Burlington Coat Factory will set up shop in the former Mervyn’s store in Elk Grove in the spring, Elk Grove Economic Development Corp. officials said Friday.
The New Jersey-based chain of 414 discount department stores opened a new store last March in a former Target store at County Fair Fashion Mall in Woodland.
The Elk Grove store will be located in the Marketplace 99 shopping center at Bond Road and Highway 99 and will employ about 70 people payday loans guaranteed no fax.
Burlington Coat Factory entered this market in 2001 with a store in south Sacramento on Florin Road.
Burlington Coat Factory also has a store in Citrus Heights, located in a former Furniture World.
There’s always a coffee war brewing somewhere. The latest one has small, neighbourhood espresso shops kicking grinds in the face of Starbucks, the grande operator of the indie coffee business.
Apparently, independent designer coffee shops – 25 new ones opened in Toronto this year – are stealing coffee drinkers from Starbucks faster than you can say "fratta-latte," so the Seattle-based corporation is fighting back. And it’s using the independents’ playbook as its guide.
Earlier this year, Starbucks opened up a shop in the Capitol Hill neighbourhood of Seattle. However, the new Starbucks wasn’t called Starbucks. The sign outside read: "15th Avenue Coffee and Tea" and in much smaller letters below were the words: "Inspired by Starbucks."
Now it appears more "Inspired by Starbucks" shops may pop up in neighbourhoods across the United States – not Canada, for the time being, though, according to Starbucks – as the coffee giant hopes to perk up enthusiasm among what could well be described as the anti-Starbucks crowd.
According to independent shop owner Stuart Ross, Starbucks has no one to blame but itself for the competition.
Without the corporate coffee giant, the owner of Bull Dog Coffee at Granby and Church streets says a majority of coffee drinkers would likely never have been turned on to espresso-based drinks in the first place.
"They (Starbucks) are the ones who told us, `Now is the time to drink Americanos, macchiatos,’" Ross says.
"What they’re good at is marketing, which paved the road for places like mine."
Starbucks Coffee Canada calls the company’s new cafés "a celebration of each community’s personality and culture," and "learning labs for us to incubate ideas and evaluate various concepts."
Starbucks says the new locations have been received with community enthusiasm, but a number of Seattle’s independent café owners weren’t so sanguine.
A week before the opening of 15th Avenue Coffee and Tea, the Seattle Times reported that owners of at least two independent shops, Seattle Coffee Works and Victrola Coffee Roasters, spotted Starbucks’ employees on research trips lingering in their stores.
"They spent the last 12 months in our store up on 15th (Ave.) with these obnoxious folders that said, `Observation’ written on them," said one independent owner.
The U.S. dollar’s gains may end in the middle of 2010 as central banks shy away from adding greenbacks to their reserves and the Federal Reserve raises rates at a slower pace than investors expect, Barclays Plc said.
Long-term demand for dollars is set to weaken after the currency’s share of global reserves added in the third quarter slid to less than 30 percent, a decline “unprecedented in a period of U.S. dollar weakness,” Barclays said in a note to clients. The dollar stemmed 11 months of declines versus the 16 most-traded currencies in December, gaining against all but two, after investors increased bets the Fed will remove monetary stimulus next year as the economy recovers.
“We see the dollar strengthening in the first six to nine months of 2010 when the focus is on liquidity withdrawal and tightening of rates,” said Steven Englander, chief U.S. currency strategist at Barclays in New York, in a telephone interview. “Once the market gets past this initial fear of tightening, the reality will be that the Fed isn’t going to be tightening very fast and we’ll see dollar selling again.”
The Dollar Index — which measures the currency against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona — has dropped 4.2 percent this year. It has climbed 4.1 percent in December and traded at 77.928 as of 9:28 a.m. in Tokyo. The U.S. dollar has registered its biggest declines against the Brazilian real, Australian dollar and South African rand dropping by more than 25 percent this year against each.
Global Reserves
Global reserves probably gained by about $180 billion in the third quarter with U.S. dollar-denominated reserves accounting for about $50 billion or less than 30 percent, Barclays estimated, using data from the International Monetary Fund and U.S. official reports.
The bank adjusted for changes in the value of currencies over that period to capture “actual buying and selling, rather than passive gains and losses” Englander wrote in the note.
The dollar declined against all but the yen among the 16 most-active currencies this year. That prompted China and Russia, holders of the world’s biggest and third-biggest currency reserves, to express concern about their U payday loans with no faxing.S.- denominated investments.
“Emerging market central banks are selling their local currencies and buying U.S. dollars to prevent appreciation of their currencies,” Englander said. “They’re avoiding having a bigger concentration of U.S. dollars in their portfolio by turning around and selling dollars against the euro and other currencies.”
Canadian Dollars
Canada’s Finance Minister Jim Flaherty said this week that China, may be poised to buy Canadian dollars as it seeks to shield its $2.3 trillion worth of reserves against the U.S. dollar’s decline. Russia’s central bank said last month it will add Canadian dollars to its reserves and may include more currencies to reduce its dependence on the U.S. dollar.
Declines in the greenback mostly stalled this month as traders bet on a 48 percent chance that Fed Chairman Ben S. Bernanke will increase the target rate for overnight lending between banks by June. Policy makers will end most emergency lending programs and debt purchases by March because of “improvements in the functioning of financial markets” and stabilizing labor markets, the Federal Open Market Committee said on Dec. 16.
Unemployment, Retail
Reports this month showed the U.S.’s jobless rate unexpectedly fell, retail sales beat forecasts and purchases of existing homes rose to the highest level in almost three years in November. Benchmark rates are as low as zero percent in the U.S. compared with 8.75 percent in Brazil and 3.75 percent in Australia. They are 0.1 percent in Japan and 1 percent in the Euro region.
Barclays forecasts that the Federal Reserve will begin raising rates at the end of the third quarter of next year, while the European Central Bank’s tightening cycle will begin at the start of 2011. The Fed’s target rate will reach 2 percent by the end of 2011, Englander said.
Barclays on Dec. 10 forecast the euro will fall to $1.40 in six months before rallying to $1.45 by the end of 2010. The euro traded at $1.4333 today.
Question: How do REITs work? And is it prudent to have them in a diversified retirement portfolio? –M. C., Indianapolis, Indiana
Answer: After going from rock stars of the investing world during the real estate boom to candidates for a VH1"Where Are They Now" episode the last two years, REITs are generating some interest again.
Gee. Could it have anything to do with the fact that, after slumping badly in 2007 (-17.8%) and 2008 (-37.3%), REITs have been on a bit of a roll again with a year-to-date return of more than 25% through mid-December?
Well, whatever has spurred your interest, the answer to your first question is that REITs, or real estate investment trusts, are essentially companies that own and operate income-producing properties that could range from office buildings to hotels to malls to apartment buildings or a combination of these or other facilities.
Since you can buy many REITs just like stocks, investing in them allows you to gain exposure to the real estate market without the hassle of having to buy, manage and sell actual bricks and mortar. And because for tax reasons REITs must distribute 90% or more of their taxable income to shareholders annually as dividends, many investors looking for steady income from their investments also gravitate toward REITs.
As for whether it’s prudent to include REITs in a diversified retirement portfolio, I’d say the answer depends on why you’re buying them.
If you’re considering REITs now because you think their recent gains might be a prelude to another real estate feeding frenzy, I would urge extreme caution. Much of the REIT rebound this year is what you might call a "relief" rally. Things were looking so bad both in terms of property values and availability of financing in the commercial real estate market earlier this year that many REITs were knocked down to Armageddon prices. As investors came to believe that maybe conditions weren’t quite so horrendous and that the correction in REIT values had perhaps been overdone, REITs enjoyed a nice little pop.
But the residential and commercial real estate markets still face daunting challenges. That’s not to say that REITs don’t have the potential to deliver decent returns from here. Indeed, some have been able to raise capital that may allow them to pick up properties at bargain-basement prices. I think it would be foolish, though, to buy into REITs expecting them to retrace their recent trajectory.
But if you want to invest a portion of your retirement savings in REITs as part of a long-term strategy to improve your portfolio’s performance by enhancing its diversification, then I’d say yes, it could be prudent to find a place for them quick guaranteed personal loans. That’s because research shows that adding a small helping of REITs to an already diversified portfolio may be able to slightly boost returns without increasing volatility.
Be aware, however, that this approach assumes you’ll invest a modest portion of your assets in REITs and that you’ll hold them during good and bad periods. And to get the full benefit of the additional diversification they offer, you must be willing to rebalance periodically so REITs continue to account for the same percentage of your portfolio that you set originally.
That means you’ll probably be selling off part of your REIT stake after years in which they’ve soared (like 2003 and 2004), and adding to it after lousy years (like 2007 and 2008). If you don’t have the discipline, or the stomach, to do this, then adding REITs probably isn’t such a hot idea.
Keep in mind too that while REITs’ dividends can be a plus for investors looking to draw income from their retirement portfolio, those dividends can be cut in hard times. Some REITs did exactly that during the financial crisis. What’s more, a December 2008 "revenue procedure" from the IRS gave REITs the option of paying out up to 90% of their dividends in stock rather than cash this year. I think it’s fair to say most income investors would prefer hard currency to more shares of stock. It’s unclear whether, one way or another, REITs will have access to that option again in the coming year.
You should also know that, unlike payouts from most companies, REIT dividends do not generally qualify for the 15% maximum tax rate for qualified dividends. So if you do opt for REITs, you may want to hold them in a tax-advantaged retirement account such as an IRA or 401(k).
All things considered, though, I think REITs can still play a role in a well-rounded retirement portfolio. But unless you know how to analyze the prospects for individual REITs, I’d recommend investing in them through a mutual fund or ETF that owns a diversified portfolio of REITs. You can find both on our Money 70 list of recommended funds.
Bottom line: If you want to make REITs part of your long-term investing strategy for your retirement savings, go ahead. Just be sure to take a prudent approach, as I’ve outlined.
CARACAS–A senior minister and close confidant of Venezuelan President Hugo Chavez resigned Sunday in a growing banking scandal that has triggered a purge of businessmen with ties to the government.
In a move likely to win him support, Chavez said he had accepted the resignation of Science and Technology Minister Jesse Chacon, whose brother was arrested Saturday following the closure of the bank he headed.
"Yesterday Jesse Chacon asked if the best thing for the government would be that he offered his resignation and I said I believe so. He will have to leave the government," Chavez said in his weekly television show where other ministers were among the audience.
Chacon took part in a 1992 coup that sought to bring Chavez to power and both men were jailed for their actions. He has held numerous posts under Chavez.
Police have also arrested Giuzel Mileira, the director of the Banco Real, bringing to eight the number of bankers in custody.
Another banker with government ties fled to Miami, Chavez said.
Those detained include a businessman who made more than one billion dollars partly by selling corn to government-subsidized supermarkets.
Venezuela last week closed the seven small banks for regulatory breaches including capitalization problems and unexplained funds, causing market turmoil as Chavez threatened to nationalize the financial system.
Most analysts agree that Chavez is unlikely to risk instability through a widespread nationalization of the country’s best-capitalized and profitable banks.
The rise of a new mega-rich elite during his decade in office has been a liability for Chavez, who wants to build a socialist society in Venezuela and took office in 1999 promising to end corruption.
The arrest of executives widely considered to be corrupt is likely to be popular with Chavez’s supporters before legislative elections in September.
More detentions are expected because authorities have issued 27 warrants including nine requests to Interpol for international arrests.
Reuters News Agency
Prime Minister Gordon Brown’s ruling Labour government is increasingly being blamed by voters for Britain’s “economic quagmire” even as the recession shows signs of easing, ComRes Ltd. pollster Greig Baker said.
“There is a high level of personal animosity towards Gordon Brown and regardless of the economic figures, that’s going to be very, very difficult for Labour to get past,” Baker, research director at the U.K. polling company, told Bloomberg Television today. “The voting public is increasingly blaming the government for the economic quagmire we’re in.”
Data today showed the British economy shrank 0.3 percent in the third quarter, less than previously estimated, in the nation’s longest recession on record. Brown is fighting to rebuild support in time for an election due by June. Labour narrowed Conservative Leader David Cameron’s lead to six points in an Ipsos Mori poll published Nov. 22.
“If the government can claim that they steered the economy through recession, that will become their overbearing election theme,” Baker said. “It may change the political narrative of the time but I don’t think that will be enough to overcome the personal animosity that exists towards Gordon Brown. People simply don’t like him.”
Cameron pledged to work “night and day” to win a majority in Parliament at the next U no checking account payday advance.K. election after the Ipsos Mori poll in the Observer newspaper showed the Conservatives with the narrowest lead this year. That suggests he may fail to clinch enough lawmaker seats to control the House of Commons.
‘Anybody But Gordon’
“Looking at the poll over the weekend, it was slightly out of kilter with some of the others we’ve seen recently,” Baker said. “What it does suggest is that there’s not a huge affinity amongst the voting public with David Cameron. Basically, it’s an ‘Anybody but Gordon vote.’”
ComRes’s most recent poll, finished on Nov. 12, showed the Conservatives with a 14-point lead. Cameron needs a lead of about 10 percentage points to win a clear majority, according to Anthony Wells of pollsters YouGov Plc. A minority government, known as a ‘hung parliament,’ may face greater difficulty in tackling Britain’s record budget deficit.
The U.K. economy’s contraction was revised from a 0.4 percent drop, the Office for National Statistics said today in London. The Bank of England forecasts Britain will exit the recession in the fourth quarter. The economy will expand 2.2 percent in 2010 and 4.1 percent in 2011, according to policy makers’ projections published on Nov. 11.
The U.S. jobless rate unexpectedly jumped to 10.2 percent last month, a 26-1/2-year high, adding to pressure on the Obama administration to do more to tackle unemployment even as signs of recovery mount.
The Labor Department said on Friday that employers cut 190,000 jobs in October, more than the 175,000 markets had expected but fewer than the 219,000 jobs lost in September.
Job losses for August and September were revised to show 91,000 fewer jobs were lost than previously reported, taking some of the sting out of the report.
While the revisions hinted at some improvement, economists had expected the jobless rate to rise to 9.9 percent from September’s 9.8 percent. A wider gauge of labor-market slack that includes unemployed Americans who have given up looking for work hit a record 17.5 percent.
Speaking at the White House, President Barack Obama said the administration was considering infrastructure investments and business tax cuts to aid the economy’s recovery.
“I can promise you that I won’t let up until the Americans who want to find work can find work and all Americans can earn enough to raise their families and keep their businesses open,” he said. For a graphic of the jobless rate over time, please see: here
Stocks on Wall Street ended higher after initially falling as investors looked past the jump in the jobless rate and focused instead on the moderation in payroll losses. .N
U.S. Treasury debt prices rose as traders saw the data as supporting a prolonged period of low interest rates.
“Unfortunately, the problem is becoming deeper and more protracted,” Mohamed El-Erian, chief executive of bond giant Pacific Investment Management Co (PIMCO) told Reuters.
“It’s not just the increase in the headline number,” he said. “It’s also about the longer-term nature of unemployment, the increase in underemployment and the prospect for only a very gradual recovery,” he said.
While Obama sees job creation as his top priority, the scope for further steps to boost the economy is limited by record budget deficits.
Rising unemployment could pose problems for the Democrats who control Congress as they head into elections in November 2010. This week, Republicans wrested control of two state governorships away from Democrats in races where the weak economy figured prominently.
“President Obama promised jobs during his campaign for president and the elections in Virginia and New Jersey on Tuesday were a clear referendum on his failure to deliver on this promise,” Republican National Committee Chairman Michael Steele said in a statement reacting to the jobs report.
ECONOMY GROWING, LABOR MARKET LAGS
The U.S. economy grew at a 3.5 percent annual rate in the third quarter, likely ending the most painful recession in 70 years, but the jobs data suggested employers are wary of the prospects for a strong, sustained recovery.
In the past, Bank of America Chief Executive Officer Ken Lewis has received an annual salary of $1.5 million. But this year he will get nothing.
That means no salary, no bonuses. In fact, he will have to repay Bank of America Corp. (BAC, Fortune 500) the more than $1 million he has already earned in his final year on the job.
Lewis agreed to the deal on Thursday after the Treasury department’s pay czar, Kenneth Feinberg, "suggested" it to him, said Bob Stickler, a spokesman for the bank.
Stickler added that Lewis "felt it was not in the best interest of Bank of America or him to get into a dispute with the pay master."
Lewis, who announced last month that he will retire at the year’s end, will still have $53 million in pension benefits waiting for him. The outgoing chief will also have other stock awards and deferred compensation for a total $69 million payout, said Stickler.
Feinberg does not have authority to modify compensation awarded before 2009, which includes Lewis’ retirement package and stock holdings from a four-decade career at the bank.
But Stickler asked, "Since when does law apply to this administration?" As a result, he said Bank of America is unsure whether or not Lewis’ retirement package is under review by the government.
Wall Street has been waiting for Feinberg to announce rules on compensation at the seven firms that have received large government loans last year as the financial system neared collapse. And while firms are expecting Feinberg to crack down on payouts, a complete cut is bold.
The deal comes before the Charlotte, N.C.-based bank announces its third-quarter earnings on Friday morning. Analysts polled by Thomson Reuters expect earnings per share to decrease by 21 cents from a year ago when they were flat.
The U.S. unemployment rate may rise above 10 percent as employers cut payrolls further, Federal Reserve Bank of St. Louis President James Bullard said.
“Unemployment is leveling off but we still may be headed toward double digits,” Bullard told reporters today after a speech in St. Louis. The rate was 9.8 percent in September, the highest since 1983.
“Labor markets are very weak,” Bullard said. “It is disturbing, and I find it upsetting that we are still losing jobs payday loan company. We would like to see nonfarm payrolls turn positive before the end of the year. I don’t know if we will get there or not.”
The economy lost 263,000 jobs in September, more than economists forecast. September’s losses brought total job reductions since the recession began in December 2007 to 7.2 million, the biggest decline since the Great Depression.
For a third time this week, TD Bank’s 6.5 million U.S. customers cannot see real-time updates on their account transactions and balances. And even that’s an improvement.
In a statement released Thursday, TD Bank (TD) said customers can only see their account balance and transactions as of Wednesday evening because the bank is "experiencing an unusual delay in [its] overnight batch postings."
Earlier Thursday, customers couldn’t even log in to their online accounts. But TD Bank spokeswoman Jennifer Carlson said that access was restored as of 3 p.m. ET.
TD Bank, which holds $80 billion in deposits, said it expects to complete processing transactions and have current balances later in the day, and will reverse fees, charges or interest incurred because of the disruption.
The system first malfunctioned Monday night when the Toronto-based bank tried to integrate its operating system with New Jersey-based Commerce bank, which it acquired last year. TD Bank said the problem was resolved Tuesday, resurfaced Tuesday night, was resolved again Wednesday, and then recurred.
Carlson said that "higher-than-normal transaction volumes are compounding and having to play catch up" and ultimately causing a "computer glitch."
She added that the bank, which has more than 1,000 branches along the East Coast, is "posting transactions as fast as we can using the system we have in place" and hopes customers will be able to see real-time transactions and balances later Thursday no teletrack payday loans.
Carlson said that "a vast majority of customers" can still access their funds, including Thursday’s deposits, continue to make transactions, and have their automatic payments completed. She couldn’t say exactly how many customers have that access.
Last week, the bank’s New England and upstate New York branches changed their name from TD Banknorth to TD Bank, bringing more than 1,000 of its units between Maine and Florida under the same name.
Lauren Ventola, 23, who started using the bank seven years ago when it was still called Commerce Bank, hasn’t found the bank to be as convenient as its "America’s Most Convenient Bank" slogan. As a medical student on the Caribbean island of Grenada, she relies on online banking to manage her finances.
"With the TD Bank Web site down I can’t check statements, make sure rent money has cleared or determine my credit card balance," Ventola said when she couldn’t log in at all.
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