Hedge funds quit listening to bears — and buy

Hedge funds trailing the Standard & Poor’s 500 index for the last five months are giving up on bearish bets and buying stocks at the fastest rate in two years. A gauge of hedge-fund bullishness measuring the proportion of bets that shares will rise climbed to 48.6 last week from 42 at the end of November 2011, the biggest increase since April 2010, according to data compiled by the International Strategy & Investment Group.

The Bloomberg aggregate hedge fund index gained 1.4 percent last month, lagging behind the S&P 500 by 2.65 percentage points. Money managers struggling to catch up with the gains have contributed to the rally that pushed the S&P 500 up 29 percent since October as economic reports beat estimates no fax payday loan. Market bulls say they are a continuing source of cash that can move stocks higher.

Bears say capitulating hedge funds are further evidence that equities have risen too far, too fast as economic growth remains sluggish, warning that the pool of potential buyers is being depleted. “It’s encouraged me to gradually increase my exposure to stocks,” Barton Biggs, founder of hedge fund Traxis Partners LP in New York, said in a March 23 phone interview, referring to an improving economic outlook.

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Federal budget 2012: pennies to be withdrawn from circulation

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US orders for long-lasting goods rise 2.2 percent

WASHINGTON • U.S. companies ordered more long-lasting goods last month, showing businesses are willing to buy equipment and machinery even after an investment tax credit was halved.

The Commerce Department said today that orders for durable goods rose 2.2 percent in February after a steep drop in January. Greater demand for machinery, computers, autos and aircraft drove much of the increase.

Orders for so-called “core” capital goods, a good measure of business investment plans, rose 1.2 percent. Demand for these goods fell in January by the most in a year, after the full tax credit expired.

A durable good is expected to last at least three years. Orders can fluctuate sharply from month to month. Still, orders have been steadily rising since the recession ended nearly three years ago.

In February, durable goods orders totaled $211.8 billion, 42 percent above the recession low. Orders remain roughly 14 percent below their peak in December 2007.

The increase in February disappointed some economists, who had hoped to see a bigger gain in orders. Paul Ashworth, an economist at Capital Economics, noted that orders for commercial aircraft were much smaller than expected.

“Otherwise, the orders data were encouraging,” Ashworth wrote in a note to clients. Excluding airplanes and other transportation equipment, orders rose at a 1.6 percent pace, close to economists’ forecasts.

Last year, businesses could reduce their taxable profits by an amount equal to the cost of a major investment payday loan. That credit fueled a jump in orders for industrial machinery, computers and other capital goods. Spending on core capital goods surged nearly 3 percent to an all-time high in December.

The credit this year lets companies write off only half the cost. Many economists believe that change was a big reason for the January drop off in durable goods and core capital goods.

Shipments of core capital goods rose in February. But they are still below December’s total. As a result, business investment in equipment and software isn’t much higher than it was in the final three months of last year, Ashworth noted. That’s a big reason economists expect economic growth to slow to about a 2 percent annual pace in the current quarter, down from 3 percent in the final three months of last year.

Still, business investment is expected to stay strong this year. Surveys show that business spending should increase in the April-June quarter, Ashworth said. Many companies delayed upgrading their facilities during the recession and are starting to catch up.

A vibrant manufacturing sector has helped drive the best job growth in two years. The economy has added an average of 245,000 jobs per month since December, which has lowered the unemployment rate to 8.3 percent. Manufacturers have added an average of 37,000 jobs per month during that time.

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US court dismisses AstraZeneca Seroquel suit

AstraZeneca PLC says a U.S. court has dismissed the company’s bid to extend the patent on Seroquel, its blockbuster drug for the treatment of bipolar disorder.

AstraZeneca said Monday that the suit against the U.S. Food and Drug Administration had been dismissed on Friday in Washington D.C.

The pharmaceutical company was seeking to extend its patents on quetiapine, the active ingredient in the medication, and on the formula for Seroquel XR, the extended-release version.

Astra Zeneca was seeking to protect its patents from generic competitors in the United States until December. The company says it is evaluating its legal options.

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New federal regulations impose tighter controls on long-term jobless

State workforce agencies are gearing up for a new set of federally-mandated rules that impose tighter controls on the long-term unemployed seeking extended jobless benefits.

The key provision in the Middle Class Tax Relief and Job Creation Act enacted earlier this year by Congress requires that jobless workers consult face-to-face with state job counselors upon reaching 26 weeks of unemployment.

The unemployed become eligible for extended, supplemental benefits at the six-month point.

Maurice Emsellem, the policy co-director of the National Employment Law Project in Oakland, Calif., says the interview requirement is a positive step for the 5.4 million Americans who’ve been out of work six months or longer.

He points out that the system, as currently structured, subjects the unemployed to conversations online and by telephone with “anonymous” state job counselors.

“And in person contact is what a lot of people need at that stage of the process,” said Emsellem.

Additional rules call on the unemployed to maintain a record of the effort to find a new job that includes the names of potential employers and the means by which they were contacted.

Another requirement asks the extended jobless to document their efforts to upgrade job skills.

The Illinois Department of Employment Security last week asked eligible workers to complete the paperwork prior to meeting with personnel in the state’s 26 “workNet” centers.

Those that don’t fill out the paperwork and participate in the interview “risk losing their benefits,” said Greg Rivara, the department spokesman.

Rivara said the agency expects up to 8,000 state residents to visit the centers over the first weeks the new rules are in effect.

Illinois does not plan to add personnel to handle the additional duties required of the new regulations.

With about 75,000 workers receiving long-term unemployment, Missouri didn’t say whether it would need more people to staff the state’s Career Centers.

Jobless workers already are required to report in person at Career Centers every four weeks, though the state didn’t explain how that visit differs from the new requirement.

“The new requirements by the federal government continue on this path, and we are working to ensure any additional federal requirements will be met,” Missouri Labor Department spokeswoman Amy Susan wrote in an email late Friday.

Emsellem’s biggest concern is that states won’t fulfill their end of a program that provides them with a financial incentive.

The federal government will deposit an $85 federal stipend in state treasuries for each displaced worker that meets the new requirements.

“We want to make sure the (states) put (the enhanced rules ) to good use by providing services and not just take the money,” Emsellem said.

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Fed grappling with supervisory role: Bernanke

The Federal Reserve is still working out how best to supervise large financial institutions whose failure could cause domino effects across the financial system, Federal Reserve Chairman Ben Bernanke said on Friday.

Bernanke, in brief introductory remarks to a conference on central banking, did not say anything about the outlook for the economy or monetary policy. Analysts are watching particularly keenly for any sign the Fed may be considering pulling forward from late 2014 the timing of reversing ultra-low interest rates in light of surprisingly good signs about the recovery.

The Fed and other regulators are still working out how to use new authority they have been given following the 2007-2009 financial crisis, Bernanke said.

“Although much progress has been made, we are still at an early stage of understanding how best to meet these new macroprudential responsibilities,” he said.

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Oil falls to below $107 amid China growth concerns

Oil prices fell to below $107 a barrel Thursday in Asia amid investor concerns that China’s economy and crude demand may grow less than expected this year.

Benchmark oil for May delivery was down 71 cents to $106.56 at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.20 to settle at $107.27 per barrel in New York on Wednesday.

Brent crude for May delivery was down 65 cents at $123.55 per barrel in London.

Chinese industrial production fell to a four-month low in March, according to HSBC’s preliminary manufacturing purchasing managers index released Thursday. China is the world’s second biggest consumer of oil behind the U.S.

“Weakening domestic demand continued to weigh on growth,” HSBC said in a report. “China’s slow down has yet to finish.”

Crude has hovered between $105 and $110 for the last month, up from $75 in October, amid trader worries that a military strike by Israel or the U check cash advance.S. on Iran’s nuclear facilities could disrupt global supplies.

The jump in oil prices in recent months has increased the price of gasoline and other crude products and raised fears in Asia that inflation could quicken. Inflation concerns have kept policymakers from implementing aggressive stimulus measures despite signs of slowing economic growth, said Irvin Seah, an economist with DBS bank in Singapore.

“Oil prices will hit everyone, which is why despite the downside risks to growth, Asian central banks have been standing back rather than cutting interest rates,” Seah said.

In other energy trading, heating oil was down 0.7 cents at $3.22 per gallon and gasoline futures slid 1.8 cents at $3.33 per gallon. Natural gas fell 2.2 cents at $2.34 per 1,000 cubic feet.

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Would you reveal your Facebook password for a job?

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IMF Staff Sees Potential Need for More European Aid to Greece - Bloomberg

Greece remains

iPad in Toronto: Line-ups and Jedi forces but no protestors

Before the doors of the Eaton Centre Apple store stored opened at 8 a.m., as some early birds stretched out sleeping on the tile floors, Ashley Carrillo, 18 and Melissa Stedman, 19, are having trouble containing their excitement.

Stedman is moral support for Carrillo, who has been saving up a portion of every paycheque for the 32GB wi-fi version of the new iPad to accompany her on her job on a Disney cruise ship for the next ten months.