5 Thing to remember while buying a car loan with low credit

What will I need to do in order to get eligible for a loan?
All lending institutions are different however they would ask you to comprehensive an application which includes your information and personal details. The companies can also need you to offer a copy of your W-2 or present paycheck, along with information to verify your residency for instance a utility or cable bill.
Is it likely buying car no credit history?
Yes, there're many companies that work with people having all kind of credit. That includes bankruptcy as well as delinquencies. Along with you having a steady job or a stable monthly income, there would be a company that is able to offer you with the financing you need.

Indian companies advised to localise in China to improve export basket

BEIJING: Indian companies must learn to localize in China and try to be a little more creative in their operations in this country if they wish to correct the flaws in India’s trade basket. The advice came on Tuesday from Indian ambassador S.Jaishankar, who pointed out that commodities and raw materials comprised three-fourth of Indian exports to China leaving little room for manufactured goods and services.


Speaking at an India-China Business Seminar in Chengdu, capital of province of Sichuan in southwestern China, Jaishankar said the bilateral trade between the two countries was set to reach $60 billion in 2010. The two countries have long surpassed the target of $40 billion.

"Indian companies must appreciate that they will also have to localize. It is only then that they can address the demand of being readily available and overcome pre-established vendor loyalties," Jaishankar said while speaking at an India-China Business Seminar in Chengdu in western province of Sichuan on Tuesday.

Business execs say state needs overhaul

Three leading CEOs told the Detroit Economic Club Monday that Michigan needs a top-to-bottom overhaul if it hopes to rank as a top 10 state economically.

"To this day, the state is still not being realistic," Tony Earley Jr., chairman and CEO of DTE Energy, told the audience at Cobo Center. John Rakolta Jr., chairman and CEO of the Walbridge construction firm, agreed.

"All of the solutions are right there," Rakolta said. "We just don't have the willpower."

Earley, Rakolta and David Brandon, chairman and CEO of Domino's Pizza Inc., were speaking on behalf of the Michigan Turnaround Plan, a set of proposals drafted this year by Business Leaders for Michigan, the corporate leadership group formerly known as Detroit Renaissance.

The plan offers detailed suggestions for eliminating state budget deficits and fostering a more competitive environment for business in the state. The proposals cover a range of concerns, from lowering state business taxes to creating rapid transit in urban corridors.

Among other issues, the plan calls for greater investment in education but reining in benefits for teachers.

Noting the controversial nature of many of the changes, Brandon told the audience, "There's something in here that will make everyone mad." But he added, "You have to build a case for change."

Much of the program the CEOs promoted envisions changes in state government in Lansing, from eliminating the surcharge on the Michigan Business Tax to switching to a 2-year state budget plan instead of the current 1-year. And eliminating term limits so that legislators can gain more in-depth knowledge is high on the list of at least some reformers.

U.K. Automaker Support Program Make No Loans in First 10 Months

Dec. 15 (Bloomberg) -- A 2.3 billion-pound ($3.8 billion) U.K. government program to guarantee loans to car makers and their suppliers has yet to release any money, almost a year after it began.

The Automotive Assistance Program was launched on Jan. 27 to underwrite loans of more than 5 million pounds to firms with a turnover above 25 million pounds. The government agreed to lower the threshold to 1 million pounds on the advice of Parliament’s Business Committee to encourage companies to use the facility.

In a further report published today, the committee said the program still has yet to underwrite a single loan, highlighting the difficulties faced by Prime Minister Gordon Brown’s government in trying to keep investment going through the recession.

“The scheme seems to have been a wasted opportunity to support this important manufacturing sector during the recession,” Business Committee Chairman Peter Luff said in an e-mailed statement. “It is up to the government to prove us wrong, but they must ensure that funds are released to companies very quickly.”

The Business Department said in an e-mailed statement it was negotiating with 10 companies to underwrite loans worth 2 billion pounds.

Bajaj FinServ may foray into home-loan biz

“We already offer secured loans against property and we are the fourth-largest in that segment. We are now evaluating getting into the home loan business, though we have not taken a final decision yet,” Bajaj Finserv managing director Sanjiv Bajaj told ET.

Two of the planned diversification moves are slated to take off next year. “We will start offering retail loans against shares next year and we are also entering the construction equipment financing business. FinServ may even look at commercial vehicles when sister company Bajaj Auto diversifies its portfolio,” Mr Bajaj said.

Already, Bajaj FinServ has expanded into two new businesses this year. In April 2009, Bajaj FinServ signed an agreement with insurance partner Allianz for an asset management company (AMC). Bajaj Financial Solutions, a 100% financial products, services distribution and advisory offshoot, was set up later. “We want to tap into a new set of customers with these businesses,” said Mr Bajaj.

Bank of America pledges $5 billion more for small businesses

NEW YORK (CNNMoney.com) -- Bank of America pledged Monday to increase its lending to small and medium sized businesses by $5 billion next year. The announcement immediately followed a White House meeting at which President Obama pressured the nation's biggest bailed-out banks to start reinvesting in the rest of the economy.

"Bank of America is determined to do our part to help the economy grow next year and reduce unemployment by making every good loan we can make," CEO Ken Lewis said in a statement.

Lewis acknowledged the key role that small businesses play in creating jobs, calling them the "lifeblood" of the U.S. economy. "Our improved financial condition and our optimism about the economy will allow us to step up lending to support these clients," he said.

Bank of America, based in Charlotte, N.C., is currently the second largest small business lender in the U.S., behind only Wells , according to reports filed to the Treasury Department. Bank of America ended September with $41.9 billion in small business loans outstanding. That tally includes credit lines, credit cards, traditional loans and other financing.

AT&T Price Moves May Backfire

Efforts by the mobile-phone service provider to charge more for heavy data usage may alienate customers and stymie innovation and growth in the wireless Web

AT&T giveth and AT&T taketh away. The wireless service provider that has mastered all-you-can-eat monthly service packages for its mobile-phone customers is having second thoughts. Concerned that some customers are consuming more than their share of data over wireless networks, the company plans to offer some subscribers "incentives" to "reduce or modify their usage" of bandwidth, AT&T Mobility.
De la Vega, speaking at a conference in New York sponsored by investment bank UBSdidn't specify the company's plans, but said one step will be giving users more information on how much data they've consumed. Analysts speculate AT&T may move to a tiered pricing scheme where subscribers are charged more depending on how much bandwidth they use—say, through downloading videos or sending and receiving big documents. Some carriers in other countries, including Canada and Australia, already use tiered pricing. Yet in a market where customers have grown accustomed to paying a single fee no matter how much data they consume, a switch by AT&T, the largest U.S. mobile-phone operator, may backfire. Analysts and consumer advocates say the move may curb demand for smartphones and wireless data products, stymie development by programmers who specialize in mobile applications, and push subscribers into the arms of rivals,

Scrapping of scrappage worries VW

Volkswagen says it expects to post record sales again this year, but it has forecast that 2010 will be 'extremely difficult' as scrappage schemes worldwide are wound down.

The biggest European car maker said sales of it nine brands - which include Audi, Seat and Skoda - came to 531,000 vehicles last month, an increase of 19.1% from November 2008. But deliveries were 4.7% lower than in October.

In the 11 months from January to November, sales gained 2% from the same period last year to 5.85 million vehicles, which allowed VW to say it expected a 'slight rise in full-year deliveries' from the record 6.2 million in 2008.

VW sales director Detlef Wittig was quoted as saying that 'the coming year will be extremely difficult'. VW expected sales to continue rising in its biggest market, China, but also foresees 'a marked decline on the European market in particular', as sales have been boosted this year by government premiums to drivers who scrapped old cars

Son of late Abu Dhabi ruler put on trial

Abu Dhabi authorities have put on trial Sheikh Issa bin Zayed al-Nahyan, a member of the ruling family caught on tape apparently torturing an Afghan business associate, the Financial Times can reveal.

Sheikh Issa, one of 19 sons of Sheikh Zayed, the founding father of the United Arab Emirates and Abu Dhabi's late ruler, is charged with causing harm and endangering life.

This unprecedented trial, held away from the public eye, will be seen as a barometer for the rule of law in Abu Dhabi, where the lines between the government and ruling families are blurred.

A former aide, Bassam Nabulsi, leaked a video this year that appeared to show Sheikh Issa brutally torturing an Afghan commodities trader, Mohammed Shah Poor, in 2004.

Mr Nabulsi, a US citizen, is suing for damages in a separate case in Texas, claiming Sheikh Issa had him tortured and imprisoned after he threatened to reveal the tapes' existence.

The graphic scenes - censored in the UAE - appear to show Sheikh Issa beating Mr Poor with nails, suffocating him by shoving sand in his mouth and driving a 4x4 vehicle over his body, helped by security guards.

In April the video was broadcast on US television, prompting politicians to question a nuclear cooperation agreement with the UAE .

In May, Abu Dhabi authorities detained Sheikh Issa , who does not hold a government position, and began a criminal investigation, saying "all persons are equal before the law". Despite concern about airing the ruling family's dirty linen, the government has pressed on with the trial.

A spokesman said it would be inappropriate to comment while proceedings are in progress.

Chinese wind energy giant pulls off stellar IPO

There were conflicting signals on the health of the clean tech IPO market this week, as one leading Chinese renewable energy firm postponed its planned floatation and another pulled off an encouraging first day of trading.

China Longyuan Power Group Corp, the largest wind farm developer in Asia, debuted on the Hong Kong Stock Exchange yesterday and saw its share price climb 9.44 per cent on its first day of trading.

The IPO was reportedly 235 times oversubscribed and the energy giant reportedly raised HK$17.14bn through the IPO, selling 2.1bn shares at the upper end of the expected price range.

The shares then started trading at HK$9.20, up 12.75 per cent on the IPO price, before climbing further to HK$8.93 at the end of the day's trading.

The company said that the cash raised through the IPO would be used to repay debt and finance new production facilities.

Cazenove Capital Acquires Thornhill

To extend its foot print in Scottish fund and wealth management industry

Cazenove Capital Management, the London-based privately owned, independent asset management house with GBP13 billion assets under management, has acquired Thornhill, an independent fund management company, reported the Financial Times.

Thornhill, with GBP600m assets under management, has offices in Edinburgh and London. It had previously acquired the private client division of Martin Currie Investment Management in Edinburgh.

Reportedly, Cazenove Capital, which has demerged from the broker of the same name five years ago intends to use the acquisition to foray into the Scottish fund and wealth management industry.

Andrew Ross, CEO of Cazenove, said that Thornhill had approached Cazenove to expand its business as the two firms serve to the same class of institutional and private clients. He said that he would only look to expand the merged business if he could find managers with a similar mindset, rather than embarking on a fresh hiring programme, reported the newspaper.

UK Nov input prices jump at fastest in a year

LONDON, Dec 11 (Reuters) - British manufacturers' input costs rose at their fastest annual pace in a year in November due to a rebound in crude oil prices after last year's falls, official data showed on Friday.

The Office for the National Statistics said non-seasonally adjusted input prices rose 4.0 percent on the year in November, broadly in line with expectations for a rise of 4.1 percent and up from 0.4 percent in October.

Output prices rose 2.9 percent on the year on a non-seasonally adjusted basis, the fastest pace since February and bang on expectations. Core output prices, which exclude food, drink, tobacco and petrol, were 2 percent higher on a year ago. Analysts had expected a reading of 2.1 percent.

The figures are likely to reinforce expecations that inflationary pressures will pick up over the coming months, potentially driving consumer price inflation towards 3 percent.

Policymakers have said they expect the increase but are focussing more on the medium term outlook for inflation, which looks very benign.

As such, analysts expect interest rates to remain at their record low 0.5 percent until at least well into next year.

The main upward contributor to the rise in input price inflation came from crude oil prices, which jumped 30 percent on the year -- the biggest annual increase since September 2008.

The ONS said that spike was a result of oil prices rebounding this year after a sharp fall at the end of last year.

Airbus A400M starts long-awaited maiden flight

SEVILLE, Spain, Dec 11 (Reuters) - A new European military transport plane, the Airbus A400M, took to the skies on Friday in a boost to a 20 billion euro ($29.5 billion) project threatened by soaring costs after a two-year development delay.

British test pilot Ed Strongman and crew donned parachutes over red overalls to power up the propellor plane -- dubbed "grizzly" by test engineers after its burly appearance.

The A400M was commissioned by seven European NATO countries to support combat operations in rugged zones like Afghanistan or to assist in humanitarian relief operations.

The plane carries aloft its designers' hopes that the three-hour maiden flight will help to save Europe's biggest defence project from being grounded.

But an estimated 5 billion euro cost overrun has placed the plane's future in doubt, forcing Airbus to hold negotiations with buyers on the sidelines of the inaugural flight. (Reporting by Tim Hepher, Sabine Siebold; Editing by Tracy Rucinski)

Airbus A400M starts long-awaited maiden flight

SEVILLE, Spain, Dec 11 (Reuters) - A new European military transport plane, the Airbus A400M, took to the skies on Friday in a boost to a 20 billion euro ($29.5 billion) project threatened by soaring costs after a two-year development delay.

British test pilot Ed Strongman and crew donned parachutes over red overalls to power up the propellor plane -- dubbed "grizzly" by test engineers after its burly appearance.

The A400M was commissioned by seven European NATO countries to support combat operations in rugged zones like Afghanistan or to assist in humanitarian relief operations.

The plane carries aloft its designers' hopes that the three-hour maiden flight will help to save Europe's biggest defence project from being grounded.

But an estimated 5 billion euro cost overrun has placed the plane's future in doubt, forcing Airbus to hold negotiations with buyers on the sidelines of the inaugural flight. (Reporting by Tim Hepher, Sabine Siebold; Editing by Tracy Rucinski)

New Chinese rules put AXA's Taikang sale on hold

HONG KONG, Dec 11 (Reuters) - The auction for French insurer AXA's stake in China's No.4 life insurer, Taikang Life, has been put on hold amid growing concerns about new rules from China's insurance regulator, sources with direct knowledge of the matter said on Friday.

AXA's sale of its 15.6 percent stake in Taikang had received bids from Singapore's state investor Temasek, Blackstone Group, KKR and other funds, sources previously said, with the stake expected to be worth more than $1 billion.

But concerns about China's new rules on insurance company ownership have sparked worries that the firms lining up to bid for the stake fail to match regulatory standards, sources say.

Taikang declined to comment. AXA was unavailable to comment. (Reporting by George Chen and Michael Flaherty; Editing by Jacqueline Wong)

Citi Expands Branch Network In China

To offer banking and wealth management services in Chonqing region

Citibank (China) has opened a branch in Chongqing, its ninth in China. The branch offers banking and wealth management services to both corporate and individual customers in and around Chongqing. The new sub-branch will also be Citibank’s second retail outlet in China to be submitted for leadership in energy and environmental design (LEED) certification.

The Chongqing branch offers a wide range of RMB and foreign currency products and services to multinational and local companies, Chinese residents and foreign nationals. Corporate banking services include cash management, trade finance and services, loans and syndication, FX transactions, project finance and structured finance and other financial products.

Other services provided include savings, deposits and investment products (including premium accounts, structured investment accounts and QDII products) and ATM/debit cards.

William Rhodes, senior vice chairman of Citigroup, said: "Citi has an unmatched international presence in financial services, and China remains one of our priority markets. We are committed to continuing to invest in China over time, and we are delighted to be opening a branch in the city of Chongqing."

Andrew Au, chairman of Citibank (China), said: "Citi is proud to be extending our network to Chongqing with a world-class branch. Looking ahead to 2010, Citi will continue to build out our business in China across a wide array of areas as we continue to play an active role in the ongoing growth and development of China’s financial services sector."

Anand Selva, EVP of Citibank (China), said: "The Chongqing outlet will house the largest retail banking team in China, and its high-technology capabilities will provide Citibank customers with a superior banking experience. Its opening reflects our intent to be the most innovative, customer-focused international bank in China."

Mao Feng, branch manager of Chongqing, said: "Our team in Chongqing is committed to delivering the very best in banking and wealth management services to local companies and retail customers as Chongqing continues to rise as a key center of commerce and industry in China."

ANALYSIS-US Govt's uranium transfers won't stop imports

Release of more U.S. inventories to pressure spot price

* U.S. uranium producers fear will be hurt by transfers

* U.S., biggest uranium consumer, to still rely on imports

By Tom Doggett

WASHINGTON, Dec 11 (Reuters) - The U.S. government's plan to release some of its massive uranium holdings is due to put downward pressure on spot prices, but will do little to reduce reliance on imported supplies by the United States, the world's biggest consumer of the material that fuels its nuclear plants.

U.S. mine supply of uranium has dwindled since peak output was hit in the 1970s when over 250 mines were churning out material, and it now feeds less than 10 percent of demand from the U.S. nuclear industry.

Since the United States accounts for nearly a quarter of the world's 436 operating reactors and consumes about 50 million pounds of uranium a year -- 30 percent of global demand -- it will continue to rely on foreign imports for the bulk of supply for the foreseeable future.

"We will still be importing large quantities from other countries, primarily from Canada, Australia and Kazakhstan," said Julian Steyn, president of Energy Resources International (ERI), a Washington, D.C.-based consulting firm.

Adding to short-term supplies was a move last month by U.S. Energy Secretary Steven Chu to approve the release of additional inventories.

The Department of Energy has a total of 59,000 tonnes of inventories of natural uranium built up for military reasons during the Cold War and is releasing the stocks gradually over about 25 years.

But it agreed to transfer an additional amount, up to 300 tonnes of uranium each quarter through 2010, to help pay for the cleanup of the Portsmouth uranium enrichment plant in Ohio.

UPDATE1-EQT, Singapore fund to buy Springer Media

* Deal allows exit for buyout firms Cinven, Candover

* Company's loans soar in the secondary market

* Springer enterprise value less than 2.4 bln eur -sources (Adds detail, background)

By Victoria Howley and Simon Johnson

LONDON/STOCKHOLM, Dec 11 (Reuters) - Swedish private equity firm EQT and the Singapore government are buying Springer Science and Business Media, allowing an exit for the two UK buyout firms that have owned the debt-laden business since 2003.

EQT, closely linked with Sweden's powerful Wallenberg family and its Investor group, said on Friday it would buy 82 percent of the world's second-largest scientific, technical and medical publisher.

Reuters reported on Wednesday that EQT would scoop up Springer after a long auction.

GIC Special Investments, which is the private equity arm of the Singapore government's investment management company, will buy the remaining 18 percent.

Financial terms were not announced. The deal will value Springer's equity at around 100 million to 150 million euros ($147 million-$221 million), two sources told Reuters this week, giving the business an enterprise value of less than 2.4 billion euros.

Private equity firms Candover and Cinven created Springer through the 600 million euro acquisition of Kluwer Academic Publishers from Wolters Kluwer and the 1 billion euro acquisition of BertelsmannSpringer from Bertelsmann six years ago.

The two firms took advantage of hot debt markets to refinance the business and pay themselves handsome dividends on three occasions.

EQT has lined up a 1 billion pound underwritten loan, demonstrating returning risk appetite at banks that will support the re-opening of the leveraged buyout market.

Xoom.com Launches Money Transfer Service In South Korea

To provide immigrant communities with an alternative money transfer option

Xoom Corporation, an internet-based global money transfer company, has launched new service in South Korea. The launch supports Xoom.com's corporate initiative to provide immigrant communities with an alternative money transfer option.

Xoom.com's money transfer service allows customers to send money from any internet-enabled computer using a credit card or checking account to fund the transaction. The new service augments Xoom.com's existing global presence worldwide, including China, India, Philippines, UK, South Africa, Mexico, Brazil and other countries.

Iain Allison, vice president of Asian business development at Xoom.com, said: "Xoom.com offers Korean immigrants a convenient option for wiring money online. They can send money from their home computer directly to any bank account in South Korea. With Xoom.com, customers pay just $4.99 to send any amount and the funds reach the Korean bank in less than one business day."

Gruppo Bancario Credito Valtellinese Selects Thunderhead

To support communication requirements of its branch network and simplify integration of new acquisitions

Thunderhead, a provider of document automation and multi-channel communications solutions, said that Italy-based bank Gruppo Bancario Credito Valtelinese has selected the Thunderhead NOW platform to support the customer communication requirements of its branch network.

Credito Valtellinese said that on a year-by-year basis it mails approximately 50m pages and 10m envelopes. In the longer term, the bank plans to use Thunderhead NOW to improve and manage the quality of its batch-produced customer communications with personalized content, better visual design and tailored marketing messages.

The solution will also play a key role in supporting the customer communication requirements of new acquisitions by the group. Thunderhead NOW will be offered as an outsourced document-generation service to partner banks that are supported by Gruppo Credito Valtellinese through Bankadati Sistemi informatici, the IT business owned by the group.

Enrico Mazzoletti, director of IT Architecture, said: "We evaluated several solutions and Thunderhead was the only one that fully met our needs, which included ease of integration with our Microsoft .NET-based applications and the ability to change and manage document content without the need for programming."

Mauro Selvetti, CIO of Bankadati, said: "In recent years, we have integrated new acquisitions as well as provided outsourced IT services to our partner banks. This trend is set to continue and Thunderhead NOW will make integration much easier by enabling us to quickly and easily produce and manage documentation, contracts and correspondence for the customers of our seven existing banks and four specialized financial businesses, as well as newly acquired banks in the future."

Glen Manchester, CEO of Thunderhead, said: "We are delighted that Thunderhead NOW will not only enable Credito Valtellinese to enhance its customer communications and marketing but will also support the banking group as it pursues its strategy of growth through acquisition."

EU Urges IMF To Levy Global Tax On Financial Institutions

To prevent another global financial crisis

European Union (EU) has stepped up pressure on IMF to consider a global tax on financial transactions to avoid another economic crisis, reported Reuters citing a draft summit statement. The leaders of the bloc also emphasized the need for 'sound and effective' pay in the financial sector but did not support UK and France to tax bankers' bonuses.

The draft statement said: "Remuneration policies within the financial sector must promote sound and effective risk management and should contribute to preventing future crises in the economy."

"The European Council (of EU leaders) emphasises the importance of renewing the economic and social contract between financial institutions and the society they serve and of ensuring that the public benefits in good times and is protected from risk.

"The European Council encourages the IMF to consider the full range of options including insurance fees, resolution funds, contingent capital arrangements and a global financial transaction levy in its review."

Reportedly, Gordon Brown, prime minister of UK, called for imposing so-called 'Tobin tax' on financial transactions at G20 summit to discourage short-term speculation and channel the proceeds to fund future financial bailouts. However, the idea met with opposition from Timothy Geithner, treasury secretary of US, who said that it would dampen risky bank behaviour, reported the news agency.

YEARS OF DECEIT: US OPENLY ACCEPTS BIN LADEN LONG DEAD

Conservative commentator, former Marine Colonel Bob Pappas has been saying for years that bin Laden died at Tora Bora and that Senator Kerry's claim that bin Laden escaped with Bush help was a lie. Now we know that Pappas was correct. The embarassment of having Secretary of State Clinton talk about bin Laden in Pakistan was horrific. He has been dead since December 13, 2001 and now, finally, everyone, Obama, McChrystal, Cheney, everyone who isn't nuts is finally saying what they have known for years.

However, since we lost a couple of hundred of our top special operations forces hunting for bin Laden after we knew he was dead, is someone going to answer for this with some jail time? Since we spent 200 million dollars on "special ops" looking for someone we knew was dead, who is going to jail for that? Since Bush, Rumsfeld and Cheney continually talked about a man they knew was dead, now known to be for reasons of POLITICAL nature, who is going to jail for that? Why were tapes brought out, now known to be forged, as legitimate intelligence to sway the disputed 2004 election in the US? This is a criminal act if there ever was one.

Darling making a serious mistake over tax, say business leaders

BUSINESS leaders warned that the Chancellor was “making a serious mistake” over tax in his pre-Budget report yesterday.

They voiced concerns over the effect on growth of an increase in National Insurance contributions.

Under the plans in the pre- Budget report, workers will hand over an extra 1% of their pay to the Government from April 2011.

However, business groups voiced their disquiet over such a move, arguing that cuts in public spending should have taken priority over tax rises.

Alistair Darling’s final pre- Budget report before next year’s general election also included a number of measures aimed at targeting top earners.

But he was accused of making populist political decisions instead of meeting the needs of the private sector as it continued to struggle amid a biting recession.

The CBI warned that the UK faced “an exodus of talent” thanks to plans to tax bankers’ bonuses.

Richard Lambert, CBI director-general, said: “The Chancellor has made a serious mistake imposing an extra jobs tax at a time when the economic recovery will still be fragile. Increasing the National Insurance contribution will hold back job creation and growth.

“He has also missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier. We are no clearer as to how the Government plans to reduce public expenditure.

“We applaud the Government’s courage in beginning to tackle the thorny issues of public sector pay and pensions. There is also an encouraging package to support companies as they seek to exploit new low-carbon opportunities.

Life insurance: What are mortality charges?

Quite often you hear your insurance advisor talking about mortality charges in your life insurance. But what is the meaning of mortality charges? How are they computed and as a policy holder does it give any benefit to you? What should you know to save on mortality charges?

What are mortality charges?

Whenever you buy a life insurance policy, the company offering it will levy a charge for the insurance protection upon death and to cover certain other expenses. In a nutshell this is the actual cost of insurance. Technically called mortality charge, this is deducted usually every month from your policy's account value. While the insurance company can tweak these charges from time to time it cannot exceed the maximum limit as specified in the policy.

Health insurance for BPL families in 22 more dists

PATNA: Bihar government on Tuesday signed MoUs with three insurance firms -- ICICI Lombard, Chola Mandalam M S Insurance and Royal Sundaram for giving Rashtriya Swasthya Bima Yojana (RSBY) benefits to below poverty line (BPL) families in 22 districts.With this, 30 of the state's 38 districts are now covered by RSBY. While ICICI Lombard has been given the responsibility of 11 districts, Chola Mandalam M S Insurance and Royal Sundaram have been allotted three and eight districts respectively.

Prior to the Tuesday's MoUs, BPL families of eight districts were provided health insurance cover under the RSBY by Oriental Insurance. The Yojana was launched in the state by chief minister Nitish Kumar on August 20 last year.

The RSBY provides a health insurance cover worth Rs 30,000 each to BPL families for which the premium is paid by the Centre and the state concerned on a 75:25 basis. A smart card, issued to the beneficiary, allows him/her to avail of the cashless hospitalisation facility.

Doubling of rise in National Insurance will affect 20 million people

Middle and higher earners face paying hundreds of pounds more to the taxman because of a rise in national insurance and a freeze in the thresholds at which the basic and higher rates of income tax kick in.

As Labour struggles to fill a huge black hole in government finances, Alistair Darling revealed that from 2011 people would be stung by a one percentage point increase in national insurance. He had previously said that only a 0.5 percentage point rise would be necessary.

Many middle-income earners will also be dragged into the 40 per cent tax net after the Chancellor said he would freeze the higher-rate tax threshold. He also announced that there will be no increase in the personal allowance in April.

The national insurance increase will affect anyone who earns £20,000 or more — up to 20 million people, says PricewaterhouseCoopers. The damage will be offset for lower earners by an increase in the national insurance starting point.

James Dolan, of the accountant Grant Thornton, said: “These changes are set to yield the Treasury around £2.7 billion a year, equivalent to ½p on the basic rate of income tax.”

The standard rate of national insurance for employees will rise from 11 per cent to 12 per cent. Workers will be charged 2 per cent on all earnings above the upper limit.

From 2011, someone earning £30,000 will pay £87 more in national insurance. Those earning £100,000 will pay an extra £786. The rate for employers will also increase to 13.8 per cent, in a move which has been condemned as bad for business.

21% less for life insurance

A little over EUR 276 million is the amount of gross written premiums on life insurance, which represents 17.6% of the insurance market. The nominal evolution in European currency was -21%, which means a reduction in life insurance business, with over EUR 74 million less than the amount recorded in late September last year.

The top 10 companies on the market have underwrote, cumulated, 95% of the volume on life insurance and, excepting the leader ING Asigurari de Viata, none of the companies in TOP 10 life insurance maintained the same position in the hierarchy.

Therefore, ING Asigurari de Viata remains the market leader and, because it has decreased less than the market average, it managed to gain almost 1 percentage point market share.
BCR Asigurari de Viata is the only company that managed to spectacularly increase, amid the negative evolution of the entire market. The company underwrote nearly EUR 40 million and grew by over 22%.

The market share gained by the company increased by 5 percentage points, up to 14.4%.
According to estimates, AIG Life has underwritten EUR 29 million and fell by over 50%, compared to the achievements of the first 9 months of last year. The company lost almost 7 percentage points of market share. It remains to be seen whether the results at the end of year will confirm or not this estimate.

The most spectacular rise, from the point of view of the positions gained in the hierarchy, was that of AVIVA, which recorded a decrease of only 5% of the underwritings, and thus climbed from the 9th place to the 4th place. ASIROM, GENERALI and EUREKO climbed, each, one position in the top. GROUPAMA fell 4 positions, while GRAWE dropped two places, down to the 9th place.

Jobless insurance tax rising

Nebraska employers figured that they might pay higher unemployment insurance taxes next year, but now they're getting the specifics: Rates will more than double for most companies.

Although the increases can vary widely among employers, most rates will increase about 165 percent. The average annual payment per employee will increase to $300 from $113, beginning in April.

The State Labor Department mailed notices this week to 47,000 Nebraska employers with the specific payment rates, from zero to a maximum of $780 per employee. The previous maximum amount was $486.

Even so, said David Brown, president and chief executive of the Greater Omaha Chamber of Commerce, “The timing couldn't have been worse to have this kind of an increase. This is really a burden on all businesses and particularly small businesses. They're already trying to figure out how to maintain cash flow.”

Brown said the Legislature could change the way the tax rate is determined, so it could be adjusted to allow for unusual economic conditions. But it's too late to halt the 2010 increases.

The stiff increase revives a debate about whether the state should have gone after $43.6 million in federal stimulus funds designed to soften the recession's impact on state unemployment insurance trust funds.

This is the fifth year that Nebraska has determined the rates under a 2005 state law that sets a mathematical formula to keep the employer-funded unemployment insurance trust fund solvent.

Between Oct. 1, 2008, and Sept. 30, 2009, the trust fund paid out $189 million in unemployment benefits, more than double the $90 million paid out in the previous fiscal year. To replenish the fund, the formula raised the rates that employers will pay in 2010.

Senate Defeats Antiabortion Amendment To Health Reform Bill

The Senate on Tuesday voted 54-45 to table an amendment to its health reform bill that would prohibit coverage of abortion services in any health plan insuring people who receive federal subsidies, though the action "is unlikely to be the final word on how the issue is dealt with in the health bill," the New York Times reports. The amendment, offered by Sens. Ben Nelson (D-Neb.) and Orrin Hatch (R-Utah), was virtually identical to an amendment adopted in the House health reform bill (HR 3962) that was introduced by Rep. Bart Stupak (D-Mich.). The amendment stated that no federal money could be "used to pay for any abortion or to cover any part of the costs of any health plan that includes coverage of abortion," except in cases of rape, incest or to save the life of the woman. Women could use their own money to buy "separate supplemental coverage for abortion." The current language in the Senate bill would allow federally subsidized insurance plans to cover abortion services but would require plans to segregate federal funds from private money that would pay for the services (Pear/Herszenhorn, New York Times, 12/9). During a floor speech before the vote on Nelson's amendment, Senate Majority Leader Harry Reid (D-Nev.) said the bill's current language represents "a fair middle ground" on the issue (Murray/Montgomery, Washington Post, 12/9). Reid, an abortion-rights opponent who voted against Nelson's amendment, said that the "reason I oppose abortion and the reason I support this historic bill are the same: I respect the sanctity of life" (Hook/Levey, Los Angeles Times, 12/9). He added that the health reform bill is "not an abortion bill" and that the Senate "can't afford to miss the big picture," noting that "[n]either this amendment nor any other should overshadow the entire bill or overwhelm the entire process. ... I will not support efforts to undermine this historic legislation"

Forex: USD/JPY edges up past 88.40, hits session high

FXstreet.com (Barcelona) - The Dollar weakened during late Asian session to find support at 87.75 day low ahead of the European session opening, and the pair has rallied during European trade to reach levels past 88.40 to hit a fresh day high at 88.45.

On a larger perspective, the pair is shaping a triangle formation, which, according to Ian Coleman, technical analyst at Turtle Index, is likely to be broken to the upside: "The only negative view is the fact that I struggle to count the move down in three waves. We are, however, making a triangle formation and I would expect a break to the upside. 9054 would be the first target then 91.26 and 93.00."

At the moment, the Dollar is struggling at 88.40 area, and in case of further appreciation, the pair could find resistance at 88.70 (Dec 9 high) and 89.05/20. On the downside, support levels lie at 87.70 (session low) and below here 87.35 (Dec 9 low) and 87.00/20.

France In Favor Of Matching UK Bank Bonus Tax - Government Official

France In Favor Of Matching UK Bank Bonus Tax - Government Official

PARIS -(Dow Jones)- France is in favor of matching a tax on bank bonuses that will be applied in the U.K and is likely to slap such a levy on bonuses to be paid out in 2010 for the past year, a senior French government official told Dow Jones Newswires Thursday.

The U.K.'s decision to tax bank bonuses could make a similar move easier in France as it removes concern about the competitiveness of Paris as a financial market place, the official added.

"We are in favor of such a tax as the French president has outlined in the Wall Street Journal. In so far as this will be applied in the U.K., this removes one of the main competition hurdles for Paris," the official said.

In a co-authored article published in Thursday's Wall Street Journal, French President Nicholas Sarkozy and Prime Minister Gordon Brown said a one-off tax on bank bonuses should be considered a priority.

The U.K's initiative was outlined Wednesday in the government's latest budget plan and will consist of a 50% tax on some bonuses to be paid by banks to employees.

-By Nathalie Boschat, Dow Jones Newswires; + 33 (0) 1 40 17 17 40; nathalie.boschat@dowjones.com

Forex: EUR/GBP reacts up after BoE holds rates unchanged

FXstreet.com (Barcelona) – The Euro is rising right now against the Sterling in the minutes following the BoE decision to maintain unchanged its interest rate and its asses purchase program. The EUR/GBP has risen from intra-day low at 0.9020 to test MA55 hourly chart at 0.9050.

EUR/GBP is trading around 0.9040/50, 0.30% below opening price action at 0.9055.

The Bank of England has decided to leave its official bank rate unchanged at 0.5% as well as to maintain its bond buying program at GBP200 billion. Bank affirms in its statement: “The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.”

Forex: GBP/USD holds above 1.6300 after the unchanged BoE rate policy

FXstreet.com (Barcelona) – After falling from intra-day high at 1.6345 before the BoE interest rate decision, the GBP/USD is trading just above 1.6300 level after the bank voted today to maintain rates and asset purchases program unchanged. Currently the pair is trading around 1.6305/15, 0.35% above today's opening price action at 1.6260.

The Bank of England has decided to leave its official bank rate unchanged at 0.5% as well as to maintain its bond buying program at GBP200 billion. Bank affirms in its statement: “The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.”

EURO BONDS-Friesland RMBS, BBVA, Aegon, Stagecoach, Intesa

LONDON, Dec 10 (Reuters) - News, details on corporate bond issues in the European markets on Thursday:

FRIESLAND BANK FRIBK.UL

Issue: The Dutch bank plans an 800 million euro ($1.18 billion) bond backed by prime Dutch residential mortgages, according to Royal Bank of Scotland, which is managing the deal.

The sale of residential mortgage-backed securitisation (RMBS) will include one tranche of 560 million euros, rated triple-A. The rest will be retained.

The RMBS deal will be issued via the Eleven Cities vehicle.

BBVA SENIOR FINANCE (BBVA.)

Issue: The Spanish bank plans a senior unsecured two-year euro benchmark floating-rate note, an official at one of the banks managing the sale said. Pricing is expected later on Thursday

Markets flat on mixed global cues

The key benchmark indices were flat in the early trades amid mixed trends in world markets. The Sensex was down 38 points at 17,087 levels and the Nifty shed 0.2 per cent to 5,099.

Realty, oil & gas and banking stocks were under some selling pressure.

Among the Sensex stocks, Maruti was the top gainer. The stock rose 0.7 per cent in early trades.
Hindalco, ACC and Tata Steel were the other main gainers in the group.
Grasim Ind, however, was the biggest loser in the pack. The stock shed 1 per cent.

In US markets, investors set aside some of their concerns about rising debt levels around the world and looked for bargains after a two-day slide in stocks.

Stocks turned higher after trading erratically, and the Dow Jones industrials closed up 51 points at 10,337.05.

The broader S&P 500 index rose 4.01, or 0.4 percent, to 1,095.95, its first gain of the week. The Nasdaq composite index rose 10.74, or 0.5 percent, to 2,183.73.

Asian markets, however, were trading mostly lower today. Japan’s Nikkei lost 1.4 per cent and Hong Kong’s Hang Seng slipped 0.7 per cent.

Bank leaves QE, rates unchanged

LONDON (Reuters) - The Bank of England left its asset purchase programme intact at 200 billion pounds and held interest rates at 0.5 percent on Thursday, as widely expected.

Policymakers have indicated they are likely to stay on hold until at least February when they will get their new growth and inflation forecasts and the scheduled asset purchases run out.

The Bank launched its quantitative easing progressing -- mainly asset-buying of government bonds -- in March in an unprecedented attempt to boost an economy ravaged by a global credit crunch.

The economy is now showing signs of picking up again, house prices are rising and forward-looking surveys point to an ongoing recovery in activity, suggesting Britain will pull out of recession by the end of the year.

Most analysts, therefore, expect no further expansion of the QE programme -- which was expanded by 25 billion pounds last month -- and say it could be a while before policymakers feel confident enough about growth to start raising interest rates.

Red Hat Makes Virtualization Protocol Open Source

Red Hat released to the open source community its SPICE protocol for virtual desktops.

SPICE, or Simple Protocol for Independent Computing Environment, is a core component in the Linux distributor's Enterprise Virtualization for Desktops product, which is currently in beta and is scheduled for general availability next year. Red Hat took possession of SPICE in the September 2008 acquisition of Qumranet.

The technology is designed for desktops that use remote servers for data processing. SPICE improves the user experience when rendering bandwidth-intensive applications, such as video or voice over IP.

"The SPICE protocol is designed to optimize performance by automatically adapting to the graphics and communications environment that it is running in, so vendors have a terrific opportunity to enhance it for their specific applications," Brian Stevens, chief technology officer at Red Hat, said released Wednesday.

As a Linux distributor, Red Hat's release of technology to the open source community is not unusual, given its close collaboration with the group on product development. In fact, the company in October with the U.S. Supreme Court, asking it to uphold a lower court's ruling that software isn't patentable.

Last month, Red Hatthe virtualization management field with the introduction of Enterprise Virtualization Manager for Servers. The centralized management system is aimed at IT shops virtualizing servers based on the KVM hypervisor built into Linux.

UK still faces rating risk - Osborne

LONDON (Reuters) - Britain is still in danger of losing its triple-A credit rating and the Conservatives would make protecting it a priority if elected next year, Shadow Chancellor George Osborne said.

In an interview with Reuters on Thursday, Osborne also said most of the Conservatives' deficit reduction measures would come from spending restraint.

Chancellor Alistair Darling announced tax rises and a levy on bank bonuses to help plug the government's gaping deficit, but there was little in the way of spending cuts, raising concerns about the near-term debt outlook.

Asked if Wednesday's pre-budget report measures were enough to soothe fears that Britain might lose its triple-A credit rating, Osborne said: "No, I don't think they aI don't think it is a credible plan. Unfortunately, the measures announced yesterday don't start tackling the deficit until 2014/15 and that is far too late. "The thing I'm aiming for is making sure that Britain keeps its credit rating."

Ratings agencies said the outlook for Britain's sovereign debt had not been materially changed by the PBR and they are waiting to see what measures a future government will take after next year's election, which the Labour party is expected to lose.

The Conservatives have said they will hold an emergency budget within 50 days of an election if they win. Their focus will be on spending cuts.

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ICICI, Kotak Mahindra cut home loan rates

The largest private sector bank has joined the interest rate war in home loans, with a product that mimics arch rival HDFC’s special offer.

On Tuesday, Kotak Mahindra Bank has also announced a special home loan product for salaried customers starting from 7.99 per cent.

ICICI Bank’s new loan comes at a fixed rate of 8.25 per cent for the first two years, after which it reverts back to a floating rate. The offer reduced interest rates by 50-100 basis points for the first two years from the present applicable rates.
A senior ICICI Bank official told Financial Chronicle the cost of funds have been coming down for the bank, and this rate reduction in home loans was warranted. “When cost of funds comes down, banks rework rates. At ICICI Bank, we are constantly reviewing our rates and passing on benefits to the customers,” said the official.

The rate war in home loans was sparked off by the State Bank of India (SBI), which offered a loan with a fixed rate of interest of 8 per cent for the first year in February.

After more than a year of curtailing growth of its balance sheet, ICICI Bank now is seeking for a phase of well–rounded growth but with a lot of caution, where retail products such as home and car loans would be important growth drivers.

New CRL Report: Credit Card Issuers Use Loopholes to Bypass New Rules Intended to Curb Abuses

DURHAM, N.C., Dec. 10 /PRNewswire-USNewswire/ -- Credit card companies are busy crafting new tricks and traps to bypass both Federal Reserve Board rules and new federal law set to take full effect in late February 2010, a new research report from the Center for Responsible Lending finds. Entitled "Dodging Reform: As Some Credit Card Abuses Are Outlawed, New Ones Proliferate," the report explains why the nation's 80 million families with one or more credit cards continue to be hit with arbitrary, unfair interest rate hikes and fees.

The study examined the practices of issuers that hold over 400 million credit card accounts and found at least eight specific industry practices that flourish despite federal efforts to rein issuers in. These practices make it all but impossible for the average person to determine the real cost of credit card debt. The ability and eagerness of credit card issuers to exploit loopholes in the new federal rules underscores why lawmakers need to pass legislation to create the Consumer Financial Protection Agency, as proposed by the White House and now under consideration by Congress.

The eight practices highlighted in the report include the manipulation of interest rates, the padding of miscellaneous fees and a deceptive policy on late-payment fees. Use of these abusive tactics is widespread and growing, the report finds.