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Warren Buffett urges Congress to raise taxes on wealthy

Written By Unknown on Selasa, 27 November 2012 | 00.33

OMAHA, Neb. — Billionaire Warren Buffett is again calling for higher taxes on the "ultra-rich" and he's urging Congress to compromise on spending cuts and tax increases.

Buffett expressed his views on fiscal policy in an opinion article Monday in The New York Times [NYT].

In the article, Buffett mocked the idea that investors would pull back if capital gains taxes increase. Buffett says he's never seen that happen.

The head of the conglomerate Berkshire Hathaway Inc. reiterated his call for a minimum tax of 30 percent on income between $1 million and $10 million, and a 35 percent rate for income above that.

Buffett says both Republicans and Democrats will have to make major concessions to put the nation on a fiscally sound path, but he says Americans won't accept anything less.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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NYSE warns iParty over low stock price

Party goods retailer iParty Corp. said today it has received a compliance notice from the New York Stock Exchange due to the Dedham-based company's low selling stock price for a substantial period of time.

The NYSE said iParty's continued listing is predicated on it executing a reverse stock split of its common stock within a reasonable period of time, which the exchange has determined to be no later than May 20, 2013. If iParty does not complete a reverse stock split prior to that time, it could become subject to delisting procedures.

Company shares have been trading between 11 cents and 25 cents for the past year.

Earlier this month, the company disclosed it formed a special committee of the independent members of the board of directors and retained James & Associates Inc. to assist the retailer in exploring a broad range of financial and strategic alternatives to enhance shareholder value.

Additionally, at iParty's 2012 annual meeting, company stockholders approved an amendment to iParty's restated certificate of incorporation to effect a reverse stock split, pursuant to which the existing shares of iParty's common stock would be combined into new shares of iParty common stock at an exchange ratio ranging between one-for-five and one-for-20, to be determined by the board of directors.

At this time, no decision has been made to engage in a financing or strategic transaction and the special committee has not set a definitive timetable for this review process, the company said, adding that given the ongoing review process, the board has made no determination to effect the reverse stock split.

The company has 54 stores in New England and Florida and an e-commerce site. Due at least in part to Hurricane Sandy hitting two days before Halloween, iParty's October sales fell 6.5 percent to $16.4 million. The company last month reported a $3.31 million loss for the nine months ended Sept. 29.


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Google buys Wi-Fi provider ICOA for $400 million

NEW YORK — Google has bought an operator of Wi-Fi hotspots in high-traffic locations such as airports, hotels and fast-food restaurants.

Google Inc. is paying $400 million for ICOA Inc., a Warwick, R.I., company, as part of the search company's efforts to diversify its portfolio.

ICOA owns or operates Wi-Fi wireless access services in 40 states. It also sells technology for others to run similar Wi-Fi networks under their own brands.

It's not Google's first venture into Internet access. The Mountain View, Calif., company is building an ultra-fast wired Internet service in Kansas City, primarily to showcase for what's technically possible and to test new ways to use the Internet.

Shares of Google fell $6.07, or 0.9 percent, to $661.90 in morning trading Monday.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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UK picks Canadian to lead Bank of England

LONDON — The British government has chosen the head of Canada's central bank to become governor of the Bank of England effective July 1.

Treasury chief George Osborne announced the surprise choice of Mark Carney to the House of Commons on Monday.

The new governor will be responsible for supervising the U.K.'s banking industry as well as setting the country's main interest rate. It is the first time someone who isn't British has been selected to lead the U.K.'s monetary authority.

Carney will succeed the current governor, Mervyn King, when his term ends next year. The Canadian had been speculated as a possible choice but was not considered a front-runner.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Ranbaxy recalls generic Lipitor doses

TRENTON, N.J. — Ranbaxy Pharmaceuticals Inc. has recalled dozens of lots of its generic version of cholesterol drug Lipitor because some may contain tiny glass particles, the latest in a string of manufacturing deficiencies that once led U.S. regulators to bar imports of the Indian company's medicines.

Ranbaxy, a subsidiary of Ranbaxy Laboratories Ltd., India's biggest drugmaker, is operating under increased scrutiny from the U.S. Food and Drug Administration because of quality lapses at multiple Ranbaxy factories over the past several years. The FDA also has alleged the company lied about test results for more than two dozen of its generic drugs several years ago.

On Friday, Ranbaxy posted a notice on its U.S. website, saying it's recalling 10-, 20- and 40-milligram doses of tablets of atorvastatin calcium. That's generic Lipitor, the cholesterol fighter that reigned for years as the world's top-selling drug.

The recall includes 41 lots of the drug, nearly all with 90 pills per bottle, but three lots contain 500 pills per bottle. It's unclear how many bottles are in each lot, but medicine batches typically contain many thousands of pills. The 80-milligram strength tablets are not affected.

Ranbaxy spokesman Chuck Caprariello did not answer questions or provide any additional information beyond the statement on the company's website.

"Ranbaxy is proactively recalling the drug product lots out of an abundance of caution," the website statement read. "This recall is being conducted with the full knowledge of the U.S. FDA."

The company also filed a two-sentence statement with the Bombay Stock Exchange stating Ranbaxy's investigation would be completed within two weeks, but that after that temporary disruption to the U.S. supply, the company expected to resume shipments here.

Patients who've filled a prescription can contact their pharmacy to determine whether it was made by Ranbaxy or another generic drugmaker and, if it's from Ranbaxy, whether it came from a recalled lot.

Ranbaxy's manufacturing deficiencies, dating to 2006, led to a lengthy investigation and sanctions by the FDA. During the probe, federal investigators found Ranbaxy didn't properly test the shelf life and other safety factors of its drugs and then lied about the results.

In mid-2008, the FDA barred Ranbaxy from shipping into the U.S more than 30 different drugs made at factories in India. Meanwhile, the U.S. Department of Justice demanded Ranbaxy turn over internal documents, alleging the company lied about ingredients and formulations of some medications.

In early 2009, the FDA said it would not consider any new applications from Ranbaxy to sell in the U.S. any products made at the troubled factories.

As FDA discussions with Ranbaxy continued, it appeared Ranbaxy would lose its shot at a revenue windfall when Lipitor's generic U.S. patent expired last Nov. 30. At the time, Lipitor brought in almost $8 billion a year in U.S. sales.

As often happens when patents first expire, for the first six months only one generic rival could compete with brand-name Lipitor. Ranbaxy had that right, although an authorized generic from Lipitor maker Pfizer Inc. and partner Watson Pharmaceuticals Inc. went on sale on Dec. 1. With competition so limited, the generic prices only declined a bit from brand-name drug's price of about $115 a month — until several other generics entered the market six months later.

The FDA finally ended the suspense, deciding just before midnight on Nov. 30 to let Ranbaxy sell generic Lipitor made at the company's Ohm Laboratories factory in central New Jersey. It was unclear Friday whether the recalled Ranbaxy pills were made there or elsewhere.

Meanwhile, Ranbaxy is operating under a settlement with the FDA, called a consent decree, signed on Dec. 20, 2011. It requires Ranbaxy to improve manufacturing procedures, ensure data on its products is accurate and undergo extra oversight and review by an independent third party for five years. Ranbaxy at the time set aside $500 million to cover potential criminal and civil liability stemming from the Justice Department investigation.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Facebook stock climbs after upgrade

NEW YORK — Facebook's stock is climbing after an upgrade from an analyst who believes Wall Street is underestimating the company's potential to grow revenue.

Bernstein Research analyst Carlos Kirjner said Monday that Facebook Inc. is likely to beat Wall Street's revenue expectations over the next 12 to 24 months. He expects Facebook to hit $6.98 billion in revenue in 2013, some 9 percent higher than the average analyst's expectation. In 2011, the social network reported revenue of $3.71 billion.

Kirjner upgraded Facebook's stock to "Outperform" from "Market Perform," saying that mobile advertising will drive revenue growth.

Facebook's stock is up $1.85, or 7.7 percent, at $25.84. It's still down 32 percent from its initial public offering price of $38.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Markets nervous as euro ministers meet on Greece

LONDON — Concerns that European finance ministers will again fail to reach an agreement on handing over more bailout cash to Greece weighed on markets Monday.

Following last week's bout of optimism, which sent a number of stock indexes up to near 2012 highs and the euro back towards $1.30, some investors were expected to cash in on the gains.

Doubts that European ministers will fail again to agree on a deal for Greece encouraged investors to sell, as did election results in the Spanish region of Catalonia that saw separatists gain ground.

In Europe, Britain's FTSE 100 stock index fell 0.6 percent to close at 5,786.72 while Germany's DAX fell 0.2 percent to 7,292.03. The CAC-40 in France dropped 0.8 percent to 3,500.94.

The euro meanwhile could not add to recent gains and was trading 0.1 percent lower at $1.2962.

In Brussels, the 17 eurozone finance ministers were meeting for the third time in as many weeks to try to agree a strategy that will allow them to release some €44 billion ($56.8 billion) for the cash-strapped country.

The expectation is that Greece will get the money and an extra two years to make the reforms that are a condition of the bailout. But an extension would cost the eurozone several billion more and finding that money has proved difficult.

Several proposals to plug the financial gap have been proposed, including reducing the interest rate Greece pays on loans it is getting from euro partners and the International Monetary Fund. Time is short, as Greece is running out of the money it needs to pay its day-to-day running costs.

"Clearly any decision by the eurogroup to kick the Greek issue further down the road will stand to unsettle markets globally," said Fawad Razaqzada, market strategist at GFT Markets.

In the U.S., the Dow Jones industrial average was down 0.7 percent at 12,920.70 while the broader S&P 500 index fell 0.6 percent to 1,400.64.

The falls on Wall Street come despite signs that the crucial holiday shopping season has enjoyed a solid start. Surveys showed that Americans visited stores and websites in record numbers last Friday, the day after the Thanksgiving holiday.

Earlier, Asian markets failed to make much headway. While Japan's Nikkei 225 index rose 0.2 percent to 9,388.94, Hong Kong's Hang Seng was sapped of momentum by lethargic mainland Chinese markets, closing 0.3 percent lower at 21,857.77.

In China, the Shanghai Composite Index was down 0.5 percent to 2,017.46 while the smaller Shenzhen Composite Index lost 1.4 percent to 789.49.

Oil prices tracked equities lower, with the benchmark New York rate down 79 cents at $87.49 per barrel in electronic trading

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Mary Schapiro stepping down from SEC; successor tapped

WASHINGTON — Mary Schapiro will step down as chairman of the Securities and Exchange Commission next month after a tumultuous tenure in which she helped lead the U.S. government's regulatory response to the 2008 financial crisis.

President Barack Obama designated Elisse Walter, an SEC commissioner, to replace Schapiro.

Schapiro will leave Dec. 14, the SEC said Monday. She was appointed by Obama in the midst of the worst financial crisis since the Great Depression. She took over after the agency failed to detect the Bernard Madoff Ponzi scheme.

Schapiro is credited with helping reshape the SEC after it was accused of failing to detect reckless investments by many of Wall Street's largest financial institutions before the crisis. And she led an agency that brought civil charges against the nation's largest banks.

But critics argued that she failed to act aggressively to charge leading individuals at those banks who may have contributed to the crisis. Consumer advocates questioned Schapiro's appointment because she had led the securities industry's self-policing organization, the Financial Industry Regulatory Authority.

Under Schapiro, the SEC reached its largest settlement ever with a financial institution. Goldman Sachs & Co. agreed in July 2010 to pay $550 million to settle civil fraud charges that it misled investors about mortgage securities before the housing market collapsed in 2007. Similar settlements followed with Citigroup Inc., JPMorgan Chase & Co. and others.

The Goldman case came to symbolize a lingering critique of Schapiro's tenure: No senior executives were singled out. The penalty amounted to roughly two weeks of earnings at Goldman. And Goldman was allowed to settle the charges without admitting or denying any wrongdoing, as were other large banks that faced similar charges.

Among the leading critics was U.S. District Judge Jed Rakoff, who questioned how the SEC could allow an institution to settle serious securities fraud without any admission or denial of guilt. Rakoff later threw out a $285 million deal with Citigroup because of that aspect of the deal.

Lawmakers and experts say Schapiro made the SEC more efficient, and they note that she fought for increased funding needed to enforce new rules enacted after the crisis. She often clashed with Republican lawmakers who had opposed the 2010 financial overhaul law and wanted to cut the SEC's budget.

"When Mary agreed to serve nearly four years ago, she was fully aware of the difficulties facing the SEC and our economy as a whole," Obama said in a statement Monday. "But she accepted the challenge, and today, the SEC is stronger and our financial system is safer and better able to serve the American people — thanks in large part to Mary's hard work."

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Top lobster scientists gather in Maine

PORTLAND, Maine — On the heels of a summer that featured a potentially record-breaking lobster haul in Maine and Canada and a crash in wholesale prices, top lobster scientists are meeting in Maine to look at fundamental changes that have affected lobsters in recent years.

The Maine Sea Grant program is hosting a conference in Portland focusing on things such as warming ocean temperatures, the changing food web and seafood economics. About 135 people have registered, including scientists from the U.S., Canada and Europe.

Conference co-chairman Rick Wahle (WALL'-ee), a University of Maine research professor, said the lobster industry is at a critical juncture, with the Maine harvest going gangbusters but the fishery virtually collapsed in southern New England.

The symposium begins with a Tuesday evening reception and wraps up Friday.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Fiscal cliff warning sends stock market lower

Traders came back to work on Monday after the Thanksgiving weekend to the same old worries about the fiscal cliff and the European debt crisis.

The stock market fell in midday trading as Washington lawmakers and business groups bickered over the proper rates for taxing and spending. In Europe, leaders tried to cobble together another bailout loan for Greece.

The Dow Jones industrial average was down 91 points at 12,919 as of noon. The Standard & Poor's 500 was down eight at 1,401 and the Nasdaq composite index slipped seven points to 2,960.

Overall it was a quiet morning, with no major economic reports due in the U.S. and no major companies scheduled to make big announcements.

"The themes seem about as recycled as Thanksgiving turkey," David Kelly, chief global strategist at JPMorgan Funds, wrote in a note to clients. He expected a better read on the economy later this week, with reports on consumer confidence on Tuesday and unemployment claims and third-quarter economic growth on Thursday.

Scott Carmack, co-portfolio manager at Leader Capital in Portland, Ore., said the decline was all but inevitable given how the market soared last week. It was one of the best weeks for the Dow all year and followed four weeks of decline. Positive economic news from Germany and China, as well as initial reports Friday that holiday shopping had gotten off to a strong start helped push the market higher.

That made Monday a good day to cash out on last week's gains, Carmack said, especially because traders aren't sure how the fiscal cliff will affect the market for the rest of the year.

"Monday is a good day to take profits," Carmack said. "No one was in on Friday, so they're doing it Monday."

It's still difficult to gauge how this holiday shopping season will wind up for retailers, who rely heavily on the Christmas season. The National Retail Federation reported that 247 million shoppers visited stores and shopping websites during the long Thanksgiving weekend, up 9 percent from a year ago. They spent an average of $423, up 6 percent.

Some worry that the momentum won't last. Retailers like Macy's, Target and Saks were down in early trading. Macy's fell $1.55 to $40.17. Saks was down 41 cents to $10.11. Abercrombie & Fitch was an exception, rising 37 cents to $44.77.

Blame the disconcerting overhang of the fiscal cliff. That's when both higher taxes and cuts to government programs, like unemployment benefits and Social Security, will kick in at the end of the year unless Congress and the White House work out a compromise before then.

A government report released Monday warned that a sudden increase in taxes would crimp the spending of middle class families next year, and some analysts wondered if the uncertainty might hurt spending earlier, throughout the rest of the holiday season.

The report, by President Barack Obama's National Economic Council and his Council of Economic Advisers, estimated that a married couple earning between $50,000 and $85,000 with two children would see a $2,200 increase in their taxes.

To be sure, the fiscal cliff fighting could be mostly grandstanding. Lawmakers often fight over budget issues until the 11th hour, then work out a compromise at the last moment.

In Europe, leaders of European Union countries engaged in their own battle, trying to hammer out a deal to lend more money to debt-crippled Greece. But ailments in Greece no longer sicken the U.S. markets as readily as they used to, as many analysts have already baked European problems into their market estimates.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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