THE United States's yawning annual budget deficit narrowed in April as government coffers brimmed with the largest monthly surplus in five years, official data shows.
The federal budget had a surplus of$US112.9 billion ($A112.39 billion) forthe month of April, astax payments surged ahead the mid-month due date for annual income tax filings for 2012, according to Treasury Department numbers released on Friday.
The surplus was almost double the$US59.1 billion surplus registered in April 2012.
Over the first seven months of the fiscal year, the US budget deficit was $US487.6 billion, 32 per cent smaller than the October-April 2012 period.
Revenues leaped 28 per cent in April froma year ago, to$US406.7 billion, helped in part by January 1 increases inpayroll and other taxes.
Expenditures fell a hefty 13 per cent to$US293.8 billion in the second month of severe "sequester" spending cuts, aimed at slashing $US85 billion through September.
"The improved budget deficit will give the Treasury more wiggle room tofinance government programs should Congress fail to raise the debt ceiling whenthe current suspension of this limit on government borrowing expires onMay 19," said Sal Guatieri of BMO Capital Markets.
Saturday 11 May 2013
Thursday 9 May 2013
Debt Equity Finance information: Closed-End Investment Fund
Debt Equity Finance information: Closed-End Investment Fund: An investment trust that issues a fixed number of securities that trade on a stock exchange or in the over-the-counter market. Assets of a c...
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Monday 6 May 2013
Bain Capital and Golden GateCapital Buys BMC for $6.9 Billion
Under the deal terms, the buyers’ group, which includes the Government of Singapore Investment Corporation and InsightVenture Partners, will pay $46.25 a share in cash.
That represents a 14 percent premium to BMC’s share price on May 11, 2012, the last business day before the company disclosed that Elliott Management had taken a big stake – now up to about 9.6 percent – and was urging a sale.After initially resisting Elliott, the two sides reached a compromise, with Elliott gaining two board seats and BMC beginning to explore a sale last fall.
A number of buyout firms emerged during the auction process overrecent months, though by last week the Bain and Golden Gate consortium took the lead.
“After a thorough review of strategic alternatives, the BMC board of directors is pleased to reach this agreement, which provides shareholders with immediate and substantial cash value, aswell as a premium to our unaffected share price,” Robert E. Beauchamp, BMC’s chairman and chief executive, said in a statement.
Jesse Cohn, the Elliott portfolio manager who led the firm’s campaign,added: “Elliott applaudsthe BMC Software boardand executive leadership for delivering this value-maximizing outcome for stockholders, which both contains a go-shopprovision and reflects what we believe is a substantial premium to BMC’s unaffected stock price.”
As part of the deal, BMCwill have 30 days to try to find higher bids.
Credit Suisse , the Royal Bank of Canada and Barclays will provide debt financing.
BMC was advised by Morgan Stanley , Bank ofAmerica Merrill Lynch and the law firm Wachtell, Lipton, Rosen& Katz. The investors received financial advice from Qatalyst Partners, the boutique bank run by Frank P. Quattrone ; Credit Suisse;RBC Capital Markets; and Barclays.
The investor group was counseled by Kirkland& Ellis and PricewaterhouseCoopers.
That represents a 14 percent premium to BMC’s share price on May 11, 2012, the last business day before the company disclosed that Elliott Management had taken a big stake – now up to about 9.6 percent – and was urging a sale.After initially resisting Elliott, the two sides reached a compromise, with Elliott gaining two board seats and BMC beginning to explore a sale last fall.
A number of buyout firms emerged during the auction process overrecent months, though by last week the Bain and Golden Gate consortium took the lead.
“After a thorough review of strategic alternatives, the BMC board of directors is pleased to reach this agreement, which provides shareholders with immediate and substantial cash value, aswell as a premium to our unaffected share price,” Robert E. Beauchamp, BMC’s chairman and chief executive, said in a statement.
Jesse Cohn, the Elliott portfolio manager who led the firm’s campaign,added: “Elliott applaudsthe BMC Software boardand executive leadership for delivering this value-maximizing outcome for stockholders, which both contains a go-shopprovision and reflects what we believe is a substantial premium to BMC’s unaffected stock price.”
As part of the deal, BMCwill have 30 days to try to find higher bids.
Credit Suisse , the Royal Bank of Canada and Barclays will provide debt financing.
BMC was advised by Morgan Stanley , Bank ofAmerica Merrill Lynch and the law firm Wachtell, Lipton, Rosen& Katz. The investors received financial advice from Qatalyst Partners, the boutique bank run by Frank P. Quattrone ; Credit Suisse;RBC Capital Markets; and Barclays.
The investor group was counseled by Kirkland& Ellis and PricewaterhouseCoopers.
Thursday 2 May 2013
European Central Bank has cut rates to a record low .
The central bank, meeting in Bratislava, cut its benchmark interest rate to 0.5 percent from 0.75 percent, which was already a record low. It was the first change in interest rates since July 2012 and the bank’s fourth cut since Mario Draghi took over as its president in November 2011.
The central bank will continue providing unlimited loans to banksat the benchmark interest rate “as long as needed” and at least until mid-2014, Mr. Draghi said at a news conference after the announcement.
Even at its new low of 0.5 percent, the European Central Bank’sbenchmark rate remainshigher than the 0.25 percent rate the FederalReserve has had in place since late 2008. On Wednesday, the Fedsaid it would maintain its stimulus campaign , buying $85 billion a month in Treasury and mortgage-backed securities. The Fed added that it would consider adjusting its efforts to spur growth and reduce unemployment in the United States.
A cut by the European Central Bank was widelyexpected after a series of economic indicators in recent weeks foreshadowing an extended downturn in the euro zone, with recession even threatening the seemingly unstoppable German economy. On Thursday, two stalwarts of corporate Germany, BMW and Siemens, warned of lower profits for 2013 because of the downturn in European markets.
The central bank will continue providing unlimited loans to banksat the benchmark interest rate “as long as needed” and at least until mid-2014, Mr. Draghi said at a news conference after the announcement.
Even at its new low of 0.5 percent, the European Central Bank’sbenchmark rate remainshigher than the 0.25 percent rate the FederalReserve has had in place since late 2008. On Wednesday, the Fedsaid it would maintain its stimulus campaign , buying $85 billion a month in Treasury and mortgage-backed securities. The Fed added that it would consider adjusting its efforts to spur growth and reduce unemployment in the United States.
A cut by the European Central Bank was widelyexpected after a series of economic indicators in recent weeks foreshadowing an extended downturn in the euro zone, with recession even threatening the seemingly unstoppable German economy. On Thursday, two stalwarts of corporate Germany, BMW and Siemens, warned of lower profits for 2013 because of the downturn in European markets.
Wednesday 1 May 2013
Tips to Prevent Credit Card Fraud
credit card fraud hasbecome a $6 billion problemfor businesses, increasing by 87 percent since 2010. As incidents of data breaches and credit card fraud continue to grow, businessesmust be more aware in protecting themselves.
To help businesses guard against such issues, Rob Bertke, senior vice president of research and development at Sage North America, offers the followingtips to businesses of all sizes to help them stay protected.
Immediately deal with any breach — It's critical to understand that even if all cautious, conservative steps are taken, and the best payment-processing securityis installed, a breach can still occur.
If it does, you must have detailed credit card sales records to refer back to as a means of retracing your steps. This will help in determining when and where the breach took placeand therefore mitigate the potential for additional losses. Furthermore, a properassessment of the initial attack may ultimately provide a trail back to the source of the data breach .
Maintain PCI Compliance — Not only is it against card brand regulations if you're not Payment Card Industry (PCI)-compliant when accepting credit or debit cards, but it's also an absolute must in today's economic climate.
Make certain your payment-processing software security is current and is PA-DSS (Payment Application Data Security Standard)-certified, and that your business receives its PCI-DSS (Payment Card Industry Data Security Standard) certification.
PCI certification provides a level of confidence and assurance that a processor has followed and passed a robust set of best practices for securing the information being processed when credit card payments are made.
Use end-to-end encryption for all sensitive data — End-to-end encryption (E2EE) essentially boils downto scrambling the data sent from one device to another. It starts with your payment capture devices, and goes allthe way to the transaction being authorized.
E2EE technology prevents the card account data from being stolen electronically and lessens the cost and impact for your business to become PCI-certified. A company's mobile payment devices, credit card terminals, software applications and online payment portals need built-in encryption functionality when transmitting customer information.
Prevent tampering — Make certain all employees tasked with the responsibility of accepting credit and debit cards from customers have a working understanding of the looks and functionality ofthe payment processing equipment they're using.
Scammers often try to tamper with a business's payment processing equipment in an effort to steal credit card information. Altered equipment usually consists of a small piece of hardware physically attached to the terminal itself.
An attentive employee who knows what to look for should be able to easily identify an extra attachment to the device or oddly functioning software.
Refrain from storing credit card numbers — To avoid one of the biggest PCI compliance risks, you shoulddo everything in your powerto not store credit card numbers. Look for a payments provider whose platform is designed so credit card information is never stored at your business site or on your business software.
Your provider should be able to process the transaction and then store your customers' card information in a secure vault in the cloud. They should provide you with an encrypted ID,
To help businesses guard against such issues, Rob Bertke, senior vice president of research and development at Sage North America, offers the followingtips to businesses of all sizes to help them stay protected.
Immediately deal with any breach — It's critical to understand that even if all cautious, conservative steps are taken, and the best payment-processing securityis installed, a breach can still occur.
If it does, you must have detailed credit card sales records to refer back to as a means of retracing your steps. This will help in determining when and where the breach took placeand therefore mitigate the potential for additional losses. Furthermore, a properassessment of the initial attack may ultimately provide a trail back to the source of the data breach .
Maintain PCI Compliance — Not only is it against card brand regulations if you're not Payment Card Industry (PCI)-compliant when accepting credit or debit cards, but it's also an absolute must in today's economic climate.
Make certain your payment-processing software security is current and is PA-DSS (Payment Application Data Security Standard)-certified, and that your business receives its PCI-DSS (Payment Card Industry Data Security Standard) certification.
PCI certification provides a level of confidence and assurance that a processor has followed and passed a robust set of best practices for securing the information being processed when credit card payments are made.
Use end-to-end encryption for all sensitive data — End-to-end encryption (E2EE) essentially boils downto scrambling the data sent from one device to another. It starts with your payment capture devices, and goes allthe way to the transaction being authorized.
E2EE technology prevents the card account data from being stolen electronically and lessens the cost and impact for your business to become PCI-certified. A company's mobile payment devices, credit card terminals, software applications and online payment portals need built-in encryption functionality when transmitting customer information.
Prevent tampering — Make certain all employees tasked with the responsibility of accepting credit and debit cards from customers have a working understanding of the looks and functionality ofthe payment processing equipment they're using.
Scammers often try to tamper with a business's payment processing equipment in an effort to steal credit card information. Altered equipment usually consists of a small piece of hardware physically attached to the terminal itself.
An attentive employee who knows what to look for should be able to easily identify an extra attachment to the device or oddly functioning software.
Refrain from storing credit card numbers — To avoid one of the biggest PCI compliance risks, you shoulddo everything in your powerto not store credit card numbers. Look for a payments provider whose platform is designed so credit card information is never stored at your business site or on your business software.
Your provider should be able to process the transaction and then store your customers' card information in a secure vault in the cloud. They should provide you with an encrypted ID,
Tuesday 30 April 2013
Risky Asset (defintion)
An investment with a return that is not guaranteed. Assets carry varying levels of risk . For example, holding a corporate bond is generally lessrisky than holding a stock . Government bonds are generally not considered risky assets. A risky asset should not be confused with a risk asset .
Sunday 28 April 2013
Apple produces stronger than expected earnings inits second quarter,
Apple reported earnings of $9.5 billion on $43.6 billion in sales. That was right on target with the$9.5 billion in profit and just barely above the$42.3 billion in sales that Wall Street expected. It was also above Apple's own expectations, which were between $9.23 and$10.23 per share on sales of $41 billion to $43 billion.
By comparison, Apple tallied up a higher $11.6 billion in profit on sales of$39.2 billion during the same quarter last year. That was fueled by iPhoneand iPad sales that were 88 percent and 151 percent better than the year before, respectively.
"We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad," Apple CEO TimCook said in a statement ."Our teams are hard at work on some amazing new hardware, software, and services, and we are very excited about the products in our pipeline."
By comparison, Apple tallied up a higher $11.6 billion in profit on sales of$39.2 billion during the same quarter last year. That was fueled by iPhoneand iPad sales that were 88 percent and 151 percent better than the year before, respectively.
"We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad," Apple CEO TimCook said in a statement ."Our teams are hard at work on some amazing new hardware, software, and services, and we are very excited about the products in our pipeline."
Saturday 27 April 2013
Risk Capital (Defination)
Investment funds allocated to speculative activity. Risk capital refers to funds used for high-risk, high-reward investments such as junior mining or emerging biotechnology stocks. Such capital can either earn spectacular returns over a period of time, or may dwindle to a fraction of the initial amount invested if several ventures prove unsuccessful. Diversification is key for successful investment of risk capital. In the context of venture capital, risk capital may also refer to funds invested in a promising start-up.The more risk averse the investor, the lower the proportion of risk capital allocated in the total portfolio should be. While young investors, because of their lengthy investment horizons, can have a very significant proportion of risk capital in their portfolios, retirees may not be comfortable with a high proportion of risk capital.
Thursday 18 April 2013
Vodafone India and ICICI Bank, have launched M-Pesa
For the majority of people in the West banking is as easy as walking to a local branch or ATM, or logging into their account from a computer. But for millions in developing countries, even having a bank accountis out of reach. In India, at least, that could be about tochange.
Vodafone India and ICICI Bank, India's largest privatebank, have launched M-Pesa, a mobile-based money transfer and payment service that was first established in Kenya in 2007. The partnership, announced in a news release April 17, claims it will give mobile-banking access to some 700 million Indian people who are currently "unbanked" -- people with no access to conventional banking services like bank branches and ATMs.
Vodafone says service will first rollout in India's eastern regions, including Kolkata and West Bengal, with 8,300 agents. That part of India is home to about 220 million people. Service will eventually be extended across the rest of the country.
The M-Pesa system -- where "M" stands for mobile and "pesa" is the Swahili word for money -- begins with real cash and an M-Pesa agent. A customer signs up, registers a personal mobile phone number and deposits money into the linked account at an agent store, which could be a mobile phone shop, a gas station ora supermarket.
To send money, the user inputs a recipient's mobile phone number, the amountof money to send and a security code for protection.To withdraw funds, the receiver visits an M-Pesa agent and requests a withdrawal through his or her mobile phone. Both thereceiver and the M-Pesa agent then receive a confirmation for withdrawal,which instructs the agent to give the customer cash. Billscan be paid and mobile talktime can also be bought through the platform.
"For millions of people in India, a mobile phone is a bank account, a front door to a micro-business or a lifeline to people in the remotest areas," said MartenPieters, Managing Director and CEO of Vodafone India.
"Research shows that M-Pesa brings real benefits to users in their daily lives, saving three hours a week of their time and around $3in money transfer costs -- a significant amount to peoplein some areas."
Greater cell phone penetration also brings greater economic benefit to local economies, often far removed from urban centers in large developingcountries. A 2006 Universityof Michigan study found that every 10% increase in cell phone penetration grows the local economy by0.6%.
In 2011, India alone added142 million new mobile phone subscriptions -- twice as many as in the whole of Africa, and more than in Europe, the Middle East and the former Soviet republics combined, according to the International Telecommunication Union (ITU) in a June 2012 report.
Between 2000 and 2011, India recorded an enormous boom in cell phone subscriptions -- growing from just 3.5 million to more than 893 million. In that same time, China saw mobile phone subscriptions increase more than ten-fold to more than 986 million subscriptions. The United States saw growth of just 87% over thesame dozen years to 290 million, says the ITU.
Vodafone India and ICICI Bank, India's largest privatebank, have launched M-Pesa, a mobile-based money transfer and payment service that was first established in Kenya in 2007. The partnership, announced in a news release April 17, claims it will give mobile-banking access to some 700 million Indian people who are currently "unbanked" -- people with no access to conventional banking services like bank branches and ATMs.
Vodafone says service will first rollout in India's eastern regions, including Kolkata and West Bengal, with 8,300 agents. That part of India is home to about 220 million people. Service will eventually be extended across the rest of the country.
The M-Pesa system -- where "M" stands for mobile and "pesa" is the Swahili word for money -- begins with real cash and an M-Pesa agent. A customer signs up, registers a personal mobile phone number and deposits money into the linked account at an agent store, which could be a mobile phone shop, a gas station ora supermarket.
To send money, the user inputs a recipient's mobile phone number, the amountof money to send and a security code for protection.To withdraw funds, the receiver visits an M-Pesa agent and requests a withdrawal through his or her mobile phone. Both thereceiver and the M-Pesa agent then receive a confirmation for withdrawal,which instructs the agent to give the customer cash. Billscan be paid and mobile talktime can also be bought through the platform.
"For millions of people in India, a mobile phone is a bank account, a front door to a micro-business or a lifeline to people in the remotest areas," said MartenPieters, Managing Director and CEO of Vodafone India.
"Research shows that M-Pesa brings real benefits to users in their daily lives, saving three hours a week of their time and around $3in money transfer costs -- a significant amount to peoplein some areas."
Greater cell phone penetration also brings greater economic benefit to local economies, often far removed from urban centers in large developingcountries. A 2006 Universityof Michigan study found that every 10% increase in cell phone penetration grows the local economy by0.6%.
In 2011, India alone added142 million new mobile phone subscriptions -- twice as many as in the whole of Africa, and more than in Europe, the Middle East and the former Soviet republics combined, according to the International Telecommunication Union (ITU) in a June 2012 report.
Between 2000 and 2011, India recorded an enormous boom in cell phone subscriptions -- growing from just 3.5 million to more than 893 million. In that same time, China saw mobile phone subscriptions increase more than ten-fold to more than 986 million subscriptions. The United States saw growth of just 87% over thesame dozen years to 290 million, says the ITU.
Wednesday 17 April 2013
Yahoo first quarter rose 36 percent to $390 million, or 35 cents a share
Yahoo is still doing better as an investment house than as anInternet company. Its first-quarter earnings beat analysts' expectations, but much of the gain was from its investments abroad.
Since Marissa Mayer left Google to lead Yahoo nine months ago, the company's stock is up more than 50 percent, buoyed less by optimism in Yahoo than WallStreet's giddiness over Alibaba, the Chinese Internet company in which Yahoo retains a 20 percent stake.
Alibaba has signaled that it is preparing for an initial public offering that analysts predict could value it at $55billion to more than $120 billion, double to five times more than Yahoo's $26.2 billion market capitalization.
"If you own Yahoo for Alibaba, you're doing just great," said Colin Gillis, an Internet analyst at BGC Partners. "But if you own it for the core business, you'vegot some speed bumps."
On Tuesday the company reported that net income in the first quarter rose 36 percent to $390 million, or 35 cents a share, from the year-ago quarter. Wall Street analysts had expected net income of 24 cents a share.
But much of that was because of Alibaba. The income contribution from Yahoo's equity interests in Alibaba and Yahoo Japan was $217.6 million, well above its own first quarter operating income of $186 million.
Meanwhile, Yahoo's revenuewas down. The company said revenue was $1.14 billion, down 7 percent from the year-ago quarter. Excluding traffic acquisition costs, revenue was flat at$1.07 billion. That news sentYahoo's stock down about 4 percent in after-hours trading, after closing at$23.79 on Tuesday.
Yahoo reported first-quarterearnings at a critical juncturefor Ms. Mayer. Investors are eager to see whether she can increase revenues, which have languished in an increasingly competitive landscape.
Since Marissa Mayer left Google to lead Yahoo nine months ago, the company's stock is up more than 50 percent, buoyed less by optimism in Yahoo than WallStreet's giddiness over Alibaba, the Chinese Internet company in which Yahoo retains a 20 percent stake.
Alibaba has signaled that it is preparing for an initial public offering that analysts predict could value it at $55billion to more than $120 billion, double to five times more than Yahoo's $26.2 billion market capitalization.
"If you own Yahoo for Alibaba, you're doing just great," said Colin Gillis, an Internet analyst at BGC Partners. "But if you own it for the core business, you'vegot some speed bumps."
On Tuesday the company reported that net income in the first quarter rose 36 percent to $390 million, or 35 cents a share, from the year-ago quarter. Wall Street analysts had expected net income of 24 cents a share.
But much of that was because of Alibaba. The income contribution from Yahoo's equity interests in Alibaba and Yahoo Japan was $217.6 million, well above its own first quarter operating income of $186 million.
Meanwhile, Yahoo's revenuewas down. The company said revenue was $1.14 billion, down 7 percent from the year-ago quarter. Excluding traffic acquisition costs, revenue was flat at$1.07 billion. That news sentYahoo's stock down about 4 percent in after-hours trading, after closing at$23.79 on Tuesday.
Yahoo reported first-quarterearnings at a critical juncturefor Ms. Mayer. Investors are eager to see whether she can increase revenues, which have languished in an increasingly competitive landscape.
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