* El Paso Corp Chief Executive Douglas Foshee does
not plan to stay at Kinder Morgan Inc after the pipeline
company acquires his employer, a Wall Street Journal report
said.* Mattel Inc , the world’s largest toy company, is in
talks to buy Hit Entertainment, the British owner of Thomas the
Tank Engine, for a little over 500 million pounds ($788.9
million), the Wall Street Journal said, citing people familiar
with the matter.* U.S. officials and big banks are working on a plan that
would make refinancing available to some borrowers whose houses
are worth less than their loans, so long as they are current on
mortgage payments, the Wall Street Journal reported.* The Irish government has spoken to Abu Dhabi’s Etihad
Airways and International Airlines Group (IAG) about
the possibility of buying the state’s 25 percent stake in Aer
Lingus , state broadcaster RTE reported on Monday.* Bank of America Corp is selling its 49 percent
stake in 4 World Financial Center in Manhattan to Brookfield
Office Properties Inc., Bloomberg News reported, citing a person
with knowledge of the situation.
“A 30-stock index is not necessarily ideal as a benchmark
for asset managers but it does lend itself well to investible
products such as ETFs, for which there is a lot of demand from
mutual funds and other investors,” said John Prestbo, editor and
executive director of Dow Jones Indexes. “We see the index as a
shorthand expression of the regional market.”Seven of the component stocks on the Asia Dow are based in
Japan, the most of any nation in the index followed by
Australia, China and Hong Kong with four each.Toyota Motor Corp , and the Hong Kong listings of
Industrial & Commercial Bank of China Ltd and HSBC
Holdings Plc are some of the large Asian blue-chips
included in the Asian index.The Asia Dow takes a slightly different approach from others
in that Japan and Australia are also included in a Pan-Asian
index.Traditionally, the regional investment landscape has been
split into Japan and Asia excluding Japan, partly because of the
developed nature and larger size and depth of the Japanese
equity market compared with the rest of Asia.”We are sensitive to Japan’s size, but I think there is a
countervailing trend here of looking at the region as a single
equity market which would include Japan,” said Prestbo.Southeast Asia also finds representation in the Asia Dow
with one company each from Indonesia, Malaysia and Singapore,
namely Astra International , CIMB Group Holdings Bhd
and Jardine Matheson Holdings Ltd .
That’s the word going out - politely - on the Web to rally street protests on Saturday around the globe from New Zealand to Alaska via London, Frankfurt, Washington and, of course, New York, where the past month’s Occupy Wall Street movement has inspired a worldwide yell of anger at banks and financiers.How many will show up, let alone stay to camp out to disrupt city centers for days, or months, to come, is anyone’s guess. The hundreds at Manhattan’s Zuccotti Park were calling for back-up on Friday, fearing imminent eviction. Rome expects tens of thousands at a national protest of more traditional stamp.Few other police forces expect more than a few thousand to turn out on the day for what is billed as an exercise in social media-spread, Arab Spring-inspired, grassroots democracy with an emphasis on peaceful, homespun debate, as seen among Madrid’s “indignados” in June or at the current Wall Street park sit-in.Blogs and Facebook pages devoted to “October 15” - #O15 on Twitter - abound with exhortations to keep the peace, bring an open mind, a sleeping bag, food and warm clothing; in Britain, “Occupy London Stock Exchange” is at pains to stress it does not plan to actually, well, occupy the stock exchange.That may turn off those with a taste for the kind of anarchic violence seen in London in August, at anti-capitalism protests of the past decade and at some rallies against spending cuts in Europe this year. But, as Karlin Younger of consultancy Control Risks said: “When there’s a protest by an organization that’s very grassroots, you can’t be sure who will show up.”Concrete demands are few from those who proclaim “We are the 99 percent,” other than a general sense that the other 1 percent - the “greedy and corrupt” rich, and especially banks - should pay more, and that elected governments are not listening.”It’s time for us to unite; it’s time for them to listen; people of the world, rise up!” proclaims the Web site United for #GlobalChange. “We are not goods in the hands of politicians and bankers who do not represent us … We will peacefully demonstrate, talk and organize until we make it happen.”By doing so peacefully, many hope for a wider political impact, by amplifying the chord their ideas strike with millions of voters in wealthy countries who feel ever more squeezed by the global financial crisis while the rich seem to get richer.”ENOUGH IS ENOUGH”“We have people from all walks of life joining us every day,” said Spyro, one of those behind a Facebook page in London which has grown to have some 12,000 followers in a few weeks, enthused by Occupy Wall Street. Some 5,000 have posted that they will turn out, though even some activists expect fewer will.Spyro, a 28-year-old graduate who has a well-paid job and did not want his family name published, summed up the main target of the global protests as “the financial system.”Angry at taxpayer bailouts of banks since crisis hit in 2008 and at big bonuses still paid to some who work in them while unemployment blights the lives of many young Britons, he said: “People all over the world, we are saying ‘Enough is enough’.”What the remedy would be, Spyro said, was not for him to say but should emerge from public debate - a common theme for those camping out off Wall Street since mid-September, who have stirred up U.S. political debate and, a Reuters poll found, won sympathy from over a third of Americans.A suggestions log posted at 15october.net (“This space is ready for YOUR idea for the revolution”) range from a mass cutting up of credit cards (“hit the banks where it counts”) to “use technology to make education free.”For all such utopianism, the possibility that peaceful mass action, helped by new technologies, can bring real change has been reinforced by the success of Arab uprisings this year.”I’ve been waiting for this protest for a long time, since 2008,” said Daniel Schreiber, 28, an editor in Berlin. “I was always wondering why people aren’t outraged and why nothing has happened and finally, three years later, it’s happening.”Quite what is happening, though, is hard to say. The biggest turnouts are expected where local conditions are most acute.Italian police are preparing for tens of thousands to march in Rome against austerity measures planned by the beleaguered government of Prime Minister Silvio Berlusconi.Yet in crisis-ravaged Athens, where big protests have seen violence at times of late, a sense of fatigue and futility may limit numbers on Saturday. In Madrid, where thousands of young “indignados,” or “angry ones,” camped out for weeks, many also feel the movement has run out of steam since the summer.Germans, where sympathy for southern Europe’s debt troubles is patchy, the financial center of Frankfurt, and the European Central Bank in particular, is expected to be a focus of marches calling by the Spanish-inspired Real Democracy Now movement.Complicating German sentiments, however, a series of small bombs found on trains has stirred memories of the left-wing guerrilla attacks that grew in the 1970s from frustration at a lack of change after the student protests of 1968.CITY OF LONDONBritish student protests a year ago were marked by some acts of violence by what authorities say were hard-core anarchists. Days of looting in London in August were put down to motives that mingled political discontent with criminal opportunism.As an international center of finance, the City of London is key target. But organizers know strong police powers make setting up a Wall Street-style protest camp there far from easy.”There’s quite a bit of fatigue setting in,” said one young veteran of last year’s protests against higher university fees. “But if it’s still going by Monday or Tuesday, I think that will excite students and they will head down. The City is much more the focus of people’s anger now, compared to a year ago.”A long Saturday of rallies may start in New Zealand, where the Occupy Auckland Facebook page provides links recommending “suitable clothing … a sleeping bag, a tent, food” — but, in a family-friendly spirit, strictly no drugs or alcohol.Asian authorities and businesses may have less to fear, since most of their economies are still growing strongly.Tracking across the time zones, through towns large and small (“Occupy Norwich!” reads a website from the picturesque English city), the New York example has also prompted calls for similar occupations in dozens of U.S. cities from Saturday.In Houston, protesters plan to tap into anger at big oil companies. As the world’s day ends, hardy souls will be marching in Fairbanks. “We will be obeying traffic lights,” insist the authors of OccupyAlaska.org, and they “will be dressed warm.”History suggests such actions are unlikely, of themselves, to change the world. As one anonymous poster at 15october.net writes, “Fleshing out ideas into living reality has always been the bugbear of radical politics.” And while anger at corporate greed is widespread, there are plenty of voters who would agree with the Australian who posted on the OccupySydney site that those marching will be “the lazy, the paranoid, the confused.”But some analysts do see a potential for political change.Jeff Madrick, a prominent economics writer, speaks warmly of the serious and reasonable debate he found at Zuccotti Park. Revolutions may be rare, but the protests could push lawmakers to act on some of the demands, he said last week: “It may begin to change public opinion enough to give Congress, people in Washington, the courage of their own convictions.”
Last Friday morning, a 24-year-old New Jersey woman told me why she joined Occupy Wall Street. Around her, balding activists in their 50s tried to rekindle 1960s-era protests. Young Marxists flew red Che Guevara flags. The young woman, though, was different.Â
She commuted to the protests, she said, while holding down two part-time jobs. She lived at home and helped her schoolteacher mother, who also worked two jobs, support her jobless, 60-year-old father. She asked to be identified only by her middle name Susan  because she feared her bosses would fire her for attending protests. She didnÂt talk of revolution. She talked of correction.
ÂLike any great nation and country, there are also hitches in the plan, she told me. ÂAnd things that need to be changed.Â
Corporate America has gained the upper hand on the American middle class, she told me. A year after graduating from college, she was working as a part-time manager at two different retail chains in New Jersey. The companies use part-time managers, she said, so they donÂt have to pay benefits.
ÂItÂs their policy, she said, Âwhich is why IÂm here.Â
Beneath the online vitriol swirling between supporters and opponents of Occupy Wall Street  lies a central question: Does Wall Street help or hurt the American middle class?  A variety of forces are slowly gutting the middle class  and a paucity of values on Wall Street is one of them.
The problem is not every bank. It is a growing slice of the financial sector that has become a vast, computerized casino where staggering fortunes can be won or lost in minutes, with taxpayers left holding the bag.
Members of the middle class, of course, played as well. They bought houses they could not afford, dallied in day-trading and saved too little during an era of limitless credit.
ÂFinance had become the new American state religion, University of Michigan Prof. Gerald Davis writes in his book ÂManaged by the Markets: How Finance Reshaped America. ÂAll the world was a stock market, and we were all merely day traders, buying and selling various species of Âcapital and hoping for the big score.Â
The middle class, though, is still waiting for its bailout.
As recently as twenty years ago, middle America saw the countryÂs financial system as its ally. For decades after World War II, a carefully regulated Wall Street  and the American financial industry as a whole  helped create a growing middle class, according to Yale University political scientist Jacob Hacker. A stable financial industry was a vital part of a vast economic boom, reliably providing home, car and college loans to average Americans, as well as capital to the companies that employed them. Not every banker was malevolent; nor was every corporation evil.
The transformation of Wall Street and America over the last thirty has been meticulously documented. The traditional, Jimmy Stewart notion of American banks and business, where companies built products, reputations and payrolls over time, has been eclipsed by a byzantine, non-transparent and insider-dominated financial industry.
The middle class  for me the 60 percent of American household that make $30,000 to $80,000 a year  have seen their median household incomes shrink in real dollars since the Great Recession ended, while Wall Street salaries have surged. A new study by the New York State Comptroller cited by The New York Times found that the average 2010 financial industry salary was $361,330  five and a half times the $66,120 average salary of other New York City private sector workers. Thirty years ago, financial salaries were only twice as high as those of other professionals.
Suspicion of Wall Street is not limited to the dozens of large cities where small protests have emerged. When I visited Bowling Green, Kentucky last week to gauge how the American middle class was faring in one small city, local businessmen lamented the role of the financial industry in the demise of several local companies. Executives used easy credit to rapidly expand firms, companies over-extended over time and eventually collapsed.
The anger in Bowling Green and Lower Manhattan is about  excess: excessive risk, excessive ambition, excessive compensation. Companies should make profits, average Americans told me. Skilled executives should be rewarded. And businesses should be viewed as irreplaceable engines of economic growth.
Wall Street, though, should not be an all powerful force that pressures companies to live-and-die by their daily stock value. It should not assign inflated values to fledgling companies. And it should encourage, not deter, companies from developing, innovating and employing over the long-term. Most of all, the financial industry should be held accountable for its performance, like everyone else.
That core moral element  the sense that Wall Street is making money for nothing  is the financial industryÂs gravest threat. Recent surveys conducted by Edelman public relations found that Americans trust in banks plummeted from 71 percent in 2008 to 25 percent in 2011, a dizzying decline of 46 percent. As this chart from the study shows, the publicÂs trust in the technology industry, meanwhile, remained high.
The response to Wall Street in Washington has been ideological, petulant and tedious. The left has declared all Wall Street suspect. The right has declared the government  and nothing but the government â evil. The Volcker rule announced this week is an imperfect, but positive step forward. As much as possible, average Americans should be shielded from high-risk trading.
In another era, middle class Americans might be less incensed by the vagaries of Wall Street. The shift of retirement savings, though, from pensions to 401(k) stock plans has hurled middle America into the markets. During the 1929 stock market crash, only 2.5% of Americans owned stocks. Today, when 401(k)s and other financial products are included, the number stands at roughly 50%.
As a result, an increasingly volatile American financial industry is helping and hurting average Americans to an unprecedented extent. The middle class is more entangled in Wall Street than ever before in U.S. history. And the American middle class is losing.
By Ben BerkowitzOct 12 (Reuters) - Warren Buffett paid $6.9 million in
federal income taxes in 2010, the billionaire investor said in
a letter to a Kansas congressman that adds fuel to the debate
over his proposal for higher taxes on the rich.The figure represent 17.4 percent of his $39.8 million in
taxable income, a percentage he has repeatedly said is too low
compared to what his own staff pays.Buffett caused an uproar in August when he said the wealthy
should be subject to a higher rate of tax. The White House has
co-opted his call into a “Buffett Rule” that would raise levies
on the richest people.Following Buffett’s suggestion, Republican congressman Tim
Huelskamp of Kansas sent the “Oracle of Omaha” a letter in late
September calling on him to release his tax returns.Huelskamp sent Buffett a second letter reiterating the
request earlier this month, and promising to release his own
returns if Buffett would as well.Buffett, the chief executive of the conglomerate Berkshire
Hathaway , responded in kind on Tuesday, according to a
copy of the letter his assistant provided to Reuters on
Wednesday.Buffett reiterated what he saw as the inequality of his
paying a rate in the teens when most people who work for him
end up paying a rate in the 30 percent range.But what he told Huelskamp he also wanted was for other
ultra-wealthy Americans to release their own returns — in
full, rather than the limited data Buffett himself shared.”If you could get other ultra rich Americans to publish
their returns along with mine, that would be very useful to the
tax dialogue and intelligent reform,” Buffett said. “I stand
ready and willing - indeed eager - to participate in this
exercise.”Buffett went on to suggest a method to get reticent moguls
to release their returns, among them Rupert Murdoch, whom he
has repeatedly challenged on the subject.”Having the ‘favored 400’ make their tax returns public -
even if only code letters were attached to the various returns
- would be a big step in informing legislators and the public
of what needs to be done,” Buffett wrote.A spokeswoman for Huelskamp said he would issue a statement
later on Wednesday.
“Consumers are extraordinarily sensitive to economic conditions and as things started to look a bit more sour, they stopped using their credit card,” said Steve Blitz, a senior economist with ITG Investment Research in New York.The U.S. credit rating downgrade and Europe’s debt problems triggered wild swings in global equity markets in August. That combined with higher unemployment to hold consumers back, economists suggested.Revolving credit, which mostly measures credit card use, dropped $2.27 billion in August after falling $3.56 billion in July.Non-revolving credit, which includes mostly auto loans, fell $7.23 billion, the largest decline since August 2008, after rising $15.48 billion in July.