Money world

The General Motors plant in Wentzville has completed the hiring of 437 employees who will work a second shift that’s set to begin in early January, which will mark the first time in two years that the plant has run more than a single shift.

GM, which builds the Chevrolet Express and GMC Savana full-size vans in Wentzville, will add a second shift of van production on Jan.3, bringing the total employment at the plant to 1,940 hourly workers and 155 salaried employees.

Of the 437 hourly employees added for the second shift, 235 are new hires, said Tom Brune, UAW communications coordinator for Local 2250, which represents hourly workers at the plant. GM also recalled 38 employees to the plant and transferred 164 GM employees from across the country.

“It’s a long time coming,” Brune said about the second shift, which was announced in September as part of a new labor contract.

Plant manager John Dansby said many of the transferred employees planned to move their families to the St. Louis region over the holidays.

“We’ve gotten them familiar with the plant and have them working side by side with current employees to understand how we work and how the plant works,” he said of the new employees.

Recalling laid-off workers and preparing for a second shift has “been a great boost to morale,” Dansby added.

The second shift isn’t the only new development at the Wentzville plant. GM also plans to build the next generation of its Colorado midsize pickup there, which will bring an additional 1,260 hourly and salaried jobs in 2013.

To prepare for the line, the automaker plans to invest $380 million in the plant, including the construction of a 500,000-square-foot addition to the current 3.7 million square feet.

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Asian stocks fell Wednesday after the Federal Reserve offered no new initiatives to help a slowly recovering U.S. economy.

Japan’s Nikkei 225 index fell 0.6 percent to 8,498.63. South Korea’s Kospi lost 0.5 percent at 1,854 and Hong Kong’s Hang Seng shed 0.7 percent to 18,326.98. Australia’s S&P/ASX 200 slipped 0.2 percent to 4,184.80. Benchmarks in Singapore and Taiwan fell while mainland China rose.

U.S. stocks gave up gains Tuesday after the Fed released a policy statement that made clear it was not offering any new steps to help the economy.

The Dow Jones industrial average fell 0.6 percent to close at 11,954.94. The Standard & Poor’s 500 index fell 0.9 percent to 1,225.73. The Nasdaq composite fell 1.3 percent to 2,579.27.

The Dow dropped more than 70 points in the last hour of trading and had risen as high as 126 points earlier Tuesday after two strong auctions of European debt. The Spanish government was able to sell short-term debt at much lower interest rates compared with a month ago, a signal that markets are becoming less fearful about the government’s ability to repay its debt.

And in its first sale of short-term bills, the European Financial Stability Fund raised 1.9 billion euros ($2.6 billion).

Still, investor sentiment remained fragile amid threats by Standard & Poor’s to downgrade the credit ratings of 15 countries that use the euro because of the region’s debt crisis.

“We are likely to continue seeing some cautious trading as the threat of S&P coming out to issue some downgrades at some stage this week looms,” said Stan Shamu of IG Markets in Melbourne, Australia.

“Some would argue that this is already priced in, but it will still likely rock the boat should it happen.”

Benchmark oil for January delivery was down 28 cents to $99.86 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.37 to finish at $100.14 an ounce on the Nymex on Tuesday.

In currencies, the euro fell to $1.3031 from $1.3043 late Tuesday in New York. The dollar rose to 77.99 yen from 77.97 yen.

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How might winter weather expose roof deficiencies?

Winter is the time of several holidays. What many people don’t understand is that even a minor roof leak can rob an entire holiday of fun and family time. Winter’s low temperatures can also cost homeowners much money in unnecessary heating expenses as a result of inadequate attic insulation.

Even homeowners with a lot of discretionary income don’t like to spend money on high heating bills. For a fraction of the cost of heating a home for five years, installation of fiberglass attic insulation can save thousands of dollars.

Getting a proper roof and attic inspection is a smart step to take now. Major repairs and large utility bills are not necessary when a simple 30-minute inspection is all that is required to determine what is needed to make a roof weathertight and energy efficient.

Homeowners who suspect their roofs might have suffered damage in this year’s storms should get the free inspections offered by most roofing professionals no fax payday loan. Inspections may reveal damage that is not readily visible to homeowners. These are often the same people whose roofs end up being replaced as a result of storm damage they didn’t even know they had.

The point to all of this is that trying to get a roof to last through the winter might be among the costliest of mistakes a homeowner can make. In addition, wasting money as a result of a poorly insulated attic just doesn’t make “cents.” These two items can save a homeowner thousands of dollars by having a trusted contractor inspect the roof and, at the very least, provide peace of mind during the holiday season. After all, worry-free holidays with more cash in hand always make for a happier season.

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BRUSSELS

The leaders of Germany and France called Monday for a new European Union treaty to restore confidence in the euro currency and to ensure that the region’s debt crisis never happens again.

French President Nicolas Sarkozy said after a meeting with German Chancellor Angela Merkel that they would prefer a treaty agreed by all 27 members of the European Union but would also accept a treaty among just the 17 countries that use the euro.

The new treaty should include automatic sanctions for countries that violate rules meant to keep government deficits in check.

Investors cheered the two leaders’ comments, with the euro and stocks rising and bond yields dropping.

The meeting comes at the start of a crucial week for the eurozone, as it struggles to convince markets that it is able to solve its debt crisis.

Sarkozy said a jointly issued bond by all the countries that use the euro is not the solution to the continent’s debt crisis.

Many analysts have said that only by issuing bonds backed by the whole eurozone will Europe be able to save its shared currency.

Stronger countries, like Germany and France, have resisted those calls, but some thought that as the crisis worsens they might be forced to relent. Sarkozy reiterated Monday, however, that a common bond was “in no way” the solution to the crisis.

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Courting disaffected conservatives, House Republican leaders offered Friday to overturn a pair of Obama administration environmental policies and avert a deep cut in payments to doctors treating Medicare patients as part of legislation renewing a Social Security payroll tax cut through 2012.

The tax cut, due to expire on Dec. 31, “hasn’t stimulated the economy at all,” said Rep. Louie Gohmert of Texas, one of several Republicans who emerged from a closed-door meeting and spoke unfavorably about the proposed extension at the heart of President Barack Obama’s jobs program.

“But over the long term, it does add to our deficit,” he added.

A one-year extension would cost an estimated $120 billion. The expense would be offset by cuts elsewhere in the budget, but Republican critics noted the savings would take a decade to materialize fully, while the cut itself would last for only one year.

Despite the misgivings, Speaker John Boehner of Ohio and other Republican leaders are committed to passing the legislation, fearing political fallout if payroll taxes rise on Jan. 1 on 160 million wage-earners.

The situation is similar in the Senate, where 26 of 46 Republicans voted Thursday night against a leadership-backed plan to renew the payroll tax cuts.

Officials said that to sweeten the measure for conservatives, House Republican leaders informed lawmakers they are prepared to add a provision averting a 27 percent cut in payments to doctors who treat Medicare patients, effective Jan. 1. The cost is about $38 billion over two years.

In addition, officials said Boehner and the leadership suggested including a provision that delays and eases a proposed Environmental Protection Agency requirement for new pollution regulations on industrial boilers and incinerators. The House approved legislation along the same lines in October, with the backing of 41 Democrats.

The EPA announced during the day it had agreed to ease the rules, although the change seemed unlikely to satisfy critics.

Another provision that would be added to the payroll tax bill is designed to speed construction of a proposed Keystone XL pipeline that pits environmentalists on one side, and industry and some labor unions on the other. The 1,700-mile structure would carry as much as 700,000 barrels of oil a day from tar sands in Alberta, Canada, to refineries in Texas, passing through Montana, South Dakota, Kansas, Nebraska and Oklahoma.

Despite a three-year review by federal agencies, Obama announced recently he would not decide whether to grant a construction permit until after the election in November 2012.

Democrats and Obama want to pay for the additional year of payroll tax cuts by imposing a 3.25 percent surcharge on individuals and couples with $1 million in income or more, and are hoping to use the issue to depict Republicans as benefactors of the wealthy at the expense of the middle class.

House Republicans are opposed to raising taxes, and the leadership reviewed a list of alternative proposals with the rank and file that officials said had originated with Obama or been embraced by the administration earlier in the year.

Among the options are a pay freeze for federal workers through 2015 and a requirement for them to pay a higher share of their pension costs. Raising the cost of Medicare premiums for the well-to-do is also on the list, as are proposals to charge a fee for mortgages backed by Fannie Mae and Freddie Mac, the sale of spectrum rights now held by the government, and a denial of unemployment benefits or food stamps to million-dollar earners.

“Now is not the time to slam the brakes on the recovery. Right now, it’s time to step on the gas,” Obama said in an appearance at a construction site at which he noted that unemployment last month fell to a 2 1/2-year low of 8.6 percent.

If Congress fails to deliver the legislation to his desk before its scheduled adjournment for the year, “we can all spend Christmas here together,” said the president.

Obama is scheduled to leave on Dec. 17 for a Christmas vacation in Hawaii with his family and friends, spokesman Josh Earnest said. Those plans may be delayed by unfinished business with Congress, as it has been in the past.

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Japan’s jobless rate climbed for the first time in three months in October while household spending and incomes fell, adding to evidence that the country’s post-disaster rebound is waning.

Government figures released Tuesday showed the unemployment rate adjusted for seasonal variations had jumped to 4.5 percent from 4.1 percent in September. Other recent indicators show slowdowns in exports and industrial production in the face of a strong yen and a sputtering global economy.

Japan’s economy expanded at an annualized rate of 6 percent in the July-September quarter in an impressive comeback from the March earthquake, tsunami and nuclear accident. But economists have said such robust growth in the world’s No. 3 economy is unsustainable.

The Organization for Economic Cooperation and Development said in a report Monday that Japan’s “pace of recovery is now moderating.”

The latest labor report is the second since September to include data from the three prefectures hardest hit by the disaster _ Iwate, Miyagi and Fukushima. Between March and August, the government omitted the regions because of difficulties in gathering data.

Separately, the government’s monthly report on households showed that families are tightening their budgets.

Average household spending in October retreated 0.4 percent from a year earlier to 285,605 yen ($3,650). Average monthly household income declined 1.8 percent in real terms to 479,749 yen ($6,135).

The OECD said Japan’s economy should benefit next year from improved financial conditions and the government’s planned reconstruction spending. It expects the gross domestic product to grow 2 percent in 2012.

“Soft global growth and the appreciation of the real exchange rate are, however, likely to check the pace of the upturn,” the OECD said.

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On the eve of landmark elections, Egypt’s military ruler warned Sunday of “extremely grave” consequences if the turbulent nation does not pull through its current crisis _ an attempt to rally the public behind his council of generals in the face of pressure from protesters to step down immediately.

Field Marshal Hussein Tantawi urged voters to turn out for the start of parliamentary elections Monday despite the chaos in the streets after nine days of protests and clashes that some have dubbed a “second revolution.” The vote will be the first since Hosni Mubarak was ousted in February in a popular uprising and it was meant to usher in democracy after decades of dictatorship. However, it has already been marred by the new wave of demonstrations.

Tantawi claimed “foreign hands” were behind the latest wave of unrest. His assertions were similar to those made by Mubarak in the final days before he was ousted. Mubarak frequently warned chaos would ensue if his regime fell, presenting his authoritarian rule as the alternative of order and security. Tantawi was Mubarak’s defense minister for 20 years.

“We will not allow troublemakers to meddle in the elections,” he said in comments carried by the nation’s official news agency. “Egypt is at a crossroads _ either we succeed politically, economically and socially or the consequences will be extremely grave and we will not allow that.”

The military took power when Mubarak stepped down. But it has come under intense criticism for most of the past nine months for its failure to restore security, stop the rapid worsening of the economy or introduce the far-reaching reforms called for by the youth groups behind Mubarak’s fall and the ongoing protest movement. Tantawi rejected calls for the ruling military council to immediately step down.

His warning came as thousands of protesters were filling Cairo’s Tahrir Square for another massive demonstration demanding the military give up power in favor of a civilian presidential council and a “national salvation” government to run the country’s affairs until a president is elected.

It was the ninth straight day of a revival of the protest movement that toppled Mubarak. At least 41 protesters have been killed in and more than 2,000 have been wounded, most of them in Cairo.

At the same time, Egyptians were preparing to vote amid the chaos. With protesters in the streets, there are fears of violence at polling stations. And the population is sharply polarized and confused over the nation’s direction.

Islamic parties are expected to dominate the election, but the political crisis casts doubt on the legitimacy of the vote and could render the parliament that emerges irrelevant.

“I am not going to vote tomorrow because everyone who is running is a thief and only cares for the seat they want to sit in,” said Abu Ahmed, a 36-year-old fruit vendor in the Mediterranean port city of Alexandria. “Many times they’ve tried to buy my vote with a bag of food or money. They know that I’m poor and they want to take advantage of me. I don’t read or write, but I know that Tantawi needs to go,” he said.

The Muslim Brotherhood, the largest and best organized political group in Egypt, is expected to dominate the elections along with its Islamist allies. The group has stayed away from the current wave of protests, careful not to do anything that would derail the vote.

However, the military has said the next parliament will have limited powers, and suggested that it will retain the right to appoint and dismiss the Cabinet. The issue promises to put the military and the Brotherhood on a collision course. A dispute between the two could destabilize the country further, adding to economic and security woes.

“The next parliament will have no power,” predicted accountant Said Younis in Tahrir. “What we want is a salvation government or even a revolutionary government.”

Heavy limitations on the next parliament undermine the very relevance of the vote. The next government will not be determined by legislators but by the head of state, which at the moment is the military, though the protesters want it to step aside. If the military clings to its status, there are likely to be stormy negotiations over the formation of a government, and the protesters will try to influence events by bringing numbers to the streets. In any case, lawmakers at best will be on the sidelines trying to make their voice heard.

The other main duty of parliament _ creating an assembly to draft the next constitution _ may also be largely out of its hands. The military has insisted on the power to name a large part of the assembly, and there is enormous pressure on all sides to form an assembly that represents all factions no matter what their proportions in the parliament.

It is not even clear how long this parliament will be in place. The multi-stage election for the two houses stretches on until March. Then, under the latest timetable put forward by the generals, the constitution must be written and approved by late June. No one has addressed the question of whether the parliament being created now could continue in place under a new constitution or whether a new election would be needed.

A high turnout in the elections, staggered over three stages scheduled to conclude in March, will likely benefit the standing of the military since the vote is a crucial part of a road map it proposed for the transfer of power.

In some ways, a high turnout could undermine the cause of the tens of thousands of anti-military protesters. A low turnout would give credence to the protesters’ claims that the vote lack relevance and legitimacy and, some contend, should wait until the military are back in the barracks.

Tantawi said the military will follow through with its somewhat vague road map for handing over power. The ruling council never set a precise date for transferring authority to an elected civilian administration, only pledging that presidential elections _ the last step in the handover process _ will be held before the end of June, 2012.

Tantawi also accused foreign powers he did not name of meddling in Egypt’s affairs.

“None of this would have happened if there were no foreign hands,” he said. “We will not allow a small minority of people who don’t understand to harm Egypt’s stability,” he said, apparently alluding to the protesters in Tahrir, epicenter of the 18-day uprising that toppled Mubarak.

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Al-Shalchi reported from Alexandria, Egypt.

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Egypt’s central bank has raised interest rates for the first time in three years. It follows months of political unrest that have led to an economic slowdown, putting the country’s currency under pressure.

The bank said in a statement posted late Thursday that its Monetary Policy Committee decided to raise the overnight deposit rate by 1 percentage point to 9.25 percent.

Also, it raised the overnight lending rate 0.5 percentage points to 10.25 percent and the 7-day repo by 0 bad credit payday advance.5 percentage points to 9.75 percent.

The Standard & Poor’s ratings agency on Thursday pushed Egypt’s sovereign credit ratings deeper into junk status, citing the country’s deteriorating fiscal situation.

Egypt’s last interest rate hike came in September 2008.

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The former chief executive of Olympus Corp. spoke with Japanese investigators Thursday, reiterating his determination to get to the bottom of one of Japan’s biggest financial scandals involving a cover-up of massive investment losses.

Michael Woodford, 51, plans to confront the board of the Japanese camera and medical equipment maker at a meeting Friday _ a day after speaking with the Tokyo District Public Prosecutors Office, the Tokyo Metropolitan Police Department and the Securities and Exchange Surveillance Commission.

Woodford, who was fired last month after questioning dubious accounting at Olympus, remains on the board and can only be removed by shareholders. He declined comment on what he was going to tell prosecutors. He returned to Japan on Wednesday.

Under intense pressure, the embattled company has admitted that a $687 million payment to an obscure Wall Street firm for financial advice and expensive acquisitions were used to cover up investment losses dating to the 1990s.

The board abruptly ousted Woodford last month for questioning the deals and payment. At the time, Olympus said Woodford was sacked because his management style was incompatible with the company’s culture.

The scandal has cast a harsh light on corporate governance in Japan, which has been repeatedly criticized as falling behind global standards. Recent media reports have also pointed to possible ties between Tokyo-based Olympus and organized crime.

A third-party panel created by Olympus to investigate its accounting has said it has so far found no evidence of any ties with the underworld.

Woodford told the throngs of media gathered at Narita International on Wednesday that he is not afraid to be back in Japan and would press for answers during his stay.

“This isn’t going to go away, the truth will come out,” he said. “Please now have the dignity, at least the dignity, to accept that the game is up.”

Woodford went public with his concerns after his sacking, and has become a hero among circles hopeful for better corporate governance in Japan payday advances.

Tsuyoshi Kikukawa resigned as president on Oct. 26 and was replaced by Shuichi Takayama. The company blamed the accounting scheme on Kikukawa, former executive vice president Hisashi Mori and ex-auditor Hideo Yamada.

Prosecutors are questioning the executives, according to Kyodo news agency.

Olympus now risks being delisted from the Tokyo Stock Exchange unless it can rectify past filings with regulators by reporting revised earnings by Dec. 14.

The company’s shares lost four-fifths of their value after the scandal erupted in mid-October, but have since recovered on optimism that Olympus will avoid removal from the stock exchange.

The issue gained 17 percent Thursday, its maximum gain allowed for a single day, to finish at 1,019 yen.

The Tokyo Stock Exchange was closed Wednesday for a national holiday. Olympus shares surged 20 percent Tuesday after the panel said it had found no evidence of links to organized crime.

The practice of hiding investment losses through funny bookkeeping and paper companies has surfaced before in Japan, especially in the 1990s, when mergers and acquisitions became a way for companies to survive in the depressed economy that followed the bursting of Japan’s real estate bubble.

Such scandals have previously ensnared other major names in Japan Inc., such as Yamaichi Securities Co., which went bankrupt in 1997, and cosmetics maker Kanebo, which was forced to undergo a government-backed bailout in 2005.

Woodford is speaking on a panel and with reporters Thursday evening, and has a press conference Friday at the Foreign Correspondents’ Club of Japan in Tokyo.

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