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Monitoring Personal Finance
By Sophia Nadal
We have often heard about people who are known to be experts at managing finances at office but financial matters at home are relegated to a backseat. Maintaining accounts seems to be an intimidating thought for most of us who are not accountants. However, it is not a feasible idea to go about dealing with a problem this way. What is required is to take the bull right by its horns.
One of the important determinants of the personal finance is credit. In the domain of finance the credit score holds the key to the success. In the absence of respectable credit score, you would not be able to borrow money or obtain a home loan or a vehicle loan. The importance of this number can be judged by the fact that if this number goes wrong then it has the ability of leaving your goals unfulfilled.
Your credit number is directly associated with the credit that is currently in your name. Individuals who abuse credit cards and rack up high bills often have poor credit scores. Remember, it is not the amount your charge that can become detrimental to your credit, rather it is the amount you keep on your credit cards that can
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Midday Market Roundup 21/11/08
The market is down 113 - not good given the 23% fall over the last 11 days in one of the worst legs down this year. Outperforming the 163 point fall predicted by the SFE Futures this morning. Resources underperforming again after yesterday's massive sell-off. BHP and RIO down 3.8% and 4.5%.The Dow was down another 444 points (5.6%). Up 190 at best. Down 483 at worst. & #160;S & #38;P 500 down to its lowest level in 11-years - down 52% off highs - worst yearly decline in 80 years. Fears of deeper and longer recession. Lack of leadership felt from Treasury. Auto makers bailout scuttled by congressman until a further meeting in Dec. Jobless claims higher-than-expected - the highest levels since 1982. 11th month in-a-row of declines in non-farm payrolls. Businesses looking to cut expenses to preserve company performance with the economy rapidly turning down. The index of leading indicators down for the 3rd time in 4 months. & #160;Manufacturing in the Philadelphia region contracted at the fastest pace in 18 years. Speculation that General Electric is looking for an equity injection from global sovereign wealth funds. Citigroup gets a capital injection from Saudi Prince. A & #36; down with falling equities and a demand slump for resources - fell 4.2% against the US dollar last night. & #160;Material stocks down 3.87% - both BHP and RIO & #160;down 13% and 12.9% in ADR form respectively. Oil price down & #36;4.78 to a 3-year low to & #36;49.86. Gold up & #36;12.70 to & #36;748.70. Financials down 10.5% - down 68% for the year. Citigroup down 26%.All Ords down 50.9% off high. In 1773/4 it fell 59.4%. The All Ords has dropped from being worth & #36;1.689 trillion to & #36;821bn...a loss of & #36;868m. Total market losses (all stocks not index stocks) of & #36;905bn.Making the news today...Telstra (TLS) held its AGM this morning - says it is on track to meet market guidance (expects a 6-8% increase in EBIT and 3-4% rise in revenue) and that the board hasn't decided whether it will lodge a bid for the federal government's proposed & #36;4.7bn national broadband network. They want clarity from the government that its infrastructure and retail units won't be separated.Woodside Petroleum (WPL) getting canned after the oil price hit a 3 year low overnight. WPL's share price is strongly correlation to the oil price.Fortescue Metals (FMG) doing well after announcing it has signed a sales deal for an extra 3.5m tons of iron ore a year with a Chinese steel mill.Sims Group (SGM) has held its AGM - expects a net profit of between & #36;120m- & #36;140m for the 1H, slightly higher on the previous year.Gunns (GNS) announced it will not seek to renew its sovereign risk agreement for wood supply to its Bell Bay pulp mill project.Australian Infrastructure Fund (AIX) - QLD Airports announces a 6.8% passenger increase in October.AXA Asia Pacific (AXA) has released its Strategy Briefing announcing it had & #36;724m surplus capital available at the end of October and has accessed & #36;280n if debt facilities. They highlight that they are not immune to the current economic environment.Cudeco (CDU) is in a trading halt.Goodman Group (GMG), Macquarie Group (MQG) and Japan Representatives have established two wholesale, unlisted logistics property funds that have attracted & #36;106m thus far.Paladin Energy (PDN) has increased uranium resources and reserves at its Kayelekera project in MalawiNexus Energy (NXS) has scrapped its plans to take a production-and-storage vessel from Viking Shipping.Albidon (ALB) in a trading halt - will announce details of a capital raising.Babcock & #38; Brown Wind Partners (BBW) has announced corporate governance changes.Base metal stocks all down on lower metal prices. Murchison Metals (MMX) down 6.2%. Indophil Resources (IRN) down 16.7%.All the big industrials are down bar Wesfarmers (WES) which is up 1.9% after yesterday's 9.2% fall.
Goodman Fielder/SP AusNet
Australia's largest locally-owned food company, Goodman Fielder is looking at a 15% drop in first half 2009 earnings, and probably a similar level for the full June 30 year.The company's annual meeting in Sydney yesterday was told the group was on track to meet analysts' forecasts for a lower profit. & quot;We anticipate that our first half profit results will be around 15 per cent lower than the prior corresponding period due to time lags in the recovery of an additional & #36;100 million of increased commodity costs and the impact of increased private label volumes, & quot; chairman Max Ould told the meeting. & quot;In the second half however we will start to see the benefit of retreating commodity pricing and we expect the company to exit the year in a solid position. & quot; & quot;We are now four months into the current financial year. & #160; & quot;Sales are up 12% but we anticipate that our first half profit results will be around 15% lower than the prior corresponding period due to time lags in the recovery of an additional & #36;100 million of increased commodity costs and the impact of increased private label volumes. & quot;Therefore at this time we are comfortable with the current market expectations of our reported NPAT earnings in the range of & #36;191 million to & #36;204 million. & #160; & quot;A further update will be provided at the time of our first half results. & quot;Those higher commodity costs, along with energy, remain key variables for the company.The expected & #36;100 million increase this year will make more than & #36;400 million in extra commodity costs since the 2007 financial year, plus millions more in higher energy charges. & #160;The company incurred higher commodity costs of & #36;240 million in 2007-08.The company incurred a & #36;30 million bill for higher energy transport and packaging costs which were recovered through price rises and cost cutting.The market took all this in its stride and the shares closed down 3.9% at & #36;1.47, a loss of 6c.In what was a very difficult year in 2008, the company reported a 10.2% increase in revenue to & #36;2.675 billion and net profit, on a normalised basis, rose marginally to & #36;220.7 million.After a series of one-off costs (mainly restructuring) Goodman Fielder, earned a net profit of & #36;27.7 million in 2007-08.Mr Ould told the meeting that the credit crunch had had a severe impact on the availability and cost of credit which is likely to constrain many businesses in the near future. & quot;Earlier in this calendar year we were able to refinance maturing debt facilities with a competitively priced & #36;670 million long term debt facility which has extended our debt maturity profile and maintained the company on a secure financial footing. & quot;In addition, we recently finalised a & #36;100 million debt facility to provide further flexibility for short term capital initiatives, & quot; he said.
Our Second Worst Bear Market: Recession Yes, But How Deep
Global recession is now a given. Australia is also headed for at least a mild recession.The key issue is the depth and duration of the slump.At the moment, leading indicators for global and Australian growth are still in free fall.The AMP's Dr Shane Oliver says much of this bad news has already been factored into share markets, but as the news remains bleak shares are still under pressure.
October Was Tough For Japan
The month of October continues to shatter economies around the world, or rather the events of September and the 15 months leading up to it, continue to do so.The failure of Lehman Brothers and the spate of rescues in the US and Europe in the last two and a bit weeks of September, should now be seen as the major dislocation of the credit crunch, which started as the US subprime mortgage debacle.Not even the outbreak of the crunch in August 2007, nor the bailout of Bear Stearns in March of this year, have come close to causing the global economy, and its constituent economies around the world, the same sort of devastating blow.Bear Stearns was a warning, but the Fed and JPMorgan pulled us through, but no one thought that when Lehman Brothers was tottering, that it would go. But go it did, down the tube to devastate financial markets, confidence and set off a chain reaction of events still clanging their way through financial markets.US retail sales, new home starts and new home building permits all down by a record amount, or to record lows in October; US unemployment soared 254,000 (to be revised upwards) and still thousands of jobs are going every day across the US, and increasingly in Australia and Europe and parts of Asia.Now Japan, which is already in recession, with two consecutive quarters of mild contractionary activity, faces a more damaging slump.The engine for the country is its export machine, allied with the huge domestic manufacturing sector set up to arm and replenish the Toyotas, Nissans, Hondas Canons, Fujitsus and other industrial giants.If the engine splutters, the Japanese economy backfires: it's what has been happening at increasing pace since mid year: a fall in August, a small recovery in September, and now the worst slump in almost seven years.The Japanese Finance Ministry reported yesterday that exports fell 7.7% in October from October 2007.That was the biggest drop since December 2001 as the US recession was deepening.That was after a rise of 1.5% in September.It follows the first effective deficit in 26 years, which was logged in August this year, when the economy was hit by high import prices and weak demand for Japanese goods overseas.The October figures were the first deficit for the month in 28 years, reflecting a fall in exports to the rest of Asia.Shipments to China, which had supported demand even as shipments to the US and Europe had declined, fell 0.9%, marking the first decline since May, 2005.Exports to the US and Europe posted double-digit declines year-on-year.Slumping car exports, shipments of consumer electronics, industrial foods, trucks, computers: a wide range of products have been hit by the slump in the US and European economies in particular.On top of this, the rising yen continued to hurt exports: it's risen 22% against the euro since September and around 9% against the US dollar in the past couple of weeks.Although the slump in US car sales is hurting, so too is falling demand in Japan, and in other markets.That's why Toyota is expecting to earn at best & #36;US200 million in profits in the six months to next March (but that now looks like a loss). Nissan this week said its second half profit would be eliminated by the slump in the US and the higher yen.Growth in China, Japan's largest trading partner, is slowing (hence the huge reflation package revealed last week and three rate cuts in two months).So it shouldn't have been a surprise that the level of exports to China fell for the first time in three years, or that exports to Asia as whole fell 4% in the month.Shipments to Europe plunged 17.2%, the biggest fall since December 2001 and by 19% to the US (although they were down 22.8% in August).Imports rose 7.4% (despite the higher value of the yen and the continuing fall in oil prices).That gave Japan a & #36;US666 million trade deficit, the third this year, a rare event for the export machine.
US 1: New Lows
Fears of deflation are starting to stalk financial markets, especially in the US.Investor confidence in Australia and the US in some of our leading companies has suddenly become very delicate, helped of course by the shorts.The plunge Wednesday night on Wall Street came mostly after the release of the Fed's minutes of its last meeting which cut rates to 1%, but raised the prospect of price deflation: before that the CPI for October had echoed the producer price movement for the same month and fallen by a record.Overnight Thursday the S & #38;P 500 slid 6.7% to 752.58, under the low of 776.76 reached during the bear market in 2002.The Index extended its 2008 tumble to 49% and is poised for the worst annual decline in its 80-year history.The S & #38;P 500 extended its plunge from an October 2007 record to almost 52 percent in the worst bear market since the Great Depression. & #160;Bloomberg said that concern the recession is worsening was spurred after jobless claims approached the highest level since 1982, & #160;(542,000 new claims were lodged in the US last week).The index of leading economic indicators fell for a third time in four months and the Federal Reserve said manufacturing in the Philadelphia area shrank at the fastest pace in 18 years.Seventeen companies in the S & #38;P 500 lost more than one-fifth of their market value today, as all 10 of the index's main industry groups slid at least 3.5%.Interest rates fell sharply, oil went under & #36;US50 a barrel in & #160;New York and riving this the fear of slowdown and possible deflation next year.The day before the core CPI was down 0.1%. The falls in the headline numbers (minus 1%) for it and the producer price index, were the largest since records were started back in 1947.US investors are getting a glimpse of what 2009 could look like: badly recessed (the new home starts and building permits fell to their lowest levels since 1947 as well in October) and deflated as prices fall sharply into negative territory and consumers and business cut purchases because they know things will get cheaper.Already we are seeing that the real market Federal Funds rate isn't the official 1%, but well under that, around 0.3% on some days. Three month US treasury note yields fell to 0.015%, but that's not yet a record low: that was 0.0% in September when Lehman Brothers collapsed.With prices deflating, it means that interest rates will be high (in relative terms) and monetary policy will be restrictive, which in turn is bad news.For years the big watchword was & quot;inflationary expectations & quot;.Well, according to more and more economists, & quot;deflationary expectations & quot; are in danger of taking hold in the US, just as they did for years in Japan from 1990 onwards.It's a horrible expectation: consumers hold back purchases (as do companies) so retailers and others start discounting their selling prices to get business; consumers refuse to buy, so the discounts become bigger.Wednesday's consumer price figures showed the falls in almost all categories of discretionary spending. A headline fall of 1% in the month. The largest ever. Core inflation down 0.1%, a surprisingly large fall.The Fed said this in its minutes of its last meeting: & quot;The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. & quot;Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for US exports. & quot;Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. & quot;As consumers account for around 70% of US economic activity, the Fed is worried. Inflation is no longer a curse, but a virtue.On inflation, the Fed said & quot;Inflation was likely to diminish materially & quot; in coming quarters but there was disagreement about whether it would fall to dangerously low levels. & quot;Participants generally expected inflation to decline to levels consistent with price stability. & quot;Others, though, saw a risk that if resource utilisation remained weak for some time, inflation could fall below levels consistent with the Federal Reserve's dual mandate for promoting price stability and maximum employment, a development that would pose important policy challenges in the light of the already low level of the Committee's federal funds rate target. & quot;In other words, price deflation and the possibility of a very restrictive monetary policy, that will further constrain inflation and the level of activity.There now seems to be a belief emerging that next year will be worse than forecast. & #160;Instead of the depth of the slump being felt this quarter (US growth is forecast to contract by 3% or more according to Bloomberg and other surveys), there won't be much of a change in 2009.Worries about the possible collapse of the US domestic car producers, GM, Ford and Chrysler added to the problems. Queries are again being raised about the health of some banks.So 14 of the S & #38;P 500 stocks had falls of 20% or more in their shares prices on Wednesday: one of the biggest losers was Berkshire Hathaway, Warren Buffett's company. & #160;It has had a bad time since reporting a 77% plunge in third quarter earnings, thanks to lower returns from insurance and the markets.But suddenly there's a touch of tarnish around the market's talisman: Berkshire shares fell by their biggest amount in 23 years Wednesday: down & #36;US11,500 to & #36;US84,000. That was a fall of more than 12%.The credit insurance securities on debt of his company have risen in recent days: it seems no one is exempt from the increasingly sceptical market as the assets are crunched and companies fall over.The S & #38;P 500 slipped 6.1% to 806.58, extending its 2008 retreat to 45%.But there were some more terrible falls: the once mighty Citigroup's shares plunged 23% to & #36;US6.40, a 13 year low. & #160;Citigroup has a market cap of just over & #36;US35 billion, but it received & #36;US25 million from the US bailout fund, so the rest of the huge bank is valued at just & #36;US10 billion!Our banks have a higher market value when Citigroup is valued that way!GM shares fell 9.7%, (it's worth just & #36;US1.7 billion) Ford 25% (now valued at just & #36;US2.9 billion), General Electric was off 10%, Yahoo 21%, Goldman Sachs 10%, Target, the big retailer, more than 10%, Best Buy, the country's biggest surviving electrical retailer shed 11.4% (its debt was downgraded).Aluminium giant, Alcoa shed nearly 14%.In Germany though, signs of similar worries emerging as BASF, Europe's biggest chemical giant, saw its shares fall 14% and more as it announced plans to sack 20,000 people and close 80 plants around the world over the next two years. It will cut output at a further 100 plants.That came a week after Siemens, the big German engineering firm (also the biggest in Europe), and revealed plans to close plants and sack thousands of workers.BASF's big US competitor, Dow Chemicals, has warned that it is preparing to restructure its businesses in the US and globally by year's end.The cause, a sudden slump in orders for this year and next, just as chipmakers like Intel revealed a similar situation last week.The slump in the electronics sector is now so widespread that the Semiconductor Industry Association has just forecast a 5.6% fall in annual sales for its members in 2009 in a clear indicator that the foundations of the computing and electronics industries are being strained by recession.That's why the shares of electrical retailers around the world, such as Best Buy in the US, Harvey Norman and JB Hi-Fi in Australia and Currys and DSG in the UK have been sold off heavily in the past week or so.That can be seen in the forecasts for shipments of chips for mobile phones down 6.4%, and PCs down 5%: together they account for around 60% of total chip sales globally. & #160;
US/AUST
While America's starting to fear deflation and its horrible consequences, no such fears are being expressed here.Our inflation rate remains persistently high.I suppose it's one of the 'good' things of having a persistently hard to shake inflation problem that won't resolve itself until late next year at the earliest, or into 2010 when it comes back close to the 3% top of the Reserve Bank's range.But that will still be a lot higher than what we will see in the US next year.In fact those growing fears about deflation as expressed in the Fed's latest minutes, are vivid: & quot;Indeed, some saw a risk that over time inflation could fall below levels consistent with the Federal Reserve's dual objectives of price stability and maximum employment & quot;.It's going to be a fear we will hear more and more of from the US, and other countries in Europe and Japan, especially in the middle months of 2009 when the falls in inflation will look huge when compared to the peak months of this year.After 5% in the September quarter (and an average 4.7% for the RBA's version), we are expecting another similar outcome of 4.5% to 5.0% annual for this quarter, then a gradual but steady fall in 2009.In the US, headline consumer inflation is now running at an annual 3.7% for the year to October after the 1% fall in headline inflation.The core rate was down 0.1%, and then there were the comments in the Fed's minutes about the rising possibility of deflation next year.It's a timely reminder of the still significant differences between Australia and the US, for all the concerns were are facing here in the coming year.Not only did we see the large fall in inflation in America, but also a slump in new home starts (to a new low) and the lowest level of permits for new homes ever issued. & #160;That means housing will still be the main driver of the US slump in the early months of 2009.The credit freeze and recession has eliminated any hope that an outbreak of home buying will start moping up the overhang of unsold new and existing houses. & #160;That means further downward pressure on US house prices.According to the Fed's minutes, its outlook for 2009 sees the US economy growing in the range from -0.2% to 1% in 2009, after growth of 0% to 0.3% for this year.In fact the Fed now believes that the US economy will fall in the first six months of next year, after a contraction in the September and December quarters. & quot;The staff expected that real GDP would continue to contract somewhat in the first half of 2009 and then rise in the second half, with the result that real GDP would be about unchanged for the year. & quot;In 2010, real GDP growth was expected to pick up to near the rate of potential growth, as the restraints on household and business spending from the financial market tensions were anticipated to begin to ease and the contraction in the housing market to come to an end. & #160; & quot;With growth below its potential rate for an extended period, the unemployment rate was expected to rise significantly through early 2010. & quot;In fact the low range forecasts show Fed staff forecasting no growth whatsoever in 2009, with a recession from January through to December.Compare that with Australia where growth is slowing; that's not being denied by anyone, now.Australian non-farm growth (the RBA forecast) is 1% through most of the year at the moment. Factor the farm in and it will rise to perhaps 1.5% (the US forecasts include farm output).There are similarities with America: our new housing is recessed, but America's is depressed by a number of factors greater than the pace of activity here.We are yet to record the lowest level of building approvals (permits in the US) or see new home starts at an all time low, as the US did in October.The US Commerce Department said that US housing starts reached an annual rate of 791,000 last month, the lowest level since the department began tracking starts in 1959.The rate fell 4.5% from the revised reading of 828,000 in September.Building permits fell 12% to an annual rate of 708,000 in October, breaking the previous low of 709,000 in March 1975. The annual rate for September was revised to 805,000.US initial jobless figures hit a new record last week of 542,000, the highest figure for 26 years; manufacturing around Philadelphia fell to an 18 year low.While our retail sales are static to trending lower, America's are in free fall and the graphline is pointing downwards, almost vertically: ours is roughly horizontal.Figures out last Friday showed that US retail sales fell by a record 2.8% in October (down 2.2% if cars and petrol are excluded), and coupled with the miserable news on new home starts and permits, overall consumer spending this quarter and in the March quarter of 2009 will be negative.In fact US retailers are resigned to the worst Christmas season in decades with sales expected to be lower, even for food. At least ours are still hoping for some small growth, perhaps break even.But the Fed's minutes & #160;heard a much gloomier set of forecasts for this year and next, with the startling prediction that US unemployment will rise & quot;significantly through 2010 & quot;.Seeing almost 1.2 million US jobs have been lost so far this year, with half of those coming in the three months to October and pushing the rate to 6.5%, the highest for a decade, the Fed's forecasts are dramatic. & #160;A & quot;significant' increase in US unemployment is a major statement by a central bank.Our unemployment rate is 4.3% at the moment and the gloomier folk have it rising above 6%, perhaps topping 8% in 2010.But America's unemployment rate will be significantly higher than what we experience here, along with the possibility of price deflation.And to put things in further perspective, the minutes of the Bank of England meeting earlier this month that cut its rate by 1.5% revealed this week that the central bank's Monetary Policy Committee actively discussed a cut as much as 2%, before deciding on the small number.That makes the switch to 1% from 0.5% by the RBA in October and then this month's 0.75% cut from the original 0.50%, look modest. & #160;Although, given the litany of problems confronting the UK, you'd have to ask why not a 2% rate cut? & #160;
Midday Market Roundup 20/11/08
The market is down 106 - was down 159 at worst in-line with the 165 point fall predicted by the SFE Futures this morning.
Econ: OK To Lift Borrowings Says RBA
Reserve Bank Governor, Glenn Stevens says the economy is going to get lower and slower before it improves, but he's given governments the go-ahead to borrow if they are to keep the economy trundling along.He told a Melbourne business dinner last night that while the outlook is serious, the long term outlook has not gone bad.He indicated he had no objections to governments borrowing to help spend, so long as the spending was & quot;worthwhile, & quot;to help generate demand to soften the impact of the slump. & quot;If businesses remain focused on the long-term opportunities; if markets and commentators do the same; if banks remain willing to lend on reasonable terms for good proposals; if governments are able to so order their affairs as to continue supporting worthwhile & #160;- and I emphasise worthwhile & #160;- public investment (even if that involves some prudent borrowing); then Australia will come through the present periodThe banks also must be prepared to lend on & quot;reasonable terms & quot; for good projects & quot;We face difficult circumstances. & #160; & quot;Policy-makers and regulators both here and abroad will need to stand ready to act promptly to provide any necessary support for the financial system and sustainable economic activity. & #160; & quot;In doing so, though, we need not, and should not, abandon the well-established and tested policy frameworks that are in place. & #160; & quot;In fact, it is these that have given Australia, in particular, ample scope to do what is needed in the current situation. & quot;Given that we have that scope, and given the underlying strengths of the economy, about the biggest mistake we could make would be to talk ourselves into unnecessary economic weakness. & #160; & quot;Yes, the situation is serious. But, the long-run prospects for the Australian economy have not deteriorated to the extent that might be suggested by the extent of some of the gloomy talk that is around. & #160;Earlier yesterday, RBA Assistant Governor, Malcolm Edey told a Sydney conference yesterday of its latest forecasts in last week's Quarterly Monetary Policy Statement. & quot;Envisage a significant further slowing in the Australian economy from the pace recorded at mid year. & quot;Growth of non-farm GDP is now expected to reach a trough of 1 per cent in year-ended terms by the middle of next year, and to remain below trend for some time beyond that. & quot;Inflation is likely to fall. But it has to be emphasised that any forecasts in this environment are subject to a great deal of uncertainty, not least because the situation in world financial markets is still changing rapidly. & quot;In assessing the impact of all this on the Australian economy, it is important to take into account some significant factors working in the other direction. & quot;The official cash rate has been reduced by a total of 200 basis points since September. & quot;The fiscal package announced by the Government in October will provide a near-term stimulus of a bit under 1 per cent of GDP. & quot;An additional factor is the depreciation of the Australian dollar exchange rate, which in trade-weighted terms is down by about 25 per cent over the past three months. & quot;All of these factors will help to cushion the effects of the much more difficult global environment in which we now find ourselves. & quot;The statistics out yesterday painted a gloomy outlook though for the economy and the car industry.We had car sales slumping and an index of leading economic indicators sending a strong signal that the economy will slide into recession next year.The news on car sales was gloomy and will worsen.Like Europe and the US the past couple of months has seen a loss of faith by car buyers, although the reaction here is nowhere near the level it is in the US and Europe.Australian new car sales were 10.6% lower than in October 2007 and down 0.5% on September 2008. But the year on year fall has accelerated from the 7.2% slump in August of this year, from August 2007.European car sales were off 14.5% on the same month a year ago, and US car sales fell a terrible 32% in the same month on October 2007.So while our industry is hurting, it's nowhere at the level that the US or Europe is.Nor Japan for that matter, as the head of Renault-Nissan told the Wall Street Journal this morning that Nissan's second half profit (for the six months to March 30, 2009) would go to & quot;zero & quot; because of the slump in the US and Europe.And Toyota has revealed more cuts to its US production levels in coming months as it tries to remain in profit across its worldwide operations. It's adding non production days to its work timetable over Christmas New Year and thinking of eliminating some models from its 2009 line up because they can't be produced without losing money.While General Motors, Ford and Chrysler have the begging bowl out on Capitol Hill, Toyota, Nissan and other foreign producers are cutting output and battening down the hatches.A German industry paper said last weekend that Daimler would cut production of its flagship Mercedes vehicles by more than 100,000 next year because of the slowdown in sales in Germany, Europe and North America.Holden is already taking a gloomy view of the first quarter of next year with reports today that it had cut 25 production days from its work schedule. That means it is seeing lower sales, a situation that will be compounded by the disappearance of financiers, GE Money and GMAC from the end of the year.The ABS figures yesterday revealed that total sales of new motor vehicles were 80,366 last month, compared with more than 90,000 a year ago.The ABS said that when comparing October 2008 with September 2008, sports utility vehicles decreased by 2.3%, and passenger vehicles by 1.5%, while other vehicles increased by 3.6%.Comparing October this year with October 2007, car sales were down 13.2% in NSW, 6.6% in Victoria, nearly 15% in Queensland, almost 4% in South Australia and 15% in Tasmania. Large falls were also recorded in the ACT and Northern Territory.The Federal Chamber of Automotive Industries (FCAI) said two weeks ago that its figures showed 79,105 cars, trucks and buses were sold in October - down 11.4% (10,184 vehicles) compared to the same month last year.Year-to-date, new vehicle sales are down 0.9% compared to the same period last year with a total of 864,037 vehicles being sold.According to the ABS figures new passenger vehicle sales were down 11.5% and sports utility vehicle sales were off 20%. The 46,845 passenger vehicles sold in October were the lowest since early 2006 and the SUV sales were the lowest since December 2006. The total sales figure estimate of 80,366 was the lowest monthly total for 15 months.The Westpac - Melbourne Institute index of economic activity, which tries to project a view of the likely pace of future economic growth three to nine months out, was 1.1% in September, down from 3.5% in August.Westpac chief economist Bill Evans said in a statement that the fall in the leading index was the biggest monthly drop since the mid 1980s. & quot;That represents the largest percentage point fall between two months since the mid-1980s - sharper even than we saw in the 1990/91 recession. & quot;The report said the leading index has now been below the long-term trend of 3.9% for two successive months and Mr Evans said the report showed a recession in 2009 was becoming more likely. & quot;The growth rate is signalling a very weak growth outlook through at least the first half of 2009, & quot; he said. & quot;It is consistent with Westpac's view that growth in the first half of 2009 will be barely positive with a decent risk that the first two quarters of growth in 2009 could be negative. & quot;Underlying the final quarter of 2008 and probably most of 2009 will be a weak consumer as households deal with the unprecedented pressures on household wealth from the collapse in share prices and associated superannuation returns and some modest softening in house prices. & quot;Household incomes will come under pressure from deteriorating jobs growth rising unemployment and falling deposit interest rates. & quot;Westpac expects interest rates to fall to 3.5% and expects a cut of 0.75% on December 2 when the RBA next meets. & #160; & #160;
MQG/BNB
Macquarie Group shares had another good run yesterday for the second day in a row as analysts absorbed the group's 43% drop in interim profit and outlook for more of the same this half.In fact the result brought two upgrades from Goldman Sachs JBWere and Citigroup to 'buys', which were few and far between for most of the year.The shares ran up to & #36;26.50 in an early burst of enthusiasm, before easing to close up 4.8% or just over & #36;1 at & #36;25.16.Goldman Sachs JBWere told its clients yesterday that an investment in MQG wasn't for the & quot;faint-hearted & quot; but for & quot;long term institutional shareholders & quot;: & quot;We have increased FY09 EPS by 5.0% to reflect a strong 1H09 result. & quot;This includes an additional & #36;450m write-down in investments in 2H09. & quot;Our forecasts are 15% below management's guidance. & quot;With concerns around earning certainty high, we have taken the opportunity to factor further conservatism into our FY10 and FY11 forecasts, reducing these by 7.3% and 8.8% respectively. & quot;Following these changes our low case SOTP valuation is & #36;44.35. MQG is also trading at 0.7x FY09E P/BV and 0.9x P/NTA, despite delivering a depressed ROE in line with the cost of capital. & quot;We have upgraded MQG to BUY (was Hold). & quot;Whilst some risks remain (e.g. write-downs) we have attempted to capture these risks in our forecasts and with the stock trading at P/NTA 0.9x FY09E we believe that the long-term risk / return profile is supportive at current prices. & quot;That said, MQG is likely to remain a high-beta play and volatile in the short-term. As such, we believe this stock is best suited for long-term institutional shareholders and not for the faint-hearted. & quot;And Citigroup took a similar view yesterday: & quot;While cognisant that MQG is a high-risk investment given the current environment, and downside risk remains to the P & #38;L and balance sheet, we upgrade our rating to Buy following a strong underlying 1H09 result highlighted by prudent management of the group balance sheet and funding position. & quot;Our EPS forecasts have been cut 12%-15%pa while our TP falls 2% to & #36;35.57, reflecting a 20% premium to our conservative estimate of book value. & quot;The 1H09 Numbers - Operating income fell 37% to & #36;3.0bn, due largely to & #36;1.1bn in write-downs across the group's managed funds, co-investments, Italian mortgages, and other loan & #38; trading activities. & quot;Expenses fell 33% as the bonus pool took a hit, and a low tax rate saw NPAT -43% to & #36;604m. & quot;Excluding write-downs, operating income fell 13% to & #36;4.1bn and NPAT -6% to & #36;999m. & quot;Balance Sheet, Funding & #38; Capital OK - The balance sheet retains significantly lower leverage than peers and a positive funding mismatch with term funding ( & #36;32bn) ahead of term assets ( & #36;28bn), and cash & #38; liquid assets ( & #36;26bn) exceeding short-term wholesale funding ( & #36;19bn). & quot;The tier 1 ratio is 11.0% with group capital & #36;3.3bn (or 40%) ahead of minimum regulatory requirements. & quot;We also view flat 1H09 DPS of & #36;1.45 as a positive signal of group capital needs. & quot;More Write-Downs Likely - Guidance for 2H09e to be & quot;in line with & quot; 1H09 includes & #36;400m of further write-downs on managed funds. & #160; & quot;However, this excludes marks against MAP and MIG given observable market transactions support current carrying values. We estimate there remains ~ & #36;1.1bn of mark to- market losses across the group's listed managed funds at present. & quot;
Fed Govt To Probe Sharemarket
Some would say & quot;not before time & quot; as the federal government moves to investigate whether the Australian stockmarket is fully informed and transparent.Last week it revealed plans to tighten the rules of short selling and to increase controls over rating agencies.Now it & quot;s commissioning research to look at the role of analysts & quot; briefings, the usefulness or otherwise of so-called black out periods for company directors & quot; trading and disclosure of margin lending by company directors.Now Senator Nick Sherry, Minister for Superannuation and Corporate Law, announced yesterday that the government had commissioned the Corporations and Markets Advisory Committee to review a range of market practices with a view to further enhancing the integrity and transparency of the Australian market.These include the use of margin lending by company directors, & quot;blackout & quot; trading by company directors, the spreading of false rumours and the potential disclosure of market sensitive information at analysts & quot; briefings. & quot;The Rudd Government places a premium on a well-functioning and transparent financial market that keeps Australia at the forefront of global best practice, & quot; he said in a statement released yesterday after a speech at the National press Club in Canberra. & quot;The effects of some of market practices have been seen in recent Australian market volatility. & quot;The impact of directors margin lending and rumourtrage need to be understood and the laws changed if needed - this is about market integrity and investor confidence, & quot; Senator Sherry said. & quot;For instance, there may be a significant adverse impact on the market price of a company & quot;s shares where a director is required to sell off large parcels of shares as a result of a margin call. & quot;Concerns have been expressed about the adequacy of disclosure to the market of directors & quot; margin lending arrangements and uncertainty remains as to the nature of directors & quot; obligations to disclose both to their boards and to the market - we need to clear this up once and for all, & quot; said Minister Sherry. & quot;The practice of & quot;blackout & quot; trading, which is when directors trade in their own company stock despite their own company rules prohibiting trading at that time, is currently not against the law. & quot;These blackout periods generally occur before the release of annual or half-yearly results. & quot;Research has found a very significant lack of compliance with regard to rules around trading in the & quot;blackout & quot; period. This is unacceptable and makes a mockery of the rules restricting such trading, & quot; Minister Sherry said. & quot;On the issue of false rumours or & quot;rumourtrage & quot;, concerns have been raised amid recent market turbulence that some market participants, here and overseas, may have spread false information to deliberately drive down a particular company & quot;s share price. & quot;In light of the concerns raised, it is appropriate to review the regulatory regime governing such rumours and market manipulation, with specific focus on the spreading of false information, & quot; said Minister Sherry. & quot;Finally, the Committee has been asked to examine the issue of the disclosure of price sensitive information at closed company briefings. & quot;There are concerns that confidential briefings are being provided to analysts which create the perception that some analysts have access to critical information that is not available to other analysts, shareholders and the general public. & quot;I want to have a good look at this to ensure that no one is being systemically and unfairly advantaged, especially compared to ordinary shareholders, & quot; Minister Sherry said.He said that in order to assist the completion of this project, the government has approved a grant of & #36;100,000 to fund the CAMAC investigation. CAMAC is to report its findings to government on these matters by June 30 next year.
OZL/MCC
The way world commodity prices are travelling, shareholders in the country's newest miner, OZ Minerals, can expect some bad news in early 2009: asset write-downs, losses and perhaps mine closures.The company has already reported that it is taking a wide ranging review of its operations, including whether to keep the huge Century zinc mine open in North Queensland.OZ shares have weakened in recent days, drawing a query from the ASX about the sharp price fall.They were trading around 60c yesterday, and hit a new all time low of 58.5c before closing at 63c, down 10c more than 13%. That's a fall of around 75% since the company was formed on July .In its reply to the query, OZ said falling metal prices and higher production costs may cut full-year profit. & quot;It is still not possible for OZ Minerals to provide a reasonable and meaningful indication of 2008 profits for the purposes of market guidance in view of the current volatility of trading conditions and metals markets,'' Melbourne-based OZ Minerals said today in the replySlowing global economic growth has slashed demand for raw materials, sending prices for commodities tumbling with the company's main interest, zinc, losing 56% in the past eight months when it peaked..The company warned last month in announcing the review, that it could cut output at Century because of the price drop. Copper, nickel, silver and lead are also down, adding to the pressures on the company.Yesterday it warned that it might write-downs the value of some assets including its shareholding in Australian uranium explorer Toro Energy Ltd. and Nyrstar NV, the world's largest zinc producer. & quot;'The market value of both these companies has declined substantially since OZ Minerals last reported. & quot;However, as a consequence of substantially lower commodity prices, current volatility ... and general higher production costs ... OZ Minerals' net profit after tax for 2008 is expected to be lower than that reported by each of Oxiana and Zinifex in those companies' prior financial periods, & quot; OZ Minerals said.But the decision won't be announced until early in the new year.The company said it would be looking at asset values, prices, currency forecasts and demand projections as at the end of the year, December 31. It said the board would be conducting an impairment test of all its assets and will be making adjustments in carrying values accordingly.
Midday Market Roundup 19/11/08
The market is down 82 and falling after being up 48 points at best - underperforming the 14 point rise predicted by the SFE Futures this morning. Bit quiet on the announcement front.The non-financial shorting ban was lifted yesterday at the close - industrials like Woolworths, Westfield, CSL, Brambles, Orica, Leighton Holdings, Qantas and Toll Holdings haven't been sold-off this morning as feared - they saw heavy selling yesterday in anticipation of the ban-lift and previous outperformance.Banks were all up this morning but a falling into negative territory at midday after heavy falls yesterday. Macquarie Group up again today after their solid results and positive commentary from the brokers this morning. Babcock & #38; Brown down 24.2% after their satellite B & #38;B Infrastructure looks to sell a sizeable chunk of their Dalrymple Bay port facility.The Dow was up 151. Up 204 at best. Down 168 at worst. & #160;Main Points: Treasury's Paulson, the Fed's Bernanke and the FDIC's Bair testified before the House Financial Services Committee regarding the & #36;700bn TARP package. Paulson says NO to the & #36;700bn being used for an auto bailout and defended the TARP package's success at staving off an international financial collapse. Bernanke said the credit markets still strained, but has improved. Negative house price data across US cities - medians drop 9% last quarter from a year ago. Lowest-ever builder's sentiment about a short-term recovery in the housing market. PPI Inflation figures have eased on falling energy prices. General Motors and Ford at multi-decade lows.Technology sector outperforms (up 1.0%) with surprise positive 3Q performance from Hewlett-Packard. Financials underperform - down 0.8%. Retailers down 0.2%. Oil down 1.31%. Metals all solidly up. Gold down 1.25%. A & #36; up 0.52% against the US dollar. BHP and RIO down 0.2% and 0.8% in ADR form.Making the news today...Babcock & #38; Brown (BNB) has provided an update on its strategic review - It will narrow and simplify its focus by becoming a specialist infrastructure investor. It provides no timetable for asset sales but said it will repay debt through sales of assets and is looking to repay over 50% of its debt facility by 2011.AWB Ltd (AWB) has announced a & #36;64.3m profit, up from & #36;270.1m - analysts' expected & #36;53.75m on average. Revenue increased by 46.5% to & #36;6.84bn.CSR Ltd (CSR) has raised & #36;315m via an institutional capital raising to reduce debt. It comprised of around & #36;125m through an institutional placement of 89m shares at 140c a share and around & #36;190m through a non-renounceable 1-for-4 entitlement offer for institutional shareholders that issued 136m new shares at the same price.Albidon (ALB) is in a trading halt - it is reviewing its financial position.Oz Minerals (OZL) has warned of lower profits and possible assets write-downs. It will also lower earnings in 2008 on a pro-forma basis.
Macquarie Survives With Good 'Bad' Profit
Macquarie Group shares staged a big rally yesterday off the back of the expected lower profit.They rose more than 16%, or & #36;3.40 to & #36;24.00, after rallying as high as & #36;26.03.The global financial turmoil that stopped Macquarie Group's 15 years of profit growth in its tracks may have also helped underscore the point that it has survived when better rated peers overseas in the US and elsewhere have failed or fled the sector.Merrill Lynch was sold off to Bank of America, Lehman Brothers failed, Morgan Stanley and Goldman Sachs fled for the safety of being a bank (emulating Macquarie's model in fact). Big UK and European competitors are bleeding heavily.The sharp fall in September half year net earnings to & #36;604 million removes a question mark that has been hanging over Macquarie and the market generally.It hasn't disappeared; things aren't going to worsen from here on for the bank (unless there's catastrophic failure of a much bigger financial group elsewhere in the world). More write-downs lie ahead in this half.The doom and gloom merchants have been proven wrong: but that doesn't mean there aren't a few question left hanging: such as why no write-downs on its investments in Macquarie Infrastructure (MIG) and Macquarie Airports (MAP)?The 43% drop in net earnings came as the group was hit by lower levels of activity in most of its core markets, including investment banking, underwriting, takeover advice, trading (still a relative standout with over & #36;900 million in earnings) and share broking. & #160;It also took write-downs and provisions of & #36;1.14 billion on a range of assets including its own holdings in Macquarie satellites (but not MAP and MUG). The net impact was & #36;395 million to the P & #38;L for the six months after tax.MIG and MAP shares are down, like everything else in the worst bear market for several generations, but Macquarie says the reason there's been no write-down is because the carrying values of its holdings in both are well below prices generated in recent airport and tollway sales around the world.So as long as those sorts of deals continue, Macquarie will be spared savage cuts in the book values of those investments: although there are another & #36;400 million in write-downs already indicated for the current half.This half should see earnings around the same level as the first half, so full year profits of some & #36;1.2 billion. That will put it well short of the & #36;1.8 billion earned in 2007-08, which should be the peak for the next year or two.The headline net profit fell 43% to & #36;604 million, primarily because staff costs almost halved from & #36;2.42 billion in the September half last year, to just & #36;1.265 billion in the latest period. & #160;For example salaries and other related expenses fell to & #36;543 million from & #36;1.016 billion in the same half of 2007. Clearly there are fewer millionaires; or rather the millions will be rather smaller this year at the factory.Travel costs dropped from & #36;49 million to & #36;26 million: a small but telling indicator of how the bank's business levels have dropped off. It's quite clearly, no deals, stay at home.The tax office is also sharing the pain as Macquarie has only provided for & #36;44 million, compared with & #36;273 million 12 months ago.Cash reserves rose from & #36;10.5 billion to & #36;25.6 billion over the past 12 months. It's not quite the & #36;66 billion held by Commonwealth, but it is still a lot of cash. Deposits rose to & #36;16.7 billion over the past six months. That's up from just over & #36;13 billion.Capital was & #36;10.3 billion at the end of the half, & #36;3.3 billion higher than minimum requirements.Its short and long term funding on its balance sheet also exceeds its short-term wholesale borrowings by some & #36;8 billion. & #160;And since it is a bank Macquarie has also gained from the federal government's deposit guarantee system. That could also help it rein in the much higher costs of raising wholesale funds in international credit markets as the second half progresses. & quot;Unprecedented market conditions make short term forecasting extremely difficult, & quot; Macquarie told investors in its results statement released to the ASX yesterday. & quot;The final result will however, be subject to a number of significant swing factors, particularly market conditions, the completion rate of transactions, asset realisation and asset prices. & quot;Macquarie's new chief executive Nicholas Moore warned earlier in the year that the bank would face a challenge in matching the 2008 performance. That was a no brainer, but many in the markets had thought and worried that it would be worse.Mr Moore said that despite the financial impact suffered by the group, Macquarie had still managed to turn in a & quot;sound & quot; result. & quot;While the extreme market conditions have led to a number of write-downs and one-off costs in the latest half year, the underlying performance of the business has been solid, & quot; he said in the statement to the ASX. & #160;
Lion's Profit
Lion Nathan is going to have to make a bit more noise if it is to merge with Coca-Cola Amatil.That noise will have to be a rustle of a wallet being opened, a cheque book being prepared, and of course, a different sort of noise: the word & quot;yes & quot; from Coca Cola Amatil's US controller, The Coca Cola Company (known for its Big Board symbol KO).I wouldn't hold my breath wondering about that, as CCA and its big shareholder would have worked out that this is really a move by Kirin of Japan, the 46% shareholder in Lion Nathan for growth by bidding for a company that has strong shares in a sector Kirin isn't in.Kirin has moved heavily into dairy and fruit juices in Australia through National Foods and while there are some growth parts in those businesses, the soft drinks and the alcoholic beverages CCA has put together offer more than that, and the bulk beer dependency of Lion.So Lion's decision to press on with the spurned offer is a bit heroic, especially after it revealed a modest 4.2% increase in operating profit in the year to September 30. But by another measure, profit dipped 3.3% to & #36;272.7 million for the year.Shares in Lion Nathan fell 35c, or 4%, to & #36;8.30. CCA shares rallied as much as 13c, or 1.4%, to & #36;9.44, then fell in the afternoon to & #36;9.11, down 20c on the day.Lion Nathan, whose brands include XXXX, Tooheys, Hahn and Boag's, released a presentation to the ASX yesterday promoting its cash-scrip proposal, but the terms of the offer remain unchanged. & #160;It was as if the implicit rejection by CCA the day before (which was termed incomplete and undervaluing the company's assets) hadn't happened, nor the comment that KO wasn't really interested.The proposed scheme of arrangement has an offer of & #36;10.80 per CCA share, which values the company near & #36;8 billion. CCA holds the Australian bottling rights for Coke products and produce a variety of food and drink products including Mount Franklin water, Powerade and SPC.Lion Nathan raised the bottom end of its forecast for 2009, saying it now expected a net profit between & #36;300 million and & #36;315 million. CCA is expecting to earn around & #36;360 million this year ( & #36;310 net profit for 2007).Lion said in the statement to the ASX that ''Whilst economic conditions are volatile at present and the new financial year will be challenging, the company remains confident of an earnings step-up in the 2009 financial year & quot;.The boost will come from the acquisition in late 2007 of J Boag and Sons from San Miguel, the Filipino company 20% controlled by Kirin.It will need something as the company's second half profit barely budged, rising a mere 0.2% to just over & #36;110.6 million from & #36;110.4 million in the previous corresponding half.The second half of the year covers winter and it's not the strongest of times for a brewery: the approaching summer is peak sales and profit time.Lion Nathan paid & #36;325 million for J Boag. The purchase added about & #36;61 million to this year's sales.In New Zealand, where Lion Nathan is the biggest brewer, earnings dropped 53% to & #36;28.6 million as a slump in the Kiwi dollar cut the benefits of price rises and demand for beer.The wine business, with brands such as Petaluma and Wither Hills, turned in a second-half profit of & #36;7.7 million from a loss & #36;3.8 million after cutting sales and distribution costs. & #160;
Suncorp Hit By Storms
How many bits of bad weather will it take to bring Suncorp to its knees: hopefully that will never happen, but the long suffering shareholders must be wondering if they have done something wrong.Those terrible storms in Brisbane on Sunday night have hit the company's share price hard with new lows being established Monday and yesterday.The shares fell to a new 52 week low of & #36;6.32 yesterday down 28c on the day.The group of course has a lot to blame for this problem: after all it more than doubled its bet on insurance by paying & #36;7.9 billion in cash and shares for Promina, just before a series of bad weather events hit in Queensland, NSW, Melbourne and New Zealand from early 2007 onwards.Some, like the Central Queensland floods and the Queens Birthday storm in NSW, were costly events. Some were smaller, but annoying, a hailstorm here, and there. And then the savage storms on Sunday night.Now while they don't rank in intensity or cost to the terrible hailstorm that pulverised eastern parts of Sydney in 1999, it is but another reminder of the exposure Suncorp has to bad weather and insurance events.But there are fears about the impact on Suncorp and yesterday it said that claims from the storms may threaten its ability to pay a dividend in 2009 were & quot;premature. & quot;Suncorp said through a spokesman yesterday that it took over 1,000 customer calls on Monday and has been sending assessors into storm-damaged areas to start the claims paying process by assessing each policyholder's damage.A spokesman says the company expects the number of claims to rise significantly from the initial 1,000 calls.Brisbane has been declared a national disaster area: homes were also damaged on the Gold Coast and to the north around Caboolture.In a note to clients Monday night, Merrill Lynch said & quot;SUN shares have fallen by another 6% on early trading this morning as concerns on their capital position are renewed in light of storm damage in SE QLD yesterday. & quot;The extent of damage is not clear yet, although management's earliest thoughts are that the damage is not as extensive as that caused by some of the events that impacted the accounts in the last financial year. & #160; & quot;SUN had budgeted for & #36;200m of weather-related losses last year and reported & #36;415m of such costs. Thus far, this fiscal year has been relatively benign on the weather front. & quot;The key issue is the capital position. SUN has pulled almost every lever it can to bolster its capital strength (underwritten DRPs, asset sales, equity sell-down, rundown of the CPs, lower ACE targets etc). & #160; & quot;Based on a 5% ACE ratio (and allowing for a NOHC for Vero), we estimate SUN will have just over & #36;50m of surplus capital relative to its 'core capital' requirements at 30 Jun 09. & quot;There is little leeway for the Group to experience 'cat' style losses. SUN has a maximum event loss retention of & #36;150m on the first event and & #36;100m on the second. It then has coverage to & #36;550m, which protects it against subsequent events with & #36;10m reinstatement charges. & quot; & quot;By choice we believe SUN will address its capital issues through lower dividends. We think there is a chance that SUN may not even pay a dividend in 2009. & #160; & quot;In our view, the company needs to act decisively in this environment on capital, management & #38; prospective bank strategy / positioning / ownership - the three key stock issues in our view. & quot;Meanwhile, Brisbane area customers of Insurance Australia have lodged around 1,300 claims, according to a statement late yesterday.NRMA Insurance Queensland state manager Brett Robinson said the insurer's main priority is to ensure impacted customers are getting the right help quickly.RACQ Insurance said it had a first estimate of & #36;25 million for claims from the storm, mostly from homeowners. It had received around 1500 claims in the first 24 hours after the storms hit.QBE Insurance and IAG shares fell yesterday in tandem with Suncorp. IAG shares were off 11c at & #36;3.77 and QBE shares were down 4.2% to & #36;23.02. & #160;
prove harmful. Use your credit cards wisely and carefully check your monthly statement. Once your statement has arrived, strive to pay off your outstanding bill in full each month.
One of the major problems faced by the society is identity theft. In case someone steals your identity he has the capability to destroy your finances, ruin your credit as well as damage your name and reputation. There are certain measures that you can take to prevent such a case. These measures include, screening all your financial statements and protecting your personal information zealously.
It is advisable to take control of your personal finance situation. Start investing in a retirement fund today. Take care of today, and plan for tomorrow. Don't postpone saving towards retirement until a later date. You don't want to be caught unawares by your fast approaching retirement date and no retirement fund to rely on.
One of the best ways to handle the finances is a budget. This is the best way to keep a tab on the finances and keeping the spending in control. When you create a budget you need to make two columns, one meant for the incomes and the second for expenditures. You need to mention all the items of expenditure in the expenses column such as rent or mortgage payment, car payment, insurance, utilities, and food. Whatever is left after deducting all this from the income is the monthly excess that of course can be used in different ways.
If you are unsure how to go about setting your personal finance records straight, contact an accountant. He or she will be able to correct any potential problems while ensuring your future will be successful.
The world of finance may be daunting, but is certainly not scary! Work today to straighten out your finances and build, or rebuild, your credit score.Free Article brought to YOU by ArticlesOn.com, where you'll find Articles On Everything! Visit http://articleson.com to get more free content. About the author: Sophia Nadal is the chief writer at Finance Central it's one of the webs most up to date Finance sites, why not sign up for the free Finance newsletter. Read many more interesting articles on Finance at: www.financec.com/articles
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GRAVITY Reports Third Quarter of 2008 Results
SEOUL, South Korea, Nov. 17, 2008 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (Nasdaq:GRVY) ("Gravity" or the "Company"), an online game developer and publisher based in South Korea, today announced its una
China Forestry Inc. Seeks to Expand Holdings
HARBIN, China, Nov. 17, 2008 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today that it has signed a letter of intent wi
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