The Institute for Supply Management said its services index rose to 56.8 last month from a revised 53.0 in December. It was the highest level since February 2011.

Economists had expected the index to hold steady at 53.0, according to a Reuters survey. A reading above 50 indicates expansion in the sector.

U.S. stocks rose 1 percent heading into the data, while Treasuries yields hit session highs following its release and the euro extended losses against the dollar.

The new orders index climbed to 59.4 from 54.6, though the prices paid measure edged up to 63.5 from 62.0

Employment in the vast services sector was robust, rising to the highest level in six years at 57.4 from 49.8 and adding to signals of improvement in the labor market. The sector accounts for more than two-thirds of economic activity in the United States Business Card Holders.

The overall U.S. unemployment rate fell to close to a three-year low in January, separate data showed earlier on Friday, as the economy created jobs at the fastest pace in nine months.

Anticipation for a third round of stimulus, or quantitative easing, from the Federal Reserve had picked up after the Fed left the door open to more stimulus at its most recent meeting, the jobs report muted those expectations.

Economic growth is expected to back off in early 2012 from the 2.8 percent rate of growth in the fourth quarter, though there are signs of underlying momentum.

Global service sector data on Friday was more mixed and showed Europe’s economy probably picked up last month, while growth in Chinese service firms slowed sharply.

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The first estimate for the month from Eurostat, the EU’s statistics office, was in line with forecasts and the euro was little changed around the $1.3125 mark.

Inflation has been running above the European Central Bank’s target of “just below 2 percent” since December 2010.

Even so, the eurozone’s central bank cut its main benchmark rate in November and December to a record low of 1 percent as it tries to shore up the foundering eurozone economy.

Further interest rate reductions from the bank, which is led by Mario Draghi, are widely anticipated, especially if inflation falls back further as last year’s energy and food price rises drop out of the annual comparison.

The bank announces its latest interest rate decision on Feb. 9 and the markets are pricing in a second straight month of no change.

One reason inflation is expected to moderate further toward target is the state of the eurozone economy. Many economists think the 17-nation bloc will slide back into recession this year despite some relatively optimistic signals in a raft of manufacturing surveys Wednesday. And with unemployment over 10 percent, the pressure coming from wage demands is likely to remain modest.

“The region is still in a precarious position and is unlikely to avoid falling back into another recession this year,” said Ben May, European economist at Capital Economics.

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Output of automobiles, cell phones and semiconductors drove the gains last month after production fell 2.7 percent in November. Manufacturers project further production increases in January and February, the Ministry of Economy, Trade and Industry said Tuesday.

But Japan’s unemployment rate edged up to 4.6 percent and Junko Nishioka, economist at RBS Japan Securities, cautioned that the economic outlook was “mixed.”

While she was heartened by the 0.5 percent uptick in family spending, Nishioka said prospects for Japan’s vital manufacturing sector remained tentative amid weak export demand short term personal loans.

“The pace of recovery will be slow,” she said. “So far, we’re seeing some recovery in the auto sector and electronic components, but still it’s still not enough to compensate for the gap recorded after the March disaster and the Thai flooding.”

The factory data showed that shipments grew 4.5 percent and inventories fell 2.9 percent, both healthy indicators. Broadly speaking, production was led by strength in the electronics, automobile and general machinery sectors, the report showed.

Looking ahead, manufacturers predicted that industrial output would rise 2.5 percent in January and another 1.2 percent in February, according to a METI survey.

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Yields on the securities set three consecutive records after Fed Chairman Ben S. Bernanke said Jan. 25 that the central bank is considering additional asset purchases to boost growth. U.S. government debt rose for a third day yesterday as a report showed the U.S. economy grew at a slower-than-forecast 2.8% annual pace in the fourth quarter. The Labor Department is expected to report on Feb. 3 that unemployment remained at 8.5 percent this month.

]]> http://businessnewsweblog.com/treasury-five-year-yield-falls-to-record-low-on-fed-strategy-bloomberg/feed/ http://businessnewsweblog.com/cass-reports-record-profit/ http://businessnewsweblog.com/cass-reports-record-profit/#comments Sat, 28 Jan 2012 00:52:00 +0000 DoctorBusiness http://businessnewsweblog.com/cass-reports-record-profit/ Cass Informations Systems reported fourth-quarter 2011 net income of $5.5 million, or 53 cents per share, compared with $5.1 milllion, or 48 cents per share, in the corresponding period of 2010.

For the year, Cass–a Bridgeton-based provider of invoice payment and information services–reported record net income of $23 million, or $2.21 per share, compared with $20.3 million, or $1.95 per share, in 2010.

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Across North Africa, where uprisings ended the autocratic rule of three men, economic growth has stalled, stock markets have slumped and Egyptian bond yields are at a record, with the nine-month treasury bill at 15.802 percent. Foreign direct investment in the Middle East and North Africa last year was the lowest since 2005.

Failure to lure investments threatens to hinder the transition to democratic rule and may spark more deadly protests, while energy-rich states, such as Saudi Arabia, may struggle to diversify their economies and cut the world

Casino lobbyist Mike Winter told the House Veterans Committee on Tuesday that the proposal amounts to “a bottom-line hit of $53 million for our companies” each year and could prompt cuts in marketing, capital projects and staffing at the state’s 12 casinos.

Legislators said they’re open to compromise but made clear that they’re adamant about finding a dedicated source of money to operate the state’s seven nursing homes for veterans and possibly, build a new home to accommodate a mounting waiting list.

“Our veterans are out of money in 2013,” said Rep. Charlie Davis, R-Webbb City. “If something doesn’t happen, where are they going to go?”

The Missouri Veterans Commission’s $80 million budget is funded roughly 40 percent from federal money, 35 percent from charges paid by residents of veterans homes and 25 percent by the state.

In recent years, as tax collections have lagged, the state has reduced the general revenue it puts into the veterans commission’s budget, from nearly $31 million in 2009 to $18.6 million this year.

The state now wants to tap the veterans commission’s surplus to help pay operating expenses at the homes, which include one in Bellefontaine Neighbors in St. Louis County.

But that trust fund was designed to cover repair bills when a boiler breaks at a veterans home, as well as the state’s share of construction costs for any new homes. The fund also pays operating costs at the state’s six veterans cemeteries and grants for local programs that help veterans sign up for federal benefits.

While the trust fund now stands at $17 million, it will run dry by June 2013 if it is used at the projected rate of spending, Larry Kay, the commission’s executive director told the House committee on Tuesday.

Kay said the veterans commission needs a funding source that provides at least $35 million a year “just to stay even.”

Nixon’s budget proposal, which he released last week, would pump about $50 million a year into the veterans commission’s budget through a $1 fee increase for every gambler who goes through the casino turnstiles.

The current entrance fee is $2, with half going to the state and half to the home-dock city or county. Last year the veterans trust fund got $6.5 million under a law that divvies up the state’s share of those proceeds.

Winter, who lobbies for the Missouri Gaming Association, noted that casinos also pay a tax equaling 21 percent of their adjusted gross revenue, with most of that money going toward elementary and secondary education.

Combining the tax and the entrance fee, Missouri’s effective tax rate is about 27 percent for casinos now, which he portrayed as high compared to states such as Nevada, which he said charges only 6.75 percent.

However, the Missouri Gaming Commission’s annual report showed Missouri is competitive with most nearby states.

At 27.18 percent, Missouri’s effective tax rate is lower than Illinois (33.92 percent) and Indiana (31.31 percent) but higher than Kansas (25.08 percent), Iowa (22.33 percent) and Mississippi (11.94 percent), according to the latest report.

Legislators pointed out that casinos could pass any entrance fee increase on to their patrons. But Winter said they have no plans to do so. They absorb the current $2 fee.

The gambling industry got some backing from the Missouri Chamber of Commerce & Industry, which said veterans homes were a statewide responsibility that should not be borne by “a single sector.”

But Dewey Riehn, who represents the Veterans of Foreign Wars, said a higher admission fee wouldn’t break casinos, which pulled in $1.8 billion last year.

“If they think they can convince me that a $1 entry fee will cause them to close boats, that’s ridiculous,” Riehn said.

Missouri has the 14th largest population of veterans, according to federal statistics.

In addition to St. Louis County, the state operates veterans homes in Cameron, Cape Girardeau, Mexico, Mt. Vernon, St. James and Warrensburg.

The state’s 1,350 beds are 99 percent full; there are 1,691 people on the waiting list.

In addition to a higher casino entrance fee, legislators are considering asking state voters to pass a constitutional amendment establishing a special Missouri Lottery ticket, with proceeds earmarked for veterans programs.

The sponsor, Rep. Sheila Solon, R-Blue Springs, said a dedicated lottery ticket would not provide a “total fix” but had helped pump money into veterans programs in Illinois, Iowa, Kansas and Texas.

“We need to take care of our veterans,” said Solon, who also sponsors the casino fee increase. “These brave heroes have defended us.”

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Chavez said Venezuela will negotiate credit with the Brazilian Development Bank to buy up to 20 Embraer jets from Brazil.

Chavez thanked Brazilian President Dilma Rousseff “for the credit they’re going to give us.” He said the estimated cost of 20 jets would be $814 million.

The Venezuelan government had said earlier this month that Chavez approved plans to buy six Embraer jets. But during Chavez’s Sunday television and radio program, Oil Minister Rafael Ramirez laid out the options of buying either 10 or 20 Embraer jets.

“It’s enough to see Venezuela’s location on the map to conclude on the pressing need for us to have a very powerful airline,” Chavez said.

Chavez’s government has subsidized Conviasa since its launch in 2004. The president on Sunday did not provide information about how much the government has spent on the airline in recent years instant payday loan.

According to Conviasa’s website, it currently has a fleet of 18 planes. In addition to domestic routes, Conviasa has international flights to cities including Buenos Aires, Argentina, and Damascus, Syria, among others.

Chavez also said Venezuela will buy four used Airbus 340-500 jets from an airline in the United Arab Emirates at a cost of about $60 million per plane.

Bolivian President Evo Morales, a Chavez ally, has announced similar plans to expand his country’s state airline, Boliviana de Aviacion, or BoA.

Morales last month proposed to buy six Embraer 190 jets during a meeting with Rousseff in Caracas.

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Kirkuk’s police commander Brig. Gen. Sarhad Qadir says the officer was unharmed in Saturday’s attack in the predominantly Sunni town of Hawija, a former insurgent stronghold located 150 miles (240 kilometers) north of Baghdad.

Suspected Sunni insurgents have frequently targeted Iraqi security forces to undermine the confidence in the Shiite-dominated government and its efforts to protect people from violence without American backup payday loans in one hour.

Attacks have surged amid an escalating political crisis in Iraq. At least 160 people have been killed since the beginning of the year, raising fears of civil war a month after U.S. soldiers left.

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