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Jun 4, 2010

MarketWatch: Personal Finance Daily. June 4th., 2010

MarketWatch
Personal Finance Daily
JUNE 04, 2010

Friday's Personal Finance stories

By MarketWatch



Don't miss these top stories:

My first foray into the labor market, at 13, was a summer job working for my stepmother's dog-grooming business, bathing dogs in the big tub at the back of the shop. One of my clearest memories of the experience was being handed what seemed to me a huge wad of cash every day after work. There's that, along with the dog hair that affixed itself to all of my clothes.

We had a lot of fun working together at that shop, but those were easier times, economically speaking. These days, family-run businesses are finding it a struggle to survive -- and that can raise familial tensions. How do you lay off a relative, or turn down a job request from your son or daughter? Read Ruth Mantell's Diary of a Recession Baby for more on some of the tough-love tactics that family businesses are forced to adopt in these difficult economic times.

With the latest job-market data looking relatively grim, family firms may find the tensions rising. Then again, tension is pretty easy to find anywhere you look these days.

-- Andrea Coombes , Personal Finance editor

SMALL BUSINESS

Recession brings tough love to family firms

Expecting Mom and Dad to set you up with a cushy job in the family business? Not so fast. In this economy, some family firms are finding themselves forced to turn down job requests from relatives, and business owners are laying off family members and longtime trusted employees because of the length of the downturn.
See Diary of a Recession Baby.


RETIREMENT

Here's how you'll pay for your retirement

Retirement planning isn't about "the number," but the numbers -- your assets, liabilities, expenses and income. The more you know about those numbers, the more likely your retirement plan will become a reality instead of a pipe dream.
See Robert Powell.


JOB MARKET

Hiring weak in May except for Census workers

Nonfarm payrolls grew by a seasonally adjusted 431,000 in May, but virtually all the new jobs were temporary jobs at the U.S. Census, leaving private-sector hiring very weak, the Labor Department reported Friday.
See hiring weak in May except for Census workers.


ECONOMY & POLITICS

Do bank-reform bills prepare us for next financial crisis?

The Senate has approved the most significant expansion of the regulations governing U.S. financial firms since the Great Depression, yet as the rules inch closer to becoming law, legislative observers worry that the major changes won't be enough to ward off a future economic crisis.
See story on whether bank-reform bills prepare us for the next financial crisis.


REAL ESTATE

When buying a short sale, there are no easy answers

Question: A bank in Ft. Lauderdale, Fla., has the final say on the sale of a house my daughter wants to purchase. The Realtor sold my daughter on making an offer on this townhouse, which is owned by someone who owes more than the place is worth. The day on which she was promised an answer has come and gone, but she has heard nothing from the bank.
See Realty Q&A.


HEALTH CARE

McDonald's to recall 12 million 'Shrek' glasses

McDonald's Corp. (MCD)will voluntarily recall 12 million collectible drinking glasses painted with characters from the movie "Shrek" because the paint contains cadmium, the Consumer Product Safety Commission said Friday.
See story on McDonald's to recall 12 million "Shrek" glasses.


An electronic health record that builds on veterans' system

You might not think it, but the health system that's at least a decade ahead of most of the private sector in operating an effective electronic health record is the Veterans Health Administration, whose VistA program has inspired a California company to try to build on its strengths.
See Kristen Gerencher's Health Matters Blog.


INVESTING

Commentary: Give this fund a 'no-confidence' vote

Imagine if a company held a shareholder vote and then ignored the results because it didn't like the outcome. Stop imagining. A closed-end mutual fund run by DWS Investments recently ran a slate of board members for re-election, and when the vote didn't go management's way, stiffed the shareholders and kept the incumbent, entrenched board.
See Chuck Jaffe's Stupid Investment of the Week.


Give developing-world stocks a spin

Emerging markets have sounded a siren's song for many investors, and likely will lure many more. But do people know what they are getting into?
See John Prestbo's Indexed Investor.


THE GULF OIL SPILL

Spill could mean dark times for Sunshine State

Already reeling from a real-estate crisis and deep economic slump, Florida faces yet another financial cataclysm if oil from the Gulf spill mars its famous shores, scaring away crucial tourist traffic and wreaking havoc on its fisheries.
See story on how oil spill could mean dark times for Sunshine State.

Mining Interactive : Midweek with Nick Nicolaas - the Dow is on its way to 5,000 or less. June 4th., 2010


06/02/10 ‘MIDWEEK’ with Nick Nicolaas
“the Dow is on its way to 5,000 or less”


Stay Tuned!!

Regards,
Nick L. Nicolaas.

From The Desk Of Nick Nicolaas.: Zeal Intelligence Weekly - Commodities-Stock Buying Op by Adam Hamilton. June 4th.,2010

Dear Friends:
Adam Hamilton has posted his weekly Zeal Intelligence Newsletter on the Mining Interactive Website. Click here:
Have a great weekend and - - - Stay Tuned!!

Regards,
Nick L. Nicolaas
Mining Interactive “Ahead of the Pack”
Nick L. Nicolaas
President & CEO
Mining Interactive Corp.
www.mininginteractive.com
Direct 24/7: +1 (604) 657-4058
Main Office: +1 (604) 569-0800
Fax: +1 (604) 569-0758
Skype: nicknicolaas
nick@mininginteractive.com
Vancouver Stock Exchange Building (1929)
Suite 818 - 475 Howe Street
Vancouver, BC, Canada V6C 2B3

Markets in Turmoil: What's Next? June 4th., 2010

FGC BOLSA - FGC FINANCIAL MARKETS : MarketWatch.- Industry -Financial Services - Weekend Investor: Pop goes the bond-fund balloon. June 4th., 2010





 INDUSTRY: FINANCIAL SERVICES

Weekend Investor: Pop goes the bond-fund balloon  
By Sam Mamudi MarketWatch
6/4/2010 6:38:00 PM



They say that bad things come in threes, and in the past decade investors have seen two market bubbles burst. Now some money-managers believe a third downturn is in the making -- in bonds. See full story

Hedge Funds: Clarium gains 4% in May as deflation trade returns
 

By Alistair Barr MarketWatch
6/4/2010 6:30:00 PM



Clarium Capital, a hedge fund firm run by PayPal co-founder Peter Thiel, had a good month in May as deflation concerns crept back into the market. See full story

Hedge Funds: Paulson & Co., Moore Capital struggle in May

 
By Alistair Barr MarketWatch
6/4/2010 5:08:00 PM



Paulson & Co. and Moore Capital, two of the world's largest hedge fund firms, struggled in May as Europe's sovereign-debt crisis knocked equity and credit markets. See full story



MarketWatch: Weekly Roundup : MarketWatch Top 10 stories May 31 - June 4

MarketWatch
Weekly Roundup
JUNE 04, 2010

MarketWatch Top 10 stories May 31 - June 4

By MarketWatch



NEW YORK (MarketWatch) - U.S. stocks suffered another turbulent week, ending with sizable losses.

The Dow Jones Industrial Average (.DJI) fell 323.31 points or 3.2% on Friday to close at 9,931.97 and notch a loss of 2% for the week. The Nasdaq Composite Index (.COMP) dropped 83.86 points or 3.6% to close at 2,219.17 on Friday. The index lost 1.7% for the week. The broader Standard & Poor's 500 Index (.SPX) fell 37.95 points or 3.4% on Friday to close at 1,064.88. For the week the index was down 2.3%.

Click through to MarketWatch over the weekend for all the news you need. Our weekend investor feature will examine a growing bubble in bonds and how you can profit from it. We'll also have more World Cup coverage as the tournament nears its kick off, set for next Friday.

Also please be sure to watch our Week Ahead videos for U.S., Asian and European markets.

 Europe's Week Ahead: Prudential, Inditex in Focus

 U.S. Week Ahead: Apple, BP, Bank Reform

 Asia Week Ahead: China, South Korea Interest Rates

-- Greg Morcroft , assistant managing editor

Hiring weak in May except for Census workers, U.S. says

Nonfarm payrolls grew by a seasonally adjusted 431,000 in May, but virtually all the new jobs were temporary jobs at the U.S. Census, leaving private-sector hiring very weak, the Labor Department reported Friday. Excluding 411,000 temporary Census workers, payrolls rose by 20,000 in May. According to the survey of 400,000 business establishments, private-sector payrolls increased by 41,000, the fifth straight monthly gain. "A disappointing private payroll number to be sure," said John Ryding and Conrad DeQuadros of RDQ Economics. Read MarketWatch's full story on latest jobs report.

Hungary warning heightens sovereign-debt fear

Hungary's new government added to sovereign-debt fears Friday, shaking global financial markets after a spokesman for Prime Minister Viktor Orban was quoted as warning that the economy had been left in a "grave situation" and that talk of a default wasn't "an exaggeration." The comments by the spokesman, Peter Szijjarto, follow a warning by the deputy leader of the ruling Fidesz party on Thursday that Hungary was in danger of a Greek-style scenario. See full MarketWatch story on outbreak of Hungarian worries.

Euro slumps to fresh four-year low versus greenback

The euro (CUR_EURUSD) hit a fresh four-year low against the U.S. dollar Friday, losing ground as weak U.S. payroll figures and mounting concerns about Hungary's fiscal situation prompted investors to run toward the relative safety of the greenback. The euro's overall move lower was also driven by a fall to a new all-time low versus the Swiss franc, after Swiss National Bank President Philipp Hildebrand made no mention of intervention in a speech in Interlaken, Switzerland. Read more on MarketWatch about the euro's drop.

Drumbeat for Fed rate hike grows louder

The drumbeat from some Federal Reserve officials for the central bank to raise interest rates grew louder on Thursday. The Fed's most visible rate hawk, Thomas Hoenig, the president of the Kansas City Federal Reserve bank, used a speech to lay out his preferred upward path for short-term interest rates that would have the federal funds rate rise from near-zero to 1% by the end of summer. But Hoenig didn't stop there, detailing the next phases to get the funds rate to 4.5% in an orderly manner. Read full MarketWatch story on future of U.S. interest rates.

Anxious investors flee stock funds

Individual investors' comfort with stock investing seems to have been short-lived. After registering steady inflows in March and April for the first time in almost a year, market turbulence in May led to large outflows for stock mutual funds. Investors still scarred by losses in late 2008 and early 2009 seem to have been spooked by a price correction and the spike in stock-market volatility last month, as concerns about European sovereign debt, the so-called flash crash, geopolitical tensions on the Korean peninsula and the troubles surrounding the oil spill in the Gulf of Mexico roiled the markets. Investors voted with their feet, moving money out of both domestic and international stock funds. Read more about investors' exodus from equities on MarketWatch.

Commentary - Making sense of the selloff

There are some types of selling that are better than others. The stock market's volatility during the first half of May was the result of investors scrambling for cover on the back of the European debt crisis, China overheating fears and regulatory and legislative uncertainties. Since then, there seems to be a method developing out of all the selling madness. Based on the performance of the 10 S&P 500 sectors, the stocks are starting to act like they're supposed to act if the economy was starting to slow. While that might not sound like a positive, it's a lot better when investors are thinking about what they are selling than when they are selling indiscriminately. Read the full column on MarketWatch.

AT&T to end unlimited wireless-data plans

AT&T Inc. (T) on Wednesday became the first major U.S. wireless company to move away from unlimited Internet plans and introduce metered billing, providing a future template for how the industry bills customers. Executives at AT&T and Verizon Wireless have talked for months about the need to switch to metered billing as a means to reduce congestion and better manage their mobile networks. Heavy data usage by a tiny percentage of customers occasionally has clogged networks and reduced the quality of wireless service for other subscribers. Read about ne data plans from AT&T on MarketWatch.

Fiscal conservative Kan to be Japan's next leader

Japanese equities and currencies markets barely twitched Friday in reaction to news that weak-yen-proponent and fiscal conservative Naoto Kan will be Japan's fifth prime minister in less than four years. Kan served as deputy prime minister and then finance minister under former Prime Minister Yukio Hatoyama, who announced his resignation on Wednesday. See full story about new Japanese prime minister on MarketWatch.

Could Apple still have iPhone surprise up sleeve?

Apple Inc. (AAPL) is widely expected to lift the wraps on a new iPhone model next week, updating a product line that has become the largest and most lucrative business for a company historically known for its iconic Mac computers. But Apple may struggle to maintain the enthusiasm that has whetted investors' appetites and driven its shares to strong gains this year. Previous announcements and an embarrassing and high-profile media leak two months ago may have left the company with little in the way of fresh news to kick off its Worldwide Developers Conference in San Francisco on Monday. Apple has been known in the past to surprise audiences, though, so company observers do not discount the possibility that there may yet be a surprise or two in store. Read about what Apple may unveil next week on MarketWatch.

Recession brings tough love to family firms

Expecting Mom and Dad to set you up with a cushy job in the family business? Not so fast. In this economy, some family firms are finding themselves forced to turn down job requests from relatives, and business owners are laying off family members and long-time trusted employees because of the length of the downturn, said Wayne Rivers, president of the Family Business Institute, a consultancy in Raleigh, N.C. Read MarketWatch story on family firm's tightening hiring.

NYT Breaking News Alert :News Alert: Worries Over Hiring Data Erode Stocks; Major Indexes Close More Than 3% Lower. June 4th., 2010

Breaking News Alert
The New York Times
Fri, June 04, 2010 -- 4:15 PM ET
-----

Worries Over Hiring Data Erode Stocks; Major Indexes Close More Than 3% Lower

Stocks in the United States closed sharply lower on Friday
after the latest employment figures raised concerns about the
strength of the economic recovery and new worries emerged
that the debt crisis in Europe was spreading. The Dow Jones
industrial average fell below 10,000, closing with a loss of
323,84 points or 3.16 percent in preliminary figures. The
broader Standard & Poor's 500 index fell more than 3.4
percent, and the technology-heavy Nasdaq composite more than
3.6 percent. The euro continued its decline, dropping to less
than $1.20 on concerns about the fiscal troubles in Europe.
The markets skidded steadily all day after the Labor
Department reported that though nonfarm payrolls grew by
431,000 in May, hiring of temporary Census workers accounted
for almost all the gains, while private-sector job growth was
more anemic than expected.

Read More:
http://www.nytimes.com?emc=na

FOX BUSINESS : Letdown Friday: Dow Dives 324 Points.- June 4th., 2010


Is the World Broke Homepage
Point of No Return for DebtWATCH A look at whether governments across the globe will ever be able to repay their debts.
THE MOST POWERFUL NAME IN BUSINESS NEWS

Bernanke's Words in the Spotlight

Up & Coming Federal Reserve Chairman Ben Bernanke’s upcoming testimony on the federal budget will be important to keep an eye on.

Letdown Friday: Dow Dives 324 Points

The bears retook control and pushed the blue chips well below the 10000 threshold on Friday.

Pay Czar Ramps Up Executive Pay Probe

Pay Czar Ken Feinberg will soon decide if he will call on financial firms to return potentially billions of dollars handed out in late 2008. | WATCH

Goldman Charges Bring Back Memories

Dozens of suits were filed against the firm in the 1970s -- and the claims made then may still apply.

RTTNews : Daily News Analysis.. Jobs Data May Compound Worries June 4th., 2010

Daily Market Analysis Fri Jun 4 09:26 2010 

Jun 4, 2010 Jobs Data May Compound Worries - RTTNews Daily Market Analysis The major U.S. index futures are pointing a notably lower opening on Friday, with sentiment worsening following the release of the Labor Department's monthly non-farm payrolls report showing smaller than expected job additions. More importantly, the bulk of job gains were related to census hiring. The data is likely to take traders by surprise, as they were beginning to take a smooth economy recovery for granted. Added to this, the uncertainty over the sovereign debt crisis is also likely to keep trader mood downbeat in the session. Full Article

RTTNews ; Morning Market Briefing.- Stocks May Plummet As U.S. Jobs Data Disappoints - U.S. Commentary . June 4th., 2010

Morning Market Briefing
 Fri Jun 4 09:01 2010
 




Commentary

Jun 4, 2010 Stocks May Plummet As U.S. Jobs Data Disappoints - U.S. Commentary Stocks are poised for a sharply lower open on Friday, as disappointing jobs data from the U.S. and news of a sovereign debt crisis in Hungary have weighed significantly on trader sentiment. The major index futures are all firmly lower, with the Dow futures down by 185 points. Full Article

Economic News

Jun 4, 2010 U.S. Employment Increased By 431,000 Jobs In May Payroll employment in the U.S. showed another notable increase in the month of May, according to a report released by the Labor Department on Friday, although the increase in jobs was largely due to the hiring of temporary employees to work on the census. Full Article
Jun 4, 2010 U.K. House Prices Drop Unexpectedly In May: Halifax U.K. house prices dipped for the second month in a row in May, underlining the fragility of past year's house price recovery. Full Article
Jun 4, 2010 Eurozone Maintains Gradual Recovery In Q1 The Eurozone economy grew at a sluggish pace in the first quarter led by exports and government spending, highlighting the fragility of recovery. The European Union statistical office Eurostat on Friday confirmed the 0.2% sequential economic growth for the euro area in the first quarter. During the same period, the U.S. economic growth eased to 0.8% from fourth quarter's 1.4%, while moved up to 1.2% from 1% in Japan. The Eurozone had exited the recession in the third quarter of last year. Full Article
Jun 4, 2010 South Korea GDP Growth Revised Up The South Korean economy grew at a faster than previously estimated pace in the March quarter , official figures showed on Friday. The strong growth was underpinned by exports, investment and consumption. Full Article
Jun 4, 2010 Philippine Annual Inflation Unexpectedly Eases In May Philippine annual inflation unexpectedly eased in May, with energy price inflation also seeing a slowdown, data released by the National Statistics Office showed a day after the central bank downgraded its inflation forecast. Full Article

Earnings News

Jun 4, 2010 SAIC, Inc. Q1 profit up 7.7%, beats estimate; backs FY11 viewThursday, SAIC, Inc. (SAI) posted a 7.7% rise in its first-quarter profit, as revenues grew 1.4% and expenses declined 16% year-over-year. Earnings per share from continuing operations came in above the Street view by a penny, while revenue fell short of expectations. For fiscal year 2011, the company maintained its earlier internal revenue growth view of 3% - 6% and earnings per share from continuing operations growth outlook of 8% - 14%. Full Article
Jun 4, 2010 Martek Q2 profit rises 14%, beats estimate; guides Q3 EPS below StreetThursday, Martek Biosciences Corp. (MATK) said its fiscal second-quarter profit advanced 13.6% on a 12% growth in infant-formula sales. Both earnings and revenues, which grew 34.1% year-over-year, came in well above the Street view. Gross margin for quarter climbed 46% from 42% in the past year. However, the company guided third-quarter earnings below the estimate of analysts, although expecting revenue to surpass expectations. For the full year also the company expects revenue to exceed analysts estimate. Full Article
Jun 4, 2010 Ulta Salon Cosmetics Q1 profit almost trebles, beats estimate; guides Q2 above StreetThursday, Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA) reported almost a three-fold jump in profit for the first quarter, reflecting both a 19% growth in sales and improved margins. Both earnings and revenue came in well above the Street view. Comparable store sales increased 10.8%. Gross margin expanded year-over-year to 32.6% from 29.6%, and operating profit margin improved to 7.3% from 3.3%. For the second quarter, the company guided both earnings and revenue to come in above the consensus estimates. Full Article

Corporate News

Jun 4, 2010 Ingersoll CEO Lamach elected as ChairmanFriday, Ingersoll-Rand Plc (IR) said its Board of Directors elected the company's Chief Executive Michael Lamach as the Chairman. Lamach succeeds Herbert Henkel, who is retiring after donning the role of Chairman for a decade. Lamach, 47, had joined Ingersoll Rand in February 2004 as president of the company’s Security Technologies Sector. Full Article
Jun 4, 2010 OMNI Energy agrees to be bought by private firm Wellspring CapitalFriday, Omni Energy Services Corp. (OMNI) agreed to be bought by a private equity firm Wellspring Capital Management LLC for about $57.8 million, or $2.75 a share. Including debt, the total transaction is valued about $122 million, Omni revealed. As per the deal, Omni can go shop for other bidders till July 16, and if another bid is accepted, Omni will have to part away with a "break up" fee of $1.8 million plus expenses. Further, the company expects the deal to close in the second half of the year. Full Article

Todays WS Events

Jun 4, 2010 Wal-Mart Stores Will Hold Annual Shareholders Meeting; Webcast At 8:00 AM ET Wal-Mart Stores (WMT) will present 2010 annual Shareholders'' meeting in the Bud Walton Arena at the University of Arkansas in Fayetteville, Ark. The event is scheduled to begin at 8:00 AM ET June 4, 2010. To access the live webcast, log on at www.walmartstores.com/investors
Jun 4, 2010 Cisco Systems To Present At Sanford C. Bernstein Strategic Decisions Conference; Webcast At 8:00 AM Cisco Systems Inc. (CSCO) will make a presentation at the Sanford C. Bernstein Strategic Decisions Conference in New York. The event is scheduled to begin at 8:00 AM ET June 4, 2010. To access the live webcast, log on at http://investor.cisco.com
Jun 4, 2010 Campbell Soup To Present At Sanford C. Bernstein Strategic Decisions Conference; Webcast At 10:00 AMCampbell Soup Co. (CPB) will make a presentation at the Sanford C. Bernstein Strategic Decisions Conference. The event is scheduled to begin at 10:00 aM ET June 4, 2010. To access the live webcast, log on at www.investor.campbellsoupcompany.com
Jun 4, 2010 Colgate-Palmolive To Present At The RBC Capital Markets Consumer & Retail Conference; Webcast At 12:Colgate-Palmolive Co. (CL) will present at the RBC Capital Markets''Consumer & Retail Conference. The event is scheduled to begin at 12:00 PM ET June 4, 2010. To access the live webcast, log on at www.colgate.com

FOX BUSINESS : NON-FARM PAYROLLS INCREASE 431,000 IN MAY; UNEMPLOYMENT RATE FALLS TO 9.7%. June 4th., 2010


employment unemployment job listings 276
Are There Any Jobs?The economy gained 431,000 jobs in May, far less than expected, and the boost came almost entirely from the government hiring temporary Census workers.


THE MOST POWERFUL NAME IN BUSINESS NEWS

G20 Policymakers Go Public With Fears

Is the World Broke? Leading policymakers were unusually candid about fears of a global slowdown.

Futures Signal 200-Point Plunge

Dow futures took a 200-point tumble as Wall Street was spooked by a weak jobs report.

Obama's Bait and Switch

The president has deployed a strategy by casting his economic goals in terms of national security.

AIG's Asia Unit's Future Still Unknown

The insurer is still exploring other options instead of an IPO after the Prudential deal fell through.

BP Aims to Stop 90% of Spill

The containment cap placed should stop at least 90% of the flow of oil spilling into the ocean says an official.

Money Morning : Two Big Reasons to Believe the U.S. Stock Market Will Bounce Back. June 4th.,2010

June 4, 2010
ARE YOU VULNERABLE?

ALL BRANCHES of government are IN BUSINESS with Wall Street - they've become "financial" terrorists. About to attack again. Either you're a big target, or you Become a "Kevlar Investor"- Free Guide Here.

Two Big Reasons to Believe the U.S. Stock Market Will Bounce Back

By Jon D. Markman, Contributing Writer, Money Morning

There's been a lot of cheerless news coming out of Europe lately, and that's taken a toll on the U.S. stock market. But I want to take this opportunity to offer up some positive points and remind investors that it's still too early to declare the bull-market dead, and even more premature to fret over a new bear market beginning.

There are two key considerations that support a continued rise in U.S. stocks:

To find out why it's too early to give up on stocks, read on...
Markman on...
- What no one is telling you about this new stock market...


Don't Get Caught Flat Footed...

"This is going to be a long, hot summer, and there are going to be extraordinary market gyrations around the globe," says expert Shah Gilani. Yet the "capital waves" are accelerating, and Shah has already shown his readers how to grab 40% in seven days - from the last place on earth you'd expect. Right now, Shah's about to show readers how to collect 2,000% when the fast money exits commodities. Hang on - it's coming fast. Don't get caught flat-footed. Go here for the full report.

Stubbornly High Unemployment Shows U.S. Economy Still Plagued by "Jobless Recovery"

By Don Miller, Associate Editor, Money Morning


While a surge in corporate profits reflect an improving economy, several government reports show that the United States continues to be plagued by a lingering "jobless recovery."

Most analysts, including President Barack Obama, are predicting a strong May jobs report due out today (Friday) with more than 500,000 new jobs added to the U.S. economy.

"We expect to see strong jobs growth in Friday's report." Obama predicted in a speech in Pittsburg on Wednesday.

Continue

Money Morning Mailbag

We'd like to hear from you! If you have an idea that amplifies something you've read in Money Morning, send it to us here to share: mailbag@moneymappress.com.

"ALL BRANCHES... of our government ARE IN BUSINESS with Wall Street..."
from Money Morning Reader, T.S.


Money Morning Mailbag: Investors Show Growing Concerns Over Deflation

By Kerri Shannon, Associate Editor, Money Morning

The threat of deflation has been making its rounds as inflationary measures like the consumer price index (CPI) fell for the first time in 13 months in April, dropping 0.1%. Core CPI - which excludes food and energy prices - rose only 0.9%, its smallest gain since 1966. The producer price index (PPI) also dipped 0.1%.

"The recent trend in inflation has been swiftly to the downside," Eric Green, chief U.S. rates strategist at TD Securities, told Reuters. "All measures of inflation are decelerating."

Investment behavior has shown an anxious but mixed sentiment of hedging against both inflation and deflation: Demand for gold metal is outstripping supply by more than 1% per year and has pushed gold prices to record highs, while others have sought out both corporate bonds and U.S. Treasuries for safety.

Read full story...

THE WALL STREET JOURNAL : China Real Time Report. June 4th, 2010

THE WALL STREET JOURNAL

The No.1 Morgan Stanley Traveler

What do Morgan Stanley Asia chairman Stephen Roach and Hollywood heartthrob George Clooney have in common?
Roach and Ryan Bingham, the man Clooney plays in the movie “Up in the Air,” both belong to an elite class of super-frequent flyers that spend much more time in airports, airplanes and hotels than they do in their homes.
“In the three years I’ve had this job, I’ve done 1.2 million miles,” Roach says. “That makes me the No. 1 traveler globally at Morgan Stanley” – something he never imagined himself becoming.
A well-known Wall Street economist, Roach famously attacked the U.S. Federal Reserve’s easy credit policy and warned of dangerous imbalances in the economy in 2004, years before it became fashionable.
Roach expects to be traveling slightly less now that he will be returning to the U.S. to teach at Yale University (his first course will be about coming changes in China’s economy), while serving as Morgan Stanley’s non-executive chairman for Asia. He says he’ll be flying back to Asia once a month or so, where he’ll likely focus his energies on mainland China, Hong Kong and India.
“I’ll be doing the same thing I have been, being the senior representative for meetings with clients, government officials and regulators,” he says of his new post. “I’ll just be doing a little less of it.”
So what did he think of Clooney’s movie?
“I had to walk out halfway through it,” he confesses, finding that the descriptions of perpetual life on the road hit “a little too close to home.”
– Peter Stein

NYT : Business News .- A Jobless Rate Still Unaffected by New Hiring.


Business:

A Jobless Rate Still Unaffected by New Hiring
By MOTOKO RICH
Many unemployed people are beginning to look for work again, encouraged by reports of a strengthening economy.

Report Warned Wal-Mart of Risks Before Bias Suit
By STEVEN GREENHOUSE
A report prepared for the company in 1995 found widespread gender disparities in pay and promotion at Wal-Mart and Sam’s Club stores.

Wal-Mart to Offer Its Workers a College Program
By STEPHANIE CLIFFORD and STEPHANIE ROSENBLOOM
The retailer is joining with a Web-based university to give employees tuition reductions and credits from work.

More Business News

The Washington Post : Today's Highlights.- Controversies weigh on the White House . June 4th., 2010



At virtually every turn lately, the White House cannot shake the appearance that it is hamstrung and a step behind. From a major crisis such as the oil spill in the Gulf of Mexico to smaller and seemingly avoidable controversies over internal Democratic Party politics, President Obama and his team...
(By Dan Balz, The Washington Post)

BP caps well; effectiveness of 'top hat' unclear
(By Joel Achenbach, The Washington Post)

U.S. 'secret war' expands globally
TERROR GROUPS ARE TARGETS
Special Operations forces have greater role

(By Karen DeYoung and Greg Jaffe, The Washington Post)

Naoto Kan becomes new Japanese prime minister
Hatoyama's successor must decide future of Okinawa air base
(By Chico Harlan, The Washington Post)

The game wasn't perfect, but the gentlemen were
(By Thomas Boswell, The Washington Post)

More Today's Highlights

POLITICS
Controversies weigh on the White House
At virtually every turn lately, the White House cannot shake the appearance that it is hamstrung and a step behind. From a major crisis such as the oil spill in the Gulf of Mexico to smaller and seemingly avoidable controversies over internal Democratic Party politics, President Obama and his team...
(By Dan Balz, The Washington Post)

U.S. 'secret war' expands globally
TERROR GROUPS ARE TARGETS
Special Operations forces have greater role

(By Karen DeYoung and Greg Jaffe, The Washington Post)

Blacks struggling in campaigns
Obama's win apparently hasn't helped them in nationwide contests
(By Perry Bacon Jr., The Washington Post)

3 models for a GOP comeback
U.S. Senate candidates in California offer distinct choices
(By Dan Balz, The Washington Post)

White House, Ariz. to talk border security
President and governor meet but don't agree on comprehensive bill
(By Michael D. Shear, The Washington Post)

More Politics


NATION
White House, Ariz. to talk border security
Arizona Gov. Jan Brewer (R) said Thursday that President Obama assured her that he would send White House staff members to her state to talk with officials about efforts to secure the U.S.-Mexico border.
(By Michael D. Shear, The Washington Post)

New Cyber Command chief warns of possible attacks
U.S. military networks in war zones could be targeted, Alexander says
(By Ellen Nakashima, The Washington Post)

BP installs dome to contain oil geyser
Promise of latest effort is unclear as Obama heads back to gulf
(By Joel Achenbach, The Washington Post)

American among those killed in raid
Death of teen, who held dual citizenship with Turkey, adds to fallout
(By Glenn Kessler, The Washington Post)

Burma seen on the path to nuclear weapons
Report cites materials provided by military officer who defected
(By Joby Warrick, The Washington Post)

More Nation

WORLD
Ruling party picks new Japanese prime minister
TOKYO -- Hours before he would become Japan's latest prime minister, Naoto Kan received a memo from his predecessor, Yukio Hatoyama, that offered some advice that Hatoyama himself couldn't follow.
(By Chico Harlan, The Washington Post)

In a crisis, Netanyahu looks homeward first
DEFIANCE BRINGS ISRAELIS' SUPPORT
But toughness can turn to pragmatism when needed

(By Janine Zacharia, The Washington Post)

U.S. military's castoffs find a market among Iraqis
Bargain hunters seek out abandoned generators, trailers and latrines at yard sales and auctions across the country
(By Leila Fadel, The Washington Post)

U.S. 'secret war' expands globally
TERROR GROUPS ARE TARGETS
Special Operations forces have greater role

(By Karen DeYoung and Greg Jaffe, The Washington Post)

Nation Digest
(The Washington Post)

More World

METRO
Spelling bee down to 48 semifinalists
The 83rd Scripps National Spelling Bee has been narrowed from 273 spellers from across the globe to 48 semifinalists, including three from the D.C. area.
(By Jenna Johnson, The Washington Post)

Drug search on D.C. teen deemed illegal
PREVIOUS RULING OVERTURNED
Disorderly conduct arrest flawed, appeals court says

(By Mary Pat Flaherty, The Washington Post)

Area leaders cite progress on bay
(By Aaron C. Davis, The Washington Post)

Highway worker is killed in Maryland
(By Ashley Halsey III, The Washington Post)

Ruling party picks new Japanese prime minister
Hatoyama's successor must decide future of Okinawa air base
(By Chico Harlan, The Washington Post)

More Metro

BUSINESS
Financial effects spread to Britain
LONDON -- As BP shares take a pounding and oil continues to spew into the Gulf of Mexico, Britons are starting to see the crisis not only as a disaster off America's shores, but also one with reverberations here.
(By Karla Adam, The Washington Post)

Report finds blurry line between Hill and Wall St.
(By Dan Eggen, The Washington Post)

Economy growing slowly but steadily
BROAD-BASED RECOVERY
Job market improves; consumer spending rises

(By Neil Irwin, The Washington Post)

Wal-Mart opens college option to workers
Retail giant partners with online school to offer on-the-job credits
(By Ylan Q. Mui, The Washington Post)

BP installs dome to contain oil geyser
Promise of latest effort is unclear as Obama heads back to gulf
(By Joel Achenbach, The Washington Post)

More Business

TECHNOLOGY
New Cyber Command chief warns of possible attacks
The U.S. government is seeing "hints" that adversaries are targeting military networks for "remote" sabotage, the head of the Pentagon's recently launched Cyber Command said in his first public remarks since being confirmed last month.
(By Ellen Nakashima, The Washington Post)

One giant leap for privatization?
Successful launch of Falcon 9 rocket could give boost to commercial spaceflight
(By Marc Kaufman, The Washington Post)

More Technology

SPORTS
O's latest loss may be last one for Trembley
NEW YORK -- If this indeed was Dave Trembley's final game as Baltimore Orioles manager, it was a fitting end to his three-season run.
(By Baltimore Sun, The Washington Post)

Hernandez silences Twins in Seattle's 4-1 win
(By TIM BOOTH, AP)

Medlen, Glaus lead Braves past Dodgers, 4-3
(AP)

Lakers get taste of revenge against Celtics
After loss to Boston in '08, Los Angeles takes Game 1, 102-89
(By Michael Lee, The Washington Post)

Stern: It's a good time to be a new team owner
(By Michael Lee, The Washington Post)

More Sports

STYLE
Chefs fill a tall order: School lunch
It was nearly midnight on a bitter January night when a group of Washington's most celebrated chefs assembled around a long table at downtown hotspot Brasserie Beck to debrief one another on their recent White House mission. Enlisted by the first lady's office in her war against childhood obesity,...
(By Jane Black, The Washington Post)

Bawdy Southern belle of TV's 'Golden Girls'
(By Emma Brown, The Washington Post)

HBO's 'Neistat Brothers': Musings worth meditating on
(By Hank Stuever, The Washington Post)

'Thurgood' does justice to the man
(By Peter Marks, The Washington Post)

A young woman's exhaustive search for love
(By Carolyn See, The Washington Post)

More Style

LIVE DISCUSSIONS
John Kelly's Washington
Post Metro columnist John Kelly chats about Washington's offbeat stories and the people, places and things that don't get on the front pages.
(John Kelly, washingtonpost.com)

First Things First -- Dan Steinberg on the latest sports news
(Paul Williams,Dan Steinberg, washingtonpost.com)

Carolyn Hax Live: Advice columnist tackles your problems
(Carolyn Hax, washingtonpost.com)

Personal Tech Live with Rob Pegoraro
(Andrea Caumont,Rob Pegoraro, washingtonpost.com)

The Live Fix with Chris Cillizza
(Chris Cillizza, washingtonpost.com)

More Live Discussions


Leadership, or grandstanding?
IN THE DEBATE over illegal immigration, most of the passion, and the vitriol, comes from opponents. Unfortunately, they tend to be better at decrying and denouncing the problem than solving it. So it was no surprise that at a forum on a proposed day-laborer center in western Fairfax County the other...
(The Washington Post)

Fudge factor
A proposal by Rep. Marcia Fudge would gut the new congressional ethics office.
(The Washington Post)

Perfect in our book
Baseball shows Washington real contrition and forgiveness.
(The Washington Post)