Here’s what’s important in the financial world this morning: This week, markets will look to extend their gains to date. On Wednesday, the Federal Reserve will release policy news and throughout the week look for a barrage of corporate earnings reports. News from Europe could affect this week’s market on news from Greece’s debt-swap talks and Monday’s European Union finance ministers meeting. They will talk about the recent fiscal-pact draft, according to MarketWatch. Over in the Asian markets, many markets will be closed for holidays but there will be news from Japan and Thailand’s central banks. Markets in Hong Kong, Shanghai and Shenzhen will be closed from Monday through Wednesday; the Taipei market will be closed on Thursday. South Korea’s market will be shut down on Monday and Tuesday. Australian markets are closed on Thursday. On Tuesday, the Reserve Bank of India will make its policy announcement. In December, it did not have any interest rate hikes and suggested it was done with doing so and was ready to focus on growth. The Bank of Japan will also announce its policy news on Tuesday. On the following day, look for news nuggets of the bank’s moves in its policy statement. The Bank of Thailand will report its policy move on Wednesday. Back in the U.S. get ready for earnings. Lots of earnings. Chevy Volt is “safe”:  U.S. regulators ended an investigation into why Chevrolet Volt electric cars caught fire, and said electric  vehicles  do not pose a greater risk of fire, according to Bloomberg. The conclusion by the U.S. National Highway Traffic Safety Administration came two weeks after General Motors Co. told owners to bring the vehicles to dealerships for repair. “Based on the available  data , NHTSA does not believe that Chevy Volts or other electric vehicles pose a greater risk of fire than gasoline-powered vehicles,” the agency said in an e- mailed statement today. EU vs Iran:  The European Union formally adopted an oil embargo against Iran on Monday and froze the assets of Iran’s central bank, part of sanctions to pressure Tehran into resuming talks on its controversial nuclear program. Two Iranian lawmakers, stepped up threats that their country would shutter the strategic Strait of Hormuz, through which a fifth of the world’s crude flows, in retaliation for the EU oil sanctions on Tehran. Lawmaker Mohammad Ismail Kowsari, deputy head of Iran’s influential committee on national security, said Monday the strait “would definitely be closed if the sale of Iranian oil is violated in any way.” Tensions over the strait and the potential impact its closure would have on global oil supplies and the price of crude have weighed heavily on consumers and traders. Both the U.S. and Britain have warned Iran not to disrupt the world’s oil supply. Many analysts doubt that Iran could set up a blockade for long, but any supply shortages would cause world oil supplies to tighten temporarily. For its part, the United States has enacted, but not yet put into force, sanctions targeting Iran’s central bank and, by extension, the country’s ability to be paid for its oil. Economic Numbers and Fed Speak Monday:  Eurogroup meeting of eurozone finance ministers. Tuesday:  Ecofin meeting of EU finance ministers, Day One of FOMC meeting, and President Obama’s State of the Union address. Wednesday:  Pending Home Sales index for December,FOMC policy announcement and Ben Bernanke Press Conference. Thursday:  Durable Goods orders for December, Weekly jobless claims, December new home sales and leading indicators. Friday:  Fourth-quarter GDP report and University of Michigan consumer sentiment for January. [ Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet. ] The Associated Press contributed to this story.

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Morning Market Roundup: EU Adopts Iran Embargo, Volt Investigation Closed

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Reuters – The gun industry on Monday appealed a U.S. judge’s decision to uphold new Obama administration regulations requiring gun dealers in four states bordering Mexico to report the sales of multiple semi-automatic rifles.

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U.S. gun industry appeals new rifle reporting rules
(Reuters)

Reuters – A U.S. judge on Friday, in a victory for the Obama administration, upheld new federal rules requiring gun dealers in four states bordering Mexico to report the sales of multiple semi-automatic rifles, despite a challenge by the gun industry.

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U.S. judge backs ATF multiple rifle sales reporting
(Reuters)

GM to Call Back Chevy Volts

On January 6, 2012, in Uncategorized, by MarkBeestler

**Written by Doug Powers Maybe it’s not as bad as it sounds. Technically a “call back” is a notch below a recall, and it only affects 8,000 vehicles — which is a mere, um, 100% of all Volts sold in 2011. Lucky sales didn’t catch fire or the fixes would have been a more massive undertaking : General Motors plans to ask Volt owners to bring their electric cars into dealers to strengthen the structure around the batteries. The automaker said Thursday it plans enhancements to the vehicle’s structure and battery coolant system to further protect the battery from the possibility of an electrical fire occurring days or weeks after a severe crash. The enhancements come in response to a National Highway Traffic Safety Administration Preliminary Evaluation to examine post-severe crash battery performance. Has there ever been a year where an automobile has been named Motor Trend’s Car of the Year and also a Flop of the Year ? They should have called it the Paradox . You certainly can’t argue with the value though — it isn’t often you can buy a $250,000 car for just $41,000. In other Volt news, in spite of there being only 8,000 Volts sold in 2011 (1,529 in December alone, meaning either sales picked up or Al Gore used them as Christmas stocking stuffers), Michigan Rep. John Dingell thinks they’re flying off the lots : Following Republican presidential hopeful Mitt Romney’s claim that the Chevrolet Volt is an “idea whose time has not come,” Dingell apparently issued a press release that said, in part: Romney is the only fellow in the United States who appears to think that the Volt is an idea whose time has not come. Clearly it has not come to him. The Volt is selling like hotcakes . For a car being called back to repair a possible fire hazard, “hot cakes” probably isn’t the best choice of metaphor, and it certainly isn’t the most accurate one. **Written by Doug Powers Twitter @ThePowersThatBe

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GM to Call Back Chevy Volts

Markets closed up on Wall Street today:  Dow  +1.10 percent S&P +1.06 percent Nasdaq  +0.92 percent Oil  +0.29 percent Gold  -1.05 percent On the commodities front:  Oil  ( NYSE:USO ) climbed to $99.65 a barrel Gold  ( NYSE:GLD ) falling to $1,547.60 Silver  ( NYSE:SLV ) climbed 1.78 percent to settle at $27.72 (Related:  Oil Prices Could Stay Above $100 a Barrel Through 2012 ) Today’s markets were up because: 1) Housing:  The number of Americans signing contracts to buy homes rose in November to an 18-month high, offering yet another sign of a tentative recovery in the  housing market . The National Association of Realtors’ Pending Home Sales Index, which is based on contracts signed in November, increased 7.3 percent to 100.1 — the highest level since April 2010. A reading of 100 is considered healthy. The report boosted shares of homebuilders, including Pulte, DR Horton, Masco, Lennar, and NVR Inc. 2) Employment:  New jobless claims  rose more than expected last week. The U.S. Labor Department’s weekly report on initial unemployment benefits applications showed claims to have risen by 15,000 to a seasonally adjusted 381,000 in the week ended December 24. However, the four-week moving average, considered to be a better measure of overall trends, fell 5,750 to 375,000, its lowest level since June 2008. Furthermore, the weekly initial claims figure remains below the 400,000 mark that is normally associated with an improvement in labor market conditions. 2) Italy:  The European sovereign debt crisis has remained a focal point in the eyes of investors throughout the year, and market trends have been strongly linked to progress, or lack thereof, made toward effecting a solution to the debt crisis. So when Italy, the euro zone’s third-biggest economy, saw  yields on long-term bonds  decline today, one day after yields on short-term bonds were halved, it gave investors hope that Italy will survive the crisis. However, the Italian bond market was buoyed by the European Central Bank’s new three-year liquidity measures. The ECB last week loaned European banks 489 billion euros in a bid to keep credit flowing to the euro economy, of which Italian lenders borrowed 116 billion euros. After today’s auction, the yield on the benchmark 10-year note climbed 12 basis points to 7.12 percent. [ Editor’s note: the above is a cross post that originally appeared on  Wall St. Cheat Sheet .]

NBC’s Washington affiliate caught President Barack Obama ‘s Christmas shopping trip Wednesday on video. As Hot Air notes , the best part of the venture is when Obama goes to checkout at Best Buy and wonders (jokingly) if his method of payment will be good. “I do have a credit card and I’ve got cash, too,” Obama tells the sales associate. “Let’s see if my credit card still works. It’ll be really embarrassing if it doesn’t go through.” There’s also some footage of him at the restaurant where he ordered his $60 pizzas after shopping. Watch:

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Obama worries his credit card won‘t ’go through’

**Written by Doug Powers The Audi president called the Chevy Volt a “car for idiots,” but because the average Volt owner earns $170,000 a year and the average American couldn’t afford to buy it if they wanted to, it sounds more like the taxpayers are the ones who have been played for fools : Each Chevy Volt sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether, according to an analysis by James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy. Hohman looked at total state and federal assistance offered for the development and production of the Chevy Volt, General Motors’ plug-in hybrid electric vehicle. His analysis included 18 government deals that included loans, rebates, grants and tax credits. The amount of government assistance does not include the fact that General Motors is currently 26 percent owned by the federal government. The Volt subsidies flow through multiple companies involed in production. The analysis includes adding up the amount of government subsidies via tax credits and direct funding for not only General Motors, but other companies supplying parts for the vehicle. For example, the Department of Energy awarded a $105.9 million grant to the GM Brownstown plant that assembles the batteries. The company was also awarded approximately $106 million for its Hamtramck assembly plant in state credits to retain jobs. The company that supplies the Volt’s batteries, Compact Power, was awarded up to $100 million in refundable battery credits (combination tax breaks and cash subsidies). These are among many of the subsidies and tax credits for the vehicle. The $3 billion total subsidy figure includes $690.4 million offered by the state of Michigan and $2.3 billion in federal money. That’s enough to purchase 75,222 Volts with a sticker price of $39,828. Any Volt story that references the Trabant for reasons of comparison is worth a read. In many cases not only are taxpayers subsidizing the Volt’s manufacturing and incentives, but also its outright purchase for use in the public-sector fleet. The government purchases a little padding for the sales numbers: (h/t Drudge ) **Written by Doug Powers Twitter @ThePowersThatBe

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Analysis: Chevy Volt Costing Taxpayers $250,000 Per Vehicle

The Chevy Volt Catches Fire

On December 7, 2011, in Uncategorized, by NatK

And not on the sales charts.

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The Chevy Volt Catches Fire

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Officers gather evidence, including a bloody shirt, at the scene of a shooting at Walmart in San Leandro, California (AP)

NEW YORK (AP) — Pepper-sprayed customers, smash-and-grab looters and bloody scenes in the shopping aisles. How did Black Friday devolve into this? As reports of shopping-related violence rolled in this week from Los Angeles to New York, experts say a volatile mix of desperate retailers and cutthroat marketing has hyped the traditional post-Thanksgiving sales to increasingly frenzied levels. With stores opening earlier, bargain-obsessed shoppers often are sleep-deprived and short-tempered. Arriving in darkness, they also find themselves vulnerable to savvy parking-lot muggers. Add in the online-coupon phenomenon, which feeds the psychological hunger for finding impossible bargains, and you’ve got a recipe for trouble, said Theresa Williams, a marketing professor at Indiana University. “These are people who should know better and have enough stuff already,” Williams said. “What’s going to be next year, everybody getting Tasered?”

AP

Across the country on Thursday and Friday, there were signs that tensions had ratcheted up a notch or two, with violence resulting in several instances. A woman turned herself in to police after allegedly pepper-spraying 20 other customers at a Los Angeles-area Walmart on Thursday in what investigators said was an attempt to get at a crate of Xbox video game consoles. In Kinston, N.C. a security guard also pepper-sprayed customers seeking electronics before the start of a midnight sale. In New York, crowds reportedly looted a clothing store in Soho. At a Walmart near Phoenix, a man was bloodied while being subdued by police officer on suspicion of shoplifting a video game. There was a shooting outside a store in San Leandro, Calif., shots fired at a mall in Fayetteville, N.C. and a stabbing outside a store in Sacramento, N.Y. “The difference this year is that instead of a nice sweater you need a bullet proof vest and goggles,” said Betty Thomas, 52, who was shopping Saturday with her sisters and a niece at Crabtree Valley Mall in Raleigh, N.C. The wave of violence revived memories of the 2008 Black Friday stampede that killed an employee and put a pregnant woman in the hospital at a Walmart on New York’s Long Island. Walmart spokesman Greg Rossiter said Black Friday 2011 was safe at most of its nearly 4,000 U.S. stores despite “a few unfortunate incidents.” Black Friday — named that because it puts retailers “in the black” — has become more intense as companies compete for customers in a weak economy, said Jacob Jacoby, an expert on consumer behavior at New York University. The idea of luring in customers with a few “doorbuster” deals has long been a staple of the post-Thanksgiving sales. But now stores are opening earlier, and those deals are getting more extreme, he said. “There’s an awful lot of psychology going on here,” Jacoby said. “There’s the notion of scarcity — when something’s scarce it’s more valued. And a resource that can be very scarce is time: If you don’t get there in time, it’s going to be gone.” There’s also a new factor, Williams said: the rise of coupon websites like Groupon and LivingSocial, the online equivalents of doorbusters, which usually deliver a single, one-day offer with savings of up to 80 percent on museum tickets, photo portraits, yoga classes and the like. The services encourage impulse buying and an obsession with bargains, Williams said, while also getting businesses hooked on quick infusions of customers. “The whole notion of getting a deal, that’s all we’ve seen for the last two years,” Williams said. “It’s about stimulating consumers’ quick reactions. How do we get their attention quickly? How do we create cash flow for today?” To grab customers first, some stores are opening late on Thanksgiving Day, turning bargain-hunting from an early-morning activity into an all-night slog, said Ed Fox, a marketing professor at Southern Methodist University in Dallas. Midnight shopping puts everyone on edge and also makes shoppers targets for muggers, he said. In fact, robbery appeared to be the motive behind the shooting in San Leandro, about 15 miles east of San Francisco. Police said robbers shot a victim as he was walking to a car with his purchases around 1:45 a.m. on Friday. “There are so many hours now where people are shopping in the darkness that it provides cover for people who are going to try to steal or rob those who are out in numbers,” Fox said. The violence has prompted some analysts to wonder if the sales are worth it, and what solutions might work. In a New York Times column this week, economist Robert Frank proposed slapping a 6 percent sales tax on purchases between 6 p.m. on Thanksgiving and 6 a.m. on Friday in an attempt to stop the “arms race” of earlier and earlier sales. Small retailers, meanwhile, are pushing so-called Small Business Saturday to woo customers who are turned off by the Black Friday crush. President Barack Obama even joined in, going book shopping on Saturday at a small bookstore a few blocks from the White House. “A lot of retailers, independent retailers, are making the conscious decision to not work those crazy hours,” said Patricia Norins, a retail consultant for American Express. Next up is Cyber Monday, when online retailers put their wares on sale. But on Saturday many shoppers said they still prefer buying at the big stores, despite the frenzy. Thomas said she likes the time with her sisters and the hustle of the mall too much to stay home and just shop online. To her, the more pressing problem was that the Thanksgiving weekend sales didn’t seem very good. “If I’m going to get shot, at least let me get a good deal,” Thomas said. ___ Associated Press Writers Julie Walker in New York, Christina Rexrode in Raleigh, N.C., John C. Rogers in Los Angeles and Terry Tang in Phoenix contributed to this report .

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AP: ‘How Did Black Friday Devolve Into This?’

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Thanksgiving Day Gets the Jump On Black Friday

On November 22, 2011, in Uncategorized, by KavinHildring485

At Los Angeles Times , ” Black Thursday is replacing Black Friday as more stores open on Thanksgiving “: Black Thursday is becoming the new Black Friday. Wal-Mart Stores Inc., the nation’s largest retailer, will for the first time launch its holiday sale kickoff at 10 p.m. Thanksgiving Day, joining Toys R Us Inc., Kmart and other chains that have already thrown their doors open while holiday turkeys are still warm. Other big retailers — including Target Corp., Best Buy Co., Macy’s Inc. and Kohl’s Corp. — have decided for the first time to open at midnight. Chain stores have been advancing their opening times for several years, but analysts say it has reached a tipping point this season, with Thursday night poised to upend Friday morning as the official holiday kickoff. “It’s no longer Black Friday, it’s going to be Black Thanksgiving from here on out,” said Marshal Cohen, chief industry analyst at the NPD Group. “Retailers recognize the importance of being convenient, and one of those conveniences is opening earlier so people don’t have to wait in line at 4 in the morning in the cold.” The trend in part reflects the tougher environment for brick-and-mortar retailers, who face increased competition from Internet sales that run on a 24-7 basis. The late-night shopping hours also appeal to coveted younger customers, many of whom prefer to do a midnight shopping run Thanksgiving Day instead of having to leave their warm beds before dawn the day after. “Young adults are the ones who really come out in force on Thanksgiving Day,” said Kathy Grannis, a spokeswoman for the National Retail Federation. “They may have three hours free after dinner, and they want to get some shopping done and be home by midnight.” The earlier hours are a big help to Jacob Nieto, a 35-year-old stylist who scours the circulars on Thanksgiving to plan his shopping strategy. The Koreatown resident, who saved more than $1,000 last year on Black Friday, said waking up before dawn to shop is “just torture.” PREVIOUSLY : ” Shoppers Angry as Black Friday Sales Push Into Thanksgiving .”

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Thanksgiving Day Gets the Jump On Black Friday