Italy Parliament Votes to Seal Austerity Budget

Italy's Senate passed a vote of confidence in the government of Prime Minister Mario Monti on Thursday that put the final seal on an emergency austerity budget rushed through to restore market confidence in the euro zone's third biggest economy.

The upper house voted 257 to 41 for the government, following a similar easy win in the lower house last week.

Monti, said he was happy with the vote and Italy could hold its head high in Europe after passing the package of spending cuts, tax rises and pension reform.

The budget is intended to reverse a collapse of market confidence which has pushed Italy's borrowing costs to untenable levels and put it at the heart of Europe's debt crisis.

Addressing the Senate before the vote, Monti said his technocrat government had to push through the budget as fast as possible.

"Today this chamber concludes a rapid, responsible, complex job...on a decree that was passed in extreme emergency and that enables Italy to hold its head high as it faces the very serious European crisis," Monti declared.

The prime minister, appointed only five weeks ago, said that after addressing Italy's massive debt in the 33 billion euro ($43 billion) budget, the government would turn to the country's second economic millstone, a decade of near zero growth.

Investors turned their spotlight on these two problems in July, sending Italy's borrowing costs rocketing.

Monti replaced Silvio Berlusconi as prime minister last month and formed an administration of technocrats with broad parliamentary support to pass the so-called "Save Italy" decree.

Berlusconi's failure to tackle major reforms and restore market confidence brought Italy to the brink of economic catastrophe, although market pressure has continued since Monti took power.

Monti Calls for Growth

Monti repeated a frequent refrain over recent weeks, that European policy must address growth as well as cutting debt.

Euro zone paymaster Germany has insisted that policy should concentrate on fiscal discipline despite fears by both indebted countries and economists that this will choke off essential growth if taken too far.

The government previously passed the budget in the lower house with a confidence vote last week to eliminate debate on dozens of amendments, many of them brought by the opposition Northern League, which was part of Berlusconi's administration.

League deputies blew referees' whistles and held up a banner reading "Robber Government" in an attempt to disrupt calling of the confidence vote in the Senate on Wednesday.

The votes in both houses allowed the broad swathe of parties supporting Monti to show they are backing him out of a sense of responsibility even if they are uneasy with specific measures.

Berlusconi's People of Liberty Party (PDL) is worried about tax increases and the centre-left Democratic Party about pension cuts, but they know they cannot sabotage the bill without unleashing an economic disaster including a possible default.

In a reference to serious tension in recent days between the government and trade unions over labour market reform, Monti said the issue would need more detailed dialogue with both them and employers before it was decided.

A suggestion by Welfare Minister Elsa Fornero this week that the government could take measures making it easier to fire workers caused a union outcry and she has since acknowledged she was "naive" to suggest it before more detailed discussion.

The severity of Monti's package has taken a toll on his popularity, which fell to 46 percent from 61 percent the previous week, according to a poll published in Corriere della Sera on Sunday.

Berlusconi has promised Monti full support but expressed fear that "the horse's medicine could kill the horse", a reference to widespread fears that the budget could stamp out fragile growth.

Monti says markets will eventually react positively to Italy's efforts, arguing that lower interest rates will help offset the effects of the austerity measures on growth.

While bond yields have come down, with the 10-year issue steadily below 7 percent, the austerity package has failed to bring them back to more sustainable levels of about 5 percent.

Last week, ratings agency Fitch placed Italy and five other euro zone countries on a downgrade warning in the absence of a "comprehensive solution" to the debt crisis.

Italy's economy has expanded by an average of only 0.4 percent per year for the past decade.

It shrank 0.2 percent in the third quarter of this year, compared with 0.5 percent growth in Germany and 0.4 percent in France, and economists don't predict a recovery until the second half of next year.

The main employers' lobby, Confindustria, predicts a 1.6 percent decline in gross domestic product in 2012, four times worse than the government's forecast.

Monti's budget went into effect on Dec.4, when it was passed by the cabinet, but needed parliamentary approval within 60 days to become permanent.

http://www.cnbc.com/id/45763123

Central Balance Sheet Data Office

The Banco de España's Central Balance Sheet Data Office is a service that analyses the economic and financial information voluntarily submitted by Spanish non-financial corporations, which improves the knowledge about these corporations, enables financial accounts for the Spanish economy to be drawn up, and which analyses corporate performance and the effects of monetary policy measures on corporate financing and results.

This section provides information on who can contribute and how, and the benefits obtained from doing so. It is worth highlighting the access given to a comparative study of the company with aggregate figures for non-financial corporations in the same activity sector and the use of a European database for the same purpose.

http://www.bde.es/webbde/en/cenbal/cenbal.html

City Controller John Liu says Wall St. execs should be responsible for risky deals

Embattled City Controller John Liu wants to hold financial fat cats accountable if their firms’ wheelings and dealings get out of control.

He demanded on Wednesday that three major investment firms — Goldman Sachs, JPMorgan Chase and Morgan Stanley — recoup pay from senior executives if employees engage in risky or unethical behavior.

“No one should profit or be rewarded with bonuses when engaged in improper or unethical behavior,” Liu said.

The controller noted that each of the three firms has paid more than $100 million in the past 18 months to settle state or federal charges connected to mortgage securities.

Liu’s demands do carry some weight in the financial world. He oversees the city’s $108 billion pension funds, which, as of Dec. 19, held $483.3 million worth of shares in the three firms.

The boards of the three firms would have to vote on his suggestions.

Liu’s campaign has had some financial trouble of its own.

A Liu intermediary who was raising dollars for his 2013 mayoral bid was indicted by federal prosecutors last month.

Xing Wu (Oliver) Pan was charged with recruiting 20 straw donors to help an undercover agent posing as a businessman skirt campaign finance laws.

Liu has not been charged with any wrongdoing, but the feds are still looking at his fund-raising.

http://www.nydailynews.com/new-york/city-controller-john-liu-wall-st-execs-responsible-risky-deals-article-1.995278

Jobless Claims in U.S. Fall, Consumer Comfort Climbs: Economy

Fewer Americans than expected sought jobless benefits and consumer confidence climbed, giving the world’s largest economy a boost heading into 2012.

Unemployment claims fell by 4,000 to 364,000 in the week ended Dec. 17, the lowest level since April 2008, Labor Department figures showed today in Washington. The Bloomberg Consumer Comfort Index improved to minus 45 in the period ended Dec. 18 from a reading of minus 49.9 the prior week, marking the biggest seven-day gain since January.

A decline in firings and the cheapest gasoline prices since February are helping revive retail sales during the busiest shopping season of the year. A stronger consumer, whose spending accounts for 70 percent of the economy, raises the odds the U.S. can ride out the debt crisis in Europe or failure by Congress to extend tax cuts.

“Spending has looked pretty good so far, and continued job and income growth will help maintain that,” said Samuel Coffin, an economist at UBS Securities LLC in New York, who projected claims would fall to 365,000. “At some point, events in Europe are likely to have some effect on activity, but we’re heading into that headwind with a lot of momentum.”

Stocks rose on the improving jobs outlook, sending the Standard & Poor’s 500 Index higher for a third day. The gauge increased 0.4 percent to 1,249.03 at 11:32 a.m. in New York. Treasury securities also advanced, sending the yield on the benchmark 10-year note down to 1.96 percent from 1.97 late yesterday.

Survey Results

The median forecast of 45 economists surveyed by Bloomberg News projected an increase in jobless claims to 380,000. Estimates ranged from 355,000 to 400,000. The number of applications has dropped by 40,000 over the past three weeks.

“This is great news,” Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, New York, said in a note to clients. “One unexpectedly low number can easily be a fluke. Two are interesting. Three are telling us something real is happening in the labor market.”

The decrease in claims is consistent with payroll gains of about 200,000 a month, Shepherdson said.

The number of people continuing to receive jobless benefits fell by 79,000 in the week ended Dec. 10 to 3.55 million, the lowest since September 2008.

In data out of Europe, economic growth in the U.K. accelerated more than previously estimated in the third quarter in a surge that the Bank of England says is unlikely to be repeated as Europe’s debt crisis curbs bank lending and dents confidence. Gross domestic product rose 0.6 percent from the previous quarter, faster than the 0.5 percent reported last month, the Office for National Statistics said today in London.

Confidence Boost

The drop in firings in the U.S. may be helping boost confidence. The Bloomberg comfort index rose last week to the highest level in five months as all three components -- state of the economy, buying climate and personal finances -- improved.

A monthly expectations gauge climbed to minus 17 for December, a seven-month high.

“A slower pace of firing and stabilization in the broader labor market are the likely sources for bolstered consumer sentiment,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “While challenges remain, it’s a solid note to close what has been an otherwise discordant 2011.”

The figures are consistent with other findings. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 69.9 in December, a six-month high, from 64.1 at the end of November, the group said today.

Cheaper Gasoline

Lower fuel costs are probably also helping lift confidence. The price of regular unleaded gasoline at the pump decreased to $3.21 a gallon Dec. 20, its lowest since February, according to AAA, the biggest U.S. auto group.

Pier 1 Imports Inc. is among retailers seeing a pickup in sales at the start of the holiday shopping season without resorting to bigger price cuts.

“Sales are robust, merchandise margins are strong, operating margins are growing,” Alexander Smith, president and chief executive officer at Pier 1, said on a Dec. 15 conference call. Sales during the Thanksgiving weekend “increased 10 percent from last year and were achieved with modest levels of discount.”

FedEx Corp. posted quarterly profit that beat analysts’ estimates, helped by stronger demand for home delivery.

More Shipments

“Consumer confidence remains at very low levels, but we have seen improvement recently,” Mike Glenn, executive vice president for market development at Memphis, Tennessee-based FedEx, said on a Dec. 15 earnings call. For 2012, “we expect U.S. GDP to grow 2.2 percent.”

The economy grew less than previously estimated in the third quarter, reflecting a smaller gain in consumer spending, revised figures from the Commerce Department showed today. Gross domestic product climbed at a 1.8 percent annual rate from July through September, down from the 2 percent estimated last month.

The index of leading economic indicators signals the economy will strengthen.

The New York-based Conference Board’s gauge of the outlook for the next three to six months rose 0.5 percent after a 0.9 percent October increase, the research group said today.

Cuts in government spending and failure by Congress to extend tax reductions represent clouds on the horizon. The U.S. House of Representatives rejected this week carrying over into 2012 an expiring 2 percentage-point payroll tax cut and benefits for the long-term unemployed. Should those measures not be prolonged, GDP growth next year will be cut by about 0.6 percentage point, economists at IHS Global Insight estimate.

http://washpost.bloomberg.com/Story?docId=1376-LWLXI00UQVIR01-5GFT35MR02QJ90EMNG03F2GDRL

Growth figures reveal challenges

The challenges faced by the global economy were underlined today by mixed growth figures from both sides of the Atlantic.

The UK economy grew at an upwardly revised rate of 0.6% between July and September, but the estimate for gross domestic product (GDP) growth in the second quarter was slashed to 0% from 0.1%, the Office for National Statistics reported.

Meanwhile, the US economy grew more slowly in the third quarter than previously estimated but economists said the world's largest economy is set to record a strong finish to the year.

Back in Britain, analysts warned the UK was still teetering on the brink of recession, despite the improved third quarter figures, which were revised up from a previous estimate of 0.5%, as indicators point towards a slowdown as the new year approaches.

The overall picture at home was broadly unchanged by the revised figures as the country still faces considerable headwinds in the new year, notably from the eurozone, the UK's biggest trade partner, which is buckling under the pressure of a crippling debt crisis.

Chris Williamson, chief economist at financial services information company Markit, said: "The underlying trend is very clearly one of an economy that is struggling in the face of what seems to be an ever-growing list of headwinds."

Manufacturing, services and trade surveys have been mixed so far in the final quarter of the year, prompting fears that the UK is heading for a double-dip recession.

The tax and spending watchdog, the Office for Budget Responsibility, recently slashed official forecasts for growth following a similar downbeat assessment of the economy from the Bank of England.

The powerhouse services sector, which makes up some 75% of the total economy, grew at 0.7% in the third quarter, up from a previous estimate of 0.6%.

Agriculture grew at 0.5% in the third quarter while construction was ahead 0.3%.

But industrial production growth was revised down once again to 0.2% from 0.4%, which partially offset improvements in the stronger sectors.

The squeeze on household spending was underlined by figures revealing real disposable income growth slowed to 0.3% in the third quarter from 1.3% the previous three months.

Government spending was also revised down to 0.2% from 0.9% - which corresponds more closely with Chancellor George Osborne's programme of deficit-busting spending cuts.

Looking back to the second quarter, growth in the services sector was revised down to 0.1% from 0.2%.

Labour Treasury spokeswoman Rachel Reeves said: "These revised figures show an unchanged picture over the last year. The British economy has been flatlining over the last 12 months, when we need strong growth to get unemployment and the deficit down."

There is some hope that the improved outlook for the US will help steer the global economy to safer ground, although America is also threatened by the potential fallout from a euro meltdown.

The US government now estimates that consumer spending grew at a 1.7% annual rate last summer, instead of 2.3%. The updated estimate reflects data showing less spending on hospitals.

The US third quarter figures were lower than estimated - but were still the best quarterly figures this year, following growth of 1.3% in the second quarter.

However, economists think the economy is growing at an annualised rate of more than 3% in the final three months of this year, which would be the fastest pace since a 3.8% performance in the spring of 2010.

The upturn in the economy comes as President Barack Obama faces a re-election vote in less than a year and a presidential campaign that will focus on the economy.

The President may face voters next year with the highest unemployment of a sitting president seeking election since World War Two.

http://www.independent.co.uk/news/business/news/growth-figures-reveal-challenges-6280474.html

Stocks Up Moderately In Lower Trade; Mead Johnson Dives

Stocks held their modest gains at midday Thursday, as volume continued to track lower across the board.

The Nasdaq rose 0.6%, while the S&P 500 gained 0.5%. The Dow Jones industrial average tacked on 0.3%.

On the downside, Mead Johnson Nutrition (MJN) tumbled 8% in huge turnover, hit by news of Wal-Mart (WMT) pulling a batch of the infant formula maker's Enfamil product after the death of an infant. Reports said there was no known link between the infant's death from a bacterial infection and Enfamil, which tested negative for the bacterium, but Wal-Mart was pulling the formula "out of an abundance of caution."

Mead Johnson has plunged below its 50-day moving average, after closing near an all-time high Wednesday. It has an IBD Composite Rating of 78 out of a highest-possible 99.

On the upside, Advance Auto Parts (AAP) gained 1% in fast trade after being up as much as 3% earlier. The stock has sketched a 71.10 handle buy point in a first-stage base. The car parts retailer has a Composite Rating of 96, putting it above all but 4% of the market. Advance also is part of a top-rated IBD industry group.

Intuitive Surgical (ISRG) jumped 1% in above-average volume, as it worked on clearing a 449.16 buy point from a base-on-base pattern. The maker of robotic surgical gear briefly topped 449.16 and touched 450, a new all-time high, but then gave up some of its gain. Intuitive sports a 99 Composite Rating.

http://news.investors.com/Article/595591/201112221153/stock-market-today-rises-mjn-aap-isrg.htm

Japan Exports Down 4.5 Percent, Imports Up 11 Percent

Country's trade deficit expanded for second straight month to $8.79 billion

Japan’s trade deficit expanded for the second straight month to $8.78 billion in November, as exports fell 4.5 percent year-over-year and import jumped 11.4 percent, according to preliminary figures released by the Finance Ministry Wednesday.

The country’s trade gap widened from $3.59 billion in October. Japan posted a $2.02 billion trade surplus in November 2010.

The export decline was led by electronic parts, including semiconductors, visual equipment and steel, which tumbled 15.1 percent, 48.5 percent and 9.2 percent, respectively, in terms of value.

Import growth, rising for the 23 months in a row, was fueled by liquefied natural gas , crude oil and telecommunications equipment, which soared 76.0 percent, 15.1 percent and 42.7 percent, respectively, in terms of value.

Until September, Japan’s overall exports had grown for two months in a row on a year-over-year basis after five months of declines, reflecting the restoration of supply chains disrupted by the catastrophic earthquake and tsunami that hit the northeastern part of the country on March 11.

Japan’s exports to the United States rose for the first time in two months in November on a year-over-year basis, increasing 2 percent to $11.37 billion. Imports from the U.S. fell for the first time in four months, dropping 0.8 percent to $6.51 billion.

As a result, Japan’s trade surplus with the U.S. widened for the first time in three months in November on a year-over-year basis, expanding 5.9 percent to $4.86 billion. The U.S. is now Japan’s second-largest trading partner after China.

http://www.joc.com/importexport/japan-exports-down-45-percent-imports-11-percent

Wheeler files IPO for real estate investment trust

n a complicated financial arrangement, Jon Wheeler, president and CEO of commercial real estate firm Wheeler Interests in Virginia Beach, has filed an initial public offering for the formation of Wheeler Real Estate Investment Trust.

 A prospectus was filed with the Securities and Exchange Commission Oct. 10 creating the firm, a real estate investment trust.

 “We can confirm we filed,” Wheeler said. “Unfortunately, we’re in the quiet period and I can’t talk about it. I would love to. But the constraints and restrictions of what we can say and can’t say won’t allow us to.”

 REITs are treated differently by the Internal Revenue Service than other corporations. In return for reduced taxes, REITs must distribute at least 90 percent of taxable income to shareholders in the form of dividends every year.

 REITs must invest at least 75 percent of total assets in real estate and derive at least 75 percent of gross income as rents from real property or interest from mortgages on real property.

 REITs are measured by their net asset value, funds from operations, adjusted funds from operations and cash available for distribution.

 Wheeler plans to raise $23.8 million through a sale of 2.5 million to 3.4 million shares priced between $5 and $7 a share. If 2.5 million shares aren’t sold by Feb. 28 of next year, Wheeler will return the money to investors and withdraw its IPO.

 Wheeler expects net proceeds from the sale may range from $13.2 million to $18.3 million.The money will be used to pay down debt, for working capital and for reimbursement of the company’s operating partnership. The remainder, which may range from $9.5 million to $14.6 million, depending on the final share price, will be used to buy properties.

 Wheeler listed total assets of $32.2 million and total liabilities of $30.8 million for six months of this year, ending June 30.

 Wheeler posted a $78, 759 loss for the first six months and a $1,359 gain for the same period in 2010.

 For 2010, Wheeler registered a $98,157 gain, down from a $179,000 gain for 2009. Assets for 2010 totaled $32.7 million, up from $30 million in 2009. Liabilities for 2010 totaled $30.8 million, up from $27.8 million for 2009.

 Wheeler Real Estate Investment Trust was formed as a Maryland corporation on June 23. Jon Wheeler, chairman and CEO, is the company’s second largest stockholder. WHLR Management LLC, which is wholly owned by Jon Wheeler, will provide administrative support to Wheeler Real Estate Trust.

 The REIT will have access to several companies in which Jon Wheeler is owner, including Wheeler Interest Inc., an acquisition and asset management firm; Wheeler Real Estate LLC, a real estate leasing management and administration firm; Wheeler Capital LLC, a capital investment firm specializing in venture capital, financing and small business loans; Site Applications LLC, building maintenance; and Creative Retail Works, a design firm; and TESR LLC, tenant relations and community events.

 Wheeler, the new firm’s executive officer, will be paid a minimum of $18,50 a month. Steve Belote, the firm’s chief financial officer, will be paid a minimum of $10,000 a month. The firm will also pay both executives expenses related to company business and benefits.

 Wheeler has worked for Harbor Group International, Divaris Real Estate, Total Retail Management in Washington, D.C., and Federal Realty Investment Trust in Rockville, Md. In 1999, he partnered with Harrison Perrine to develop and own commercial properties.

 In 2006, Wheeler bought Perrine’s interest in the company and formed Wheeler Interests, which now has a portfolio of 368,865 square feet and includes six retail shopping centers, two free-standing retail properties and one office building in Virginia, Florida, North Carolina and Oklahoma.

http://insidebiz.com/news/wheeler-files-ipo-real-estate-investment-trust

Signs Point to Economy’s Rise, but Experts See a False Dawn

As the fourth quarter draws to a close, a spate of unexpectedly good economic data suggests that it will have some of the fastest and strongest economic growth since the recovery started in 2009, causing a surge in the stock market and cheering economists, investors and policy makers.e

In recent weeks, a broad range of data — like reports on new residential construction and small business confidence — have beaten analysts’ expectations. Initial claims for jobless benefits, often an early indicator of where the labor market is headed, have dropped to their lowest level since May 2008. And prominent economics groups say the economy is growing three to four times as quickly as it was early in the year, at an annual pace of about 3.7 percent.

But the good news also comes with a significant caveat. Many forecasters say the recent uptick probably does not represent the long-awaited start to a strong, sustainable recovery. Much of the current strength is caused by temporary factors. And economists expect growth to slow in the first half of 2012 to an annual pace of about 1.5 to 2 percent.

Even that estimate could be optimistic if Washington lawmakers fail to extend aid for the long-term unemployed and a payroll tax cut for the United States’ 160 million wage earners.

At stake is about $150 billion, the bulk of which would go to middle-class families and the unemployed. If Congress does not pass the measures, economists say, it would significantly weaken growth from already-damped levels anticipated early in the new year.

“Unfortunately, I think we’re going to see a slowdown over the course of next year,” Ethan Harris, co-head of global economics research at Bank of America Merrill Lynch, told reporters last week. “Not only do we have the European crisis spilling over and hurting U.S. trade and confidence,” he said, but the United States economy also faces “homegrown shocks.”

There are two reasons for the renewed pessimism. First, economists say that temporary trends increased growth in the fourth quarter and may not continue into next year. Second, the economy faces significant headwinds in 2012: some from Europe’s long-lingering sovereign debt crisis, and some from domestic cutbacks beyond the control of President Obama, whose campaign would like to point to a brightening economic picture, not a darkening one. Even the Federal Reserve is predicting that the unemployment rate will remain around 8.6 percent by the time voters go to the polls in November.

The fourth quarter benefited, for instance, from wholesalers restocking inventories of goods like petroleum, paper and cars, giving a jolt to growth.

“We had lean inventories, so those required additional production to satisfy demand,” said Gregory Daco of IHS Global Insight. “But once inventories are restocked, there is no need to restock them anymore. That means there’s going to be less production,” he said.

Consumers also pulled back on their savings, helping to finance a recent spurt in spending. a trend that forecasters doubt will continue. Other short-lived factors include falling gasoline and commodity prices, and an increase in orders from Japanese companies returning to business after the devastating spring tsunami.

But next year, Washington is increasing some taxes and reducing spending as temporary measures enacted during the worst of the recession expire. That will damp growth by a percentage point or more next year, forecasters say. Provisions like a tax write-off to help businesses pay for equipment are winding down or ending.

Most worrying is the prospect that Congress will drop aid for the long-term jobless and allow payroll taxes to rise to 6.2 percent from the current level of 4.2 percent, amounting to a $1,000 tax increase on the average wage earner. Macroeconomic Advisers, a prominent forecaster, estimates that the expiration of the two provisions could cost the economy 400,000 jobs and cut growth by half a percentage point next year.

How and when Congress acts will also have an important, if impossible to quantify, impact on consumer and business confidence, economists say. Households and companies uncertain about their income, unclear about their tax rates and lacking confidence in their government might hold off on major financial purchases and tighten their purse strings.

Then there is Europe.

“If there is some Lehman-type event in the first half of the year, it will have a big impact,” said Joel Prakken, chairman of Macroeconomic Advisers. The collapse of Lehman Brothers, a New York investment bank, in late 2008 helped set off the financial crisis.

Even without such a major event, forecasters say problems on the Continent will weigh on American growth next year. Investor flight from assets denominated in the shaky euro have made the dollar stronger and American exports less competitive abroad. The euro zone’s woes have also made a global slowdown more likely, which could mean a reduction in American exports to emerging-market countries as well.

For now, Democrats and Republicans remain at loggerheads, blaming each other for the uncertainty around the payroll tax rates and aid for the unemployed.

“A two-month extension creates uncertainty and will cause problems for people who are trying to create jobs,” John Boehner, Republican of Ohio and speaker of the House, said on Monday.

“The clock is ticking. Time is running out,” President Obama said at a White House news briefing on Tuesday. “One of the House Republicans referred to what they’re doing as ‘high-stakes poker.’ He’s right about the stakes, but this is not poker. This is not a game.”

http://www.nytimes.com/2011/12/22/business/signs-point-to-economys-rise-but-experts-see-a-false-dawn.html?_r=1&ref=business

Tax information: The Value Added Tax

The Tax collection statistic comes from theAnnual Tax Collection Reports in the case of State managed taxes and in the case of assigned and agreed taxes, from theInformative Summaries on the Collection of Assigned and Agreed Taxes, issued by the General Inspection of the Ministry of Economy and Tax

The Economic and Tax Results in VAT statistic is a piece of census type research based on the information supplied by the economic agents via the "Annual Summary".

The Annual Accounts in Corporate Tax statistic is based on the annual Corporate Tax returns from entities that have their domicile for tax purposes in the Common Tax System Territory.

Income Tax details are derived from the breakdown of some of the tax variables that are included in the forms on which the income tax declaration/self-return is presented. Information from returns presented at Autonomous Inland Revenues (C.F. de Navarra and País Vasco) is not included.

The data come from the State Tax Administration Agency and from the BADESPE database, which is developed by the Institute of Tax Studies. Both of these belong to the Ministry of Economy and Tax.

http://www.ine.es/jaxi/menu.do?type=pcaxis&path=%2Ft45%2Fp062&file=inebase&L=1

Bell settles 'say on pay' suit

Cincinnati Bell Inc. says it has approved a proposed settlement in a shareholders’ lawsuit over pay increases given in 2010 to top officers of the telecommunications company.

The lawsuit, filed in the Hamilton County Court of Common Pleas, challenged the pay increases for chief executive officer Jack Cassidy and other top officers in light of a shareholders’ “say on pay” advisory vote in May that opposed board approval for the higher compensation.

Terms of the settlement, subject to a court hearing and final approval, weren’t disclosed.

The lawsuit came after Bell’s net income fell 68 percent last year to $28.3 million, or 9 cents a share, from $89.6 million, or 37 cents a share, in the prior year as the company completed a $525 million acquisition of Texas-based data center CyrusOne.

The acquisition was strategically important to Bell, which is remaking itself into a leading provider of corporate data centers to serve the growing appetite for computer servers, storage gear and network connections for the online world. The CyrusOne purchase has since fueled both higher earnings and revenue, the company has reported.

In its 10K filing with the Securities and Exchange Commission, the company said the drop in net income was “a result of increased interest expense associated with the CyrusOne acquisition and debt refinancings, losses on extinguishment of debt and acquisition-related expenses.”

Bell’s board of directors last year awarded pay increases to top executives —raises that were influenced in part by the successful CyrusOne acquisition.

Cassidy’s compensation increased 71 percent to $8.5 million. Gary J. Wojtaszek, then Bell’s chief financial officer and now president of CyrusOne, saw his compensation increase 80 percent to $2.07 million; and Christopher J. Wilson, vice president and general counsel, saw his compensation increase 54 percent to $1.4 million.

Cassidy’s salary included a $4 million bonus, which according to the proxy was “to recognize (his) contributions to the company over the years, particularly his leadership as chief executive officer, and to ensure his retention during the next few years of transformative growth in the technology solutions/data center segment.”

http://news.cincinnati.com/article/20111221/BIZ/312210034/Bell-settles-say-pay-suit?odyssey=tab|topnews|text|

Residents vow to appeal re-zoning decision

Some local residents plan to appeal the re-zoning of the “Nelson Street Park” to the Ontario Municipal Board after council voted 6-1 on Monday night in favour of amending the zoning bylaw to re-zone the property for residential development.
Council also passed a bylaw to re-zone the property on the corner of Minnie Avenue and Front Street from tourist commercial (C4) to “open space” to offset the eliminated open space that would result from the conversion of the “Nelson Street Park.”


Read more:
http://fftimes.com/node/248082

Inflation rate hits 12-month low

Inflation in Ottawa in November dropped 20 basis points to 2.5 per cent, according to Statistics Canada figures

This is the lowest threshold for the 12-month average change in the consumer price index in 2011. The highest was four per cent.

Statistics Canada does not break out local drivers, instead focusing on provincial figures. In November, inflation in Ontario fell at the same rate as in Ottawa, to 2.5 per cent from 2.7 per cent in October.

The major drivers in Ontario were food prices, which at 6.7 per cent were the highest in Canada and well above the national rate. Gasoline also greatly influenced inflation, with an increase of 11.6 per cent.

"Typically, we've seen that Ontario gasoline price increases have been above the Canadian year-over-year change, with the exception of the last two months," said Amanda Wright, a CPI analyst with Statistics Canada, in an OBJ interview.

Shelter also saw a small increase of 0.9 per cent. Provincial declines were posted in electricity (3.9 per cent), women's closthing (4.6 per cent) and mortgage interest costs (one per cent.)

Ontario's inflation was at the lower end of provinces and territories in Canada. Only British Columbia (2.3 per cent) and Nunavut (2.2 per cent) came in lower. The highest was Newfoundland and Labrador, at 4.1 per cent.

Nationally, Canada's inflation rate was unchanged at 2.9 per cent, although the agency pointed out food prices rose sharply month-over-month.

The 4.8-per-cent national gain in food prices was the largest since July 2009, the agency said. Energy also rose substantially, by 13.5 per cent.

Shelter and car insurance also rose, while declines were seen in home mortgage and interest, natural gas and furniture, among other items.

http://www.obj.ca/Local/2011-12-20/article-2842461/Inflation-rate-hits-12month-low/1

ECB aid to banks a mixed blessing

The good news is the European Central Bank seems prepared to offer virtually unlimited liquidity to banks in need of cash. The bad news is the banking sector in Europe needs it.

The central bank opened its tills to all comers on Wednesday, offering long-term, low-interest loans designed to keep money flowing through the financial sector and prevent a credit crunch.

A total of 523 banks took up a total €489-billion in loans, well exceeding the central bank’s intervention after the fall of Lehman Brothers Holdings Inc.

“That is the most important action they could take,” said Eric Lascelles, chief economist at RBC Global Asset Management. “Offering liquidity to illiquid banks is absolutely necessary to prevent disaster.”

Markets saw things differently, pushing yields on Italian and Spanish debt higher, while European stocks fell across the board, for at least a couple of reasons.

First, the headline tally on the ECB’s tender was mitigated by expiring liquidity operations, with net new liquidity amounting to about €200-billion.

Also, markets seemed to interpret the size of the intervention as an indication of the size of the problem.

“The big figure was welcomed initially but huge demand for ECB loans is not exactly a massive positive and really just reflects the huge squeeze European banks are feeling at present,” said Richard Driver, an analyst at Caxton FX in London.

All of which discounts the significance of the liquidity offering, Mr. Lascelles said. The ECB has gone a long way to easing one of the more urgent pressures of the crisis: How to refinance €600-billion of bank debt expiring in 2012.

“You’ve taken this rollover risk out of the banking sector for three whole years, which anyone has to think will be a sufficient amount of time to get Europe back to something resembling normal or at least more stable,” Mr. Lascelles said.

The large take-up does serve to warn that “banks are urgently in need of funds to boost liquidity,” said Jennifer Lee, a senior economist at BMO Capital Markets. “But at least they have somewhere to turn to.”

As the ECB has established itself as a steadfast lender of last resort to the banking sector, it refuses to assume the same role for eurozone countries, a practice prohibited by treaty. Both the central bank and its chief benefactor, Germany, reject quantitative easing as unfit for Europe.

At the same time, eurozone’s central bankers hope a flood of cheap money might achieve much the same effect.

Banks were invited to borrow as much as they liked at a rate of 1%, creating a carry trade incentive to use that money to pursue higher yield securities.

Further, recently relaxed banking rules now include peripheral debt as allowable collateral, drawing banks back into the market for high-yield sovereign bonds, Mr. Lascelles said.

“That is being viewed as a back door way of buying government bonds,” he explained. “It’s arguably taken a fair chunk of sovereign debt off the market that won’t be sold in a panic any time soon.”

A second liquidity operation is scheduled for February.

Of course, the optics of encouraging European banks to build up exposure to sovereign debt are not great.

The risks inherent in those bonds, however, are presumably fairly reflected in market yields, Mr. Lascelles said. “When you’re buying Greek debt, a default is priced in, so you won’t lose money on a default. The greater risk is debt that was held all along.”

Still, banks could conceivably shy away from risky debt, if only for the sake of their reputation among investors.

“If you’re a French bank, do you want to be seen buying Italian bonds?” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

“The reason European banks have not been buying peripheral is not because they couldn’t get cheap enough funding. The reason they didn’t buy European bonds is because they’re in the process of deleveraging.”

http://business.financialpost.com/2011/12/21/ecb-aid-to-banks-a-mixed-blessing/