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Tuesday
Mar152011

Stocks Tumble Worldwide on Japan Quake News

Comstock Images/Thinkstock(NEW YORK) -- Financial reverberations from Japan's record earthquake and nuclear plant woes continued Tuesday with markets falling worldwide, capping an 18 percent decline on the Tokyo stock exchange.

Stock markets around the world have reeled since the March 11 quake that killed at least 2,700 people in Japan and left at least another 3,700 missing, according to government reports.  Radiation leaks from nuclear plants in the northern part of the country have prompted evacuations of more than 140,000 people.

Japan's stock market decline was the biggest since the financial crisis of 1987.  In the U.S., stocks opened sharply lower again Tuesday after dropping about six percent Monday.  The Dow Jones Industrial Average fell 272 points in early trading, a 2.3 percent decline.

Meanwhile, oil and gas prices have eased with news of the quake, on concern that the disruption may slow economic growth.

On Monday, the Department of Energy reported that the retail price of gas has risen to an average $3.567 a gallon nationwide, up 4.7 percent from a week ago.  The biggest increases were in California (8 percent) and the West Coast generally (7.4 percent).

Consumers, however, may also now have to contend with a reduction in the number of fuel-efficient cars imported from Japan.

Japan's manufacturing sector was hit hard by the quake and is still swooning.  U.S. imports of everything from cars to consumer electronics to semiconductors may eventually be affected.

The biggest U.S. imports from Japan include passenger cars ($41.4 billion), automotive accessories ($8.8 billion), computer accessories ($6.7 billion), and semiconductors ($3.5 billion).

Copyright 2011 ABC News Radio

Tuesday
Mar152011

Global Markets, Futures Drop over Events in Japan, Bahrain

Comstock/Thinkstock(NEW YORK) -- While authorities in Japan are urging calm for people in the area immediately around the Fukushima nuclear plant, global investors are heading for the hills.

The events in Japan pushed the futures for the U.S. markets into negative territory -- both the Dow and broader S&P 500 indices were down two percent for the open.  Meanwhile, in Japanese trading Tuesday, investors saw 10.5 percent of their Nikkei Index evaporate with the fears.  Other Asian markets were also off between one and two percent in trading, and futures for European markets mirrored the same anxiety with a drop of two percent.

And it’s not just the uncertainty of the nuclear plant; the Saudi jump into neighboring Bahrain’s affairs in an attempt to put down a popular uprising is forcing big and small investors into cash.

“Forty-five years in this business, and we cannot remember a mess like this,” writes David Kotok, Chairman and CEO of Cumberland Advisors.  He’s pulled much of his money out of the global stock market, having the most cash in their portfolio since the Lehman collapse.

The events overseas could also be felt immediately Tuesday in the portfolios of the 50 percent of Americans who hold stocks and bonds.

Copyright 2011 ABC News Radio

Tuesday
Mar152011

Hacker Group Discloses Alleged Bank of America Mortgage Fraud

Davis Turner/Getty Images(CHARLOTTE, N.C.) -- Bank of America, the nation's largest bank, was put in the position of defending itself Monday when someone from a hacker group calling itself "Anonymous" posted e-mails, allegedly from a former BOA employee who accused his old employer of keeping regulators from seeing foreclosure information.

The e-mails from an unidentified person who worked for Balboa Insurance, a mortgage and car insurer obtained by BOA, show that employees were instructed to change mortgage loan information in such a way that it could presumably be used to unjustly increase foreclosures among its clients.

Anonymous posted the e-mails on the website BankofAmericaSuck.com.

BOA fired back Monday, accusing the former Balboa employee of pilfering documents, adding "he will not be able to substantiate his outlandish assertions."

In the meantime, the bank continues its anxious wait for WikiLeaks founder Julian Assange to come through on his threat to publish thousands of classified and potentially damaging documents about a major bank, which everyone has come to assume is BOA.

Copyright 2011 ABC News Radio

Tuesday
Mar152011

Time Warner Cable Offers Free Calls to Japan to Customers

Jupiterimages/Thinkstock(NEW YORK) -- Time Warner Cable announced Friday that all calls placed by its digital phone customers to Japan will be free until April 15, 2011.  The deal will be available to both residential and business class phone customers.

Time Warner's offer comes after seeing a noticeable increase in the number of calls to Japan by its customers.

"We have seen an increase in the number of calls made by our customers to family, friends and colleagues in Japan we have been touched by the events that occurred earlier today," Glenn Britt, Chairman and CEO of Time Warner Cable said Friday.

The company says that the offer will be retroactive for all calls placed on March 11, 2011. 

Customers making calls to Japan during the eligible period do not need to make changes to their accounts to participate in the offer, Time Warner says.

Copyright 2011 ABC News Radio

Monday
Mar142011

How to Rebudget Your Household in the Face of Soaring Gas Prices

Stockbyte/Thinkstock(NEW YORK) -- Gas prices hit a high of $3.52 a gallon in the latest weekly survey, and that has a ripple effect on our budgets. Not only do we end up spending more on gasoline, but those who use their cars to save money on other things -- namely groceries -- suffer twice. Many people are in the habit of making runs to multiple grocery, big box and drug stores to take advantage of the best deals. With gas prices surging, it's time for at least a temporary change in tactics.

For advice on how to recalibrate, ABC News turned to grocery guru Chrissy Pate of savings website BeCentsAble.net. Chrissy is also co-author with Kristin McKee of Be CentsAble, How to Cut Your Household Budget In Half.

Here are Chrissy's tips for the thorny gas/grocery conundrum:

Shop one store.

Shop at only one store or a cluster of stores close by. Use price matching to get all the hot deals in one store without running around town. Price matching simply means shopping at a store that offers to match competitors' prices. Typically you provide store circulars from the rival stores as proof of the low prices. It helps to put all your price match items in one area of your cart, so they're easy to present to the checker.

Shop when you are already out.

Put your grocery list in your car and stop by stores that you are passing when you are already out and about. This works best for nonperishables, of course, but I can remember a time when my mom used to tote a cooler around in her car to keep milk and other things cold a bit longer when running other errands.

Shop less frequently.

For example, you could shop for 10 days' worth of food instead of seven. It helps to plan your menus and create a list from there so that you don't have to make extra runs to the store because you forgot something. Be extra conscious of expiration dates on your dairy and meat products. Or plan to freeze them -- you can even freeze milk and cheese. If needed, use canned or frozen produce to help you squeak through the last couple of days before you get back to the store. Buying in bulk is another way to avoid shopping too often.

Shop at home.

If you live in an area where your local grocery store offers delivery, do the math and see if the delivery fee is now worth it since gas prices have gone up. Alternatively, Amazon.com now sells all sorts of groceries. "They run 'hot' deals," Chrissy told ABC News. "I got Horizon Organic Milk for $.78 for 8-ounce cartons when it is regularly $1.38." Chrissy's final insider tip: Use Amazon's subscribe-and-save service to get free shipping and 15 percent off. You can always cancel if gas prices go down.

Copyright 2011 ABC News Radio

Monday
Mar142011

Japan's Disaster Threatens to Take a Toll on Exports

Mark Renders/Getty Images(TOKYO) -- America's motorists may soon have another worry to put alongside the rising price of gas: a reduction in the number of fuel-efficient Japanese cars available for purchase.

The terrible human toll from last week's earthquake and tsunami still is being counted. But Japan's manufacturing sector likewise was hit hard and is still reeling. U.S. imports of everything from cars to consumer electronics to semiconductors eventually may be affected.

The biggest U.S. imports from Japan include passenger cars ($41.4 billion), automotive accessories ($8.8 billion), computer accessories ($6.7 billion) and semiconductors ($3.5 billion).

For the moment, the big Japanese car makers have plenty of inventory sitting on U.S. wharves, awaiting delivery to showrooms. But factories in the region, including ones belonging to Sony and Toyota, have chosen to temporarily suspend operations so that available electricity can be put to much-needed domestic household use.

The time required to ship goods to the U.S. by sea averages 15 to 20 days, so, for that much time at least, the pipeline of goods will continue to deliver at pre-disaster levels.

Copyright 2011 ABC News Radio

Monday
Mar142011

New Social Network Allows for Calls, E-Mail to Other Drivers

Jupiterimages/Thinkstock (AUSTIN, Texas) -- Have you ever wanted to call another driver to complain about cutting you off? Or to tell him that his brake lights aren't working? Or even to ask him out on a date? Now you can.

Through a new start-up called Bump.com, drivers across the country can use their license plates to connect with each other via e-mails, text and voice messages and even access discounts to local stores based on the locations where they're driving.

"It's kind of like a Groupon and a Foursquare meets AAA and LoJack -- all of which you can't turn off," said Mitch Thrower, Bump.com's San Diego, Calif.-based founder and CEO.

The company is powered by a program that scans and automatically recognizes license plate numbers in pictures taken by security cameras on the road. It then matches up those numbers with e-mail accounts, mobile phones and location systems to let people communicate.

For two years, Bump.com has been in "stealth" mode, Thrower said, building up the technology behind the company and assigning e-mail addresses and voicemail boxes to license plates across the country.

At the South by Southwest Interactive Festival in Austin, Texas on Monday, the company officially launched on an open-invitation basis. To join, you can register on the company's website for an invitation to "claim your plate." After receiving the invitation, users can go to Bump.com to verify car ownership and set up a profile.

But even if you don't want to be a part of a social network for the streets, Bump will capture images of your license plate and assign it an identity. Other drivers will be able to send messages to your car, but you only receive those text and voice messages if you sign up for the network and register yourself as the license plate owner.

Bump.com not only lets drivers communicate -- a chance to exchange both gripes and Good Samaritan messages -- it can also let parents track their children and companies and taxi companies monitor their fleets.

Thrower is also working with towing companies on a system that would alert drivers when their cars are towed. Instead of calling the police department to track down your towed car, the towing company would just send you an e-mail or voicemail, he said.

But messaging capabilities are just one piece of the puzzle, Thrower said. Bump.com will also offer drivers a AAA-type membership program that gives drivers discounts and promotions based on their locations for a $49 annual fee. For example, at the upcoming Coachella Music Festival in California, Bump.com will give attendees discounts on iTunes downloads of songs played at the festival, if the service spots their license plates.

Eventually, members could receive discounts from nearby stores as the service spots them driving by, as well as roadside assistance.

Recognizing that distracted driving is an increasing concern, Thrower said, Bump.com disables texting while the car is moving and sends all messages straight to voicemail to keep drivers focused on the road.

While some might be alarmed that a single company is amassing so much information about people's location and driving habits, Thrower emphasized that the company automatically defaults to the most private settings, won't turn over information to insurance companies and filters out obscenity-laced road-rage messages. But in cases of child abductions and other public safety situations, he said, Bump.com technology can help law enforcement track down criminals. "The Good Samaritan piece is a big one for us," Thrower said. "We want to make the roads safer."

Copyright 2011 ABC News Radio 

Monday
Mar142011

Survey: Four Out of Ten Millionaires Do Not Feel Wealthy

Adam Gault/Thinkstock(BOSTON) -- The nation's millionaires have spoken, and the magic number above which they feel wealthy is $7.5 million. Four out of 10 millionaires surveyed say they do not feel wealthy, even though they reported an average of $3.5 million in investable assets.

Among the 58 percent of responders who do feel wealthy, they said they began to feel so at $1.75 million in investable assets.

Gail Graham, an executive vice president in Fidelity Institutional Wealth, the group that conducted the survey, said the she believes different definitions of "wealthy" are can be attributed "how much retirement influences how people feel."

While their near-term confidence in the U.S. economy remains negative, their outlook is at the highest level since Fidelity began tracking millionaires' views in 2006.

Graham said the attitudes of millionaires are both a "leading indicator and a causal factor" of the direction of the economy. Representing 56 percent of the nation's wealth, she said the millionaires "have the power to make what they believe happen."

The survey of 1,011 financial decision makers in U.S. households with investable assets of at least $1 million, excluding any real estate holdings and workplace retirement accounts, was conducted online Oct. 18-29, 2010.

The average millionaire who participated in the survey is 56 years old, male, and has $3.5 million in investable assets with an annual household income of $379 thousand. The majority -- 86 percent -- have college degrees, and 46 percent hold graduate degrees.

Those surveyed represent only 5 percent of U.S. households. Sixty percent of participants were male, while 40 percent were female.

Copyright 2011 ABC News Radio

Monday
Mar142011

Stock Market Reflects Concerns About Japan, Middle East

Comstock/Thinkstock(NEW YORK) -- The economic fallout of the massive earthquake, tsunami, and nuclear shutdowns in Japan is weighing on investors.

Oil prices fell below $99 per barrel as analysts tried to calculate how much the disaster in Japan will affect global energy demand.

On Wall Street, shares were at six-week lows.

Berkshire Hathaway said it plans to buy chemical company Lubrizol for $9 billion in cash.

Copyright 2011 ABC News Radio

Monday
Mar142011

Retailers Revamp Political Giving Policies Ahead of 2012 Campaign

Brand X Pictures/Thinkstock(MINNEAPOLIS) -- Two of the nation's most prominent retailers, Target Corp. and Best Buy, quietly have revamped their political expenditure policies following a stinging controversy from the 2010 election campaign that continues to reverberate.

The changes, appearing in policy statements on the companies' websites last month, said that proposed political donations must align with the companies' core values, not just their business interests, and be reviewed by internal committees that include a diversity of viewpoints.

Last year, Target sparked outrage among some employees, customers, and community groups for contributions supporting a Republican Minnesota gubernatorial candidate who opposed same-sex marriage and greater legal protections for gays and lesbians.  The company is based in Minneapolis.

Best Buy and several other companies also donated to the conservative political action group, MN Forward, but received less criticism.

The revised policies are signs that some businesses that took advantage of the freedom to give directly to campaigns from their corporate bank accounts after the Supreme Court's Citizens United ruling, are taking steps to avoid unwanted negative attention in 2012, experts said.

At Target, a committee of senior executives representing a "variety of perspectives" will weigh the need to promote business-friendly policies with "any other considerations that may be important to our team members, guests or other stakeholders," the company said on its website.

Best Buy said it will convene a similar committee to review corporate political contributions, basing its decisions not only on the interests of the business and shareholders but also employees, customers and the company's "core values."

Some critics of the companies' 2010 contributions say the new revisions don't go far enough.

Copyright 2011 ABC News Radio







ABC News Radio