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Iranian billionaire Babak Zanjani sentenced to death for corruption

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Iranian billionaire ... Babak Zanjani has been sentenced to death for corruption.

IRANIAN billionaire businessman Babak Zanjani has been sentenced to death for fraudulently pocketing $US2.8 billion.

Zanjani, 41, became notorious during the era of president Mahmoud Ahmadinejad, finding ways to channel hard currency to Tehran despite financial sanctions imposed on the Islamic republic’s banks as punishment for its nuclear program.

Zanjani was convicted of fraud and economic crimes after a trial.

As well as facing the death penalty, he must pay money to the state in restitution, judiciary spokesman Gholam Hossein Mohseni-Ejeie said at his weekly press conference.

The trial was held in public, a rarity for such a major case in Iran, and two other accused were also convicted of “corruption on earth”, the most serious offence under the country’s criminal code, meaning they too will face the death penalty.

“The preliminary court has sentenced these three defendants to be executed, as well as paying restitution to the plaintiff,” Mohseni-Ejeie said, adding that that was the oil ministry.

They must also pay a “fine equal to one fourth of the money that was laundered”, the spokesman said, without specifying the sum.

Zanjani, who can appeal, had denied any wrongdoing, insisting that the only reason the money had not been paid to the oil ministry was that sanctions had prevented a planned transfer from taking place.

Thrived ... Babak Zanjani became notorious during the presidency of Mahmoud Ahmadinejad (pictured). Picture: AP Photo/Eraldo Peres

Thrived ... Babak Zanjani became notorious during the presidency of Mahmoud Ahmadinejad (pictured).

However, the case follows repeated declarations from the current government of President Hassan Rouhani that corruption and the payment of illegal commissions thrived under Ahmadinejad’s rule. Other trials are ongoing.

Zanjani had repeatedly said in media interviews that in return for commissions paid by Ahmadinejad’s government he was tasked with circumventing sanctions to get money back to Iran.

In October last year, however, Rouhani’s oil minister Bijan Zanganeh signalled the shifting political balance in Iran, hitting out at the use of middlemen such as Zanjani, who before being arrested had boasted of his personal wealth. Iranian media have put it as high as $US13.5 billion.

Current leader ... the administration of President Hassan Rouhani (pictured) claims corruption thrived under Ahmadinejad’s rule. Picture: Iranian Presidency Office via AP

Current leader ... the administration of President Hassan Rouhani (pictured) claims corruption thrived under Ahmadinejad’s rule. Picture: Iranian Presidency Office via APSource:AP

Speaking after Iran concluded a nuclear deal with world powers, paving the way for increased foreign activity in Iran’s oil sector, Zanganeh urged investors to deal directly with his ministry and avoid third parties.

“We despise the corrupt parasites that want to suck the nation’s blood even in this situation,” Zanganeh said, to loud applause at an oil and energy industry event in the capital while Zanjani’s trial was under way.

“I recommend foreign companies stay away from these corrupt individuals, who know nothing but deceitfulness. They will tell you that until you give us our commission you can’t get your work done. Don’t believe them.”

Zanjani was among Iranian individuals black-listed under US and European sanctions.

20 Things You Should Know About Social Security

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Old Woman PixabayWinston Churchill once described Soviet Russia as "a riddle, wrapped in a mystery, inside an enigma." While that was a politically motivated statement, it may also aptly described Social Security, the federal program designed to provide financial support to our nation's workers in retirement.

Much of the Social Security program remains a mystery to the American public, both working and retired; and if the American public doesn't understand how the program can help them, they'll be unable to take full advantage of its benefits. An AARP survey of financial advisors last year showed that just 1% believed their clients were "very knowledgeable" about Social Security.

With this in mind, let's take a closer look at 20 things you should know about Social Security.

1. It's been paying out benefits for decades: The Social Security Act was first signed into law by President Franklin D. Roosevelt on Aug. 14, 1935, with payroll taxes first collected in 1937 and monthly benefits beginning in January 1940. The program's been paying out benefits for more than 75 years, and it'll continue to pay out benefits for decades to come. Between 1937 and 2009 the program paid out a cumulative $11.3 trillion.

2. It only invests in guaranteed assets: The money held by the Social Security Trust Funds is invested, but only in securities with guaranteed principal and interest. This pretty much limits investments to short- and long-term U.S. Treasuries and special obligation securities issued only to federal trust funds.

3. Both you and your employer are paying into Social Security: Social Security is funded through the payroll tax, which currently sits at 12.4%. You and your employer each pay half of that -- 6.2% of your wages. Self-employed people are responsible for paying all 12.4%.

4. There's a payroll tax cap: The aforementioned 12.4% payroll tax is collected on income up to $118,500 as of 2016. Every dollar earned above and beyond $118,500 is free and clear of the payroll tax.

Worker Pixabay
You have to work to earn lifetime benefits.

5. It's not exactly an entitlement: Social Security covers 94% of American workers, but in order to qualify, a worker will need to collect 40 "work credits" over their lifetime. A maximum of four work credits can be earned each year, with one work credit equating to $1,260 in 2016. Thus, $5,040 in income in 2016 would max out your work credits for the year. Some exceptions for younger workers who become disabled or pass away may apply.

6. It covers more than just workers: Social Security is best known for covering retirees, but it also provides benefits to some workers' spouses and their qualified children, as well as to the disabled, and to eligible family members of deceased workers. Nearly 60 million people received a Social Security benefit payment in December 2015, 40 million of whom were retired workers.

7. Here's about how much of your prior salary the benefits cover: According to the Social Security Administration, benefits paid are designed to replace about 40% of a worker's income during retirement. Based on data from the SSA, this figure is currently closer to 55% for low-income earners, and 27% for maximum earners.

8. You can claim benefits earlier ...: Retirees are eligible to file for benefits as early as age 62, as late as age 70, and anywhere in between.

9. ... But you probably shouldn't, because benefits grow over time: The longer an individual waits to file for benefits, the more their benefits will increase in value. On average, for every year an eligible individual holds off on filing for benefits, their benefit amount will increase by 8%.

10. The full retirement age isn't static: The full retirement age, or FRA, is the level at which an eligible beneficiary can start taking 100% of their calculated benefit. However, the FRA is a moving target: It's changing based on the year you were born. Currently, the FRA is 66 years, but it'll be rising by two months each year for Americans born between 1955 and 1959, officially hitting 67 for those born in 1960 and later. Individuals claiming after their FRA could receive in excess of 100% of their benefit.

Senior Citizen
When you file for benefits matters.

11. There's no minimum benefit: It takes at least 10 years for a worker to qualify for lifetime Social Security benefits, but there's no minimum benefit they'll be eligible for. If a worker earns very little over their lifetime, their monthly benefit payment might be less than $100.

12. There is, however, a maximum benefit: On the flip side, regardless of how much you make during your lifetime, the maximum monthly benefit a worker retiring at full retirement age can expect in 2016 is $2,639 per month. That's actually $24 less than 2015 levels, due to an unusual combination of events: A dip in the Consumer Price Index meant there was no cost of living adjustment (see item 15), while the national average wage index (which is used to calculate SSI benefits) rose.

13. The average retiree's monthly benefit payment is ... :  According to data from January 2016, retired workers were receiving an average of $1,341 per month, or about $16,100 per year. Married couples who are both receiving benefits averaged $2,212 a month, or about $26,500 per year.

14. How long you work matters: The Social Security Administration determines your benefit by averaging your annual income over your highest-earning 35 years of work. If you worked fewer than 35 years, the SSA will average in goose eggs (i.e., $0) for each year below 35 that you didn't work, potentially reducing your benefit by a sizable amount.

15. COLA helps you keep up: The SSA typically adjusts benefits annually to keep them in step with inflation – this is known as a cost-of-living adjustment, or COLA. The indicator that determines COLA is the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. In 2016, the CPI-W fell, so no inflationary increase was awarded to beneficiaries.

16. Mulligans do exist: Regret filing for benefits at an early age? There's actually a solution. Form SSA-521, also known as "Request for Withdrawal of Application," allows filers to take a mulligan -- but they can only do this within the first 12 months after filing for benefits. They also have to pay back every cent of the benefits received after they filed. But by doing this, their request for benefits will be undone, and their benefits will again be allowed to grow.

Retirement Pixabay
Don't get too reliant on Social Security income.

17. There's a cash shortfall on the horizon: What Soical Security takes in from payroll taxes stopped being enough to cover what it pays out some years ago. And, according to the latest Trustees' report, the Old-Age, Survivors and Disability Insurance Trust (OASDI) that covers the difference is projected to burn through its reserves by 2035. This does not mean the program is going bankrupt, but it could mean benefit cuts, tax increases, or some combination of the two are coming.

18. Blame demographic shifts for the cash shortfall: Two demographic shifts are responsible for the ongoing depletion of the OASDI. First, baby boomers are retiring in greater numbers and there simply aren't enough new workers to take their places. As the worker-to-beneficiary ratio fell, the cash inflow turned into a cash outflow. Secondly, people are living longer than ever, meaning retirees are, on average, drawing down on the Trust for more years.

19. It's actually a very efficient program: As noted last year, the SSA is administered with exceptionally low overhead. The program paid out nearly $840 billion in benefits in 2014; that year, its expenditures totaled a mere $5.6 billion, or 0.7% of total benefits paid.

20. Your Social Security number says something about your past (but new ones won't): Lastly, prior to June 2011 Social Security numbers (SSNs) were doled out partially based on geography. The first three digits were assigned based on the geographic region you were living in when the number was assigned, with lower numbers on the East Coast and higher numbers as you moved West. The remaining six digits were random. Beginning June 25, 2011, the entire process of SSN assignment became randomized.  And no, the program does not reuse SSNs after the people assigned them pass away. You truly are unique!

The $15,978 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.

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Tesla Motor’s CPO Inventory Grows Offering Lower Cost and Faster Delivery

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Tesla Motors Inc (NASDAQ:TSLA) has a reputation for making people wait to buy one of their luxury EVs. The wait time for those with deposits on the Model X alone is reported to be well over a year. That’s a long time to wait when you want your car now. However, for Tesla fans who are inclined towards luxury and have time, money and patience, this seems an acceptable cost to endure.

Model S Tesla Motors Inc insane mode

But what if you wanted a Tesla EV without having to deal with the long waiting processes or the hefty price tags? Well, for those eager to find themselves behind the driving seat of a Model S, there is Tesla’s certified pre-owned (CPO) program.

The CPO program is one solution for those willing to invest in a Model S but would prefer not to pay full-price or wait for the delivery of a new one. It also allows the company to regulate the steadily growing market of used Model Ss. The program was launched in April of 2015 and has been working well for the company and for buyers ever since.

However, one might ask: What’s the point of investing in a used Tesla?  The benefits of a used Tesla Model S...

The CPO program is managed by the same company that makes the cars that are sold through the program. This shouldn’t be surprising if you consider Tesla’s stance on dealerships. But there are many other conveniences that come along with the Tesla CPO Program.

First, Tesla Motors probably doesn’t like having used cars in its inventory as much as any manufacturer. However, if there is a market for them out there and they have be sold, the company would prefer to have this done properly under its own care and supervision. This allows the EV giant to ensure that the Tesla brand and the care of its used vehicles is identical to that of a new EV purchase. Buying a pre-owned Model S doesn’t have buyers worried about fending off used car salespeople.

Buyers don’t have to worry about the quality of the car. Tesla clearly understands the delicate state of its brand. Having defective luxury EVs out on the roads would hurt the company far more than a quick buck could repair.

A pre-owned Model S is understandably less expensive than a new one. In fact, some sold for as little as $46,000 in 2015. The Tesla Motors Inc (NASDAQ:TSLA) website currently offers used EVs for as low as $60,000, depending on the model and mileage. In an ideal market, this is all anyone seeking to buy a pre-owned Tesla should concern themselves with: price and mileage.Related...   Tesla Motors Inc (TSLA) Q4 and 2015 Earnings: What To Watch For

Perhaps the best pro about making a purchase through Tesla’s CPO program is that it allows buyers to jump the queue. There are no lengthy waiting processes when getting a used Tesla Model S. Buyers of the pre-owned EVs report the process to be quick and effortless.

“They were great people who worked hard to get us everything we needed to complete the purchase,” reports one buyer. “Not only did we arrive to find our new Tesla wrapped in a bow, but [they] spent two hours answering every question we had — and we had a lot.”

Shorter delivery times offer a huge bonus for CPO buyers. It is well known that the time between buying a new Tesla Model S and its actual delivery spans months or even years. The mentioned buyer got his pre-owned Tesla, with just over 7000 miles on the clock, in only a faction of that time. “We had ours in less than a week,” he happily reported.

Key things to know

The are number of things to consider when looking to get a CPO Tesla. Although CPO inventory is continuing to grow, a Model S with the exact you’d like may be hard to find through the program. This means that the chance to get a car equipped with the tech seen in later Model S vehicles comes very rarely. It is difficult to find a CPO Model S fitted with Tesla’s Autopilot or Summon tech. However, though they are rare, many buyers can strike gold and end up driving away with newer pre-owned models.

When the program launched, used Teslas were available only in the Los Angeles, San Francisco and Pennsylvania areas.  Today you can find CPO vehicles in Atlanta, Chicago, Florida, Hawaii, Los Angeles, Missouri, New England, New York, Ohio, Orange County, Pennsylvania, Rocky Mountain Region, San Francisco, Seattle and Washington DC.

Another unfortunate but important fact to take note of is that some tax benefits do not apply to used Tesla buyers. CPO buyers do not qualify for the $7500 federal tax benefit.

Only the Tesla Model S is available on the CPO program at this time. This is understandable considering that Model X deliveries only began a very short while ago. Those interested in getting a certified pre-owned Tesla can visit the company’s website. Tesla Motors Inc (NASDAQ:TSLA) CPO lease payments assume a 36 month, 10,000 mile per year lease. They come with no security deposit. 12,000 and 15,000 mile per year leases are also available.

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Top Chinese Official Refutes Soros Prediction for Hard Landing

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China will avoid the kind of hard landing predicted by the likes of billionaire investor George Soros as policy makers still have enough tools to maintain reasonable growth as they seek to overhaul the world’s second-largest economy, the country’s top economic planner said.

QuickTake China’s Pain Points

The Asian nation’s economy will expand by at least 6.5 percent annually for the next five years, after growth of 6.9 percent last year, the slowest pace in a quarter century. The latest forecasts were delivered by Premier Li Keqiang in a work report Saturday at the start of the annual full session of the National People’s Congress. The government will increase its deficit as it shells out more funds to underpin growth and buffer the effects of job cuts in bloated state-run enterprises, Li said.

“China’s economy absolutely will not have a hard landing, the so called hard-landing predictions are bound to fall through,” said Xu Shaoshi, chairman of the National Development and Reform Commission, said Sunday at a press conference in Beijing when asked about recent remarks by Soros.

The economy is facing headwinds, and risks such as declining government revenue, falling prices for industrial commodities and declines in corporate profit “should not be under-estimated,” Xu said. Global factors from financial market fluctuations to geopolitical risk may also impact growth, he said.

Despite the risks, China is achieving its planned rebalance from investment and manufacturing-driven growth to a model based on expanding services and consumer spending, with new businesses and sectors growing rapidly, he said. China will use macro-economic measures to boost consumption, pursue a stable level of foreign trade, and increase effective investment to carry out the economic restructuring, Xu said.

China remains an engine for global growth and is not exporting its slowdown and market volatility as some have said, according to Xu. China accounted for about 15 percent of the world’s $73 trillion economy, compared with 24 percent for the United States.

Rising volumes of Chinese imports especially of commodities from crude oil to iron ore and fertilizers, as well as a 14.7 percent increase in non-financial foreign direct investment last year, are also positive for global growth, Xu said.

“There is no justification to the argument that China’s economy is weighing down the global economy,” said Xu. The theory that fluctuations in China’s stock and currency markets in January subsequently led to volatility in U.S. and European stock markets “overestimate China’s capabilities; China does not have such a big spillover effect,” he said.

As part of its structural reform, China’s overhaul of state-owned enterprises and reduction of overcapacity in industries from iron and steel to coal production will not lead to massive layoffs, as local governments and companies have come up with various ways to cushion the blow, Xu said. China has set aside 100 billion yuan ($15 billion) to help displaced workers at state-owned enterprises, Li said in his work report.

In the last round of SOE reforms by then-premier Zhu Rongji following slower expansion in the 1990s, some 60,000 firms were closed and 40 million workers lost their jobs, according to government data.

Another difficult reform is smoothing out imbalances in the property market, he said. Home prices in first-and second-tier cities are rising at a relatively rapid pace, while lower-level cities face a glut of unsold homes.

China has already cut taxes on home transactions and eased mortgage down payment requirements to support the property market. Its commercial housing stockpile stood at 719 million square meters by the end of last year, Xu said. The government will encourage migrant workers to settle in urban areas to digest existing homes, while curbing unreasonable, speculative demand that drives up prices in big cities.

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Denver company lands on Fortune’s 100 ‘Best Companies to Work For’ list

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DENVER BUSINESS JOURNAL - Just one Colorado-based company was named among Fortune's annual "100 Best Companies to Work For" list, released Thursday by the New York-based magazine.

PCL Construction, a privately-owned Denver-based construction contracting firm, holds the No. 60 spot on the list, up from 2015 when it was ranked 67th. This is the 11th straight year the company made the list.

"Over 700 building projects can be taking place all at once, ranging from office towers and condominiums to bridges, airports and petrochemical plants. Yet, PCL maintains a safety record 5 times better than the national average of its industry," Fortune says in its list.

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Chesapeake’s McClendon to be honored in Oklahoma waterfront ceremony

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A makeshift memorial to former Chesapeake Energy CEO Aubrey McClendon is seen at the site of his fatal automobile accident, which happened one day after a federal indictment against him, in Oklahoma City, Oklahoma March 3, 2016.  REUTERS/Heide Brandes        Thomson ReutersA makeshift memorial to former Chesapeake Energy CEO Aubrey McClendon is seen at the site of his fatal automobile accident in Oklahoma City, OklahomaBy Heide Brandes

OKLAHOMA CITY (Reuters) - Friends, family and employees of Aubrey McClendon will gather on Oklahoma City's riverfront on Saturday to pay respects to the U.S. energy entrepreneur, a hometown hero who died this week in a car crash, a day after his indictment on bid-rigging charges.

Hundreds of people were expected to gather at dawn in Oklahoma City's Boathouse District, a recreation area along that river that McClendon helped develop after founding Chesapeake Energy Corp in 1989 and turning it into one of the leaders of the U.S. fracking boom.

The ceremonial "paddle out" by rowers and paddlers on the Oklahoma River will take place before a more formal public memorial service for McClendon on Monday at Crossings Community Church.

Oklahoma City has long celebrated McClendon for helping revive the state's moribund economy with an oil and gas frenzy that transformed it from a sleepy backwater to a vibrant urban center. He invested in restaurants and brought the National Basketball Association's Thunder franchise to Oklahoma City from Seattle, where the team was known as the Supersonics.

"He did so much for Oklahoma City and Arcadia," Dusty Ward of suburban Arcadia said while visiting a roadside shrine strewn with flowers, wooden crosses, and an oil driller's hard hat near the site of the single-car crash that killed McClendon, 56, on Wednesday. "I always felt a connection to him even though I didn't know him well."

Mike Knopp, head of the Oklahoma City Boathouse Foundation, said McClendon brought the city more than financial gifts.

"Aubrey influenced our way of thinking, believing we could be world-class and inspiring us all to carry it out," Knopp aid in a statement.

But McClendon was not without controversy. He was known for lavish spending and making risky bets worth billions of dollars on vast tracts of land that could potentially be drilled for oil and natural gas.

In 2013, he was ousted from Chesapeake, the company he co-founded at age 29 and turned into the No. 2 U.S. natural gas producer, after a corporate governance crisis and revelations that he had personal stakes in wells owned by Chesapeake.

McClendon soon bounced back and raised billions of dollars by setting up a new company, American Energy Partners.

But there were nagging legal woes.

The day before his Chevy Tahoe slammed into a cement wall in an accident police are still investigating, McClendon was indicted by the U.S. Department of Justice on allegations of violating antitrust rules by rigging bids for land. He denied the charges.

Forbes once put him on the cover of its magazine, calling him "America's Most Reckless Billionaire."

Jim Dean of Apex Remington Pipe and Supply, which did business with American Energy, visited the makeshift memorial at the crash site on Thursday.

"The guy had done so much for the state, the oil field and the city," Dean said. "I wanted to come and show my respect."

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Week Ahead In FX – ECB Aggressive Easing Expected After NFP Miss

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US Employment Expanded But Hourly Wages Contracted Deflating USD

The U.S. non farm payrolls (NFP) report for February painted a mixed picture of U.S. employment. The American economy added 242,000 jobs, far exceeding expectations of around 195,000; the unemployment rate remained unchanged at 4.9%, the lowest level in 8 years. The big miss on Friday was on wage growth. Hourly wages in the U.S. decreased 0.12 percent once again putting the possibility of a March Federal Open Market Committee (FOMC) rate hike off the table. Last month it was the opposite scenario with a miss on the headline jobs number but a surprise rise in hourly wages. The NFP headline growth had more of a mid to long-term effect as the June and September FOMC remain candidates for an interest rate raise.

Two central banks will return to action after skipping February. The European Central Bank (ECB) and the Bank of Canada (BoC) are due to deliver benchmark interest rate statements. The Canadian central bank is expected to hold rates at all-time low of 0.50 percent on Wednesday, March 9 at 10:00 am EST. The BoC was proactive in 2015 with two rate cuts, but has now shifted some of the burden of steering the economy to the government. The Federal budget has been promised to contain significant stimulus and will be unveiled on March 22.

The ECB on the other hand is expected to use monetary policy in an effort to boost European growth. After the communication failure in the December ECB monetary policy meeting, the market was disappointed as the central bank's President Mario Draghi had hinted at a larger stimulus while the final outcome appeared to make some compromises to EU members. The ECB will publish its minimum bid rate on Thursday, March 10 at 7:45 am EST. The forecast calls for a 10 basis points cut and a growing possibility of expanding its quantitative easing (QE) program. Mr. Draghi will appear at a press conference at 8:30 am EST on Thursday.

ECB Could Over-Deliver After December Lesson

The ECB is looking to put the fiasco of the December policy meeting behind and analysts expect a mix of easing measures on March 10. The almost foregone conclusion is a 10 basis point cut, leaving the benchmark interest rate deeper into negative territory; some analysts are calling for a 20 basis point cut that would leave the rate at -0.50 percent. An increment to the QE program in the range of 10 to 20 billion euros and an extension of the program have divided opinions.

The global market slowdown has forced the ECB to keep easing to achieve growth. Lower commodity prices have kept the threat of deflation looming over members of the European Union. The ECB has now entered the uncharted waters of Negative Interest Rate Policy (NIRP) in an effort to use unconventional monetary policy tools as it struggles to unite the diverse membership of the union.

The changing economic conditions have affected all central banks and FX prices have reacted accordingly. The U.S. Federal Reserve made a historic rate hike in December only to see fundamentals worsen, and now a follow up rate hike is in doubt this year. Friday's US NFP disappointed on wage growth even though there was a massive gain in the new number of jobs over those expected by economists. The USD has been sold off as the interest rate differential priced in at the end of 2015 might not materialize. A stronger EUR has added to the woes of the ECB as imports are cheaper which come with deflationary implications and exports lose their appeal.

The market will be awaiting an aggressive ECB, and the EUR/USD will be following the final monetary policy decision and President Mario Draghi's press conference.

BOC to be Pleased with Canadian Fundamentals and Oil Price Stability

The Bank of Canada (BoC) was put on the spot in January as energy prices tumbled as supply was at a record high and the sanctions on Iran were lifted. The Canadian dollar has been highly correlated to oil shocks and in the first two months of the year, it was tied at the hip with oil prices. The central bank instead opted to wait for the release of the Government's budget. The Liberal party won the elections last year with a promise to boost spending in infrastructure to stimulate growth and diversity in the economy from its resource dependency. The budget will be released on March 22 and market watchers anticipate the BoC will stick to the script and wait for the imminent arrival of the Federal budget.

Oil prices are stable after the Organization of the Petroleum Exporting Countries (OPEC) members (minus Iran) and Russia are planning a summit later this month to discuss a potential output freeze. All things considered, the world will continue to be awash in the black stuff after Iran ups its production, but the effort from producers to stop the oil price decline appears to be working. Given how hard it was to get producers to agree to discuss the freeze it would not be a shock if it all ends badly.

Canadian data has made the loonie stronger versus the USD. Canadian exports rose for a third consecutive month in January. The 1 percent rise in exports made the Trade deficit lower than expected. The non-resource nature of the growth in exports (consumer goods and vehicles) boosted the CAD as it validates the words of the BoC ahead of its rate statement on Wednesday.

FX Market events to watch this week:

Monday, March 7
Tentative CNY Trade Balance
Wednesday, March 9
4:30am GBP Manufacturing Production m/m
10:00am CAD BOC Rate Statement
10:30am USD Crude Oil Inventories
3:00pm NZD RBNZ Rate Statement
3:05pm NZD RBNZ Press Conference
8:30pm CNY CPI y/y
Thursday, March 10
7:45am EUR Minimum Bid Rate
8:30am EUR ECB Press Conference

8:30am USD Unemployment Claims
4:15pm CAD BOC Gov Poloz Speaks
Friday, March 11
8:30am CAD Employment Change

*All times EST

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How the presidential candidates would change Social Security

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Social Security hasn't yet emerged as a major presidential-campaign issue. Some leading candidates haven't discussed this issue in much detail.

With the number of serious presidential candidates thinning out and the election drawing closer, it's getting a bit easier to see where the main contenders stand on Social Security.

The nation's retirement-income program hasn't emerged as a dominant election issue, but some of the candidates have articulated what they expect of the program, how they might change benefits or taxes or take other measures to shore up the program's long-term solvency. Here's how leading candidates view Social Security, based mainly on positions articulated on each contender's website at the start of March:

Hillary Clinton: Mostly more of the same

Clinton largely wants to maintain the current system. There's a pledge to preserve Social Security for future generations by "asking" the wealthiest to contribute more. Her website doesn't provide many details on how much more in taxes would be paid by wealthier Americans. Clinton also would like to expand benefits for widows and for people who took time out to care for kids or sick family members, which would help women in particular.

Her position on Social Security is mostly a defensive one: Oppose cuts in cost-of-living adjustments. Oppose efforts to raise the retirement age (which ranges from 66 to 67 for most people currently employed) and oppose benefit cuts or broad tax increases. Clinton also stands against efforts to privatize the system or "attempts to gamble seniors' retirement security on the stock market."

Bernie Sanders: Significant expansion

Sanders describes Social Security as the most successful federal government program ever, and he would extend its reach. Sanders wants to increase benefits by an average of $65 a month, augment cost-of-living adjustments or COLAs and increase the minimum benefits for low-income seniors. To pay for all this, and to keep the program solvent another 50 years, Sanders would raise the amount of earnings subject to payroll taxes that support Social Security. Currently, the tax stops above $118,500 a year in personal income, but he would also tax income above $250,000. His website doesn't spell out what tax rate, if any, would apply on income between $118,500 and $250,000.

Sanders opposes efforts to privatize the program or allow workers to choose investments. He notes that Social Security's current (but dwindling) surplus is invested in U.S. Treasury bonds, which he calls the "safest interest-bearing securities in the world." It doesn't say that those bonds are backed by future tax revenue and federal borrowings rather than by stocks, real estate or other assets. Sanders wants to keep the private sector out of Social Security. "Corporations destroyed the retirement dreams of millions over the past 30 years by eliminating defined-benefit pension plans," the website says. "Millions of Americans lost their life savings after Wall Street's recklessness crashed the economy in 2008."

Donald Trump: Few specifics yet

Donald Trump has vaulted to the top of the Republican leader board without talking much about Social Security, which might not be a coincidence. Social Security reform is a thorny, divisive issue. Candidates can't take a strong position without alienating many voters.

Trump's website focuses on five key positions and briefly discusses about a dozen other issues, but Social Security isn't among them. One of his five key positions involves cutting income taxes and simplifying the tax code. Trump also vows to create more jobs if elected president. An expanding economy would generate more payroll-tax revenue to support Social Security, but that's not the same as tackling the issue head-on. Some media reports indicate Trump wants to preserve the program without reducing benefits or raising the retirement age, but we won't know specifics until he discusses Social Security in detail.

Other Republicans: Mixed bag

The GOP candidates trailing Trump offer various viewpoints. Ted Cruz's website doesn't spend much time on Social Security, though he does offer some bold tax proposals ranging from abolishing the Internal Revenue Service to simplifying the income-tax code with a flat tax. John Kasich considers Social Security in need of fundamental financial reform, and if elected president he vows to lead a bipartisan effort to find solutions to shore up the program.

Marco Rubio has one of the more clearly defined Social Security platforms. He vows to make no changes affecting people in or near retirement but wants to increase the retirement age gradually to reflect longer life expectancy. Rubio also would slow the growth rate of benefits for wealthier seniors and abolish the retirement earnings test, which he said discourages seniors from working without addressing Social Security's solvency. (This test withholds some benefits for younger seniors below normal retirement age who continue to work and earn too much money, though they receive the withheld benefits later.)

Rubio also would open up the federal Thrift Savings Plans to non-government workers. This program resembles a 401(k) program that, notably, features an assortment of stock and bond mutual funds —  not just government bonds of the type held by Social Security.

Social Security: Where it stands

Politicians have a long history of kicking the can down the road when it comes to Social Security reform, and this election year is proving no exception. Social Security faces economic pressures that require a political solution, but this hasn’t emerged as a major issue yet in the 2016 presidential campaign.

Program overview: Social Security is the main or only source of retirement income for millions of Americans. Some 48 million people received retirement benefits in 2014, in addition to nearly 11 million who got disability-insurance payments. Also, nearly 54 million had health coverage through Medicare, which faces its own funding problems. Social Security is widely credited with lifting millions of seniors out of poverty.

The problem: The retirement portion of Social Security is projected to run out of money eventually, meaning the system will have enough money to pay some but not all promised benefits — roughly three-fourths. Social Security’s trustees expect this to happen around 2034 or so. Social Security has built up a surplus, but this is gradually being depleted as more Baby Boomers retire.

At any rate, the surplus is held in the form of Treasury bonds, which are pledges of the federal government, supported by tax revenue and future borrowings – not the sort of tangible assets like stocks or real estate that most of us think of when we envision a nest egg. Social Security is a pay-as-you-go system in which current workers pay taxes and the money gets funneled to retirees. As the nation ages, fewer workers are paying taxes to support each retiree.

Possible solutions: As with any budget problem, there are basically two fixes: Either raise income or reduce expenses (or do both). On the expense side, possible solutions include reducing benefits (for everyone or just wealthier seniors) and raising the age at which full benefits are paid. This latter possibility has a basis in logic, since Americans now live much longer on average than when Social Security was established in the 1930s. On the revenue side, one prominent proposal is to raise taxes by expanding the amount of earnings subject to Social Security taxes – currently, payroll taxes apply on up to $118,500 in annual wages, then stop. 

Tangential issues: Social Security was never intended as the only source of retirement income, but it has become that for millions of Americans. Many more people could depend on it entirely in the future, reflecting low personal rates of savings, a decline in the nation’s homeownership rate and a reduction in the availability of employer-sponsored pension plans. An interesting political debate focuses on whether workers should be allowed to divert some of their Social Security assets into investments offering potentially higher returns, such as stocks or non-government bonds. Currently, the Social Security surplus is held in Treasury bonds only.

Question of timing: While 2034 might seem like a long time away, Social Security’s trustees are urging politicians to address the problem now. “Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare,” they say.

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ES Morning Update March 4th 2016

c9c65d39-fed8-44b3-8eeb-ffe7681d6afbFalse breakout of rising wedge is putting in a topping tail candle.

MACD's look ready to fall

I'm going to keep it real simple as there's not much to add here today that wasn't said on yesterday's morning update, and added upon in the chatroom. I'm looking for a pullback to the 1930's area and that should happen into next week.  We have the Thursday/Friday low that's common every 2nd week of each month.  Charts are ripe now for this pullback as I'm sure there's not many bears left alive and if they are they've flipped to bulls now.  The Bus is overloaded again with bulls, and a flat tire should happen soon and stop them for a week.

The Non-Farm Payroll report number was 242,000 and the futures spiked higher from it.  I think it's a sell near the open or within the first hour at tops.  While I not expecting some huge move down today I do think we'll start drifting down and continue into next week (with bounces of course), putting in the high today and ending this rally up from the 1800's low.

Light named U-T publisher as Tribune shifts leadership

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Jeff Light, editor of The San Diego Union-Tribune, will also direct the company’s business operations as publisher, Tribune Publishing Co. announced Wednesday in a management overhaul of its nine major news outlets.

The promotion is part of Tribune’s new strategy that combines the traditional roles of editor and publisher, with chief editors taking over publishing duties at all of the company’s news outlets, including the Los Angeles Times.Jeff Light

“By giving our newsroom leaders dual responsibilities, we are ensuring our local brands remain vital to the communities they serve with our journalists and creators producing premium, compelling content across all mediums,” said Justin Dearborn, Tribune’s chief executive, in a prepared statement released Wednesday morning.

Dearborn promoted Tim Ryan to president of publishing, with overall responsibility for each of the company’s regional media operations. Ryan had been publisher and chief executive of the California News Group, which operates the Union-Tribune and L.A. Times, along with a host of weekly newspapers in the region.

Light, 55, came to the Union-Tribune in 2010 after serving as vice president for interactive publishing at The Orange County Register. Since his arrival in San Diego, he has overseen various initiatives in the newsroom, bringing in talent to redesign the print and digital editions. He also has emphasized multimedia innovation and product development.

He becomes the fifth publisher of the Union-Tribune since David Copley sold the newspaper to an investment firm in 2009. Light was preceded as publisher by Ryan, Austin Beutner, Douglas Manchester and Edward Moss.

In Los Angeles, Times editor-in-chief Davan Maharaj will assume publishing duties as well, Tribune Publishing officials said Wednesday.

It’s not unusual for former editors to oversee advertising and other business operations at large newspapers. For example, Dow Jones & Co., the News Corp. unit that owns the Wall Street Journal, has employed former editors as chief executives for much of its history.

However, the roles of publisher and editor historically have been kept structurally separate at major newspapers, chiefly to prevent advertising relationships from influencing news coverage.

Light, who earned a Master of Business Administration from UC Irvine, served simultaneously as editor and president of operations under Manchester, before the San Diego developer sold the Union-Tribune to Tribune Publishing last year.

“I don’t think Tribune’s new publishers will face choices fundamentally different than any publisher,” Light said Wednesday. “The job is the same: To serve the community with integrity. My own principles as a journalist and a businessperson — as well as our company’s code of conduct — are crystal clear on that topic.”

Separately, Tribune officials announced that by April, print subscribers at each newspaper will receive unlimited access at no additional charge to digital content from every Tribune Publishing property nationwide. In addition to The San Diego Union-Tribune and Los Angeles Times, the company owns the Chicago Tribune, Baltimore Sun, Orlando Sentinel and four other regional media operations.

Last month, Tribune Publishing sold an equity stake representing nearly 17 percent of its shares for $44 million to Michael Ferro, a technology entrepreneur who controlled the Chicago Sun-Times, a Chicago Tribune competitor.

Ferro became chairman of Tribune’s board, which last week named Dearborn to replace former chief executive Jack Griffin, who had pursued a strategy to purchase all the major newspapers in Southern California. Tribune has bid to purchase the Orange County Register and Riverside Press-Enterprise, which are in bankruptcy proceedings.

The management changes by Ferro and Dearborn appear to flow from their backgrounds in the technology startup world, where the people who best understand products and customers generally are in charge of design and marketing, said Alan Mutter, a former newspaper executive and tech CEO based in Silicon Valley.

“(They are) really bringing a fairly common startup model to a business that, frankly, needs a good restart,” he said, noting that the legacy newspaper industry has lost half its revenue and audience in barely a decade. “Yes, this will give heartburn to traditionalists, but if we don’t find a way to revitalize the newspaper business, we won’t have an industry to worry about ethical problems.”

On the other hand, there is considerable risk in asking editors with limited marketing and operations experience to turn around large, complex companies facing well-capitalized digital competitors, Mutter said.

“By taking an editor whose entire life has been spent in the newsroom, these guys have no background, they have probably never been on a sales call,” he said. “And again, these are troubled businesses.”

Also on Wednesday, Tribune executives reported that overall revenue fell slightly while interest expenses and reorganization costs increased substantially, producing a net loss of $77,000 in the fourth quarter on $462 million in revenue, and a loss of $2.8 million on $1.67 billion in revenue for all of 2015. The company generated net income of $15.5 million in the year-earlier fourth quarter and a $42.3 million profit for all of 2014.

In a conference call with analysts, Dearborn said Tribune held about $80 million in cash as of the end of February that was available for acquisitions and other strategic opportunities. He said the company would continue to pursue its bid in the bankruptcy auction of Freedom Communications, owner of The Orange County Register and Riverside Press-Enterprise.

Analysts have said such a purchase could reduce expenses and increase company revenues in Southern California, provided Tribune can win the auction at a favorable price.

In the Chicago market, Tribune executives said Wednesday that Ferro would donate his stake in the Sun-Times to a charitable trust.

“This divestiture will create a very clear separation of ownership and avoid perceived conflicts of interest, while also providing millions of dollars for community programs and other charitable causes,” said Sandra Martin, Tribune’s chief financial officer, in a prepared statement.

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What Sports Authority bankruptcy means to consumers

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After Sports Authority filed for Chapter 11 bankruptcy protection Wednesday, consumers wondering if their gift cards and warranties are safe can rest easy — for now.

The company expects its customer loyalty program to continue without any changes for now, and will honor warranties on items purchased at its stores or online,  CEO Michael E. Foss said in a statement posted on the company’s website.  Customers can still make returns or exchanges and use Sports Authority gift cards.

But if you have a gift card, it’s best to use it as soon as possible, according to advice the Better Business Bureau provides to customers of stores in Chapter 11. The cards could be worthless if the company goes out of business. The same advice applies if you’d like to return or exchange an item: Take care of it now, or you might be left with unwanted goods.

Company plans to regroup

The big-box athletic apparel and equipment retailer filed for Chapter 11 bankruptcy protection Wednesday, saying it will close 140 stores, or about a third of its locations nationwide. Papers filed with the U.S. Bankruptcy Court show that the company’s debts could be as high as $1.1 billion.

Sports Authority has secured access to up to $595 million that will keep the rest of its locations open for now.

Filing for bankruptcy protection can allow companies to restructure their debts or sell off some of their assets in order to regain profitability — and stay open. This appears to be Sports Authority’s motivation.  However, if Sports Authority can’t find a buyer and is forced into Chapter 7 bankruptcy, it will have to close all of its stores and liquidate its assets — which could leave customers in the lurch.

“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” Foss said in his statement. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”

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Major changes coming to Target as it focuses on grocery, customer service

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NEW YORK — Shopping at Target will not be the same a year from now.

It will be easier, less frustrating and more convenient, executives said a meeting with analysts here Wednesday. Starting a shopping trip through Target's app or online and finishing it in a store will become more seamless, with text notifications when online orders for in-store pickup are ready and dedicated areas of the store for these orders. Online orders will ship faster, as Target transitions more of its physical stores to double as fulfillment centers.

Those capabilities are part of a plan laid out by Target executives to become the ultimate one-stop grocery, apparel and home destination for American families as it continues a transformation to become a more digitally-focused, personalized and reliable retailer.

Target wants to be the store where customers can just as easily buy a blue Star Wars lightsaber as last minute dinner ingredients, a new bikini for spring break, a stylish sports bra or updated accent pillows for a living room renovation. And perhaps refill a prescription and restock on diapers.

The company will test more personalized customer service and better inventory management that will keep shelves more consistently in stock. Store floor space will be reorganized to highlight merchandise in more appealing ways. Target is rolling out more premium products in home, beauty and apparel.

Many of these new services will be tested simultaneously in 25 Los Angeles-area stores this spring, though some are already making their way to other stores, such as mannequins for apparel and more visual merchandising in other categories like home. Internal data show these displays lead to improved sales growth for those products than if they were just on a shelf.

Customers can also expect major changes in Target's grocery selection, where CEO Brian Cornell, addressing analysts at a meeting here, said the company "will transform virtually every element of the business." That means more organic products, fresh produce and less concentration in middle-of-the-store dry goods.

All of these transformations are part of Target's bid to grow sales by 1.5% to 2.5% this year and by at least 3% annually in 2017, while reducing costs with more back-end efficiency in technology and the company's supply chain.

Target has proven to be a powerful force in retail since Cornell came to the company in 2014 and helped refocus its priorities and aggressively tackle growth in digital traffic, sales and experiences. Target renewed its focus on style, both in apparel and home decor. It made a commitment to offer better merchandise in baby and kids, including a new gender-neutral kids brand called Pillowfort that launched in late February and has already seen double-digit growth since.

In a highly competitive fourth quarter when competitors saw weak sales, Target saw its sixth consecutive quarter of same-store sales increases, driven by the core categories Cornell is targeting: home, baby, kids and wellness. Sales were up 1.9% at stores open at least a year and digital sales grew a whopping 34%.

Still, executives readily admit that Target still has missteps to address. Shelves are too often empty; lack of options in grocery have left customers "underwhelmed and disappointed"; customer service isn't specialized enough.

"We have to be focused on driving traffic to our stores and business to our site," Cornell said, and part of that includes giving customers better reasons to shop with Target beyond price, which Cornell says had become too much of a priority in recent years at the expense of compelling merchandise. "We're making sure we’re focused on innovation, we’re elevating our focus on trend, we’re certainly elevating the quality we’re putting back in the product," he said.

Target has seen considerable success with smaller stores in urban areas and college campuses, opening nine in 2015. At least two more are coming near Penn State and several Boston colleges this year. The merchandise is heavily localized, such as displays with water bottles and game-day merchandise in the Boston store near Fenway Park. College campus-based stores get more solo cups and ping pong balls.

The stores aren't meant to be glorified convenience shops, said Chief Operating Officer John Mulligan. "This isn’t a stop and go pick up some food," he said. "It’s really about bringing the totality of Target to that neighborhood."

Another change in the pipeline: a simplified loyalty program aimed at attracting more customers than currently take part in Target's coupon app Cartwheel or REDCard credit and debit card. Target has been testing a separate program called REDPerks in North Carolina that rewards customers based on a point system for dollars spent.

 

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ES Morning Update March 3rd 2016

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5c75dbca-440c-469a-af48-4f07c0c6de26The Futures are coming to the end of a smaller rising wedge from the 1890 low and are inside a bigger one from the 1800 low.  With 4 hits of the top trendline on the rising wedge it's looking very tired.

The MACD's on various time frames show no help as they are mixed but have negative divergence on them.

My thoughts are that they will do some more chop today not going down much or up much.  It's just the way the burn the option players with time decay.  But with the Employment Numbers out Friday morning at 8:30 am EST before the market open I have to think we'll see a move after that.  I'm thinking we might drift down some today and then pop up tomorrow right after the numbers are out.  Then that should be the "exhaustion" move and should be shorted.

We are either at the high already or will hit it today or tomorrow I think... and I don't see much upside left.  Maybe they tag 2000, but that's a reach.   More likely they just come close to touching it just to tease the bulls by falling short a few points.  I'm thinking 1990-1995 zone, but either way we are near the top.  The only thing holding the market up is the weekly chart I think, as the daily and all smaller time frames are overbought.

I'm looking for this whole move up from the 1800 area low to be some type of A wave, and when it tops today or Friday the B wave down should go to the 1930's or so, based on about a 38.2% Fib. Level Retracement.  This could happen fast, like between Friday and next Monday/Tuesday.  Then I think we'll see the C wave up take us to around the middle of March with a high in the 2020-2040 area.  This whole ABC wave up will then setup the market for another HUGE drop that will take out the 1800 area like a hot knife on butter.

For today though, I would be looking to add a 2nd layer of shorts, and if we get that slight pullback today and rip back up tomorrow right after the 8:30 am jobs data I'd look to add the 3rd level of shorts and hold until next week or when I see my target zone in the 1930's hit.

Should Abercrombie change its name to Hollister?

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hollister california broomfield colorado

Should Abercrombie & Fitch change its corporate name to Hollister?

The controversial apparel retailer, which is in the midst of a turnaround, reported its latest earnings on Wednesday. And to, paraphrase Charles Dickens, it was a tale of two clothing chains.

It was the best of times for Hollister. Same-store sales were up 4% in the fourth quarter. That's the second consecutive quarter of growth.

But it remains the worst of times for the core Abercrombie brand. Same-store sales fell 2%, continuing a trend of sales declines. If you want to put a positive spin on it though, sales didn't fall as much as they did in previous quarters. Still, down is down.

Wall Street couldn't seem to figure out what to make of the overall results. The stock (ANF) initially surged as much as 8% shortly after the market opened and hit a new 52-week high in the process. But shares pulled back sharply later in the morning.

Related: No more sex at Abercrombie & Fitch

Abercrombie & Fitch's new management team, led by former Sears (SHLD) CEO Arthur Martinez (who left before Eddie Lampert turned Sears into the laughing stock of retail), has done a solid job so far of righting the ship.

Former Abercrombie CEO Mike Jeffries stepped down in 2014. Under his watch, the retailer was known for having scantily clad (and young) models in ads, its catalogs and the stores.

Loud music and the overbearing odor of cologne were the norm in the company's stores.

Jeffries was also criticized for cultivating a "cool kid" image. In an infamous 2006 interview, he proudly admitted that the retailer was "exclusionary."

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Since Jeffries' departure, Abercrombie has announced that it would stop "sexualized marketing." It also said it would change the dress code for its employees and tone down the music and cologne in order to create a "more pleasurable shopping experience."

This seems to be working for Hollister so far, but less so for Abercrombie.

Hollister is now bigger than Abercrombie. Hollister reported total sales of $1.88 billion last year compared to $1.64 billion for Abercrombie.

During a conference call with analysts Wednesday, Abercrombie & Fitch president and chief merchandising officer Fran Horowitz said Hollister has been busy remodeling stores and has a new management training program to improve customer service.

She also said that shirts, dresses and accessories were hits with women and girls while denim jeans were big sellers for men.

Horowitz was promoted from president of Hollister in December to her new role overseeing both brands.

And she added that Hollister has done a better job with digital commerce and social media lately. Hollister has new mobile apps and has been focusing more on interacting with shoppers on Snapchat and Instagram.

Related: America's most hated retailer is ...

But the Abercrombie brand name still may be rubbing consumers the wrong way.

The American Customer Satisfaction Index recently rated Abercrombie & Fitch as the most disliked retailer in its latest survey. It was Abercrombie's first time on the list. Not an auspicious debut, huh?

It also appears that Abercrombie & Fitch overall is doing a better job of winning back customers overseas than in the United States. Same-store sales for the whole company rose 6% internationally in the fourth quarter and were down 1% in America.

That may explain why Wall Street is still a little skeptical about the company's turnaround.

Susan Anderson, an analyst with FBR & Co., wrote in a report that Abercrombie "continues to have trouble driving traffic into its stores."

And Cowen and Company analyst Oliver Chen noted in a report that the stock could be volatile because many short sellers are still betting against it. That's a potential sign that many investors don't believe the turnaround can last.

Abercrombie & Fitch will definitely need to get its core brand back on track to prove to Wall Street that its comeback is legit.

Until then, the company might want to roll with the hot hand and emphasize what's working for it.

Just as Dayton Hudson eventually became Target (TGT) and Woolworth morphed into Foot Locker (FL), Abercrombie might be better off if it changed its name to Hollister.

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Forbes Outs World’s Billionaires List: 1810 Individuals, $6.48 Trillion Net Worth (Stolen From The Sheep)

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Bill Gates

Forbes has released its World's Billionaire's List for 2016, which contains 1,810 individuals with a total net worth of $6.48 trillion. Bill Gates remains the richest man in the world for the third straight year.

Forbes has released its World's Billionaire's List for this year, with the total net worth of the 1,810 individuals appearing on the list at a whopping $6.48 trillion.

The list saw 221 individuals drop out due to their net worth plunging below the $1 billion threshold, but there were also 198 newcomers. The total net worth of the people on the list, however, was lower compared to $7.05 trillion last year.

The list covers individuals coming from every corner of the world, with their wealth coming from various industries.

The Richest Person In The World

With a net worth of $75 billion, Microsoft co-founder Bill Gates remained the richest person in the world for the third year in a row. While his net worth dipped from the $79.2 billion posted last year, Gates remained on top of the annual list, which he has been included in for 17 of the previous 22 years.

Following Gates in the list are Amancio Ortega, with a net worth of $67 billion amassed from his fashion chain Zara; investor and business magnate Warren Buffett, with a net worth of $60.8 billion; Carlos Slim Helu, with a net worth of $50 billion from telecommunications and; and Amazon CEO and founder Jeff Bezos, with a net worth of $45.2 billion.

Facebook Wealth

Facebook CEO and co-founder Mark Zuckerberg climbed to the sixth spot, with a net worth of $44.6 billion. Co-founders of the social network, Dustin Moskovitz and Eduardo Saverin, are also on the list, with net worth of $8.9 billion and $6.2 billion, respectively. Facebook COO Sheryl Sandberg, meanwhile posted a net worth of $1.2 billion.

Jan Koum and Brian Acton, co-founders of the WhatsApp messaging service that was acquired by Facebook, also make the list with net worth of $8.6 billion and $4.4 billion, respectively.

Tech Money

Six out of the top 15 richest people in the world gained their wealth through the tech industry. Joining Gates, Bezos and Zuckerberg are Oracle founder Larry Ellison, with a net worth of $43.6 billion, and Google co-founders Larry Page, with a net worth of $35.2 billion, and Sergey Brin, with a net worth of $34.4 billion.

Other notable tech billionaires are Alibaba co-founder Jack Ma, with a net worth of $20.5 billion; Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs, with a net worth of $16.7 billion; and Snapchat co-founder Evan Spiegel, with a net worth of $2.1 billion at just 25 years old.

Top 500 Richest People

While all the world's 1,810 billionaires have a total net worth of $6.48 trillion, that value is concentrated in the top 500 richest people in the world, whose collective total is $4.16 trillion. Of the top 500 richest people in the world, 183 are from the United States, 149 are from Europe, 119 are from the Asia-Pacific region, 32 are from the rest of the Americas and 17 are from the Middle East and Africa.

New York City Still Billionaire Capital

Previous reports claimed that Beijing in China has overtaken New York City as the city with the most number of billionaires. However, that seems not to be the case, as New York City is the home of 79 billionaires compared to 51 billionaires in Beijing.

The city with the second most number of billionaires is Hong Kong, followed by Moscow and then Beijing. Rounding out the top five is London.

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Feds indict former Chesapeake Energy CEO

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Solar energy to power... oil fields?

A federal grand jury has indicted the former CEO of Chesapeake Energy for allegedly conspiring to rig the price of oil and natural gas leases in Oklahoma.

The Department of Justice believes that Aubrey McClendon, who served as Chesapeake's CEO for nearly 25 years, orchestrated a conspiracy between two large oil and gas companies between December 2007 and March 2012.

McClendon said that the charges against him are "wrong and unprecedented."

"I have been singled out as the only person in the oil and gas industry in over 110 years since the Sherman Act became law to have been accused of this crime in relation to joint bidding on leasehold," he said in a statement. "Anyone who knows me, my business record and the industry in which I have worked for 35 years knows that I could not be guilty of violating any antitrust laws."

Chesapeake did not respond to requests for comment.

Related: Chesapeake Energy denies bankruptcy rumors

The indictment alleges that two large energy firms would decide ahead of time who would be the top bidder on leases in northwest Oklahoma. The winner would then allocate an interest in the lease to the other company.

The Justice Department said McClendon "instructed his subordinates to execute the conspiratorial agreement," which kept prices low and "put company profits ahead of the interests of leaseholders."

McClendon left Chesapeake in 2013 after Reuters reported that he had taken out more than $1 billion in loans against his personal stakes in the company's wells.

Chesapeake subsequently revealed that it was the subject of an inquiry from the Securities and Exchange Commission, and announced that the program through which McClendon acquired his stakes would be terminated.

 

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These Are the 10 Biggest Retail Bankruptcies of the Last Decade

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Sports Authority finally filed for bankruptcy after weeks of speculation and with that, the chain joined the ranks of the largest retail bankruptcies the industry has seen in the past decade.

With assets of up to $1 billion, the athletic gear retailer will land in the seventh spot in a tally led by Circuit City, Linens & Things, and General Atlantic & Pacific Tea (A&P).

The bankruptcy filing of Sports Authority is interesting because it actually participates in a growing pocket of the broader retail industry. Athletic gear popularity has increased as more Americans wear sneakers, athletic tops and t-shirts around town, not just for the purpose of working out.

But that success had led to more competition. Retailers like Target tgt and Kohl’s kss have entered the space by moving to sell more athletic wear. Meanwhile, manufacturers like Nike nke and Under Armour ua have increasingly focused on selling their gear through their own channels, including their e-commerce platforms. Other players, like Lululemon, completely sell their gear through their own store channels.

All of those factors made it difficult for Sports Authority to compete.

Here is a look at the 10 largest retail bankruptcies in recent years, as ranked by assets at time of the initial court filing. Data is from BankruptcyData.com as well as court filings.

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Fiat Chrysler says Feb. sales rose 12 pct. from a year ago

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This Wednesday, Nov. 4, 2015, photo, shows the front of a 2016 Dodge Ram 3500 Heavy Duty pickup at a Fiat Chrysler dealership in Doral, Fla. Industry analysts expect February sales to bounce back after a slight decline in January. All automakers report their monthly sales figures on Tuesday, March 1, 2016. (AP Photo/Alan Diaz)Wednesday, Nov. 4, 2015, photo, shows the front of a 2016 Dodge Ram 3500 Heavy Duty pickup at a Fiat Chrysler dealership in Doral, Fla. Industry analysts expect February sales to bounce back after a slight decline in January.

All automakers report their monthly sales figures on Tuesday, March 1, 2016. (AP Photo/Alan Diaz)DETROIT (AP) — Automakers posted big U.S. sales gains in February as consumers returned to showrooms after a snowy January.

Ford's sales rose 20 percent over last February, while Fiat Chrysler's were up 12 percent. Nissan's sales rose nearly 11 percent.

General Motors said its sales fell 1.5 percent, partly due to a 39-percent decrease in sales to rental car companies. GM is trying to lower its reliance on rental sales, which are less profitable and can hurt vehicle resale values.

Industry analysts had expected February sales to bounce back after a slight decline in January. Consulting firm LMC Automotive consulting firm predicts an 8.1 percent increase over a year ago to 1.36 million new vehicles. With an annual selling rate of 17.7 million cars and trucks, last month would be the best February in 16 years.

Automakers report their monthly sales figures on Tuesday.

"Consumers seem to be shrugging off the volatility in the stock market and higher interest rates," said Jeff Schuster, senior vice president of forecasting for LMC. "Very low fuel prices and many new vehicles in showrooms should help drive another strong year for auto sales."

LMC is predicting sales of 17.8 million new vehicles this year, up from 17.46 million last year. But the growth rate is slowing from previous years and many are expecting a plateau.

In the meantime, proof of consumers' continued spending power is everywhere. Sales of the Cadillac Escalade, an SUV that starts at $73,000, were up 22 percent over last February. Nissan's $30,000 Murano SUV saw an 86-percent jump in sales.

GM said its Chevrolet and GMC brands saw declines in February but sales improved at Cadillac and Buick. GM's best seller, the Chevrolet Silverado pickup, saw a 5-percent sales decline. GM sold 227,825 cars and trucks last month.

Ford's luxury Lincoln brand saw sales jump 30 percent after sales of its new MKX SUV more than doubled over last February. Sales of Ford's best seller, the F-Series pickup, were up 10 percent. Ford sold 217,192 vehicles.

Fiat Chrysler was led by the Jeep brand and the Ram pickup. Both reported sales increases of 23 percent. The company's truck sales rose 27 percent, but its car sales fell by the same percentage. Fiat Chrysler sold 149,188 trucks and SUVs last month but only 33,691 cars.

At Nissan, car sales were up nearly 8 percent while truck and SUV sales rose 15 percent. Overall, the Nissan and Infiniti brands sold nearly 131,000 vehicles.

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Aubrey McClendon Is Charged With Conspiracy in Oil and Natural Gas Bidding

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Aubrey McClendon, former chief executive of Chesapeake Energy.

HOUSTON — The Justice Department announced Tuesday night that it had charged Aubrey K. McClendon, an Oklahoma wildcatter who turbocharged the shale revolution by buying up gas fields across the United States, with conspiring to suppress prices paid for oil and natural gas leases.

The indictment says that Mr. McClendon, who led Chesapeake Energy before he was forced to step down three years ago, orchestrated a conspiracy in which two oil and gas companies colluded not to bid against each other for the purchase of several leases in northwestern Oklahoma from late 2007 to early 2012.

According to the Justice Department, the companies decided who would win the leases, with the winning bidder allotting an interest in the leases to the other company.

“McClendon instructed his subordinates to execute the conspiratorial agreement, which included, among other things, withdrawing bids for certain leases and agreeing on the allocation of interests in the leases between the conspiring companies,” the department said in a statement.

“His actions put company profits ahead of the interests of leaseholders entitled to competitive bids for oil and gas rights on their land,” said William J. Baer, assistant attorney general for the antitrust division. “Executives who abuse their positions as leaders of major corporations to organize criminal activity must be held accountable for their actions.”

The indictment was filed on Tuesday in United States District Court for the Western District of Oklahoma. The department said this was the first case resulting from a continuing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the oil and natural gas industry.

It did not mention anyone else or any other company, nor did it say how many leases were involved.

Mr. McClendon released a statement late Tuesday denying all charges, arguing that for 35 years he has worked to create jobs and help Oklahoma’s economy while providing plentiful energy for the entire country.

“The charge that has been filed against me today is wrong and unprecedented,” Mr. McClendon said. “I have been singled out as the only person in the oil and gas industry in over 110 years since the Sherman Act became law to have been accused of this crime in relation to joint bidding on leasehold.”

Gordon Pennoyer, a spokesman for Chesapeake, said the company “has been actively cooperating for some time” with the antitrust investigation. He added, “Chesapeake does not expect to face criminal prosecution or fines relating to this matter.”

Mr. McClendon was nothing if not audacious as Chesapeake’s chief executive. He became a billionaire as the company he helped found aggressively outbid competitors for land leases and drilled highly productive wells in virtually every major shale gas field in the country.

Under Mr. McClendon’s leadership, Chesapeake and a handful of other companies transformed the face of energy in the United States, turning the country from an energy importer to an exporter and pioneering hydraulic fracturing in newly explored shale fields with ample global financing.

In the end, they produced a glut of natural gas that sent Chesapeake and several other companies to the brink of bankruptcy as gas prices collapsed.

Chesapeake’s stock price, which is now under $3 a share, has been sinking for most of the last five years, especially since it was revealed that Mr. McClendon had taken a personal stake in Chesapeake wells and then used those investments as collateral for up to $1.1 billion in loans used mostly to pay for his share of the cost of drilling those wells.

His interests ranged far and wide, as he acquired trophy assets like the Oklahoma City Thunder basketball team, interests in a French winery and a $12 million antique map collection.

He was once fined $250,000 by the National Basketball Association for bragging that he and his partners did not buy the Seattle SuperSonics to keep the team in Seattle — a statement that was at odds with the N.B.A. commissioner’s intentions. The Sonics moved to Oklahoma City for the 2008-9 season, and they became the Thunder. They play in Chesapeake Energy Arena.

Mr. McClendon donated millions of dollars to the Sierra Club from 2007 to 2010, money that the environmental group neglected to disclose even as it advocated increased use of natural gas to replace coal burning.

The Sierra Club cut its ties to the natural gas industry as environmentalists raised concerns over pollution caused by fracking and the disposal of fracking fluids.

The indictment follows a four-year federal investigation that began after Reuters revealed in 2012 that Chesapeake had discussed with Encana, a rival Canadian energy giant, how to suppress land lease prices in Michigan.

Last year, Chesapeake settled charges of antitrust, fraud and racketeering violations by agreeing to pay $25 million as compensation to landowners with leases.

Mr. McClendon is now the chairman of American Energy Partners, a private company that seeks investments in shale fields globally. It recently signed an agreement with YPF, the Argentine national oil company, to help develop a shale field in Patagonia.

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Starbucks COO Takes Permanent Coffee Break

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Starbucks sbux said on Tuesday that one of the executives instrumental to its ascent would not be returning to the coffee company now that his year-long sabbatical is over.

Chief Operating Officer Troy Alstead resigned a year after he went on an indefinite leave of absence, Starbucks said in a regulatory filing. Alstead was seen as Starbucks’ second-in-command to CEO Howard Schultz. Alstead’s resignation was effective February 29.

Alstead went on sabbatical (a “Coffee Break” in Starbucks’ corporate parlance) just over a year ago, saying he wanted to spend time with his family. At the time he said that the talent bench at Starbucks was deep enough for him to feel he could go on indefinite leave. He had been with the company for 23 years prior to the sabbatical and played a major role in helping Schultz shake off an 8-year business slump.

Despite his absence, Starbucks has thrived, with comparable sales rising in the United States in 2015 and the company continuing to expand globally, including a plan to enter Italy.

Alstead became operations chief in 2014, and was at one point seen as a possible CEO to succeed Schultz. He had also served as finance chief, and chief administrative officer in previous roles at Starbucks.

Last year, Starbucks named Kevin Johnson, a former CEO of tech company Juniper, to fill in, a move that has helped the coffee giant’s development of services like mobile ordering and its industry leading app.

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