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New orders for long-lasting U.S. manufactured goods fell unexpectedly in August, dropping by their biggest margin in seven months, following a plunge in commercial aircraft orders, the government reported on Friday.

The Commerce Department said durable goods orders tumbled 2.4 percent, the largest decline since January, after rising by a revised 4.8 percent in July. New orders for July were previously reported to have increased 5.1 percent.

Analysts polled by Reuters forecast orders rising 0.5 percent in August. Compared with the same period last year, new orders were down 24.9 percent.

Durable goods orders are a leading indicator of manufacturing activity, which in turn provides a good measure for overall business health.

U.S. stock index futures fell on the report, while government bond prices rose.

“This is a bit of a reality check for people. It means there is more to be done and we are not out of the woods yet,” said Doug Roberts, chief investment strategist at Channel Capital Research.com in Shrewsbury, New Jersey.

The data coming on the heels of a report on Thursday that showed a surprise drop in existing home sales in August was a reminder that recovery from the worst recession since the 1930s would be uneven. Doubts linger over its sustainability as consumer spending remains constrained by a weak labor market.

Non-defense aircraft and new parts orders plunged 42.2 percent in August, likely reflecting a drop in civilian aircraft orders received by Boeing. New orders for transportation equipment dropped 9.3 percent.

New durable goods orders excluding transportation were flat in August, after rising for three straight months, the department said. Analysts polled by Reuters had expected new orders, excluding transportation to rise 1.0 percent, after a 1.1 percent increase in July.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, unexpectedly fell 0.4 percent in August. Analysts polled by Reuters had expected core capital goods to increase 1.3 percent.

The prior month was revised to show a 1.3 percent drop, previously reported as a 0.3 percent fall.

Durable goods inventories fell 1.3 percent in August after dropping 1.1 percent the prior month and declining for eight consecutive months. Shipments fell 1.4 percent after two months of straight gains. Shipments rose 2.2 percent in July.

(Reporting by Lucia Mutikani; Editing by James Dalgleish)

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A prominent analyst on Thursday called for a merger of Comcast Corp and Time Warner Cable, saying such a blockbuster deal would offer a host of benefits for both cable giants.

Citi analyst Jason Bazinet, in a note to clients, said a deal between Comcast and Time Warner would give the combination 37 percent of the pay TV market plus offer about $2.7 billion in cost savings. Shares of both companies, he predicted, will trade higher on a potential announcement.

Bazinet’s prediction comes on the heels of a court case that struck down a rule limiting cable companies to no more than 30 percent of the U.S. pay-TV market.

While the decision opens the door to more dealmaking, other industry analysts cautioned that Comcast would likely look toward small- to mid-sized acquisitions rather than pursue a big deal N09365118. Comcast currently has about 25 percent of the pay TV market.

Comcast Chief Operating Officer Steve Burke said during a presentation that the ruling did not change the top cable company’s world view.

“We don’t wake up every day saying how do we get bigger in cable,” said Burke speaking at an investor conference. “But if there is a way to acquire cable systems for what we consider to be a good price, ones that are contiguous or well-managed, we would certainly look at whatever was out there.”

In his note, Citi’s Bazinet listed seven benefits of a combination of Comcast and Time Warner, saying among them it would lead to cost savings, offer an investment grade rating, and simplifies a wireless strategy.

(Reporting by Paul Thomasch, editing by Dave Zimmerman)

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International Business Machines Corp on Tuesday repeated that it expects to earn “at least” $9.70 a share this year.

In a federal filing, the company also reiterated that it was “well ahead” of its plan of achieving earnings per share of $10 to $11 for 2010.

Analysts surveyed by Reuters Estimates had expected a profit of $9.76 for 2009 and $10.68 for 2010.

IBM, which has shifted its focus from computers to higher-margin software and services over the past decade, first raised its 2009 EPS outlook in July payday loans. It had previously expected a profit of $9.20 for 2009.

Shares of IBM were a bit higher in premarket trading, climbing to $118.18 after closing at $117.46 on Friday on the New York Stock Exchange.

(Reporting by Franklin Paul, editing by Gerald E. McCormick)

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New signs of economic recovery emerged Tuesday only to be overshadowed by new worries that they won’t last.

The U.S. manufacturing sector grew in August for the first time in 19 months. A gauge of future house sales surged in July to its highest point in more than two years. And auto sales — boosted by the Cash for Clunkers program — appeared in August to have marked their first year-over-year monthly gain since October 2007.

Yet hopes for a sustained recovery remain clouded by a big concern: consumer spending, which fuels about 70 percent of U.S. economic activity.

Analysts noted that the manufacturing and housing gains were boosted by temporary government stimulus steps, including Cash for Clunkers, which has since expired. The program helped lift sales at Ford, Toyota and Honda in August, though Chrysler Group and General Motors Co. withstood another month of falling sales.

At the same time, the National Association of Realtors said its seasonally adjusted index of sales contracts signed in July for previously occupied houses rose 3.2 percent to 97.6. It was the sixth straight increase and 12 percent above the same month last year.

The better-than-expected report from the Institute for Supply Management showed the highest number for its manufacturing index since June 2007. New customer orders jumped to a level not seen since late 2004.

Most manufacturers are simply restocking depleted stockpiles of goods — a process that will run its course within six months, said Joshua Shapiro, chief U.S. economist at MFR Research. Beyond that, it’s hard to say how much the sector can expand as long as credit for consumers and businesses remains tight. If loans remain out of reach for many, shoppers and companies can’t spend and grow.

The ISM, a trade group of purchasing executives, said its manufacturing index rose to 52.9 in August, from 48.9 in July. That was its first reading above 50, which indicates expansion, since January 2008. The index has been trending lower since a peak reading this decade of 61.4, in May 2004.

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My OfficeMax Inc. shares have done better lately. What does the future hold?

The No. 3 U.S. office products firm is continuing its cost-cutting efforts in an attempt to improve its profitability and sales in a highly competitive business hampered by the weak economy.

It isn’t, for example, opening any new stores this year. It is increasing the number of private-label products bearing its name to lure shoppers with lower prices while expanding profit margins. About one-fourth of its sales are currently private-label.

It expects sales to decline in the second half due to cutbacks in corporate America, the economy and what is projected to be a lackluster back-to-school season.
Shares are up 31 percent this year following drops of 61 percent last year and 57 percent in 2007. While the company lost $17.7 million in the second quarter, the fact that Wall Street had expected far worse provided a boost to its stock.

OfficeMax sells through a direct sales force, the Internet and catalogs. It has improved its profitability but still lacks the economies of scale of its larger rivals and must compete with numerous retailers that have begun to sell office products.

No. 1 Staples, whose profits were down 33 percent in the past quarter, has more than 1,500 stores and is taking market share away from OfficeMax’s main Chicago sales area. It bought the Dutch office-supply firm Corporate Express NV last year. In comparison, No. 2 Office Depot has more than 1,200 stores and OfficeMax fewer than 1,000.

The consensus recommendation on OfficeMax shares is "hold," according to Thomson Reuters, which consists of one "strong buy," three "buys" and seven "holds."

Yet OfficeMax remains aggressive. It recently signed a multiyear deal that will allow it to use some FedEx Corp. services in about 900 U.S. retail locations. It is offering domestic FedEx Express and ground shipping, while it will accept drop-off packages from FedEx customers at its in-store print and document services center car loan interest rates.

The company has also forged an alliance with Lyreco, a global distributor of office products in 36 countries, and has a partnership to distribute co-branded office products through 1,600 Safeway grocery stores.

Earnings are expected to decline 75 percent this year compared with a 6 percent gain projected for the office supplies industry. The forecast is for a 50 percent gain next year versus a 13 percent rise industrywide.

Is there any advantage to having my various individual retirement accounts with the same investment firm, or does it make no difference?

It can make things easier having your investments with one firm because you can check them online in the same place and will have fewer statements to contend with.

Too often investors with funds at several firms also own similar funds, just in different places.

You can find an array of choices in most any investment style at larger fund firms. In addition, for mutual funds sold with "loads," or sales charges, there can also be discounts for those who invest certain amounts of money with them.

"You’re picking the investments, so you’re not giving up that control to the investment firm," said Marilyn Capelli Dimitroff, certified financial planner and president of Capelli Financial Services Inc. in Bloomfield Hills, Mich.

"Within your account, however, you want to make sure that you have diversified investments."

Still, there’s nothing that should tie you to keeping investments with one firm if you feel that you can find some better funds at an additional firm and keeping everything together won’t meet your goals.

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WASHINGTON – Swiss banking giant UBS AG agreed Wednesday to turn over to the IRS the details of 4,450 accounts suspected of holding undeclared assets by American customers, ending an intense trans-Atlantic legal fight.

IRS Commissioner Doug Shulman said the accounts held $18 billion (dollar figures U.S.) in assets at one time. Many have since been closed, he said.

The deal will give the Internal Revenue Service thousands of long-sought account names, and is expected to provide even more UBS clients who voluntarily disclose their financial details to the agency, Shulman said.

UBS has an estimated 52,000 accounts of U.S. customers. The IRS chief said the 4,450 accounts being relinquished to the agency were the ones most suspected of containing undeclared assets.

"I believe this agreement gives us what we wanted – access to information about those UBS accountholders most likely to have been involved in offshore tax evasion," Shulman said.

He said that other account holders appear to be in compliance with U.S. tax laws.

The two sides told a federal judge last week they had reached a tentative agreement, but the details were not released until Wednesday.

Account holders will be notified before their names are released to the IRS. They will then have the ability to repeal their release before Switzerland’s Federal Administrative Court.

The process is expected to take several months, IRS officials said.

Shulman said the Swiss government has assured U.S. authorities that the release of the names conforms with both Swiss banking laws and the tax treaty signed by both countries car insurance quotes. Shulman said the IRS reserves the right to resume its legal fight if any of the names are withheld.

"This issue is not going away, and people hiding assets and income offshore will find themselves increasingly at risk due to our efforts in this area," Shulman said.

The Swiss Bankers Association issued a statement in support of the agreement.

"The out-of-court agreement avoids a prolonged legal battle that would have had an uncertain outcome and UBS can now continue with its consolidation process in an atmosphere free of this legal uncertainty," the association said.

Swiss Justice Minister Eveline Widmer-Schlumpf told a news conference in the capital of Bern that the deal lifts the threat of criminal prosecution against UBS, which could have endangered the bank’s very existence and dealt a severe blow to the Alpine nation’s economy.

"There was no alternative to this solution," she said.

Asked if other Swiss banks could be targeted for future prosecution in the United States, she said: "We don’t expect this to be the case."

UBS Chairman Kaspar Villiger said, "I am confident that the agreement will allow the bank to continue moving forward to rebuild its reputation through solid performance and client service."

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Boeing has received a $1.15 billion contract from the Canadian government to build 15 heavy-lift Chinook helicopters.

The new CH-47F helicopters will be built at a Boeing Co. facility in Ridley Township, Pa., and will be delivered between 2013 and 2014.

Boeing has pledged to match every dollar spent by the Canadian government to acquire the helicopter fleet by partnering and issuing contracts to Canadian companies. The Chinooks will be designated the CH-147 in Canada faxless payday loan online.

"This new contract has created opportunities for new partnerships to further grow our already large supplier base in Canada," said Mark Kronenberg, vice president of international business development for Boeing’s St. Louis-based Integrated Defense Systems.

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The unemployment rate in the Greater Toronto Area hit the double-digits last month as a strong Canadian dollar and cool, wet weather took its toll on the tourism industry.

The city’s jobless rate reached 10 per cent last month - its highest level since November, 1994, according to the latest figures released by Statistics Canada today.

That’s up from 9.6 per cent for June.

"Toronto is important for the tourism sector, and tourism has been hammered by this downturn. We rely on visitors from abroad and the strong currency isn’t helping," said Doug Porter, deputy chief economist at BMO Capital Markets in Toronto.

"The weakness in construction, too, has weighed very heavily on Toronto."

Toronto now has the fourth-highest unemployment rate in the province — and the country — behind Windsor, London, and St. Catharines-Niagara, all communities that have been devastated by the recent turmoil in the automotive industry.

Nationally, Canada’s unemployment rate didn’t change last month. It held steady at 8.6 per cent as the economy shed 45,000 jobs in July.

Students were the hardest hit last month. The jobless rate for those trying to earn money during the summer break rose sharply to 20.9 per cent - that the highest level since StatsCan began keeping this data in 1977.

StatsCan defines students as those "who attended school full-time in March and who are planning to return to school in the fall free credit report and score."

For others ages 15 to 24, the unemployment rate is substantially lower — 13.4 per cent.

"It gives you a taste of just how awful the market was for summer students," Porter said.

Another sign the dismal state of the job market: the participation rate has declined to 67.2 per cent, down 0.3 per cent from June, and an indication that many job-seekers have simply thrown in the towel.

While most of July’s job losses were in Quebec, there were also losses in Saskatchewan, as well as Newfoundland and Labrador, Statistics Canada said.

Employment fell last month in accommodating and food services and construction while there were increases in retail and wholesale trade.

Windsor has the highest unemployment rate in the country - 15.2 per cent, followed by London at 10.9 per cent. Both communities depend on the vehicle and automotive parts manufacturing sectors, which have suffered from plant closures and heavy job losses.

The jobless rate in St. Catharines-Niagara was 10.5 per cent.

Statscan measures unemployment for what it calls the Toronto CMA, or census metropolitan area, which extends from Milton in the west to Ajax on the east side, and north to Georgina.

Ottawa has the unemployment in the province, 5.9 per cent, thanks to hiring by the federal government.

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Travellers have two more days to take advantage of a 60 per cent discount off Via Rail Canada trips completed before Dec. 14, a spokesperson for the transportation corporation said this afternoon.

The deadline, originally Wednesday, was extended after frustrated customers trying to purchase tickets online or over the phone ran into hours of website glitches and busy tones.

"Due to the overwhelming response from customers, Via has decided to extend the deadline to Friday at 11:59 p.m. … an additional 48 hours," Via Rail spokesperson Ashley Doyle said this afternoon.

The extension couldn’t have come a moment sooner, as customers’ moods had quickly turned sour earlier today when many of them decided to stand in a lengthy lineup at Union Station to ensure they met the deadline.

The queue grew to about 150 people at one point this afternoon.

"How many people do they really want to hand out (discounts to)? I think it’s a conspiracy personally," Karen Thompson, a local nurse, said as she stood in line. "I feel sorry for those people who can’t get out. This is my one day off … I wouldn’t be able to come down here normally payday loan no fax no credit check."

Thompson, who was buying tickets for a trip to Ottawa in October, said she had tried calling the customer line since Sunday night but couldn’t get a person on the line.

Via is in the process of increasing the bandwidth on its website, viarail.ca, "allow more people to access the site and quicker," after an overwhelming number of hits caused the inconveniences, Doyle said.

"We’ve also added extra staff to our telephone office," she said. "It’s fully staffed."

Via announced the generous discount, which is applicable to trips through Dec. 14, Sunday in an attempt to make up with angry passengers rerouted by a strike that saw about 350 company train engineers walking off the job Friday.

Service resumed Sunday after a settlement was reached through binary arbitration.

"We appreciate that by ceasing operations for a few days, we impacted a lot of passengers’ travel plans," Doyle said. "We wanted to thank them, apologize for the inconvenience and welcome them back aboard."

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CIT Group Inc., the commercial lender running short of cash, said it probably wouldn’t receive a federal bailout and was studying alternatives with advisers.

"There is no appreciable likelihood of additional government support being provided over the near term," the New York-based company said Wednesday.

CIT, once the biggest independent commercial lender, faces bankruptcy if no aid emerges, Standard & Poor’s said earlier this week.

The Treasury, Federal Reserve and Federal Deposit Insurance Corp. have been debating whether to risk more taxpayer funds, on top of the $2.33 billion granted to CIT in December, to keep the lender afloat. President Barack Obama was briefed on CIT in his regular meeting with economic advisers, spokesman Robert Gibbs said.
Regulators have been trying to gauge whether a bankruptcy would present a risk to the rest of the financial system. Supporters point to 1 million customers, including 300,000 retailers, who may lose funding.

"It’s a killer," said Sean Egan, president of Egan-Jones Ratings Co individual health insurance. "What’s next is that they’re going to have to scrape for capital to meet the next loan payment, and it’s highly likely that they’re going to file for protection."

CIT has battled cash shortages and faces $1 billion of bonds maturing next month. The lender gained 1.9 percent Wednesday before trading was halted by the New York Stock Exchange.

"CIT is most certainly too important to the retail industry to be allowed to fail, and the retail industry is too important to the economy to be placed under additional stress," Tracy Mullin, chief executive of the National Retail Federation, said in a letter to Treasury Secretary Timothy Geithner.

A CIT failure would "impact thousands of retailers" and "that cannot be allowed to happen at a time when retailers are already struggling to survive the national recession."

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