Tuesday, August 31, 2010
Sunday, August 29, 2010
Modest jobs check goes to boss
WASHINGTON -- Companies that sinecure impoverished workers will get a proxy payroll taxation legal holiday underneath a check that simply won congressional capitulation Wednesday.
The 68-29 bipartisan opinion in the Senate sent the legislation to the White House, where President Barack Obama was approaching to pointer it in to law today. Eleven Republicans voted for the legislation.
It was the initial of multiform jobs bills betrothed by Democrats, though theres copiousness of doubt that the magnitude will do most to essentially emanate jobs.
Optimistic estimates envision the taxation mangle could beget maybe 250,000 jobs by the finish of the year, but that would be only a little fragment of the 8.4 million jobs lost given the begin of the recession.
The magnitude is square of a debate by Democrats to show that they are addressing the nations stagnation problem, but that summary was overshadowed by Congress" hectic last pull to pass health caring renovate legislation by this weekend.
"It is the initial of what I goal will be a array of jobs packages that assistance to go on to put people behind to work," Obama pronounced after the vote.
The check contains about $18 billion in taxation breaks and a $20 billion distillate of income in to main road and movement programs. Among alternative things, it exempts businesses that sinecure people who have been impoverished for at slightest 60 days from profitable the 6.2 percent Social Security payroll taxation by Dec and gives employers an one more $1,000 credit if new workers stay on the pursuit a full year.
Taxpayers will have to repay Social Security for the lost revenue.
"This is only the first, positively not the last, square of legislation that we will put brazen in propinquity to jobs," pronounced the sponsor, Sen. Chuck Schumer, D-N.Y. "If we dont emanate jobs, the economy will not move forward."
It additionally extends main road and mass movement programs by the finish of the year and pumps in $20 billion in time for the open building a whole season. That income would have up for lower-than-expected gasoline taxation revenues.
The magnitude is medium compared with last years $862 billion mercantile impulse bill, and the bulk of the employing taxation breaks would probably go to companies that were expected to sinecure new workers anyway.
"Until commercial operation picks up for small commercial operation owners, theres not going to be a outrageous inducement to supplement new workers," pronounced Bill Rys of the National Federation of Independent Business, that lobbies for small business.
The check is financed in square over the entrance decade by enormous down on offshore taxation havens, though it would supplement $13 billion to the nations debt in the entrance 3 years.
Saturday, August 28, 2010
Iceberg the distance of Luxembourg could thrust Europe in to cold winters
An iceberg the distance of Dorset has damaged off from Antarctica and could interrupt continue patterns for years to come.
The iceberg, that measures 50 miles by twenty-five miles, snapped off the Mertz Glacier, a 100-mile prolonged tongue of ice progressing this month.
It was dislodged by an older, 60-mile-long iceberg called B9B, that pennyless off the glacier in 1987.
The iceberg separate off the Mertz Glacier, a 100-mile separate of floating ice extending in to the Southern Ocean from Antarctica
The dual icebergs, that have a total weight of 1,000billion tons, are right afar floating 90 miles off Antarctica"s northern coast.
More...Scientists find hulk balderdash vegetable patch filled with cosmetic in AtlanticMore than two-thirds of new Tories are distrustful about meridian change
Experts arenow endangered that the iceberg - that contains sufficient uninformed H2O tosupply a fifth of the world"s race for a year - could retard theformation of cold, tainted water, well well known as "bottom water", that drivesthe ocean"s dissemination system.
Any changes to currentswould affect continue patterns around the world. Britain would becomefar colder but the amiable sea H2O brought from the south west bythe North Atlantic drift.
Collision: Before and after the Mertz Glacier Tongue pennyless off in February, when it was dislodged by another, comparison iceberg, well well known as B9B
It could additionally reducethe volume of oxygen in the oceans, murdering wildlife, whilst theregion"s Emperor penguin colonies and seals would additionally be affected.
Glaciologist Dr NealYoung said: "There are Emperor penguin colonies about 300km afar andseals in the area additionally come to get entrance to the open water.
"If the area gets choked up with ice, afterwards they would have to go elsewhere and see for food."
The area of Antarctica where the new iceberg not long ago separate off
Friday, August 27, 2010
Minnows Ross County shock pang Celtic Scotland
ROSS COUNTY and Inverness Caledonian Thistle have followed each alternative closely since fasten the comparison ranks in 1994 but until yesterday, County did not have a impulse to compare Caleys implausible Scottish Cup win at Celtic Park a decade ago.
They equalled, and maybe surpassed, it in a little character here by inflicting some-more misery on Celtic in this tournament. Surpassed since there is a last to come subsequent month opposite the winners of todays compare in between Dundee United and Raith Rovers, and a genuine awaiting of receiving the prize at the back of to the Highlands.
This was something Derek Adams, their 34-year-old manager, concurred matter-of-factly as though he had only over a slight First Division fixture. People had created us off beforehand, pronounced Adams. Thats a sharp pointer to everybody, pundits and ex-players, who pronounced Celtic were going to Hampden. We merit respect. Its a large outcome for Scottish football and the a pretentious day for the football club. The players were supposed to be in precision tomorrow, but I have since them the day off.
While one immature managers star rose spectacularly here, anothers plummeted. Neil Lennon had stressed previously that his prospects of the keeping the Celtic pursuit on a permanent basement did not hinge on one match, but he was fooling nobody. It is harsh, though, that he has been let down by a group that is not his own the same one that was often sealed by Tony Mowbray and additionally unsuccessful him.
Related LinksDefeat would lift questions about my future, says Lennon Keane gives fans renewed hopeScott aiming to gleam on the big stageCeltic proposed lazily in the midday sun, thereafter panicked when they realised the enormity of the shock maturation around them. Compared to County, they were cowards and Lennon, with cold fury, pronounced as most afterwards.
Roy MacGregor, Ross Countys former chairman, laid on breakfast at Hampden for 800 of the clubs fans who work for his organisation and Celtic additionally offering the Highlanders liberality on the pitch. Perhaps with the object out and temperatures up, the likes of Landry NGuemo and Georgios Samaras thought the World Cup had already started, nonetheless their lifeless performances scarcely referred to they should be participants in South Africa.
NGuemo is personification what used to be Lennons position, so can design his new manager to scrutinize him with an consultant eye. Three mins prior to half-time, Lennon had seen enough. The key of Marc Crosas was not so most a transformation as a open chagrin for the Cameroon international, whose flitting was again awkward and careless.
As the teams sparred and sussed each alternative out in the initial half, the conviction contingency have grown for Adams and his side that they could win this match. They poked somewhat hesitantly at Celtic until the break, as though not desiring how really bad their opponents were playing. Yet this phoney fight ended emphatically 10 mins after the restart when Steven Craig, son of Joe Craig, the former Celtic striker, seized on a tardy header by Darren ODea and took off past the labouring Josh Thompson prior to pushing the ball forcefully home when he entered Celtics box.
That lead competence have been fast lengthened had Michael Gardynes deflected cross not arrived with as well most gait and spin for Martin Scott to tame it or direct it toward the net. Celtics main chances fell to Marc-Antoine Fortune and Samaras when Lennon contingency have wished instead Robbie Keane had been offering them, but the on-loan Spurs striker lacked await throughout, a tactical error. He was additionally well-policed by Scott Boyd and Alex Keddie, Countys centre-backs.
Mowbray lavished 3.8m on Fortune last summer, but he has never assured as a finisher. This unwell was again clear when he transient Scott Morrison following Lee Naylors free flog from the left but could not guide the turn beyond the plunging figure of Michael McGovern, who similar to Gardyne was a discarded product of Celtics girl complement with a point to prove.
Boyd thereafter got a critical hold on a Scott Brown cranky to take it afar from Celtics in-rushing strikers whilst Lennon collapsed theatrically in frustration in Celtics technical area. Then came Celtics most appropriate chance. Paddy McCourt swept an considerable first-time pass out to Aiden McGeady on the right wing. Keane and, inevitably, Boyd converged on the indirect cranky but the turn went over them both to the at the back of post. Samaras took counsel aim with his left feet nonetheless his shot took the faintest scrape off Gary Miller, Countys right-back, thereafter strike the post. Keane thereafter eventually found a millimetre or dual of space in the box, but couldnt put a header on target.
Despite these moments, County were frequency pinned in their own half. Richard Brittain drew a resist from Lukasz Zaluska after a move that was plotted carefully by County, with the crafty Gardyne again prominent. Then came the goal that finished Celtics season, certainly ushering in a summer of change, and deservedly took County to the final. Scott came on one last detonate from midfield, played the turn to the fervent Andrew Barrowman down the right and then carried on in to the box at the back of the preoccupied Thompson to spin the return in to the net. As Countys dilemma of the track erupted, the territory of a half-full Hampden that had been populated by Celtic supporters streamed away. The apologies of Lennon and his players thereafter were as dull as the stands they left behind.
Star man: Martin Scott (Ross County)
Yellow cards: Celtic: ODea Ross County: Miller, Scott
Referee: W Collum Attendance: 24,535
Cup shocks
1967 BERWICK 1 RANGERS 0 Rangers finished the deteriorate in the European Cup Winners Cup final, but exited the Scottish Cup in the initial turn 1987 RANGERS 0 HAMILTON 1 Adrian Sprott scored the idea that repelled Graeme Sounesss side in the third turn 2000 CELTIC 1 INVERNESS CT 3 An dissapoint that saw the finish of John Barnes managerial power and the origination of that title 2006 CLYDE 2 CELTIC 1 Roy Keanes Celtic entrance finished in a degrading defeat by the Division One side
Thursday, August 26, 2010
Times and Sunday Times websites to assign from Jun
1220PM GMT twenty-six March 2010
It will cost 1 a day or 2 a week to get entrance to the titles" new websites, News Corp pronounced in a statement.
Subscribers to the imitation versions will get free entrance to the websites. The Times journal costs 1 on weekdays and 1.50 on Saturdays, and The Sunday Times costs 2.
Murdoch to assign for Times and Sunday Times online Murdoch to close thelondonpaper with hazard to 60 jobs New York Times to confirm how to assign for the website by August Murdoch shuts thelondonpaper freesheet Is free calm unequivocally the iron law of the internet? The most appropriate things in hold up are free, or are they?James Harding, editor of The Times, told the BBC that the move was a "big risk, but less of a risk than throwing the broadcasting away."
Rupert Murdoch, the authority of News Corp, believes people will compensate for great journalism.
He has singled out The Daily Telegraph"s revelations on MPs losses as an e.g. of headlines for that readers would be peaceful to pay, describing it as a "great scoop".
News Corp"s Wall Street Journal already charges of online content.
The new, apart websites - www.thetimes.co.uk and www.thesundaytimes.co.uk - will be launched in early May and will be free to purebred business for a hearing period.
Karadzic takes mount at hearing to repudiate fight crimes
A video grab shows wartime Bosnian Serb personality Radovan Karadzic as he takes the mount at his quarrel crimes hearing at The Hague Mar 1, 2010.
Credit: Reuters/ICTY around Reuters TV
THE HAGUE (Reuters) - Wartime Bosnian Serb personality Radovan Karadzic took the mount at his quarrel crimes hearing on Monday to reject shortcoming for a little of Europe"s misfortune atrocities given World War Two.
Karadzic, 64, denies the eleven charges opposite him, together with dual of genocide, for his actions during the Bosnian War of 1992-95, that pitted Serbs opposite Muslims and Croats.
Prosecutors contend Karadzic led a genocidal debate to have Bosnian Muslims "disappear from the face of the earth" and carve out a mono-ethnic state for Bosnian Serbs during a quarrel that killed an estimated 100,000 people.
"Everything that Serbs did is being treated with colour as a crime," Karadzic said, arguing in his opening matter that conflicts ensuing from the break-up of Yugoslavia were a healthy effect of the 3 groups fighting for land.
"Yugoslavia could usually be damaged up in war," he said.
He indicted Bosnian Muslims of rejecting power-sharing proposals in sequence to emanate an Islamic fundamentalist state, describing his quarrel opposite them as "just and holy."
Karadzic, who boycotted the begin of the hearing at the International Criminal Tribunal for the Former Yugoslavia last October, is fortifying himself and faces hold up in jail if convicted.
He appeared in a dim suit, with his informed shock of undone white hair, and spoke in Serbian as his comments were translated by a probity interpreter.
Often referring to himself in the third chairman as "Karadzic" as he review from a rebuilt statement, he additionally used video clips, audio recordings and quotes to at the back of up his assertions.
Karadzic will have dual days to broach his opening statement, followed by the begin of the prosecution"s case.
A key situation that prosecutors are approaching to concentration on is the murdering of some-more than 7,000 Bosnian Muslim men and boys in the encampment of Srebrenica in Jul 1995, where they credit Karadzic of orchestrating one of "humanity"s darkest chapters."
They additionally credit him of shortcoming for the 43-month encircle of Sarajevo, in that a little 10,000 people died.
Survivors showed up in The Hague on Monday to press for justice.
"We are here currently to discuss it the total universe that victims are still alive and we are watchful for the law and for justice," pronounced Melina Hadziselimovic of the Mothers of Srebrenica.
Sitting at the back of Karadzic in the courtroom was London attorney Richard Harvey, allocated by the probity to paint Karadzic last November, when he was boycotting the trial.
Mindful of the approach that the late former Serbian boss Slobodan Milosevic was means to draw towards out his quarrel crimes hearing at the Hague, the probity has told Karadzic that Harvey will take over as his counsel if he boycotts or obstructs proceedings.
A psychiatrist prior to apropos boss of the self-proclaimed Republika Srpska, Karadzic stepped down in 1996 and went in to hiding. He was prisoner in 2008 in Belgrade, whiskered and operative as an pick healer.
World for acne crude associations between acne and high intake of chocolate and chips and low intake of vegetablesMonday, August 23, 2010
David Prosser: The Tories grant plan might backfireBusiness Comment Business
Outlook The Conservatives are in risk of slipping in to an additional estate tax-style trap with their proposals for grant reform. While the Tories" plans on pensions are in majority respects unequivocally essential and, in fact, far from out of step with the Government one eye-catching suggest could finish up being seen as an additional present to the wealthy.
In further to edition a little well-meaning ideas for new grant policy, shade Work and Pensions Secretary, Theresa May, yesterday affianced to dump the order for people with in isolation pensions to modify their assets in to income by shopping an payments at age 75 at the comprehensive latest.
This will be a informed idea to any one who has complicated grant process developments over the past decade. A small but assertive debate for usually this remodel has been one of the majority unchanging thorns in the side of the stream Government so most so that ministers essentially gave them what they longed for five years ago, usually to shift their minds when it became strong that a little savers were perplexing to feat the system.
People intent to shopping an payments since they dont similar to being told what to do with their own money. Moreover, whilst these products suggest a protected income for life, they do lift risks. Not least, you"re stranded with the prevalent payments rate at the impulse you retire (a bad understanding at times such as right afar when rates are close to all-time lows). Also, if you die even usually a singular day after shopping an annuity, your assets are lost for great in unequivocally elementary terms, the maths of the marketplace discuss it you that at best, usually 50 per cent of savers get some-more income behind from an payments than the worth of the assets they handed over.
Why then, do governments demand on progressing mandatory payments squeeze (previous Conservative administrations did too)? One answer is that if there werent a little manners about how people used their grant savings, there would be zero to stop you frittering them all afar in the initial couple of years of your retirement. Thats not usually a nanny-state issue: carrying outlayed their grant funds, savers would be contingent on state benefits, that would be formidable to go through even if you forgot about the outrageous taxation breaks since to people as they set up up their nest eggs for retirement.
The second issue is that majority of those who debate loudest for an finish to mandatory payments squeeze have a dark agenda. What they unequivocally wish is to find a approach to pass on new grant assets to their heirs perfectly with the smallest reduction probable done for estate tax.
Never mind that savers get unequivocally inexhaustible taxation service on grant contributions at their top extrinsic rate of taxation and to illustrate that a estimable suit of their grant supports consists of unmerited income. They"d similar to to be means to pass on this income to heirs and to dispossess the Treasury of the income taxation that is due on payments payments.
Naturally, the monetary services industry is usually as well happy to help, and continually devises divergent schemes all in the name of product creation that are directed at exploiting any viewed weaknesses in the rules. This is because prior attempts to deliver a little coherence in to the payments system of administration have so mostly floundered.
No disbelief Ms May will disagree that the Conservative goal to throw mandatory payments squeeze is a step behind from nanny-state regulation, an try to suggest grant savers larger leisure in their retirement. That sounds unequivocally sensible, but the law is that scrapping mandatory payments squeeze is a move that would great a little minority of people those who are rich sufficient not to have to rely on grant assets in early early early early retirement and would similar to to have the leisure to try ways of minimising what taxation they compensate on this income and flitting it on to others.
Thats because this suggest could be an additional estate taxation process in the making. It is an try to interest to center category electorate that will, in fact, spin out to be utilitarian usually to a absolved few. Like those Tory estate taxation proposals, it could infer to be a profitable taxation mangle for those people who slightest need it. And, as less affluent savers have the inapplicable designation of meditative payments squeeze isnt for them either, theres a great possibility the State taxpayers, that is will have to collect up the check for bailing out savers who run out of income during retirement, even though a great cube of their grant account was paid for by taxation breaks in the initial place.
Thursday, August 19, 2010
Health caring volunteers and disasters First be prepared
The escape of healing volunteers who responded to the harmful trembler that rocked Haiti in Jan provides a roadmap for health caring providers during destiny disasters, contend the authors of a New England Journal of Medicine Perspectives square published online Feb 24.
Thousands of doctors and nurses stepped up to benefit following the quake, but majority were undone by difficulties joining with a complement that could rught away take value of their skills in the mess zone. But lead writer Raina Merchant, MD, an puncture disinfectant and Robert Wood Johnson Foundation Clinical Scholar at the University of Pennsylvania School of Medicine, says that volunteers can raise their efficacy by scheming for a mess prior to it occurs and meditative critically about their capability to respond.
Among Merchant and her colleagues" recommendations for health caring workers who instruct to proffer during tellurian disasters:
Seek grave precision in mess disinfectant to hope for for operative with singular resources underneath dangerous conditions. Short courses are offering by the American Medical Association, the American Red Cross, the Federal Emergency Management Agency and assorted surgical and mishap healing featured item associations. Register with existent proffer organizations, that mostly suggest specialized precision and allege corroboration of certification and licensure to speed deployment to needy areas. Have a transparent bargain of what operative in the mess area will require, from operative in serious temperatures with bad sanitation and risk of aroused crime and bearing to spreading diseases. Underlying healing conditions and the romantic hurdles of witnessing impassioned pang and pang of victims are additionally critical considerations. Seek warn from transport disinfectant experts who can yield recommendation and entrance to immunizations, preventative medications, and preparation on insurance from infections together with HIV, tuberculosis, Hepatitis A and mosquito-borne illnesses such as malaria and dengue.The authors additionally urge volunteers to cruise where in the mess cycle -- early response, when the bulk of volunteers lend towards to come forward, or liberation and reformation -- their skills would be majority appropriate, and to be aware of the need to await service efforts even after the worldattention has incited to alternative news.
Once evident needs are addressed, the liberation proviso begins, and there is mostly a enlarged check prior to internal health caring systems can duty even minimally, they write. Health caring volunteers are mostly less countless during this time nonetheless the need for healing benefit stays vast.
Other authors of the square embody Janet E. Leigh, BDS, DMD, a Robert Wood Johnson Health Policy Fellow, and Nicole Lurie, MD, MSPH, the Assistant Secretary for Preparedness and Response in the Department of Health and Human Services.
Wednesday, August 18, 2010
Green Tires Could Slash Oil Needs
About 7 gallons of oil is compulsory to have each of the roughlyone billion tires constructed annually, according to the RubberManufacturers Association traffic group. But the tire industrysdependence on oil could dump dramatically in the subsequent five years.
A new record being grown in a investigate partnership betweenGoodyear Tire and Rubber Company and California-based biotechnologycompany Genencor aims to discharge the oil now used to makeisoprene, a key tire ingredient, by formulating a some-more environmentallyfriendly pick utilizing plants similar to sugarine cane, corn, or switchgrass.
Were building a biological complement for creation isoprenewe call itBioIsoprene utilizing renewable tender materials, Richard J. LaDuca,Genencors Senior Director of Business Development told TechNewsDaily.�The disproportion here is that were utilizing the energy of biotechnology todesign a cell bureau for containing alkali singularity [of BioIsoprene].
How it works
Essentially, the record uses a genetically modifiedmicroorganism to perturbation the plant sugars in a approach that creates thedesired chemical.� Similar techniques have been attempted by others,but LaDuca pronounced Genecors capability to collect the containing alkali in the gasphase, rather than liquid, creates his companys routine some-more promising.
We think that the gas proviso inlet of creation BioIsoprene monomer isgoing to be the approach to broach the top virginity and the mostefficient costs, LaDuca said.
Other investigate is being finished to furnish fake and healthy rubber,both utilizing germ fermentation, and plants similar to the Russiandandelion, that produces healthy rubber in the taproot. But LaDucasays complications with those techniques have thus-far kept them frombeing cost-effective.
While investigate is still being finished to urge Genencors BioIsopreneprocess prior to the ready to be used in tires sole via theworld, LeDuca says the last tires should last as prolonged and perform thesame as tires done with petroleum-based isoprene, and could eventuallyperform even improved than the tires of today. The association estimates itwill be years prior to well see tires similar to these mass constructed for theconsumer market, but that doesnt meant poignant swell hasntalready been done toward that goal.
Weve sent Goodyear a large volume of BioIsoprene that theyvepolymerized to have a lot of fake rubber, and weve done aprototype tire, pronounced LaDuca. Its a antecedent usually to demonstratethat were not traffic with little samples at this point; the todemonstrate that the a real-world process.
Other benefits
The intensity environmental benefits of BioIsoprene aside, there areother reasons Goodyear and alternative tire manufacturers are seeking towardalternatives to petroleum-based products. LaDuca says a routine forbiologically engineering isoprene allows companies to shun dependenceon the flighty inlet of the oil market,giving them a product with a some-more fast price. A biologically basedsource of the containing alkali will additionally assistance assuage the isoprene shortageswhich have occurred in the past due to environmental causes, likehurricanes in the Gulf Coast, according to LaDuca.
When this record creates it to market, tires wouldnt be the usually products removing greener.� Isoprene is a key part in most alternative products,such as surgical gloves, alternative rubber products, and even the prohibited meltadhesives that are used to hold disposable diapers together. And whileLaDuca is happy to have Goodyear on house as a vital researchpartner, Genencor doesnt plan on keeping BioIsoprene from the othercompanies who need it.
Genencor has defended worldwide disdainful blurb rights toBioIsoprene, and plans to set up their own commander and manufacturingplants to promote the routine as the record is perfected.
Well set up the plant, well settle a long-term commercialsupply agreement with Goodyear, we think theyll be one of the mostimportant customers, pronounced LaDuca, but well additionally be negotiatingsimilar agreements with alternative companies that could be a little ofGoodyears competitors. Well be seeking to supply BioIsoprene toanyone who has a need for this kind of material.
Coolest Vehicles Youll Never Get to Ride GM Cars to Get F-16 Fighter Jet Display Technology 10 Profound Innovations AheadSunday, August 8, 2010
CANADA FX DEBT-C$ rallies for 10th day concentration on jobs interpretation
* Canadian dollar recovers to 97.47 U.S. cents * Carney"s speech makes no reference to current policy * Bonds mixed * Focus turns to Canada"s jobs data for February (Adds details) By Ka Yan Ng TORONTO, March 11 (Reuters) - The Canadian dollar finishedhigher against the greenback for a 10th straight session onThursday as it rebounded from early losses along with otherriskier assets such as equities and crude oil. The Canadian dollar ended at C$1.0243 to the U.S. dollar,or 97.63 U.S. cents, up from Wednesday"s close of C$1.0259 tothe U.S. dollar, or 97.48 U.S. cents. The currency"s early softness, which took it to a one-weeklow at 96.86 U.S. cents, followed data that showed a smallerU.S. trade deficit, which spurred choppy trading in the U.S.dollar. But the losses did not stick, and the currency rallied tothe firmer end of its recent trading range as North Americanstock markets claimed moderate gains, and the price of crudeoil, an important Canadian export, turned slightly higher. Market focus through the day was on Friday"s release ofCanada"s February jobs report. Canada is expected to have added20,000 jobs in the month, according to median forecasts in aReuters survey. The unemployment rate is seen steady at 8.3percent. [ID:nN05244644] "Commodities and equities have really stabilized. I thinkthat"s part of the reason you saw no follow-through selling(from) earlier in the day. The markets are really just on holduntil the jobs numbers tomorrow," said Shane Enright, executivedirector, foreign exchange sales at CIBC World Markets. There was little reaction in the currency after a speech byBank of Canada Governor Mark Carney to university students inOttawa. The speech contained no reference to the central bank"scurrent policy. In an audience question-and-answer session, Carneyrepeated the central bank"s conditional pledge to hold interestrates low and said there was no need for it to have the samemonetary policy as the U.S. Federal Reserve. [ID:nN11238970] BONDS MIXED Bond prices were mixed. Short-dated bonds were pressured byearly domestic data that was stronger than expected and showedthe recovery was gaining more traction than some had expected. [ID:nN1180093] Canada"s trade surplus rose more than expected in January,while fourth-quarter capacity use had its biggest jump in threeyears. Other data showed Canadian new home prices climbed againin January. All the data strengthened views that Canadianinterest rates would rise this year. Longer-term issues floated higher, alongside their U.S.counterparts, after a well-bid auction of U.S. Treasury bonds. [US/] The two-year government bond CA2YT=RR was off 2 Canadiancents to C$99.92 to yield 1.544 percent, while the 10-year bondCA10YT=RR was up 15 Canadian cents at C$101.82 to yield 3.517percent. (Reporting by Ka Yan Ng; editing by Peter Galloway)
CurrenciesThursday, August 5, 2010
Sunday, August 1, 2010
BAY STREET-Canada due for tedious is pleasing bill
* March 4 federal budget"s market impact seen limited
* Relatively strong finances appeal to global investors
* Talk of delayed corporate tax cuts, but odds low
* Long-term deficit exit strategy key
By Jeffrey Hodgson
TORONTO, Feb 28 (Reuters) - Global investors ravaged byrising sovereign risk will find welcome respite in Canada"sMarch 4 federal budget, with controlled leaks and relativelyhealthy finances making it a refreshingly low-key event formarkets.
In stark contrast to the Greek budget tragedy unfolding inEurope, Canada is expected to forecast a deficit of less than 3percent of gross domestic product, the lowest of any Group ofSeven nation.
And Finance Minister Jim Flaherty and his officials havespent weeks diligently stealing their own thunder,pre-releasing major news like mortgage rule changes andstressing there will be no significant new spending or taxmeasures.
"It doesn"t make for a great exciting story. But, guesswhat? For investors, boring is beautiful. That"s the newbeautiful," said Stewart Hall, an economist with HSBCSecurities in Toronto.
"Boring is certainly beautiful against the backdrop of whatwe"re seeing in some of the other sovereign names."
A Reuters survey found analysts expect the Conservativegovernment to forecast a deficit of C$45 billion ($43 billion)for 2010-11, down from the record C$56 billion shortfall Ottawaanticipates for the current fiscal year. [ID:nN26119942]
Analysts see the deficit shrinking further to C$27.2billion in 2011-12.
The government said in September it expects Canada"sfederal debt-to-GDP ratio will rise to 35.5 percent in March2011 from 29 percent in March 2009. While not a welcome trendfor bond investors, it"s nowhere near the triple digitdebt-to-GDP ratios of Italy and Japan.
Warren Buffett once noted that creditworthiness is likeoxygen: you don"t notice it when it"s around. With sovereigndefault fears on the rise, Canada"s superior fiscal position ispaying off handsomely for holders of its currency and bonds.
The Canadian government now pays less than the UnitedStates to borrow money for 10 years or more in local currency.And the Canadian dollar, up 15.9 percent last year against thegreenback, recently hit a two-year high against the euro.
"Canada"s generally viewed as having a reasonably soundfiscal backdrop relative to other G10 currencies. Theincremental details on the budget aren"t likely to changethat," said Dan Katzive, foreign exchange strategist at CreditSuisse in New York.
LITTLE STOCK-SPECIFIC NEWS SEEN
This year"s budget is also unlikely to contain many of thetargeted spending measures that can boost specific sectors ofthe stock market.
Shares of Montreal-based engineering firm SNC-Lavalin GroupInc (SNC.TO) have risen more than 40 percent since last year"sbudget, which contained billions in infrastructure spending.But Flaherty has pledged to let his two-year C$46 billionstimulus package wind down, providing little fodder for furtherbounces.
There is a chance that the minority government could deferplanned corporate tax cuts, which have raised the ire of theleft-leaning New Democratic Party, said Andrew Dunn, a managingpartner and with Deloitte Touche.
"I wouldn"t give much more than 50/50 odds of thathappening ... and yet it"s a relatively easy thing to do from apolicy perspective," he said.
"And if they sell it right, it actually could have a fairlymaterial impact on their ability to get their deficit down overthe next couple of years."
But he said even this would be unlikely to have asignificant stock market impact, in contrast to Flaherty"sdecision in 2006 to tax the country"s income trust sector,which wiped out billions of dollars in market capitalization.
Another potential risk for investors is that the oppositionvotes against the budget and takes down the government. Butthis is seen as unlikely given that no party commands a stronglead in the polls. [ID:nN25107702]
Analysts said that perhaps the biggest concern forinvestors is the government"s longer-term plan to return to thesurplus position that Canada enjoyed for a decade. If Ottawafails to maintain credibility on the issue, they said thiscould in time put upward pressure on bond yields.
"Most would agree that you don"t have to do this overnight.But you do have to have some sort of road map," said BobGorman, chief portfolio strategist at TD Waterhouse.
($1=$1.05 Canadian) (Editing by Rob Wilson)
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