Americans on budgets push up price of “cheap” beef

CHICAGO (Reuters) – With greater amount of Americans tightening their belts, demand for cheaper cuts of U.S. flesh of neat-cattle has actually pushed the price of select-grade beef higher than the in general more expensive choice cuts.

For the first time in nearly sum of ~ units years, select-grade beef prices are above those for better-condition choice grade, according to U.S. government data.

The data showed that desire to obtain for select has grown while supplies have declined.

Select beef put ~ Monday averaged 8.22 per cwt — 55 cents more than the sparing beef priced at 7.67.

The inversion of the so-called election-select spread was the third widest since the U.S. Agriculture Department began tracking the data in 2001 and only the tenth time the spread has inverted. (Graphic: r.reuters.com/bem97r)

“When the preference-select spread approaches zero, or occasionally gets inverted, it’s commonly an indication of weak demand — consumers not willing to pay greater amount of for the good stuff,” said Ron Plain, agriculture economist at the University of Missouri.

Live bovine quadrupeds futures are trading near the record high set last month at the Chicago Mercantile Exchange and the elevated beef prices has have capped demand for all cuts.

Consumers are besides grappling with record-high food prices and turning to normally economical choices, including cull beef cuts such as the chuck or round commonly ground into hamburgers.

Select beef is leaner but less flavorful than choice, which has more marbling and productive. Choice cuts such as the sirloin and tenderloin are more many times found in restaurants.

“It’s very unusual to obtain this inverted, and it’s self-correcting,” said Jim Robb, husbandry economist at the Livestock Marketing Information Center.

“People in the marketplace, especially the extremity users on the hotel and restaurant side, even the grocery supply side, say, ‘If there is no premium for choice athwart select, send me your choice product,’” Robb said.

Due to efficiencies in cattle breeding, feeding and other factors, more of the meat is in addition graded at a higher level.

On average, 65.11 percent of beef is rated choice and 26.5 percent is rated select in which case only 3.71 is rated top-of-the-line prime, USDA uttered on Monday.

“We are producing, proportionally, more choice beef than preferable beef,” Robb said. “The bottom line for consumers is that we’ll remark a little bit more choice product showing up at the grocery supplies.”

(Reporting by Michael Hirtzer; Editing by David Gregorio)

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Obama’s BABs bid a boon for U.S., muni bonds

http://www.nathanhamm.clear/news/obamas-babs-bid-a-boon-for-u-s-muni-bonds/ http://www.nathanhamm.unadulterated/news/obamas-babs-bid-a-boon-for-u-s-muni-bonds/#comments Mon, 14 Feb 2011 23:01:02 +0000 Nathan Hamm News BABs bonds favor Muni Obama's U.S. http://www.nathanhamm.net/news/obamas-babs-proposal-a-boon-for-u-s-muni-bonds/ MIAMI (Reuters) – President Obama’s proposals to renovate Build America Bonds and shelter the middle class from tax rules targeting the rich would be applauded by the drooping .8 trillion municipal bond place of traffic. Buried in Obama’s massive spending plan presented … Continue lecture →

MIAMI (Reuters) – President Obama’s proposals to be resuscitated Build America Bonds and shelter the middle class from tax rules targeting the wealthy would be applauded by the drooping .8 trillion municipal bond market.

Buried in Obama’s massive spending plan presented to Congress without interrupti~ Monday, the fresh authorization of BABs would encourage foreign buying of shortcoming sold by cities, states and towns. Analysts say changes in the alternative minimum tax (AMT) would also be a boon for airports, covering agencies and others niche issuers.

“The market would like these changes, end BABs and the AMT have costs associated with them,” uttered muni strategist Chris Mier at Loop Capital Markets in Chicago. “I am not enduring the GOP will be too enthusiastic, especially about BABs.”

BABs were the 800-pound gorilla of munis last year, with issuers rushing to market late last year to sell federally-subsidized taxable BABs for infrastructure projects. BABs offerings pushed separately dozens of traditional tax-free deals before authorization expired on December 31.

Short-lived BABs, by with a less prominent program to shelter interest payouts on some types of bonds from the AMT, were credited by many analysts by lowering net interest costs for many muni issuers, reshaping the burden-free yield curve and helping stimulate U.S. economic activity.

“They looked back to know what worked, and BABs worked well,” said John Mousseau, portfolio comptroller and vice president at Cumberland Advisors Inc. “I think BABs were excellence 100 to 150 basis points in savings to issuers.”

The harassing labor of recent months in the muni market that has lifted premium rates was partly caused by a pullback by foreign investors drawn to BABs, according to Mousseau. A revival of BABs sales would steady the muni market, he said.

Worries on the eve the financial stability of state and local governments weathering revenue downturns too fueled three muni sell-offs since November and sharply raised borrowing costs since roads, schools and other basics of U.S. society.

“Once you separate BABs and foreign investors and were left with just tax-prompt issuance, you were limited to individuals investing personally and through common funds,” Mousseau said.

Mutual funds specializing in tax-free fault last week posted a 13th straight week of net outflows as mid-November and have lost a net .67 billion, according to LipperFMI.

Loop Capital’s Mier declared Obama’s proposal for a three-year fix of the AMT — a backstop harden of tax calculations that eliminates many deductions for the very rich — would increase demand for certain bonds sold by housing agencies, airports and industrial development authorities.

Congress has repeatedly modified the AMT regime on a brief basis to keep millions of taxpayers from paying sharply higher taxes. Obama proposed a three-year change funded by higher taxes on the wealthy.

AMT bonds paying interest that loses its tax exemption for investors covered by the AMT rules representation for about 5 percent to 9 percent of new muni bonds sold every one year, Mier said.

Analyst Natalie Cohen of Wells Fargo Securities said a suspension of taxes on AMT munis had doubled issuance after all the rest year of airport bonds whose interest is normally tagged by the AMT.

After last year’s record high of 5 billion, issuance so alienated in 2011 has been remarkably slow and ran at an 11-year monthly grave during January.

On Monday, the week’s estimated billion new deal calendar grew as Florida’s Board of Education afore~ it planned to sell nearly 5 million of general obligation refunding bonds in based on competition bidding on Tuesday.

Monday’s secondary trading was uneventful, with prices flat with scattered gains and volumes running at two thirds the average of the past month. Yields on AAA-rated 10-year munis ended right hand 1 basis point at 3.33 percent. The 30-year’s yield was steady at 4.90 percent.

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Dive discerning for U.S. mortgage bond value, Marathon says

http://www.nathanhamm.toil/news/dive-deep-for-u-s-mortgage-bond-value-marathon-says/ http://www.nathanhamm.gin/news/dive-deep-for-u-s-mortgage-bond-value-marathon-says/#comments Mon, 14 Feb 2011 22:01:03 +0000 Nathan Hamm News influence deep Dive Marathon mortgage says U.S. value http://www.nathanhamm.trap/news/dive-deep-for-u-s-mortgage-bond-value-marathon-says/ NEW YORK (Reuters) – Investing in distressed U.S. residential mortgage bonds has been a boon for investors who recognized returns without ceasing the securities would shame the worst-case scenarios envisioned during the financial crisis. Now, after a two-year rally and an … Continue lection →

NEW YORK (Reuters) – Investing in distressed U.S. residential mortgage bonds has been a boon for investors who recognized returns up~ the securities would shame the worst-case scenarios envisioned during the financial crisis.

Now, after a two-year rally and an endless choose of Wall Street analysts recommending the sector, the choice is not in such a manner clear. Several investors say prices have risen to unjustified levels, given the stubbornly inefficacious housing market.

But some managers have not given up on the market, where a shrinking supply of securities is providing a technical boost.

“The emporium is at a point where we still see a lot of kind opportunities, but we really have to roll our sleeves up and finish a lot of micro-level work to identify those opportunities,” reported Andrew Springer, a senior managing director at Marathon, in a novel interview.

The .5 trillion “non-agency” mortgage bond emporium has rallied since March 2009, with bonds backed by prime jumbo loans soaring additional than 50 percent to about 97 cents to the dollar, according to Amherst Securities Group. Riskier bonds, of the like kind as those supported by loans with optional principal payments, have risen calm more.

Springer and co-manager Stuart Goldberg are staying bullish and looking to capitalize up~ bonds punished by the bearish views of other investors. While they agree that home prices may distil another 5 percent to 10 percent, it is not the sudden drop that could wreak havoc with models, they say.

“The freefall has stopped, and predictability is increasing,” Springer related.

“Comparing these investments … with other parts of the fixed-profits market where everything is priced to perfection, we still see momentous relative value,” he added.

New York-based Marathon Asset Management oversees billion in estate.

The mortgage bonds — called non-agency securities since they destitution the government backing of Fannie Mae, Freddie Mac and Ginnie Mae — require gained as billion to billion is paid down monthly, creating a lack value in a market where new issuance has been nil. Yields apex those on corporate bonds, enticing investors desperate to enhance returns upward of the 2 percent to 3 percent earned on debt with slender credit risk.

The two Marathon managers spoke before the American Securitization Forum’s yearly publication conference, where competitors said that some parts of the market were now expensive. To Springer and Goldberg, those are the “commoditized” bonds, not others that get value based on deeper analysis.

Cerberus Capital Management, a billion special equity manager, believes it can buy at lower prices over the next three to six months, said head mortgage trader Josh Weintraub, who worries hind part before a deeper retrenchment in housing.

The diverging views “mark a eminently expressive departure from the past, when the appeal in non-agencies was other thing universal,” analysts at Barclays Capital said in a client comment.

In particular, Barclays analysts said price gains in payment-option adjustable-blame mortgage bonds may have run too far, apparently as some investors esteem taken a more benign view on housing in California, where that sign of loan popular. Selling in that sector could rise soon, they before-mentioned.

The Marathon managers declined to identify specific bonds they favored, nevertheless reaffirmed their overall strategy.

“The technicals in the non-agency market are very strong and only getting stronger as the market continues to shrink,” Goldberg said. “We believe the place of traffic is still priced for more downside in housing prices.”

(Editing through Dan Grebler)

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Valentine’s Day subsidy: IRS begins taking itemized returns

http://www.nathanhamm.net/news/valentines-twenty-four hours-gift-irs-begins-taking-itemized-returns/ http://www.nathanhamm.net/advice/valentines-day-gift-irs-begins-taking-itemized-returns/#comments Mon, 14 Feb 2011 20:01:02 +0000 Nathan Hamm News begins benefaction itemized returns taking Valentine's http://www.nathanhamm.net/news/valentines-sunshine-gift-irs-begins-taking-itemized-returns/ In early January, the IRS announced that for tax law changes had only been approved by Congress and signed into law in December. IRS said it had to reprogram its processing systems and dallying handling returns from taxpayers who itemize … Continue reading →

In at dawn January, the IRS announced that because tax law changes had without more been approved by Congress and signed into law in December. IRS declared it had to reprogram its processing systems and delay handling returns from taxpayers who itemize deductions on Schedule A, and certain others.

Later in January the IRS announced February 14 would subsist the processing start date for such returns.

Those who are not lay upon-filing early birds, have three extra days this year to encounter one another the deadline. Taxpayers can file returns by April 18 instead of the legitimate April 15 because of a Washington, D.C. holiday on the latter date.

(Reporting by Jerry Norton; Editing by Greg McCune)

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Analysis: U.S. corporate sales sizzling, boosting stocks

http://www.nathanhamm.net/news/analysis-u-s-corporate-sales-sizzling-boosting-stocks/ http://www.nathanhamm.net/news/analysis-u-s-corporate-sales-sizzling-boosting-stocks/#comments Mon, 14 Feb 2011 19:01:02 +0000 Nathan Hamm News Analysis boosting corporate sales sizzling stocks U.S. http://www.nathanhamm.net/news/parsing-u-s-corporate-sales-sizzling-boosting-stocks/ NEW YORK (Reuters) – U.S. in~d sales are finally sizzling, another arrow in the quiver of bulls looking on account of stock markets to ascend to levels not seen since before signs of a financial crisis started to emerge in 2008. The … Continue reading →

NEW YORK (Reuters) – U.S. corporate sales are finally sizzling, another arrow in the quiver of bulls looking as far as concerns stock markets to ascend to levels not seen since before signs of a monetary crisis started to emerge in 2008.

The number of U.S. companies striking expectations for quarterly sales is nearly outpacing the number topping emolument estimates, prompting major Wall Street firms to boost earnings and market outlooks for the year.

That is a significant shift, since the greatest in quantity frequent surprises recently have been in bottom-line growth, reflecting assaulting cost-cutting through layoffs and expenses.

The bullish news on sales could instigation further gains in stocks, which recently hit 2-1/2-year highs. The Standard & Poor’s 500 hand is up 27 percent since September 2010.

Nearly three-quarters of S&P companies hold reported revenues so far for the quarter, and 69 percent accept beaten analysts’ expectations, according to Thomson Reuters data.

That percentage is well overhead the average of 61 percent from the past four quarters, and compares favorably by 72 percent of companies beating earnings expectations.

The improving outlook prompted UBS to obtain its year-end S&P 500 target to 1,425 greatest week, citing “a reacceleration in economic data, which should confirm stronger top- and bottom-line growth.” The S&P was illiberal changed at 1,328 on Monday.

JPMorgan Chase, meanwhile, raised its 2011 through-share estimate for S&P 500 companies to .50 from .

“Essentially the market gets priced on what it earns. If I’m acquisition the earnings from top-line growth, I’m going to be warmed a lot better about it than just getting those earnings from sarcastic costs, and I’ll put a higher multiple on those earnings if it’s coming from top-line revenue growth,” said Scott Billeaudeau, portfolio manager at Fifth Third Asset Management in Minneapolis.

The portion of companies beating estimates on sales is the largest for in ~ degree quarter since at least the first quarter of 2007, according to Standard & Poor’s.

Technology has the highest percentage of companies pounding revenue estimates so far in the fourth quarter, followed by financials and consumer discretionary public funds.

Technology’s leadership could continue. According to Thomson Reuters StarMine premises, revenue estimates for tech companies looking out 12 months have risen ~ means of 2.6 percent over the past 30 days, the highest become greater for any sector. That compared with a 1 percent increase in the overall S&P 500 appraise.

JPMorgan Chase said earnings gains in cyclicals or “near-cyclicals,” including technology, energy and financials accounted for nearly all of the increase in its revisions.

“We’re expecting moment will build (in sales) in a similar fashion to how negative impetus built when sales were dropping off back in 2008,” said Thomas Villalta, portfolio manager for Jones Villalta Asset Management in Austin, Texas.

His house is bullish on technology and financials. Increased capital spending by firms should behoof technology, while mergers and acquisitions should boost financials, he said. He added that the one and the other sectors are less affected by high commodity prices.