Finance and Economic

WARRENTON • A billboard along Interstate 70 encourages drivers to stop in Warrenton and stay awhile.

But with just a handful of shops left at the Warrenton Outlet Center, there are fewer reasons for St. Louisans to make the trek to this city, about 60 miles west of downtown.

The Gap Factory Outlet and Dress Barn have jumped ship, finding apparently sunnier pastures last year at a strip center in Wentzville. The Levi’s Outlet Store, G.H. Bass & Company, and the Famous Footwear Outlet shuttered their locations last month.

And the Nike Factory Store, one of the last major retailers left, is closing in April and moving to the Meadows at Lake Saint Louis.

Elsewhere around the country, many outlet malls continue to thrive, and developers are rushing to build more of them. But Warrenton’s outlet center, operating under an increasingly outdated model, never managed to reach its full potential.

Now the beleaguered center will suffer an ignoble fate shared by other retail properties on the decline: the auction block.

The 200,000-square-foot outlet center will be put up for sale in a three-day online auction starting Monday morning. The minimum starting bid is $375,000.

The listing at auction.com notes that the center was 35 percent occupied in November. But that was before some of the recent departures.

The center opened in 1993 during a national boom in outlet mall construction. It once boasted many notable stores such as Mikasa, Nine West and Jones New York — some names of which are still barely visible above vacant storefronts. At one time, it had upward of 45 stores. Now, only about 10 stores remain.

“Even a few years ago, it was still a vibrant center,” said Michelle Schlenther, Warrenton’s director of economic development. “People would come out and make a day trip out of it. The dad would go play a round of golf while the wife shopped.”

So what happened?

“It’s an older center,” said Linda Humphers, who tracks the outlet mall industry for the International Council of Shopping Centers as editor of Value Retail News. “It’s only 200,000 square feet, and it’s probably a little too far out of town.”

Older outlet malls like Warrenton were built about 40 to 50 miles outside cities because retailers objected to having discounted merchandise so close to their regular-price stores.

But that model has begun to change with newer outlet malls creeping closer and closer in. For example, two proposed outlet mall developments are duking it out to come to Chesterfield within a stone’s throw of Chesterfield Mall.

NOT A DESTINATION

Steve Etcher, executive director of the Boonslick Regional Planning Commission, said the Warrenton outlets never grew to be large enough to be a true shopping destination. A third phase for the center, which would have taken it to more than 100 stores, never materialized.

“You had drive-by shopping but not enough to sustain it,” he said. “It’s not a bad location — you’re right on 70, but it’s not necessarily destination. To me, Lake of the Ozarks is destination. But this ended up being more of an along-the-way thing.”

It didn’t help, he said, that ownership of the center changed hands several times. And then when St. Louis Mills opened in 2003, offering a mix of outlet and regular price stores, that took some wind out of Warrenton, too.

Schlenther also traced some of the decline to several years ago when a number of stores went bankrupt or underwent massive restructuring such as KB Toys, Liz Claiborne and Big Dog Sportswear.

“So a lot of what closed there closed not only in Missouri, but across the nation,” she said quick payday loan. “And it just happened that we had a lot of those in one facility.”

Things got worse when the property fell into receivership a couple years ago, Schlenther said. At that time, the owner was Ariel Preferred Retail Group, which had a portfolio of about seven outlet malls.

“Stores just don’t want to come in and put an investment in because they don’t know when it’s bought what the new owners are going to do,” she said.

Texas-based Woodmont Co. is the receiver that’s managing the property. An on-site outlet manager referred questions to Fred Meno, a Woodmont executive. Meno did not return requests for comment.

Despite the troubles at Warrenton, Humphers said the prospects for an outlet mall in Chesterfield are rosier because the developers behind both projects are large, reputable mall developers.

In November, Simon Property Group, the owner of St. Louis Mills, announced it was joining forces with Woodmont and EWB Development on that proposed outlet project to be called St. Louis Premium Outlets. The project previously went by the name Spirit of St. Louis Outlets.

The other proposed outlet center — Chesterfield Outlets — is being spearheaded by Taubman Centers. The city of Chesterfield has approved its zoning request. And its plans for a 472,000-square-foot upscale outlet center will go before the city’s architectural review board next week.

Aimee Nassif, the city’s planning and development director, said she’s expecting to receive the section plans from the other project any day.

“They are literally kind of racing to the finish line,” she said. “It will be very interesting.”

OTHER USES

But Donna Boehringer hasn’t given up on the Warrenton outlets yet. She has operated her Corner Quilt Fabrics store in the center for about seven years after moving there from another location in town.

The move was good for business. A billboard she has along the interstate also has helped. She estimated about 60 percent of her customers are from out of town.

“Quilters seem to have this sixth sense of quilt shops,” she said. “If there’s one around, they will stop by.”

Boehringer did have her worst year in sales last year, but she attributed that more to the economy than to less traffic at the center. She’s in the process of renegotiating her lease.

“My plans are to stay right here,” she said. “I’m trying to be optimistic because I’d like to see something else come in. But we’ll see.”

Jan Olearnick, executive director of the Warrenton Area Chamber of Commerce, thinks the property holds promise for a mixed-use project. An education center, a health facility and a technology incubator are some of the ideas that have been thrown around.

“It would take a forward-thinking person to try and revive it, but we’re ready,” she said. “Warrenton is definitely a good location for any industry because of our proximity to I-70 and to the railroad — and even to the river.”

On top of that, the city recently got federal approval to build an interchange just west of the outlet center, making for easier access to the site. But the project’s funding source has not yet been determined.

In the meantime, other enterprises have been popping up in the region — though they are not necessarily retail.

A billboard next to the entrance to the outlet center advertises one of them a bit farther west: zip line tours.

Source

Looking for accurate and precise life insurance quotes that will help you choose the right policy? This is the site where you will find all life insuranceand senior life insurance.

The idea popped into Laura Stude’s head when she happened on a stack of legacy books while shopping last year for a Mother’s Day gift.

Eyeing the blank-paged journals, with prompts for parents and grandparents to reminisce about their lives, Laura Stude pondered a 21st Century alternative.

“Instead of writing something that no one could read or might get burned in a house fire, I thought ‘How cool would it be if you could put something online,’” Stude recalled.

The thought became a concept that Stude thought might appeal to appeal to the aging baby boomer population.

Last week, she decided to see if it had legs.

Startup Weekend, an event that has gained popularity at worldwide venues since the economy turned the mega-corporation world on its head, made its St. Louis debut a week ago tonight when 41 entrepreneurs brought an equal number of business proposals to a downtown incubator for information technology ventures.

Each arrived with a 60-second pitch outlining the strategies they envisioned as money-makers, the next social media phenomena or, in the case of one participant hoping to “create a better world through kindness and community,” a software application aligned with an over-arching goal of “changing the world.”

The proposals were put to a vote.

When the balloting was completed, teams headed by the 12 finalists - Stude included - adjourned to the conference rooms where they would spend nearly every hour of the next two days perfecting entrepreneurial ventures. Their ideas ranged from an application to synchronize smart phones with concert arena light shows to a software program designed to promote better childhood behavior.

It was Super Bowl weekend for would-be entrepreneurs like Alex Kliman, 26, sales representative by day and formulator of grand ideas by night.

“I’m one of those people who thinks they have a million dollar idea every time they wake up,” said the Dogtown resident, the creator of the pulsating “event-driven” smart phone program he envisions illuminating the concert halls and sporting venues of the future.

It became clear from the get go that time is the enemy at Startup Weekends: Come Sunday night, a panel of four judges would observe presentations from each team and select a winner based on originality, feasibility, marketability and, not least, financial viability.

The stakes were not high.

When I asked the St. Louis Regional Chamber and Growth Association executive who helped coordinate the weekend about the first place prize, Jay DeLong responded by patting me on the back.

OK, there was a bit more incentive than that.

But not much: The teams were vying for a break on the rent for incubator office space, gift certificates from downtown businesses and tee-shirts.

Still, the contestants went at it like a million bucks was on the line, working until midnight Saturday despite a schedule that called for adjournment in the early evening.

Most of the teams were comprised of total strangers.

Carl Foster of  Chicago joined forces with University City’s Stude because the idea he brought to the table - which didn’t muster enough votes - closely matched her online legacy book project.

With an eye toward the myriad obstacles standing in the way of successful start-ups, Stude assembled a crew capable of covering all the bases from software and website development to marketing to projected financial outcomes.

“Everybody brought a unique skill that moved the chains forward,” she said.

The team didn’t let her down.

They looked for ways to fine-tune the band-width to accommodate baby-boomers who prefer video over the written word business cards. They tweaked Stude’s four-minute presentation the judges and convinced the team leader to abandon her pet name for the project - “Time in a Bottle” - in favor of “StoryBucket.”

Laura Stude went before the judges shortly before 6 o’clock Sunday night.

“Do it before you croak,” she said, launching the presentation with the catch phrase formulated by the team barely an hour before. “Fill the bucket, before you kick the bucket.”

Supported by a PowerPoint presentation, she walked the judges through the various attributes of the project, in particular a process that is a marked upgrade over the arcane pen and paper.

The wait for the judges’ decision, slightly more than hour, seemed interminable for a 100-plus would-be entrepreneurs who’d spent the last two days burning through creative energy like coal.

Dragging out the tension a few minutes longer, the judges reviewed each entry prior to announcing the winners.

They praised StoryBucket, but advised that success rested on the ability to differentiate itself from Facebook, Flickr and other social media that lend themselves to story sharing.

It served as a hint of what lay ahead.

The winning team, “Analytic Just-Us” began the weekend as an amorphous proposal for a comprehensive database to provide background to attorneys preparing civil and criminal cases.

By Sunday the idea had evolved into an entry with the potential to analyze the decisions of juries and judges in every corner of the country.

“What Money Ball was for baseball this will be for lawyers,” predicted Andrew Winship, a St. Louis attorney and a member of the “Analytic Just-Us” team.

Though judges didn’t rank StoryBucket among the top five ideas, Stude remained upbeat. An idea born of happenstance during a shopping excursion had survived two days of intense scrutiny and readjustment.

Even more encouraging, Stude received word via Twitter following her presentation that an investor might be interested in helping her further pursue the StoryBucket proposal.

“If nothing else, it was good for affirmation,” said Stude, vowing, “this is just the start.”

QUOTE OF THE WEEK

“It’s a real culture shock. After tax, $150,000 is not much. It probably won’t even pay for the private-school education tabs for their kids. It’s going to be a tough time of readjustment.” - New York compensation consultant James Reda on the hardships reduced bonuses incur on Wall Street executives.

Source: The New York Post

BY THE NUMBERS

5.6 million - Number of health care sector jobs the U.S. economy is expected to add from 2010-2012.

Source: The U.S. Bureau of Labor Statistics’ Employment Projections

FINAL WORD

“I call myself frayed white collar - part of the privileged poor. I have a college degree, a career and an array of middle-class, working-class and more economically privileged friends; together we are a fairly good representation of the 97 percent, or maybe the 95 percent. And most of us are hard-pressed; even my teacher friends, making about $60,000 a year, are perpetually flat-lined economically, eking across each month’s finish line thanks to credit cards.” - Christopher D. Cook in an essay on the humility of applying for food stamps.

Source: Salon

Source

Compare and purchase low cost car insurance rates from multiple auto insurance companies immediately online.

Hong Kong will spend nearly HK$80 billion ($10.3 billion) to bolster growth as the government forecasts the weakest expansion since 2009 on a

Total U.S. money market mutual fund assets fell $14.68 billion to $2.679 trillion for the week ended Wednesday, Investment Company Institute said.

Assets of the nation’s retail money market mutual funds fell $5.73 billion to $929.14 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category fell $3.89 billion to $733.47 billion. Tax-exempt retail fund assets fell $1.84 billion to $195.67 billion.

Meanwhile, assets of institutional money market funds fell $8.95 billion to $1.750 trillion. Among institutional funds, taxable money market fund assets fell $8.13 billion to $1.653 trillion; assets of tax-exempt funds fell $820 million to $96.20 billion.

The seven-day average yield on money market mutual funds was 0.02 percent in the week ended Tuesday, unchanged from the previous week, said Money Fund Report. The 30-day average yield was also unchanged at 0 guaranteed online personal loans.02 percent.

The seven-day compounded yield was flat at 0.02 percent, as was the 30-day compounded yield at 0.02 percent, Money Fund Report said.

The average maturity of the portfolios held by money market mutual funds was unchanged from the previous week at 44 days.

Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation’s 10 largest markets showed the annual percentage yield available on money market accounts was unchanged at 0.13 percent from the previous week.

Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged from the previous week at 0.22 percent.

Source

Greece is still hopeful that it will be able to reach a deal with private bondholders to cut its massive debt _ despite tougher terms set by its European partners.

On the front line of Europe’s sovereign debt crisis, Athens is trying to get its private creditors _ banks and other investment firms _ to swap their Greek government bonds for new ones with half their face value, thereby slicing some euro100 billion ($130 billion) off its debt. The new bonds would also push the repayment deadlines 20 to 30 years into the future.

However, the main stumbling block over the past few weeks to securing this deal has been the interest rate these new bonds would carry. A high interest rate could buffer losses for investors, but would also require the eurozone and the International Monetary Fund to put up more than the euro130 billion in rescue loans they promised in late October.

In the early hours of Tuesday, politicians representing the 17 countries that use the euro as their currency drew a firm line on the Greek debt restructuring.

Jean-Claude Juncker, the Luxembourg prime minister who chaired a meeting of finance ministers on efforts to fight the crisis, said the average interest rate over the lifetime of the new Greek bonds must “clearly below 4 percent,” with an average rate of less than 3.5 percent for the period until 2020 _ far below the 4 percent demanded by the Institute of International Finance, which has been leading the negotiations for the private bondholders.

The caps on the interest rates underline that the eurozone and the IMF are unwilling to increase new rescue loans above the promised euro130 billion, even though Greece’s economic situation has deteriorated. After already granting Greece a euro110 billion bailout in May 2010, the eurozone and the IMF are threatening to withhold further funding for the country, which has repeatedly failed to hit budget and reform targets required in return for the financial aid.

The interest rate caps will also seriously test the willingness of private bondholders to agree to a debt deal voluntarily. IIF head Charles Dallara over the weekend had characterized the bondholders’ most recent offer as the best possible.

Greek finance minister Evangelos Venizelos was nevertheless confident that the two sides could find common ground.

“We have the green light from the Eurogroup to close the deal with the private sector in the next few days,” Venizelos said in Brussels.

The alternative to a voluntary deal would be to force losses on to investors _ a move that the eurozone has so far been unwilling to make. Officials fear that a forced default could trigger panic on financial markets and hurt bigger countries like Italy, Spain or even France.

Dutch Finance Minister Jan Kees de Jager has said that a voluntary deal was not a must and that getting Greece’s debt down to a sustainable level was a bigger priority.

“Greece and the banks have to do more in order to reach a sustainable debt level,” he told reporters Tuesday as he arrived for a second day of meetings with his European counterparts. “We have to await the discussions about that because a sustainable debt level is absolutely a precondition for the next (rescue) program.”

Europe’s finance ministers are meeting in Brussels to discuss other elements of their efforts to fight the wider crisis _ including a permanent bailout fund for nations in financial distress and a balanced budget treaty.

Greek stocks opened lower Tuesday, shedding a collective 3 percent one day after optimism on the debt writedown deal sparked a 5 percent rally.

Meanwhile, updated budget execution figures released by the Greek Finance Ministry showed that despite massive spending cuts, the country’s fiscal deficit for 2011 was actually higher than in 2010.

Last year’s fiscal deficit hit euro21.72 billion ($28.27 billion) _ euro270 million ($350 million) more than in 2010.

Revenues were euro910 million ($1.18 billion) below target, but the ministry said this was offset by higher-than-anticipated spending cuts of euro896 million ($1.16 billion).

These figures are on a cash basis, and exclude some categories of spending taken into account in calculating the final budget deficit for 2011 _ which Greece has pledged to cut to about euro20 billion ($26 billion).

__

Nicolas Paphitis in Athens, Greece, contributed to this story.

Source

The stock market has had an impressive January. The staid companies that make up the Dow Jones industrial average have gained 4 percent in three weeks, and the broader market has done even better.

But the Nasdaq composite _ a collection of technology stocks whose dot-com heyday was more than a decade ago _ has left them both in the dust.

That’s no surprise when you consider tech stocks took a licking last year. Tech companies tend to carry more risk _ a problem for the Nasdaq during last year’s market gyrations. As investors regain confidence in the economy, riskier plays are doing well.

But experts say the Nasdaq’s gains reflect long-term currents that could lift tech stocks through 2012 and beyond. Many companies put off replacing worn-out technology during the recession. To compete and survive, they need to invest in tech.

There’s also a growing global market for technology as more nations try to reduce labor costs by automating everything from factories to cash registers.

And the biggest tech companies face less competition these days when they try to acquire smaller companies. Many of their mid-sized rivals for those deals were weeded out after the dot-com bust and the financial crisis.

In the market for mergers and acquisitions, established players like IBM and Oracle can be picky about buying only those companies that will increase their earnings _ and probably their stock prices.

In other words, it’s not all about Microsoft-style titans and trendy social media companies like LinkedIn and Zynga. The Nasdaq contains more than 3,000 companies, many of them relative startups compared with the companies in the Standard & Poor’s 500 index.

For the year _ just 13 trading days old _ the Nasdaq composite is up 7 percent, compared with 4.6 percent for the S&P 500 and 4.1 percent for the Dow.

“It looks like it’s going to be their year, or at least their month,” says Michael Vogelzang, chief investment officer at Boston Advisors LLC.

The Nasdaq sank 1.8 percent last year, while the Dow rose 5.5 percent and the S&P was flat. That left tech stocks relatively cheap, giving them more space to rise as the broader market rallied. Oracle is up 11.9 percent this year, Microsoft 14.5 percent.

Vogelzang and others say the tech rally has further to go.

“If you want to make your company more productive, you have to turn to the world of technology for that,” says Kim Caughey Forrest, senior analyst with Fort Pitt Capital Group.

She expects the S&P 500’s tech sector to outperform the broader market because of strong demand from U.S. companies, developing nations such as China and even cash-strapped European governments. As China’s banking system exploded to serve a growing middle class, banks there spent big on IBM technology, she noted.

“Nobody questions whether they need the latest and greatest technology anymore. They know they need to keep up their technology spending,” says Eric Gebaide, managing director of Innovation Advisors, a tech-focused investment bank and strategic advisory firm.

Gebaide and others mentioned many companies’ efforts to move their computing and data storage off-site _ trends known as “cloud computing” and “virtualization.” Long-distance computing is cheaper, but it requires technology.

But why are tech stocks rallying now? The cloud computing transition has been under way for years, and spending by companies has driven much of the U.S. recovery since the economy emerged from recession in June 2009.

It’s all about the investment cycle, says Jack Ablin, chief investment officer with Harris Private Bank. He says investors are finally willing to “flex their speculative muscles in a market that isn’t falling apart in the way they feared last year.”

Last year, some of the best-performing stocks were consumer staples and utilities _ lower-risk industries where demand is consistent even the economy is slow. This year, utilities in the S&P are down 3.7 percent, while tech companies are up 6 percent.

The move out of so-called defensive stocks, the ones you want to own in a slow economy, is a sign that investors are willing to embrace risk again.

“You’re getting this big market rotation,” Vogelzang says. “People made money last year in the boring, stable industries, and they’re saying, `Hey, I better get on this economy train while I can.’”

Tech companies learned hard lessons from the dot-com bust of the early 2000s and the 2008 financial crisis, says Gebaide of Innovation Advisors. They hold more cash than most types of companies and carry less debt. That leaves them less vulnerable to bankruptcy or a loss of investor confidence.

Given its twice-stung discipline, tech is positioned to drive the economy _ “perhaps the best it has been as a sector in the past 20 years,” Gebaide says.

The biggest threat to the industry, Gebaide says, is a slowdown in the early investment that helps startups grow into viable companies. Those early dollars used to offer massive returns to savvy investors when a good pick went public.

Today, the upside for venture capitalists is limited because far fewer companies are going public in big stock offerings. The bar is much higher after dot-com era debacles like Pets.com. Before underwriting a deal or buying chunks of stock, banks and investors want to see millions in annual revenue and established customer bases. It’s tough for younger tech companies to meet those standards.

Peter Falvey, managing director of Morgan Keegan Technology Group, says there’s plenty of capital, entrepreneurship and good ideas to keep companies’ bottom lines _ and stock prices _ rising.

Falvey’s group specializes in tech mergers and acquisitions _ the kinds of deals that allow IBM or Oracle to bring a small competitor’s product to a wider audience and add to their own earnings. Last year was the best for M&A in his group’s 11-year history, and this year’s deal pipeline already is stronger than last year’s was at this time, he says.

A company like IBM “has huge amounts of capital and a global customer base, plus complete hardware-software services,” Falvey says. “Once you put a small company into that machine, IBM can do really well with it.”

The industry’s earlier downturns also helped big companies by weeding out smaller players. The number of publicly traded tech companies has decreased by a third since 2000, Gebaide says. Now the big dogs can pick and choose more carefully, acquiring only businesses that are almost certain to increase their profits.

To be sure, high-tech companies are higher-risk investments, and they could lose value quickly if the market tanks because of a debt catastrophe in Europe or something unforeseen.

“People love tech until we get an economic shock, or negative economic statistics start to come out,” Vogelzang says. “Then all of a sudden, people will say, `Whoa, I need to go buy some utilities again.”

But investors should take tech’s success at this stage as a promising sign, says Ryan Detrick, senior technical strategist with Schaeffer’s Investment Research. He says higher-risk bets like tech stocks tend to rise as the market enters a phase of long-term growth.

Housing, tech and small-company stocks all have risen faster than broad indexes since October, Detrick says. Those sectors are sensitive to improving economic data, he says.

“When you start to see tech taking charge, that’s definitely a potential step in the right direction for future gains, potentially for the whole year,” Detrick says. “Those are the sectors you want to see lead a bull market.”

Source

Berkshire Hathaway Inc.’s energy business agreed to buy an 81-megawatt wind power project from Invenergy Wind LLC to expand production in Illinois.

The Bishop Hill II project, which is under construction, will use 50 General Electric Co. 1.62-megawatt turbines, according to a statement Friday from Berkshire’s MidAmerican Energy Holdings Co. in Omaha, Neb.

Berkshire, led by Warren Buffett, has been expanding renewable production at the energy unit, which also produces power with coal and natural gas. Mid-American has invested about $6 billion in wind generation and built or acquired more than 3,300 megawatts of the renewable energy source in states including Iowa, Wyoming, Washington and Oregon since 2004. Last month, the unit agreed to buy the $2 billion Topaz solar project in California from First Solar Inc payday loans.

Wind “meets current and future energy needs in an environmentally efficient and cost-effective manner,” said MidAmerican Chairman and Chief Executive Greg Abel.

The Bishop Hill II wind project is near the town of Galva, Ill., about 40 miles northwest of Peoria. The project is expected to be in commercial operation in the fourth quarter. A unit of Ameren Corp. in Illinois has agreed to buy electricity from the project under a 20-year power-purchase agreement. Terms of the Invenergy deal weren’t disclosed.

Source

The number of Americans filing for new jobless benefits dropped to a near four-year low last week, pointing to some building up of momentum in the labor market and the economy.

But the upbeat economic outlook was dampened by other data on Thursday showing a drop in new residential construction in December after hefty gains the prior month.

Initial claims for state unemployment benefits plunged 50,000 to a seasonally adjusted 352,000, the lowest level since April 2008, the Labor Department said.

That was the largest drop since September 2005 and took claims within spitting distance of the 350,000 mark that economists say would signal strong job growth.

The four-week moving average of claims, considered to be a better measure of labor market trends, dropped 3,500 to 379,000 last week. Analysts had expected initial claims to fall only to 385,000.

“We have to see if there are some seasonality issues involved here, but on the surface this number looks to be very positive and is pretty much consistent with other data we’ve seen recently that suggest improvement in underlying fundamentals in the U.S.,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.

U.S. stock futures added to gains after the data, while Treasury debt prices widened losses.

Last week’s claims data covered the survey period for January nonfarm payrolls and claims dropped by 14,000 between the December and January survey periods.

Payrolls increased 200,000 in December, with the unemployment rate dropping to a near three-year low of 8.5 percent.

The claims data builds on a rash of stronger-than-expected economic signals and could further temper expectations among some economists that the Federal Reserve could launch a fresh round of bond buying to spur the recovery.

The Fed meets next week and no policy action is expected, outside from the possibility the central bank may signal it will keep overnight rates pressed to zero for longer than had previously been expected.

But with continued signs of stress in the housing market, the U.S. central bank will stay very much in the picture.

Housing starts fell 4.1 percent to a seasonally adjusted annual rate of 657,000 units in December, the Commerce Department said in a separate report guaranteed payday loans. Economists had expected housing starts to fall to a 680,000-unit rate.

Permits for future home construction slipped 0.1 percent to an annual rate of 679,000 units last month.

“Housing continues to bounce along at the bottom, suggesting that housing is not going to recover for several years to come. If we are relying on housing to drive this recovery it seems we will continue on this tepid path for a very long time,” said Lindsey Piegza, an economist at FTN Financial in New York.

INFLATION STILL MUTED

In another report, the Labor Department said its Consumer Price Index was unchanged in December for a second straight month.

Core CPI - excluding food and energy - inched up 0.1 percent after rising up 0.2 percent in November. That was in line with economists’ expectations.

Last month, overall inflation was held back by gasoline prices, which fell 2.0 percent - declining for a third straight month. Food prices rose a modest 0.2 percent after nudging up 0.1 percent in November.

Overall consumer prices rose 3.0 percent year-on-year after increasing 3.4 percent in November. That was in line with economists’ expectations.

Core consumer prices were last month dampened by new motor vehicle costs, which fell 0.2 percent - the third straight month of declines. Prices for used cars and trucks dropped 0.9 percent, falling a fourth month in a row.

Apparel prices slipped 0.1 percent, indicating discounting by retailers to attract holiday shoppers. Apparel prices rose 0.6 percent in November.

But housing costs held up, with owners’ equivalent rent rising 0.2 percent last month, reflecting the rising demand for rental apartments as the weak housing market pushes Americans away from home ownership. This category rose 0.1 percent in November.

In the 12 months to December, core CPI increased 2.2 percent after rising by the same margin in November. This measure has rebounded from a record low of 0.6 percent in October.

The Fed would like to see core inflation at 2 percent or a little under, although the price measure its follows most closely tends to run below the core CPI.

Read more

GROOVY GROVE: One of St. Louis’ newest designated communities, the Grove, has started off the new year with several new business openings and planned openings of several more.

Urban Breath Yoga at 4237 Manchester Avenue opened on Jan. 1, which, yes, was intended to coincide with the need for a place for hangover recovery. Director Cathleen Williams said the studio was previously located in Dogtown, and that she made the new space the main location because it has a larger reception area and additional room for classes.

Located in the same block is No Coast Skateboards, which opened last year and bills itself as the only skater-owned and operated shop in St. Louis. Planning to open soon along the same stretch is the SoHo Restaurant and Lounge, which is described as an upscale restaurant with a rooftop deck for dining and lounging payday loan.

Sameem Afghan Restaurant, which had originally been on South Grand but closed for a couple of years, reopened last week at 4341 Manchester Avenue. Owner Fahime Mohammad also operates Al Waha Restaurant and Hookah Lounge at the old Sameem’s location. He also operates the Kabob Palace catering company in Manchester.

The addition of Afghan cuisine adds another dimension to the variety of international cuisine in the Grove, which also has restaurants offering Baja Mexican, Nepalese, soul food and Spanish tapas. Rounding it off will be O’Shay’s Irish Pub, which is planning a spring opening.

Source

Canada