Archive for January, 2012

World Finance Unveils New Website

Friday, January 27th, 2012

LONDON, ENGLAND, Jan 24, 2012 (MARKETWIRE via COMTEX) –
Building on a growing online readership, World Finance has unveiled
a redesign to the magazine’s website, at
www.worldfinance.com .

Utilising the creative talents of World News Media’s digital arm
(found at
www.wnmedia.com ), the new website contains many new
features, and presents a user-friendly interface to allow
straightforward navigation of one of the most widely-recognised and
respected financial publications available.

Offering industry and expert comment pieces, market reports, and a
vast collection of insights across a variety of economies, the new
site lives up to the magazine’s reputation for excellence.

Further, the magazine’s television site has been refreshed, with all
videos on
www.worldfinance.tv now available to stream and watch on
iPhone, iPad, and Android devices.

Commenting on the new site, Alexander Redcliffe noted, “This is a
very important time in the history of economic and financial
reporting, and I’m excited to be opening another chapter in World
Finance’s rich history.

“As well as offering our readership an industry-defining mobile
outlet, the website reflects our determination to continue to inspire
those interested in the very best in business and economic
commentary.

“With our dedicated iPad application in the early stages of
production, 2012 promises to be a very exciting time for the World
Finance readership.”

World News Media is a leading publisher of quality financial and
business magazines, enjoying a global distribution network that
includes subscriber lists of the most prominent and senior
decision-makers around the world, as well as comprehensive airport,
hotel and conference site distribution.

Contacts:
World Finance
Michael McCaw
Editorial Department
+44 (0)20 7553 4156
michael@worldfinance.com

SOURCE: World Finance

mailto:michael@worldfinance.com

Copyright 2012 Marketwire, Inc., All rights reserved.

Czech mortgage market jumps in 2011

Thursday, January 26th, 2012

PRAGUE Jan 25 (Reuters) – The number of mortgages
provided by Czech banks rose by 40 percent last year from 2010,
data showed on Wednesday, confounding fears that credit in
emerging Europe would dry up due to the crisis in the
neighbouring euro zone.

Banks lent more than 119 million crowns($6.09 million) in
71,088 individual loans, the data from the Regional Development
Ministry showed, as interest rates charged on mortgages
gradually declined through the year.

Low official interest rates in the central European country,
coupled with strong competition in the sector dominated by
well-capitalised banks, has kept borrowing relatively cheap.

The average mortgage rate was 3.65 percent in November last
year and the rate has been gradually declining from 4.28 percent
seen in April, a consultancy Hypoindex data showed.

The Czech banking association said last week lending to
households would continue to lead lending growth this year.

Main Czech lenders are units of euro zone banks including
Belgiums KBC, Austrias Erste Bank and Frances
Societe Generale.

There have been fears that credit would dry up in emerging
Europe as west European parent banks withdrew liquidity from
local banks to improve their own capital buffers.
($1 = 19.5243 Czech crowns)

(Reporting by Jana Mlcochova; editing by Anna Willard)

Japan’s Finance Ministry Cuts View on Regional Economies

Thursday, January 26th, 2012

Japan’s Finance Ministry Cuts View on Regional Economies
January 25, 2012, 1:52 AM EST

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  • Japan at ‘Significant Risk’ If Debt Not Addressed, Azumi Says

By Mayumi Otsuma

Jan. 25 (Bloomberg) — Japan’s Finance Ministry lowered its evaluation of the country’s regional economies for the first time in nine months as the yen’s advance to a postwar high against the dollar weighed on growth.

The economies “are in a severe state, though they are improving at a moderate pace,” the ministry said in a quarterly report released today in Tokyo. It downgraded its assessment for five of 11 areas it tracks including Tokai, home of Toyota Motor Corp. It maintained its view in five and became more optimistic in its evaluation of Okinawa, the nation’s southernmost island.

The yen’s appreciation has been one factor in causing regional economies to slow to a “standstill,” Finance Minister Jun Azumi said at the meeting of the ministry’s regional bureau chiefs in Tokyo today. Japan’s currency rose to a postwar high of 75.35 in October, an appreciation that, coupled with weaker demand, caused Japan to post its first annual trade deficit in 31 years in 2011.

As for the outlook, the ministry said foreign exchange rates and overseas economies may threaten regional economies.

–Editors: Lily Nonomiya, Iain Wilson

To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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READER DISCUSSION

Mortgage Application Volumes in U.S. Fall 5% Last Week

Wednesday, January 25th, 2012

According to the Mortgage Bankers Associations Weekly Mortgage Applications Survey for the week ending January 20, mortgage applications decreased 5.0 percent from one week earlier. The results include an adjustment to account for the Martin Luther King holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 5.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13.8 percent compared with the previous week. The Refinance Index decreased 5.2 percent from the previous week. The seasonally adjusted Purchase Index decreased 5.4 percent from one week earlier. The unadjusted Purchase Index decreased 9.7 percent compared with the previous week and was 6.5 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is up 4.12 percent. The four week moving average is up 0.47 percent for the seasonally adjusted Purchase Index, while this average is up 4.85 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 81.3 percent of total applications from 82.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.3 percent from 5.6 percent of total applications from the previous week.

In December 2011, among refinance borrowers, 56.6 percent of applications were for fixed-rate 30-year loans, 24.3 percent for 15-year fixed loans, and 5.3 percent for ARMs. The share of refinance applications for other fixed-rate mortgages with amortization schedules other than 15 and 30-year terms was 13.8 percent of all refinance applications. The share for 30-year fixed increased from the previous month while the 15-year fixed, ARM and the other fixed category shares decreased from last month.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.11 percent from 4.06 percent, with points decreasing to 0.47 from 0.48 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.39 percent from 4.40 percent, with points increasing to 0.40 from 0.37 (including the origination fee) for 80 percent LTV ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.97 percent from 3.91 percent, with points decreasing to 0.57 from 0.59 (including the origination fee) for 80 percent LTV ratio loans. The effective rate also increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.40 percent from 3.33 percent, with points increasing to 0.40 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate also increased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.91 percent from 2.90 percent, with points decreasing to 0.41 from 0.45 (including the origination fee) for 80 percent LTV ratio loans. The effective rate also increased from last week.

The Global Search for Education: Block Building

Wednesday, January 25th, 2012


We have implemented very high academic standards that are internationally competitive

– Michael Block

The co-founders of BASIS Schools, Michael and Olga Block, aimed to offer the type of education students receive in the top performing education systems around the world, the type of education that would help American students compete in the global economy.

Ten years after BASIS Schools opened its first campus in Tucson, Arizona, the school topped the national rankings, earning the #1 spot on Newsweeks list of Americas Best High Schools, and was named a gold medal school by US News World Report. In addition to BASIS Tucson, today there are a total of 6 operating BASIS charter schools, including BASIS Scottsdale (2003), BASIS Oro Valley (2010), BASIS Chandler (2011), BASIS Peoria (2011), and BASIS Flagstaff (2011). There have been more awards and there are more schools on the way, including BASIS Phoenix (2012), BASIS Tucson North (2012), and BASIS DC (TBA).

What can the rest of the world learn from the BASIS Schools model?

I had the pleasure of chatting with Michael Block, Co-CEO of BASIS Educational Group. Dr. Block received his BA, MA, and PhD in Economics from Stanford University. Prior to BASIS, he was a Professor of Economics, Professor of Law and Director of the Office of Economic Education at the University of Arizona.

Can the BASIS Schools model be replicated across the nation?

We are expanding our model and opening BASIS schools in more locations. We have about 4,000 students attending six BASIS schools this year. Next year our programs may reach approximately 6,000 students. This is still very limited reach when considering the millions of students receiving mediocre education across the US. The bigger issue might be what is there to learn from the BASIS model? There are three points I think can be transferred in some manner.

First, we have implemented very high academic standards that are internationally competitive and higher than any American states requirements. We also require students to demonstrate mastery of those standards before they can progress to the next grade. In the US, not only are standards abysmally low, but the tests used to examine students mastery of the standards are often poorly designed and unrelated to the content taught in school. Systems used around the world, such as the Cambridge International Exams, the College Boards Advanced Placement exams, the Program for International Student Assessment, and others, can assess mastery of high-level content. That is something I think we do well at BASIS – we teach to very high standards and then assess our students progress toward reaching those standards using internationally recognized assessments.

The second point is much more controversial. At BASIS we focus first and foremost on recruiting, hiring, and retaining teachers who are experts in the subject they teach. Whether or not the individual is certified to teach by the government or graduated from a school of education – which, in the US, is not often the most distinguished academic institution – is of secondary importance. We believe it is critical that teachers possess a thorough knowledge of the material they present to their students and we believe it is more effective for subject experts to learn the craft of teaching than for pedagogical experts to learn the subject content they may be lacking. At BASIS, we have teachers in our classrooms starting in the Lower School grades that are subject experts; many possess masters and doctoral degrees.

Finally, Americans seem to have given up on teaching rigorous content in middle school. BASIS demonstrates that you can teach serious subject content in these grade levels. Let me give you an example. We visited one of the great schools in America, Thomas Jefferson High School for Science and Technology in the suburbs of Virginia, and were incredibly impressed with the level of education the school imparts on its students. Thomas Jefferson utilizes a selective admissions process to enroll students who are prepared for their rigorous curriculum, but at BASIS we offer a similarly rigorous education to all students who wish to enroll. We are only able to do this because of our accelerated middle school curriculum. By starting at a modest 5th grade level and requiring students to learn more than a years worth of standards every year, we prepare students to take Honors and AP courses beginning in 9th grade and post-AP courses in 11th or 12th grade, just like their peers at Thomas Jefferson.


At BASIS, all students complete pre-calculus and take AP-level science courses in the 9th grade — Michael Block

Are the BASIS schools for highly motivated students in certain subject areas only?

No, the BASIS education is not focused on certain subject areas. We offer an accelerated program in all core subjects; however, in contemporary America it seems schools that provide high-quality math and science education are pigeonholed. At BASIS, all students complete pre-calculus and take AP-level science courses in the 9th grade; as a result, BASIS is sometimes considered a math and science school. But while our students do outpace their peers in math and science, they also complete a minimum of one AP English and three AP history courses by the end of 11th grade, engage in six years of foreign language, take a college-level economics course in 8th grade, and participate in PE and fine arts classes throughout their academic careers. The BASIS education is much like the gymnasiums in central Europe; we offer a high quality education in all of the liberal arts.

Is the school only for highly motivated students?

Students dont have to be gifted to excel in the BASIS program, but they do have to put in effort. We work very hard to create a culture of academic excellence in our schools. We hire educators who can convey passion for their subject in a way that teaches students that learning is exciting. As older students build a sense of personal responsibility for their education, they become models for younger students and create a culture of positive peer pressure. This culture motivates students to excel in their academic exploration and teaches them that success is the function of hard work.

What is your process for selecting a great teacher?

Finding talent is tough. We try to have a very broad base of candidates from which we select our teachers and often search worldwide to fill math and science positions. Our interviews are conducted first by veteran BASIS teachers and then by the Head of School. The candidates then participate in demonstration lessons – in which they teach current BASIS students for two class periods – which I think is unusual in public schools. This allows us to determine whether the candidate is capable of conveying advanced concepts to young students. We have the most senior staff members at BASIS do the final round of interviews before making a decision.

After our teachers are hired, we have a summer training session which all new teachers and many experienced teachers attend. The training session exposes new teachers to the BASIS philosophy and focuses on the teaching techniques used in many of our classrooms. Finally, we try to mentor teachers as they begin their careers at BASIS. We spend a good deal of time with them. The process of finding and developing teaching talent is difficult and of course we make our share of mistakes.


We offer a high quality education in all of the liberal arts — Michael Block

Why do we do so poorly in the PISA test?

PISA tests what an education system teaches its 15-year-old students, and in the United States we dont teach math and science well in middle and high school. Many 10th graders in the US have not been exposed to the concepts of an Algebra 2 course and in a many states students can graduate without taking Physics. I think that is inexcusable.

I also believe the US education system focuses too much attention on inputs like teacher certification, class size, student-teacher ratio, length of the school day and school year, the form of supplemental services, the physical plant, and technology in the classroom, and too little attention on outputs like how well students are able to master important academic content. Focusing on inputs is diversionary and means educators and school leaders have less time to assess and improve the quality of the education they provide.

Final thoughts on the education reform issues we face in the US today?

There is one more issue I want to mention that I think BASIS is designed to get at. There are two achievement gaps in the US. The achievement gap that receives almost all the attention in the media – which is real and shameful – is the achievement gap between rural areas and the poorer sections of major cities on one hand and the suburbs across the country on the other. Another much more hidden achievement gap is the international achievement gap. What US suburbanites consider a good education is actually mediocre by international standards. Thats an important aspect of the BASIS experiment – our academic program addresses the international achievement gap that exists between the United States and other industrialized countries.


Michael Block and C. M. Rubin

(Photos courtesy of BASIS Schools, Inc.)

In The Global Search for Education, join me and globally renowned thought leaders including Sir Michael Barber (UK), Dr. Michael Block (US), Dr. Leon Botstein (US), Dr. Linda Darling-Hammond (US), Dr. Madhav Chavan (India), Professor Michael Fullan (Canada), Professor Howard Gardner (US), Professor Yvonne Hellman (The Netherlands), Professor Kristin Helstad (Norway), Jean Hendrickson (US), Professor Rose Hipkins (New Zealand), Professor Cornelia Hoogland (Canada), Mme. Chantal Kaufmann (Belgium), Professor Dominique Lafontaine (Belgium), Professor Hugh Lauder (UK), Professor Ben Levin (Canada), Professor Barry McGaw (Australia), Professor R. Natarajan (India), Dr. Denise Pope (US), Sridhar Rajagopalan (India), Dr. Diane Ravitch (US), Sir Ken Robinson (UK), Professor Pasi Sahlberg (Finland), Andreas Schleicher (PISA, OECD), Dr. Anthony Seldon, Dr. David Shaffer (US), Dr. Kirsten Sivesind (Norway), Chancellor Stephen Spahn (US), Yves Theze (Lycee Francais US), Professor Charles Ungerleider (Canada), Professor Tony Wagner (US), Professor Dylan Wiliam (UK), Dr. Mark Wormald (UK), Professor Theo Wubbels (The Netherlands), Professor Michael Young (UK), and Professor Minxuan Zhang (China) as they explore the big picture education questions that all nations face today.
The Global Search for Education Community Page

C. M. Rubin is the author of the widely read online series, The Global Search for Education, and is also the author of three bestselling books, including The Real Alice in Wonderland.

Economy, Stocks Could Take Big Hit in Payroll-Tax Fight

Tuesday, January 24th, 2012

If a bickering Congress cant agree to extend the payroll tax cut and unemployment insurance, US economic growth could slow by almost a full percentage point next year and send stocks down sharply, analysts say.

Illinois Credit Rating Downgraded To Nation’s Worst By Moody’s

Tuesday, January 24th, 2012

Citing the states ongoing financial problems, Moodys Investor Service on Friday downgraded Illinoiss credit rating to the lowest of any state in the country.

According to the Associated Press, Moodys blamed the low rating of A2 on weak management practices and the most recent legislative session which took no steps to implement lasting solutions on issues such as an increasingly severe pension funding shortfall.

Further detailing the downgrade, Moodys said Illinoiss chronic use of payment deferrals to manage operating fund cash presented a major challenge to its financial wellbeing.

It remains to be seen whether the state has the political willingness to impose durable policies leading to fiscal strength, Moodys explained in a statement, before it pointed to the states decision to temporarily increase its income tax rates as a step in the right direction. California has the second-worst credit rating in the US

At the same time Moodys downgraded Illinoiss credit rating, Standard Poors left its rating for the state unchanged, though it warned of a negative outlook, according to the AP. The same week, Fitch Ratings also left Illinoiss rating unchanged and said the states outlook has stabilized.

Gov. Pat Quinns office responded to news of the Moodys rating by calling it an outlier decision, Fox Chicago reports.

Although the state has taken positive steps toward fiscal stability, swift bipartisan action to implement further cost reductions and reforms in the upcoming legislative session are needed to stabilize the budget, Kelly Kraft, a Quinn spokeswoman, said in a statement, Bloomberg reports.

Germany sells bonds guaranteed to lose money

Tuesday, January 24th, 2012

The German government managed to sell four billion euros worth of bonds with a negative yield Monday, meaning investors were willing to pay for an asset guaranteed to lose money.

The average yield for six-month German bonds sold by the European Central Bank on Monday was -0.0122 per cent. That means when the bonds come due on July 11, 2012, an investor is guaranteed to get back less than the original sum invested.

Its more about whats happening elsewhere than whats happening in Germany, but its certainly a pretty telling development, said Ian Nakamoto, research director at MacDougall, MacDougall amp; MacTier in Toronto.

Its hard to put a million dollars under the mattress.– Ian Nakamoto

Unlike corporate bonds, government treasury bills do not pay interest. Rather, investors typically buy the bonds at a discount, redeem them at face value and pocket the difference as profit. But buyers of Germanys bonds on Monday paid slightly more than the face value of the bond today for the right to redeem them at face value in six months time.

Any time they sell debt, its a test of the market, absolutely, said Richard Pilosof of RP Investment Advisors in Toronto. Its a test of Europe and it shows the market thinks they havent created a real solution yet.

The weighted average price was 100.00616 euros to receive 100 euros in six months time. Thats the first time Germanys bond yield has gone negative in the initial auction, though it has dipped below zero in the secondary market from time to time.

Demand for the debt was strong — the cover ratio for the offering was 1.8, meaning there were almost twice as many people wanting to buy the debt as there were bonds up for sale.

To me, its more like a safety deposit box than an investment, Nakamoto said. People go to their bank and pay a fee for the bank to keep their valuables in a safety deposit box. Youre not trying to earn interest, you just want to park what you have there and youre willing to pay a fee to have the family jewels protected.

Its hard to put a million dollars under the mattress, Nakamoto said.

In all, there were offers to buy 7.08 billion euros worth of German debt at the negative yield, but Germany only had four billion for sale.

Safe haven

Germanys previous six-month debt auction on Dec. 5, 2011, had a yield of 0.0005 per cent — microscopic, but still positive.

The strange phenomenon of investors lining up to buy an asset they know will lose money is a testament to how bleak things look in Europes economy. Even though their money is guaranteed to shrink, investors were willing to pay Germany for the privilege of losing a small amount of money with them rather than possibly losing a lot more by investing in shakier economies elsewhere on the Continent.

Germanys negative yield contrasts with that of other eurozone economies such as Italy and Spain, which are currently paying the highest amount since the early 1990s to borrow money from investors.

Any time Germany sells, its less about credit quality and more about supply and demand, Pilosof said. Theres just more buyers than sellers because theres too much cash than can go into [other things] and nobody wants to go into Spain and Italy, he said.

The yield on debt from Switzerland and the Netherlands has previously swung negative, but Germanys economy is much more significant. France, Slovakia, Austria, the Netherlands, Spain and Italy are all scheduled to have bond sales this week.

Mobile payday loans- Get fund with simplest method of phone call

Monday, January 23rd, 2012

If you are suffering from financial crisis then usually you are seeking for loans right! In todays modern era, getting loan is not a difficult job for everyone. Without taking lengthy formalities, people who are desperately in need of fund can apply for loans with simple process. Do you want to get quick money with a single call of phone? If yes, then it is better for you to prefer Mobile payday loans.

As the name suggests, mobile payday loans are offered without any lengthy formalities but you can easily obtain these loans via mobile phone. For those people who do not have any internet connection can easily apply these loans via mobile phone. This type of loan is totally diverted from old-styled of loan procedure because you can get quick fund with the help of single call.

With the help of Mobile payday loans, one can easily borrow quick fund that ranges from $100 to $1500 depending upon your monthly salary and repayment capability. For this loan, you have to pay back loan within 2 to 4 weeks. if you fail to repay loan within stipulated period of time then you need to add extra fee as a late penalty.

Once you got the sanctioned amount of money, you can utilize money in many purposes whether it may be for electricity bills, medical bills, home renovation, car repairs, credit card dues and wedding expenses etc. All-in-all, it is a unique form of loan where any individual can easily overcome their short-term needs of money.

For availing Mobile payday loans, you must follow certain formalities such as you must be a genuine citizen of US. You must attain above 18 years of age. You should have a permanent job. Plus, you should have a valid bank account in US. With all these criteria, it is quite capable for you to avail these loans.

Even bad creditors are allowed to avail these loans since there is no credit verification process. To apply for these loans, you need to make call to online lenders to provide the full details such as name, contact number, bank account, age, email ID and gender etc.

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Leeds Building Society ups LTVs on fixed-rate mortgages

Monday, January 23rd, 2012
  • Leeds Building Society puts fixed-rate mortgages into new year sale

    Anyone in need of a home loan may be heading to Leeds Building Society after it announced it is adding its three-year fixed-rate mortgages to the new year sale.

  • Leeds Building Society reduces rates on fixed rate mortgages

    Leeds Building Society has reduced the rates and fees on some of its two and three-year fixed rate mortgages.

  • Leeds Building Society announces new deals on offset mortgages
  • Leeds Building Society launches two-year fixed rate mortgage at 2.29%