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Hess to Quit Retail Gasoline Business

Hess to Quit Retail Gasoline Business

 

The Hess Corporation is set to discontinue its retail gasoline operations along with its marketing and energy trading businesses to focus on production and exploration, the company announced on Monday. 
 
Hess also announced it will boost its yearly dividend to $1 per share and buy back up to $4 billion in company stock. Upon release of this news, Hess stock increased $2.45 a share or $3.68 percent to $68.99 on Monday. 
 
Hess also said it will nominate five independent directors for election to its board at the annual shareholders meeting in May. Moreover, the company named a six director that will be up for election at the 2014 shareholder’s meeting. Six of the oil giant’s current directors will announce their retirement from the board in the upcoming months.
These announcements come just over a month after prominent Hess investor Elliot Management pushed for alterations at the company and began lobbying for new management. The plea from Elliot with regards to changing leadership was based on an accusation that the board partook in poor oversight and engaged in a “decade of failures.”
 
Hess has already issued plans to sell domestic oil storage facilities and close a New Jersey refinery as it leaves the volatile refining sector. ConocoPhillips, Murphy Oil and Marathon Oil have all syphoned and split their refining businesses in recent years to place a greater emphasis on production and exploration. 
 
 
Source: CNN

Is the Cure for HIV at Risk because of Budget Cuts?

Is the Cure for HIV at Risk because of Budget Cuts?

 

Dr. Deborah Persuad of Johns Hopkins Children’s Center spearheaded a remarkable treatment plan that cured the HIV virus in a toddler. However, the budget cuts undertaken by the United States Federal Government will reduce funding delivered to the National Institutes of Health, which co-founded the incredible achievement. 
The cuts in federal spending, known as sequestration, could slash critical medical research, including the recently unveiled treatment plan that cured the toddler.
 
The National Institutes of Health, which co-administered the study, is set to lose over $1.6 billion of its $31 billion budget through September of this year as a result of the sequester. As the most prominent supporter of biomedical research in the United States, it could reduce funding for hundreds of research programs, such as the HIV case. 
 
The National Institutes of Health, in conjunction with AIDS research foundation, funded the treatment plan used to treat the child. 
 
Chris Collins, the vice president of public policy for the AIDS Research Foundation said there was a “brutal irony” to the timing of the HIV cure discovery and the budget cuts. “As we have heard this exciting news about HIV cure research, the entire AIDS research field is undergoing a significant setback,” said Collins. “If we are in the business of ending this virus, this would be the time invest, not to cut back.”
 
Doctors at Johns Hopkins Children’s Center used a mix of antiretroviral drugs to eliminate the HIV virus out of the Mississippi toddler, who was born to a woman with AIDS and is now free of the infection. 
 
The toddler was given a cocktail of drugs including Epivir, Viramune and Zidovudine. The child was then treated with a Kaletra drug mix to sweep-out the virus. This combination of drugs costs several hundred dollars when produced in a generic fashion in developing nations. 
 
The budget cuts would reduce funding to long-running research programs that the National Institutes of Health is already committed to, claims Dr. Anthony Fauci, the director of the National Institute of Allergies and Infectious Diseases. 
 
Dr. Fauci claims that the budget cuts will damage the program and its initiatives in the long run. Moreover, Fauci said the budget cats may also keep future research projects from materializing. 
 
 
Source: Whitehouse.gov

Waterproof Tablets and Phones set to make a Splash

Waterproof Tablets and Phones set to make a Splash

 

Consumer electronics and water seldom mix, and for many users, there are few things more annoying than a tablet or smartphone that’s been accidentally dropped in water.

A trip to the bathroom or a rainy day used to require babysitting our expensive devices. “I cannot tell you how many users I know who have accidentally dropped their device in the toilet or their kid spilled a drink all over it,” said senior writer Maggie Reardon.

A soaked tablet or phone has traditionally meant shelling out a few hundred for a replacement; however, new technology has moved rugged cell phones and waterproof cases to withstand pesky situations or adverse conditions. Several smartphones and tablets highlighted at this  year’s Consumer Electronics Show, and Mobile World Congress Convention suggests the future is bright for tablets and phone that are both powerful and waterproof—or at least water resistant.

Sony debuted the Xperia Tablet Z at last week’s Mobile World Congress; the item is drawing praise for its functionality, sleek design and ability to withstand getting drenched by water or other liquids.

“If you are taking a bath and want to enjoy a movie and you accidentally drop the tablet into the water, it will be okay,” said Zperia Z product manager Sharath Muddaiah.

Makers of the Xperia Z claim the tablet can withstand sprays of water and can submerges in up to 3 feet of water for up to 30 minutes.

The tablet does not boast special coating; however, the device’s parts are all water-persistent. The water-resistant features of the new tablet do not come with the bulky characteristics associated with the so-called rugged phones.

Although far more water-resistant than most smart devices, Sony cautions that the tablet’s port covers must be sealed up to hold water. The device’s micro-USB and headphone sockets are lined with rubber port covers that must be flipped up for access.

Sony is not the only electronics company making an effort to provide a sturdier smart device as Fina’s Huawei dunked its Ascend D2 phone in a tub of water for attendees at the Mobile World Congress Convention.

Other electronic companies trying to solve the liquid-incompatibility problem are reciting the same mantra: water-resistant features are incorporated on these devices to help in case of accidents, and not to make a device that is safe for scuba diving. In the meantime, there is always the traditional fix if your device has gone for an unplanned trip to a liquid sanctuary: grab a bowl and pick-up a bag of rice. 

 

 

Source: AP

Stock Market Soars to Record High

Stock Market Soars to Record High

 

The Dow Jones Industrial Average climbed to a record high during Tuesday’s trading hours. The Dow rallied more than 150 points higher at one point on Tuesday to an all-time high of 14,286.37. This number tops both the Dow’s intraday and closing records set during October of 2007. Additionally, the S&P 500 added 16 points and is currently trading at its highest level since October of 2007. The S&P 500 is currently 1.5% away from its record high, which was also set in October of 2007. 
 
“We are going back to the highest levels in American history, but we have more things going for the economy and the stock market that we did during our last boom,” said Art Hogan, managing director at Lazard Capital. 
 
During the splendor of 2007, the economy was on the verge of heading into a tailspin, said Hogan, whereas now the market is getting stronger, albeit at a slow pace. 
Stocks are cheaper across the board, as a number of blue chips trading at 17 times earnings estimates in 2007 are valued roughly at 14 times earnings estimates for 2013. 
 
That said not all indexes set record highs; the NASDAQ, which climbed over 40 points on Tuesday, is nearly 38% below its all-time highs that were set during the dot-com boom in March of 2000. 
 
Although Hogan expects stocks to keep rising, the investment professional expects to come across some significant bumps along the way. Hogan envisions many investors pulling out of the market after earning more than 9% year-to-date, causing stocks to move sideways or trend down slightly. 
 
Additionally, concerns over Europe and the ongoing budget drama in Washington could act as a catalyst for a brief slide. However, a pullback could be short-lived and actually a mechanism to propel long-term growth. “There is a ton of money on the sidelines waiting to get in the market, but those investors want they need a pullback before they can jump in,” said Hogan. 
 
To this end, individual investors have invested just $21 billion in U.S. mutual funds this year, a marginal amount given that they pulled in excess of $500 billion from the funds since the financial crisis. 
 
 
Source: White House Press Release

Cyber Currency is Booming

Cyber Currency is Booming

 

Bitcoin—digital currencies created by an anonymous hacker–sounds like something from the future or science fiction; however, the four-year-old currency is quite real and trading at an all-time high. 
 
One Bitcoin was worth approximately 40 U.S. dollars earlier this week, and surged today to nearly $50. That’s an increase from roughly $13 in January and 5 cents in 2010, according to Mt. Gox, the digital currency’s primary exchange. On Mt. Gox and other trading platforms, traders can purchase or sell their digital coins for real cash. 
Watchers of the alternative currency attribute Bitcoin’s success to the recent decision by several popular technology vendors and networking sites to accept the currency. Just recently, online community Reddit and blog hosting site WordPress decided to accept Bitcoins as an acceptable form of payment. 
 
In addition to their acceptance the counts are much easier to obtain; until recently, buyers typically needed to navigate international wire transfers and wait days for Bitcoin transactions to clear. Popular sites like Bitinstant and Coinabse now let customers purchase bitcoins with cash or bank transfers. 
 
That said, some longtime advocates of the digital currency are leery of the recent surge in value. “The majority of people do not think $40 is an acceptable price right now,” claimed Jon Holmquist, head of marketing at two related startups, Bitcoinstore and Coinabul. 
 
The price fluctuations are widely due to the relatively low number of transactions and overall value of coins in circulation—the value of Bitcoins went from below $1 to over $28, then back to under $7 in 2011 alone. 
 
The digital currency was created in 2009 by an anonymous hacker using the screen name “Satoshi Nakamoto”—the Japanese equivalent of a vanilla name like “Paul Smith.” Bitcoin has no central-bank backing the currency; the idea behind Bitcoin was to create a currency that is free from government intervention to conduct transactions without processing or exchange fees. 
 
The digital currency is “minted” by a network of computers using specialized software on powerful hardware systems. The technology is designed to release new coins at a steady pace. Currently, a new block of 25 Bitcoins is generated every 10 minutes, adding to the pool of roughly 11 million circulating coins. 
 
The system used to generate coins is extremely difficult to infiltrate, but the digital wallets used by Bitcoin owners to purchase goods in online stores aren’t so protected. A series of thefts in 2011 crashed the currency’s value and one operator lost over 24,000 Bitcoins to an online thief in September of last year. Skeptics also contend that the anonymous culture of the currency could make it an instrument for money launderers. 
 
However, Bitcoin supporters think the currency’s recent rise is a sign of its widespread acceptance and growing community. Those supporting the currency see it as a legitimate alternative to more traditional payment methods. 
 
 
Source: AP
 

Workers not getting their Piece of the Pie

Workers not getting their Piece of the Pie

 

The gap between hourly pay and productivity is the highest it’s been since the few years following World War II. “A larger share of what companies in the United States are producing is going to the owners, and operators of the firms and the lenders who financed the firm’s projects while a smaller percentage is going to the workforce,” claims Gary Burtless, a senior fellow in economic studies at The Brookings Institution. 
Productivity, which measures goods and services created per hour worked, jumped nearly 81 percent between 1973 and 2001, compared to a marginal increase of 10.7 percent in median hourly compensation, according to the Economic Policy Institute. These figures represent a shift from the trend between 1948 and 1973, when hourly compensation and productivity ran analogous to one another. 
 
The primary reason for the wider gap is saturated wage growth in recent years among both college-educated workers and those workers without degrees, said the Institute’s President Lawrence Mishel. National deregulation and increased global competition have also kept compensation down.
 
The split between the two figures has been acute since the beginning of the 21st century, when wage growth flattened out; and now with unemployment rising, the bulk of the workforce feels lucky just to have a job. As a result of the weak employment numbers, many companies are using their leverage to get a better deal out of their workforce. 
 
Employers are also achieving their gains with fewer workers; economic activity in the United States is 2.5 percent higher than it was when the recession struck in the latter portion of 2007 with less than 3 million workers in the labor force. 
 
Evaluating hourly compensation by itself does not tell the story because these figures do not include benefits, which make up roughly 30 percent of a worker’s compensation package. That said, costs of benefits are rising over time, which serves as a factor in the widening of productivity figures versus hourly compensation rates. 
 
Many professionals attribute the widening gap to market forces. Professionals expect the gap to narrow as the economy further recovers from the collapse of 2007. As the economy improves, the labor market will ultimately tighten, and companies will raise wages. One sector where this shift has become tangible is the energy market in the Midwest, where employers are beginning to boost compensation for their workers. 
 
 
Source: US Department of Labor
 

Straddle

Straddle

What is a Straddle Investment?
In finance, a straddle is an advanced investment strategy aligned with the purchase or sale or a particular option derivative. When executed, a straddle allows the holder of an option derivative to profit according to how much the price of the underlying security fluctuates, regardless of the direction of the movement. The purchase of option derivatives is regarded as a long straddle, while the sale of option derivatives is regarded as the short straddle.  A straddle is typically undertaken if the investor foresees a large move (regardless of direction) in the stock’s price; these movements are typically observed when a company announces earnings or a federal bank announces a shift in policy. A straddle is fulfilled when an investor purchases an identical number of put and call options with a uniform expiration date. 
What is a Long Straddle?
A long straddle requires an investor to go long (purchase a call and put option on the same investment vehicle). The options are bought at the same strike price and will be attached with the same expiration date. A long straddle investor will secure a profit if the underlying asset price moves, in either direction, remotely away from the strike. As a result, investors may assume long straddle positions if they think the market is volatile, but does not the precise movement. This position poses limited risk–because the most a long straddle investor may lose is the cost of both options—and an unlimited profit potential. 
What is a Short Saddle?
A short saddle is another form of non-directional trading strategy that contains the act of simultaneously selling a put and a call of the same security, expiration date and strike price. A short saddle’s potential for profit is limited to the premiums of the call and put, but is riskier than the above straddle technique because severe price fluctuations impose a seemingly limitless potential for loss. The investment will break even if the intrinsic value of the call or put equals the sum of the premiums of the call and put. A short straddle is often classified as a credit spread because sale of the technique results in a credit of the premiums of the call and put. 
The short saddle is risky. The potential for loss is unlimited because of the sale of the put and call options which ultimately expose the investor losses on the call or equal to the strike. At the same time, the profits are capped to the premium secured by the initial sale of the put and calls. 

Currency Exchange Rates

Currency Exchange Rates

What are currency exchange rates?
Currency exchange rates fluctuate every day, although usually not in significant swings, unless there are dire external circumstances, such as the collapse of a national banking system, currency devaluation or bankruptcy.  There will however be long term trends upward and downward that represent the strength of the economies of two countries in relation to each other.  For up to date information on currency exchange rates, one should consult a bank and the price in London, the center of currency trading, is considered the market standard.
Different banking institutions and exchange bureaus will have different rates, usually reflecting the profit they will make from the transaction.  There are also different rates for buying and selling currency, reflecting current market demand.  Some currency exchange places will keep accurate current exchange rates but charge a percentage commission on the transaction.
When abroad, you will often find that banks and credit cards will have the best currency exchange rates and currency exchange at the airport of heavily tourist areas will have exorbitant commissions and fees.  It is best to change some currency at a local bank before leaving for the foreign country, although that bank may have to request the foreign currency in advance from another branch.  
Currency exchange rates change at all times of the day as the Forex market operates continuously through the week.  Before making a major foreign transaction, check the currency exchange rates and trends to determine if you will be paying more or less as the currency exchange rate changes with market demand.

Learn Forex Trading

Learn Forex Trading

How does one learn Forex trading?
There exist a number of websites that will help you learn Forex trading and we will not make a recommendation on the best websites to use.  Rather there are some important things to look for when picking a service to help you learn Forex trading.
What are indicators of a good program to learn Forex trading?
Many programs that will teach you Forex trading will resemble a sales pitch and attempt to convince you to buy a product or service.  Usually this service to learn Forex trading will promise to “reveal secrets” that will make your investments more profitable, often claiming that the majority of other traders are constantly losing money.  This is usually a scare tactic to have you part with your money.  The trust is, only shrewd investing and diligence will ensure Forex profits and there is no secret or hidden “safe havens” that is not readily apparent to the entire Forex market.  Remember that the Forex market is only comprised of the currencies of most of the world’s nations, rather than the stock market where these tips would be more relevant.
Also, be wary of Forex learning programs that promise quick and high profits.  Forex trading is liquid, but also exceptionally risky, with small gains and losses potentially inflicting massive profits and financial loss, do not expect to strike it rich overnight.  Good programs that help you lean Forex trading will preach the importance of patience and diligence in position Forex trading and quick thinking in Forex day trading.
Many “work at home” enterprises and scams will promise these large profits when working with Forex trading.  Be suspicious of claims that seem to promote huge profits and the promise that you will be able to “quit your job.”  If everyone could learn Forex trading and quit their job, they would have done so already as Forex trading, despite its initial complexity, is not difficult to master.
What should I do when learning Forex trading?
You should almost certainly try a free simulator first.  You will start with imaginary capital and make investments as you would under normal circumstances.  You will be able to see if you can indeed make money in Forex trading and if such investing suits you.  Through these simulators, you will familiarize yourself with the common terminology used in Forex trading as there is an entire lingo devoted to investing and news about Forex trading.
You should become familiar with automatic trading programs that will make trades on your behalf, 24 hours a day.  Consumer reviews will be readily available for most trading programs, so you will be able to determine if such a purchase of either the program or service that comes with the program is worthwhile and a valuable tool to Forex traders.  Look for critical reviews and if you have learned your Forex lingo, you will be able to discern genuine reviews about the product to false reviews that shill for the product and are meant to scam those that are new to learning Forex trading.

Forex Currency Trading

Forex Currency Trading


What is Forex Currency Trading?
Trading on the Foreign Exchange Market, also known as Forex Currency Trading is a popular investing option for some.  Forex currency trading is popular due to the liquid nature of the assets, relatively low barriers to entry when compared to other investments and the continuous operation of the markets.  This does not mean however that there are lower risks in Forex trading and indeed a potential Forex investor can lose all of their initial investment if they are not careful.  The US Dollar is the most traded foreign currency, followed by the Euro.  Not all Forex currency trading is equal and banks and other large financial institutions will have access to more precise data based on customer interaction as well as the benefit of buying large quantities of foreign currency.

What factors affect Forex Currency Trading?
Those engaged in Forex Currency Trading must be aware of factors that change and determine the value of the currency on the market, aside from typical market forces of supply and demand.  In Forex currency trading, the rate of the London market is the accepted rate as these rates vary otherwise, depending on the currency exchange.
Other factors that will cause fluctuation in exchange rates include:
– GDP growth of the country
– Inflation
– Interest rates
– Budget and trade deficits
– Corporate acquisitions across borders
– Current political and social conditions in the country
How do economic policies affect Forex currency trading?
Interest rates are the means by which government banks influence the supply of money, either by encouraging saving through high interest rates, or cutting interest rates to stimulate the flow of currency.  The actions of central banks have a large effect on the Forex currency trading of that currency.  Poor government budgetary policy, generally running current and future deficits will lower the value of the currency, reflecting investor concern about the long term viability of holding that currency.
Demand increases when a country is in good financial health, generally indicated by economic growth, low unemployment, a productive economy and retail sales.
What are internal market factors in Forex currency trading?
Forex investors exhibit behaviors that can turn market conditions.  For instance, there is a preference for “safe haven” assets in times of instability and market turmoil.  These safe havens will experience higher value for their currency when their currency is perceived as strong.  The Swiss Franc and units of gold are currently considered safe havens and experience robust prices.
Forex investors will usually consider long term trends when making investing decisions.  Proven patterns exist in Forex currency trading and those that study these patterns will generally heed them when making investing decisions.  This is related to Forex currency trading decisions based on economic data, as data patterns generally indicate where the value of the currency will go, especially in light of weak economic data.
Rumors also play a large role in Forex currency trading and some may feel inclined to buy and sell on such rumors, with the expectation that the rationale behind the rumor will match expected patterns for foreign currency.
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