees were damaged, resulting in approximately $40,000 losses.

"It was like dominoes – a tree came down and press the next," said Stacy. He has been reimbursed by almost 70 percent of its orders.

Customers must look elsewhere, but there are only a few companies that sell oversized trees. This is because it takes so long to grow, said Rick Dungey of the National Christmas tree Association. Other breeders in Garrett County Maryland said that the storm not so little damage to their smaller trees.

It said the Group of Brickman, Gaithersburg-based commercial landscape gardeners, another supplier for 15 trees that adorn a business Office Park in Virginia are found, but they are smaller than the 16-footers, which the company typically provides about 3 feet.

Stacy said the damaged trees for paper pulp not be sold because its makes them bushy branches - the result of the annual trim - too expensive to process. Some of the branches into wreaths will be made, he said.

Thursday, November 22

Economy stinks for many, but it's crushing millennials

While the continued economic slump hobbles many Americans, the downturn is crushing young people.

Almost half of millennials—those between 18 and 34—think they'll be worse off than their parents, according to research from Demos, a non-partisan policy and research center.

And voters under age 30 in Tuesday's presidential election identified unemployment (49 percent) and rising prices (37 percent) as the most pressing economic issues they face, according to the Pew Research Center .

All this is forcing some young people to skip one of their favorite past times—eating out.

Among the heaviest restaurant users, new research shows in the year ending July 2012, millennials ate out 203 times annually — 49 times or 19 percent less than they did in the year ending July 2007, according to the NPD Group, a consumer market research firm.

"I've been doing this for 35 years and that has always been the case (millennials eating out). But not the last few years," said Harry Balzer, NPD's chief industry analyst. "This is all about how the economic downturn is affecting this group more than anybody else," he said.

(NPD defines dining out as everything from a Starbucks latte to a full sit-down meal at a restaurant.) Dining out costs roughly three times more than packing a sandwich or eating at home.

"I always bring my own lunch to save money," said Andrew Welsch, 28, of Long Island, N.Y. "My friends do the same thing. I still have to pay back my student loans," he said.

A generation defined by debt
Young people are cutting back on daily expenses such as dining out because personal debt levels are rising. Among college graduates, two-thirds owe an average of $28,500 in student loans, according to the Census Bureau and the Institute of Education Science. Average.

Many millennials are accumulating personal debt that spans unpaid student loans, credit card bills and medical expenses, according to the Demos report released last year.

With money tight, millennials voted this week with the economy on their minds. Voters under 30 also cited taxes and housing as important issues they face, said Scott Keeter, director of survey research for the Pew Research Center. He's also an exit-poll consultant for NBC News.

Weak job prospects
Weak job prospects are also hurting millennials. The unemployment rate for 18- to 34-year-olds for October was 10.8 percent, higher than the national unemployment rate of 7.9 percent, according to the U.S. Bureau of Labor Statistics.

Underemployment and low wages are problems too. More than half (57 percent) of young people would like to be working and earning more, and just half (53 percent) are working in their chosen fields, according to Demos research. Among millennials, more than half (56 percent) reported annual pretax incomes below $30,000.

With small incomes and little to no personal savings, many young people have delayed big life decisions.

Almost half (46 percent) have delayed buying a home, and nearly one third of millennials (33 percent) have postponed moving out on their own, according to Demos research. Welsch is holding off on getting an apartment with his girlfriend until after he completes his masters degree at the City University of New York.

Millennials have put off starting a family (30 percent), and a quarter has pushed back getting married.

Real happy hours
Welsch and others like him are riding out the economic downturn by reducing expenses such as dining out to celebrate birthdays. The gang used to gather at "a nice, mid-range restaurant — not McDonald's," he said.

But with the group unemployed or hours cut back, that tradition has been scrapped too. "We have to skip out on nonessentials like eating out, which is fun," he said.

With so many young people struggling, there could be a ripple effect for the restaurant industry. Younger diners traditionally have helped define eating trends as early adopters. "This group has been influential in their choices," said NPD analyst Balzer.

As a comparison, those aged 50 and older are eating out more since the depths of the 2008 financial crisis — 209 times annually this year compared to 197 outings for the year ending July 2007, according to the NPD Group's research.

So while older Americans fill sit-down restaurants, you'll likely find young people at bars, and enjoying a cheaper beer and snack.

"We’re a big fan of happy hour," said Welsch. "If we’re going out for drinks, it has to be happy hour — or we wouldn't do it."

With additional reporting by Erin Horan.

Wednesday, November 21

'Fiscal cliff' deal would limit deficit reduction

John W. Schoen , NBC News

As Congress and the White House settle in to a new round of talks over the federal budget, there are no good choices. If there were, the impasse would have been resolved a long time ago.

But as both sides vow to reach a compromise, it’s becoming clear that any bipartisan agreement will fall far short of the current law in cutting the $1.1 trillion federal deficit.

The current budget law that created the so-called “fiscal cliff” was written in a high-stakes moment in July 2011 as an impasse over raising the federal debt ceiling left the Treasury just days away from defaulting for the first time in history. The law’s architects, who well understood the dire consequences of allowing massive tax hikes and spending cuts to take effect, created the law as a club to force action after the November election.

Now that the election is over, leaders of both political parties have expressed the desire to come to an agreement and end the long deadlock.

But with the composition of Congress largely unchanged, any tax hikes and spending cuts both will likely be far smaller than what each side might want.

"The split in Congress will force both sides to bargain,” said economist Paul Ashworth of Capital Economics. “We expect the Democrats to agree to extend the Bush-era (tax cuts) for higher income earners in exchange for Republicans agreeing to put off the spending cuts."

On Sunday, Sen. Bob Corker, R-Tenn., expressed confidence that a deal could be reached, and Obama aide David Axelrod hinted at compromise on raising tax rates on the rich, a key White House priority.

House Speaker John Boehner, R-Ohio, last week opened the door to compromise on his party's commitment to not raise tax rates, saying he would support changes in the tax code that bring in more revenue.

Obama has invited congressional leaders to the White House on Friday to discuss the issue.

There had been hope that last week's election might break the longstanding political deadlock that has thwarted action. Republicans hoped to gain control of both the Senate and White House, the better to fulfill promised deep spending cuts. If Democrats had been able to gain control of both the House and Senate, they would have faced less opposition to tax hikes.

The continuing divided control in Washington means that a successful bipartisan agreement will have less to do with deficit reduction than with dodging the political backlash that would ensue if automatic spending cuts and tax hikes are allowed to take place, potentially sending the economy back into recession next year.

Unless amended, the current law ends Bush-era tax cuts, raising taxes by roughly $330 billion at a cost of about $3,500 for every household. Also on the block is the Obama administration's two-year payroll tax cut, which would cost wage earners another $95 billion. Other provisions, including the elimination of a deduction for sales tax, would raise taxes by another $65 billion.

Spending cuts in the law include a $55 billion or 9 percent cut in the defense budget next year and another $55 billion in cuts to domestic programs, including a 2 percent or $11 billion cut to Medicare providers. Long-term unemployment benefits would by cut by $26 billion.

While painful, those measures - if left in place - would only cover roughly half the annual federal budget gap.

All of which means that as the odds of meaningful deficit reduction grow slimmer as both sides move closer to a compromise.

Democrats, including President Barack Obama, have said any compromise should include higher taxes on the top earners who make more than $250,000 a year. But that would raise only about $42 billion, according to the Congressional Budget Office. That amounts to about 3 percent of the annual deficit.

Balancing the budget with spending cuts has proven even harder, largely because so much of the budget is devoted to historically “untouchable” categories like defense and direct payments to taxpayers. Social Security, Medicare and defense spending consume 60 cents of every tax dollar. Add pensions for federal workers and veterans, safety net programs like unemployment insurance and interest on the debt, and there’s roughly 20 percent of the federal budget left open to cutting.

That’s why Congress has made so little progress over the years finding ways of postponing the tax hikes and spending cuts required to bring the budget into balance.

In the short run, the cost of delay may not be so dire.

Despite the dire warnings of sudden fiscal impact, the cliff is more like a slope, as the economic impact would be felt gradually.

The average U.S. household would see a tax increase of about $68 a week, adding up to $3,500 if Congress fails to act over the full year.

On the spending side, most government agencies facing cuts have broad discretion on how they phase them in over the remainder of the fiscal year, which ends Sept. 30. If Congress and the White House don’t reach a deal by Jan.1, some agencies could decide to continue spending at current rates, with the expectation that a deal would be reached sometime next year that to pare back spending cuts – or postpone them altogether.

Congress has also bought time with the help of the Federal Reserve, which responded to the financial collapse of 2008 by slashing interest rates to record lows. Just as homeowners have saved tens of billions of dollars on lower mortgage rates, the federal government has seen its cost of borrowing fall sharply – even as the size of the debt has increased.

In fiscal 2008, the Treasury spent $451 billion in interest on roughly $10 trillion in public debt outstanding. For the fiscal year that ended Sept. 30, Uncle Sam paid just $360 billion to service debt of more than $16 trillion.

But the Federal Reserve can’t keep rates low forever. Those low rates rely heavily on investors’ belief in the safety of U.S, Treasury debt, which faces another downgrade if rating agencies decide the government has lost control of its finances. If investors stop buying U.S. bonds, borrowing costs could rise and the value of the dollar would fall.

So while some have suggested that the economic threat of fiscal cliff has been overstated, the potential financial disaster of expanding deficits is very real, according some financial analysts, including Peter Schiff, CEO of Euro Pacific Capital.

“That disaster will take the form of a dollar and/or sovereign debt crisis that will make the fiscal cliff look like an ant hill,” he said.

Tuesday, November 20

Fiscal cliff blues may lead to market correction

Fiscal cliff blues may lead to market correction

Reuters

Wall Street's post-election sell-off may gather steam in the coming weeks as worries mount about the looming fiscal cliff and technical weakness suggests a possible correction ahead.


The benchmark Standard & Poor's 500 closed below its 200-day moving average - a measure of the market's long-term trend - on Thursday for the first time in five months, and ended below it again on Friday. More than half of the Dow components are trading below key technical levels.

"I don't think you have to panic here, but I think you really want to be looking for the market to move lower for the next couple of months," said Frank Gretz, market analyst and technician for Wellington Shields & Co., a brokerage in New York. "I think the next rally is the rally you want to sell."

At the heart of the market's worry is whether U.S. leaders can come to agreement on some $600 billion in spending cuts and tax increases that are due to kick in early next year. Some fear dramatic cutbacks could send the U.S. economy into another recession.

The prospect of higher tax rates in 2013 is driving investors to sell shares as they seek to decrease the tax impact from their positions this year and next.

"You would have thought the fiscal cliff scenarios would have been already mulled over and priced in, but they weren't. It's almost like the market has ADD and can only focus on one thing at a time," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, whose firm manages about $13 billion in assets.

The S&P 500 fell 2.4 percent for the week, its worst weekly percentage drop since June. The index is now down 6.4 percent from its intraday high for the year of 1,474.51 reached on September 14. That drop puts the benchmark index below its 50-day moving average, but not yet into correction territory, defined as a 10 percent drop from a peak.

Reading the technical signs
The S&P 500 has been trading in a range between the 50-day moving average of 1,433.50 and the 200-day moving average of 1,380.98 for about two weeks. A significant break below that lower level could be a precursor to further weakness, analysts said.


"There's a technical breakdown in the market that indicates further losses," said Adam Sarhan, chief executive of Sarhan Capital in New York. "A 10 percent drop is the next big line in the sand."

The primary driver of stock prices in coming weeks looks likely to be investor concern about the U.S. fiscal situation.

In a sign of the risks involved, comments by President Barack Obama on Friday about the upcoming negotiations caused stocks to sharply cut their gains.

The president, who defeated Republican candidate Mitt Romney in Tuesday's U.S. election, outlined a position for the fiscal issues on Friday that is far apart from that of his political opponents, suggesting a long battle is to come.

"If the market anticipates a resolution to the fiscal cliff or Europe or any of the other bricks in the wall of worry, we could easily take off," Sarhan said.

Seventeen of the Dow's 30 components are trading below both their 50-day and 200-day moving averages, while another eight are under their 50-day levels, but not their 200. Only five components - Bank of America, JPMorgan Chase, Home Depot, Johnson & Johnson and Travelers - are above both support levels.

Another big negative for the market has been heavy selling of Apple shares. The stock of the world's biggest company, ranked by market capitalization, lost 5.2 percent this week, weighing heavily on both the S&P 500 and the Nasdaq. The stock is down 22.4 percent from its September 21 all-time intraday high of $705.07.

Big retailers' report cards
The election and fiscal cliff concerns, which came on the heels of Superstorm Sandy and its devastating effects on many parts of the U.S. Northeast, have captured so much attention that they've overshadowed weakness coming from third-quarter earnings.

With results in from 449 of the S&P 500 companies, third-quarter earnings now are estimated to have declined 0.3 percent from a year ago, which is slightly better than the forecast at the start of the reporting period. Results have been especially weak on the revenue side, however, with just 38 percent of companies beating on sales, Thomson Reuters data showed.

But recent stronger economic data, including a report on Friday showing consumer sentiment at more than a five-year high in early November, suggests that retailers, many of which have yet to report, could be among the stronger performers this earnings period.

Next week, results are expected from such big names as Target, Wal-Mart and Home Depot.

Consumer discretionary companies have outperformed the broader S&P 500 in earnings, with 72 percent of the companies in that sector beating analysts' expectations, compared with 63 percent for the S&P 500 as a whole.

Investors will be paying close attention to those results with the holiday shopping period around the corner, said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey, which oversees about $1 billion in assets.

"It's really the beginning of the Christmas sell season, and I think there's going to be a lot of interest with the outlook for that season and how promotional companies are going to be," Meckler said.

Monday, November 19

Small businesses struggling to recover from Sandy

Small businesses struggling to recover from Sandy

Reuters
After filling trays with ruined inventory, advised many owners of New York City shops and restaurants wait for emergency loans and insurance or to try to finance their recovery by Sandy Superstorm personally.

Progress is uneven on lower Manhattan's trendy Avenue C, which was heavily flooded the historic storm over the past week.

Demand was a still unheated hardware store doing a cleanup and busy trade but a supermarket on the next block equipment was still closed and in disarray, one and one half week after Sandy flooded their basement and selling floor. A bar and a beer shopping on the other side of the road was open, but serve a limited menu for less than the usual customers.

"We have not the product to sell and we have to sell, not the people," said Zach Mack, co-owner of ABC beer co., which last week flooded for days save power.

The massive storm lashed ashore Oct. 29 and caused widespread flooding in New York and New Jersey, to more than 50 billion $ results in economic losses. The recovery effort, already by hindered sustained power outages and fuel shortages, was dealt another setback this week when a nor blew through Easter, provides the range of the first snow of the season.

With PSTN always still down, companies lose they say potential sales because they accept non credit card payments and insist on cash.

Recovery of the destroyed camps and equipment is slow because many suppliers were lost in flooded halls have and deliveries have been stopped if truck is either damaged or were not gas found after the crippling storm.

"It is by the fact, people here get so their own lives in order, they are not go out again put together," Mack said, though election night drew a decent crowd for his company.

How other entrepreneurs neighborhood told Mack that he was for emergency loans from the Federal Administration for small businesses and the city of the application.

The emergency increases Mayor Michael Bloomberg loans for small and medium-sized businesses by Sandy on $25,000 affected, and they are interest-free for the first six months. Around 1,000 companies have asked about the loan, said a spokeswoman for the Mayor.

On Friday morning low-interest loan of up to $2 million crowded more than 200 entrepreneurs Community Center neighborhood learn more about the loan request a gymnasium of the city and the SBA, offers. Many had complaints about utilities and grants referred to rather than loans should be.

After a weekend, filling a dumpster with flood damaged goods, hardware store owner Monica Pedreros said she would rather plunge into their savings as an emergency loan to take, they say new debt could not afford.

Laura Tribuno, co-owner of a nearby restaurant of Austrian cuisine, with a scaled-down menu again manufactured, said that it had requested in order to determine whether it was for the emergency loans but was undecided are, whether they were created in the value of interest.

C Avenue entrepreneurs say they have begun, claims file, but some are paralyzed by everything from telephone and Internet outages of the absence of an accounting staff still dealing with their own personal crises of the deadly storm.

For now, companies rely on their customers and the generosity of others. Many entrepreneurs said providers have offered, give them more time to pay bills, and some already wearing gloves, masks and boots strangers on their doorstep, and helps to drain basements and ruined the roadside equipment arriving towing.

"they made, what seemed like an insurmountable task of much go faster," Mack said.

Sunday, November 18

NYC to begin odd-even gas rationing

NYC to begin odd-even gas rationing

Staff reports , CNBC.com

New York Mayor Michael Bloomberg and officials in the Long Island counties of Nassau and Suffolk will begin an odd-gas rationing plan at 6 a.m. Friday to ease persistent gasoline shortages in the wake of storm Sandy.

The plan means that gasoline will be available to drivers with licenses plate numbers ending in an odd number Friday, which is Nov. 9.

Saturday will begin days for gas services for drivers with plate numbers ending in an even number.

Bloomberg said only 25 percent of the city's gas stations are open at today's briefing, estimating the shortage could last another few weeks.

“Last week’s storm hit the fuel network hard – and knocked out critical infrastructure needed to distribute gasoline,” he said.

“Even as the region’s petroleum infrastructure slowly returns to normal, the gasoline supply remains a real problem for thousands of New York drivers," Bloomberg said. He added that this is the best way to cut down the lines and help customers buy gas faster.

The Mayor's office said the temporary odd-even system will remain in effect until further notice. Emergency vehicles, commercial vehicles, buses, vehicles licensed by the Taxi and Limousine Commission, and medical doctor plates are exempt.

Information from the Associated Press was included in this report.

Saturday, November 17

Obama's win clouded by looming 'fiscal cliff'

John W. Schoen , NBC News

Congratulations, President Barack Obama. Now you have just 49 days to resolve a $600 billion fiscal crisis that could push the economy back into recession.

The slow, steady improvement in the economy that helped Obama defeat Republican nominee Mitt Romney Tuesday is in peril if he can’t quickly forge agreement with a still-divided Congress on a new budget that delays steep tax increases and deep spending cuts.

The so-called “fiscal cliff” – set to take effect Jan.1 – is a doomsday budget package Congress enacted in 2011 to try to force compromise on a series of bitterly divisive policy choices. The budget package is a witch's brew of harsh measures designed to inflict political pain as widely as possible, the better to prompt all sides to reach the compromise that would prevent it from taking effect.

The law slashes Obama’s popular payroll tax cut, cancels extended jobless benefits, imposes deep cuts in Medicare reimbursements to doctors, exposes millions of Americans to the dreaded Alternative Minimum Tax, eliminates tax deductions for state and local sales taxes and child care tax credits (among others), takes a meat ax to defense spending and slashes “discretionary” spending – on everything from education to homeland security – by as much as 10 percent.

Economists and politicians, including Federal Reserve Chairman Ben Bernanke, have warned it would almost certainly wipe out any progress the White House has made in reviving the economy and creating jobs.

Concern about the fiscal cliff was among the factors driving down stock prices sharply in a post-election slump. The Dow Jones industrial average was down nearly 300 points in its biggest one-day slump in nearly a year, pushing the benchmark index below the 13,000 level before it recovered slightly.

Recent reports have shown the economy picking up strength. Growth in U.S. gross domestic product, though still sluggish, picked up to a 2.0 percent annual pace in the third quarter from a 1.3 percent rate in the second. After a pause this spring, the pace of hiring picked up this summer, with employers now adding some 175,000 new jobs a month to payrolls. Consumers are spending more on big-ticket items, like cars and appliances.

A prolonged budget impasse would reverse those gains. The hit to consumer spending from higher taxes, along with the loss of government spending, would knock 3 to 4 percent from GDP, according to the Congressional Budget Office.

"If we go back into recession, we will likely pull the global economy with us," said Ameriprise Financial economist Russell Price. "The longer a (budget) deal takes, the longer the economy suffers. It’s just that simple."

In their election night speeches, both Obama and Romney hinted that members of the newly elected Congress, who have been gridlocked over the issue for months, need to cross party lines to tackle the problem when they resume business next week.

"In the coming weeks and months, I am looking forward to reaching out and working with leaders of both parties, to meet the challenges we can only solve together,” Obama said. “We are not as divided as our politics suggests. We’re not as cynical as the pundits believe."

“At a time like this, we can't risk partisan bickering and political posturing,” Romney said. “Our leaders have to reach across the aisle to do the people's work.”

There are some broad signs that a congressional compromise is possible before year-end. An influential group of business economists recently indicated support for some new tax increases to balance the budget. Obama and some Senate Democrats have indicated further cuts are needed in large entitlements like Social Security and Medicare, by far the biggest contributors to budget deficits.

A major flash point remains over the White House's insistence on raising tax rates for the wealthiest Americans – those earning $250,000 or more. The White House recently renewed its threat to veto any budget deal that preserves Bush tax cuts for those high-income earners.

As both sides begin to look for a compromise, that contentious issue remains. Despite campaign spending of some $6 billion, voters re-elected a government with virtually the same political make-up as the one that has been deadlocked for years over tax policy.


House Speaker John Boehner, R-Ohio, told reporters Wednesday that House Republicans “want the president to succeed” and urged broad reform of the tax code. But he renewed his party’s opposition to raising tax rates on the upper end of the income ladder.

“We’re willing to accept new revenues under the right conditions,” he said. “(But) feeding the growth of government with higher tax rates won’t solve the problem.”

Senate Democratic Leader Harry Reid said he was willing to negotiate with Republicans any time on any issue.

"We have to sit down and go to work on it now, not wait. This was really the message the American people sent," Reid said at a Capitol Hill news conference.

If the House remains dug in over the issue of tax increases, compromise with Senate Democrats and the White House will be difficult to reach – even if it means reversing recent progress in mending the economy.

“With neither party gaining much political capital during the elections, both have little choice but to strive for a compromise that prevents the hikes in taxes and cuts in government spending that are due to start sucking $600 billion, or 4 percent of GDP, out of the economy early next year,” economists Paul Dales and Paul Ashworth at Capital Economics wrote to clients Wednesday.

Last minute deal?
Ashworth and Dales believe that the impasse will likely be broken at the last minute as Democrats agree to extend the tax cuts for high-income earners and Republicans agree to delay spending cuts.


“So although another recession will probably be avoided, postponing the cliff without tackling the underlying long-term fiscal problems will undoubtedly lead to more credit ratings downgrades early next year,” they said.

The U.S. government's failure to get its fiscal house in order after political gridlock set in during the summer of 2011 prompted Standard & Poor's to take the historic step of downgrading the U.S. credit rating from AAA+, its highest, to AAA. Ratings agency Fitch said Wednesday it might follow suit if a pact is not reached quickly.

Some aren't so sure a compromise will be reached in the lame-duck session.


“The House Republicans are not going to vote for an increase in marginal tax rates,” Tony Fratto, a White House spokesman in the George W. Bush administration, told CNBC. “They're not going to do it. This is what they believe in. This is their economic policy. They don't want to see higher tax rates. And they believe it's bad for the economy.”

Given that resistance, some political observers suggest that the White House may let the budget impasse extend through the first of the year, allowing spending cuts and tax increases kick in.

At that point, with rates at much higher, pre-Bush levels, Obama and Senate Democrats could propose large “tax cuts” – for everyone except the wealthiest - that would still leave revenues higher than they are under current law. That strategy would, in effect, amount to a game of chicken, with the economy the biggest potential loser.

The impact could take time to unfold. While clearly dire in the long run, the economic damage from combined tax increases and spending cuts would be felt gradually in the early months of 2013, according to Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and former economic adviser to the Obama administration.

“The way to think about the fiscal cliff is more of a slope,” he said. “Just going over the fiscal cliff and reversing yourself pretty quickly - the fiscal bungee jump - I don't think it's a good thing, but that's not recessionary.”

Even is a deal if reached, the budget process faces yet another monkey wrench early next year: the looming expiration of the $16.4 trillion debt ceiling. The once-routine process of raising the government’s legal borrowing created the political fracas that produced the fiscal cliff in the first place.

Friday, November 16

Apple shares slump 4% to 5-month low

Reuters

SAN FRANCISCO - Shares of Apple Inc slid almost 4 percent on Wednesday to a five-month low, outpacing the U.S. stock market's post-U.S. election losses, and slipping into bearish territory.

Stock in the world's most valuable technology company has dropped more than 20 percent from a record high in September, entering what the market recognizes as bearish ground. It hit a low of $558.38 on Wednesday, before trading down 3.5 percent at $559.74 around midday.

While Apple shares have appreciated 38 percent so far this year, the company faces unprecedented competition during the crucial holiday season as rivals such as Microsoft, Samsung Electronics, Google and Amazon.com Inc challenge its dominance in smartphones and tablets.

The company saw its market share slide to 50 percent in the key tablet arena, while arch-foe Samsung more than doubled its share to 18.4 percent, according to research firm IDC.

Analysts say the company remains a solid long-term bet, but uncertainty persists in the near term after CEO Tim Cook ousted veteran mobile software chief Scott Forstall and the company failed to meet analysts' expectations on its latest quarterly results.

Thursday, November 15

Dow takes nosedive, closes below 13,000

JeeYeon Park , CNBC

Stocks took a sharp nosedive in a post-election selloff Wednesday, with the Dow logging its biggest decline in nearly a year, prompted by concerns over the looming "fiscal cliff" and amid renewed worries over Europe's weak economy.

The Dow closed below 13,000 for the first time since early August, while the S&P 500 finished below 1,400.

“It’s now how quickly we can focus on the ‘fiscal cliff’ and coming up with a resolution—that's certainly the next item on the agenda for the market,” said Art Hogan, managing director of Lazard Capital Markets. "And you still have Europe."

The Dow Jones Industrial Average was down more than 300 points in its biggest one-day drop in almost a year, dragged heavily by Bank of America and JPMorgan.

The S&P 500 and the Nasdaq also finished sharply lower. The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped near 19.

All key S&P sectors ended firmly in the red, led by energy and financials.

Apple fell more than 3 percent, pushing the tech giant down a jaw-dropping 20 percent from its all-time high of $705.07 in mid-September. The stock is now trading in bear market territory.

Obama was re-elected president Tuesday night, put over the top by the crucial battleground state of Ohio following the most expensive election in U.S. history.

Meanwhile, ratings agency Fitch said Obama needs to move quickly to avoid the "fiscal cliff," adding that failure to address the issue would likely result in a downgrade in 2013. Moody's said it would make a decision following the budget negotiations, though going over the "fiscal cliff" would not immediately trigger a downgrade.

Wall Street had favored Romney and the Republican ticket in part because it preferred their approach of retaining tax cuts, and making spending cuts. The Obama Administration favors raising taxes on the richest Americans, and also increasing capital gains and dividend taxes.

Across the pond, European shares reversed their gains to close sharply lower following ECB President Mario Draghi's negative comments on the region's economy. Draghi said economic activity in the euro zone area is expected to remain weak and the slowdown may have reached Germany.

And the members of Greece’s parliament are expected to vote on a new package of austerity measures with the government’s majority under threat. If the bill doesn’t pass, Greece will not receive its next financial aid installment of 31.5 billion euros ($40.2 billion) on Monday.

“The U.S. election temporarily flipped worries over Europe, but Europe still has an important role in global markets,” said Quincy Korsby, market strategist at Prudential Financial. “They’ve obviously been a chronic condition, but it’s flare ups like today that grab attention.”

Among earnings, Macy's reported a higher profit, thanks to sales gains, and the department-store chain also boosted its full-year earnings guidance.

Time Warner edged higher after the media company posted better-than-expected earnings.

And Kraft Foods struggled to hold gains even after the newly independent food manufacturer reported a higher profit and affirmed its 2013 outlook.

Qualcomm, CBS and Activision Blizzard are among companies slated to post earnings after the closing bell.

Treasury prices slipped from session highs after the government auctioned $24 billion in 10-year notes at a high yield of 1.675 percent. Bid-to-cover was 2.59.

On the economic front, weekly mortgage applications declined last week as Hurricane Sandy battered the East Coast and disrupted normal business activity, according to the Mortgage Bankers Association.

And consumer borrowing expanded by $11.36 billion in September, according to a Federal Reserve report. Economists polled by Thomson Reuters expected a gain of $10.1 billion.

Wednesday, November 14

State with widest gap between rich and poor? New York

Michael B. Sauter, Alexander E.M. Hess and Samuel Weigley , 24/7 Wall St.

Since the late 1970s, income inequality in the U.S. has grown by nearly 20 percent. The Great Recession has brought the disparity between the rich and the poor to the forefront of the news. The Occupy Wall Street movement and terms such as the 99 percent and 1 percent further highlight the attention about the subject. Instead of improving after the recession, income inequality rose 1.6 percent between 2010 and 2011.

In some states, the Gini coefficient -- a ratio between zero and one that reflects perfect equality at zero and significant concentrations of wealth, extreme poverty and a limited middle class as the ratio increases -- is well below 0.0476 national average. In Wyoming, the coefficient is just 0.408. In New York state, income inequality is now at 0.503. Based on 2011 figures from the U.S. Census Bureau’s American Community Survey, 24/7 Wall St. identified the states with the widest gap between rich and poor.

In an interview with 24/7 Wall St., Director of Research and Policy at the Economic Policy Institute Josh Bivens explained that the recession, despite its disastrous effects on employment, actually has temporarily caused growth in inequality to slow, as extremely high-income individuals in finance were hit particularly hard. Still, Bivens believes that income will again begin rising much faster among the top 1 percent than the rest of the population in the next several years.

The reasons some states have more income inequality than others are varied, but the industrial makeup of these states is perhaps chief among them. States with a disproportionate representation of industries with the potential for extremely high-income positions are more likely to have higher income inequality than those with more diverse industries.

Connecticut and New York, for example, are home to the largest finance centers in the country. Investment bankers and hedge fund managers in the state can earn many times the average middle-class worker. In New York, 8 percent of households earned $200,000 or more in 2011, much higher than the national average of 5.6 percent. In Connecticut, 11.2 percent earned more than $200,000.

In other states, such as Texas and Louisiana, the oil extraction industry has created a small group of billionaires. These states also have some of the largest impoverished populations in the country. In Louisiana, more than one in five residents live below the poverty line, significantly higher than the national rate of just 15.9 percent.

Unemployment hit 7.8 percent in September, the lowest it has been since January 2009. It rose to 7.9 percent in October as more people returned to the work force. However, while more people return to work, this is not necessarily positive news for the long-term health of the American middle-class. The U.S. is not projected to return to pre-recession employment levels until 2017, Bivens explained, and as Americans return to work, they will be more willing to work for lower wages.

In this environment, “it’s really tough for workers to get good wage increases at the middle when there are unemployed workers who could replace you if you start making big wage demands,” Bivens said.

Based on data from the U.S. Census Bureau, 24/7 Wall St. identified the 10 states with the widest gap between rich and poor, as measured by states’ Gini coefficient scores. In addition to these scores, 24/7 Wall St. reviewed median income and the distribution of household income provided by the Census Bureau for these states. We also reviewed the percentage of households living below the poverty line and the percentage of households receiving food stamps. Additionally, we looked at the Institute for Policy Studies’ Inequality Report Card, which provided grades to senators and congressmen based on their voting record related to income inequality.

These are the states with the widest gap between rich and poor.

1. New York

· Gini coefficient: 0.5033

· Median household income: $55,246 (16th highest)

· Households earning $200,000+: 8.0 percent (6th highest)

· Population living below poverty line: 16.0 percent (21st highest)

New York, which had the highest income inequality in 2010, had an even higher inequality in 2011. The 16 percent of the population living below the poverty line in 2011 increased from 14.9 percent in 2010 to 16 percent in 2011. The median income declined by $466 between 2010 and 2011. Meanwhile, the percentage of households raking in at least $200,000 was 8.0 percent in 2011, virtually unchanged from 2010 and well above the national rate of 5.6 percent. According to a recent study conducted by Martin Prosperity Institute, income inequality in the New York City metro area is roughly equivalent to that of Swaziland, a poor sub-Saharan country that has the lowest life expectancy in the world.

2. Connecticut

· Gini coefficient: 0.4859

· Median household income: $65,753 (4th highest)

· Households earning $200,000+: 11.2 percent (the highest)

· Population living below poverty line: 10.9 percent (5th lowest)

At 11.2 percent, Connecticut has the highest percentage of households making $200,000 or more. On the other side of the income gap, the percentage of the population living below the poverty line rose from 10.1 percent in 2010 to 10.9 percent in 2011. Many residents also lost their jobs. The state’s unemployment rate in Sept. 2012 was 8.9 percent, up from 8.6 percent the year before. During that time, the national unemployment rate fell from 9 percent to 7.8 percent. In Connecticut’s Fairfield County, the Gini coefficient was 0.535 -- higher than any state. The county is home to several hedge funds and country clubs, but also to government housing and food pantries.

3. Louisiana

· Gini coefficient: 0.4836

· Median household income: $41,734 (7th lowest)

· Households earning $200,000+: 3.5 percent (17th lowest)

· Population living below poverty line: 20.4 percent (3rd highest)

The percentage of households below the poverty line shot up to 20.4 percent in 2011, the third-highest percentage in the country, from 18.7 percent in 2010, the sixth-highest rate that year. Households earning less than $10,000 grew to 7.7 percent in 2011, the second-highest in the country. In 2010, it was 6.2 percent -- sixth-highest at the time. This happened even as the unemployment rate in Louisiana dropped to 5.6 percent in 2011 from 6.2 percent in 2010, indicating job growth primarily at the lower-end of the wage spectrum. East Carroll Parish, located in the northeast corner of the state, had the highest income inequality of all counties in the U.S., according to a Feb. 2012 report from the U.S. Census Bureau looking at data from 2006-2010.

4. New Mexico

· Gini coefficient: 0.4821

· Median household income: $41,963 (8th lowest)

· Households earning $200,000+: 3.4 percent (tied for 15th lowest)

· Population living below poverty line: 21.5 percent (2nd highest)

Between 2010 and 2011, New Mexico’s Gini coefficient rose from 0.464 -- then 15th in the nation -- to 0.482, one of the highest in the country. During this time, many New Mexicans brought home less money, as median income fell from $43,326 in 2010 to $41,963 in 2011. Also, 7.2 percent of the state’s households earned less than $10,000 last year -- one of the highest rates in the nation. Poverty is a long-running problem in New Mexico. The percentage of households living below the poverty line rose from 18.1 percent in 2010 to 21.5 percent last year -- the second-highest poverty rate in the nation. Despite the state’s high poverty rate, one of its three congressman, Steve Pearce, received a “D-” from the Institute for Policy Studies on promoting income equality.

5. California

· Gini coefficient: 0.4812

· Median household income: $57,287 (10th highest)

· Households earning $200,000+: 7.8 percent (7th highest)

· Population living below poverty line: 16.6 percent (18th highest)

Nearly 8 percent of households in California earned at least $200,000 in 2011, more than all states but six. But while California has its sliver of Hollywood bigwigs and self-made billionaires striking it rich in Silicon Valley, the state also has a fair share of residents on the lower-end of the income spectrum. The state’s 16.6 percent poverty rate was higher than the national poverty rate of 15.9 percent. Despite this, California in some regards did better than its peers. For instance, the 8.3 percent of Californians on food stamps in 2011 was a lower percentage than all but four states. Furthermore, the 4.7 percent of households earning less than $10,000 in 2011, while far from being the lowest percentage among all states, was better than the 5.1 percent across the country.

Tuesday, November 13

Unemployed vote split down the middle

Steve Liesman , CNBC

In an election that was supposed to be about jobs, jobs and jobs, the unemployed vote appears to be a dead heat.

In an exclusive look at how the unemployed will likely vote, CNBC found 26 percent of the public report either they or someone in their household has lost a job in the past four years.

But this group splits 48 percent to 48 percent in their presidential choice, similar to the broader population, which splits 48 percent to 47 percent for President Obama.

If the respondent was unemployed, the break is 50 percent for Obama vs. 45 percent for Republican challenger Mitt Romney. If only a person in the household lost a job (not the individual respondent), the split is 51 percent for Romney vs. 48 percent for Obama.

With a 7.9 percent unemployment rate in October, Obama stands for reelection with the highest jobless rate of any president in the post-war era.

Of the four other incumbents who ran with unemployment rates above 7 percent — Gerald Ford, Jimmy Carter, GHW Bush and Ronald Reagan — only Reagan won back the White House.

Significantly, while the unemployment rate under Reagan was 7.4 percent in the October before the election, it had fallen 1.4 percentage points in the prior 12 months.

Under Obama, unemployment has fallen by 1 percentage point in the past year.

The data raises several questions that can only be answered by actual election results, including whether the change in the unemployment rate is more or equally important than the level of joblessness.

It could be that the positive momentum in the rate, added to the power of the incumbency, is sufficient to keep Obama in the White House. It could equally be that the high level of unemployment is a key factor in winning Romney the job.

However, the split support among the unemployed suggests Romney was not overwhelmingly successful in winning the support of those who have personally experienced joblessness. That could be because his message on jobs was not strong enough or because other factors — race, political leaning and especially income level — were more important.

The demographics of the unemployed skew slightly less white than the broader population. But it’s hard to attribute the split among the unemployed to ethnicity.

White voters overall break 57 percent to 38 percent for Romney. White voters who have experienced unemployment break 57 percent to 42 percent for Romney, which is not a statistically meaningful difference. But it shows that Romney was not successful in gaining significantly more support among whites who have experienced unemployment compared to those who have not.

Of course, the actual election results will almost certainly differ significantly from the polls and it could turn out that unemployment is the front-burner issue it was cracked up to be. Indeed, other polls have shown that for the broader voting population, jobs is a key factor in presidential choice.

How the poll was conducted: The poll, conducted in conjuction with another survey, was based on 1,000 likely voters conducted Nov. 2-3 by Hart-McInturff, a Republican and Democratic polling organization.

Monday, November 12

Gas still hard to come by; N.Y. probes gouging

Staff reports , NBC News

Updated at 3 p.m. ET: A week after Superstorm Sandy swept ashore, drivers and others seeking fuel continued to face lines and frustration in New York and New Jersey as authorities worked to restore the complex supply network of pipelines, refineries and distribution points.

New York State Attorney General Eric Schneiderman launched an investigation into possible price gouging on gas, generators and other items, saying he has received more than 400 complaints. Some consumers complained of being charged $10 for a box of matches and $7 for a loaf of bread. A similar investigation was launched last week in New Jersey.

"Our office has zero tolerance for price gouging," Schneiderman said in a statement. "We are actively investigating hundreds of complaints we've received from consumers of businesses preying on victims of Hurricane Sandy, and will do everything we can to stop unscrupulous individuals from taking advantage of New Yorkers trying to rebuild their lives."

New York's law does not specifically define gouging but prohibits retailers from charging "unconscionably excessive" prices in an emergency.

New Jersey's Division of Consumer Affairs said it has issued subpoenas to 100 businesses across the state, stepping up its investigation into more than 1,200 consumer complaints, mainly about alleged price gouging at gas stations, hardware stores, convenience stores and hotels, according to Attorney General Jeffrey S. Chiesa.

In some cases gas stations reportedly raised prices by more than $1 a gallon after the storm, according to ConsumerAffairs.com. The state also has received complaints about stations charging more to fill up hand-held canisters than to fill car gas tanks in violation of the law, the website reported.

Relief was in sight as barges and military planes have been deliver fueling to terminals since Thursday. But authorities have had trouble moving the fuel to consumers, in part because so many gas stations still have no power, rendering their pumps useless.

"It's like war," Sam Aushulumov told NBC News near a Gulf station in Brooklyn where he had been waiting more than three hours with just one gallon of gas left in his Volvo. The station on Coney Island Avenue had seven police officers keeping order, a line of cars stretching nine blocks and 65 people standing in line with gas canisters.

Taxi driver Joseph Mosely, waiting in line with two, five-gallon canisters, estimated he had lost $1,000 in income so far due to the storm.

"No gas, no income," he said.

In addition, more than a dozen of the 20 main terminals in New Jersey remain offline, according to CNBC. reports CNBC.


The Coast Guard was busy cleaning up several oil spills, including a leak on the Arthur Kill waterway, which separates Staten Island in New York City from New Jersey. Tankers damaged by Sandy spilled diesel fuel into the waterway last week and crews were still pumping contaminated water on Sunday afternoon.

Yet another cleanup effort was under way a few miles on the waterway, near Kinder Morgan's Perth Amboy, N.J., terminal, where the Coast Guard said it had recovered 780,000 gallons of an oil-and-water mixture. Kinder Morgan, however, said there was no spill from its Perth Amboy facility.

As more area residents returned to work, anxious drivers trying to fill up continued to strain the system.

Paul Eng of Queens told NBC News he waited for two hours only to be turned away, with police watching carefully, when gas ran out. Another station near his home had “lines that wrapped around the city block and wait times of three and a half hours," he said.

However, he's not letting the situation make him feel desperate.

He still has a quarter tank of gas left in his Honda CR-V and an all-electric Ford Focus in the garage. “All batteries, no gas needed,” he said.

John Horfmeister, former CEO of Shell Energy, said the long lines were being driven more by fear than simple demand.

"Fear (that) when you need gas there won't be any," he told TODAY. "The drivers put excess demand on a system that is undersupplied."

Horfmeister said New Jersey Gov. Chris Christie made a good decision in ordering 1970s style gas rationing, in which motorists can only buy gas on odd- or even-numbered days, depending on their license plates.

"Odd-even was a good decision, because it reduces demand by mandate," said Horfmeister.

Once power and the gas distribution system are fully restored, it will take about five days for the lines to die down as drivers get refueled and sorted out, Horfmeister said.

One bright spot in the fuel picture is that gas prices have been falling sharply nationwide, in part because of the decline in demand caused by Sandy, which has kept so many millions of people at home or close to home, because of lack of transportation, lack of power or the need to clean up.

The national average gas price dropped seven cents over the past week to $3.47 a gallon, AAA says. That's cold comfort, however, to drivers who wait for hours who are then forced to drive off empty-handed when the underground tanks run dry.

Gas prices have risen slightly in New York and New Jersey, up three cents in New York and seven cents in New Jersey, the Associated Press reported.

Several websites have been launched to help drivers find fuel. Google Crisis Map overlays vendor- and user-supplied data onto a Google Map to show where stations are open and reporting fuel levels. GasBuddy.com's mobile-device optimized site, drawing on user reports, showed “No Fuel” at many stations in the affected area.

Along New Jersey's busy Route 3 corridor, which feeds into Manhattan, several brand-name service stations remained shut, Reuters reported. A Hess outlet that held ample supplies in recent days had a line of about 30 cars -- down from more than 100 last week.

Adding to the misery, a Nor'easter storm was on track to hit the region Wednesday with winds up to 55 mph, near-freezing temperatures and possibly more power outages.

Sunday, November 11

As Northeasterners line up for gas, prices dip

With miles of cars lined up for fuel after superstorm Sandy, it may come as a surprise that gas prices are actually down. John Hofmeister, former CEO of Shell Oil and founder of Citizens for Affordable Energy, explains why.

By Ben Popken, TODAY contributor
In the wake of Superstorm Sandy, there are long lines at the pumps in the Northeast, but gas prices are actually down an average 21 cents a gallon nationwide over the past two weeks. Sometimes it is tough to square images of the extended queues of people waiting for gas with prices on the sign at your local gas station.

Will gas prices rise for the rest of America because of Sandy?

To get at the answers and the big picture, TODAY had the former CEO of Shell Energy, John Hofmeister, currently CEO of Citizens for Affordable Energy, on the show to break it down.

The burning question: Why such a big drop in gas prices? Sandy was a major event for the many lives it took, devastated and changed. In terms of the gas market, though, there are bigger, longer-trending forces at work. The big one is seasonal demand. This time of year, for many months in a row, there is less driving in general. That pushes down prices across the board.

On top of that, looking out into the next year and beyond, it doesn't look like there's going to be a big ramp-up in demand for fuel use any time soon. That also keeps a thumb on the price of filling up at the pump.

Hold on a second, though: Prices shot up after Katrina. Why isn't the same thing happening with this major, devastating weather event? For one, Hurricane Katrina hit the oil-producing Gulf Coast, hitting production facilities and refineries with sustained damaging wind and water.

The wind didn't last as long and wasn't as destructive in the Northeast, and didn't hit a major supply center for the country. Pipelines and supply routes were disrupted on the East Coast, but that's more about delivery. That isn't as much of a factor on national gas prices as having the supply get impacted.

What about the long gas lines? How much longer will they last?

It all depends on when full power is restored, said Hofmeister. After that, it should take about five days for drivers to get resupplied and get demand back to normal.

It's that spike in demand that's the big factor right now.

"Odd-even was a good decision, because it reduces demand by mandate," said Hofmeister, referring to the gas-rationing ordered by New Jersey Gov. Chris Christie. Under the policy New Jersey gas stations can only sell gas to license plates ending in an even number on even days of the month and to odd numbers on odd days of the month.

"Fear drives the long lines," said Hofmeister. "Fear (that) when you need gas there won't be any. The drivers put excess demand on a system that is undersupplied."

As power comes back on, people finish digging out their homes and supplies return, that fear is likely to abate, and along with it, the lines at the pump.

Saturday, November 10

North Korea's 'hotel of Doom' can open in 2013.

Next year most interesting hotel opening is not a 6-star palatial Dubai building or an over-the-top Las Vegas accommodation, which would Versailles look like understatement.

It is also known as the highest hotel in the world and the "hotel of Doom" due to its long history, Ryugyong Pyongyang.

The huge gray building was begun first 1987 and opens its doors for the first time next year according to Reto Wittwer, achieving CEO of Kempinski international hotel operator, the German company that tried the project.

A Conference in Seoul, South Korea, Wittwer tells his hopes for the hotel on Thursday.

So, this pyramid-shaped Monster Hotel could herald a new era of openness of the country's famous closed relative now among Newmanagement of supreme leader Kim Jong-UN?

"The short answer is no," said Bruce Goslin, Executive, CEO of K2 intelligence and a connoisseur of the country, CNBC.com.

"Apart from the obvious facts that it dominated a hermit country, a dictatorship, and most of its population of hunger suffer it not many signs for Itopening soon."

Some in the West had hoped that the notorious Isolationalist regime could soften its approach, when Kim Jong-Il became its new President upon the death of his father last year.

However, he seems with controversial nuclear ambitions of the country have continued.

"The new President visited in the West, so you would be comfortable opening think - but he still has a very powerful Rulingmilitary deal, and I don't think you want to turn also friendly traipsing to tourists over the landscape," Goslin said.

"It's an interesting development, but we should not forget this is the same glorious leader, wanted to create an amusement park."

Kim since the presidential win Jong-un better publicized photo opportunities among the Rungra people's pleasure ground with its fresh married woman in July.

Kempinski it could be difficult when confronted with the challenges of access of to basic services such as water and electricity, Goslin pointed out.

Wittwer proposed that the new hotel could be a way for the Government to get access to foreign exchange.

Of course, you know when a population could suddenly change never. Very few people predicted in the Arab spring.

Above, there was an opening, it would want to see family members, the part of the regime to have been many ex taps as well as to Internationalvisitors curious to see, which closed state looks like.

Goslin said this was unlikely, and argued that the Government access to hard currency by "Participation in criminal enterprise like Drugsmuggling."

The investment raises the intriguing possibility that it has Western Governments as a way of helping North Korea to Becomeless insular, Goslin noted encouraged been.

Still, there no reason on investments in North Korea still upset, he said.

"This is not for one of the biggest earners of this hotel chain - may be more symbolic than anything else," he said.

Friday, November 9

Playboy Club in India - but no 'Hares'

MUMBAI--the Playboy Club after India - but with "Bunnies" not revealing outfits comes.

"The costumes of the bunnies that are an integral part of Playboy culture, based on Indian sensibilities and morality," Sanjay Gupta, CEO of PB lifestyle, which brings the brand in India by a license agreement, told of Reuters.

India has strict censorship laws and there is no Indian version of Hugh Hefner Playboy Magazine, which became known for his paintings of naked women for the hedonistic lifestyle propagated by its founder in life called.

Playboy Bunny or waitresses wear usually matte black bodices, bow tie, cuffs and bunny ears. PB has not yet chosen lifestyle, what wearing waitresses in India, a socially conservative country, where it is for couples to hold hands in public is frowned upon.

Even a popular Cricket Tournament drew criticism and threats, as it hired foreign cheerleaders in short dresses, forcing the organizers, less skin showing outfits to renew.

"Our clubs do not have no nudity." So there should be no problems, and we are ready to cope if there any, "said Gupta, whose media and real estate company a 30-year licensing agreement signed with American Playboy Enterprises Inc"

Gupta company plans to use the Playboy brand and its icon of rabbit-head logo on clubs, bars, hotels and Cafes and spend 2 billion rupees ($37 million) in the first five years. The first Playboy India are followed by a a Club Resort State of Goa, in Hyderabad.

Whether the trade mark Playboy in sold remains to be seen a toned-down version.

"they are linked to lightly clad women, fun and pleasure." "What's the point to get so boring after India Playboy?"asked 25-year Yash Sanghavi, senior digital advertising.

Copyright 2012 Thomson Reuters.

Thursday, November 8

Restructuring fired Swiss Bank to 10,000

Swiss Bank UBS unveiled plans on Tuesday, fire, wind to below the fixed-income business, returning to his private banks roots what it strict capital rules that impeded adapts to a profit of the trade to make, and 10,000 employees.

Zurich UBS focuses on asset management and a smaller investment bank ditching much of the trading operations, which ran until $50 billion losses in the financial crisis.

Some UBS employees took their frustration air social media, after dozens of retailers, from entering the Bank of London were stopped offices on Tuesday.

Some employees surfaced to find their employees cards no longer worked at the hub and were then to the human resources department, escorted, to work according to various sources within the Bank.

Once in human resources, they received their leave again to their redundancy package pick up personal items in a bag with a letter that she two weeks would have paid according to which they were, who sources said.

Scouring their brusque treatment by Swiss Bank revived several tweeters "U have raised were dismissed, the zirkulierten 1998 to the Bank an invented acronym for UBS hundreds employees after the merger of two Swiss banks formed today's UBS."

Chief Executive Officer Sergio Ermotti, one former Merrill Lynch and UniCredit banker, who took over after the affair Adoboli leads the three year overhaul, storing of 3.4 billion Swiss francs ($3.6 billion), which aimed to cuts of 2 billion Swiss francs.

Former investment banking co-head who will lead Carsten Kengeter, the isolation and the destruction of its fixed income activities, which are not more profitably introduced by stringent rules of riskier companies after the financial crisis.

The remaining investment bank - dealing with equities, Forex trading, corporate advice and precious metal will trade - by Andrea Orcel, hire safe Ermotti recent of America run by the Bank, the device with Kengeter until Tuesday co-ran.

"This decision was hard, but it is necessary to create a UBS that is fit for the future," Ermotti said. "The business model that we create is unique in the banking industry."

The measures for a reduction of 15 per cent staff translate, under the UBS total personnel to 54,000, from 63.745 now, down from a 2007 peak of 83.500 as banks shed have tens of thousands of jobs worldwide since the financial crisis 2008.

The job cuts 2,000 front be Office Investment Bank staff, the revenue generators. Cuts in support staff which will bring layoffs of 5,000 in the securities unit alone, said Ermotti in Zurich.

About 2,500 positions in the Switzerland, slightly more than the United States and the rest in the UK will go Ermotti said.

UBS count a smaller Investment Bank focused on its private bank, which handles the Affairs of the rich. With 1.6 trillion franc fortune, it is the second largest operation of its kind in the world after Bank of America.

UBS shares, which rose by 7.3 percent on Monday in anticipation of the announcement increased a further 4.3 percent to 13.69 Swiss francs from 1256 GMT in exceptionally heavy trading, their highest level since July 2011, compared with a rise of 0.7 percent for the European Bank sector index.

"This is a transformational change for UBS, which wanted to happen investors for a long time," said Kepler capital markets analyst Dirk Becker. "Upon completion, this job cuts UBS is an attractive investment case, but we nevertheless believe that the execution risk should not be underestimated."

UBS, a rescue by the Government in 2008 to more than 50 billion $ held mortgage losses, is effectively to admit crack on the failure of the attempt which started Big League fixed income ten years ago by the former Chairman Marcel Ospel.

The Bank suffered a $2.3-billion hit last year blame the dealer Kweku Adoboli, now court due to fraud and accounting fraud.

Deutsche Bank said on Tuesday it hopes by the UBS cuts benefit, since the Investment Bank third quarter record sales and trading revenue delivered.

Credit Suisse said last week that it was more cost, cut its profit and capital boost, but not the same kind of radical restructuring as UBS announce.

The overhaul represents a retreat on strengths in the Advisory as a result of the UBS acquisition of Warburg, a British Merchant Bank, 1995.

The Bank is supposed to pay a modest 0.10 Swiss francs per share from more than 50 percent of the profits to the shareholders by 2015 after dividend its first crisis last year. It means has deposited in the third quarter for a undetermined dividend this year, Tom Naratil said journalists financial Chief.

The cost for that investment banking will share also lead to a loss in the fourth quarter and fiscal year, when together with charges on the debt you the Bank UBS said:.

The private bank is also challenges, with a profit of fall as push-to tax on the undeclared assets in offshore accounts draw Swiss banking secrecy as foreign governments weakened is.

However, the unit secured 7.7 billion Swiss francs in net new money from clients in the third quarter, the highest score in a third quarter - usually a slowly for the business due to summer vacation - represents over five years.

Vontobel analyst Teresa Nielsen said that the focus on asset management, which should increase company is considered safer as UBS clients and an attractive employer for their consultants.

"We expect to continue increasing strength show UBS asset management, as its reputation continues to improve, take potentially even market shares of Credit Suisse, Julius Baer and other competitors," she said.

UBS loss swung quarter 2,172 billion Swiss francs, hit by restructuring charges and 863 million francs, which depreciated the value of their own debt. Analysts in a Reuters poll had forecast a net profit of 457 million francs.

UBS seeks end of 2017, of 301 billion currently to reduce risk-weighted assets to under 200 billion Swiss francs. This will be the investment bank about 70 billion francs, less than half of what he makes for today.

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