Fidelity Investments, the nation's largest 401(k) administrator, said Thursday that the average balance of$75,900 at the end of the quarter was the highest sinceit began tracking the data in 2000.
Three months earlier, the average account balance among the 12 million accounts that Fidelity administers was $72,800.
The Standard & Poor's 500 stock index rose nearly 6% in the July-to-September period, boosting investment returns in 401(k)s. The gain helped investors recover from a nearly 3% market decline in the previous quarter.
Workers' 401(k)s are typicallyinvested in bonds as well as stocks to help reduce volatility. A broad U.S. bond market index rose about 1% in the second quarter, substantially less than the stock market. So workers with large portions of their accounts invested in stocks enjoyed better performance than those with more in bonds.
Account contributions from employees' paycheck deductions also rose in the latest quarter, as did 401(k) contributions from employers, known as company matches.
Annual contributions from workers now average about$7,900, up more than 7% from the level five years ago.Company matches average$3,420, up 19% from the third quarter of 2007.
Many companies reduced or suspended their 401(k) matches to conserve cash during the recession that began in late 2007. But as the economy has gradually improved, many employers have restored those matches,and then some.
"When employers were cutting contributions, many told us that they felt badly about it, and that restoring them would be one of the first things they wanted to do once they saw signs of improvement," said Beth McHugh, vice president of market insights at Boston-based Fidelity.
Friday, 9 November 2012
Swiss bank to lay off10,000 in restructuring
Swiss bank UBS unveiled plans on Tuesday to fire 10,000 staff and wind downits fixed income business, returning to its private banking roots as it adapts totough capital rules that make it harder to turn a profit from trading.
Zurich-based UBS will focuson wealth management anda smaller investment bank, ditching much of the trading business that ran up$50 billion in losses in the financial crisis.
Zurich-based UBS will focuson wealth management anda smaller investment bank, ditching much of the trading business that ran up$50 billion in losses in the financial crisis.
Hacked Not Us says Twitter
After many Twitter users received e-mails on Thursday morning asking them to reset the passwords to their Twitter accounts, many suspected that they, or the company, had been hacked.
Not so.
As a security policy, Twitter regularly resets passwords to accounts it believes may have been compromised and sends users an e-mail informing them that they need to create a new passwords. But on Thursdaymorning, a large number of Twitter users took to the platform to complain that they had received the e-mail and worried they had been hacked.
Twitter said it had mistakenly reset passwords for more people than it it intended on Thursday. "We unintentionally reset passwords of a larger number of accounts, beyond those that we believed to have been compromised," the companysaid in a blog post. "We apologize for any inconvenience or confusion this may have caused."
Not so.
As a security policy, Twitter regularly resets passwords to accounts it believes may have been compromised and sends users an e-mail informing them that they need to create a new passwords. But on Thursdaymorning, a large number of Twitter users took to the platform to complain that they had received the e-mail and worried they had been hacked.
Twitter said it had mistakenly reset passwords for more people than it it intended on Thursday. "We unintentionally reset passwords of a larger number of accounts, beyond those that we believed to have been compromised," the companysaid in a blog post. "We apologize for any inconvenience or confusion this may have caused."
Thursday, 8 November 2012
Germany's Angela Merkel on Wednesday warned Britain not to turn its back onEurope
Describing plans to increase the EU budget as"ludicrous", Cameron has threatened to veto any deal he thinks is not in Britain's interests and will push for a real-terms freeze.
However, German officials are exasperated by what they see as London's slide towards Europe's margins, a feeling reinforced last week after the British parliament voted to call for a real-terms cut in the EU's budget.
Before meeting Cameron, the German Chancellor told the European Parliament shecould not imagine a Europe without Britain, the world's sixth largest economy, whichrelies on the EU for half its trade.
"I believe you can be very happy on an island, but being alone in this world doesn't make you any happier," Merkel said after British politician Nigel Farage, leader of the anti-European UK Independence Party, urged her to tell Cameron that Britain should quit the EU.
However, German officials are exasperated by what they see as London's slide towards Europe's margins, a feeling reinforced last week after the British parliament voted to call for a real-terms cut in the EU's budget.
Before meeting Cameron, the German Chancellor told the European Parliament shecould not imagine a Europe without Britain, the world's sixth largest economy, whichrelies on the EU for half its trade.
"I believe you can be very happy on an island, but being alone in this world doesn't make you any happier," Merkel said after British politician Nigel Farage, leader of the anti-European UK Independence Party, urged her to tell Cameron that Britain should quit the EU.
Priceline.com to acquire travel site Kayak for US$1.8-billion
Priceline.com Inc., the most valuable online-travel agency, has agreed to buy Kayak Software Corp. for US$1.8-billion in cash and stock to expand its Web-based travel services.
Kayak shareholders will receive US$40 a share, the companies said in a statement. That price represents a 29% premiumover Kayak’s closing price of US$31.04 in New York today, and it includes about US$500-million in cash as well as US$1.3-billion in equity and assumed stock options.
Priceline has been using acquisitions to add customers as it works to grow sales and fend off competition in a sluggish economy. Kayak, which raised US$91-million in an initial public offering in July, lets travelers compareprices and make reservations for hotels, flights, cars and vacations.
Kayak shareholders will receive US$40 a share, the companies said in a statement. That price represents a 29% premiumover Kayak’s closing price of US$31.04 in New York today, and it includes about US$500-million in cash as well as US$1.3-billion in equity and assumed stock options.
Priceline has been using acquisitions to add customers as it works to grow sales and fend off competition in a sluggish economy. Kayak, which raised US$91-million in an initial public offering in July, lets travelers compareprices and make reservations for hotels, flights, cars and vacations.
Galaxy S3 world best selling smartphone
Galaxy S3 became the world's best-selling smartphone model last quarter, pushing aside Apple Inc's iPhone, which has dominated the chart for more than two years, research firm Strategy Analytics said on Thursday.
Strategy Analytics estimated Samsung sold 18 million S3 models in the third quarter, compared with iPhone 4S sales of 16.2 million.
Strong sales of the flagship Galaxy S3 - which comes with a large 4.8 inch touchscreen - helped Samsung post a record $7.3 billion operating profit in theJuly-September quarter.
"Samsung's Galaxy S3 has proven wildly popular with consumers and operators across North America, Europe and Asia," said analyst Neil Mawston, adding the new iPhone 5 would likely reclaim the top spot for Apple in the currentquarter
Strategy Analytics estimated Samsung sold 18 million S3 models in the third quarter, compared with iPhone 4S sales of 16.2 million.
Strong sales of the flagship Galaxy S3 - which comes with a large 4.8 inch touchscreen - helped Samsung post a record $7.3 billion operating profit in theJuly-September quarter.
"Samsung's Galaxy S3 has proven wildly popular with consumers and operators across North America, Europe and Asia," said analyst Neil Mawston, adding the new iPhone 5 would likely reclaim the top spot for Apple in the currentquarter
French government offers €20bn tax boost for businesses
France's president, François Hollande , sought to shrug off his business-bashing reputation on Tuesday with a€20bn-a-year (£16bn) package of tax credits and other pro-industry measures.
The prime minister, Jean-Marc Ayrault, surprisedmany by announcing that the government would accept much of the recommendations of a reportby Louis Gallois, the former EADS boss, on making the French economy more competitive.
"France is not condemned tothe spiral of decline. But we need a jolt at a national levelto regain control of our destiny," Ayrault said. "This is about giving our companies room to manoeuvre."
Firms will be offered tax credits worth up to €10bn next year, rising to €20bn by2015, to be financed by an increase in VAT and €10bn in public spending cuts, as yet unspecified. That was lessthan the €30bn-a-year cut inpayroll taxes that Gallois demanded, but far more than many analysts expected. The rebates will be proportionate to the size of a company's payroll, up toa maximum of two-and-a-half times the minimum wage, in an attempt to support jobs.
Amid rising concern about France's global competitiveness, Hollande is keen to show that despite implementing a 75% top rateof income tax on the super-rich, he is on the side of business. Fabrice Montagne, of Barclays, said the announcement would"improve sentiment vis-a-vis the government's economic policy, which will be welcomed by the president as approval rates are at significantly low levels".
The International Monetary Fund said in its annual report on the French economy, published on Monday, that without radical reform France could slip behind Spain and Italy, which have been hobbled by lack of competitiveness against the mighty German economy.
The prime minister, Jean-Marc Ayrault, surprisedmany by announcing that the government would accept much of the recommendations of a reportby Louis Gallois, the former EADS boss, on making the French economy more competitive.
"France is not condemned tothe spiral of decline. But we need a jolt at a national levelto regain control of our destiny," Ayrault said. "This is about giving our companies room to manoeuvre."
Firms will be offered tax credits worth up to €10bn next year, rising to €20bn by2015, to be financed by an increase in VAT and €10bn in public spending cuts, as yet unspecified. That was lessthan the €30bn-a-year cut inpayroll taxes that Gallois demanded, but far more than many analysts expected. The rebates will be proportionate to the size of a company's payroll, up toa maximum of two-and-a-half times the minimum wage, in an attempt to support jobs.
Amid rising concern about France's global competitiveness, Hollande is keen to show that despite implementing a 75% top rateof income tax on the super-rich, he is on the side of business. Fabrice Montagne, of Barclays, said the announcement would"improve sentiment vis-a-vis the government's economic policy, which will be welcomed by the president as approval rates are at significantly low levels".
The International Monetary Fund said in its annual report on the French economy, published on Monday, that without radical reform France could slip behind Spain and Italy, which have been hobbled by lack of competitiveness against the mighty German economy.
Austerity cuts passed by Greece lawmakers
The austerity package aimed at securing the next round of bailout funds was passed with the support of 153 MPs in the 300-member parliament.
The 13.5bn-euro ($17.3bn; £10.5bn) bill includes tax rises and pension cuts.
Earlier, riot police fired tear gas towards protesters when they were attacked with petrol bombs in Athens.
Prime Minister Antonis Samaras warned before the vote late on Wednesday that without the bailout Greece would run out of money thismonth and face"catastrophe".
Many of these measures are fair and should have been taken years ago, without anyone asking us to”
Antonis Samaras
Greek PM
The austerity package - Greece's fourth in three years - is meant to close the nation's budget deficit, lower its huge debt burden and make its economy more competitive.
MPs must now pass a revisedbudget on Sunday before eurozone finance ministers meet next week to approve 31.5bn euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF) that Greece needs to avoid imminent bankruptcy.
The 13.5bn-euro ($17.3bn; £10.5bn) bill includes tax rises and pension cuts.
Earlier, riot police fired tear gas towards protesters when they were attacked with petrol bombs in Athens.
Prime Minister Antonis Samaras warned before the vote late on Wednesday that without the bailout Greece would run out of money thismonth and face"catastrophe".
Many of these measures are fair and should have been taken years ago, without anyone asking us to”
Antonis Samaras
Greek PM
The austerity package - Greece's fourth in three years - is meant to close the nation's budget deficit, lower its huge debt burden and make its economy more competitive.
MPs must now pass a revisedbudget on Sunday before eurozone finance ministers meet next week to approve 31.5bn euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF) that Greece needs to avoid imminent bankruptcy.
Wednesday, 7 November 2012
$775 million lawsuit over false fuel economy claims . Hyundai is facing.
A U.S. lawsuit has been filed againstHyundai Motor Co ( 005380.KS ) and affiliate Kia Motors Corp ( 000270.KS ), seeking $775 million in damages in one of the biggest known actions against the automakers since they admitted overstating the fuel economy of some their vehicles.
The South Korea carmakers conceded on Friday that they had overstated the fuel efficiency ratings on more than 1 million recently sold vehicles in the United States and Canada, and agreed to compensate owners for the additional fuel costs.
The lawsuit, which seeks class-action status, was filed in the U.S. District Court for Central California on behalf of 23 Hyundai and Kia car owners and challenges the automakers' compensation plan.
Under the plan, customers will receive a debit card that will reimburse them for the difference in fuel economy, and an extra 15 percent to the amount will be added toacknowledge the inconvenience.
The lawsuit, which like a separate one filed in the Southern District of Ohio this week, is seeking further compensation for the reduced value of their vehicles.
Hyundai Motor was also sued in July by public interest group Consumer Watchdog for allegedly misleading consumers sensitive to high gas prices that its popular 2011 and 2012 Elantra model is more fuel efficient than it actually is.
A Hyundai Motor spokesmandeclined to comment on the lawsuits.
Moody's Investors Service has estimated that the automakers' compensation plan for fuel costs will cost them $100 million a year until the cars are scrapped but has not estimated potential legal costs.
The South Korea carmakers conceded on Friday that they had overstated the fuel efficiency ratings on more than 1 million recently sold vehicles in the United States and Canada, and agreed to compensate owners for the additional fuel costs.
The lawsuit, which seeks class-action status, was filed in the U.S. District Court for Central California on behalf of 23 Hyundai and Kia car owners and challenges the automakers' compensation plan.
Under the plan, customers will receive a debit card that will reimburse them for the difference in fuel economy, and an extra 15 percent to the amount will be added toacknowledge the inconvenience.
The lawsuit, which like a separate one filed in the Southern District of Ohio this week, is seeking further compensation for the reduced value of their vehicles.
Hyundai Motor was also sued in July by public interest group Consumer Watchdog for allegedly misleading consumers sensitive to high gas prices that its popular 2011 and 2012 Elantra model is more fuel efficient than it actually is.
A Hyundai Motor spokesmandeclined to comment on the lawsuits.
Moody's Investors Service has estimated that the automakers' compensation plan for fuel costs will cost them $100 million a year until the cars are scrapped but has not estimated potential legal costs.
Moody's Investors Service has assigned stable outlook on Kenya government for in issuing debt in local and foreign currency.
Rating agency Moody's Investors Service has assigned stable outlook on Kenya government for in issuing debt in local and foreign currency.
The rating comes against Kenya’s intention to issue a sovereign bond in 2013 andcontinued domestic borrowing.
Rating Kenya B1, the agencysaid it reflected the resilience of the Kenyan economy, structural and institutional reforms that would reduce political risks.
But the high debt levels and vulnerability to a varietyof political, external and security risks moderated theoutlook.
“The first key factor underpinning Moody's assignment of a B1 rating to Kenya is the country's demonstrated economic resilience in the face of multiple shocks in recent years,” said Moody’s in its report released yesterday.
It added that the “resilienceis driven by ongoing structural changes involvingeconomic diversification, the rapid adoption of communications technology and improvements in infrastructure.”
But it noted that “Kenya's economic resilience is challenged by factors such as the country's low GDP per capita on a purchasing power parity basis of $1,718,and the moderate size of its economy, with a nominal GDP of $34 billion in 2011.”
Moody's would upgrade Kenya's ratings in the event of a significant improvement in the country's institutional strength as a result of successful implementation ofthe new constitution.
Further progress on economic diversification, with particular emphasis on export growth through the development of its newly discovered oil fields, would also positively impact Kenya's ratings
The rating comes against Kenya’s intention to issue a sovereign bond in 2013 andcontinued domestic borrowing.
Rating Kenya B1, the agencysaid it reflected the resilience of the Kenyan economy, structural and institutional reforms that would reduce political risks.
But the high debt levels and vulnerability to a varietyof political, external and security risks moderated theoutlook.
“The first key factor underpinning Moody's assignment of a B1 rating to Kenya is the country's demonstrated economic resilience in the face of multiple shocks in recent years,” said Moody’s in its report released yesterday.
It added that the “resilienceis driven by ongoing structural changes involvingeconomic diversification, the rapid adoption of communications technology and improvements in infrastructure.”
But it noted that “Kenya's economic resilience is challenged by factors such as the country's low GDP per capita on a purchasing power parity basis of $1,718,and the moderate size of its economy, with a nominal GDP of $34 billion in 2011.”
Moody's would upgrade Kenya's ratings in the event of a significant improvement in the country's institutional strength as a result of successful implementation ofthe new constitution.
Further progress on economic diversification, with particular emphasis on export growth through the development of its newly discovered oil fields, would also positively impact Kenya's ratings
Subscribe to:
Posts (Atom)