Friday 12 August 2016

There's finally a tiny bit of good news for the 40 million Americans with student debt



Finally, there's a least a small piece of good news about student debt.
According to the New York Federal Reserve's "Quarterly Report on Household Debt and Credit," the total student-debt load in America decreased between the first and second quarters of 2016, to $1.259 trillion from $1.261 trillion, a $2 billion decrease.
This decrease in aggregate student-loan debt is the first in this sort of debt since at least the start of 2003, the furthest back the New York Fed's data goes.
Typically, the first and third quarters see the most student-loan-debt growth since those periods include the start of the semester, but despite this trend there had always been, until now, a slight increase between the first and second quarters.
Additionally, student debt is still near historic levels — the number of people with student debt eclipsed 40 million last year, and the year-over-year increase was $97 billion — so it's not as if the ballooning debt load has suddenly turned.
Any decrease in debt loads, however, is good news for the millions of Americans holding these loans, and at the very least the drop is an interesting point to make note of.
(Business Insider/Andy Kiersz, data from NY Fed) 

Culled from Business Insider

Thursday 11 August 2016

The real reason Americans are eating out less-by Matt Egan

Many Americans are wondering: Why go out for a burger when you can grill one at home for way cheaper?

Wendy's (WEN)warned on Wednesday that the recent alarming slowdown in restaurant sales is being driven by a growing gap between the rising cost of eating out and falling prices at the grocery store.
"It's gotten a lot cheaper...to get fresh beef at your local butcher and go home and grill it," Wendy's executives said during a conference call with analysts.
Higher prices at restaurants is a side effect of higher minimum wages that have gone into effect in many states and also a healthier jobs market that has forced employers to pay their workers more. That's a good thing for Main Street, but not so for restaurants.
Wendy's sales in the last three months barely grew at 0.4% and it dimmed its sales outlook for the rest of the year. Even Shake Shack (SHAK) is experiencing a slowdown. The popular burger joint on Wednesday said its same-restaurant sales rose 4.5% last quarter, a fraction of the 13% growth from the year before.


McDonald's (MCD) is also talking about the sticker shock trend, blaming it for the fast food chain's recent stumble. "There's a value to be had for families" by eating at home, McDonald's CEO Steve Easterbrook said during a recent call.
So is this just another silly excuse executives roll out when their numbers don't meet Wall Street's expectations? Probably not. Broader data tracked by the government revealed a telling trend.
Prices of food consumed at home in June declined 1.3% from the previous year, according to the Bureau of Labor Statistics. That's the biggest 12-month decline since 2010.
Over the same timeframe, food costs away from home jumped by 2.6%.
Powered by SmartAsset.com
"There is deflation in the supermarket, making it cheaper to buy a steak there," said Hedgeye restaurant analyst Howard Penney.


So what's driving this divergence? Clearly, it's not commodity prices. Restaurants and grocery stores alike are enjoying a decline in food costs, thanks to low commodity prices. Prices for meats, poultry, fish and eggs are down for 10 straight months as is the cost of transporting them, given gasoline prices are so low.
But restaurants are having to pay more to keep workers due to the improving jobs market along with higher minimum wages. Restaurants have attempted to pass on these new expenses to customers, who in turn are experiencing sticker shock.
McDonald's alone jacked up prices 3% last quarter, a significant uptick the company blamed on "rising labor costs."
In a booming economy, these differences might not matter. But the U.S. continues to experience slow and steady growth and many Americans have yet to be rewarded with big raises.
The key will be whether Wendy's and other restaurants come up with meals tasty enough that consumers are willing to pay up. Clearly, more work is needed.
Culled from CNNMoney (New York)

Wednesday 10 August 2016

US election: Anger over Donald Trump gun rights remarks

Media captionDid Trump hint gun owners could stop Clinton?
Republican Donald Trump has sparked anger by appearing to suggest his supporters could stop his rival Hillary Clinton by exercising their gun rights.
He said that Mrs Clinton would put liberal justices on the Supreme Court if she wins the presidency in November, threatening gun ownership rights.
Speaking at a rally in North Carolina, Mr Trump hinted that gun rights advocates could stop her taking power.
That sparked an online backlash, many accusing him of inciting violence.
But his campaign team said he was actually talking about getting gun rights supporters to the ballot box to enact change politically.
The remarks that sparked the firestorm were made at a rally in Wilmington on Tuesday afternoon.
The Republican presidential nominee said of his Democratic opponent: "Hillary wants to abolish, essentially abolish the Second Amendment. By the way, and if she gets to pick her judges, nothing you can do, folks.
"But the Second Amendment people, maybe there is, I don't know."
The Second Amendment enshrines the right to bear arms in the US Constitution.
A man sitting behind Mr Trump as he made the remarks assumed a look of disbelief as he heard them.

Trump's bunker mentality - Anthony Zurcher, BBC News, Washington

Once again, Donald Trump's off-the-cuff style of speaking during his rallies has set the presidential campaign ablaze.
The Republican nominee said that gun rights advocates could do something about Mrs Clinton after she gets elected and tries to appoint judges. What could that be? His campaign's explanation that they would organise and vote simply doesn't track.
In a political environment where Trump supporters chant "lock her up", say Mrs Clinton should face a firing squad or worse, the Republican candidate's open-to-interpretation remarks likely throw gasoline onto a smouldering fire.
Americans often complain about the programmed nature of their politicians. Trump's faithful, in particular, deride polished candidates with their considered answers.
There's a reason why those seeking the presidency are exceedingly cautious about what they say. Every word is closely parsed, both in the US and around the world. A verbal misstep can be devastating.
Mr Trump ignores these rules. And as his poll numbers sink, he and his campaign are taking on a bunker mentality. The media are biased, the elections could be rigged, the polls are skewed, and Mrs Clinton is an unstable menace. It's Trump v the world.
And it's only August.

Twitter users were quick to respond to Mr Trump's comments, criticising the Republican nominee for appearing to encourage gun violence.
Connecticut Senator Chris Murphy said that "unstable people" who hate Mrs Clinton could respond.

Culled from BBC News

Tuesday 9 August 2016

NNPC Considers Crude Importation from Chad, Niger Republic for Kaduna Refinery

  • OPEC president forecasts oil price recovery in Q4 
  • Suspected militants kill three soldiers, seize military ammunition in Bayelsa
  • Seriake appoints ex-militant to battle vandalism
By Ejiofor Alike in Abuja and Emmanuel Addeh in Yenagoa


As part of the efforts to address frequent disruptions to the supply of crude oil to the Kaduna Refinery and Petrochemical Company (KRPC) as a result of the Niger Delta militancy, the Nigerian National Petroleum Corporation (NNPC) is considering importing crude oil from Chad and Niger Republic, investigations by THISDAY have revealed.
This is coming as the President of the Organisation of Petroleum Exporting Countries (OPEC) and Qatar’s Energy Minister, Mohammed Al Sada, has stated that oil prices would rebound during the third and fourth quarters of 2016.
NNPC, it was learnt, is also considering the option of using railway transportation to move crude from the Niger Delta to the refinery complex.
A top official of the NNPC, who spoke to THISDAY on the condition of anonymity, disclosed yesterday that the corporation might refit the Kaduna refinery to be able to process Nigerien and Chadian crude grades, following the incessant attacks on the pipelines that feed the plant with Nigerian Bonny Light crude.
According to him, the refinery was originally designed to process Nigerian crude and foreign heavy crude at the ratio of about 70:30.
“The original design capacity was 60,000 barrels per day of light crude. So in order to process paraffinic based crude oil from Venezuela, Kuwait or Saudi Arabia, the capacity was later increased to 110,000bpd.
“So apart from having the capacity to refine Bonny Light, the plant can also process heavy crude oil from Kuwait, Lagomar crude from Venezuela, Arabian Light from Saudi Arabia and Urals from Russia.
“But for it to refine crude from Chad or Niger, the plant requires some form of refitting so that it can use crude specification from those countries as well. The refitting does not involve complex technology,” he explained.
Spokesman of NNPC, Mr. Garuba Deen Muhammad did not respond when contacted by THISDAY, but the Public Affairs Manager of KRPC, Mr. Idris Abdullahi confirmed that the options of importing crude from Chad and Niger, as well as using rail lines were actually being considered.
“We will choose from the two options but it depends on the financial viability. The refinery had rail lines right from inception. The rail lines were used to bring in materials and equipment during its construction.
“They have never been used to transport crude to the refineries. We get crude from Warri through the pipelines. But we are now thinking of using the lines to bring in crude from the Niger Delta because of the vandalism of the pipelines.
“The second option being considered is importation from Niger and Chad. We are considering the two options and the option we will choose will depend on the viability,” Abdullahi explained.
Inadequate maintenance and vandalism of crude oil pipelines have led to the sub-optimal performance of the country’s 445,000bpd capacity refineries in Port Harcourt, Warri and Kaduna.
Barely one month after the Minister of State for Petroleum, Dr. Ibe Kachikwu, had re-commissioned the 46-km Escravos-Warri pipeline repaired by Ocean Marine Solution in April this year, thus restoring crude oil supply to Warri and Kaduna refineries, the Niger Delta Avengers (NDA), which has claimed responsibility for a series of attack on oil and gas assets, bombed the pipeline.
While Nigeria is battling with militancy in the oil-producing region, Chad is facing the dreaded Boko Haram insurgency and other security threats around its border with Nigeria, Libya and the Central African Republic.
From a production capacity of around 100,000 barrels per day in 2014, Chad had set a target to increase production from 130,000 bpd by the end of 2014 to 260,000 barrels per day in 2016 from the Mangara and Badila oilfields, which are operated by Glencore Xstrata, and another field managed by a subsidiary of China National Petroleum Corporation (CNPC).
Niger Republic had a set target of increasing production from 20,000 barrels per day to 80,000 bpd in 2016, with the country’s refinery consuming 20,000 bpd, while 60,000 bpd will be exported through Cameroun and Chad.
A Nigerian delegation had in November 2011 represented former President Goodluck Jonathan when Niger Republic inaugurated the 20,000 barrel-per-day Soraz refinery near Zinder, very close to the Nigerian border.
The refinery is 60 per cent-owned by Chinese state oil company, CNPC and 40 per cent by Niger Republic.
In a related development, the President of OPEC is forecasting that the price of crude oil will rise during the third and fourth quarters of 2016, said a statement posted on the cartel’s website.
“Expectation of higher crude oil demand in the third and fourth quarters of 2016, coupled with decrease in availability, is leading the analysts to conclude that the current bear market is only temporary, and oil price would increase during later part of 2016,” Al Sada said.
 Militants Kill Soldiers
Meanwhile, suspected militants yesterday ambushed a location of the Joint Task Force (JTF) in Nembe town, Bayelsa State, killing three soldiers and carting away several arms and ammunition belonging to the security outfit.
During the incident which occurred at about 9.30 a.m., the gunmen made away with military gunboats after they sacked the operatives of the JTF stationed at the checkpoint in the waterways of the state.
The checkpoint, it was gathered, is located at the entrance of the community and has existed since the outset of the armed agitation in the Niger Delta region.
The gunmen were reportedly disguised as mourners in order to deceive the security operatives and let out several gunshots on the unsuspecting officers, killing three instantly and injuring several others, including civilians.
Many residents of the area, it was gathered, became apprehensive when they heard the sound of gunshots which unsettled the community during the surprise attack that lasted for about 30 minutes.
The gang, which operated in several gunboats, caught the soldiers unawares and left no chance for a quick response, a source said.
A resident of the area said many people started fleeing for fear that the military might return for a reprisal attack.
“The attack was deadly and well planned. Nobody had expected that such a thing would happen at such a time when the jetties are busy with people preparing to go about their normal business activities.
“I am sure even the soldiers did not expect this to happen at that time. Some persons who were already sailing out of Nembe said they saw the gunmen but dismissed them as mourners because they were dressed in white robes,” he said.
The source further said that following the incident, some residents in Nembe fled the community while others locked themselves indoors following widespread fears of a reprisal.
It was learnt that the incident occurred at the same military checkpoint where five soldiers were shot dead and heavy guns carted away in November last year.
Officials of the state government were said to have sent a delegation to the area while the JTF deployed more men to the scene and on the trail of the violent gang.
A statement later yesterday by the acting spokesman of the JTF, Lieutenant Commander A. Ahmed, said the security operatives vowed to go on the offensive against the suspects.
 “Some suspected gunmen believed to be militants at about 10 a.m. on 8th of August 2016 attacked the 343 Artillery Regiment, a detachment of Operation Delta Safe deployed in the Nembe jetty in Bayelsa State.
“During the incident, three soldiers lost their lives.  The commander of Operation Delta Safe, Rear Admiral Joseph Okojie, has consequently deployed a reinforcement team to apprehend the perpetrators of this heinous crime.
“He further warned that henceforth, Operation Delta Safe will go on the offensive to fish out all criminals in the region.
“It should be noted that the attack by militants was as a result of the ongoing operations of the Joint Task Force, Operation Delta Safe, aimed at flushing out all forms of criminality, especially pipeline vandalism and the destruction of illegal refineries within the region.
“The command wishes to assure the law abiding public, particularly the Nembe community that Operation Delta Safe is mandated to ensure conducive and safe water ways for legitimate businesses in the joint operation areas”, the statement said.
Ex-militant Picked to Battle Vandalism
However, before yesterday’s attack at the Nembe creek, the Bayelsa State Government at the weekend began the implementation of its new strategy to end the menace of militancy, pipeline vandalism, pirate attacks, kidnappings and other criminal activities along the waterways and creeks of the state.
The governor of the state, Mr. Seriake Dickson, inaugurated a former militant leader, Mr. Africanus Ukparasia, popularly known as ‘General’ Africa, as the chairman of the state Waterway Security Taskforce.
At the inaugural ceremony, which reportedly took place at the Banquet Hall, Yenagoa, Dickson mandated the taskforce to provide the security agencies with the required intelligence to deal with criminals.
The ceremony which later moved to Africa’s home attracted youths and leaders from different parts of the state, including the state chairman of the All Progressives Congress (APC), Chief Tiwe Oruminighe and the state secretary of the party, Mr. Marlin Daniel.
In his remarks, Africa assured the government of adequate security and intelligence gathering along the waterways of the state. He said criminals would no longer be allowed to take over the waterways to kill innocent people and subject travellers and traders to untold hardship.
He warned sea robbers and other criminals operating in the state to leave the creeks or face tough times. Speaking on the choice of Africa, Oruminighe hailed Dickson for the appointment and said though the ex-militant leader is a member of APC, matters of security cut across party lines.
He said Dickson, a member of the Peoples Democratic Party (PDP), recently visited Buhari to seek ways of solving the Niger Delta problem.

Culled from Thisday